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Archive for June, 2015

Spacious Rose Hill Rancher

Monday, June 29th, 2015

Open the door to your new home. Exclusive High Country Estates. 1 acre private lot backing onto green space, 20×40 inground pool, 3 decks, hot tub, gardens & magnificent views of city, river & mountains. This spacious rancher with daylight walk out basement & park like backyard offers space & privacy yet is only 10 mins to town. Main floor with updated kitchen, granite counter tops, walk in pantry & breakfast nook. Dining area open to spacious living room with built in cabinets, picture windows & 28′ deck with new glass railings. 3 bedrooms including master with w/i closet & sliders to deck with morning sun. Laundry & 2 piece bath with access to garage. Walk out basement features large family room, wet bar, fireplace with heatilator, office or music room with double insulated glass doors for soundproofing, bright bedroom, bathroom with sauna, hobby room, workshop & storage. Lower level deck has a built in hot tub. 26×22 garage, large driveway238A8617.238A8621

Just Sold

Thursday, June 25th, 2015

West Pines Villas 46-650 Harrington Just Sold

Thank you for listing and buying with me, it was a pleasure and best of luck in your new home.

This home sold right away. Great location beside Dunes Golf Course.

Linda Klein Kamloops Real Estate Weekly Mortgage rates for week of June 15th 2015

Tuesday, June 16th, 2015

DLC Weekly Rate Minder courtesy of Starr Webb

Terms Bank Rates Our Rates
6 Month 3.14% 3.10%
1 YEAR 2.89% 2.29%
2 YEARS 2.84% 2.19%
3 YEARS 3.39% 2.25%
4 YEARS 3.89% 2.54%
5 YEARS 4.64% 2.54%
7 YEARS 5.30% 3.39%
10 YEARS 6.10% 3.84%
Rates are subject to change without notice. *OAC E&OE
Prime Rate is 2.85%
Variable rate mortgages from as low as Prime minus 0.65%

Linda Klein, Kamloops real estate. How to Finance your Renovation

Wednesday, June 3rd, 2015
Courtesy of Mark Bertoli, Abbott Wealth
Home improvement is always in fashion. But the big question for many homeowners isn’t what to do, it’s how to pay for it. There are many ways to secure the financing you need, and each has advantages in certain situations.

Home equity line of credit
A line of credit gives you access to a predetermined amount of credit on demand. Generally, you can borrow up to 75% of the appraised value of your home — up to 90%, if the line of credit is insured. You take what you need, when you need it, and pay interest only on the outstanding amount.

A line of credit secured against the value of your house will typically be issued at a lower rate than an unsecured loan or personal line of credit. Accessing the home equity line of credit is easy and convenient. You may have the option of writing cheques or using a credit card or bank card.

Repayment is also flexible. You can pay some or all of the outstanding balance at any time without penalty, or make interest-only payments.

Increase your existing mortgage
Increasing the amount of your mortgage may be the right renovation-financing option for you if your mortgage is coming due, if you are selling one house to buy another, or if you are taking out your first mortgage.

It may also be a smart move if you’re locked in to a long-term mortgage at a significantly higher rate than is currently available. In this case, any penalty you may incur could be offset by the savings in interest over the long term.

While this option lacks the flexibility of a line of credit, the advantage for many is knowing that the borrowed funds are structured to be paid back in a set amount of time. And interest rates can be fixed, if you choose — unlike a line of credit, which floats against prime.

A second mortgage
A second mortgage is just that — a mortgage that is in addition to your first mortgage. Like a first mortgage, a second mortgage is a loan with a specified rate of interest and repayment schedule.

A second mortgage can be a good choice for homeowners who are locked in to a longer-term mortgage, but wouldn’t benefit from breaking their first mortgage. Lending rates for a second mortgage may be higher than a first mortgage.

Like increasing your mortgage, this option trades repayment flexibility for the peace of mind of knowing the debt will be paid down if you stick to the repayment schedule. Every situation is unique. But we can help you determine your best option.

Pre-approvals, more important and less concrete than ever

Wednesday, June 3rd, 2015
 Courtesy of Starr Webb Dominion Lending

Going through the pre-approval process is more important than ever to both you and your Realtor, but the actual term ‘pre-approval’ is potentially misleading.

You may be pre-approved for a certain mortgage amount, however there are still a number of variables that can enter the picture once an offer is accepted. That’s why it is imperative that one always include a clause in the offer along the lines of ‘subject to receiving and approving financing’. (There are variations to be discussed around the specific wording.)

Often clients are reluctant to write the initial offer on a property without feeling like they are 100% pre-approved.

An understandable desire. The risk, though, is that some may falsely believe that they have a guarantee of financing. They don’t.

A lender must review all related documents – not just those of the clients, but also those from the appraiser and the Realtor – as the property itself must meet certain standards and guidelines.

The pre-approval process should be considered a pre-screening – a first step only.

It does involve review and analysis of the client’s current credit report; it should also include a list for the client of all documents that will be required in the event that an offer is written and accepted. Clients should also come away from this initial process with a clear understanding of the maximum mortgage amount they qualify for, along with the various related costs involved in their specific real estate transaction. Equally important: with the completed application your broker is able to lock in rates for up to 120 days.

Why won’t a lender fully review and underwrite a pre-approval?

  • Lenders do not have the staff resources to review ‘maybe’ applications – they have a hard enough time keeping up with ‘live’ transactions.
  • The job you have today may well not be the job you have by the time you write your offer.
  • If more than four weeks pass, all of the documents are out of date – by lender standards – and a fresh batch needs to be ordered and reviewed.
  • The conversion rate of pre-approvals to ‘live transactions’ is less than 10%.

It is this last point that makes it so difficult to get an underwriter to completely review a pre-approval application as a special exception.

The bottom line is that a client’s best bet for confidence is the educated and experienced opinion of the front-line individual with whom they are directly speaking – and that’s their Mortgage Broker. This individual will not be the same person who underwrites and formally approves the live transaction when the time comes.

This disconnect between intake of application and actual underwriting of a live file makes having a ‘subject to receiving and approving financing’ clause in the purchase sale agreement so very important.

Perhaps the most significant factor in undermining the solidity of a client’s preapproval is the relentless pace of change of lending guidelines and policies – changes implemented not only by the Federal Government but also by the lenders themselves. It is very easy to have a pre-approval for a certain mortgage amount rendered meaningless just a few days later through changes to internal underwriting guidelines. Often these changes arrive with no warning and existing pre-approvals are not grandfathered.

It is absolutely worthwhile going through the pre-approval process before writing offers, and in particular before listing your current property for sale or accepting offers. This will give you a good idea of your maximum mortgage amount as well as securing a rate for you. It is a worthwhile endeavour.

Just be aware that aside from the key advantage of catching small issues early and securing rates, a pre-approval is not a 100% guarantee of financing.

But the good thing is, I can help you with this process!

The data included on this website is deemed to be reliable, but is not guaranteed to be accurate by the Kamloops Real Estate Board. The trademarks REALTOR®, REALTORS® and the REALTOR® logo are controlled by The Canadian Real Estate Association (CREA) and identify real estate professionals who are members of CREA. Used under license.