Welcome to the June issue of my monthly newsletter!
This month, let’s talk about how mortgage pre-approval versus pre-qualification for those potential buyers out there, PLUS some of the best home features for pets! Scroll down for all the details and have a great month.
Mortgage Pre-Approval vs. Pre-Qualification
Looking to buy your first home? Thinking about making a move? Whatever your goals, when it comes to getting a mortgage, there are a few things you can do in advance to make the mortgage process easier!
Getting Pre-Qualified: The purpose of mortgage pre-qualification is to help you get a general idea of what you can afford when shopping for your new home.
Pre-qualification will take your own assessment of your financial status and allow you to come up with a budget for a home, as well as what you can afford for monthly payments.
Download my app today and get pre-qualified in under 60 seconds! Plus, this will help to provide you with an estimate of your monthly mortgage payments and compare various payment schedules.
Getting Pre-Approved: While getting pre-qualified can give you a ballpark estimate of what you can afford, pre-approval means that a lender has stated (in writing) that you do qualify for a mortgage and what amount, based on submitted documentation of your current income and credit history.
A pre-approval usually specifies a term, interest rate, and mortgage amount and is typically valid for a brief period, assuming various conditions are met.
There are a few benefits to pre-approval including:
- It confirms the maximum amount you can afford to spend
- It can secure you an interest rate for 90-120 while you shop for your new home
- It lets the seller know that securing financing should not be an issue. This is extremely important for competitive markets where lots of offers may be coming in.
Keep in mind that once you get your pre-approval, you will want to make sure not to jeopardize it. Until your mortgage application and sale is completed, be sure you don’t quit or change jobs, buy a new car or trade up, transfer large sums of money between bank accounts, leave your bills unpaid, or open up new credit cards. You do not want your financial or employment details to change at all until you have closed on the new mortgage.
Reach out to me to get started today!
Best Home Features for Pets
Creating a pet-friendly home involves considering the comfort, safety, and well-being of your furry friends. Here are some home features to consider:
- Durable Flooring: Choose scratch-resistant and easy-to-clean flooring like hardwood, laminate, or more durable tile options. Avoid carpets if possible, or choose pet-friendly carpeting that’s stain-resistant.
- Pet-Friendly Fabrics: Choose furniture and upholstery made from pet-friendly fabrics like leather or microfiber that are durable and easy to clean. This helps in case of accidents or shedding.
- Pet-Safe Plants: Select indoor plants that are non-toxic to pets, such as spider plants, Boston ferns, or palms. Keep toxic plants out of reach or opt for artificial plants.
- Designated Pet Areas: Create designated spaces for your pets, such as a cozy corner with a bed or a built-in nook under the stairs. This gives them a sense of security and their own space.
- Easy Access to Outdoors: Install a pet door or create a pet-friendly exit to the yard, allowing your pets to go outside and play freely.
- Secure Fencing: Ensure your yard has a secure fence to prevent your pets from wandering off and to keep them safe from potential dangers.
- Built-in Feeding Stations: Incorporate built-in feeding stations or cabinets to store pet food and supplies, keeping them organized and out of reach from curious pets.
- Wash Station or Mudroom: Include a designated area near the entrance for cleaning muddy paws or bathing your pets, with easy-to-clean surfaces and storage for grooming supplies.
- Integrated Pet Technology: Consider installing smart pet feeders, water fountains, or cameras to monitor your pets remotely and ensure they are comfortable and well-fed when you’re away.
By incorporating these features into your home design, you can create a safe, comfortable, and enjoyable environment for both you and your pets.
Economic Insights from Dr. Sherry Cooper
Canadian inflation has fallen considerably for the past four months. Excluding shelter, inflation is a mere 1.6%. While the job market was relatively strong in April, the unemployment rate continues to rise.
Job growth, though strong, is not keeping up with the surge in working-age immigrants. GDP growth was likely about 2.3% in the first quarter, but per capita GDP is falling. Moreover, economic activity will likely slow to about 1.0% in the current quarter, posting only 1.2% for the year, well below the neutral rate.
Monetary policy remains quite restrictive. Homeowners facing more renewals see their monthly payments rise sharply. The housing market has slowed, with new listings surging and buyers waiting for the central bank to cut interest rates. The odds are about even that the Bank of Canada will begin cutting the overnight policy rate in June versus July. It can’t be soon enough for the housing industry.
GDP growth is tracking below the Bank of Canada’s most recent forecast. And on a per capita basis, it looks even worse. The weakness in economic activity should persist in the coming months as household and business owners increasingly feel the pinch of earlier rate hikes. Moreover, the federal government’s plan to reduce the temporary resident population over the next two-plus years should hold back the expansion.
The Bank of Canada should begin to cut the overnight policy rate in June. If it is delayed, there is a risk of a much steeper slowdown than forecasted.
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