COMMITED MORTGAGE

As a young person, you will undoubtedly have aspirations of owning a home. However, you’ll likely feel anxious about the significant financial commitment involved in buying a house. Your initial home purchase and mortgage can have lasting impacts, so it’s important to make informed decisions. The professionals at Turkin Mortgage in Calgary have been assisting young people with these decisions for years. Don’t let your anxiety discourage you. Contact our team for help

Before making a purchase, it’s essential to address several important questions. Firstly, you must determine what you can afford. Owning a home has several hidden costs, including property taxes, maintenance, and utilities, which need to be factored into your budget. Failure to budget for these expenses can quickly diminish the enjoyment of owning a home. It’s imperative to consult a financial advisor before making this momentous decision.

You should also calculate your debt-to-income ratio, ensuring that your total debt payments do not exceed 40% of your income, with housing costs not surpassing 32%. This will limit the amount of property you can afford to purchase.

Licensed mortgage brokers like Turkin Mortgage have the expertise, knowledge, and experience to help you navigate the specific terms and conditions of mortgages. Understanding and applying this information to your financial and lifestyle plans can result in significant future savings.

Your mortgage broker can determine the mortgage for which you qualify, along with the resulting repayment obligations. They may also assist you in getting pre-approved, providing certainty, and making sure interest doesn’t start accruing while you’re house hunting. At Turkin Mortgage, we have assisted many first-time homeowners in navigating this process successfully.

Homeowners opt to refinance their mortgages for various reasons, with the primary motivation being to take advantage of lower interest rates and save money. This could be due to a general reduction in interest rates or an improved credit score of the homeowner. Refinancing your mortgage to secure a lower interest rate could potentially save you thousands of dollars over the term of the mortgage.

Another reason for refinancing a mortgage is to access funds for significant expenses such as home renovations, education, or investment opportunities. Additionally, consolidating high-interest debt is a valid reason for accessing your home equity through mortgage refinancing. Homeowners can access up to 80% of their home’s equity when refinancing.

Refinancing involves paying off the existing mortgage, including any penalties incurred, and signing a new mortgage agreement with new terms and conditions. If the current mortgage no longer aligns with your lifestyle or financial situation, renegotiating a new contract can better suit your needs. Although penalties may deter some homeowners from refinancing, paying them off can still result in financial gains. Speaking with a mortgage broker can help determine if refinancing is a financially viable option.

There are three options when it comes to refinancing a mortgage:

• Breaking the mortgage and obtaining a Home Equity Line of Credit (HELOC)
• Blending and extending by adding a mortgage to the current one
• Combining the interest rates

The costs and benefits associated with each option can be discussed with a mortgage broker. Turkin Mortgage brokers are efficient. We provide expert advice and access to multiple lenders, helping borrowers find the best mortgage rates and terms. Our streamlined processes and personalized service typically save time and effort for existing and potential clients.

Mortgage renewals are an unavoidable fact of life for many homeowners. However, a significant number of Canadians miss out on this chance to renegotiate their mortgage’s terms and conditions or interest rates. Over 50% of Canadians simply sign and submit their renewal paperwork, passing up a great opportunity to save money.

The need to renew your mortgage will typically be communicated to you at least three weeks in advance. Four months before the renewal date, those who are proactive about mortgage renewals will start looking into different options. This gives you a chance to match your mortgage to your lifestyle and financial requirements and gives you the option to switch lenders if you’re not happy with your current provider.

When it’s time to renew your mortgage, there are several things to evaluate, such as the term of the loan, whether to make larger or smaller payments, whether to use fixed or variable interest rates, whether you can move your mortgage, and the effect of prepayment penalties.

It’s prudent to seek advice and recommendations from a mortgage broker. They can negotiate on your behalf to secure the best rates and terms because they will have access to a wide range of lenders. A modest cut in interest rates can produce sizable long-term savings.

Homeowners have the chance to reevaluate their financial situation and modify their mortgage terms and conditions during mortgage renewals. By doing so, they’re likely to save thousands of dollars over their mortgage term.

A secured loan offered by a private institution or lender, as opposed to a traditional bank, is known as a private mortgage. These loans are quicker and easier to access. They are perfect for those who have been declined by conventional banks or need funding for quick investment opportunities.

Unlike banks, private mortgage lenders are not constrained by the same strict regulations. The market value of the property serving as collateral is more important to lenders than your credit score.

You can access up to 90% of the equity in your home with a private mortgage. Although the interest rate will be a little higher, it reflects the higher risk. Private mortgages are short-term loans with interest-only payments that typically have terms of six months to three years. When you enter into the loan, it’s vital to have an exit strategy in place. In fact, these loans should be seen as bridging financing rather than long-term financial solutions.

Private mortgage loans typically offer solutions for the following:

• Individuals with a subpar credit score
• Self-employed individuals
• Properties that are unconventional and that traditional banks won’t finance
• Second mortgages used for investments, renovations, or debt consolidation

A private mortgage can be obtained in a much more intimate manner than a bank mortgage. Private lenders are specialists in many areas, so they can customize your mortgage to meet your needs both personally and financially.

