we are committed MORTGAGE BROKER IN KITCHENER

We all have a dream of owning a home. The challenge is that owning a home requires a lot of money. As a result, the dream seems out of reach for most people. The good news is you can access the funds needed to bring your dream to life. This is made possible by mortgages. Getting a mortgage as a first-time home buyer can be hard. You also need to consider the repercussions getting the mortgage will have on your finances in the future. Hiring a competent mortgage broker is also something you must do. 

Our team is made up of experienced mortgage brokers who will help you understand all your mortgage options, help find the best lender and get you the best terms. With the home-to-value ratio being an important factor when buying a house, our brokers are happy to make all the calculations for you so that you know how much you can afford. Our expert advice is for you never to take a mortgage that will take up over 40% of your income. Housing bills must never go above 32% of your total monthly income. We will help make these calculations (including hidden charges such as maintenance costs and taxes) to help make the best choice. 

We are committed to helping you enjoy the benefits that come with getting professional mortgage services. The benefits include giving you multiple mortgage options and ensuring you benefit from First Time Home Buyer’s Tax Credit. We are also going to help you pick the property that matches your needs and income. In addition, allow us to interpret the mortgage conditions for you so that you don’t end up with a bad deal. We also help with pre-approval.

There are many reasons why you may want to consider mortgage refinancing. Most people consider the option in order to lower interest rates. Others refinance to secure more funds to settle unsecured loans or get money for other projects. Refinancing enables you to take advantage of your home’s home equity and get more funding. Getting mortgage refinancing for the right reasons gives you a chance to save a considerable amount of money. However, if you consider the option for the wrong reasons, you will not only pay hefty penalties but may even end up losing your home. Prior to refinancing, you must weigh your options keenly to ensure refinancing is the right way to go. 

Refinancing enables you to get up to 80% of the home equity. Most people use this money to clear debts or start afresh with new rates and terms. Making the new mortgage ideal for your needs is the way to go. To reap the most benefits from mortgage refinancing, always consider how the interest rates will change. You also have to review the terms to make sure they will make your life easier. The penalties accrued must also be bearable. In addition to the Home Equity Line of Credit, mortgage refinancing gives you the option to break the mortgage or even add a new one to the existing one. 

Never allow the penalties to scare you from considering mortgage refinancing. With the right help, you can pay these penalties and still enjoy numerous financial benefits. Our mortgage brokers are happy to help you pick the option that is best for you and ensure you reduce repayments significantly. Of course, we also make sure you never pay too high rates.

When it is time for a mortgage renewal, you have the chance to readjust your current debt situation and make it more suitable for your lifestyle. The problem is that most people sign and resubmit the renewal forms too soon. As a result, they miss the opportunity to renegotiate with their lender. When the renewal form arrives in your mail, keep in mind that it offers you a chance to renegotiate terms with your lender. Don’t be comfortable with the basic offer lenders include in the renewal form. These offers are meant to entice you to sign sooner. Then, you can negotiate a better deal. 

The critical point to understand is that a mortgage renewal means replacing the current mortgage with a brand new one. During a renewal, you will be signing a new contract with new terms and conditions. After signing the renewal form, the money you get pays off the old loan, and you start servicing the new one. This is why you should take the time to get a better deal. 

The notice to renew comes at least 3 weeks before the term of the old mortgage expires. You have ample time to review your options, negotiate the loan terms, get a lower interest rate or even work with your mortgage broker to find a new lender.

Disadvantages of a mortgage renewal include:

• Increased payment 
• Pre-payment penalties as well as additional costs
• Different interest rates 

Evaluating the above factors will guarantee you don’t end up with an even bigger debt burden. Our mortgage broker in Kitchener will help get the best rates and terms during a renewal.

When people need a loan, they first reach out to traditional lenders. The issue is traditional lenders do not usually approve most applications. For example, a bank may reject your application for a mortgage if you have a poor credit score or if you are in informal employment. It is also common for an application to be rejected if the money is needed for unconventional investments. These limitations are what push people to private lenders. Private lenders are more accommodating to borrowers. They don’t conform to strict rules like banks and other traditional lenders. 

More often than not, private mortgages take a shorter time to process and chances of an application being rejected are very slim. This is because private mortgages are secured and often attract high-interest rates. Private lenders don’t focus on a borrower’s debt history but rather the property they are putting up as collateral. Private lenders will not turn you down if the property has enough value to recover their money. They will even offer up to 90% on the home equity. 

While private mortgages are great for persons that traditional lenders have turned down, this option does come with its share of disadvantages. The main disadvantages are the high-interest rates as well as shorter repayment periods. As a result, you must have an exit plan prior to taking a private mortgage. 

Working with our Kitchener mortgage broker will guarantee that you end up with the most efficient exit plan that will keep you from losing money. We also know how to get you a mortgage that is tailored to you to guarantee satisfactory results. Get in touch, and let’s explore all your options and find you the best deal.

