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Tired of Renting? Time to strike out on your own? For many people buying their first home is one of the biggest investments they’ll ever make. The mortgage, no doubt, the single biggest debt. Little wonder many young people fear to take the big step. Certified Mortgage Brokers aim to make it easier for you to make these big decisions by helping you to understand the various options available to you.
Your certified mortgage broker will
We’ll help you to make informed decisions so that you can enjoy the process of buying your first home without the stress.
There are many reasons why you may choose to refinance your mortgage. With equity in your home and the financial means to pay off a bigger mortgage, refinancing could secure you the funds to pay for renovations or to invest in property. Perhaps you want to pay for your child’s education or consolidate expensive unsecured debt. It may be that you want to take advantage of a lower interest rate.
Don’t let penalty charges put you off. Sometimes it is cheaper to pay the penalties and refinance your mortgage. In evaluating your options, you should consider the following;
Homeowners should evaluate their mortgages annually. Failure to do so could result in the payment of unnecessarily high interest which could run into thousands of dollars over the term. Sometimes it is better to pay off your current mortgage and all the costs, including penalties, and negotiate a new mortgage.
With the right advice, you can reduce your repayments when you refinance or you could use the equity in your home for investments, and save the tax on the interest portion of the repayments.
You can access up to 90% of the equity in your home when you refinance your mortgage. Whether you’re taking advantage of lower interest rates or consolidating debt, refinancing your mortgage can save you money. Even so, it is important to balance the costs and benefits before you sign on the dotted line.
When your mortgage comes up for renewal, whatever the term it is time to pay it off or sign up a new contract. Many people fail to take advantage of the renewal period to negotiate better terms and conditions. They simply sign and return the renewal form. This is a mistake.
Renewal is the perfect time to consider whether the mortgage still fits in with your financial and lifestyle requirements. This is when you need to consider the term of your mortgage, the interest rate you should be paying and whether you want to continue with the same lender or find a new one.
In signing off the renewal notice without doing your research or negotiating better rates you could be leaving thousands of dollars on the table. Up to 50% of mortgage holders fail to renegotiate at renewal time.
Make the best of the opportunity by contacting your mortgage broker three months before the renewal period comes up. This will give him time to negotiate the best deal for you and to find terms and conditions that suit your current and future financial plans. By the time the renewal notice shows up in your mailbox, you’ll know exactly what route you plan to take.
Interest rate savings can help you to pay off the principal on your mortgage at an earlier date. Don’t miss the opportunity to align your mortgage with your current lifestyle and with the realities of the housing market.
When you sign for a new term you are signing for a new mortgage contract.
Recent changes in the Canadian mortgage industry have left many Canadians giving up their dreams of owning their own homes. If you’ve been turned down for a traditional mortgage, it does not have to be the end of the road when it comes to financing.
There are many private lenders out there who are willing to give mortgages to people who would not qualify for a mortgage through traditional lenders. Private lenders are not bound by the same stringent rules as the banks. They are people and institutions that have surplus cash and want to lend it to others to earn interest.
Private lenders are more interested in the value of the property that will serve as collateral than they are in the credit score of the borrower. They offer many people a second chance.
Private lenders are more approachable than the traditional banks. They offer personalised service and will tailor make the mortgage to suit your lifestyle. The application process is also quicker and easier than the process adopted by the traditional banks.
Private mortgages are short-term mortgages, typically lasting one to three years. They are interest-only loans. When you borrow from a private lender you should have an exit plan, which your broker can help you to develop
A second mortgage, also known as a home equity loan, is an excellent way to secure a large sum of money using the equity that you have built in your home. A second mortgage is a mortgage taken against a property that already has a mortgage registered against it.
Before you apply for a second mortgage, it is essential that you understand the costs and the risks involved. Your mortgage broker is qualified to help you to balance the costs and the benefits of taking a second mortgage. A second mortgage is always more expensive than the first. This is because the second lender carries more risk than the first. In case of default and foreclosure, the proceeds cover the first mortgage before the second. So, the second mortgage holder runs the risk of not recovering his full loan.
