15 Jan

5 Approval Roadblocks

General

Posted by: Jennifer Koop

5 Approval Roadblocks

Jennifer Koop & Susan Bloom – Mortgage Agents in Huntsville, Muskoka.

5 Approval Roadblocks.

When in the process of buying a home, there is nothing worse than having your mortgage broker or lawyer call and say “there is a problem”.

If you have found your dream home and negotiated a fair price, which was accepted, and you have supplied all the documentation to your broker, you probably assume everything is fine. The reality is that your financing approval is based on the information the lender was provided at the time of the application. If there have been any changes to your financial situation, the lender is within their rights to cancel your mortgage approval.

To ensure that you don’t encounter any last-minute issues on your home buying journey, there are five major approval roadblocks to be aware of and avoid for a smooth transaction:

EMPLOYMENT

When submitting a request for financing, whether a mortgage or car loan or to handle personal debt, one of the most important aspects the lender looks at is employment. If you were working at Company X for five years at $50,000 a year and – just before your deal is finalized – you change jobs, the lender will now require proof from the new job. This can include proof that probation for this new job is waived, or new job letters and pay stubs at the very least. If you change industries, they will want to see more proof that you are capable of keeping this job. For any employment involving overtime or bonuses, the lender often requests a two-year average, which you would not be able to provide at a new position. Another employment change that could hurt your financing approval would be if you decide to change from an employee to a self-employed contractor.

When it comes to financing, it is best to wait to make any major employment or life changes until after the deal has gone through.

DOWN PAYMENT SOURCE

As mortgage financing is based on the initial information provided, you will most likely need to do a final verification of the down payment source. If it is different than what the lender has approved, it could spell trouble for your financing approval. Even if you said that your down payment was coming from savings and, at the last minute, mom and dad offer  you the funds as a gift, it could affect your approval. This is an acceptable source of down payment, but only if the lender knows about it in advance and has included this in their risk assessment, but it can end a deal.

DEBT

A week or two before your possession date, the lender will obtain a copy of your credit report and look for any changes to your debt load. Since mortgage approval is based on how much you owed on that particular date, it is important not to increase your debt before the deal is finalized. Buying a new car or items for the new home must be postponed until after possession; even if they are “do not pay for 12 months” campaigns because you will need to fulfil those payments, regardless of when they start.

BAD CREDIT

One of the biggest roadblocks to mortgage approvals is credit card payments. When you enter the financing process, it is important that your credit score remains positive. If your credit score falls due to late payments, this can cause major issues with your financing. Even if you have a high-ratio mortgage in place which requires CMHC insurance, a lower credit score could mean a withdrawal of the insurance and removal of any financing approval.

MISSING IDENTITY DOCUMENTS

Before a deal is finalized, the lawyer must verify your identity documents and see that they match the mortgage documents. You may not think it needs to be said, but it is important to use your legal name when you apply for a mortgage. Even if you go by your middle name or a nickname, all legal documents should match.

Keep in touch with us, your Dominion Lending Centres mortgage professional, right up to possession day. Make this a happy experience rather than a heartbreaking one.

Published by DLC Marketing Team

For all your mortgage needs contact us today 705-349-0502

Jennifer Koop & Susan Bloom, Mortgage Agents Huntsville, Muskoka
Dominion Lending Centres, Mortgage Brokers Huntsville, Muskoka

Up Next: Sugar Free & Dairy Free Fudgesicles

8 Jan

Sugar Free & Dairy Free Fudgesicles

General

Posted by: Jennifer Koop

Fudgesicles

Jennifer Koop & Susan Bloom – Mortgage Agents in Huntsville, Muskoka.

Sugar Free & Dairy Free Fudgesicles.

“These are so lusciously creamy, sinfully rich-tasting – the kind of thing you put in your mouth and kind of can’t believe what’s happening. Vegan, almost raw, and full of whole food ingredients, they are also downright filling! They make a fabulous mid-morning or afternoon pick-me-up, especially with the raw cacao component, a deliciously effective, energy-boosting food. Dress them up with your favourite add-ins, or keep it simple and enjoy them as the five-ingredient bliss bars that they are!”

See more on www.mynewroots.org

5-INGREDIENT VEGAN MAGICAL FUDGESICLES

Makes 4 cups / 1 Liter / 10 fudgesicles

INGREDIENTS:

  • 1/2 cup / 75g unroasted, unsalted cashews
  • 1 14-oz can / 400ml full-fat coconut milk
  • 1 large, ripe avocado
  • 1 cup / 250g pitted, packed soft dates
  • 1/2 cup / 55g raw cacao powder (cocoa powder will also work)

DIRECTIONS:

  1. Place cashews in lightly salted water and let soak for 4-8 hours (overnight is fine).
  2. Drain the cashews and rinse well. Add to a blender (a high-speed blender is highly recommended) with the remaining ingredients (and any flavourings, if using) and blend on high until as smooth as possible. Add water only if necessary – you want to mixture to remain quite thick.
  3. Spoon the mixture in popsicle molds. Firmly knock the molds on the counter a few times to remove any air bubbles. Insert a popsicle stick into each mold and place in the freezer until set – at least 6 hours. To remove popsicles, run the mold under hot water until you can easily pull a fudgesicle out.
  4. If you want to decorate your fudgesicles, dip or drizzle them with melted chocolate and sprinkle with desired toppings. Eat immediately, or place back in the freezer to set until ready to enjoy.

