Lynn Meldrum

As i sit here in my office I'm looking out the window and what do I see but a depressing snow storm. This is about the time that it feels like winter is never going to end here in Calgary. All the doom and gloom of the season here in western Canada, It's so easy to get into this type of head space of feeling depressed. It's like the ecomony right now, I believe we are in the winter of our recession and we need to ride it out because it's not going to stay winter and the ecomony is not going to stay this bad. We will have the spring to look forward to all the warm air and the nice hot sun. We can go and swim in the outdoor pools and enjoy the longer days of summer. This will also happen to the economy, it might not be as soon as the spring but it will change for the better. We will looking at making money in our RRSP's and selling our homes when we need to without taking a hit. We just have to make it through this ecomonic winter.

There's always a bright side to both. In the winter time we can go out and ski and snowboard and skate. Just like the upside to this recession, we have low interest rates so that you can use some of the equity in your home for a buffer so that if it gets bad you can ease the way a bit financially.

Hope everyone's winter comes to a close soon. See you in the Spring

Lynn Meldrum

Verico Canada First Mortgage

403-554-9142

Isn't this exiting what is happening here in Canada with the new budget. The Conservatives (the reigning party here) have passed the buget and in that budget is the one thing that may get my business moving. I'm talking about the rebate for renovations. It a 15% rebate with a maximum of $1350.00. The idea, I believe, is to infuse money into our ecomony but only if we use it. This is very exciting as most people who have owned thier homes for a while have some equity in them. Right now doesn't seem to be a great time to sell but it does seem to be a great time to renovate the house you already own.

There also seems to be a lift in the housing market here in Calgary where places are selling and people are looking into purchasing the homes that are on the market. I am in the mortgage side of this site . I would love to know from the realtor side how things are going and if there is a true pick up in the industry here in Alberta.

Let me know

Lynn Meldrum

403-554-9142

The beginning of the process is the mortgage application. Make sure that everything is filled out and signed. Please include everything that you own out right, any investments no matter how small, even a car if you still have a car loan for. These are assets and are important to show because all of your debts are counted against this. Make sure you are truthful in this application even if you think it might not be good. It's better the devil you know than the one you don't, that one easily can bite you in the rear. With this information I will do a calculation to see What you can pre qualify for just based on the income. I won't go into the Calculations with you know but it's Principle, interest, Taxes and heating over Your gross income, this will give you the gross debt service. We also do a calculation for your Total debt service and that is PITH plus all other debts over your gross income. These calculation need to be in the GDS 32 TDS 40 to qualify. There are some exceptions but it's best just to use these calculation for this purpose.

Once the file has been approved then we need to prove everything on the application. You will need the following

1. job letter

2. 2 last pay stubs

3. Notice of Assessment (possibly)

4. Purchase Agreement from the Realtor

5. MLS listing

6. 3 mons bank statements to show that you have had the deposit for at least 3 mons

7. 1.5% closing costs may also be proved via bank statement.

8. Lawyers name and address

9. Ussually a Pre Authorized Debit form and a void cheque

There may be more than documents needed then what I have already said but that just may be Mortgage Lender specific.

If you have any questions just ask. I love to answer questions

Hi all

I thought I would try this Blog again as I think it might be interesting what everyone thinks.

I have been reading several different Canadian Economists discuss what is going to happen in the next year. Last year some said that by the beginning of 2009 our interest rates might be at 7%. As they are at an all time low, I might be losing some faith in our wonderfully educated Money Profilers. So this year I have decided to make my own projections based on what I have seen in the past. Be aware that I am not, or do not profess to be a expert. I am just putting some educated guesses and I would like to hear others educated guesses and then we can check them out later in the year.

I educated guess is the the next meeting in March for the Bank of Canada will not show any changes in the prime rate and the meeting in June the Prime rate will drop by ¼%.

Love to hear from anyone else.

Lynn Meldrum

BAck from Mexico and wanting to go back as soon a humanly possible. At least I missed the cold snap here in Calgary while I was gone. Well 'm back and off to work I go. Rates have dropped a lot in the last little while. Best Rates right now are a 3 year fixed at 3.75%. The Five Year fixed is at 4.39% for a quick close. Adjustable rates are still sitting at 0.60% aabove prime. Again this looks good for a rate right now but if the rates go up at all you will be paying a lot more that the 4.39% if you want to get it locked in later.

Hola and have a great day

Lynn Meldrum

403-554-9142