Most homeowners stay with their existing mortgage lender because they believe it is too time-consuming to get a better mortgage rate.
If your mortgage renewal is fast approaching, then now is a great time to look at the many excellent options and competitive rates available. Lenders send out renewal forms just prior to renewal dates to those with good payment histories, with about 70% of homeowners sending it back without asking any questions! In today’s hectic world, that can be the easiest and best route, but you should ask yourself some questions before you sign on the dotted line. This is an important moment of opportunity. This is where an independent mortgage professional like us can help offer advice and options to help you get ahead!
Maybe your mortgage needs have changed. This is the time to decide. For example, you may want to consolidate high interest debt in with your mortgage or you may want to tap some of your home equity for a renovation project? Or maybe you reconsidering a cottage or vacation property. Are you confident you will get the best rate at renewal?
Having multiple lenders compete for your business is a great way to ensure you get the best rate for your situation. We deal with multiple lending institutions, including major banks, credit unions, trusts and other national and regional lenders, which means significant negotiating power behind finding the best mortgage to fit your specific situation.
Real estate is a very attractive investment choice in Canada. Whether you’re looking to support your mortgage with rental income on a condo property, or profit on a desirable seasonal rental through online bookings, Team Brantford would love to discuss options and strategies for the financing you require for your income property.
RELATED MORTGAGE CALCULATORS (Select one below)
Needless to say, you’ll have financial responsibilities as a home owner. Some of them, like taxes, may not be billed monthly, so do the calculations to break them down into monthly costs. Below you will find a list of these expenses.
- The mortgage payment: For most home buyers, this is the largest monthly expense. The actual amount of the mortgage payment can vary widely since it is based on a number of variables, such as mortgage term or amortization.
- Property taxes: Property tax can be paid in two ways – remitted directly to the municipality by you, in which case you may be required to periodically show proof of payment to your financial institution; or paid as part of your monthly mortgage payment.
- School taxes: In some municipalities, these taxes are integrated into the property taxes. In others, they are collected separately and are payable in a single lump sum, usually due at the end of the current school year.
- Utilities: As a home owner, you’ll be responsible for all utility bills including heating, gas, electricity, water, telephone and cable.
- Maintenance and upkeep: You will also have to cover the cost of painting, roof repairs, electrical and plumbing, walks and driveway, lawn care and snow removal. A well-maintained property helps to preserve your home’s market value, enhances the neighbourhood and, depending on the kind of renovations you make could add to the worth of your property.
Lenders will often guarantee an interest rate to you as much as 120 days before your mortgage matures. And, as long as you are not increasing your mortgage, they will cover the costs of transferring your mortgage too. This means a rate promised well in advance of your maturity date, thus eliminating any worries of higher rates. And if rates drop before the actual maturity rate, the new lender will usually adjust your interest rate as well. Most lenders send out their mortgage renewal notices, offering existing clients their posted interest rates. The rate you are being offered is usually not the best one. Always investigate the possibility of a lower interest rate with your lender or another lender. If you don’t, you may end up paying a much higher interest rate on your renewal mortgage than you need to.
Where child support and alimony are paid by you to another person, generally the amount paid out is deducted from your total income before determining the size of mortgage you will qualify for. Where child support and alimony are received by you from another person, generally the amount paid may be added to your total income before determining the size of mortgage you will qualify for, provided proof of regular receipt is available for a period of time determined by the lender.
Depending on the circumstances surrounding your bankruptcy, generally some lenders would consider providing mortgage financing.
A conventional mortgage is usually one where the down payment is equal to 20% or more of the purchase price, a loan to value of or less than 80%, and does not normally require mortgage loan insurance.
To determine ‘affordability’ you will first need to know your taxable income along with the amount of any debt outstanding and the monthly payments. Assuming it is your principal residence you are purchasing, calculate 32% of your income for use toward a mortgage payment, property taxes and heating costs. If applicable, half of the estimated monthly condominium maintenance fees will also be included in this calculation. Second, calculate 40% of your taxable income and deduct all of your monthly debt payments, including car loans, credit cards, lines of credit payments. The lesser of the first or second calculation will be used to help determine how much of your income may be used towards housing related payments, including your mortgage payment. These calculations are based on lenders’ usual guidelines. In addition to considering what the ratios say you can afford, make sure you calculate how much you think you can afford. If the payment amount you are comfortable with is less than 32% of your income you may want to settle for the lower amount rather than stretch yourself financially. Make sure you don’t leave yourself house poor. Structure your payments so that you can still afford simple luxuries.
In the majority of cases, we will know within 24 hours whether your application has been approved by a specific lender. If there was some kind of delay, we would notify you of this within the 24 hour period.
Any information we collect from you is private and confidential. It is only used for the purpose of attaining approval for mortgage financing from a specific lender. We have state-of-the-art onsite security and use high-level file encryption for all stored documents. Moreover, Alan Dunlop is licensed by the FSCO and holds a PFP designation from CSI. He strictly adheres to the regulations, standards, and code of ethics of both institutions.
Unfortunately, there is no easy answer to this! First, we have to consider things like current available rates and products, future market expectations, the monetary policy of the Bank of Canada, broad economic factors and, most importantly, your personality. Don’t worry! We are experts in our field and can help you find the terms that you’re most comfortable with. We care deeply about our clients and we take time to get to know you personally before making our recommendation. What’s right for one person may not be right for another.
This is a mortgage product where your interest rate is dependent on the lender’s prime rate for the duration of the term. The lender’s prime rate is often different, yet directly correlated with the Bank of Canada’s prime rate. Some lenders offer specialty variable mortgages, which may include features such as a cap rate, fixed payments and the ability to fix your rate with a guaranteed discount at any time. Contact us to discuss the specific details of variable mortgage products.
This type of mortgage offers a fixed rate and payment amount for the duration of the term. As straightforward as this sounds, there can be different types of terms and rates. We would be happy to discuss the intricate details with you.
As a mortgage agent working under Crescent Mortgage Corp, we have access to hundreds of different mortgage products through both bank and non-bank lenders. One of our key competitive advantages is that we put a lot of effort into understanding the various products and keeping up to date with new developments. Our application process involves getting to know you. We can therefore not only get you the best possible rate, but we can also recommend mortgage solutions with terms that work for you.
We are happy to say that, in the vast majority of cases, our service and advice is completely free. Ultimately, it is the lender that pays us a fee for the work we do. We therefore encourage you to take advantage of what we offer, without having to worry about yet another expense!
Yes, we can help. With access to a wide variety of different lenders, in most cases we can find a suitable financing solution. Our background in banking and lending means we can provide advice on how to improve your credit score.
All of us here at Crescent Mortgage Corp work for you… not the banks. That means, unlike the banks, we can access a broad range of mortgage lenders to find the best rate for your particular situation. When our clients are happy, we’ve done our job. In essence, your best interests are in our best interests.