Haventree Bank – Canada’s Newest Bank

Latest News David Cooke 12 Aug

Lately , we have been hearing a lot in the news about mortgage deferrals. Putting off mortgage payments during the pandemic and then starting the payments up again when people are back at work. This actually isn’t a new idea,  Haventree Bank have been doing this since they first opened in 2018. Haventree is a different sort of bank. They cater self employed people who can’t easily proof their income and to people who have been through a tough time and and getting back on their feet.

An important part of the bank’s business plan is to ensure that their borrowers do not get themselves into a situation where they would have to default on their mortgage. It’s an idea brought over from Genworth Canada , one of Canada’s private mortgage default insurers to Haventree. The idea is that if there’s a sudden change in your situation, you need help to get through this difficult period and once it’s over you will be able to carry on with your payments and keep your home.

3 Ways the Bank keeps you in your home

How do they do this?

Canada's Newest Bank 1- forbearance – it’s a fancy word for mortgage deferral. If a borrower has to stop work due to illness, is laid off, the mortgage payments are stopped in order for you to get back on your feet.

2- If you lose your job, they will offer you a job search service through a 3rd party who will help you prepare your resume and help you to get a new job quickly.

3- Encompass Home Warranty – If you are using Haventree Bank for your mortgage you often do not have a large amount of money tucked away for emergencies. Haventree knows this and knows how much emergency repairs can cost. They offer , free of charge, a home warranty insurance that covers heating, cooling , electrical and plumbing systems repairs. Your hot water tank breaks down on a Sunday night and you need to call a plumber?  Weekend premium charges and the cost of a new tank will set you back around $1000.  Now, with Encompass, you pay a $50 deductible for using the service. If your furnace breaks down or a pipe bursts, you’re covered.

By making things easier for their borrowers, the bank lowers the number of defaulting mortgages and foreclosures which is good business. Who knew that being nice to your clients would end up saving money and making a bank look like the good guys?

If you have a challenging situation , contact me . Haventree or one of our other lenders may have a solution for you.

10 Weeks Down and the Money is Running Out

Latest News David Cooke 21 May

10 Weeks Down and the Money is Running Out

We all know that you should keep 3-6 months of savings for an emergency.  Money experts encourage us to do this in case something unforeseen happens. An Ipsos Reid survey in the fall of 2019 found that 48% of respondents were $200 away from financial insolvency.  How did Canadians get into this situation. In the 1970’s and 80’s we were tied with Japan at about 10% of our yearly earnings. Now we save about 4.1% . How did this happen?  The cost of housing has gone up over the past few decades. Housing used to take up30- 35% of annual gross income. It now consumes 45-50% of Canadian’s gross annual income. Another problem is spending beyond your means. Until about 5 years ago, Canadians didn’t believe in “keeping up with the Joneses”. We bought items or took vacations when we had saved enough to afford them. Now we buy on credit to receive instant gratification.

yycmortgage Now we are 10 weeks into a pandemic. Many people have not been working or are on reduced salaries. If you found ends hard to meet before they are even harder now. Federal and provincial programs are helping but some people including seniors living on pensions are falling through the cracks.

How can a mortgage professional help? We spent the first 2 weeks guiding home owners through the mortgage payment deferral process. 500,000 homeowners took advantage of the programs offered by the banks and other lenders. Now , they need money to put food on the table , pay utilities , and other expenses.

There are a number of things that we can help you to do.

Refinance your home

If you have enough equity , we can refinance  your home and pull out a lump sum that you can use to live on and pay your bills. If you have over 20% equity in your home this is a possibility. We can also extend your amortization to 30 years from 25 which will lover our payments. Worried about having to pay your mortgage for an extra 5 years? When this is over you can just take advantage of the pre-payment privileges on your mortgage and increase your monthly payments so that you can pay it off in 25 years.

Consolidate your Debts

We can take your present mortgage and either refinance to pay off all your higher interest debts or set up a Home Equity Line of Credit (HELOC) . This is a line of credit secured against your home. Because it’s secured the interest rate is low. Presently most lenders are offering 3.45%  on helocs. Lowering your payments can help you to keep from over-extending your credit.

Lower your other Monthly Payments

If you are leasing a car or have a car loan, we have a division at Dominion Lending Centres who can take your present car loan/lease and lower the payments. An extra $300 a month during these crazy times might be all you need to keep your head above water.

Early Renewal of your Existing Mortgage

Depending on when you started your mortgage you may be able to get a more competitive rate now which will save you 1000’s of dollars over the next term. Let me see if paying a payout penalty and starting your mortgage renewal early is a good option for you.

Government Programs

You may not be aware of all the government programs that have been introduced over the past 3 months. Call me and we can look at what programs you may qualify for.

You can contact David Cooke, your Calgary mortgage broker, at 403-836-1201