Despite the additional cost, a secured loan is considerably less expensive than an unsecured loan. It can be a godsend when emergency funding is required. It is also a great way to consolidate more expensive debt such as credit card debt and personal loans. A second mortgage also opens opportunities for investment or for upgrading your home. When you negotiate a second mortgage you can borrow up to 90% of the equity in your home.
If you’re certain that you can afford a second mortgage and if it fits in with your financial planning. We can help you to find the best terms and conditions from our portfolio of lenders.
More than 15% of Canadian residents are now self-employed. If you’re one of them, qualifying for a mortgage may be more difficult and more expensive than it is for your formally employed neighbour. Many mortgage providers consider the self-employed a higher risk. They typically ask for at least two years proof of income before they will even consider a mortgage.
If you’re self-employed you probably write off allowable expenses in a bid to reduce taxable income. This makes perfect sense, but it could negatively affect the size of the mortgage for which you will qualify. This is because lenders will use your debt to earnings ratio to calculate how much you can afford to pay. Fortunately, there are some lenders who will write back some of the allowable expenses.
If you’re self-employed and planning to buy property, forward planning will stand you in good stead. Make sure that all your documentation is in order. Look after your credit score, and pay off as many of your debts as you can before applying for a mortgage. Consider your options when it comes to allowable expenses. Maximise your earnings and hold back on large optional purchases.
Save for a down payment. The higher the down payment you make the lower the risk to the mortgage provider. Find yourself a good mortgage broker. A good broker will ensure that you have all the necessary paperwork in place. He can also partner you with a private mortgage provider that specialises in self-employed mortgages if the traditional banks are not interested.
Many people dream of building their own home rather than moving into one that has been tailored to someone else’s lifestyle. If this is your dream then construction financing is the product for you. Before you consider construction financing you should be aware that you will need to put in a little more effort and finance.
The down payment required on construction financing is often as much as 25% to 35%. There are a lot of important decisions to make when constructing your own home. Where to build and which construction company to employ to do the task are crucial to the future of your home, and to ensure that your money is well spent.
Before you apply for a construction loan, also known as an own build mortgage, you’ll need to prepare. The lender will require construction plans and your contract with the construction company. They will also require an estimate of costs. If you’re building on the vacant lot, you’ll need the deed of sale and municipal approval for the planned construction.
Lenders will also require planned timeframes, and may impose limits on those times. You should ensure that you have adequate funding to correct any mishaps or delays that can happen along the way. A rule of thumb is to have around 15% set aside for any contingency requirements.
Building your own home can be risky for both you and the lender, but it is exciting to choose all of your own fittings and finishes. With careful planning and financial advice, you can mitigate the risks.
The Home Equity Line of Credit HELOC is a very popular form of secured credit in the Canadian mortgage market. It is flexible financing at its best. When applying for a HELOC you can access as much as 65% of the equity in your home. When you are granted a HELOC, the full amount for which you qualify is immediately available to you, but you pay interest only on the amount that you use.
Most HELOCs are interest-only loans and you can pay back the principal whenever it suits you. The principal amount paid back is then available for you to take again as you require it. Interest on a HELOC is calculated on a daily basis taking account of your deposits and withdrawals.
HELOCs offer homeowners easy to access funds, at an interest rate that is usually lower than that paid on unsecured debt. You can pay the loan whenever you like with no penalties incurred.
On the downside, a HELOC could get you into trouble if you are not disciplined. It gives you access to a large amount of money that could tempt you to spend. You also do not have to pay back the principal. Unless you have a budget to pay back a minimum amount every month you may be tempted to continue to pay just the interest on the loan. If you decide to move your mortgage you will have to pay back the HELOC in full.
HELOC’s offer homeowners easy access to money but the must be used with caution.
…by providing award winning customer service to each and every single client.
