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Tips, Advice, and Explanations from a Vancouver Mortgage Broker  

Posts Tagged ‘rates’

Why Pre Approval Rates are Different than “Live Deal” Rates

Friday, March 18th, 2011

Transcript of Video Blog:
Hi everyone, Rowan Smith with the Mortgage Centre. I want to talk a little bit just about our current interest rates and why people will get a different rate on pre-approval than what they get it they have a live deal.

A lot of lenders have started doing things which are called quick closes within 30 days or a deal is only available for a live deal and you actually have to have a contract in place. So for example, some of my lenders are offering 4.14 as a current rate on a 5-year for a pre-approval. So that rate is guaranteed. Read the rest of this entry »

What is a Subject in a Real Estate Contract?

Wednesday, October 13th, 2010

Transcript of Video Blog:

Hi, everybody. It’s Rowan Smith from the Mortgage Centre. I want to talk today about subjects. Specifically, what is a subject in a contract? So the way I like to describe it is a subject is essentially a large ‘if’ statement. So if you’re writing an offer, say $500,000 subject to you getting financing, subject to a building inspection.

So when someone says, ‘what subjects have you put on the offer?’ typically it’s going to be your financing subject, it’s going to be your subject for building inspection, it’s going to be subject for anything else that you want, verified or looked at or confirmed prior to your offer being binding. Until you as the buyer remover those subjects, the deal is not binding.

So when you are trying to make your decision as to what subjects you need, you’re going to want to consult your realtor. You’re also going to want to speak to me before you do it to know what we’re going to require for financing. That will guide us in how much time, we are going to need for that subject removal, for that deadline.

Typically I like to see five business days. Not always possible, but that’s the ideal number. A little bit more certainly doesn’t help and it will take a lot of pressure off.
So when you are wondering what a subject is, it’s the conditions to your offer.

For the Mortgage Centre, I’m Rowan Smith.

Top 3 Important Dates in a Real Estate Transaction

Thursday, October 7th, 2010

Transcript of Video Blog:

Hi, everybody. It’s Rowan Smith from the Mortgage Centre. I want to talk today about subjects. Specifically, what is a subject in a contract?

So the way I like to describe it is a subject is essentially a large ‘if’ statement. So if you’re writing an offer, say $500,000 subject to you getting financing, subject to a building inspection.

So when someone says, ‘what subjects have you put on the offer?’ typically it’s going to be your financing subject, it’s going to be your subject for building inspection, it’s going to be subject for anything else that you want, verified or looked at or confirmed prior to your offer being binding. Until you as the buyer remover those subjects, the deal is not binding.

So when you are trying to make your decision as to what subjects you need, you’re going to want to consult your realtor. You’re also going to want to speak to me before you do it to know what we’re going to require for financing. That will guide us in how much time, we are going to need for that subject removal, for that deadline.

Typically I like to see five business days. Not always possible, but that’s the ideal number. A little bit more certainly doesn’t help and it will take a lot of pressure off.

So when you are wondering what a subject is, it’s the conditions to your offer.

For the Mortgage Centre, I’m Rowan Smith.

Mortgage Rates Rising… How to Get a Lower Rate…

Wednesday, June 18th, 2008

By this point, with the media blitz that has been underway, people have become aware that mortgage rates are on the rise. As I type this at 11:55pm at night, my last lender with low rates has moved them up. However, there are a number of permutations, variations, and specialty products that exist with the great older rates.

The first variation that exists is the Quick Close product. If you can close a mortgage in 30-45 days then special rates may apply to you as the lenders do not have to “hedge” for rates rising. That is 30 to 45 days from the date that your broker submits the deal, NOT since the offer was accepted (in the case of a purchase), nor is it from the date you and the broker talked about it. It is from the date he or she submits the deal to the lender. I have access to several lenders offering lower rates if you can close a mortgage quickly.

The next variation on a theme is the Jumbo Mortgage. These products are mortgages that exceed some lender-determined size and that qualify for a deeper discount as a result of their size. The most common point is $500,000 of mortgage amount. Any mortgage over $500,000 qualifies for a special deep discount. As of typing this email, 4.99% is still available for people with mortgages exceeding $500,000.

The last variation I’ll address is the Promotional Rate Offer. These are one-off products that have to fit certain size / closing date / applicant type. These are very specialized and you need to speak to a broker to see if there are products specially designed for an applicant in your unique position.

As I type this, I am able to give applicants the following promotional rates if they fit a specialized “box” regarding their employment, credit, financial situation, assets, income, and property:

5 Year Closed – 4.99%

5 Year Variable Closed Prime – 0.80% (Prime is presently 4.75% for a net rate of 3.95%

These rates are subject to change without notice, subject to the applicant meeting specific criteria, and are subject to closing in a specific time frame, but in either case, ask me if you qualify.