Kelly Wilson

How Much is Money Costing Me? Are Mortgage Deferrals Right For Me ? What Other options do I have ?

We hope everybody is doing okay and hanging in there! We wanted to highlight some quick pro tips that you can look into for your own situation to see if there are any changes that you can make to better help your situation until we all get through this on the other side.

We are trying to connect with every one of our clients every day to check in and see how you’re all doing, if there's anything that we can do to assist you and get your finances in better alignment. There has probably never been a better time to reevaluate your finances and figure out where you have some gaps and holes. We want to be able to close the gap and put you in the best financial position that you've ever been, so that when something like this happens, again, whether it be with a pandemic or even just a job loss or illness, that you guys are so well prepared to take this on financially, that you can weather any storm that comes at you.

In the video, we use a standard $400,000 mortgage, which is the average mortgage in Canada. We also use an interest rate of 3% and a 25-year amortization. We touch on the following topics:

Deferred mortgage payments

Re-Extend Your Amortization

Property tax deferral:

Accelerated Bi-Weekly to Monthly

Variable Rate Mortgage

If you are taking advantage of the deferred mortgage payment options, we have to recapture the money back within the end of the term – Example – you are one year into your mortgage term, you have signed a 5-year mortgage and you want to defer your payments for 6 months. That means that at the end of the 6 months, you will have 3.5 years left on your term. The banks/lender is then going to take the 6 months of non-payments and are going to collect it back over the next 3.5 years. With the mortgage example that we are using, your mortgage payment would go up approximately $300/mth for the next 3.5 years. Another option of repayment is by putting it at the end of the loan and can stretch it out over the amortization and your monthly payments could go up as little as $20/mth.

The second option is extending the amortization. This does require you to connect with your bank to see if they are offering this option. In this particular case; $400,000 mortgage, 3% interest rate, 25 year amortization, the monthly payment would be $2160. Now, if they want to re-extend their amortization back up to the 30-year temporarily, this would bring their monthly mortgage payment down to $1680 – that puts nearly $500 back into your pocket each month. If you have just bought a house and you have paid CMHC, you have not built up the equity in the property just yet, so you may not be able to take advantage of this option.

Another option that you have if deferring your property tax payments.  You will need to connect with your city or township and see if they are allowing this at this time – it will be different for each township/city. If you are paying your property taxes twice in a year, you may be able to defer one of the payments or change your payment to one lump sum at the end of the year. If you pay your property taxes with your mortgage, you pay be able to set something up with your bank to hold off on that payment for now. Talk with your city, talk with your lender/bank and they may be able to help you out with this option.

You can speak with your lender and see if you are able to add money to your mortgage that you can use immediately. For example, if you take out $50,000 on your mortgage, that would put $50,000 in your pocket that you can use to pay down or off debts to eliminate monthly payments, use it to help out a family member, etc. With this option, it would increase your monthly mortgage payments by approximately $230/mth once it is stretched out on your amortization period. We just increase the amount - we don't re-extend the amortization, just increase $50,000. You can always lower the monthly amount if you make the amortization a little longer, but again, everybody has got a unique situation.

You can change your mortgage payments from accelerated bi-weekly to monthly. I know Canadians love paying off their mortgages. If you had the same scenario here, and you're on an accelerated bi-weekly and you wanted to drop it down to monthly, then you're looking at a reduction of your mortgage payment at $160. That frees up $160 a month just by going accelerated to monthly.

If you have a variable rate mortgage, one of the most exciting things that happened was that the Bank of Canada dropped their interest rates 1.5% in a matter of one month. This is huge for people that are on variable. If you're on variable rate, your mortgage payment dropped $300 a month as of April 1. Be sure you are paying attention to what that new monthly payment would be if you have anything wrapped around a variable rate for any lending.

We are encouraging you to connect with us through this. Even if you're not a client of ours, feel free to give us a call because everybody has a unique situation and we are happy to help you navigate your finances through all of this. We are here to help. It's about learning how to make your money work for you, and putting your money to work, and learning the best opportunities that you have in order to create more cash flow in the future to be able to reach your goals.

by Kelly Wilson

Let’s Talk Mortgages: The Details About Deferral

In the midst of the COVID-19, the economy is stalling and a lot of you are affected. Your cash flow or paycheques may have slowed or stopped altogether and you’re wondering how to keep a roof over your head or food on the table.
One easy way to cut back on your expenses during this crisis is to defer your mortgage payments. Yes, you heard me – and you’re reading it here in black and white! It may be contrary to everything you’ve ever been told, but the Government of Canada has made it possible for borrowers to defer their monthly mortgage payments – with the help of their lenders – for up to six months during this crisis.

