COMMITED MORTGAGE Brokers in Ajax

Every young person undoubtedly aspires to buy a home or property. However, your current decisions can significantly impact your future. Consequently, many potential clients are hesitant to take on a first-time home buyer mortgage because securing a mortgage is a major financial commitment, and the decisions made now can have significant implications in the future.

At Certified Mortgage Brokers Ajax, we’ve been helping young people navigate this process for years. Before making a purchase, first-time home buyers must consider several factors. Simply put, they should consider whether they can afford to service the mortgage. Costs like property taxes, maintenance, utilities, and more are often overlooked, but they significantly impact the terms and conditions of a mortgage. Failing to plan for these costs can quickly turn the joy of owning a home into a burden.

Another important factor to consider is the debt-to-income ratio. Not more than 40% of your income should go to paying debts, while housing costs shouldn’t account for more than 32% of your income. These limitations or best practices should help determine the type of property you can afford.

Mortgage brokers are highly trained and can help guide first-time homebuyers through the various terms and conditions that apply to mortgages. Understanding how your broker can help and applying this information to your current and future financial plans and lifestyle choices can save a lot of money in the long run.

Mortgage brokers can determine the mortgage you qualify for and the resulting repayments. As a reputable mortgage broker, contact us for the best mortgage deals in Ajax.

Homeowners may decide to refinance their mortgages for several reasons. However, the primary motive is to benefit from lower interest rates and cut costs. The opportunity to get a lower interest rate can result from a widespread decrease in interest rates or the borrower’s better credit score. Opting for a lower interest rate could result in significant savings that could add up to thousands of dollars throughout the mortgage duration.

Another reason why you may need to refinance your mortgage is to obtain money for significant expenses like upgrading your home, paying for education, or investing in opportunities. Additionally, it’s reasonable to use your home equity to merge high-interest debt by refinancing your mortgage. By doing so, you can access up to 80% of the equity in your home.

To refinance your mortgage, you will need to pay off your existing mortgage, including any associated penalties, and enter into a new mortgage agreement with new terms and conditions. If your current mortgage does not serve your needs, you can negotiate a new agreement to better fit your lifestyle and financial situation. Despite the potential penalties, it may still be financially beneficial to refinance, so consider consulting with your mortgage broker to determine whether it’s a good choice for you.

When refinancing your mortgage, you have three options to choose from:

• Breaking the mortgage.
• A Home Equity Line of Credit — HELOC. This option allows you to borrow funds per your requirements and repay the interest.
• Blend and Extend, where an additional mortgage is added to the current one, and the interest rates are combined.

Your mortgage broker can assist you in comprehending the benefits and costs of each option.

For most homeowners, mortgage renewals are an inevitable occurrence. However, many Canadians miss out on the opportunity to negotiate better terms and interest rates when renewing their mortgages. Shockingly, over 50% of Canadians simply sign and return the renewal without exploring other options to save money.

During a mortgage renewal, your current mortgage is paid off, and a new agreement is put in place. You’ll be notified about the renewal of your mortgage at least three weeks in advance. You should start researching your options at least four months before the renewal date. This allows you to align your mortgage with your lifestyle and financial needs. It’s also the best time to consider switching lenders if you are not satisfied with your current service.

When renewing your mortgage, it is crucial to consider several factors, such as the length of the mortgage term, whether to increase or decrease your repayments, fixed or variable interest rates, the portability of your mortgage, and prepayment penalties.

Your mortgage broker can assist you with advice and suggestions. They have connections with multiple lenders and can negotiate the best terms and conditions on your behalf. Even a slight reduction in interest rates can result in significant savings over time.

Our team at Certified Mortgage Brokers has helped many clients with mortgage renewals. We will review your current mortgage terms and shop around for better rates and terms. Also, the renewal process is typically smooth, thanks to our dedicated team.

A private mortgage is a type of secured loan offered by non-traditional financial institutions or private lenders rather than conventional banks. These loans are easier to access and have a faster approval process. This makes them an ideal option for those who have been rejected by traditional banks or need funding for various reasons.

Private mortgage providers are not bound by the strict rules and regulations that big banks adhere to. They focus more on the market value of the property that will serve as collateral for the loan rather than the borrower’s credit score.

When obtaining a private mortgage, you can borrow up to 90% of your home equity. However, the interest rate charged may be slightly higher than that of traditional banks, reflecting the higher risk involved. Private mortgages are usually interest-only loans with short-term durations, typically ranging from six months to three years. It’s important to consider them as short-term bridging finance and have a clear exit strategy in place when considering such loans.

Private mortgage loans offer solutions for people with less-than-perfect credit scores, self-employed individuals, and unconventional property owners. They’re also ideal for borrowers looking for second mortgages for debt consolidation, home renovations, or investments. Private lenders specialize in numerous areas and can personalize your mortgage plan to fit your personal and financial needs.

If you’re interested in obtaining a private mortgage, contact Certified Mortgage Brokers. We have access to a range of reputable and reliable private lenders as part of our portfolio of lending partners.

