Arguably, some have reported that the economy is improving. Some Canadian families have even started to use credit with confidence again. To all of you who are dipping back into your credit, you should heed the Bank of Canada Governor warning.
Recently several news agencies reported on statements made by Mark Carney (Bank of Canada Governor) where he warned Canadians that the Canadian economy may be growing again but Canadians will be feeling the negative economic impact of the global recession well into the future.
He also advised, in response to the recent report with respect to Canadians high utilization of consumer credit that “Without a significant change in behaviour, the proportion of households that would be susceptible to serious financial stress from an adverse shock will continue to grow.”
You see interest rates are only low because of the recent recession and record unemployment rates. Interest rates have nowhere else to go but up, they can’t stay at 0% or 1% forever. As the economy continues to improve rates will continue to rise, until they reach a point where economic stability is threatened.
The challenge is that those who are taking advantage of low interest rates now and utilizing credit may face a rude awakening when rates continue to rise. Especially those who own their homes because when their mortgages come due they could face higher interest rates and higher mortgage payments, this will make all of that new credit difficult to pay back, should rates go up.
The best plan, if you have credit card debt, is to stop using the cards and devise a plan to pay them down. Consider refinancing your home and consolidate your debt down to one low payment. If you are nervous about what’s been happening in the economy and with interest rates – consider locking in your new mortgage. For more information about mortgage interest rates visit www.gtamortgagematters.com.
Tuesday, December 21, 2010
Monday, December 13, 2010
How to Negotiate a Payment Plan with the Canada Revenue Agency (CRA)
If you owe money to the CRA do not take this lightly. The more time that passes the more the interest and penalties accumulate and the higher the likelihood that the CRA is going to come after you.
Sometimes time may pass and the CRA may not be aggressively pursuing you. This may give you a false sense of confidence that you have time and can negotiate with them. This is a dangerous assumption.
When the CRA decides that they want you to pay in full, they will be un-relentless in pursuing the money. They will even go as far as to freeze your bank account, garnish your wages or place a lien on your home. This is precisely the reason that time is of the essence and it is better to craft a plan to deal with your tax debt before it’s too late.
It’s always best to try to pay off the CRA in full (even if you don’t believe you owe the money) because then you won’t pay potential enforcement action. If you own your home, this is likely the best resource to use to pay off your tax debt.
If you owe a large tax debt, you may determine that refinancing your first mortgage is the best way to deal with the debt while others who owe less may reap greater benefit from using their home to obtain a home equity loan or home equity line of credit.
If you choose to try to negotiate a repayment plan with the CRA here is what you need to consider. Could you reasonably afford to repay the CRA in 24 months with their exorbitant interest rates? If the answer to this question is no, the CRA will not likely accept a repayment plan longer than 24 months and you will have to come up with a lump sum or payment in full if you plan on contacting them.
If you would like more information about how to negotiate a payment plan with the Canada Revenue Agency or how to raise the money to pay off your tax debt please visit www.gtamortgagematters.com.
Sometimes time may pass and the CRA may not be aggressively pursuing you. This may give you a false sense of confidence that you have time and can negotiate with them. This is a dangerous assumption.
When the CRA decides that they want you to pay in full, they will be un-relentless in pursuing the money. They will even go as far as to freeze your bank account, garnish your wages or place a lien on your home. This is precisely the reason that time is of the essence and it is better to craft a plan to deal with your tax debt before it’s too late.
It’s always best to try to pay off the CRA in full (even if you don’t believe you owe the money) because then you won’t pay potential enforcement action. If you own your home, this is likely the best resource to use to pay off your tax debt.
If you owe a large tax debt, you may determine that refinancing your first mortgage is the best way to deal with the debt while others who owe less may reap greater benefit from using their home to obtain a home equity loan or home equity line of credit.
If you choose to try to negotiate a repayment plan with the CRA here is what you need to consider. Could you reasonably afford to repay the CRA in 24 months with their exorbitant interest rates? If the answer to this question is no, the CRA will not likely accept a repayment plan longer than 24 months and you will have to come up with a lump sum or payment in full if you plan on contacting them.
If you would like more information about how to negotiate a payment plan with the Canada Revenue Agency or how to raise the money to pay off your tax debt please visit www.gtamortgagematters.com.
Tuesday, December 7, 2010
How To Consolidate Debt In Brampton and Lower Monthly Payments Over The Holidays
If you own a home in Brampton, you may have many financial options over the holidays to get rid of your credit card debt and bring in the New Year with one low monthly payment.
