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Are you self-employed and not sure if you can qualify for a mortgage?
Although the government rules on insured mortgages changed on April 19th it is important to know your actual options.
You may be able to qualify for a mortgage under a "stated income" product.
If you have less than a 20% down payment on your home and have been self-employed less than 3 years.
If you have at least 10% of a down payment and have been in business at least 2 years.
All we need is to show that you have reasonable credit and proof of no income taxes owing to the government.
If you are self-employed and want to know more about how these programs work, give Pauline at call at 604 813 8402 or email me at pauline@mybcmortgage.ca.
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"Ca$h flow is King" with revenue properties
So, here's the deal. You own a home and are looking to pay off that mortgage faster. You've heard that you can purchase a rental property and use the cash flow from rent to pay off your own mortgage. Well, it's true. (real life example below)
Dick and Jane own a home with a $200,000 mortgage and a $100,000 open line of credit. They use $40,000 from the line of credit to buy a rental property in the valley at $220,000. Rental income is $1400 per month. The mortgage payment on the rental is $586 per month, taxes are $150 and the cost of borrowing the $40,000 is $116 for a total cost of $852. The net difference is +$548 which they applied to their personal mortgage payment. The increased payment means they will pay off their own mortgage 12 years sooner!
(note: the taxes payable on this net income may be offset by the cost of borrowing for investment. Talk with your financial planner.)
To run numbers for your own scenario - give Pauline a call for a no-obligation review at 604 813 8402 or email to pauline@mybcmortgage.ca
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Fixed or variable?
There is a lot to consider when deciding
whether to go for a fixed or variable rate mortgage -- not least, your
tolerance of risk and your ability to sleep at night. Generally, fixed rate
mortgages charge a higher rate and cost more, but payments are fixed for the
term of the mortgage so you know what amount is coming off your principal.
Variable rate deals, on the other hand, have generally cost less over the term
of a mortgage but payments rise -- and fall -- with rate changes, so while your
payment stays the same, the amount that goes toward the principle could vary. For more -
http://www.nationalpost.com/Risk+reality/3203814/story.html#ixzz0s9CnDjOv For more information on mixed products offering the benefit of both fixed and variable, give Pauline at call at 604 813 8402 or email to pauline@mybcmortgage.ca
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