The Arnason Mortgages Blog - Calgary's Mortgage Broker

Every year millions of people make resolutions to change or improve things in their lives that they have been putting off or that have become more important.  We wanted to share some of the top resolutions for 2012 in Canada (and within our Mortgage Team) along with some tips on how to increase your chances of making them a reality this year.

Change the World / Make A Difference – we all have the ability to change the world and to help others by sharing our gifts, our time, and committing random acts of kindness every day.  By taking just a few minutes to help out a stranger or do something nice for someone you start to create ripples of kindness and compassion that really can change the world.  There are also thousands of charities and organizations that need volunteers; to find a place where you can help that matches your interests, skills, talents and availability just go to www.google.com and type in the name of you your city and the word volunteer.

Lose Weight / Be Healthier – the most obvious tip is to make the effort to get to the gym and to eat less but what it really comes down to is simply burning more calories off than you take in.  Eating healthy is more important than eating less and being aware of how many calories you are eating versus how many you are working off is the first step.  If the intake is greater than the output then you need to add more physical activity to your routine.  Also be sure take time every day to relax and find ways to reduce your stress – physical health and mental health are equally important!

Quit Smoking – it doesn’t matter how many times you have tried in the past, you can still reach your goal of stopping smoking.  Science has come a long way in understanding the complexity of nicotine addiction and there are some very successful tools and aides to help you now.  My Time To Quit has some great tips and online tools that can help you get there, to access the tools visit: http://www.mytimetoquit.com/sites/mttq/pages/how-to-plan-your-quit.aspx  Don’t give up, this is not a process you can fail as long as you as trying to move forward and try again.

Get out of Debt / Improve Finances – if you are feeling overwhelmed by the amount of debt you have you are not alone, the level of consumer debt in North America is growing.  The biggest challenge to getting out of debt and taking control of your financial health is usually high interest rates that put consumers into a viscous cycle of robbing Peter to pay Paul every month.  

There are many options available to help you with this problem – if you rent or lease your home there are agencies in every city that will help you negotiate better rates with your creditors and get your payments under control.  If you own your home you can trade in your high interest rates debt (including credit cards and consumer debts at rates of over 30% interest) for rates as low as 3.25% by leveraging your existing equity.   If you are thinking about consolidating your debts and own your home please contact us for a complimentary no-obligation consultation on your options and how we can help you create less stress and a better financial future for you and your family.  You can reach us online at http://www.larryarnason.com or you can call us 403-265-5363 / 1-888-722-5086

Wishing you a very happy and successful 2012!
~ Larry Arnason, Mortgage and Finance Broker

www.larryarnason.com

If you have your eye on a fixer-upper or if you are thinking about building your dream home, we can make financing your endeavours in Canada easier than you may think.

Purchase Plus Improvement or "Renovation Mortgages" allow homeowners to renovate a newly-purchased, renovate from refinancing a home, or build a new one, and roll the cost of the improvements into the balance of the mortgage. The homebuyer or owner can benefit from the low interest rate associated with a mortgage and the simplicity of one mortgage payment while putting down less than 20% of the home's 'as improved' value.

The first step in getting this type of mortgage is making the offer conditional on a renovation mortgage program such as CMHC's 'Purchase Plus Improvements' program. The second step is to get at least 3 quotes from contractors to determine the estimated cost of the renovations. CMHC will approve a loan of up to 95% of the 'as improved' value of the existing house or the value of the newly constructed home provided the money you're putting into the home will actually increase the value of the property.

Some newly constructed houses can receive up to 4 monetary advances before the home is finished - refinanced or newly-purchased homes CMHC only advances up to 95% of the original value. That means you must be prepared to finance the renovations and improvements up front, keep all your receipts, and wait for reimbursement after the renovations are complete and the lender has time to evaluate and confirm the as-improved value.

