Understanding Mortgages with Lori LaLonde: Expert Tips for Homebuyers on The Wealthy Acre Podcast
Navigating the world of mortgages can be overwhelming, especially if you’re a first-time homebuyer or exploring ways to leverage your home’s equity. Luckily, Diana Klejne sat down with mortgage expert Lori LaLonde on the latest episode of The Wealthy Acre Podcast to discuss everything you need to know about mortgages, from interest rates to creative lending options.
Meet Lori LaLonde: Your Mortgage Expert in Creston, BC
Lori LaLonde, a seasoned mortgage expert with over 25 years of experience, brings a wealth of knowledge to her role. After spending much of her career working at TD Bank, Lori transitioned to becoming an independent mortgage broker and recently moved to Creston, BC. Here, she enjoys helping local clients navigate the mortgage process, offering personalized solutions tailored to their financial situation.
By working with over 40 different lenders, Lori has the flexibility to find the best options for her clients, whether they are self-employed, first-time homebuyers, or dealing with unique financial circumstances. For Lori, it’s all about flexibility and helping clients find the right fit—ensuring they feel confident in their mortgage decisions.
Why Choose a Mortgage Broker Over a Bank?
One of the main advantages of working with a mortgage broker like Lori is the variety of options she can provide. Unlike traditional bank employees, mortgage brokers often have access to more lenders and can shop around to secure the best rates and terms. Additionally, brokers offer more flexibility in terms of working hours, making them more accessible for busy clients, even evenings and weekends.
Mortgage brokers like Lori also specialize in tailored solutions for clients with self-employment income, unique financial situations, or other challenges that might not fit the traditional bank mold. Plus, with quick response times and a simplicity in processing, they can help expedite the home-buying process, especially in today’s fast-moving real estate market.
What’s Happening with Interest Rates?
Another hot topic Diana and Lori discussed was interest rates. Lori shared that rates have been dropping recently, giving a boost to buyer confidence. For those trying to decide between fixed vs. variable rates, Lori explained that fixed rates provide stability for those with consistent incomes, while variable rates are better for those with more flexibility in their finances.
While the rates have dropped by about 2% since last year, Lori did caution that we may not return to the ultra-low rates seen during the COVID era. However, the downward trend is a positive sign for homebuyers.
Key Mortgage Insights
Lori offered a variety of helpful tips that every homebuyer should know:
- First-Time Homebuyer Programs: There are several tax exemptions and savings programs available, including options that allow you to withdraw from RRSPs for your down payment.
- Down Payment Sources: With rising housing prices, many buyers are getting help from family or using inheritance money to cover larger down payments.
- Pre-Approval Process: Getting pre-approved before house hunting is key to understanding your budget, aligning with loan requirements, and speeding up the process.
Creative Lending Options for Unique Situations
Sometimes traditional lending options just don’t fit the bill. That’s where creative lending options come into play. Lori highlighted a key advantage in today’s mortgage market: “We can transfer mortgages at contract rate now, meaning the street test doesn’t apply.” This is a game-changer for many buyers, as it allows for smoother and faster transitions when securing a mortgage, without the usual restrictions tied to the property or market conditions. It’s a valuable tool for those who might have faced challenges in securing a loan in the past.
Lori highlighted B lenders and private lending as great alternatives for those who may not qualify for a bank loan. These options offer flexibility for people who have faced challenges like health issues or financial setbacks.
Refinancing and Home Equity: Unlocking Opportunities
For homeowners considering refinancing, Lori shared that you can access up to 80% of your home’s equity to fund renovations or even buy another property. Programs are now available that allow access to up to 90% of equity, especially for home projects like adding a suite or carriage house.
Lori also discussed the benefits of a Home Equity Line of Credit (HELOC), which can be a fantastic tool for financing home improvements, rental properties, or emergencies.
Paying Off Your Mortgage Faster
One simple yet powerful tip that Lori shared was to switch to bi-weekly accelerated payments. This change can shave off years from your mortgage, significantly reducing interest costs over time. Instead of making monthly payments, you’ll make bi-weekly payments—effectively making one extra payment a year. This small adjustment could save you thousands in interest and help you pay off your mortgage faster.
Final Thoughts
Whether you’re a first-time buyer, refinancing, or exploring creative lending options, Lori’s insights offer valuable guidance on navigating the mortgage landscape. With a keen focus on finding the best solution for each unique situation, Lori is an invaluable resource for anyone in the Creston, BC area looking to make informed mortgage decisions.
Call: 604.329.9000
Email: [email protected]
Mortgage Financing in Northern BC,
Okanagan, Kootenays, & Vancouver
For more valuable insights on everything from real estate to current events, finances, and the Kootenay lifestyle, be sure to tune in to The Wealthy Acre Podcast. And if you have something exciting to share, we’d love to have you as a guest on the show!
📞 Call: 604-789-8202
📧 Email: [email protected]
