The unfortunate truth is that there will be short term pessimism, and some of the mortgage products have been removed from the shelf, but here’s the good news! In the midst of this situation, the strong lending institutions and mortgage insurers have picked an opportune time to come out with new and better options for the buyers and home owners. Take a look at some of the positive changes:

•    Qualified buyers can get their second home, for a family member or for themselves with no required down payment. This might be an option for a child who is leaving home, going to secondary school, needing a save and affordable place to live. Or an elderly parent who wants to downsize into something smaller, newer, and more convenient for retirement years. While you help out your family member, you enjoy the growth of an investment in real estate!

•    How about buying a rental property with no initial down payment? Wouldn’t it make sense to save your after-tax dollars to invest elsewhere, since you’ll give up a piece of your growth (Capital Gain) when you sell this very same investment? Although there is an insurance premium to consider, with the option of less, or no down payment, the extra cost can make sense. The other positive aspect to consider is the tax deductibility of the mortgage interest, and with a good rental market, even with the smaller down payment, there can be full coverage.

•    Traditional requirements for the self-employed buyer trying to qualify for a mortgage could be very frustrating. Now, thanks to our insurers (CMHC, Genworth, etc.) as well as other non-insured lenders, we can make sense of the entrepreneurs’ accounting, and qualify on other factors besides actual proof of income. The greatest part of this change is that these buyers can also take advantage of “best rates” and low down payments!

With our current local market opportunities, it’s hardly a thought, less likely a worry, when we think about the real estate market to the south. Buying a new home right now could be a better buy and the best timing in years! Jacqui Mulikow, AMP (Accredited Mortgage Professional), is a Mortgage Consultant with Mortgage Intelligence, the largest and most respected Mortgage Broker in Canada. Jacqui’s background includes 20 years in the financial industry. Ten of those years have been in the banking sector in a lending and investment advisor capacity and further experience with a major Financial Planning company as a Financial Planning Consultant and Mortgage Specialist. Jacqui has access to more than 30 lending institutions and is an expert in customizing mortgages to meet her client’s needs.

www.mortgageintelligence.ca /jacquimulikow