Skeptical? Perhaps hearing it from the Canadian Mortgage and Housing Corporation (CMHC) will convince you (Link to https://www.cmhc-schl.gc.ca/en/finance-and-investing/mortgage-loan-insurance/the-resource/covid19-understanding-mortgage-payment-deferral) CMHC says, “Homeowners facing financial stress may be eligible for a mortgage payment deferral up to 6 months to help ease the financial burden.”

So, consider this a gift from your government and go for it! Even if you have the money right now, a deferral might be wise. You don’t know how the economy will behave in the coming weeks. Put the payment into your savings account in case you need it. Or, if you’re flush, you can use it to pay off high-interest credit cards instead.

As you proceed, here are 10 things you should know:

1. Your lender makes the call. A mortgage is a contract between you and the lender, so allowing for a deferral is their call.

2. Be proactive. You need to have approval for deferring a payment before one is missed.

3. Apply online. The major banks are being inundated by calls from worried homeowners, as well credit card holders. You may wait on hold for hours in order to get through to a live person. Making your application online is quick and generally painless.

4. Terms will vary. Each lender can decide how the deferral process works. Some may approve a six-month deferral right away; others may prefer a month-by-month process. Don’t fret – whether you have to be approved once or six times, it will still be worthwhile.

5. Interest will be applied. There’s no escape. You’ll still need to pay interest, although, now, it will be rolled into the principal later.

6. The pain will be minimal. The additional interest on each $100,000 in your mortgage balance will be about $175 over 3 ½ years – assuming your remaining mortgage term is 42 months. For a $400,000 mortgage balance, which is what an average Canadian has, that’s a total of $700 over the term of your mortgage, compared to the approximately $12,000 you’ll save by deferring your $2,000 mortgage payments for six months. There’s no comparison!

7. Your credit score should be safe. You may want to confirm this in writing, just to feel comfortable. However, RBC has reported that it is working closely with the credit agencies, who have said that “there will be no material impact on credit scores they calculate.”

8. Other payments are still required. Your lender is only responsible for your mortgage. You will still be required to pay your homeowner’s insurance and your property tax, unless holidays are declared on those payments, too. You’ll need to touch base with your insurer or your municipality to inquire about being late.

9. There are additional options. You can ask your lender to refinance your home at today’s lower rates; you can request restoration of your original amortization to lower your payment; you can ask for a reduced payment for a specific time period; or you can ask that a payment be held while your income is temporarily suspended.

10. Consider all your properties. You should consider deferring the mortgages on any property you own, including vacation homes or investment properties. Scotiabank, for example, will defer as many as four mortgages per client. Always keep in mind that deferred payments are not eliminated, erased or cancelled. You will still be required to repay the amount of skipped payments, both principal and interest. The CMHC notes, “The interest that hasn’t been paid during the deferral period continues to be added to the outstanding principal of your mortgage. This can affect the total amount you owe in accordance with the original payment schedule.” You will need to work closely with your lender throughout the deferral period to determine how repayment will work.

Remember: Staying in your home is your ultimate goal. Don’t let worries about a relatively small amount of extra interest prevent you from deferring your mortgage!

The Wilson Team is here to help you navigate your way through a mortgage deferral or a potential refinancing. Don’t hesitate to come to us with your questions and concerns.

by Kelly Wilson

Homeowner Assistance

COVID 19 And Your Mortgage.

Lenders and Insurers are stepping up to help Home Owners. The 3 default insurers which are CMHC, GENWORTH and Canada Guarantee have come to the table to offer deferral of mortgage payments up to 6 months for those who qualify for the assistance program if you have an insured mortgage. Please note that this is not about free money. This is about deferring mortgage payments or interest until the end of the term.

Helping Homeowners In Need

Genworth Canada's Homeowner Assistance Program is designed to help homeowners who are experiencing temporary financial difficulties as the result of an unexpected life event, which may put their mortgage at risk. If your customer has a Genworth-insured mortgage, they might be eligible for our Homeowner Assistance Program at no cost. This program enables you to work in partnership with us to establish alternative arrangements to help your customers stay secure in their home when times get tough.

