MORTGAGE ADVICE SERVICES
GET OFF ON THE RIGHT FOOT IN YOUR HOME BUYING JOURNEY.
If you are a first-time homebuyer, getting professional mortgage advice is a great place to start. We specialize in the kind of education that can help get new homebuyers off to a great start! Although mortgage debt is ‘smart’ debt, buying your first home is a huge financial decision and there is a lot to think about. It’s one of the most important financial decisions that most Canadians will make in their lifetime.
You want to take advantage of today’s low rate environment but it can be overwhelming to sort through all of the options out there. Our Mortgage Consultant will help get you the right combination of mortgage features, privileges and rate that is best matched to your needs. The right mortgage goes beyond just the rate, it is important to also consider term, refinancing penalties, prepayment options restrictions, and fees.
Determine what you can afford. Before you start looking for a home and long before you consider putting an offer on one, let us help you determine how much home you can comfortably afford. Having a realistic budget to start will bring you confidence, knowing that you are not over extending budget. Remember that home ownership involves costs beyond the monthly mortgage payment such at insurance, taxes, utility bills, home maintenance.
Be sure to talk to us about getting pre-approved, so you’ll get your interest rate guaranteed for a set period, typically 90 to 120 days.
Downpayment options. Down payment is one of your most important considerations before you look to purchase your new home. If you’re in the “saving up” stage of preparing for home ownership, this is a great time to meet with us so we can discuss your down payment options. In most cases you want to save five percent of the purchase price.
There are a few options to consider for first-time homebuyers who may have smaller amounts to start:
- The Home Buyers’ Plan (HBP) – first-time homebuyers can withdraw individually $25,000 or $50,000 with a spouse tax-free from their RRSPs, provided they adhere to the repayment plan.
- Gifted down payment from a parent or blood relative – can be a source of funds as long as the homebuyer receives in writing that they are not required to pay the money back at any time.
- Start off small – the dream house may be priced too high, so a starter home might be the right option for a first-time homebuyer. A smaller home or maybe a house just outside of the expensive area will help get a foot in the door. The homebuyer can take advantage of the low interest rates to pay off the home quicker and use the equity from the first home to buy the dream home later.
Build a team of professionals. We’d be happy to help you build a strong away team so that all aspects of your home buying experience are efficient and professional. Your team will include a realtor, lawyer, and a home inspector.
Plan for closing costs. There are additional costs that come with buying a home so you’ll need to have some extra funds set aside to cover these costs. Generally, you can expect to pay between 1.5% and 4% of the home’s selling price in total closing costs. We can outline all of your closing costs so you won’t be caught by surprise.
We will also provide you strategies to help you pay your mortgage off faster and shave thousands off interest costs.
There’s so much to consider. Work with us today so you can get into the market and start your wealth building with smart debt! We’ll help you get off on the right foot in your home buying journey.
We look forward to helping you realize your dream of homeownership!
YOUR FIRST MOVE SHOULD BE TO LOOK INTO YOUR MORTGAGE OPTIONS!
Do you want to create the perfect house that fits your lifestyle? Or does your family need more room to grow? Call us today for a free analysis of what you can afford. Your dream home may be more affordable than you think!
When you are ready to sell your home and buy a new one, your first move should be to look into your mortgage options. If you will need a bigger mortgage, your options will include bringing your mortgage with you if it is portable. You can often “blend” your current mortgage rate with the mortgage rate on the additional funds you need.
With interest rates today still hovering at historic lows, you might want to consider breaking your current mortgage and getting a new one for the total amount you need. To break your mortgage, your lender typically has the right to charge a penalty based on the greater of three months’ interest or the interest rate differential (IRD), which is essentially the difference between your old rate and current rates for your remaining term.
Lenders can calculate IRD differently; you should always get the actual penalty from your lender. If you are in a term longer than five years and you have passed the fifth year, the three-month penalty applies and not the IRD so this may make breaking your mortgage more appealing.
You’ll want to compare your new blend/extend rate with the rate you’d get with a new mortgage. Of course, the exact terms and conditions of your current mortgage need to be examined closely to determine if there are other factors to consider.
It’s worth a professional mortgage analysis to determine which option is the most beneficial to you. There’s no cost or obligation. We’re up-to-date on current rates and all of the new opportunities available – from a wide range of lenders – so we can help you with all of your mortgage strategies for purchasing your next home.
ARE YOU RECOGNIZING THE INVESTMENT POTENTIAL AND LIFESTYLE BENEFITS OF A VACATION HOME?
Dreaming of the lake and relaxing afternoons on the dock or a cozy fire in your ski chalet? Or perhaps you need to expand your family’s horizons with a second property while your children attend university.
