Why Use The HomeHappy Team? Refinancing Guide

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THE TEAM

Mike Lloyd, Head Honcho of Happiness

Helping people attain the goal of Homeownership is a fantastically rewarding part of Michael's role as the Team Leader of the HomeHappy Team. With the extensive lending experience gained from his various levels of lending management with local Credit Unions and large Trust Companies, Michael found his niche in 1999 becoming an Independent Mortgage Broker and never looked back. "Offering only one company's products didn't sit well with me ... Brokering meant I could use the entire market to find just the right product and lender for each client." Since starting the Canadian Mortgage Experts team in 2011 Michael has led the franchise to be the largest (No 1 since joining) within Dominion Lending Centres ... Canada's largest Mortgage Originator. This means more opportunities for exclusive products for our HomeHappy clients as well as unique programs to help them pay off their mortgage faster.

Annette Durante, Director of Business Relations

So what is business happiness you ask? Well... it's a blend of client relations and business development and making sure its synergized and enjoyable! Annette began her Sales & Marketing career in the Broadcast Industry; after 25 years and several achievements including that of accredited Certified Sales Executive (CSE) she's also (2015) a Licensed Mortgage Broker (UBC/Sauder School of Business) and IDFA Certified Divorce Financial Analyst (2019). Annette enjoys bringing like-minded effective business people together in the Mortgage Lending Business. Her ability to understand the needs of people contributes to her success, she has a reputation for professional excellence that resonates with her peers, clients and the lending community. Annette was born and raised in Vancouver, enjoys golf, travel and spending quality time with friends and family including the four-legged kind. She is committed to ongoing personal growth, helping animals local and afar in

need and has been a proud member of the HomeHappy Team since 2015.

Tasha McKenzie, Client/Lender Happiness Specialist

Tasha joined the mortgage industry in 2015 specializing in the unique world of Private and Alternative Lending, she has since expanded her area of expertise to traditional mortgages. Tasha focuses her time and efforts on staying current with the changing market including sourcing niche programs in order to best serve our clients. She also takes huge satisfaction making peoples dreams of home ownership a reality; she recognizes and embraces that every person's situation is unique, and in today's complicated mortgage world her knowledge and dedication helping those from all spectrums is more important than ever. When not helping Happy Clients, Tasha spends her "spare time" (like Mom's really have such a thing) dedicating herself to her daughter in her creative world of dance, volunteering with her sons Air Cadet program and like all the other HomeHappy team members caring for her "fur babies".

Louise Lloyd, Director of Ongoing Happiness

Louise does the things behind the scenes that allow us to take better care of you! Her role is to maintain our back of "happy" house business. Louise uses her keen artistic eye and passion for detail to support Michael and the team. Her management experience stems from years in Restaurant & Retail. Louise enjoys outdoor activities, swimming, art, travel, and playing field hockey. Like all other team members, proud Mom to her 2 fur babies.

Here is what to consider

Lending experience

The HomeHappy Team alone has over 55 years combined lending experience. We have worked on all types of mortgages and have the ability to find the best solution every time. You get a highly experienced expert team working on your mortgage, both before completion and after.

The Team Approach

We have 4 people on our team for a reason, we want your experience to be the best ever. From the latest market research, to industry leading mortgage underwriting, to the best in communication both during the mortgage process and after. We are always investing in helping you get mortgage free, sooner.

Continuing our Education and Technology

Everyone on the team participates in ongoing training to further our skills in lending, fraud prevention, technology, communications and other areas. When you speak to one of our team members, you can rest assured they take the time to make themselves better. We are always looking for ways to improve our ability to keep our clients informed.

The DLC and CME Advantage

We are part of the largest independent mortgage brokerage house in Canada. Dominion Lending Centres also completes over $13 billion in mortgages per year, more than any other brokerage, so lenders want to keep us happy They offer us their best programs and pricing to do that. DLC Canadian Mortgage Experts is Dominion Lending's #1 franchise in Canada for the volume of mortgages funded across Canada. What does that mean for you? Lenders come to us to offer their best packages & products first.

Client Satisfaction

We are a referral based business. Over 80% of our clients are referred by someone who worked with us previously. We strive to keep this number and improve it, it is the ultimate compliment to us, as it means you trusted us enough to refer your friends and family for their mortgages.