Alternatley, if you're thinking about doing renovations on a new home but you've put down more than a 20% down payment, a Home Equity Line of Credit (HELOC) may be a better choice - a low-interest line of credit that is secured against your home. 

How these mortgage options work:

Usual way of financing:

$150,000.00       Total Purchase Price

$ 7,500.00          Less 5% down payment

$ 3918.75           Plus 2.75% CMHC/GE premium

$ 147,131.25      Total Mortgage

$ 830.86/mnth    Mortgage payment @ 4.75% (current rates are significantly lower)

Purchase plus Improvements:

$150,000.00       Total Purchase Price

$ 8500.00           Proposed Improvements

$158,000.00       Value Of Home - As Improved

$ 7900.00           Less 5% of improved value

$150,100.00       Financing required

$ 4127.75           Plus 2.75% CMHC/GE premium

$ 154,978.25      Total Mortgage

$ 875.17/mnth    Mortgage payment @ 4.75% (current rates are significantly lower)

In this example you are able to personalize the home to suit your needs and improve the value of your home, without waiting until you could afford to do the changes.

To apply for a Renovation Mortgage in Calgary please visit us at Calgary Mortgage Broker to fill out our no-obligation 30 second Mortgage Application for a complimentary evaluation of your mortgage options.

* please note: CMHC/GE premiums used in these calculations is based on a 25 year amortization. 0.20% will be added to the CMHC premium for every 5 years of amortization above 25 years.

For more information different types of mortgages including, Fixed vs Variable, 0% Down Payment, and 2nd or 3rd Mortgages please visit: http://www.larryarnason.com/services 

One of the first steps in buying a home is to understand what your actual price range is – this is determined by 2 primary factors: how much you have for a down payment and what you can qualify for as your monthly payment based on your income and expenses.

To help you figure out what that monthly payment amount can be CMHC (Canada Mortgage and Housing Corporation) has developed a great new free tool that takes you through a series of questions about your finances and calculates what you can potentially be approved for.  As all mortgages in Canada that are processed with less than 20% down MUST be approved by CMHC making this little tool very helpful for people shopping for a new home.

To access the calculator please visit: http://www.cmhc.ca/sharing/en/householdbudget.html

To see more mortgage calculators on topics including amortization, interest rates, and down payments please visit: http://www.larryarnason.com/calculators

If you have any questions about getting approved for a mortgage in Canada or about refinancing / renewals in Canada please visit us online at or give us a call at 403-265-5363 anytime.

Happy house shopping!

Larry Arnason, Your Mortgage Expert

Each year on November 11 Canadians commemorate our veterans, active military, and fallen heroes in thanks for their bravery and sacrifice so that we and millions of people around the world can live in freedom.  We honor this date in memory of the end of the first World War which came at 11am on the 11^th day of the 11^th month in 1918.  More than 65,000 Canadian soldiers died in WWI in battles that included Vimy Ridge and Passchendaele – battles that changed the course of the war.  Since that time the Canadian military has continued to fight alongside our allies in times of war and acts as a global peacekeeping force defending people still living under oppression and where their basic human rights are being abused around the world. 

The men and women who serve give their bravery, hearts, and all too often their lives in pursuit of the highest belief that every person – man, woman, and child – deserves to live in freedom without fear or suffering.  To the hundreds of thousands of Canadians who have fought in the name of freedom and continue to fight today we are grateful beyond words.

Please join me at 11am on Friday November 11^th in observing a moment of silence to pay tribute to our fallen soldiers and say a prayer that the thousands of military personal – our sons and daughters – from Canada and the many other countries who fight along side us return home safe.

The Ode of Remembrance:

They went with songs to the battle, they were young.

Straight of limb, true of eyes, steady and aglow.

They were staunch to the end against odds uncounted,

They fell with their faces to the foe.

They shall grow not old, as we that are left grow old:

Age shall not weary them, nor the years condemn.

At the going down of the sun and in the morning,

We will remember them.

Lest we forget.

