Borrowers are able to switch institutions at any time, and under the Transfer/Switch program, lenders will allow you to do so without costs normally associated with moving your mortgage!

At maturity, the date your current mortgage term expires, you the borrower are able to shop the market and obtain the best rate rate possible, with the help of Global West Mortgage Specialists, and move to another institution with no costs or fees part of the transaction. No new funds will be allowed under this program, however some lenders will associate up to $10,000 of penalties for those NOT at maturity into the transaction.

In todays market, many borrowers are moving their current mortgages to new institutions even before maturity and incorporating the cost of the penalty into the transfer. In most cases, the cost of the penalty is less than the savings one obtains by taking the new rates offered today.

Borrowers MUST QUALIFY, so standard documentation requirements still apply as well as the following:

1. Copy of the Current Mortgage Document
2. Copy of Property Taxes being paid
3. Copy of Fire Insurance
4. Payout Request Forms to be signed

Call one of our Mortgage Specialists today to see how you can take advantage of todays low rates and move your mortgage!!

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Rental Property purchases are now being predicted to experience an expanding market share as many Canadians try to recover losses experienced in the Investment Markets over recent times. Financing for Rental Properties, however, remains a difficult source of funds, with lenders maintaining a very high standard of underwriting guidelines for qualification. Rental/Investment  financing is available up to 80% for Rental purchases, as per new guidelines set by the Federal Government in April this year.  

Having said that this financing is tough to get, it is all worth it! Most of today's wealth that has been accumulated has been done so on investment property! Global West Mortgage is priviledged to work with a number of lenders that are promoting this type of financing and will work with us to help you achieve that Investment Portfolio that is required.

Here are some of the Standard Criteria

1. Eligible Properties - Existing or New(completed properties only) with 1 - 4 units
2. Ineligible Properties - Time Share ownership, Secondary/Vacation Homes, Rooming Houses, Quarter Shared Interests, Properties part of a Rental Pool(some exceptions apply)
3. Eligible Transactions - Purchase, Transfer/Switch, Refinances
4. Net Worth - Some lenders have established a Minimum Net Worth for each rental property owned - typically $50,000
5. Amortization - Maximum 35 years High Ratio and Conventional Financing
6. No GIFTED Downpayment accepted

Your Global West Mortgage Specialists will be happy to assist you in purchasing a stable investment, property, one that has held up in even these financial times, call us for more information regarding this product.

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Many Institutions are offering what are termed "cash back" mortgages, that offer a lump sum percentage of the mortgage balance back to the borrower at closing. The Cash Back product is designed to assist borrowers with excellent credit history who have not accumulated the required downpayment, or have chosen to use their savings for another purchase related expenditure. The Cash Back product is available for purchase transactions up to 95% of their purchase price. Most lenders will advance the funds for this Cash Back to the solicitor on the date of closing.

Cash Back Mortgages have a minimum 5 year term attached to them, and if the mortgage is paid out prior to the 5 year term ending, any remaining cash back outstanding is repayable as well as the standard penalty for the collaspe of the mortgage. This is something to consider, as many cash back borrowers are unaware that this repayment of these monies exists, and are surprised when trying to move forward in the future.

Interest Rates vary on this product dependant on the amount of cash back required, however most lending is done at bank posted rates, so quite a bit higher than market rates. Essentially the banks are lending you the cash back and you are repaying these amounts over the length of the mortgage by paying a higher than normal interest rate.

For more information reguarding the Cash Back Mortgage and how we can use it to allow you to buy WITHOUT Downpayment, call one of our Mortgage Specialists!

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Equity Financing is still available in todays market, but the guidelines are very strict and no flexibility exists on qualification for such products. Mortgage Approval is based on equity, in other words downpayment, and credit history. Downpayment must be available from your own resources, no gifts allowed, and be at least 25% of the purchase price. Your credit score must have a beacon credit score(see our mortgage specialists to inquire about your score) of 680 to qualify. One year on the job, and the income stated must be reasonable to your line of work, although we do not have to document such.

We still have good access to this money at very good rates, see our Mortgage Specialists today!!!!

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Purchasers in most large Canadian centers can add Land Transfer Taxes to their purchase costs! Unless you live in Alberta, Saskatchewan, or rural Nova Scotia, land transfer taxes are a fact of life in purchasing a property. These taxes, levied on the changing hands of property, are the responsibility of the purchaser.

In British Columbia, there is a tiered system, with amounts up to $200,000 taxed at 1% of the property value, and any amounts above that taxed at 2% of the property value.

These are important closing costs for borrowers to take note of.

Please review the website link, www.sbr.gov.bc.ca/individuals/Property_taxes/Property_Transfer_tax/ptt.htm for more information regarding this tax.

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Bridge/Interim Financing assists borrowers on the occassion whereby their current home is sold, however the possession date extends past the date of the new pruchase. Therefore, the new equity is not available for closing on the new home and the borrowers are in need of funds to do so.