How we can help

Options available

We will consider a variety of solutions that may alleviate the temporary financial burden of the homeowner. Each situation is assessed individually to determine if a workout is possible, and what the ideal workout solution is. Some common options that can be considered are:

• Capitalize arrears
• Increase amortization period
• Partial or shared payment plan
• Deferred payments
• Restructure mortgage

For more information visit www.wilsonteam.ca

Here is the list of lenders and customer service numbers. You may find that some lenders already have a skip a payment option in the prepayment privileges.

• Alterna: 613-560-0100
• Bank of Montreal 1-877-895-3278
• B2B Bank: 1-800-263-8349
• Bridgewater Bank: 1-866-243-4301
• CHIP: 1-855-207-4110
• CIBC 1-800-465-2422
• CMLS: 1-888-995-2657
• Community Trust: 416-763-2291 x 513
• Desjardins: 1-855-688-2433
• DUCA: 1-866-900-3822
• Equitable Bank: 1-866-407-0004
• First National: 1-866-557-5509
• First Swiss: 416-227-2000 x 1016
• Fisgard: 1-866-382-9255
• Haventree Bank: 1-855-272-0050
• HomEquity Bank: 1-866-522-2447
• Home Trust: 1-877-903-2133 x 5901
• ICICI Bank: 1-866-726-0825
• IC Savings: 416-784-0200
• Laurentian Bank: 1-800-252-184
• Lendwise: 1-877-637-4911
• Magenta Mortgage Corp: 613-267-4434
• Manulife Bank: 1 877 765 2265
• Marathon: 1-855-503-6060
• MCAP: 1-800-265-2624
• MCC Centric: 1-877-943-0342
• Meridian: 1-866-592-2226
• Merix: 1-877-637-4914
• Optimum: 1-866-441-3775
• Pillar Financial: 1-877 279-2116 x 109
• Radius: 1-866-550-8227
• RFA: 1-833-228-5697
• RMG: 1-866-809-5800
• Royal Bank 1 800 769-2511
• Scotiabank: 1-800-267-1234
• Secure Capital: 905-709-8633
• TD Canada Trust: 1-866-222-3456
• Wealth One: 1-866-392-1088
• Westboro MIC: 1-844-729-5764
• XMC: 1-877-775-2970

by Kelly Wilson

Why Use an Experienced Buyer Agent When Purchasing a Home?

Why Use an Experienced Buyer Agent When Purchasing a Home?

Buying or selling a home is one of the biggest financial transactions most people make during their lives, so it’s important to do it right – and that means tapping into the expertise of someone trained in the field: A Buyer Agent.
You wouldn’t do your own dentistry or try to remove your own appendix; you’d turn to someone specially trained to do the job. The same holds true for a real estate transaction: you want to be able to rely on someone with knowledge and skills you don’t have to ensure the result is a
positive one. A Buyer Agent is your real estate “surgeon,” guiding you through the proper steps to purchasing the property you want with no unpleasant side effects.
Of course, there are a lot of Buyer Agents in the marketplace, and you want a skilled one. But what, exactly, does that mean? Here’s what a good Buyer Agent will provide:
 Quick access to the MLS system. A Buyer Agent sees the listings posted on the Multiple Listing System (MLS) before they arrive in your inbox. They can stay ahead of the game and identify those properties that require quick action so you don’t lose out on a dream home. In a hot market, time matters.
 A proactive approach. A good Buyer Agent will be out knocking on doors in desirable neighbourhoods, looking for opportunities that may not have appeared on MLS yet. They can alert prospective sellers that there are interested buyers just waiting for an opportunity to invest in the property. As the saying goes, “If you don’t ask, you don’t get.”
 Negotiating skills. Buyer Agents negotiate for a living. Can you say the same? They know your needs and your limits, and they are skilled at assessing the seller’s perspective, too. Add to that their knowledge about the selling landscape in your market and you have an advocate who can help you reach your ultimate goal: obtaining your dream property while negotiating a deal that both parties view as a win-win situation.
 The big picture. Skilled Buyer Agents know their customers’ needs, wants and goals, both long- and short-term. While you may get excited by a property with all the bells and whistles, it’s the agent’s job to keep a level head and remind you that, for example, the property won’t appreciate enough during the three years you plan to keep it for you to pay the asking price. They aren’t swayed by the emotion and excitement you may feel for a property that doesn’t meet your needs. Consider your agent as a valuable sober second thought.
 Knowledge of the landscape. Would you want someone from Halifax to sell you a home in Vancouver? It’s unlikely. You want a Buyer Agent who knows and understands the local marketplace. They are familiar with the neighbourhoods, the school system and the public transit options. They can recommend a good family doctor and a great sushi restaurant, or point you to a great cycling path or a spacious park. They speak from experience.
 Trusted feet on the ground. If you’re buying an investment property from a distance, you want a Buyer Agent who will be your eyes and ears. They’ll know what you’re seeking and they’ll have the judgment to determine if a property meets your needs. You can surf the Internet all day, but there is nothing like having someone available to view the property in person and decide whether there are concerns that don’t show up online.
 An understanding of new builds. If you’re buying directly from a builder, there are details you may overlook or intricacies that escape you. A skilled Buyer Agent knows how the purchase of a new home differs from choosing an existing property, so he/she will ask the right questions and defend your interests.
 Proper packaging. In a competitive market, a good Buyer Agent will know how to get your offer to the front of the line so it will be noticed. It requires someone who is well- connected and has good working relationships with other agents and someone who knows what makes a good offer.
 Contracts done correctly. When you use a Buyer Agent, you can be confident that the contract and paperwork you sign will protect you from any problems that might arise. They know real estate contracts backward and forward and know which clauses are essential to a contract to ensure that you aren’t surprised by hidden issues or expenses. Don’t leave the details of such a purchase to amateurs, like yourself. As mortgage brokers, we at the Wilson Team have worked with numerous agents, both skilled and not-so-skilled. We want to match you with the cream of the crop. Are you willing to do what it takes and set up the plan in order to get the property on? Are you willing to do the work you put yourself in front of everyone else? If so, you might be the right fit for us. Please start with filling out this questionnaire and we will have one of our experts reach out to you.