OPTIONAL ADD-INS

  • A pinch of Sea Salt
  • Vanilla (seeds from 1 pod, powder, or extract)
  • Food grade essential oils (a few drops of peppermint, orange, almond etc.)
  • A pinch Cayenne Pepper
  • Espresso powder
  • Finely chopped toasted nuts (cashews, hazelnuts, almonds, pistachios etc.)

OPTIONAL TOPPINGS (as seen in photo)

  • Melted Dark Chocolate
  • Cacao Nibs
  • Finely Chopped Toasted Nuts (Cashews, Hazelnuts, Almonds, Pistachios Etc.)
  • Dried Fruit
  • Citrus Zest (Lemon, Orange, Lime)
  • Hemp Seeds
  • Unsweetened Desiccated Coconut
  • Bee Pollen

Published by DLC Marketing Team

For all your mortgage needs contact us today 705-349-0502

Jennifer Koop & Susan Bloom, Mortgage Agents Huntsville, Muskoka
Dominion Lending Centres, Mortgage Brokers Huntsville, Muskoka

Up Next:  Budgeting for the Year Ahead

6 Jan

Budgeting for the Year Ahead

General

Posted by: Jennifer Koop

Budgeting for the Year Ahead

Jennifer Koop & Susan Bloom, Mortgage Agents Huntsville, Muskoka

Budgeting for the Year Ahead!

With the recent inflation and rising prices occurring across the country, it is time to take control of your finances. One of the quickest ways to understand where your money is going and where you can make changes, is to create a monthly budget. This will help you get a snapshot of your income compared to your spending, and provides an avenue to review all of your outgoing costs and helps you make changes to increase your monthly cashflow – or just feel less stressed!

Step 1: Calculate Your Income

The very first step to creating any budget is determining your income – knowing exactly how much money you bring in is important to understanding what you have available to spend. Remember to focus on NET INCOME versus gross salary, as budgeting for more than you can afford will lead to overspending.

Step 2: Track Your Spending

Once you have determined your income, you will want to take a look at your spending. Reviewing and categorizing all your monthly bills can help you breakdown exactly where your money goes and make some priorities to mark where changes can be made. To start, first list out your fixed expenses – these are things like car payments, loans, rent or mortgage costs that do not change on a monthly basis. Next, you will want to take a look at your variable expenses – things like groceries, gas, entertainment, etc. and determine your average spend. This is typically the area where people are able to cut back.

Step 3: Set Realistic Goals

Realistic goals are vital for long-lasting financial health. It is important to determine what you cannot live without and where you can cut costs or scale back on spending. Ideally, when it comes to your monthly budget, you want to consider the 50/30/20 rule, which applies the following:

  • 50% of your spending is for NEEDS such as rent or mortgage payments, car payments, utilities and groceries
  • 30% of your income goes to WANTS such as shopping, vacations, streaming services, etc.
  • 20% of your income goes to SAVINGS OR DEBT such as emergency funds, retirement, child’s education and/or credit card payments

Step 4: Make a Plan

Once you have your goals set, you can now make a plan to tackle your financial position and ensure a healthy cashflow each month. For some, setting realistic spending limits for each category works well. For others, taking a look at the importance of their expenses and re-prioritizing can free up funds.

Step 5: Adjust Your Spending

Now that you have determined how much money you bring in per month and what you spend it on, you can take a look at adjusting your spending to ensure you remain on budget. Taking a realistic look at your wants is a great place to cut out frivolous spending beyond a reasonable amount. This is also a great time to review your fixed expenses. Perhaps you can save money by getting a better interest rate on your mortgage or changing the payment schedule for your loan. Be sure to connect with a me before making any changes to your mortgage!

Step 6: Stay on Track

Tracking your budget on a monthly basis is important to catch any changes in your spending habits. As well, it is a good idea to conduct an annual review and take into account any increase in expenses or wages that may require shifts in your overall plan.

The Government of Canada has an online budget planner tool available as well if you need further assistance! You can find it here.

Remember: A healthy budget is key to financial freedom and comfort.

Published by DLC Marketing Team

For all your mortgage needs contact us today 705-349-0502

Jennifer Koop & Susan Bloom, Mortgage Agents Huntsville, Muskoka
Dominion Lending Centres, Mortgage Brokers Huntsville, Muskoka

Up Next: Refinancing Your Mortgage in 2025