Banking Institutions will only do Bridge/Interim financing if they are responsible for the new purchase!

In determinng the amount available for borrowers, remember, we are borrowing on the SOLD property, not the NEW property, most lenders will lend up to 90% of the equity remaining in the SOLD property. Costs such as commissions, legals, and penalties will be deducted to arrive at the amount available for Bridge/Interim financing. Normally this is short term financing, and as such no profits to be made by the lenders. Many have instituted charges for such financing, some have application fees as well. Whilst not overburdening the borrower, the costs must be made aware before recommending corresponding dates of purchase and sales.

NOTE: If your purchase and sale transactions are scheduled to close on the same day, there will still be a need for Bridge/Interim financing!!

Contact one of our Mortgage Specialists for assistance and costs in setting up this financing for you!!

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These Products are the standard closed ended fixed rate terms most people associate with mortgages! 1, 2, 3, 4, 5, 7, and 10 year fixed terms are exactly that, a term in which you are locked into a rate with the same institution for that period of time!

All of these terms come with pre-payment priviledges, which do differ in limits with each institution, the benchmarks being 20% lump-sum prepayment based on the "original mortgage balance" and 25% increase in the "original mortgage payment", both allowed each year of the mortgage term!

There are terms available for up to 25 years, but as of yet in Canada, because of the pricing of that rate, we have not had a large demand for those products!

Standard underwriting guidelines apply to all of these terms.

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Providing traditional forms of income verification can be difficult for Self-Employed borrowers. The Self-Employed Stated Income program with financing available up to 95% for Purchases and 85% for Refinances helps these borrowers achieve home ownership despite not adhering to standard underwriting guidelines!

The Self-Employed program uses reasonable Stated Income levels to qualify for financing. Under this program a borrower must have a Credit Beacon score of 650 for any financing up to 90%, and a Credit Beacon score of 700 for the 95% financing. The Downpayment must come from your own resources, no GIFTS will be allowed. The Borrower must also prove their Self-Employment with 2 seperate documents, for example, a business bank account, a business license, a GST return, an Incorporation Certificate and shareholder list. Please contact one of our Mortgage Specialists for a complete overview of this product.

Mortgage Details:

1. Purchases, Purchase with Improvements, Refinances (to 85%)
2. Ineligible - Second Home Product, New to Canada, Free/Flex Downpayment Product, Rental Product
3. Amortization - 40 years Conventional Mortgage, 35 years High Ratio Mortgage
4. Maximum 2 Units, one being Owner Occupied
5. Equity Removal - For High Ratio Mortgages, equity removal is limited to $100,000 for debt consolidation, $200,000 for asset enhancement. There are no limits on Conventional Financing.

Borrower Qualification:

1. The minimum Beacon Score will apply to ALL borrowers
2. No Mortgage, Installment or revolving credit delinquencies appearing on the credit Bureau in the past 12 Months
3. No reported defaults on residential mortgage products in the past 7 years
4. No previous Bankruptcy
5. No Gifted Downpayment
6. Credit Beacon Scores as noted above

For all questions regarding this product, contact our Mortgage Specialists to discuss all guidelines, as they are changing frequently and Global West Mortgage reserves the right to adjust any information above due to lender criteria change.

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Quick Close is a new product from most lenders allowing a reduction in a proposed 5 year rate normally based on a closing date within 45 - 60 days. The pricing on this product differs with each lender, however borrowers can benefit from closing on a purchase or a refinance within this time frame, and reducing the interest rate by as much as 10 bps.

This is becoming a very popular product with both borrowers and lenders, allowing lenders to reduce hedge costs in obtaining money to fund mortgages, and passing that on to the consumer! We have to be careful though, as some of these quick close products come with VERY reduced pre-payment priviledges.

Ask our Mortgage Specialists how they can reduce your rate!!!!

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Despite recent cuts in some programs that allowed borrowers to purchase a home with zero downpayment, there are still products available that accomodate the need for financing with no money down! Products like the Free-Down and Flex-Down opportunites still leave the borrower with options to finance a property at 95%, and obtain the downpayment as part of the purchase.

Free-Down Product

This product allows a borrower to finance at 95% of the purchase price at POSTED rates, and the lender will forward the remaining 5% directly to lawyer to pay for the downpayment. This product is available for only 5,7 and 10 year terms. The borrower must prove only closing costs, 1.5% of the purchase price to cover legal fees and other costs associated with purchasing a property. This product however, does come with a pre-payment agreement that if the mortgage is paid out prior to the 5 year term being completed, repayment of the unpaid downpayment funds will have to be repaid along with the standard penalty to close out a mortgage prior to maturity!

Check our latest rates for the posted rates.

