Certified Mortgage Brokers in Hamilton!

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Who We Are: Mortgage Brokers Hamilton

Certified Mortgage Brokers in Hamilton are dedicated to ensuring that property buyers, whether residential or commercial get the best deals. are dedicated to ensuring that property buyers, whether residential or commercial get the best deals. It is our mission to deliver the best results to our clients based on their financial needs. Our services include residential and commercial mortgages and mortgage refinancing.

Located in Hamilton- we are your local neighborhood mortgage experts. We know EXACTLY where you are coming from.

Why You Want To Work Us

Experience working with independent local professionals with access to hundreds of financial products to help you get the best mortgage that fits your needs. Whether it is a specific rate, term or condition that is a priority for you, we can help.

The key to a smooth transaction is knowledgeable and experienced brokers who can crunch the numbers, have established relationships with lenders as well as communication skills to educate the client in simple English in all the Pros and Cons of each of the products.

Understanding Mortgage Basics

A mortgage is a loan you take out from a bank or other lender in order to buy a property. The loan allows the lender to make the purchase without having to pay the entire sale price up front.

How Mortgage Works

When you take out a mortgage, you will need to pay a certain amount of the price of the property, with the remainder covered by the loan. This up-front payment is called the down payment, and in Canada the minimum is around 5% for properties valued up to $500,000. If the price is more than $500,000 you will pay an additional 10% down payment for the value above that (i.e. if the price is $1,000,000 you will pay 5% on the first $500,000 and 10% on the remainder).

What You Need To Know

Two terms you need to understand are the mortgage term and amortization term. The mortgage term is the term of the loan and the interest rate you will be charged is effective up to the end of the term. You may not have paid off the loan completely at the end of the mortgage term and will have to renegotiate the loan to continue making payments.

The amortization period is the length of time it will take to completely pay off the mortgage, based on making regular payments at a given interest rate. A shorter amortization term means you will pay off the mortgage quicker but will have to make higher payments, while a longer-term means smaller payments, although you will be charged a higher interest. The longest allowed amortization period is 25 years.

Our Hamilton Based Mortgage Brokers Offer the Following Services

Residential mortgages

For most people buying a home is the biggest investment that they will ever make. This is why it is so important to understand just how mortgages work before committing yourself. At Certified Mortgage Brokers, Hamilton, we pride ourselves in helping our clients to make the best choices.

A residential mortgage is a secured loan where the property serves as collateral. This means that the mortgage holder has the right to sell the property if you fail to make repayments as agreed. The proceeds of the sale are then used to cover the amount owed.

With a residential mortgage the lender agrees to lend you a sum of money. This is known as the principal. Over the term of the mortgage you will make periodic repayments as agreed. These will cover the monthly interest and a portion of the principal. In this way, you pay off the full loan over the amortisation period.

You may choose either a fixed or variable interest rate. Fixed interest rates are very popular in Canada as they offer borrowers the certainty of unchanged interest rates and repayments over the term of the mortgage. Variable interest rates, on the other hand, move along with the prime interest rates. On the positive side variable rates are cheaper over the longer term.

Another choice that you will have to make in negotiating your mortgage is whether to opt for an open or closed mortgage. An open mortgage offers repayment flexibility, allowing early payment of the principal amount without incurring penalties.

A closed mortgage offers lower interest rates but place limits on repayments. With a closed mortgage you will attract penalties for breaching the payment limits as stipulated in the agreement.

Second mortgage

By getting a second mortgage you can let the equity that you have accumulated in your home start working for you. A second mortgage is a loan secured by your home against which you already have a primary mortgage.

Home equity is the difference between the amount that you owe on the property and its market value. Equity grows over time. As the value of property grows so does the equity in your home. The down payment on your property and monthly repayments that you make also add to your home equity. A portion of every repayment that you make goes against the principal once the interest is paid.

