we are committed MORTGAGE BROKER RICHMOND HILL

For most people, living in a rental property is a temporary solution until they can afford to buy their own homes. However, the homeownership journey is usually a long and expensive one, causing many people to give up on those dreams.

The amount of funds needed is usually the main challenge – you must find a lender willing to give you the mortgage to invest. That may be easy with the help of a mortgage broker, but you must think about the possible consequences that loan acquisition will have on your finances in the future. If you hire the best broker, you can plan accordingly to prevent harsh financial repercussions.

Certified Mortgage Brokers can make your home purchase process painless regardless of whether you are a first-time buyer or not. We make it simpler for you by exploring all the appropriate options for your situation and helping you choose the best one. We also explain the entire process to ensure you make informed decisions. Our brokers will consider all the essential factors in buying a home. For instance, we will calculate the home-to-value ratio and related costs before recommending possible mortgage alternatives. The computation is crucial because the basic principle is that you should never accept a mortgage that you will pay back with more than 40% of your income. Another guideline states that your monthly utility charges should never exceed 32% of the salary. That percentage should include any maintenance fee and taxes as well.

We take pride in giving our clients the ultimate experience, such as numerous mortgage alternatives and First Time Home Buyer’s Tax Credit. The brokers will also take time to understand and interpret the mortgage conditions to ensure you understand the impact on your budgetary plans.

Mortgage refinancing is not usually a good idea for some people – unless there is an urgent need for funding a big project or if the new mortgage comes at a lower interest rate. If you contemplate that mortgage option, determine the home equity value first because it influences the amount you get after refinancing.

The trick with mortgage refinancing is to do it for the right reasons. It is the only way to save money because the alternative can only result in high penalties. Therefore, you should compare the possible outcomes and only take the mortgage if you stand to gain more benefits.

Mortgage refinancing can grant access to a loan of up to 80% of the home equity. That means chances of clearing the current debts and remaining with a single new loan with better terms and rates are very high. It is also why refinancing the mortgage is a good way of reorganizing your finances.

You must consider all the relevant factors if you want to experience the full merits of mortgage refinancing. Examples include new mortgage terms, penalties, and interest rates. Find out how the new rates will change during the mortgage term if the new mortgage conditions will improve your lifestyle and the total amount you will have to pay for the penalty. You should also know the available options for refinancing, which include:

• Using the home equity line of credit.
• Breaking the mortgage.
• Adding a new mortgage to the current one and paying double interest.

Do not be discouraged by the penalties if you need to refinance your mortgage. You can enjoy many benefits when you work with brokers who care about helping you achieve financial freedom. Our team will help you evaluate your alternatives to ensure you make the best choice.

If you need a loan that can help you readjust your circumstances to improve your lifestyle, mortgage renewal is your answer. It is the most suitable mortgage option for people seeking a chance to get out of bad debt. However, you can only take full advantage of the opportunities it presents if you consider it to be more than a way of extending the old term. Weigh the options the new loan presents and negotiate for better loan conditions to save money.

Understand that going for a mortgage renewal means replacing the old loan with a new one. Therefore, you will have to sign a new agreement with modified conditions that may not be suitable for you. The loan you get must also pay the remainder of the previous mortgage. That way, your only responsibility will be to pay a single debt. The advantage is you will be able to negotiate for a better offer.

The renewal notification usually comes at least three weeks before the end of the old term. That gives you at least 21 days to determine whether a new lender can accord you more benefits if you renew. During that time, some of your options will be to choose a new lender or borrow from the same one, ask for lower rates, or negotiate for different terms.

It is also critical to think about potential disadvantages such as higher monthly payments, extra costs like penalties, and different rates. Any of these can increase your financial burden by making the new loan inflexible.

Let our Richmond Hill brokers assess all the relevant factors for you, including the fees for changing lenders. We compare multiple mortgage choices to give you the best solution.

The latter is always a popular choice among most borrowers. However, they have stringent rules and are unlikely to approve all applications. That makes the alternative option a good one. In most cases, banks only issue loans if the debtor has a good credit score, is formally employed, or wants to invest the money in a conventional venture. That means that your chances of getting a loan from a private creditor are higher if you are in the informal employment sector or are considering unusual investments.

The private mortgage sector does not follow the same rules as traditional lenders and will give loans faster. Their loan processing takes a shorter period, and they rarely reject applications. However, the private loan costs are usually higher because of the interest, and the creditors will often require collateral as security. Credit score or history is irrelevant to most lenders, with the focus being on the surety value. If the value is enough to recover their money, they will give you the mortgage. You can also get up to 90% of the home equity from a private lender.

Dealing with private mortgages has its disadvantages that you should not ignore. The most common ones are higher interest rates and shorter mortgage terms. As such, the best way to avoid accruing more debt is by forging an exit plan before accepting the loan. Know how you will manage the monthly payments.

The expertise of a mortgage broker comes in handy when you want to create a repayment plan. We can use our experience to find the most befitting private loans to keep you from being overwhelmed with debts. We will also consider your personal and financial objectives before proposing suitable solutions to get you out of debt in the long run.

