we are committed MORTGAGE BROKERS

Buying a home can be stressful, especially if you are doing it for the first time. When you have an expert to guide you, you can go through the home buying process more smoothly. With all the excitement of buying a new home, you will probably wake up thinking, “this could be the day when I get my ideal house!” However, many young people fear making this big investment because obtaining a mortgage is an equally significant and confusing step. The aim of Certified Mortgage Brokers is to make the process easier by helping you understand different mortgage options. We have a vast network of agents and real estate lawyers to help you get the best deals. The certified Vaughan  mortgage brokers will:

• Help you understand the mortgage process from the beginning to the end
• Guide you on the ideal mortgage size and how much you can afford to pay
• Shop around to get you the best mortgage deal
• Acquire a pre-approved mortgage to ensure you have an advantage over other investors who might be interested in the same property but are yet to get an approval
• Help you access the Home Buyer’s Plan that allows you to draw up to $25,000 from your Registered Retirement Savings Plan
• Advise you on other incentives like Land Transfer Tax and First Time Home Buyer’s Tax Credit. This will enable you to grab every incentive you can access as a first-time homebuyer
• Help you understand different mortgage terms and conditions to ensure you make the right choice
• Determine the closing costs to ensure that you understand all the costs upfront
• With a certified mortgage brokers Vaughan, the process of buying your first home doesn’t have to be stressful.>

Refinancing your mortgage loan involves taking out a new loan with different terms to pay off the initial loan. With a mortgage refinance, you are free to choose any type of mortgage loan. It is a complete overhaul; you don’t have to obtain a loan with similar terms as the original loan. There are several reasons why you may refinance your loan. Refinancing your mortgage can help you release some funds to invest in other property or pay for renovations. You may refinance your mortgage if you seek to consolidate expensive unsecured debts and obtain a loan with a lower interest rate. After a refinance, you can use the money to pay for your children’s education or other purposes.

A mortgage refinancing could be accompanied by penalty charges, but you should not let that discourage you. At times, it might be cheaper to refinance the mortgage and pay the penalties instead of continuing to repay an expensive mortgage. Some of the factors that you should consider when weighing your options include:

• The applicable interest rate on your existing mortgage loan
• The applicable fines for an early exit
• The interest savings you will make after the refinance
• The terms and conditions for the new loan

It’s advisable to ensure that you evaluate your mortgage annually to avoid paying unreasonably high-interest rates that could amount to thousands of dollars over the loan term. It might be cheaper to negotiate a new mortgage and pay the existing loan with all the accompanying costs and penalties.

With the right guidance, a mortgage refinance can help you reduce your loan repayments and use the extra equity to invest or improve other areas of your home.

A mortgage renewal involves paying off the new mortgage and signing a new contract. You should take advantage of the renewal period to negotiate more favourable mortgage terms. You would be making a great mistake if you just sign and return the renewal forms without negotiating better terms.

During a mortgage renewal, you should take some time to consider whether the mortgage is in line with your lifestyle and financial requirements. You should consider several factors, including your current mortgage’s interest rates. You should also decide whether you want to continue with your current mortgage lender or get an alternative one.

Up to 50% of mortgage holders do not negotiate for better terms during a mortgage renewal, and they end up leaving thousands of dollars on the table. You shouldn’t make the mistake of signing the renewal notice without first doing your research.

It’s wise to contact a certified mortgage broker three months prior to the mortgage renewal period. Contacting a mortgage broker early gives them ample time to negotiate the best mortgage terms for you. A mortgage broker will negotiate terms that will fit your current and future financial goals and plans. Next time you receive a mortgage renewal notice, you should contact a mortgage broker immediately.

The interest rate savings you make by negotiating for better terms during a mortgage renewal could help you clear your mortgage at an earlier date. A mortgage renewal gives you the opportunity to align the mortgage with your lifestyle and the current housing market’s realities. You should always remember that by signing a new term, you will be signing for a new mortgage contract.

Many Canadians gave up on the dream of owning their own homes due to the recent changes in the Canadian mortgage industry. The good news is that you do not have to be part of them. It’s not the end of the road for you just because conventional lenders have turned down your application for a traditional mortgage.

People who don’t qualify for conventional mortgages can still acquire financing from private mortgage lenders. Private mortgage lenders do not operate under strict rules like conventional banks. Private lenders are institutions or individuals with surplus money, which they intend to lend to investors to earn interest.

Private mortgage lenders are often more interested in the value of the property you will use as collateral instead of your credit score. They give a second chance to borrowers who have been turned away by traditional lenders. People who often benefit from private mortgage loans include:

• People who are in self-employment and can’t prove their income adequately
• Borrowers with a high debt-to-income ratio
• Individuals seeking to invest in unconventional property
• Borrowers seeking second mortgages to renovate their homes or consolidate their debts
• Borrowers with a poor credit score
• People who have identified an opportunity and require money fast to take advantage of the opportunity

Unlike traditional banks, private lenders are more approachable and welcoming. They will tailor the mortgage to suit your unique needs, and they offer a personalized service. Compared to the application process adopted by traditional banks, applying for a private mortgage is quicker and easier.