by Kelly Wilson

Calling the Ottawa Area Home

Calling the Ottawa Area Home
Canada’s capital region is a beautiful place to live in. It has something to tempt every interest, from outdoor pursuits to indoor sports to arts and culture. Before you are settled here, however, you’ll be busy. You have a house to sell, a house-hunting trip and home purchase to make and the move itself to undertake. Luckily, the Canadian Forces helps ease your way through its partnership with Brookfield Group Relocation Services (https://www.irp-pri.com/start/cf_members/). In addition, we at the Wilson Team (www.wilsonteam.ca) of mortgage brokers are experienced in assisting members of the Canadian Forces who are relocating to our “neighborhood.” We will be happy to connect you with the services you need and the people you want to query about topics such as school districts, home values, and transportation.
Making the Move:
You will be reimbursed for a door-to-door move of more than 40 kilometers. The formula for calculating the distance is as follows:
1. Distance in kilometers between current residence and new place of duty = (number of km)
2. Distance in kilometers between new residence and new place of duty = (number of km)
3. Line 1 minus line 2 = (number of km)
In addition, you will be advanced funds through Brookfield to allow you to handle personal expenses you incur during the relocation for things such as a house hunting trip or destination inspection trip, your travel to the new home location and interim lodgings, meals and miscellaneous expenses.
Home Purchase Reimbursement Eligibility:
You will be eligible for home purchase benefits if you are posted within Canada for a period of one year, or more or if you are subsequently posted within the same geographical boundaries for a year or more. To take advantage of the reimbursement opportunities offered by the Canadian Forces, you must purchase a new home within one year of your Change of Strength (COS) date or the date that your household goods are shipped, whichever comes later. You must live in the home for at least a year, unless service reasons make that impossible; otherwise, you will be required to reimburse the government for benefits paid.
House Hunting Trips:
The opportunity to move to a new home can be exciting, even though it can be a bit scary, too. Starting over in a new location means making new friends and connecting to new service providers. Do your homework on the geographic area in advance because your trip to find a home will be a quick one. A standard house hunting trip (HHT) includes up to five days and five nights at the new location for you and/or your spouse. The total duration of the trip, including travel, generally should not exceed seven days and six nights. Members of the regular forces should take the HHT after you’ve received the official notification of posting and before your change-of-service date. If you have obtained accommodations in your new location prior to the official notification, you are entitled only to a destination inspection trip
(DIT).