~ with gratitude, Larry Arnason

The housing market is a significant indicator of a city’s economic state, quality of life and lifestyle, and of future growth.  In Calgary the future looks bright!  According to CREB® (Calgary Real Estate Board) residential sales in Calgary increased 8% over October’s year to date sales in 2010 for a total of 16,184. 

Low unemployment, price stability, the low mortgage rates available, and overall positive economic outlook for the region are all contributing to this increase.  These factors are combining with positive growth in the commercial real estate market and demand for office space in the downtown core as energy companies continue to grow despite the global economic challenges.  According to the Globe and Mail “Calgary is the new Canadian Hot Spot” with a culturally diverse downtown, growing employment, and is now ranked in the top 5 cities to live and work.

In October of 2011 there were 988 single family homes sold  - an 11% increase over sales in October 2010.  Prices remained stable with an increase of only 2% due in part to an increase in the number of estate and luxury homes sold.  Condominium sales also increased from 2010 and are expected to continue to rise for the remainder of the year.   “Overall, the resale housing market continues to show signs of improvement and, with no near term change in interest rates, we can expect the market will continue to see moderate and stable growth throughout the rest of the year.”  Sano Stante, President of CREB®. 

For families that have been thinking about making the transition from renting to buying a house there has never been a better time to make the move into home ownership.  With 5 year fixed term mortgages available as low at 3.29% (oac), a strong economic forecast for the city, and an incredible range in available properties at every price level, buyers can purchase a home that they can afford on their budget that will be a positive investment for their future.  The low mortgage rates also mean it is a great time to refinance or renew existing mortgages.

If you are interested in purchasing a home in the Calgary area or need help with refinancing please contact us for a no-obligation consultation to review your mortgage options.  We work with hundreds of banks and lenders from across the country to ensure that we get our clients the best rates and terms available.   To find out more about our services or to request a consultation please visit our website at: Calgary Mortgage Broker

~ Larry Arnason, Calgary Mortgage Broker and Specialist - Arnason Mortgages

Let us help you make your dreams of owning a home in Calgary a reality at http://www.larryarnason.com

More and more home owners are exlporing the possibility of refinancing their homes and looking at debt consolidation mortgages to deal with financial challenges as a result of the current economy.  We have all had times in our lives when it seems there is too much month left at the end of our pay cheque and not enough money left to take care of things coming in. Credit cards, car loans, taxes, bills, etc, etc. can add up quickly - before we know it we can find ourselves in a heap of trouble and struggling to hang on until the next pay cheque comes in. 

Most debts, like credit cards and department store cards, are unsecured debts which makes them very high risk for the lenders. High risk means high interest rates - some as high as 29% or worse. They are also generally amortized over a fairly short time period, (usually 3 to 5 years) making the principal portion of your payments very high. Get a few of these going and you can see how a pay cheque can disappear very quickly and start eating up your budget.

If you own your home or property there are options available for you to stop the cycle of dangerously high credit card interest rates and negative impacts hitting your credit score every month as you try to alternate payments or get ahead.

The two most common solutions are:

1. Make more money! This sounds obvious but for many people it is simply not an option as they are already working as many hours in a week as possible.

2. Make the money you have already borrowed cost less - mortgage intererst rates are at their lowest in 5 years!

Number one is not really an option for most of us, at least not in the short term. Number two can be done quite easily though. Be smart; use the equity in your home. Pay off those high interest loans and replace them with a single low interest secured loan, amortized over 25, 30 or even 35 years. In doing this you are still obligated to pay your debts, but the payments will be significantly lower and more manageable. This will save you from late payments, possible bankruptcy or structured settlements which could destroy your future borrowing potential if they happend. It will also increase your credit score almost immediately as all your debt load will be cleared away. Imagine the feeling of telling credit cards companies that you don’t need any more cards and not worrying about who the next call was coming from. Financial freedom is only a call or application away.