You can use up to 85% of your home equity to secure a second mortgage. The interest on the second mortgage is higher than that on the first, but it is a lot lower than the interest on any unsecured debt that you may have.

Most people take a second mortgage for the following reasons;

  • To renovate or extend their homes
  • To make an investment
  • To educate their children
  • To consolidate more expensive unsecured debt.

Second mortgages offer home owners the benefit of easily obtaining a relatively large sum of money at a lower cost than a personal loan or credit card.
If you don’t need a lump sum payment you could also consider a Home Equity Line of Credit or HELOC, a revolving credit agreement secured by your home. You withdraw what you need and pay interest only on the amounts that you have used.

Reverse mortgage

A reverse mortgage allows you to get money from your home without having to sell it. To be eligible for a reverse mortgage you and your spouse must be 55 years or older, and your home must be fully paid-up.

If you still have existing loans secured by your home you can use the funds received from the reverse mortgage to pay it off. The house that secures the loan must be your primary residence. This means that you must live in it for at least six months every year. If you are married both you and your spouse will be listed on the mortgage.

With a reverse mortgage, you can apply for a loan of up to 55% of your home equity. How much you will get will depend on your age and on the appraised value of your home. If you’re approved for a reverse mortgage you can take a single lump sum payment or you can take the money as you need it.

You don’t have to pay back your reverse mortgage unless you move out or sell your house. Alternatively, the house will be sold when the last partner dies. The proceeds are then used to pay off the principal and the accumulated interest on the loan.

If you want to you can pay back the reverse mortgage, but you could incur penalties if you pay it off early.

The interest rate on a reverse mortgage is typically higher than on a regular mortgage. It is, therefore advisable to seek advice from your mortgage broker before you sign on the bottom line.

Mortgage Refinancing Experts

When you refinance your mortgage, you negotiate a new mortgage with new terms and conditions and a new interest rate. You then use the funds to settle your old mortgage.

There are many reasons why borrowers choose to refinance their mortgage. We’ve listed them below.

  • To take advantage of reduced interest rates. If you have not completed the term of your current mortgage you may face penalties. You should not let the threat of penalties put you off. Although they may be quite substantial, the savings on interest rates may make it worth paying the penalties.
  • To take advantage of the equity in your home. You can cash in up to 80% of the equity in your home and use it to renovate your home, consolidate debt and save on high interest debt, or fund your children’s education.

There are several ways that you can refinance your mortgage

  • New mortgage – You can take out a new mortgage with new terms and conditions.
  • Blend and extend – You can add to your current mortgage and combine the rates of the two. Be aware that the interest rates of these types of mortgage tend to be higher than a straight mortgage.
  • Home Equity Line of Credit – a type of revolving credit, when you have a HELOC you can borrow as and when you need the cash. You are committed to paying interest only over the term of the loan. If you pay back the capital you may borrow it again as you choose.

Residential mortgages

For most people buying a home is the biggest investment that they will ever make. This is why it is so important to understand just how mortgages work before committing yourself. At Certified Mortgage Brokers, Hamilton, we pride ourselves in helping our clients to make the best choices.

A residential mortgage is a secured loan where the property serves as collateral. This means that the mortgage holder has the right to sell the property if you fail to make repayments as agreed. The proceeds of the sale are then used to cover the amount owed.

With a residential mortgage the lender agrees to lend you a sum of money. This is known as the principal. Over the term of the mortgage you will make periodic repayments as agreed. These will cover the monthly interest and a portion of the principal. In this way, you pay off the full loan over the amortisation period.

You may choose either a fixed or variable interest rate. Fixed interest rates are very popular in Canada as they offer borrowers the certainty of unchanged interest rates and repayments over the term of the mortgage. Variable interest rates, on the other hand, move along with the prime interest rates. On the positive side variable rates are cheaper over the longer term.

Another choice that you will have to make in negotiating your mortgage is whether to opt for an open or closed mortgage. An open mortgage offers repayment flexibility, allowing early payment of the principal amount without incurring penalties.