Reservists should take the HHT once an employment message has been issued, but prior to the start date for your new position. If you have arranged for accommodation prior to receiving your employment message, you, too, are only entitled to a DIT. The Commanding Officer of the unit you are leaving must authorize your absence from work in order to conduct the HHT or DIT.
Selecting a realtor:
When you purchase a new home, you are allowed to choose any third-party supplier (realtors, lawyers, etc.) provided that they won’t charge more than the military’s pre-negotiated rates and that they are arm’s-length suppliers. In other words, no family members – aunts, cousins, daughters-in-law – can be engaged.
Choosing a home:
When you’re looking for a home, remember that you won’t be reimbursed for expenses above a lot size of 1.25 acres (1/2 hectare) or, if the zoning and city bylaws require it, up to four acres (2.47 hectares). If you buy or sell additional land, you’ll only be reimbursed for the portion of the costs that apply to the
approved lot sizes.
You must also purchase a home within the geographical boundaries of the area, unless you receive specific authorization to live elsewhere.
Building a home:
If you decide to build a home, rather than purchase an existing one, you are entitled to the same benefits for buying the land and doing the construction that you would have received upon purchasing an existing structure. However, all costs identified in the building agreement are considered part of the
purchase price and won’t be reimbursed separately.
Early occupancy:
If you must take possession of your new home prior to your COS date (or commencement of
employment date for reservists) and those dates aren’t flexible, you will be reimbursed for the following
expenses for up to one month:
 Interest charges on a first mortgage (or on a second mortgage if there are no charges on a first
mortgage);
 Taxes (i.e. property, school);
 Utilities (i.e. electricity, heating);
 Property maintenance (such as lawn cutting, snow removal, and minor maintenance);
 Insurance (house insurance including additional insurance costs for empty residence); and/or
 Rental of a mobile home pad.
Ensuring clear title:
You will be reimbursed for the following legal fees associated with obtaining clear title to your new
property:
 Sheriff's fees;

 Land Transfer Tax/Welcome Tax;
 Name change fee when transferring ownership from builder to purchaser;
 Deed transfer charges;
 Survey costs or Title Insurance Premium (both cannot be claimed unless they are deemed
necessary to obtain clear title);
 Certificate of execution;
 Appraisal and water test fees incurred at the request of the lender to obtain a first or second
mortgage; and
 Legal fees incurred as a result of deed transfer to Land Titles System.
Conducting a home inspection:
Before you sign on the dotted line, it is wise to have your new property inspected by a trained
professional. The Canadian Forces will reimburse you for the following structural inspection costs:
 First structural inspection on each residence where an offer to purchase is made (including
occupied new homes under warranty);
 Well, water potability, and septic system inspection (including the pumping when required for
the inspection); and
 Follow-up termite and pyrite inspections, when recommended in writing by the building
inspector.
Mortgage Assistance
Interest payments:
If you are transferred to an area that is more expensive than your previous location or you upgrade your home, your new mortgage will be pricier than your old one. The Canadian Forces is prepared to assist you with the interest differential, up to a maximum of $5,000, for the remaining term of the mortgage on your previous residence, up to five years. The Canadian Forces will pay the difference between the interest rates on your old and new mortgages, based on the lesser of the outstanding mortgage at your
former place of duty or the new mortgage principal.
Mortgage default insurance:
If you are required to pay a mortgage default insurance premium when you purchase your new home, you’ll receive assistance in the form of an amount equal to the assessed insurance premium and will be reimbursed for any administrative fees incurred in relation to the policy of insurance when:
 you sell your principal residence for the move to your current posting and use 100 per cent of
the equity from the sale for the purchase of your new residence.
 you sell your their principal residence before a posting to a new place of duty where you were
prohibited from purchasing a residence, and in relation to the current posting, you use 100 per
cent of the equity from that sale for the purchase of their new residence, if this posting
immediately follows the posting in respect of which they were prohibited from purchasing a
residence.
Mortgage Financing

As you navigate the ins and outs of mortgages, don’t hesitate to call on the Wilson Team. We’re mortgage specialists and are intimately familiar with the options available to you.
Bridge financing:
If you are unable to immediately transfer the proceeds from the sale of your home to enable purchase of a replacement property, you are eligible for reimbursement for the interest you pay on a bridge loan
or line of credit, as well as the associated administration fees charged by the financial institution, given
that:
 interest on the bridge loan does not normally exceed 14 days; and
 the amount of loan does not exceed the amount of money that is frozen.
Short-term financing:
You are eligible for reimbursement of the interest charged on a short-term loan or line of credit that is used solely for the minimum deposit required to buy a residence at your new place of duty or to construct home there.
The amount of the required minimum deposit must be in accordance with the written purchase contract and can’t exceed the minimum amount required by the local market. You are not entitled to reimbursement when the building agreement for a new home describes a payment schedule or advance
payments.
Yes, there’s lots to remember; moves are complicated, but they’re also exciting. And, you’re not alone. Don’t hesitate to call on the Wilson Team for assistance in navigating all of the move requirements.

by Kelly Wilson