The problem with credit cards is that once you accumulate a lot of credit card debt, it is easy to get into a cycle of only making your minimum payments. This is scary because if you get into a cycle of only making minimum payments to high interest credit cards, they could take as long as 35 years to pay off.
The best thing to do is assess your debt load. If you divide your total debt by 6 you will arrive at the approximate number (not including interest payments) that you would have to pay monthly to pay off your debt within 6 months. If you can’t afford to pay off your debt in 6-12 months and you own a home in Brampton, Mississauga or anywhere else in the GTA, you should now explore your financial options.
If you have a low rate first mortgage and your debt load is less than $20,000, a home equity line of credit is a low rate, affordable and flexible credit product that you can use to consolidate you credit card debt and cut down your interest. Usually home equity lines of credit bear minimum payments equal to 1% or 1.5% of the balance. Just because the minimum payments are low doesn’t mean you should only make minimum payments. Given the payments you will have eliminated by consolidating, you should use this as an opportunity to double and triple up on your payments to your line of credit and in no time it will be paid off completely.
The same result can be achieved through a home equity loan. Those who have significant debt should consider refinancing their first mortgage and starting the New Year with one fresh new monthly payment.
Brampton homeowners can take advantage of the services of a Mississauga mortgage broker or Brampton mortgage broker to achieve financial goals where their homes are concerned. These professionals are seasoned in the Brampton real estate market and will ensure that you find out about the best available deals in your area.
For more information about consolidating debt in Brampton during the holiday season visit www.gtamortgagematters.com.
The problem with credit cards is that once you accumulate a lot of credit card debt, it is easy to get into a cycle of only making your minimum payments. This is scary because if you get into a cycle of only making minimum payments to high interest credit cards, they could take as long as 35 years to pay off.
The best thing to do is assess your debt load. If you divide your total debt by 6 you will arrive at the approximate number (not including interest payments) that you would have to pay monthly to pay off your debt within 6 months. If you can’t afford to pay off your debt in 6-12 months and you own a home in Brampton, Mississauga or anywhere else in the GTA, you should now explore your financial options.
If you have a low rate first mortgage and your debt load is less than $20,000, a home equity line of credit is a low rate, affordable and flexible credit product that you can use to consolidate you credit card debt and cut down your interest. Usually home equity lines of credit bear minimum payments equal to 1% or 1.5% of the balance. Just because the minimum payments are low doesn’t mean you should only make minimum payments. Given the payments you will have eliminated by consolidating, you should use this as an opportunity to double and triple up on your payments to your line of credit and in no time it will be paid off completely.
The same result can be achieved through a home equity loan. Those who have significant debt should consider refinancing their first mortgage and starting the New Year with one fresh new monthly payment.
Brampton homeowners can take advantage of the services of a Mississauga mortgage broker or Brampton mortgage broker to achieve financial goals where their homes are concerned. These professionals are seasoned in the Brampton real estate market and will ensure that you find out about the best available deals in your area.
For more information about consolidating debt in Brampton during the holiday season visit www.gtamortgagematters.com.
Tuesday, November 30, 2010
Brampton Mortgage Approval Tips and Information
Whether you are looking for a mortgage to purchase a home in Brampton or you own a home in Brampton and want to refinance it, you will want to be prepared and take advantage of local resources that are available to you.
Not every consumer is able to just walk into their bank and qualify or be approved for a mortgage. Banks require that you meet a lot of criteria in order to qualify for mortgage financing.
Also, visiting a bank directly is risky because if they pull your credit report and then decline your application, the next place you visit after will have to pull your credit report again. There are many places in Brampton that you can go to seek mortgage advice and information.
A Brampton mortgage broker is a valuable tool in your “mortgage finding” tool belt. They deal with most of the banks and are able to present you with a wide range of mortgage options. In many cases a Brampton mortgage broker will get you a mortgage and charge you little to nothing because in many cases the bank will pay their fees.
If you have had problems with credit or have a weak financial profile, you may have to pay a Brampton mortgage broker a fee because they may have to source out private mortgage financing to accommodate your financial needs.
Even if you plan to obtain a mortgage a month or two from now, establish a relationship with a Brampton mortgage broker, well in advance! They can give you mortgage tips and information so that when you are ready to apply for a mortgage in Brampton, you are well prepared.
For more mortgage tips and information about applying for a mortgage in Brampton or if you have questions about Brampton mortgage brokers please visit www.gtamortgagematters.com.
Not every consumer is able to just walk into their bank and qualify or be approved for a mortgage. Banks require that you meet a lot of criteria in order to qualify for mortgage financing.
Also, visiting a bank directly is risky because if they pull your credit report and then decline your application, the next place you visit after will have to pull your credit report again. There are many places in Brampton that you can go to seek mortgage advice and information.