Refinancing 101

Refinancing is the process of obtaining a new mortgage in an effort to do the following 4 things:

1 Take cash out of your home for large purchases

2 Lower your interest rates 3 Reduce monthly payments

4

Reasons

Why

4 Debt consolidations

The content of this document is provided for information purposes only and is subject to change at any time. O.A.C , E&OE.

What is Refinancing?

Most people refinance when they have equity in their home, which is the difference between the amount owed on the mortgage and the value of the home. As people continue to make more money, they are able to pay all their bills on time. This increases their credit score, and with this increase in credit comes the ability to procure loans at lower rates. A lower interest rate can have a profound effect on monthly payments, potentially saving you hundreds of dollars a month.

Many people also refinance in order to obtain money for large purchases or consolidate debt from unexpected issues (health or hard times). With sufficient equity, you are able to access funds to make large purchases such as a new car, home renovations, or perhaps even as a down payment for a rental property.

How do I Refinance?

It's simple! Contact The HomeHappy Team and we will discuss the options available to you. We'll check to see if there is a current deal that can benefit you. If there isn't a deal available at that time, we can advise you on the next best steps in order to get you refinanced.

When Can I Refinance?

Even though each lender and their terms are different, they usually require borrowers to maintain their original mortgage for at least 12 months before they are able to refinance. Therefore, it is in the best interest of the borrower to check with The HomeHappy Team to review all restrictions and details.

The content of this document is provided for information purposes only and is subject to change at any time. O.A.C , E&OE.

What are the Risks?

One of the major risks of Refinancing your home comes from possible penalties you may incur as a result of paying out your existing mortgage before the term due date. In most mortgage agreements there is a provision that allows the mortgage company to charge you a penalty for doing this. Before finalizing the agreement to refinance, make sure it covers the penalty and is still worthwhile. We can run the numbers for you to make sure it makes sense for your situation.

Cost of Refinancing

Item:

Legal Fees Title Insurance Penalty

Cost:

$700 to $900 $100 to $200 *Not always applicable 3 Months Interest or IRD*

*IRD: Interest rate differential penalty. Talk to your Mortgage Expert to discuss how your current mortgage will be affected.

In an era of tight credit, standards vary. Borrowers with good credit scores, who have been on the job for at least two years and aren't self-employed, and have more than 25% equity, are likely to have the easiest time refinancing.

The content of this document is provided for information purposes only and is subject to change at any time. O.A.C , E&OE.

Penalties

Why do you Pay a Penalty?

This is a great question. If you chose a closed mortgage (majority of mortgages are this type) you are locked into a contract term. This is similar to canceling your cell phone contract early. The cell phone provider will charge you a penalty to cancel your contract due to lost revenues, and so will your lender. If you are trying to break the contract early for any reason, they are losing revenue. Therefore, the lenders try to recoup some of their losses before releasing the contract.

You are selling your house and not porting

the mortgage or having it assumed.

1

2 You want to Refinance

Why you would pay a Penalty

When do you Pay a Penalty

There are two main scenarios that would cause a lender to charge you a penalty. Both of them are based around you buying out your current mortgage term early. Scenario number one would be you selling your house and not porting it or having it assumed by the new buyer. This means you don't move your current mortgage to your new property. Scenario number two would be applying for refinancing before your term was up. Since both of these scenarios attempt to break your contract, you would be charged a penalty based on your monthly payments and your interest rate, explained on the next page.

The content of this document is provided for information purposes only and is subject to change at any time. O.A.C , E&OE.

Big Banks charge penalties in bizarre and expensive ways. Our job is to educate and save you as much money as possible.

Variable Rate Penalty (most cases):

3 Month Interest Penalty = Current Rate / 12 * 3

1 2

Penalty Types

Closed Fixed Rate Penalty:

3 Month Interest Mortgage Balance * Current Rate / 12 * 3 Or Interest Rate Differential (IRD) This varies from lender to lender.

Types of Penalties

The penalty varies and depends if you are in a fixed or variable rate mortgage.. If you are locked into a fixed rate you may be charged an Interest Rate Differential (IRD) or 3 month interest penalty. Now here is the tricky part, because this all depends on if the rate you locked into is higher or lower than the current rates. If your locked in rate is lower than the current rates you will be charged with an IRD, and if your rate is higher you will be charged with a 3 month penalty

IRD's are extremely complex. Don't worry about figuring our your IRD, talk to us, your Mortgage Experts.

The content of this document is provided for information purposes only and is subject to change at any time. O.A.C , E&OE.

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