Genesis Associates Ltd. is a Mississauga-based mortgage brokerage specializing in first and second equity mortgages either for the self-employed, to refinance existing mortgages, mortgages to stop a power of sale procedure, or even debt consolidation through mortgage refinancing. Genesis Associates Ltd. brokerage has access to a wide range both institutional AND private lenders.
This website is packed with information that should answer almost any mortgage-related question you have. Whatever your reasons for visiting, our goal is for you to bookmark our website for future use and referral.
Our intent with this website is to provide you with a basis for which a personal and working understanding and relationship may be developed. Genesismortgages.com is a medium by which we can communicate current information to our existing and prospective clients so that they can make an intelligent decision in their mortgage financing.
Whether you are purchasing a new home, looking to renew your existing mortgage, thinking about consolidating some of those high-interest debts or possibly considering a second mortgage to accomplish these goals, we at Genesis Associates Ltd. will work with you to find the best solution to your needs.
• Mortgages for the Self-Employed, including those with “Challenged” Credit
• Equity financed mortgages or a Line of Credit
• Debt Consolidation via mortgage financing (1st or 2nd mortgages)
• Stop Power of Sale via financing OR refinancing 1st or 2nd mortgages
• Mortgage arrears brought up to date, including Property Taxes
• Private Mortgage Lenders for residential 1st or 2nd mortgages
We are not your typical mortgage brokers
We are available by phone any regular business day from 8 a.m. to 7 p.m., and of course you can email or fax anytime. You want a mortgage broker you feel comfortable with, and there is no better way for you to get to know us than by picking up the phone. The application form we have provided is there for convenience, to be used later in the process after a strategy has been formulated.
What you should know about new mortgage rules (November 1st, 2016):
On October 3rd, Finance Minister Bill Morneau announced that new mortgage rules will include more stringent “stress testing” for borrowers. The new rules are designed to lower debt levels, enforce some belt-tightening, and protect the housing market over the long term. Here’s how these new rules will affect Canadians.
THE HIGH-RATIO RULE
There has been a long-time rule that you must have “high-ratio mortgage insurance” if you have less than 20% downpayment. This insurance is there to protect the lender, and the premium is almost always added to your mortgage amount.
What’s changed? If you require an insured mortgage, you must qualify for your mortgage using the Bank of Canada (BoC) qualifying rate (currently 5.34% as of May 9, 2018) regardless of what your actual mortgage rate will be.
That means that – although I can find you a much better mortgage rate – you’d still need to show you can handle the mortgage using the qualifying rate. This financial “stress test” was already applicable for fixed and variable mortgages with terms of 1 to 4 years. Now, it also applies to fixed-rate mortgages of 5 years or longer.
Why the new rule? The government wants to be sure that borrowers can withstand any increases in mortgage rates when their mortgages come up for renewal.
Will my payments be higher? No. Your payments will still be based on your much lower actual mortgage contract rate. Keep in mind that mortgage rates are expected to stay at record lows into 2020. So this new rule isn’t costing you more. The potential change will be in how much mortgage you will qualify for: up to 20% less. You may need to plan on purchasing a less expensive home, or save up a larger downpayment, or ensure you eliminate all or most of your other debts.
Are any loans grandfathered? The new mortgage stress test does not apply when:
A mortgage loan insurance application was received before October 17, 2016;
The lender made a legally binding commitment to make the loan before October 17, 2016; or
The borrower entered into a legally binding agreement of purchase and sale for the property against which the loan was secured before October 17, 2016.
THE CONVENTIONAL MORTGAGE RULE
Maybe you have more than 20% down or equity in your home and you are planning to purchase, renew or refinance. Since you have strong equity, you aren’t considered a “high-ratio” borrower.
Effective January 1st 2018:
On October 17 2017, the Office of the Superintendent of Financial Institutions (OSFI) released new guidelines for residential mortgage underwriting at all federally regulated financial institutions. Beginning January 1, 2018, a new ‘stress test’ was be applied to all new conventional mortgages – and not just those mortgages that require mortgage insurance (downpayment or equity of less than 20%).
The so-called “stress test” is created and designed to “hopefully protect homeowners” (according to OSFI) should interest rates rise. Institutional Lenders will be obligated to qualify all new conventional mortgages at the greater of the Bank of Canada’s five-year benchmark rate currently at 4.99% as of Jan.1, 2018 (www.bankofcanada.ca/rates) OR the institutional mortgage commitment rate plus 2%. So if your mortgage commitment rate is 3.89%, you will be qualified at 5.89%.
Here’s what that might mean for you:
To buy a home with more than 20% down, your payments will always be based on your mortgage commitment rate so this new rule isn’t costing you more. However, the new rule might change how much mortgage you qualify for. If that’s the case, you may need to look at a less expensive home, save up for a larger downpayment, or reduce any other debt. Or we can take a look at a variable rate mortgage that lowers your qualifying rate (if the rate plus 2% is less than the benchmark 5.34%) and has the option to convert to a fixed mortgage.
You want to refinance to pay off debt or buy an investment property. Here too, your actual mortgage payment will not be affected. But the new rule could slow you down by making it more difficult to qualify for your refinance. You may need to wait and accumulate more equity, or look at a lower-rate variable mortgage. If that refinance is important to securing your own financial health, get in touch ASAP.
Your mortgage comes up for renewal next year. This more stringent qualifying requirement will not apply to mortgage renewals. If you go shopping for a better deal with a new lender, however, that will require that you re-qualify… and the new rule will kick in for you too. It still is very important that we review your options together.
What can you afford?
New mortgage qualifying for purchases with 20% down
|Household Income||Purchasing Power in 2017||Purchasing Power Jan. 1, 2018|
For illustration purposes only. Based on 25 yr amortization, 20% down purchases, 5 yr term, qualifying rate 3.29% today and 5.29% January 2018. Does not include property taxes, heat or condo fees. OAC.
THE CAPITAL GAINS REPORTING RULE
Canadians love the capital gains exemption they get on their primary residence: if your home grows in value, you aren’t taxed on that growth when you sell.
What’s changed? Starting this tax year, the sale of a primary residence must be reported at tax time to the Canada Revenue Agency, even though all capital gains are still tax exempt.
Why? This new rule was designed to prevent foreign property purchasers from claiming a primary residence tax exemption to which they are not entitled.
The numerical data and other information published on this site are provided for your convenience and are to be used as guidelines only. They are subject to change without notice. Any website links provided are purely for the convenience of the user.
** Property builder: Please call us for up to date builder references