Toronto Mortgage Brokerage are Toronto’s best home mortgage brokers and reliable professionals in all of Canada. We provide superior service to our clients and offer competitive mortgage rates that you won’t be able to find anywhere else.
Our experts will consult you on the best options with regards to all of your needs. By analyzing your financial situation we provide unique solutions and suitable rates whether you are looking to get a first mortgage, second mortgage, renewals and refinancing, construction financing, secured lines or anything else.
The expertise and knowledge of our brokers will save you time by eliminating the need to go through confusing information and complex terms by yourself. With our guidance you will have more quality options and will be able to make the smartest decision that suits your needs.
We put the interests of your clients above all else when negotiating and managing processes with real estate agents, credit agencies, lenders, lawyers and everyone in between to guarantee your satisfaction. In addition, we’ve built an extensive network of relationships in the business which enables us to find the best terms on your behalf.
|HELOC||4.2% (prime + 0.25%)|
First National Financial
Street Capital Bank
|5 year variable||1.7% (prime - 0.35%)|
|3 year variable||2.6% (prime + 0.15%)|
|Line of Credit||Starting at 3.00%|
|Equity Loans||Starting at 5.99%|
|Private Mortgages||Starting at 5.99%|
...pick the one thats right for you.
I had to port a mortgage to a new condo, Leon had excellent knowledge to get me through the approval process. When the bank made an error, Leon was quick to contact them to make sure everything was done right and on time. He is very professional and courteous and I recommend his service to anyone who wishes to apply for a mortgage.
Giving them 5/5 stars. Massoud helped me with my mortgage and he never missed a beat. He made the process very straightforward as a first time home buyer. Shopped around for other mortgages but he was always the first to get things for me. Highly recommend him
I was looking to renew my mortgage and my previous lender was less than willing to do anything to keep my business. So I started to look for another brokerage to do business with and Certified Mortgage Broker stood out purely based on my interactions with Massoud. Massoud was professional and clearly had a keen sense of customer service; which I make a high priority when doing business with anyone since I'm in the customer service business myself. Peter rolled out the red carpet for me, walked me through my options, inquired about my plans with my current property, give me opinions and facts about rentals in the area, sales/purchases. In some respects he gave me more information about real estate than my real estate agent has!
Selling and buying a home is a stressful experience and Leon with CMB in North York took all of the stress out of arranging the financing. He was very professional and clear about what I needed to provide to him. He used this information to arrange the best mortgage option on our new home, arranged the bridge loan to cover the closing period differential, and arranged closing out the mortgage with the previous lender.. Our experience with Leon is far better than the local in-person brokers that we contacted previously and Leon has helped us with a mortgage renewal in the past with the same excellent experience.
Leon returned my called from a missed call within 15 minutes of my call and I left no message. Leon and his team were fantastic. Even with the money issues we had Leon made me feel important and valued as a person.
History attests to the fact that homeownership is a pretty good investment. But sometimes, it can be a money-losing project. You know the housing crash? You don’t want to experience what the victims did. Know the basics about mortgage and how you can make sure it will be a win-win deal for your family.
Mortgage is a financial transaction wherein a debtor charges his real or personal property to a creditor as a security for a debt. This transaction is most common in property purchases. The property is returned to the debtor on the condition that he/she pays the debt within a given period of time.
In more simple terms, a mortgage is a loan that one takes to finance the purchase of a home. It can be the biggest debt one will incur in his lifetime. Since most mortgages are paid full in 15 – 30 years of monthly payments, it pays to get a clear understanding of how a mortgage works.
The down payment is the amount you are required to pay upfront. That amount is deducted from the total mortgage amount. In Canada, a loan amount less than or equal to $500,000 has a down payment equivalent to 5% of that amount. For instance, a $400,000 loan has a down payment of $20,000. Loans more than $500,000 have down payments subject to this computation:
– $500,000 x 5% = 25,000
– Any portion above $500,000 is multiplied to 10% and then added to 25,000. For a $600,000 loan, the total down payment will be $25,000 + (100,000 x 10%) $10,000 = $35,000.