A closed mortgage offers lower interest rates but place limits on repayments. With a closed mortgage you will attract penalties for breaching the payment limits as stipulated in the agreement.

Home Equity Line of Credit

A HELOC is a form of secured loan where you home serves as security. It is a form of revolving credit that allows the home owner to borrow any amount up to a pre-determined maximum. With a HELOC you can access up to 65% of the value of your home. Your fixed mortgage balance and your HELOC together cannot exceed 80% of the value of your home.

As you repay the principal, you are allowed to reborrow the money. You can borrow what you need when you need it and you only accumulate interest on the funds that you have used.

There are two types of HELOC’s a combined HELOC, also known as a re-advanceable mortgage, and a standalone HELOC

  • A combined HELOC – combines a fixed term mortgage with a HELOC. The fixed term section must be paid according to the payment schedule which covers the interest and a portion of the principal. As more of the principal is paid off so the HELOC expands to allow the homeowner to access more funds.
  • A standalone HELOC – with this form of financial instrument you need only pay back the interest.

The benefits of HELOC’s

  • A HELOC can make access to funding relatively easy
  • Because they are secured loans the interest rates are lower than you’d pay on a personal loan, and you only pay interest on the amount that you have borrowed
  • You can pay it back at any time without incurring penalties.

The disadvantages of HELOC’s

  • If you are not disciplined you could run up a large amount of debt
  • The bank can reduce the loan amount at any time they choose.

First time home owners

Buying a house for the first time is an exciting time in anyone’s life. It is also a commitment that many people face with considerable trepidation. Knowing what to expect does help to reduce the anxiety.

As a first-time home buyer in Canada you are entitled to a number of incentives which make it easier to break into the property market. If you haven’t lived in your own home or that of your spouse or common law partner for the last four years you may qualify for all or some of the incentives listed below:

  • The First Time Home Buyer’s tax credit will give you $750 of tax relief to assist with land transfer costs, legal fees and disbursements.
  • The Home Buyer’s Plan allows you to access up to $25,000 of your registered retirement savings plan RRSP and you’re exempt from tax. Your partner can draw a similar amount from their RRSP. Bear in mind that the money must have been in the fund for at least 90 days before the sale goes through. You will have to repay the money to the fund within the next fifteen years or pay the tax.
  • Land Tax Rebate both local and provincial rebates are available depending on where you are buying.
  • GST/HST refund if you are buying a newly built home.
  • The CMHC First Time Home Owner Incentive Scheme was launched in September 2019. To qualify you
    • Must earn less the $120,000 per annum.
    • The amount that you may borrow may not exceed $480,000
    • You must make a minimum down-payment

You must repay the amount within 25 years or on the sale of the property whichever comes first.

Private mortgages

For many people taking a loan from a conventional bank is simply not an option. Reasons range from a poor credit record, to unconfirmable income and unconventional properties. Private mortgages allow people who don’t qualify to follow their property investment dreams.

Private mortgages are secured loans that run for periods of six months to three years. They are interest only loans. No payment is made against the principal until the mortgage has reached term or is paid up.

Unlike conventional banks, private bankers are interested less in the credit rating of the borrower than in the market value of the property that will serve as collateral against the loan.

Because private mortgages carry more risk for the lender, they attract higher interest rates than a conventional mortgage. the rate that you will pay will depend on your circumstances and factors related to the property. Fees are incurred when signing up for a private mortgage. You should budget for between 1% and 3% of the loan amount. It is possible to include the fees in the mortgage.

Private lenders specialise in various markets and your broker will match you up with a lender who will understand your needs and will tailor a product to suit you. He will also help you to devise an exit strategy that will allow you to change to a conventional mortgage at the end of the term.

Factors that private lenders look at:

  • The appraised value of the property
  • Your income
  • A down payment of at least 15%

Commercial mortgages

Commercial mortgages are typically taken out by businesses who wish to purchase commercial property rather than residential property.