A Brampton mortgage broker is a valuable tool in your “mortgage finding” tool belt. They deal with most of the banks and are able to present you with a wide range of mortgage options. In many cases a Brampton mortgage broker will get you a mortgage and charge you little to nothing because in many cases the bank will pay their fees.
If you have had problems with credit or have a weak financial profile, you may have to pay a Brampton mortgage broker a fee because they may have to source out private mortgage financing to accommodate your financial needs.
Even if you plan to obtain a mortgage a month or two from now, establish a relationship with a Brampton mortgage broker, well in advance! They can give you mortgage tips and information so that when you are ready to apply for a mortgage in Brampton, you are well prepared.
For more mortgage tips and information about applying for a mortgage in Brampton or if you have questions about Brampton mortgage brokers please visit www.gtamortgagematters.com.
Tuesday, November 23, 2010
How To Find A Brampton Mortgage Broker
Brampton is a great area to own a home. It is located in the suburbs of the GTA and is close enough to Toronto that you could commute in and out of Toronto for work.
This is one reason that more and more homeowners are selling their homes in Toronto for a more suburban lifestyle in Brampton.
If you are thinking of purchasing a home or own a home in Brampton and want to refinance, then a strong relationship with a good mortgage broker in Brampton is the right choice.
There are too many conflicts of interest present when you use a Real Estate agent to find a mortgage or go directly to a financial institution yourself.
If you visit a Bank or Finance company you are going to be subject to their lending guidelines and restricted to the credit products they are prepared to offer you.
Other mortgage referrers like real estate agents often have a hidden agenda and will be receiving an incentive or kickback from the broker or institution that they refer their client to.
Do your own research. Find a mortgage broker independently, who works with a wide cross section of lenders so that they can present you with a diverse range of mortgage options.
If you live in Brampton you could take advantage of a Mississauga mortgage broker. Mortgage brokers in Mississauga often serve the Brampton and Mississauga areas and are very knowledgeable about the real estate markets and lending guidelines in these areas. They also may have access to private lenders who prefer to lend in these municipalities.
For more information about how to find a mortgage broker in Brampton please visit www.gtamortgagematters.com
This is one reason that more and more homeowners are selling their homes in Toronto for a more suburban lifestyle in Brampton.
If you are thinking of purchasing a home or own a home in Brampton and want to refinance, then a strong relationship with a good mortgage broker in Brampton is the right choice.
There are too many conflicts of interest present when you use a Real Estate agent to find a mortgage or go directly to a financial institution yourself.
If you visit a Bank or Finance company you are going to be subject to their lending guidelines and restricted to the credit products they are prepared to offer you.
Other mortgage referrers like real estate agents often have a hidden agenda and will be receiving an incentive or kickback from the broker or institution that they refer their client to.
Do your own research. Find a mortgage broker independently, who works with a wide cross section of lenders so that they can present you with a diverse range of mortgage options.
If you live in Brampton you could take advantage of a Mississauga mortgage broker. Mortgage brokers in Mississauga often serve the Brampton and Mississauga areas and are very knowledgeable about the real estate markets and lending guidelines in these areas. They also may have access to private lenders who prefer to lend in these municipalities.
For more information about how to find a mortgage broker in Brampton please visit www.gtamortgagematters.com
Monday, November 15, 2010
How To Prepare To Apply For A Mortgage Loan In Mississauga
You have lots of mortgage options if you live in Mississauga. Mississauga is part of the GTA and very close to Toronto which is a financial hub.
Unlike homeowners who own properties that have lost value (rural properties or properties located in regions with high unemployment rates), Mississauga homeowners have fared well through the recent recession. Some have even seen an increase in their properties value.
Whether you are preparing to obtain a mortgage in Mississauga to purchase or refinance, you should start planning at least one year in advance if you want to get the best deal. To get the best interest rate and most flexible mortgage term you will need to:
have good credit
demonstrate good stability
be able to prove your income
have low debt service ratios
With this in mind, here is what you can do to start planning to apply for a mortgage in Mississauga.
1. Request your credit report from Equifax and your TrueAssess Financial Report Card.
2. Ensure that all of your taxes are filed up to date and that you can prove your income.
3. Look at your current debt load and come up with a plan to pay down your debt to acceptable levels.
If you know you have poor credit or can’t prove your income, you’re not sunk. You will simply need more money down if you are purchasing a home or alternately if you are refinancing your home; you will require more equity.
The best thing to do if you want to apply for a mortgage in Mississauga, is establish a relationship with a good Mississauga mortgage broker. A mortgage broker in Mississauga will be both knowledgeable about the real estate values in Mississauga but will also know what the best available mortgage options are.
