By Cindy Janisch
Here are some reasons why you want to work with a Mortgage Broker who is an Accredited Mortgage Professional.
What it is
The AMP is Canada’s only national designation for mortgage professionals. Accredited Mortgage Professionals (AMPs) maximize their competitive advantage with the knowledge and training needed to succeed in today’s increasingly competitive marketplace. The designation represents a powerful marketing tool, enhances consumer confidence and improves the image of the industry.
Why it is important
There are so many options today when you are seeking out information on Mortgages. There are bank Mortgage Specialists, Mortgage Associates, Mortgage Brokers, new on line rate centres providing products on line. But, what does this truly mean for the consumer?
Here is a quick summary of the changes that have been made over the past year.
February 2016 – New Down payment requirements for homes priced between $500,000 – $999,999. 5% down payment on First $500,000 and 10% down payment on the portion above $500,000.
October 2016 – Mortgage Stress Test. All insured mortgages must qualify at Benchmark rate. The current benchmark rate is 4.64%. The Impact for buyers with less than 20% down payment will shrink the amount of mortgage which they can purchase.
Bulk Insurance legislation makes Monoline lenders less competitive and push for higher interest rates for those with a larger down payment. This limits the choice of lenders and could result in higher prices for consumers.
Taxes – capital gains exemptions on principal residences should only apply to Canadian residents. Everyone who sells their principal residence must report the sale at tax time to the Canada Revenue Agency.
January 2017 – Capital Requirements, geography now included when determining the amount of capital required for loans secured by property. Consumers could end up paying more in specific geographic areas.
March 2017 – Mortgage Insurance premiums increase for all levels of Loan to Value. More cost directed to the consumer to qualify for their mortgage.
©2021 Cindy Janisch, Mortgage Associate