Most people are familiar with residential mortgages so it is useful to compare the two.

The interest rate on a commercial mortgage is typically substantially higher than on residential properties. This is because they are riskier for the lender, given that repayment is dependent on the success of the business.

Applying for a commercial mortgage is also a lot more complicated than a residential application, because the business is assessed and not the individual. It, therefore, takes a lot longer to obtain approval for a commercial mortgage. It can take as much as a year to get approval.

At between three and ten years the term of a commercial mortgage is typically shorter than a residential mortgage.

The loan to value ratio of a commercial mortgage is generally lower. This means that less of the capital outlay is covered by the loan. The ideal range is between 65% and 80%.

Criteria for approving a commercial mortgage:

  • The creditworthiness of the business and the business owner
  • The size of the down payment, the bigger the better.
  • Financial statements and forecasts
  • Appraised real estate values
  • A survey of the property.

Interest rates on commercial mortgages differ significantly between businesses and industries and it is very difficult to make rate comparisons. A mortgage broker can help you to navigate through the complexities of a commercial mortgage and ensure that you get the best interest rates.

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Featured Rates

FIXED

LenderRateTerm
Mortgage Lendwise RateLendwise

1.94%

5-Year
Mortgage First National Bank RateFirst National Financial

2.14%

4-Year
Mortgage RMG RateRMG Mortgages

2.14%

3-Year
Mortgage Street Capital RateStreet Capital Bank

2.24%

2-Year
Mortgage TD Bank RateTD Bank

2.24%

1-Year

VARIABLE

TermRate
5-Year variable

1.88%

(prime - 0.35%)
3-Year variable

2.6%

(prime + 0.15%)

HELOC

TypeRate
HELOC

4.2%

(prime +0.25%)

OTHER

TypeRate
Line of CreditStarting at

3.00%

Equity LoansStarting at

5.99%

Private MortgagesStarting at

5.99%

Certified Mortgage Broker Hamilton

Frequently Asked Questions About Your Hamilton Mortgage

What is a mortgage?

Almost everyone has a mortgage sometime. A mortgage is a loan agreement made for the purchase of a property where the property is held as collateral by the lender until the capital amount of the loan is fully recovered. Over the term of the mortgage, the mortgage holder retains the right to sell the property should the lender fail to make repayments as agreed in the mortgage agreement.

When repayments are made a portion is used to cover the interest costs and what is left pays off a part of the principal. Thus, the amount owed is reduced over time and the borrower enjoys a bigger and bigger portion of the home equity.

Certified Mortgage Broker Mississauga

Fixed or variable interest rates

Should I get a pre-approved mortgage?

We usually advise our clients to get a pre-approved mortgage. You have nothing to lose. It costs nothing and takes only a few days. When you get pre-approval, the lender commits to lending you an amount under agreed terms and conditions. Pre-approval has several benefits for the borrower. We’ve listed a few of them below:

  • You’ll save time and effort as you’ll know exactly what size mortgage you can afford, so you can consider only the properties that fall within your budget.
  • You should have better negotiating power when it comes to discussing the price with the seller as he knows that you have the money available to buy his house.
  • You can lock in the interest rates for a period of 60 to 120 days.

Fixed or variable interest rates

What is the difference between an open and closed payment mortgage?

In Canada, there are two basic types of mortgages that you can choose from

  • A closed payment mortgage – limits your payment flexibility. These types of mortgages contain limits on how much of the principal you may pay back in any year. Early payment of the principal will result in penalty charges which can be quite substantial. Borrowers who have closed payment mortgages pay lower interest rates.
  • An open payment mortgage – allows repayment of the principal at any time during the term of the mortgage. An open mortgage costs more because higher interest rates are applied. But they are a good choice for people who may have a variable income and can pay lump sums into the mortgage as the money becomes available.
Rising Interest Rates

Should I choose a fixed or variable interest rate mortgage?

