First Time Home Buyers
Are you a first-time buyer? The property you are about to purchase is probably the largest single purchase, and biggest investment decision you will ever make. Let me help you through the confusing maze of lender options, mortgage documentation, and terminology you are dealing with as you work your way through this process. I will provide a mortgage pre-approval, which strengthens your position when negotiating the purchase price of your home. Call or apply online now, and I will get the ball rolling for you. With electronic access to over 60 lenders I will ensure that you receive the best rate for the product of your choice, usually within 24 hours.
Repeat Home Buyers
As a repeat buyer, you need to know what your options are. With a changing mortgage marketplace, you need to be kept up to date so that you can make a decision that is tailored to your current situation with the flexibility that you require. I can help you through the entire process, helping you explore all your options.
Refinancing
There are many reasons why you might want to refinance, or increase, your existing mortgage — to consolidate non-mortgage debt, to finance improvements to your home, etc. Let us help you negotiate with your existing lender or switch to a new lender who will give you a more favorable rate. There are many factors to consider when refinancing your mortgage. Here's what you need to know:
1) Taking Out Equity in Your Home
i) Consolidate Other Debt: Most unsecured debt is priced by your bank at a higher rate than your mortgage in order to compensate them for the higher risk of loss if you default. For many people it only makes sense to use available home equity to pay out this debt, as it typically reduces interest costs significantly. If the total of the existing mortgage and the debt to be refinanced is less than 80% of the value of your home, and you qualify in terms of income and credit standing, refinancing your first mortgage should be a breeze.
ii) Renovations and Home Improvements: If you want to spend a significant amount of money on improving your home, you may be able to take out a lot more equity than you realized! We can advise you through this process. All three insurers — AIG, Genworth and CMHC, will insure new mortgages which are "topped up" for this purpose, and the total of your current mortgage and the new funds exceeds 80% of the current home value. Not all improvements are eligible, however. Pools and spas are typical "over-improvements" which may not qualify for a high-ratio equity take-out. Of course, if the total requirement is less than 80% of your home's current value, you should have little trouble getting the "top up" you need — regardless of the degree of luxury you plan to add.
2) Consolidating Existing Financing
i) Combining Existing Mortgages: Where the combined mortgages result in one"high ratio" mortgage:
If neither (or none) of the mortgages you're combining was ever insured, but combining them results in a high-ratio situation, you'll be required to pay an insurance premium. You need to look closely at the total savings the combination will give you, in order to determine whether this is financially worthwhile.
Where the combined mortgages result in a new "conventional" mortgage:High ratio insurance is not required. As long as you qualify with your income and credit standing, I will help you achieve this quickly and conveniently.
Where the combined mortgages result in a new "conventional" mortgage:High ratio insurance is not required. As long as you qualify with your income and credit standing, I will help you achieve this quickly and conveniently.
In both cases there is one critical consideration which causes the failure of many such refinances. The new mortgage often requires a fraction of the cash flow previously needed to service the now consolidated debt. Many who go through this process not only absorb the cash flow savings into an improved lifestyle — they either re-incur debt that they paid out, or incur debt for which they now qualify — or both. It is important to approach such a consolidation/re-combination of obligations with the clear and focused goal of applying all savings toward paying down the mortgage. Otherwise, the new mortgage will be a burden, rather than a solution. For more information contact me at tedrhind@invis.ca
ii) Breaking a Closed Mortgage to Transfer to a New Lender: Many closed mortgages have the feature that allows the balance to be paid out with a penalty after a certain time has elapsed on the mortgage. Check the "prepayment" clause in your mortgage to determine your own situation, or better still, call your institution and ask them the cost of paying out in full.
Switching a Mortgage
What happens legally when you switch? Most people are unaware of the legal effect of switching lenders. When you renew a mortgage you are essentially starting the process again — discharging the existing mortgage, taking out a new one, and beginning the whole payment process, albeit at a lower principal amount. As such, you should treat this as just as important a process as the first time you arranged the mortgage. Remember your situation will most likely have changed since then, and you will require a different product with different terms attached to suit your situation. In most Provinces a switch of the current or lower balance requires only a simple assignment of interest in the mortgage to be executed by all parties and registered on title. This assignment also attaches the specific terms that will have legal effect, and replaces those of the transferring institution. So even though the old mortgage is still registered on title, all those old terms and conditions registered by your previous lender will be completely replaced by those of your new lender under the assignment of interest. Moreover, the form that you are holding in your hand from the lender who did your previous mortgage financing, has a rate that probably is not as competitive as it could be. Don't let the hassle from the first time you negotiated dictate you just signing the form and sending it back to the lender — it will most probably cost you in the form of higher rates. The lenders count on 70% of renewers just signing the form and mailing it in — they are not forcing you — but they are preying on human nature to embrace convenience. However, let us do the work for you — the same convenience, at a much lower cost to you and a product and terms that will suit your current situation. The fact is that it is likely another lender will give you what you want at a rate you want — there are no legal implications to you switching.
Vacation Properties
I can make this happen for you with the purchase of a secondary home, be it for vacation or retirement eventually. Whether your preference is a lakeside cabin or a resort condominium I can help with the necessary financing plan to meet your needs. My lenders can and will provide mortgage financing for anywhere in Canada. The process involves an interview to establish what your financial obligations are currently and sending you off to purchase with a clear picture of what you're able to afford. Different properties have different criteria from various lenders' perspectives and I can have this all sorted out for you well in advance. If you are interested to finding out more, feel free to contact me at tedrhind@invis.ca.
Non Lender Lending
If your financial situation is a little more complex than most - no credit history, bankrupt or recently discharges, no verifiable income - you can still achieve your dreams of home ownership. I can get you a mortgage in most situations regardless of your circumstances. Where traditional financial institutions have given the answer “No”, non-traditional or private lenders may be able to offer you solutions. These lenders may charge higher rates and fees, but the end result is that you will still own your own home.
Home Equity/LOC
Refinancing, whether it be a relatively straight forward refinance of your existing mortgage balance, or utilizing your Home Equity for any other purpose desired, is a strategic financial decision that requires the assistance of a mortgage expert to get you the best deal from the hundreds of options available. Whether you want to: lower your monthly payment, consolidate debt, renovate, pull cash out of your home, increase your flexibility with a credit line, or break your mortgage. I can point you in the right direction and get you the results you're looking for!
Mortgages for the New Immigrants
This program is specifically designed for new immigrants. As long as you have a valid work visa or confirmation of application for Permanent Residency, full-time employment, credit references from your home country and down payment from your own resources, you may qualify for home ownership sooner than you think.
Mortgages for the self Employed
I can get you a mortgage in most situations regardless of your circumstances. Where traditional financial institutions have given the answer “No”, we say “Yes” and get you a product that suits your needs at an extremely competitive rate.
Below is a list of the most common non-traditional situations, however, please note, that not all situations are listed and each is looked at on a case-by-case basis to fit with the appropriate lender – each situation is unique and looked at accordingly. This is where our expertise and knowledge is essential in taking care of you and your family.
If you fall into one of the categories above, or if you have a different situation, I know where to go and how to structure the deal.
For self-employed workers you will have to provide 2-3 years of Revenue Canada Notice of Assessment.