Alterations to BC Residential Loan Recommendations Will Impact Property Buyers

Alterations to BC Residential Loan Recommendations Will Impact Property Buyers

British Columbia’s Ministry of Finance announced new guidelines for banks and lenders earlier this year, to tighten up the lending of residential loans. These guidelines went into effect in April 2011. The changes in lending guidelines were focused on the loan-to-value ratios and amortization periods of residential mortgages. This is information that mortgage brokers need to understand so they can better assist their clients.

Important Definitions for Borrowers to Understand

A loan-to-value ratio is the ratio of the mortgage loan as it relates to the total value of the property. What does this mean to consumers? Let’s say a property is determined to be worth $500,000.00 and the mortgage loan being advanced to you is $400,000.00. This indicates two things. First, the down payment the bank or lender expects a borrower to make is 20%. Second, the loan to value ratio is 80%.

An amortization period is the length of time over which a loan is to be paid down to zero. When reference is made to a 3-year or 5-year ARM, it indicates the period that the Rate will remain fixed. This is not to be confused with the amortization period. Generally speaking, the amortization period is 25, 30, or 35 years for a specific amount. The shorter the amortization period, the higher the monthly payments.

What Changes Do the New BC Guidelines Make?

The changes that went into effect in 2011 were as follows:

 For borrowers who need to borrow less than 80% of the property value (such loans are called conventional loans), a maximum of 35 years of amortization period will continue to be available. For those borrowers who need to borrow more than 80% of the property value (such loans are called high-ratio loans), the maximum amortization period has been reduced to 30 years. For those …

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Cash Loan - The Fast, Safe and Easy Solution to Financial Difficulties

Cash Loan – The Fast, Safe and Easy Solution to Financial Difficulties

As you observed in today’s economic climate, you can figure out how hard it is to manage your everyday expenses. With the fall of the dollar rate, almost 2 million U.S. companies are facing foreclosures in recent years. And as a person who is only depending on a regular salary, the global recession has huge effects. Good thing, there are options like cash loan that you can consider whenever you need instant cash.

Yes, we are doing everything to tighten our belts during this situation. Instead of buying expensive things, we prepare to save for other important things. It is because we want to save our money for other expenses. But what if you see your ailing mother? Or perhaps, your car stops in the middle of the road yet you have no money to send it to the repair shop. It is hard and you need to do immediate action just to find instant cash to fix your problems.

Thanks to the services offered by lending companies, you can easily get instant cash overnight. No need to wait for the next payday just to pay for your bills and medication expenses. In just a few clicks of your mouse, instant money will be deposited into your savings account. All you have to do is to search for lenders that offer this loan scheme without any hassles.

Simple steps to follow when getting instant cash

  • Fill out an online application
  • Sign-in an electronic contract
  • Call the customer service number that will help you with the loan process
  • Wait for the approval for about an hour
  • Claim the money using your bank account

A Cash loan is an excellent option to manage financial catastrophes. But then, you should understand that relying on lending companies is not a good long term financial …

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