Interest rates are either fixed or variable. If you want everything to remain constant throughout the amortization period, go for a fixed rate. This is useful for those who want to generate a certain level of financial security and make budgeting predictable in the coming 20 or 25 years.
On the other hand, choosing a variable rate allows a creditor to be flexible in terms of payments. The rates may change down the road, but you can’t be sure if rate changes will give you savings or make you lose money.
A fixed mortgage rate may be good for you if you foresee budget to be tight in the coming years and if you are the kind who doesn’t like taking risks. A fixed rate will also shield you from financial pressures should the interest rate abruptly go up over your mortgage term. Constancy is the key there. If you don’t like changes, especially sudden ones, have a mortgage with a fixed rate.
Some prefer variability over constancy and they are good with having with a variable rate. What does this mean? It appears that these individuals are comfortable with the idea of an increase in payments over the term. The advantage is: the central bank may declare lowering the rate during the mortgage’s term. That means lower payments for everyone!
Get familiar with two terms: amortization period and mortgage term.
– Amortization period – the period within which you are required to pay your mortgage in full.
– Mortgage Term – the period within which a current rate remains constant. After a mortgage term, another rate may be applied with its corresponding mortgage term.
After the end of the mortgage term, say five years, you will be allowed to negotiate for a lower rate for paying the rest of your mortgage payments. A longer amortization period may not be advisable since you will incur a higher interest rate for that. But some prefer a longer amortization period because monthly payments are lower compared to a shorter amortization period.
Make sure that you go through the preapproval stage within which you set a time to talk to a financial institution about your qualifications. Important items to talk about are how much you should borrow and at what interest rate it is affordable for you.
This step can be beneficial in many ways. It will save you time getting your mortgage approved and will make you see how much it is your institution is willing to lend you. Further, it gives the opportunity of being able to lock-in an interest rate. When the interest rate goes up during the acquisition of your mortgage, your locked-in interest rate will be unaffected. If the interest rate goes down, you are entitled to get your mortgage at the lower rate.
You also have fixed and variable for payment options. For a fixed payment, the monthly payments are constant as the rate is constant through the term. Changes in the interest rates are immaterial. In contrast, variable payments can cause changes in monthly payments depending on the interest rate changes determined by the Canadian Central Bank.
Tip: Mortgages with variable rates can be also be further classified as “convertible”. A convertible variable rate allows the creditor to make a shift to a fixed rate within the mortgage term.
A couple thinks it’s time to move to a larger home. Examining the family’s resources, they determined they can pay up to $2000 for monthly payments. The couple’s combined monthly incomes total $100,000/yr. They estimated heating cost to be at $350/mo and property taxes at $250/mo. Car loan payments is $500/mo. The home’s estimated value is placed at $350,000.
They entered these data on a mortgage qualifier online calculator. With 4.5% as interest rate, the calculator showed a down payment of $25,000 and a monthly payment of $1,848 (this includes insurance due to the down payment being less that 20% of the home value). Amortization period is 25 years and mortgage term is 5 years.
Study the Home Buyers Plan of the government. If you are a first-time homebuyer, you may take $25,000 from your RRSP (Registered Retirement Savings Plan) to pay part or the entire down payment. Should you tap into your RRSP, the law requires you to pay it back within 15 years. Delinquent payment will result to tax penalties.
Royal LePage predicts a 2.5% median home sales price boost in Ottawa home prices , while fellow agency Re/Max projects a 4% increase in the nation’s capital as per each company’s respective home sale price reports. John Rogan, a broker in Ottawa with Royal LePage explained on the Rick Gibbons Show on 1310 NEWS that...
Though it might seem impossible to truly fix your credit score if you have earned yourself a less than stellar average credit rating, there is still a way to reestablish and rebuild your credit. It will not be painless and it might not be as fast as you would want it to be, but with...
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