TORONTO MORTGAGE BROKER

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. We have access to agents and real estate lawyer in North York across Toronto to get to you the best deals.

Your certified mortgage broker will

• Explain the mortgage process to you from start to finish
• Determine how much you can afford and the size of the mortgage for which you will qualify
• Get you the best mortgage deal by shopping around
• Get a pre-approved mortgage which will ensure that you have the edge on someone else that may want the same property but still requires approval
• Access the Home Buyer’s Plan which allows you to draw up to $25000 from your Registered Retirement Savings Plan
• Discuss other incentives such as the Land Transfer Tax and First Time Home Buyer’s Tax Credit, so that you can take advantage of every incentive available to you as a first-time buyer.
• Explain the mortgage terms and conditions so that you can settle on the best option for your budget and lifestyle
• Estimate the closing costs so that you have a full understanding of the costs up front.

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;

• The penalties for early exit
• The interest rate on your current mortgage
• The interest savings under the new scenario
• The new terms and conditions.

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.

These include

• Self-employed people who are unable to adequately prove their income
• People with a high debt to income ratio
• People who want to invest in unconventional property
• People seeking second mortgages to consolidate debt or renovate their homes
• People with a poor credit score
• People who need money quickly to take advantage of an opportunity.

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.