Whether you choose to go with a fixed or variable interest rate mortgage will depend on your personal set of circumstances. Here are the facts

  • Fixed interest rates – by far the most popular choice. Fixed interest rates are higher over the longer term, but they offer the borrower stability. This is because the interest rate will remain unchanged for the full term of the mortgage. This makes it easier for homeowners to budget without putting too much strain on their finances.
  • Variable interest rates – rise and fall in conjunction with the prime interest rates. In fact, they are often quoted as prime less a discount. Over the longer-term variable interest rates are lower. Borrowers who have a tight budget may find that a rise in the interest rates put pressure on finances. This is why so many borrowers prefer the stability of fixed interest rates.

Fixed or variable interest rates

What size down payment do I need?

The minimum down payment for a property in Canada is 5% and this depends on the size of your mortgage. As the mortgage amount increases, so does the percentage down payment required.

Difficult as it may seem you should aim to put at least 20% of the value of the property into the down payment. If you pay less than 20% your mortgage will be a high ratio mortgage. These mortgages are more expensive as you will have to pay mortgage default insurance. This insurance protects the lender against default. The premium is typically between 2.8% and 5%.

Fixed or variable interest rates

How long will it take to pay off the mortgage?

The amount of time that you take to pay off your mortgage is called the amortization period. Amortization periods range between ten and twenty-five years. The size of your repayments will depend on what amortization period you choose.

A longer amortization period will leave you with smaller monthly payments, but you’ll pay more interest over the period.

Understanding the terms associated with mortgages

  • Appraisal – the formal assessment of the value of the property that you plan to buy
  • Deposit – the amount of money that you pay to signal your commitment to buying the property. The deposit is held in trust until the transfer goes through and then it becomes part of the down payment.
  • Down Payment – expressed as a percentage of the value of the property, the down payment is the amount of money that the buyer must fund himself in the purchase of the property.
  • Home Inspection Fee – Prudent buyers ensure that the structural integrity of the home that they plan to buy is good. To do this they must hire the service of a qualified inspector.
  • Loan to value ratio – the value of the property relative to the mortgage. The bigger the down payment you make the lower the loan to value ratio. A lower ratio means that there is less risk to the lender so the borrower can negotiate lower interest rates
  • Prepayment Option – the option on a closed mortgage that allows you to make specific early payments against the principal amount. Some pre-payment options have penalties. Others do not.
  • Property Transfer Tax – when you buy property, you will pay tax when the property is transferred from the current owner to you.
  • Mortgage default insurance – is mandatory for Canadians who cannot put down a 20% down payment on the property they buy. It covers the lender against losses if the borrower should default
  • Term – the term is the length of time that your mortgage will be in force. At the end of the term, you will have to renew it, pay it off or find a new mortgage provider.
Should we seek pre-approval?

mortgage questions What is a Mortgage Term?

The loan that you make to buy a house or some other property is called a mortgage. The principal refers to the amount borrowed. Each mortgage payment pays off part of the principal plus the interest.

You have custody over the property. However, if you fail to pay the loan and interest according to the terms of the contract, the lender may repossess the property.

mortgage questions What is a Down Payment?

A down payment refers to the money you pay for real estate property. This money is paid upfront and the rest of the cost of your new home is covered by your mortgage. For properties that cost up to $500,000, the minimum down payment in Canada is 5% – however, do take note that your lender may sometimes require a higher down payment.

But what if the cost of the property is more than $500,000? If that is the case then the interest is 5% for the first $500,000 and then 10% for the remainder of the cost.

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Leon and I sat down, this was my first mortgage so I didn't really know i was looking for or much about the industry. Leo sat me down, explained everything from start to finish and to my surprise everything was pretty simple. If i had any questions he would answer them and explain in a way even would understand. Awesome team
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Waldron LaMothe
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Jean Phillips
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Anibal Cranford
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