Flex-Down Product

The Flex-Down Product allows a borrower to obtain the funding for their downpayment via acceptable borrowed sources, as long as those borrowed funds payments are included in the qualifying ratios. This product allows standard rates and pre-payment facilities. All borrowed sources must be documented and be arms length.

These products do require minimum 1 year job hostory and a Credit Beacon score of 680+ to qualify.

Call our mortgage specialists today for a complete overview of these products.

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The Variable Interest Closed product is a 5 year term, that allows the conversion to fixed term at any time during this period. The mortgage can be converted to a fixed rate mortgage with a term equal to or greater than the remaining term on the 5 year product. In other words, if you have been in the variable for 2 years, you must convert to at least a 3 year fixed, and take as long as term as wanted.

This product has associated risks inherit in it, with the volitility of rates in the current market place. Under the Variable product, you are subject to interest rate increases and decreases, and as such, if changing mortgage payments on a monthly basis is not for you, then reconsider!

The variable rate is set at the first of each month, with the rate on that date in effect. Standard prepayment policies for each lender exist on this product. To qualify for these products, we have to qualify the deal at the existing Bank of Canada qualifying rate, making this a more difficult product to obtain.

We now have a Variable OPEN 5 year product priced at Prime +.80%!!!!

Call us for details!!

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HELOC, Home Equity Line of Credit is the acronym most associate with a line of credit mortgage, a product that establishes a mortgage limit for the borrower, and when paid down allows a draw down on the available funds. Very popular in the past couple of years, they have since been dropped by many lenders as an available product, as they are not eligible for pooling in Mortgage backed securities, therefore affecting liquidity in the banks operating funds. The Line of Credits available are priced at prime +1.00% or more, so not nearly as attractive as prior years.

However, the flexibility they provide will still entice many, especially those who may be self-employed and get paid at the end of a job, whilst doing projects. The ability to use the line of credit and then pay it down with the proceeds of a certain project makes them essential for such people.

When qualifying for a Line of Credit, we must qualify you at the Bank of Canada Qualifying rate, which also makes qualifying sometimes an issue at the higher rate.

Call one of our Mortgage Specialists for information regarding this product and the availability in the market of it.

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Changing lifestyles affect decisions on where people live today, affected by work, family and personal interests, and in accordance with that trend, the Second Home Product is now available for all borrowers. Essentially, the purpose of the Second Home product is to allow borrowers to purchase a second home with as little as 5% down, that accomodates a family purpose. The purchase would be insured the same as a High Ratio first purchase, the only criteria in obtaining this financing being that it is not used as a rental property.

Refreshingly, it is a product that comes with little or no restrictions, treated similar to a first purchase and normal qualifications apply. Many people are choosing this product to help them purchase a summer or winter hideaway, electing to purchase a home in an area that allows them to holiday for parts of the year, allow family members use of it at other times.

Standard Underwriting Conditions apply, no changes to conditions in comparison to applying for a First Mortgage. The property is treated as an "owner occupied property", and will be noted so in the mortgage documents.

For a full rundown on this program, it benefits and premiums, call our Mortgage Specialist today for assistance in purchasing your dream holiday home.

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Newcomers to Canada play an increasingly important role in the need for increased popluation to support our economy , and as such, we now have High Ratio financing available to borrowers with permanent and non-permanent resident status. For those borrowers with Permanent Resident Status, financing under standard guidelines is available, up to 95% of the purchase price.

For those of Non-Permanent Resident Status, financing remains available up to 90% of the purchase price, with those with no current Canadian credit history able to prove prior credit worthiness with documentation from other countries.

Most Mortgage lenders have their own version of these products and guidelines set within their own institution, and as such, we will not attempt to summarize those products. However, call our mortgage specialist today and we would be happy to work with your unique situation and present you with the options available to you!

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Borrowers are able to top up their mortgage by Refinancing up to 90% of the exisitng property value. The Mortgage Insurers limit the amount of "New Funds" from a refinance, based on the borrowers level of financing.

On a 90% Refinance, the amount available is up to $200,000, but exceptions will be made if the reason for the funding is acceptable.

Standard qulaifications do apply for the type of financing, "new" appraisals will be required for all applications.

Call one of our Mortgage Specialists today to get rid of debt, make some home improvements, buy a car, or take a trip!!!

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Six Month Fixed terms and One-Year Open terms have the advantage of allowing a certain time frame before completing a corresponding transaction, and not locking in a client to a particular long term product or lender! These products are only used as a stop gap measures for most these days, and are not offered as part of our financial portfolio on long term planning, as the rates are priced very high in accordance to other fixed and longer term products. Lending institutions obviously will not price these products competitively, as they stand to lose this mortgage in short order!

The Six Month Closed term allows people to convert at any time to a longer term, and allows all standard lender prepayment options.

The One-Year Open is pre-payable at any time without any penalty, and a great alternative for a product when you are in the middle of selling your home.

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