For more information visit www.gtamortgagematters.com.
Unlike homeowners who own properties that have lost value (rural properties or properties located in regions with high unemployment rates), Mississauga homeowners have fared well through the recent recession. Some have even seen an increase in their properties value.
Whether you are preparing to obtain a mortgage in Mississauga to purchase or refinance, you should start planning at least one year in advance if you want to get the best deal. To get the best interest rate and most flexible mortgage term you will need to:
have good credit
demonstrate good stability
be able to prove your income
have low debt service ratios
With this in mind, here is what you can do to start planning to apply for a mortgage in Mississauga.
1. Request your credit report from Equifax and your TrueAssess Financial Report Card.
2. Ensure that all of your taxes are filed up to date and that you can prove your income.
3. Look at your current debt load and come up with a plan to pay down your debt to acceptable levels.
If you know you have poor credit or can’t prove your income, you’re not sunk. You will simply need more money down if you are purchasing a home or alternately if you are refinancing your home; you will require more equity.
The best thing to do if you want to apply for a mortgage in Mississauga, is establish a relationship with a good Mississauga mortgage broker. A mortgage broker in Mississauga will be both knowledgeable about the real estate values in Mississauga but will also know what the best available mortgage options are.
For more information visit www.gtamortgagematters.com.
Tuesday, November 9, 2010
Mississauga Homeowners Refinance Mortgages To Consolidate Credit Card Debt and Save Money
If you are a homeowner in Mississauga you have likely survived the recent economic turmoil. The real estate market in Mississauga has been more stable than some other GTA real estate markets.
In Toronto, the introduction of new Municipal taxes like the land transfer tax has had an impact on the value of some real estate. As a result of the crisis at GM, unemployment rates in Oshawa are amongst the highest in Canada which has also impacted their real estate market.
Homeowners that are drowning in credit card debt turn to their homes to raise funds to consolidate and fortunately so are more Mississauga homeowners; their equity has likely been preserved despite recent economic turmoil.
If you are a homeowner who has credit card debt, refinancing your home to pay it off is a good solution.
You have many different mortgage products to choose from that include home equity lines of credit, first and second mortgages.
Choosing the right mortgage product to consolidate your credit card debt depends on your short and long term financial goals.
You can use financial calculators and see what your payment would be based on different mortgage amortizations. Just because you refinance your mortgage, doesn’t mean that you negotiate a monthly payment based on a maximum amortization term.
If you consolidated $20,000 of credit card debt into a second mortgage at 12.9%, amortized over 5 years your monthly payment would be about $400 per/mo. Because a second mortgage doesn’t interfere, or impact your first mortgage, once arranged, repayment is the same as a conventional consolidation loan.
This is a prime example of why Mississauga homeowners are turning to their homes to consolidate their credit card debt. For more information about refinancing a home in Mississauga to consolidate credit card debt please visit www.gtamortgagematters.com.
In Toronto, the introduction of new Municipal taxes like the land transfer tax has had an impact on the value of some real estate. As a result of the crisis at GM, unemployment rates in Oshawa are amongst the highest in Canada which has also impacted their real estate market.
Homeowners that are drowning in credit card debt turn to their homes to raise funds to consolidate and fortunately so are more Mississauga homeowners; their equity has likely been preserved despite recent economic turmoil.
If you are a homeowner who has credit card debt, refinancing your home to pay it off is a good solution.
You have many different mortgage products to choose from that include home equity lines of credit, first and second mortgages.
Choosing the right mortgage product to consolidate your credit card debt depends on your short and long term financial goals.
You can use financial calculators and see what your payment would be based on different mortgage amortizations. Just because you refinance your mortgage, doesn’t mean that you negotiate a monthly payment based on a maximum amortization term.
If you consolidated $20,000 of credit card debt into a second mortgage at 12.9%, amortized over 5 years your monthly payment would be about $400 per/mo. Because a second mortgage doesn’t interfere, or impact your first mortgage, once arranged, repayment is the same as a conventional consolidation loan.
This is a prime example of why Mississauga homeowners are turning to their homes to consolidate their credit card debt. For more information about refinancing a home in Mississauga to consolidate credit card debt please visit www.gtamortgagematters.com.
Monday, November 8, 2010
Acquiring The Lowest Mortgage Interest Rates in Mississauga
Many home buyers, who are seeking a mortgage, aspire to achieve the lowest mortgage interest rates. By choosing the lowest mortgage interest rates, the borrower can save an extensive amount of money on monthly mortgage payments during the life of the loan. This will notably reduce the chance of a default on the loan. There are a number of factors that can affect the process of securing the lowest mortgage interest rates, many of which are within the buyer’s control.