Second mortgages usually have a connection to first home loans. Putting up the property as collateral is an option that comes with potentially getting 90% of the home equity. The lender will add the second loan to the first, meaning they take a higher risk and impose strict conditions on the debtor. Expect a shorter repayment period and higher rates. You may also lose your house if you default on the loan, with the lender taking the proceeds from the property sale as a refund. They will prioritize the first loan, meaning if the money is not enough, the second loan will remain unpaid. Very few lenders can comfortably take such a risk. Finding the right creditor may take too long without the help of a seasoned broker.

The conditions surrounding a second mortgage require borrowers to determine the property value before seeing the loan. You can get a free evaluation from real estate agents or ask an independent evaluator to handle the job at a fee. A creditor may also ask for an appraisal from a company of their choice, but you will still settle the cost. Consider getting a variety of assessments for a more accurate result.

The appraisal shows lenders the amount they can get back, but you can also estimate the mortgage you will get with the results. Get the product of the current mortgage balance against the appraisal value. If the number is low, your chances of getting a second mortgage will be higher.

The main advantage of such loans is their lower rates, unlike unsecured loans. That makes them a better solution to settle existing unsecured debts. They are also a good source of funds to invest in unconventional ventures. The approval rate is usually high, and the process takes shorter because they are mainly available from private lenders.

The ability to control when to work or how to manage time and resources are some of the reasons why self-employment is an enticing option. The tax benefits and other positive factors make business ownership a good alternative. However, the main disadvantage comes when you need a loan. Traditional lenders fear giving a mortgage to the self-employed category because of inconsistent income. They prefer the assured income that formally employed borrowers have. Most of them consider the high and low business seasons an inconvenience.

That does not mean you cannot get a mortgage if your business is your only source of income. You only need to know the right creditors to approach and the requirements for the loan. For instance, you must get tax returns for the previous two years and any other documentation that proves the amount you generated. Proof of business ownership is another mandatory requirement. In most cases, the two records are enough to get you the same consideration as individuals in the formal employment sector.

Most lenders use the debt-to-income ratio as a guideline when determining a suitable mortgage amount to give. Therefore, it is in your best interest to disclose all your income sources. Tell the lender about all your businesses and jobs regardless of how minimal the income is. Remember, you must provide proof of passive salary to get a higher mortgage.

Traditional lenders do not offer self-employed mortgages. The only alternative is to approach a private lender, keeping in mind, they do not follow the same rules as banks. If you prove a higher income potential, the interest will be lower, and vice versa. Work with a mortgage broker to assess the situation objectively. They can also help you prepare the necessary documents and select the best lender.

If you build a brand-new house, you get to experience all the advantages of homeownership in an enhanced way. For example, you get to construct the property to match your exact expectations and dreams. You eliminate the need for renovations and save money in the process. Unlike before, when getting the funds to help you with new-builds was a problem, construction mortgage makes it more effortless now.

The mortgage exchange is usually between the lender and the construction company. The first option is partial payments as the job progresses, whereby the lender deposits the money after getting confirmation of every phase completion. They work with an inspector who evaluates the project before the money transfer. Alternatively, the creditor will wait until the construction is complete then pay the wholesome amount as you take ownership.

Both banks and private lenders deal with construction mortgages. They ask for the contract between the borrower and contractor, floor plans for the house, bill of costs, and title deed for the lot. A few may also require the project schedule.

The high-risk nature of such loans also comes with a larger down payment. In addition, the lender will ask that you set aside at least 15% of the construction amount as a contingency plan in case extra expenses arise or the project delays.

The dangers associated with the loan affect the creditor and debtor alike. Issues can arise to derail the job, and in some cases, the complicated processes can lead to more expenses. That is why the construction mortgage application process is not as straightforward as other loans. A mortgage broker can simplify the steps for you to increase the chances of approval. We can also provide expert consultation services whenever you need them.

A Home Equity Line of Credit is a good way of consolidating unsecured debts. The mortgage can give you up to 65% of the equity and the benefit of paying the interest-only until you improve your financial situation. There is no pressure to pay the principal amount, and you do not need to take all the funds at once. You can only access the amount you need whenever you need it. The flexibility is perfect for paying off other debts. If you are overwhelmed with personal loans, credit cards loans, or a different financial constraint, you can use HELOC to get some relief.

On the downside, HELOC does not have a fixed interest rate. Instead, the rates are computed every day and will change according to the market state. That means you are likely to pay very high interest during the mortgage term.

Comparing several lenders when searching for a HELOC mortgage is always the best option. Accepting the deal from the first creditor you meet could put you at a disadvantage. Instead, weigh several rates and conditions and choose the most suitable one for your lifestyle. You can always approach banks and private lenders for the loan. However, to increase chances of stress-free approval, get at least 20% of the down payment before sending out applications. After getting the loan, try to keep up with payments and use the funds accordingly. Otherwise, you could end up worsening the financial situation or lose your house.

It is good practice to work with a mortgage broker regardless of your preferred lender. They can provide relevant information that you can use to make an informed decision. They can also prepare you to give you an upper hand in the negotiations.