22 Sep

How does your income help you qualify for a mortgage?

General

Posted by: Denise (AMBER) Moser

It never ceases to amaze me how many people I ask how much they make (gross income) and they answer me with a blank stare and respond: “I really don’t know.” They know how much their take home is (because let’s be honest in many ways that is what is important, that’s what we get to spend) but they have no idea what their actual income is.
What people don’t realize is, your income is what sets your tax bracket and what starts to set the stage for how much of a home you can afford (qualify) or what your minimum down payment is going to be. Let’s talk about income,what it means to you, what it means to a mortgage and what it means to your mortgage qualification.

Hourly – Where you are paid by the hour. You are only paid for the hours worked and there is no guarantee of a set amount of work. Most lenders require at least a two-year history of this type of income at the same employer as it is not guaranteed. Plus there is a risk that borrowers may not get the income required to pay the mortgage payment.

Guaranteed Hourly – You are paid by the hour and guaranteed a fixed number of hours each week, rotation, month ect. This means employees receive a relatively stable income. However, although your employer offers these hours, should you choose not to work you will not be paid.. So if you are lucky enough to have guaranteed hours and are considering purchasing a home, it is best not to take time off without pay.. This would mean that even though your letter of employment is going to tell a mortgage broker you get guaranteed hours, your paystub will raise questions and imply you are in fact on an hourly contract rather than guaranteed hourly.

Salary – You are lucky enough to be guaranteed the same wage each pay period, likely no matter the hours worked. You may have sick days or flex days to cover the time you can’t be at the employer for things like doctors’ appointments, the kids’ first day of school ect. Employers may even let you work flexibly and bank time if you have to work more than the agreed 40 hours/week. For a lender this is perfect. It is simple and straight forward as long as your paystubs confirm the same wage each pay period.

Salary plus Commission – This type of income gives a person that little bit of security with a little bit of risk to earn more for their work. It is the same as a salaried position with a guaranteed wage each pay period but employees also get extra income for reaching sales or work targets. The salary can be used immediately towards qualifying for a home, however, the commission portion of your wage packet usually requires a two-year history. If commission is a big part of your income, you will need to be at your employer for at least two years before expecting to purchase a home.

Commission – This income is not guaranteed. You only get paid based on a portion of what you earn for your employer. For some this can be very lucrative but definitely not for the faint at heart as the income can have highs and lows. As with salary plus commission incomes, the lender will likely require a two-year notice of assessment average.

Business For Self – This income is for those who are self-employed. They have taken the risk to open their own ventures and rely on their steam, knowledge and sometimes willpower to earn a living. Business owners are fully responsible for their income and collecting it. They have multiple write offs and often use those to pay as little tax as possible. These people are in a category of their own and really require a blog of their own as they are many different ways and programs to help with their purchase.

So now that you know so much about incomes and you are questioning where you fit, I suggest you call your favourite Dominion Lending Centres Mortgage Associate to start the process of pre-evaluation!

26 Feb

Issues with your credit bureu? Contact the agencies that provide them.

General

Posted by: Denise (AMBER) Moser

Last year I had clients that had the same collection reporting twice against their credit bureau and dragging their credit scores down plus impeding the possibility of their ability to purchase a home at an affordable rate at a mortgage institution and not a private lender.  After launching an investigation with the credit bureau they were able to get the error corrected within a few weeks and we were able to find them a rate with a secondary lender and not a private lender.  Please don’t get me wrong there is definately a need for private lenders in circumstances where one doesn’t fit in the conventional world or has special requirements.  This article reminded me of last year as I work with another client to try to help them get corrections on their bureau for duplicate reporting. 

http://www.thestar.com/business/personal_finance/2013/02/12/how_to_clean_up_errors_on_your_credit_record_roseman.html

4 Jan

Enriched Academy is going to be on Dragon’s Den…..eeek!!!

General

Posted by: Denise (AMBER) Moser

Watch Jay and Kevin go up against the Dragon’s Den on February 17th.  These guys are hilarious and they want to teach your children about finances and how to get wealthy.  As a certified presenter I have spent time with these guys and they have found a way to make a very dry subject alot of fun.  If you see what you like click on the banner on my website to order a copy or if you would like to order multiple copies I will try to combine you with others so that you can get a discount. :o)

7 Nov

Tax Free Savings Account in a Nutshell care of ING

General

Posted by: Denise (AMBER) Moser

TFSAs in a Nutshell

  • Launched in 2009, a TFSA lets you set aside up to $5,000 a year to grow completely tax-free.  You’re not taxed on interest or gains in the Account, and you’re not taxed when you withdraw the money. No tax… not now, not later.
  • You can carry forward unused contributions. So if you haven’t been putting money into a TFSA, no problem. People over the age of majority can catch up by adding up to $5,000 for every year since 2009.
  • If you need the money, it’s available to you, anytime. Then, whatever you withdraw in any given year can be put back in your TFSA the following year.
  • You can have more than one TFSA. Want a different TFSA for each of your  savings goals? Great idea. Just remember, the maximum annual contribution is  $5,000 for all of your TFSAs combined-even ones at other financial  institutions.
13 Sep

5 more pairs of tickets given away for the Calgary Home and Design Show

General

Posted by: Denise (AMBER) Moser

I happily gave away five more sets of free tickets today to people for the Calgary Home and Design Show running from September 20 to September 23rd.  Lucky recipients are:  

1. Crystal Isley

2. Angella Stimson

3. Pam Dimler Davis

4. Carrie Knoll Ovens

5. Janet Giblin

These people received tickets just for being fans of my Moser Mortgages Fan Page on facebook.  https://www.facebook.com/MoserMortgages?ref=hl

That is all for 2012 but remember that there may be more in the Spring of 2013 so keep spreading the word on Moser Mortgages.

2 Sep

First 7 winners of tickets to the Calgary Home and Design Show for September 2012

General

Posted by: Denise (AMBER) Moser

As previously mentioned I am giving away pairs of tickets to the September Home and Design Show and the following people have won:

1. Jennifer Nud
2. Sylvia de Haas
3. Bill Davis
4. Danielle Ekelund
5. Rob Baustad
6. Tyneal Buchanan
7. Kelly Macdonald

As you can see there are still tickets left up for grab so if you have friends or family that are also interested in tickets if they become fans of Moser Mortgages on Facebook and tell me they want tickets they have a chance to get the ones still available.

 

11 Jun

Summer 2012 Fencing Project

General

Posted by: Denise (AMBER) Moser

So while we were installing a fence this weekend I realized that I had some information that may be of use to those out there that have large summer projects such as fences or decks this summer and decided I should share it.  My findings may save you some time or even some money.  See below:

We had 160′ feet of fence material to purchase and I decided to shop it around to see where the best price would be for this monster undertaking.  I called all the major wood material suppliers in town I could think of.  The fence that we installed is what Rona calls the Estate fence although I think Totem calls it something else and Windsor Plywood calls it something else.  Here is how my findings ranked:

160′ of fence:

All prices included wood, screws, posts, concrete and brackets unless otherwise noted.

 

6. Home Depot came in highest at just over    $2,200

5. Windsor Plywood                                      $2,082.53

4. Totem                                                    $1,600 plus materials ie.concrete, fasteners, brackets

3. Timbertown                                             $1,896

2. Rona                                                      $1,876.14

1. Lowe’s                                                                     $1,876.04

So Lowe’s and Rona pretty much tied being only $0.10 difference, however, we decided to go with Lowe’s because there is a Home Depot across the street that rents equipment making it easy for us to pick up and return the auger that was used to drill the holes for the fence posts.  I hope this saves you some time and maybe even some money this summer.