The appeal of a vacation property is often as much economic as it is emotional: an investment that makes sound financial sense can also provide you and your family with a lifetime’s worth of memories. Bringing this investment within reach are the excellent financing options available for Canadians purchasing vacation properties.
We can introduce you to several financing options from a wide range of lenders. There are several different routes you can take: you may want to use the equity in your principal residence to finance your vacation property or second home, or you may opt to take out a secured line of credit or second mortgage on your principal home. You could also consider financing the vacation property on its own merits. Most lenders look for a well-built property, in a good location, and with year-round access.
Not sure if a vacation or second home is within reach? Give us a call so we can help!
DON’T RENEW YOUR MORTGAGE WITH YOUR EYES CLOSED!
At renewal, you can renegotiate everything pertaining to your mortgage – amortization, rate, term etc. with no penalties. Your lender will be interested in seeing you come back, but it’s important to investigate your options and make sure you are getting the best possible deal.
A major financial institution’s consumer debt survey found two-thirds (65%) of homeowners did not compare mortgages from more than one lender when they last renewed.* In fact, 20% stayed with their current lender after maturity and did not negotiate; several banks will auto-renew you at posted rates versus fully discounted rates, which can be a difference of hundreds of dollars a month. Don’t renew your mortgage with your eyes closed!
Mortgage renewal is also an important time to decide if you should roll your high-interest credit cards and other debt into your mortgage to get one lower payment, boost your cash flow, and save on interest costs. Or perhaps it’s a good time to take some equity out for renovations, a second property or for investing.
We work for you and are in touch with a wide variety of lenders so we can always make sure you are in the best position possible. When you are six months from renewal, be sure to contact us so we can review all of your options and strategies, not just those presented by your current lender.
There are some great options out there – from a wide range of lenders; let us help you look around.
REFINANCE & SAVE
LOWER YOUR DEBT, BOOST YOUR MONTHLY CASH FLOW, AND BE MORTGAGE-FREE QUICKER.
If you’re carrying high-interest credit card debt that has caused your cash flow to slow to a trickle, you owe it to your financial future to have a conversation about how you can roll that debt into your mortgage so you can save – sometimes thousands in interest – and start building wealth. Worried about penalties? Don’t think it can make much difference? Think again. Using today’s historically low mortgage rates, you have a golden opportunity to give yourself a tremendous financial boost. By using your home equity to consolidate your debt, you can improve monthly cash flow, have one easy payment, and be mortgage-free quicker.
Make this the start of a new financial life. We’d love to help you crunch some numbers to see what kind of life you could be living! Talk to us about scheduling a free, no-obligation review of your situation. We guarantee you’ll be glad you did.
HELPING NEW CANADIANS GET A HOME OF THEIR OWN
New Canadians are making their numbers felt in the housing market, as they get settled and make the transition from renter to owner, with mortgage brokers helping to make that transition as easy as possible.
The most important considerations for new Canadians are credit history and down payment. If you are new to Canada and do not have any established credit, you can qualify for a mortgage with three months of employment history and by demonstrating credit worthiness to your lender in other ways:
- Proof of timely rent payments confirmed by your landlord (non-family member) and bank statements
- Bank statements showing pre-authorized payments for12 months for regular payments such as utilities, telephone, cable, insurance premiums, along with a bank reference letter
- A credit report from your country of origin
Even though it is not required, it is a good idea to start establishing credit in Canada as soon as you can. A down payment of five percent is the minimum, although a larger down payment may be required.
If you are a new Canadian, we can streamline the mortgage process for you, from counseling on credit, to obtaining credit references from foreign banks, to confirming foreign income. We’ll advise you on the paperwork you need to assemble to apply for a mortgage, and then present your financial history to the lender or lenders that can best meet your needs.
YOU MAY NOT FIT IN THE NEAT BOXES AT THE BANK. WE DON’T HAVE BOXES, WE HAVE SOLUTIONS!
We work with self-employed Canadians every day and understand the issues that keep you up at night. Your dreams for home ownership should not be one of them!
You already know it makes sense to go to a specialist to get the job done, similar to how you consult other expert advisors, such as lawyers, accountants or financial planners. And we work for YOU, not an institution. The more complex your mortgage situation, the more sense it makes to find an experienced mortgage professional who can customize a mortgage to meet your short-term needs and your long-term financial plan. Your home is a very important asset; make the most of it!
While there is now broad recognition that self-employed Canadians are an excellent and reliable customer group, your Mortgage Consultant will advise you how you can improve your options and get the best possible rate, for instance, through any documentation to prove income and/or employment, a great credit history, or a significant downpayment.
Most of all, we can help you stay focused on your business, alleviating the burden of many time-consuming and frustrating tasks associated with securing a mortgage. We’ll also work around your hectic work schedule.