A second mortgage, also known as a home equity loan, is a type of loan where a lien is placed on a property that already has a first mortgage. While the interest rates on second mortgages are typically higher than those on first mortgages, they are a popular option for homeowners who want to access the equity in their home to consolidate debt, make renovations, or invest in other areas.

If you’re considering a second mortgage, it’s important to get a market valuation of your property from an estate agent. It’s highly advisable to get multiple valuations to ensure you get a true and fair estimate of your property’s value.

To determine the size of the mortgage you may qualify for, you can calculate the loan-to-value ratio (LTV) by dividing the amount owed on the property by its estimated value. The lower the LTV, the better your chances of qualifying for the desired mortgage amount.

Lenders typically offer up to 90% of the equity in your home for a second mortgage but will require an appraisal and closing costs. You’ll be expected to pay for the appraisal. Second mortgages typically have a shorter term and are interest-only loans.

It’s important to note that a second mortgage is subordinate to the first. This means that in the event of default, the first mortgage is paid off before the second, making the second mortgage riskier for the lender. Since second mortgages are usually arranged with private lenders, it’s best to contact a mortgage broker to help negotiate the best deal for you.

Our experienced team at Certified Mortgage Brokers can assist with second mortgages. We provide expert advice, find suitable lenders, negotiate favourable terms, and guide borrowers through the application and closing process.

While being self-employed has numerous benefits, such as flexibility and autonomy, it can create obstacles when applying for a mortgage. Self-employed individuals often have irregular or hard-to-prove incomes, with fluctuations in business revenue throughout the year. Self-employment mortgages offer flexibility and autonomy but can be challenging to obtain due to inconsistent or hard-to-prove incomes. Mortgage lenders provide an alternative, with a focus on property value over personal attributes. However, they prefer to see a stable and consistent income, and a lack thereof may increase the perceived risk, resulting in higher interest rates.

When seeking a mortgage as a self-employed person, you’ll need to provide your tax returns from the previous two years, and some lenders may request your business registration documents as well. If you can demonstrate your income to the mortgage provider, your application will be assessed similarly to that of an employed individual.

There are more challenges you may face when applying for a mortgage as a self-employed person. For instance, your income may be underestimated if you’ve deducted all allowable business expenses on your tax returns. Mortgage providers use debt-to-income ratios to determine what you can afford to pay back and consequently, how much you can borrow.

Fortunately, private mortgage lenders can offer an alternative solution since they’re not subject to the same stringent regulations as traditional banks. Their primary concern is the property’s value rather than the applicant’s attributes. A reputable mortgage broker can help you find the most suitable lender for your situation, as they have a wide selection of mortgage providers in their portfolio.

If you’re planning to construct or buy a home that is part of a new development, you may need to secure financing for construction. The financing can come in the form of a construction mortgage. There are two primary types of construction mortgages: progress draw mortgages and completion mortgages.

A completion mortgage is typically utilized to pay for a recently built house. Under this option, your lender disburses the funds to the construction company when you assume ownership. If you have a progress draw mortgage, the bank will make partial payments as predetermined milestones are met by the contractor or yourself.

To verify the project’s progress, an inspector will visit the construction site during the construction process, prepare a report, and then the bank will make payments as each milestone is completed. The application process for a construction mortgage is more involved than for a regular residential mortgage.

Before approval, you must provide blueprints and plans for the construction, your contract, your bill of costs, and your completion timetable. Additionally, you will be required to make a larger down payment. Construction financing poses greater risks for both the borrower and the lender. Because construction projects can be complicated, issues can arise, and delays can occur, you must have a contingency fund of at least 15% of the estimated construction cost.

Given the complexities and risks associated with construction financing, it is wise to engage the services of a mortgage broker before submitting your application. It’s important to consult a financial advisor to help you weigh your options and make informed choices.

A Home Equity Line of Credit, commonly referred to as HELOC, is a form of loan that’s secured by the equity in your home. HELOCs are flexible types of credits that enable you to draw from an agreed-upon credit limit whenever you need to. You are only required to pay interest on the borrowed amount, and you can repay the principal at your own pace. Once you repay the principal, you may borrow again.

Since HELOCs are secured. As a result, they typically come with a lower interest rate compared to other forms of credit. That said, they can be a practical way to lower your overall cost of debt. HELOCs also present an opportunity to consolidate expensive unsecured loans such as credit card debt and personal loans.

The interest rate on a HELOC is variable and is calculated daily. This means that you may be subject to unexpected or unplanned interest rate changes. This may leave you financially vulnerable if interest rates go up. With a HELOC, you can borrow up to 65% of the equity in your home, providing you with an accessible way to get funds whenever you need them.

If you are considering a HELOC, it is important to shop around for the best deal. Research suggests that mortgage brokers can negotiate lower interest rates on behalf of their clients. That’s because they have established relationships with many loan providers and can use their leverage to save you thousands of dollars.