For a complimentary evaluation of your financing and mortage options in Canada please fill out our no obligation Quick Mortgage Application on our website: Calgary Mortgage Broker and we will get back to you right away.

~ Larry Arnson, Calgary Mortgage Broker and Financial Expert

The current low interest rates for mortgages in Canada mean that there are some great opportunities for people to purchase their first home, move-up to a larger home, refinance their existing home for a lower rate, or create a debt consolidation strategy to remove high interest rate debts such as credit cards (at up to a 29% interest rate) by leveraging their existing equity for a rate that is as low as 1/8 of what they are currently paying to debtors. 

To help consumers that are looking for mortgage solutions navigate the often confusing array of choices available we have launched a series of articles to explain some of the unique options that we can offer our clients.  

Purchase Plus Improvement Mortgages

No Money Down Mortgages  (also known as 100% financing or Cash Back Mortgages)

RRSP Homebuyers Plan

Debt Consolidation Mortgages

Fixed versus Variable Rate Mortgages

We work with hundreds of banks, commercial lenders, and private lenders to provide mortgage services for all income and credit levels.   We are committed to ensuring each client has a positive and stress-free experience securing the best mortgage option available for their unique needs – guaranteed.

Please visit our Mortgage Services page to see a full list of the services we provide in Canada.  If you are ready to speak with a Broker or would like more information please visit us at Calgary Mortgage Broker and fill out our quick, no obligation mortgage application for a complimentary consultation on all of the options and rates available for you.

~ Larry Arnason, Calgary’s Mortgage Broker and Financial Expert

One of the things that makes Calgary such a great place to live is the cultural and entertainment diversity available here.  With end of October is fast approaching the Calgary scene is offering some incredible options for your Halloween fun this year ranging from Calgary Philharmonic Orchestra’s take on Psycho to child friendly nights at the Zoo.  Events around the city range from the truly terrifying to general family fun ensuring there is something for everyone and for every scare threshold. 

The Screamfest Haunted House and Freak Show: 5 unique Haunted Houses and shows at Canada Olympic Park that will scare and entertain you.  Admission starts at $20 with packages available for VIP passes and other onsite attractions.  According to their website this attraction is intended for a mature audience – no one under 13 will be admitted and over 18 is recommended.  http://www.screamfest.ca 

Boo at the Zoo: The Boo at the Zoo that you love to fear is back! Voted BEST Halloween event by Calgary’s Child Magazine.  This event runs from October 28^th to October 30^th and is a great option for a younger audience.  Children can Trick or Treat through the Zoo and there is a Scare rating system so you can customize your trip for your family.  http://www.calgaryzoo.com/content/view/29/287/#boo

Ghouls' Night Out at Heritage Park: Evening activities include a Halloween dance, a Toy Shop of Horrors, a gruesome Ghouls’ Feast and more. Perfect for families with little ones aged 3 to 9, the event runs from October 26^th to October 30^th from 6pm to 9pm each evening.    http://www.heritagepark.ca/specialevents.htm

Psycho, The Movie and the Music: This Halloween, experience Hitchcock as never before. See Norman Bates return to the big screen as the Orchestra provides the chilling soundtrack at the Jack Singer Concert Hall. Viewer discretion is advised.  http://www.cpo-live.com/main/event_detail.php?event_id=538

Cemetery of Sound: This event is at the Big Four building and open to ages 18 and up.  The premiere Halloween electronic dance music event, bringing together the city's best promoters and some of today's most exciting DJ talent for an epic, thrilling night!   http://unionevents.com/shows/view/2824/cemetery-of-sound

If you feel like getting dressed up and going out on the town for Halloween, many of the local bars and nightclubs have special events planned for the Halloween weekend.  To see a complete list of the different themed events check out http://calgary.beforelastcall.com/happenin/8/calgary_halloween_events.html

Have a great and safe Halloween 2011 Calgary!

Larry Arnason, Calgary’s Mortgage Broker