Posts Tagged ‘Mortgage’
Mortgage Refinance – Revisited
Yes, I am posting another blog on refinancing your mortgage....there's no rule against posting more than one blog on a subject is there? I have been working with a few clients recently who have really been able to benefit from refinancing their mortgage. Most of us will negotiate our cell phone and cable bills with our providers every couple of years. Who hasn't phoned up Bell or Rogers and said the other was offering a much better deal than you are currently getting. You make a few idle threats about taking your business elsewhere and usually will get some sort of concession from your provider to get you to stay. You put in the time to save a few dollars on a $50/mth cell phone bill so why don't you atleast investigate what other lenders can offer you for your mortgage? You could possibly save $1000's of dollars and take years off your mortgage. But What About The Mortgage Penalty? At this point you are probably saying...."but, I have to pay a penalty to get out of ...
Two Mortgage No-No’s
So you have your mortgage pre-approval or approval and you think you have a guarantee from the bank for your financing....Wrong! Most people do not realize nothing is guaranteed when it comes to mortgages and the piece of paper you have in your hand is nothing more than an outline of what the bank is willing to offer.There are a few mistakes some home buyers make that can put their financing in jeopardy:1. Shop around your mortgage or accumulate other debt. I have said it a million times, but one of the most damaging things you can do to your credit is have too many people look at your report. This raises a red flag for the lenders and gets you labeled as a "Credit Shopper".....someone who is trying to accumulate as much credit as they can. Even if you were just looking for ONE cell phone contract, but went to 4 different providers, it still is very damaging. I have had clients who have been pre-approved, but then could not get approved because they went shopping for credit.2. Make a major change to your employment situation. Try and ...
Mortgage Documents – What you need to provide
So you have bought your first house and now you need a mortgage. You find a qualified Mortgage Broker in your area and he gets you a great rate......what's next? Well, the lenders are going to require proof that everything you told them about yourself is true. The world would be a much simpler place if they would just take our word for it, but unfortunately life isn't that easy. But don't worry, most of the documents you need to provide are quite easy to find. Keep in mind this post is dealing with a purchase, but you will most likely need to provide the same pieces of information for mortgage refinances and renewals. Proof of Income Your income is obviously one of the main things the lender needs to feel comfortable with before they hand over their money. They want to be sure the income on your application reflects reality and you are not going to default on the mortgage. Salaried employees will need to provide a job letter from there employer as well as 1 or 2 recent pay stubs. If a large portion of your income ...
Mortgage Timeline – What you need to know
How much time do I need to complete my mortgage? One of the biggest things that most of my clients do not realize is that it takes time to get a mortgage. Contrary to to what some people believe (you know who you are) you can not walk into a bank on a Tuesday and expect to have a mortgage on Wednesday. There is a certain amount of due diligence the lender wants to to do on you and the property.....and this takes TIME. I'm going to lay out the steps and associated timeline for a mortgage below in the hopes that the small percentage of society that calls me up every week looking to fund a mortgage in 2 days will see it and take it into consideration the next time they need a mortgage. I am going to lay out the steps for purchasing a house, but it will also be approximate for refinances and switches. And of course always get your mortgage pre-approval before you go house hunting Step 1 - Approval (time to complete: 1-2 days) Once you have an accepted offer make sure ...
Your Personal Credit – Know The Score
Do You Know What Your Credit Score Is? ....if you don't you are certainly not alone. It is hard to get by in today's society without having some sort of credit, yet most people are not aware of the health of their credit. I am going to talk briefly about some of the misconceptions I come across when dealing with people and their credit. Wrong. It is almost better to have bead credit rather than no credit. Without a credit history the lender can not determine the risk associated with lending money to you. They can't see a history of paying your debts on time and they have no idea how you are going to handle paying what will probably be the largest debt you will ever take on in your life. Atleast with poor credit the lender knows you have a hard time with debt and can price your loan according to the risk associated with lending to you. My Advice If you are thinking of getting a mortgage and currently have no or little debt ...
Hybrid Mortgages – Good or Bad?
The Globe and Mail ran a couple of articles recently on hybrid mortgages in Canada so I thought I would weigh in on the subject. The first article they wrote last week spoke of the advantages of a hybrid mortgage and how it can help guard against rising interest rates. The article was quite short and did not go in to much detail on how the hybrid mortgage actually works. The Globe then followed up with a second article yesterday quoting a mortgage broker and talking about some of the pitfalls. What is a Hybrid Mortgage? So what is a Hybrid Mortgage and how does it work? A hybrid mortgage is basically the love child of a variable and fixed rate mortgage. The client can choose how much of their mortgage to set at a fixed rate and how much to allow to float at a variable rate. The logic behind this product is it will help protect you against rate increases with the fixed ...
Variable vs Fixed – Take the survey
With the recent increase in fixed mortgage rates over the last month and the talk of an upcoming rate hike from the Bank of Canada, the battle between fixed and variable is tougher than ever. Personally, I have noticed more and more clients are sitting on the fence when it comes to choosing. I am interested to hear what you think. Please take a second to complete the poll below and see how others feel about this debate. Of course your answer will be completely anonymous. Be sure to check back often to see the latest results. [polldaddy poll=3259920]
Closing Costs – What You Need To Know
Mortgage Closing Costs Explained More often than not first time homebuyers neglect to set aside enough money for their closing costs. They assume they can use all of the money they have saved for their mortgage down payment and are usually not aware there will be closing costs that will need to be covered on closing day. Closing Cost Advice The rule of thumb is to set aside 1.5% of the purchase price of your home or condo for closing costs. In fact most lenders will require you to prove that you have this amount in liquid assets ready to go on closing day. Most first time homebuyers in Ontario will get a portion if not all of their land transfer tax back, but the lender still requires you to have this cushion in case any unforeseen expenses arise. You will have to provide three month's worth of bank or investment statements showing you have these funds available....cash from a shoebox will not be considered acceptable. What is included in closing costs? Closing costs are made up of several items and depending on the ...
Why Use A Mortgage Broker – Part 1
I was meeting with some First Time Homebuyer clients of mine over the weekend and it really reminded me of why people should use a Mortgage Broker when looking for their mortgage financing. There are several reasons....and I think I will do a few more posts high-lighting all of them, but the ones that seemed to be most obvious this weekend is flexibility and convenience. Unlike most banks, your mortgage broker is probably working 7 days a week when and where it is convenient for the client. I don't have set office hours and most of the time I am meeting with clients outside of my office at a location and time that is most convenient for them. There is no need to take time off work or use your lunch break to receive professional mortgage advice and low mortgage rates. The banks are catching on and now have mobile mortgage sales forces that work similar to a broker....but they can still only provide mortgage options provided by the bank they work for. So next time your mortgage comes up for renewal and you want a ...
Flaherty Tightens Mortgage Lending Criteria in Canada
Jim Flaherty announces changes to Canadian Mortgage regulations. For several weeks there has been speculation surrounding the tightening of mortgage lending criteria and today those changes were finally announced. Flaherty was careful to reiterate that we are not currently experiencing a housing bubble, however these changes are being put in place to prevent Canada from experiencing the same real estate bust the US experienced. So What Changes Did Flaherty Announce For Canadian Home Buyers? All borrowers must qualify at the current five year rate. This means even if you are looking to get a 1 or 2 year mortgage with a rate that is lower than the current five year rate, you still need to make enough money to qualify for the mortgage amount at the going 5 year mortgage rate. We have already seen a rule similar to this imposed by the lenders with variable rate mortgages, but this new rule will make it mandatory across all lenders and mortgage types. Maximum loan to value for a ...