You bring everything to your business. Now it’s time to reward you. Let us show you how.
INVESTING IN A PROPERTY
ORDINARY CANADIANS CAN BUILD WEALTH WITH INVESTMENT PROPERTY
Across the country, ordinary Canadians are building personal wealth with investment property.
The market is clearly there. In fact, the investment property market continues to be strong in most markets in Canada, with a steady supply of renters for residential, commercial and retail properties.
An investment property is also being increasingly viewed as a pension plan for the future, particularly since so many Canadians are not covered by workplace plans. Over the long term, an investment property can be a great source of retirement funds. Rental income typically pays for most or all expenses and property appreciation has often outperformed stocks and bonds over the long term.
This is not just an investment for well-established business people and experienced homebuyers. Savvy first-time buyers are often jumping in with both feet: purchasing a duplex or triplex, and then managing the additional units to pay down the mortgage while they make a start on home ownership. And parents who add up the cost of accommodations for their college-bound children are often deciding to be landlords themselves – since they know at least one of the tenants very well, and they see an opportunity to offset the cost of housing with a sound investment.
There are many reasons to consider investing in property. If you are thinking about building wealth with an investment property, talk to us. We can help you determine your down payment options and run the financial calculations that you’ll want to see for cash flow and capital appreciation.
YES, YOUR MORTGAGE CAN PAY FOR YOUR NEW KITCHEN AND BATHROOM!
Using today’s great mortgage rates
Do you want to increase the comfort and enjoyment of your home because you’re planning to be there for the foreseeable future? If your dream home is one renovation away, we’ve got a smart-money tip: Reno & Roll – rolling the cost of your renovation into your mortgage for one easy monthly payment, and then using your prepayment features to pay if off faster.
If you’ve owned your home for a few years, chances are you’ve been building up some nice equity. And with mortgage rates hovering around historic lows, this is a great time to look at rolling the cost of your renovation into your mortgage. In fact, you might find enough interest savings in your new mortgage to help knock down the overall cost.
Purchase Plus Improvements Mortgage
Many homebuyers looking to buy older properties find themselves in a common predicament: they’ve found a property that suits them, but it needs some costly and immediate upgrades. Increasingly, buyers are adding the costs of those immediate renovations into their mortgage, instead of racking up credit card bills or selling investments to pay for the upgrades. Known as a “purchase plus improvements” mortgage, this type of mortgage covers the sale price of the home, plus any renovations that would increase the value of the property, with as little as 5 per cent down.
If you’re buying a home but want to add a second storey, finish a basement or redo a kitchen, it can make a lot of sense to add those costs to your mortgage. That way you can spread your payments over the life of the mortgage and have a cost-effective way to get your dream home. You can also use your pre-payment privileges to pay the renovation off faster. The process is quite simple:
- Obtain cost estimates for the upgrades
- Get your appraisal – for the value of the property “as is” and the estimated value of the property once the improvements are completed
- Renovation costs are included in your mortgage
- Complete your upgrades
- Renovation funds are released by your solicitor upon completion
Talk to us about the full range of renovation financing options available to you.
EQUITY TAKE OUT
THERE ARE MANY REASONS TO TAP INTO HOME EQUITY. WHAT’S YOURS?
Your home equity can be a valuable financial resource, enabling you to access credit at rates that are generally lower than other forms of borrowing. Some popular reasons to refinance include:
- Home renovations
- Second properties
- Debt consolidation
- Unexpected expenses
- New business/Self employment
- Retirement planning i.e. supplement income, freedom to travel, home care, pay for ongoing bills like property taxes
- Create a financial buffer for future needs
To see if unlocking some of your home equity works for you, contact us for a free review of your current situation and future goals. We can advise how much equity you can leverage, and what your monthly payments would be. You may be surprised at the power of your home equity.
REPAIRING YOUR CREDIT
IS YOUR CREDIT KEEPING YOU FROM THE BEST MORTGAGE RATES? WE CAN HELP!
Your credit history is an integral part of the mortgage approval process because that history is a reliable indicator of how you will manage your mortgage and your finances in the future. Your credit score provides a snap shot of your perceived lending risk at a particular moment in time. It can change from month to month, which provides a great opportunity for you to improve your score if you need to with the right credit behaviours.
Unfortunately, a less-than-stellar credit rating can affect your ability to get the best mortgage rates. You may not realize how much money your credit situation could cost you. That’s why it’s a good idea to talk a Mortgage Consultant as soon as you can. We can review your situation and coach you on how best to improve your credit over time. As your good credit history becomes established, in due course your borrowing options will increase. If you wish to get a mortgage while you work on bettering your score, we can also advise you on how that may be possible.
Your good credit is your passport to financial opportunities!