by VAN HANSEN
My neighbour Brent Ivy, Agent with Key Mortgage Partners is celebrating 30 years in the mortgage business. And 2 weeks ago he stopped by my Right at Home Realty, Brokerage office in Burlington where we had a chance to chat for a few minutes about all things mortgage.
The Rules Have Changed
The first of the recent policies aimed at making housing more accessible to home buyers took effect November 21st, 2024. Now homeowners with uninsured mortgages will be able to switch lenders at renewal without having to pass the mortgage stress test.
“If you’re going to move from one lender to another, I suggest talking to your mortgage professional because we may be able to move you over at a discounted rate,” says Brent.
More changes that started on December 15th, 2024 include increasing the $1m price cap for insured mortgages to $1.5m.
“The premium that the insurers are going to request is added on to the mortgage” says Brent. “So it's not something first time homebuyers have to come up with, but it allows them to get into those higher priced homes”.
The other side of that is individuals with a separation agreement may qualify under this policy as well.
And 30-year amortizations are now available to first time homebuyers, and buyers of new builds.
Another policy coming into force January 15, 2025 is homeowners will be able to refinance up to 90% LTV (loan-to-value ratio) to use the funds to add a rental unit to their owner-occupied property.
Where to Start
A pre-approval will give you a ballpark figure. But in real estate time is of the essence. Which means that for buyer clients one of the first things I advise them to do is to consult with their mortgage professional. That way when I find the right home for my clients we can act quickly to offer on the property.
Brent's application is online. “I follow up to help complete any missing information. We look at documents such credit bureau, paystubs, T-4 for 2 years, and employment letter”.
Entrepreneurs may also need full T-1 generals, and sometimes bank statements and articles of incorporation depending how they have their business set up.
Down payment documents will be required once a property is selected, and the lender may require an appraisal.
Mortgage Brokerage v. Big Banks
“I'm fortunate in that I've been able to play in both sandboxes so I can speak with some experience on both sides,” says Brent.
“So kind of the best way to think about it is the broker actually goes out and finds you the product that fits best for you. Whereas if you go to the bank, they're trying to put you into their box”.
Brent’s mortgage brokerage works specifically with 50 different lenders.
__
Brent Ivy has lived in (West) Waterdown with his wife Tiffany for 21 years now. What drew them here was the proximity to schools for their children. They quickly established roots as they started to play hockey and meet families, expanding their network of friends.