When you apply for a second mortgage, you will be giving a lender your property as collateral. Your home equity is accepted as collateral. You can get a mortgage worth up to 90% of the value of your home equity. However, because a second mortgage is usually an addition to your old mortgage, it is much riskier for the lenders. Consequently, you will pay interest rates that are much higher and get a shorter term. If you end up defaulting on payment, the money that is recovered from the property you put up as collateral first settles the first mortgage before being used to settle the second mortgage. Due to the risk that comes with second mortgages, most lenders are uncomfortable offering them. Therefore, you will get a second mortgage only from private lenders.  

Take time to evaluate your property before considering a second mortgage. While a realtor can offer the evaluation service for free, it is good to work with an independent evaluator as well. The lender may require that you work with a specific appraisal company, but you still pay them. Getting multiple evaluations helps end up with unbiased results. 

An appraisal benefits you as much as it benefits the lender. First, it will help you know how much you can get. To get a rough estimate, calculate the product of the total amount you owe against the estimated property value. The lower the result is, the higher the chances of getting a loan. 

When compared to unsecured loans, second mortgages are cheaper. This is because they are secured. You can, therefore, get a second mortgage to clear unsecured debts or make other investments. Our broker can help find the best private lender and offers.

Self-employment gives you the freedom to work when and where you want. You get to manage your finances and time better. There is also the advantage of getting tax exemptions allowed to businesses and paying less tax at the end of the year. Although these are irresistible benefits, being self-employed does come with some drawbacks. This is more so when applying for a loan. In most cases, lenders, more so the traditional lenders, consider self-employed borrowers high-risk clients. They prefer clients with a consistent income, and that is only available informal employment. The fluctuating seasons experienced by self-employed applicants are considered high-risk. This is why people in the self-employed sector are turned down. 

Being at this disadvantage doesn’t mean you can’t get a mortgage. Self-employed mortgages are available. You simply need to approach the right lender. You also need to provide at least 2-year tax returns, documents that show your income capacity, and proof of business ownership. Lenders will give you the same priority as formally employed borrowers with these documents in hand. 

To determine a suitable amount, lenders find your debt-to-income ratio. To get the best results from this calculation, it is extremely important that you inform the lender of all your sources of income. Disclose everything, including the side gigs you do on weekends. The more income you are able to prove, the more the amount of loan you will get. 

Getting self-employed mortgages through a bank is almost impossible. Instead, you have to work with private lenders. Our Kitchener mortgage broker will assess your situation and get you the best offer.

There is beauty that comes with owning a home. Now imagine having the funds to build your dream house from the ground up. This enables you to use the materials you want, add the features you desire and in the long run, avoid expensive renovations shortly after. So, where do you get the funds to build your new home? If you need money to build from scratch or complete your home, you can apply for a construction mortgage. 

Just as the name implies, a construction mortgage is there to help with new constructions. You can direct the lender to pay the money to the construction company directly. In this case, the lender and construction company will strike a deal on how funds will be disbursed. In most cases, funds are disbursed in portions at the end of every construction phase. In this case, the lender will send an inspector to ensure the construction is proceeding properly before the contractor is paid. The second option is to disburse the full amount to the construction company when the newly constructed house is ready for you to take ownership. 

Both private and traditional lenders offer a construction mortgage. When submitting an application, you have to provide building plans, a contract with the construction company, a title deed for the lot where the house will be built and the bill of costs. A project schedule may also be required. 

Since construction mortgages are riskier to lenders, you have to pay a larger down payment and get an extra 15% for unforeseen expenses. The application process is not easy. Working with our mortgage brokers will increase the chances of finding the best lender and help you secure the best deal.

HELOC stands for Home Equity Line of Credit. It is a financing option for you if you have a good value on your home equity. It will allow you to secure the funds needed to consolidate debts or advance your studies. With a HELOC, you get up to 65% of your home equity. The best thing is that you don’t have to start paying the principal amount right away, only when you are ready. At first, you can be paying the interest alone, and you don’t need to withdraw the full amount all at once. You can withdraw small amounts as you go. 

The key thing that attracts borrowers to HELOC is flexible payments and flexible withdrawals. HELOC is considered the best mortgage to take when you want to pay unsecured loans. If you are feeling burdened by credit card debts or other personal loans, you can use your home equity to get a loan that gives you relief from these loans. 

On the flip side, HELOC doesn’t have a fixed interest rate. The rate is calculated on a daily basis based on market changes. Consequently, you may pay extremely high rates at some point. To be on the safe side, consider the offerings of multiple lenders. Doing so will help find the best terms and rates. Talk to both private and traditional lenders and try getting a sizeable down payment of not less than 20% in order to increase the chances of the fast approval. You also need to handle the money carefully since misappropriation may cost you your home. 

Work with our mortgage brokers to get in-depth information on how HELOC works and for help in finding the best offers.