If you need a private mortgage, get in touch with your mortgage broker. Their list of lending partners includes private lenders.

A second mortgage (home equity loan) is a lien placed on real estate that already has another mortgage. Second mortgages are common, despite having higher interest rates than first mortgages. They enable homeowners to access the equity in their house to consolidate higher-cost unsecured debt, undertake renovations, or invest.

If you are thinking about getting a second mortgage, you should receive a market appraisal for your home. This is something that an estate agent can accomplish for free. It is recommended that you obtain multiple valuations to make sure the approximate value is not biased.

The loan-to-value ratio, or LTV, can be used to determine the mortgage size for which you are eligible. This is accomplished by dividing the amount due on the property by the approximate worth of the property. The lower the LTV, the greater your likelihood of obtaining the mortgage you need.

A majority of lenders will grant you up to 90% of your home’s equity. However, they will necessitate an evaluation. You will be responsible for the assessment and closing charges. The period of your second mortgage is usually shorter than the term of your first mortgage. These are often interest-only loans.

Second mortgages are typically subordinate to first mortgages. It simply means the first mortgage will be settled prior to the second in case you default on your loan. This increases the risk of the second mortgage because the second mortgage holder risks not recovering all their money.

Second mortgages are, in most cases, sourced from private lenders. Talk to your broker to help you find and work out the best second mortgage deals. At Turkin Mortgage, we’ve negotiated good second mortgages for many clients, so we can help.

Being self-employed has many advantages, but qualifying for a mortgage is not one of them. Self-employment income is frequently unpredictable and difficult to establish. Companies may do well in some months of the year before experiencing a slump in others. Mortgage lenders prefer to see stable revenue. Mortgage lenders associate fluctuating income with risk. As a result, increased risk translates into higher interest rates.

When applying for a mortgage, you must provide your tax returns from the previous two years to your mortgage provider. Some lenders may also require borrowers to bring their business registration papers along. As a self-employed person, it’s typically hard to prove your earnings, so your application will be considered that of an employed person if you provide your lender with a pay slip.

Mortgage lenders utilize Debt to Income ratios to determine how much borrowers can afford to repay and, hence, how much they’re eligible to borrow. This is the second challenge you will likely encounter. Many business people deduct “allowable expenses” for tax reasons. However, your income may be overstated if you deduct all permitted expenses on your tax return.

Private mortgage lenders may be your go-to solution. They are not constrained by typical strict banking rules. Also, they are more concerned with the value of the property rather than the applicant’s characteristics. Reputable mortgage brokers typically have a big portfolio of mortgage providers on their books. That said, they can link you with the best lender suited to your needs. Partner with Turkin Mortgage for the best outcome.

You’ll likely need construction finance or a construction mortgage if you plan to build your own home or buy one that’s being developed by a construction firm. Construction mortgages come in two varieties: progress draw mortgages and completion mortgages. A completion mortgage is most commonly used to fund the purchase of a newly built house. When you assume the property’s ownership, your bank or lender will transfer the funds to the construction company.

For a progress draw mortgage, the bank will make recurring payments based on the achievement of predetermined or pre-agreed milestones. The lender will send an inspector to the construction site to confirm the project’s progress. They will relay the information to your lender who will then remit payment if they’re satisfied.

A construction mortgage application is more complicated than a residential mortgage application. You must submit plans and blueprints before receiving approval. Also, the lender will likely need to review your contract, bill of costs, and completion schedule. You should also be prepared to put down a higher deposit.

Construction financing is riskier for you and the lender. Also, construction projects are intricate; anything can go wrong, and there may be delays. For this reason, it’s advisable to have a minimum contingency fund of 15% of the construction project’s total cost. Due to the complexity and risks involved, it’s imperative to seek the advice of a mortgage broker before applying for construction financing.

As one of the caring financial partners in Canada, Turkin Mortgage has partnered with many clients in the past and helped them secure construction mortgages that suit their needs.

A Home Equity Line of Credit (HELOC) is a type of loan secured against your home’s value. It’s a flexible and convenient form of credit that allows borrowers to draw a pre-agreed maximum limit whenever they’re short of funds. Borrowers can pay interest on the amount borrowed, plus they are not required to repay the capital until they’re capable. After repaying the principal, you qualify for a second loan.

HELOCs typically have lower interest rates than other types of credit since they are secured. They provide a realistic way to lower your loan costs. A HELOC may allow you to consolidate your high-interest unsecured loans, such as credit cards and personal loans.

Interest rates are typically calculated on a 24-hour basis. The variable interest rate on HELOCs means that the rates can change at any time. As a result, you could be left financially vulnerable when interest rates fluctuate, particularly when they rise. A HELOC allows you to borrow up to 65% of the equity in your home. They provide an easy way to obtain funds as needed.

When looking for a HELOC, it pays to browse around for a good deal. According to research, mortgage brokers are good at negotiating better interest rates on behalf of their clients. This is due to their connections with a huge number of loan providers. They also have the bargaining power that can save borrowers hundreds of dollars. If you’re looking for a HELOC at competitive rates, contact Turkin Mortgage today.