Most private mortgages are short-term and last between one and three years. Private mortgage loans are interest-only loans. Whenever you borrow a private mortgage, you should have an exit plan.

You can secure a significant amount of money using the equity built in your home by obtaining a second mortgage, also known as a home equity loan. A second mortgage is taken against a property that already has an existing mortgage.

You shouldn’t apply for a second mortgage before you understand all the risks involved. With the help of an experienced mortgage broker, you can balance the costs and benefits of obtaining a second mortgage. Usually, the second mortgage is more expensive than the first mortgage because it carries more risks. If a borrower defaults the loan, the foreclose proceeds to cover the first mortgage first and then the second. Therefore, in case of a default, the second mortgage holders might not recover their loan in full.

However, a second mortgage will come in handy when you need emergency funding. Even if a second mortgage is more costly than the first mortgage, it is less expensive than an unsecured loan. You could use a second mortgage to consolidate your expensive unsecured debts like personal loans and credit card debts. By obtaining a second mortgage, you can upgrade your home or invest in other ventures. With a second mortgage, you can borrow up to 90% of your home’s equity.

Your certified mortgage broker can guide you and help you apply for a second mortgage with the best terms and conditions from their great portfolio of lenders. You only need to be certain that you can afford the second mortgage and that it is in line with your financial plans and goals. You don’t have to hassle looking for the best second mortgage deal, yet a mortgage broker can make the process much easier.

Statistics reveal that in Canada, 15% of the residents are in self-employment. It is often more difficult and expensive for a self-employed person to access a mortgage loan. Many conventional lending institutions tend to favour people in formal employment over self-employed persons. Many mortgage lenders consider self-employed persons high-risk individuals. Before a lender even considers lending to you, they will request proof of income for the last two years.

It is common for self-employed people to write off allowable expenses in order to reduce the taxable income. However, even if this is a smart move, it could affect the size of the mortgage you qualify for. While calculating how much you can afford to pay, lenders will consider your debt to earnings ratio. The good news is that some lenders will write back some of your allowable expenses when considering how much you can qualify. However, the majority of lenders won’t do this, and that’s why you need an experienced mortgage broker to guide you.

Planning forward will do you a lot of good if you are a self-employed person planning to acquire a mortgage loan. You have to ensure that all your documentation is in order. Ensure that you pay off as many debts as possible before you apply for a mortgage loan so that you can improve your credit score. When it comes to allowable expenses, you should consider your options carefully. Ensure that you hold back on large optional purchases and maximize your earnings.

The lender will request a down payment. You should save for the down payment in advance. The higher the down payment, the lower the risk involved. A mortgage broker will help you gather the required paperwork and get a good lender.

Maybe you have always dreamt of constructing your own home instead of moving into an already constructed home. The benefit of constructing your own house is that you can build a home that suits your unique lifestyle. Construction financing is the right product for you if you have always desired to build your own home. It’s worth noting that with construction financing, you have to put in some effort and finance.

The applicable down payment in construction financing usually ranges between 25% and 35%. You have to make many crucial decisions when constructing your home. You must decide about the construction of the ideal company and your home’s location.  Choosing the right construction company helps you ensure you spend your money well.

You should take ample time to prepare before you apply for a construction loan, also known as an own build mortgage. The lender may request your contract with the construction company alongside the construction plans. You will also need a sale and municipal approval of the planned construction if you are constructing a home on a vacant plot. The lender could also request an estimate of all the costs involved.

The lender may also require you to outline the timeline within which you intend to complete the construction. Delays and other hitches are common; you should ensure you have enough money to cover unexpected occurrences.  You should have funds equivalent to 15% of the project cost to cover any unexpected occurrences.

Nothing beats the excitement of choosing your own fittings and finishes while constructing your house. However, building a home is risky for both the lender and the borrower. However, you can mitigate all the risks involved with the guidance of a certified mortgage broker and proper planning.

Usually abbreviated as HELOC, the home equity line of credit is a popular form of secured credit among Canadian residents. A HELOC loan can help you access up to 65% of your home equity. Upon applying for the facility, the full amount that you qualify for will be available to you, but you will only pay interest on the amount you use.

You can pay back the principal whenever you desire because most HELOC loans are interest-only loans. When you pay back the principal amount, the amount will be available for you to borrow when you need it next. Lenders calculate the interest for HELOC loans on a daily basis, taking into account both your deposits and withdrawals.

The loans allow homeowners to access funding at a rate that is more affordable than that of unsecured loans. You can clear the loan at any time you desire without incurring any penalty.

If you do not have a solid financial discipline, HELOC financing could get you into trouble. You will have access to large amounts of money that you might misuse. Because you do not have to pay back the principal, you might be tempted to continue paying only the interest, which might not be the best move. Remember that you have to pay the HELOC facility in full if you decide to move your mortgage loan. It’s no doubt that a HELOC loan provides homeowners with an easy way of accessing money. However, to get the best out of the loan and avoid regrets, you should use the loan with caution.