The borrower’s credit report greatly assists the lender in determining which interest rates are available to the borrower. A person with a high credit score is a more attractive candidate for a loan. In addition, possessing an adequate credit score will also lower the interest rates of the loan. Therefore the borrower’s credit score should be viewed and improved as much as possible to increase the probability of obtaining the lowest mortgage interest rates. The borrower’s credit report should be taken into consideration before entering into the application process. Allowing for a sufficient time frame to improve the credit scores will enhance the borrower‘s likelihood of being granted the lowest mortgage interest rates available.
The economy can have a direct impact on interest rates as well. When the economy is in a state of decline, interest rates also fall. This can be very beneficial to a borrower with a low credit score who already holds a mortgage. Typically in cases like these, the interest rate of the loan is not within the ideal price range of the borrower. Therefore in times of economic turndown, the majority of mortgage applications lenders acquire are those of people looking to refinance in hopes of obtaining a lower interest rate.
One tool that can be very useful to the borrower and can aid in acquiring the lowest mortgage interest rates is a mortgage calculator. Using a mortgage calculator allows the buyer to utilize a wide range of different scenarios to see how the monthly payment will fluctuate. By entering the lowest mortgage interest rates, along with different down payment amounts and prices, the borrower can see which situation will save the largest amount of money. Acquiring the most affordable mortgage with the lowest mortgage interest rates can provide room in the borrower’s budget for income changes and unforeseen expenses. Having adequate funding will significantly lower the chance of a default on the mortgage.
The borrower’s credit report greatly assists the lender in determining which interest rates are available to the borrower. A person with a high credit score is a more attractive candidate for a loan. In addition, possessing an adequate credit score will also lower the interest rates of the loan. Therefore the borrower’s credit score should be viewed and improved as much as possible to increase the probability of obtaining the lowest mortgage interest rates. The borrower’s credit report should be taken into consideration before entering into the application process. Allowing for a sufficient time frame to improve the credit scores will enhance the borrower‘s likelihood of being granted the lowest mortgage interest rates available.
The economy can have a direct impact on interest rates as well. When the economy is in a state of decline, interest rates also fall. This can be very beneficial to a borrower with a low credit score who already holds a mortgage. Typically in cases like these, the interest rate of the loan is not within the ideal price range of the borrower. Therefore in times of economic turndown, the majority of mortgage applications lenders acquire are those of people looking to refinance in hopes of obtaining a lower interest rate.
One tool that can be very useful to the borrower and can aid in acquiring the lowest mortgage interest rates is a mortgage calculator. Using a mortgage calculator allows the buyer to utilize a wide range of different scenarios to see how the monthly payment will fluctuate. By entering the lowest mortgage interest rates, along with different down payment amounts and prices, the borrower can see which situation will save the largest amount of money. Acquiring the most affordable mortgage with the lowest mortgage interest rates can provide room in the borrower’s budget for income changes and unforeseen expenses. Having adequate funding will significantly lower the chance of a default on the mortgage.
Tuesday, November 2, 2010
How To Qualify For Toronto’s Best Mortgage Interest Rates
If you live in Toronto you have likely felt the budgetary pinch of the high cost of living. Toronto has become one of the most expensive places in Canada to live. Homeowners especially, have faced higher land transfer taxes and rising property taxes, higher utility costs and more.
So when the cost of living goes up, how can you find cushion in your budget so that you don’t buckle under the financial pressure. The first thing you can do is take a look at your current mortgage terms.
Your interest rate, the manner in which it compounds and amortization, all affect your mortgage payment. The first thing you want to do is see if you qualify for not only a better interest rate than what you’re paying, but Toronto’s best mortgage interest rate.
Qualifying for the lowest mortgage interest rate in Toronto will involve having a strong financial profile. This includes having good income, job stability, low income to debt ratios, a credit score that is at least 680 and minimum 3 years of excellent credit and more.
Those with low credit scores, difficulty proving income and debt service ratios may not qualify for Toronto’s lowest mortgage interest rate, but may still have options. Those who have a weaker financial profile can still increase cash flow and reduce their monthly payments through using home equity to consolidate debt. The weaker the financial profile, the more equity they will need to have in their property.
If you want to qualify for Toronto’s lowest interest rates then do some planning. Request your credit report online at Equifax’s website. You can also request your complete financial report card at TrueAssess. You can speak with a mortgage broker to obtain tips on how you can prepare to build the strongest financial profile in order to qualify for the lowest mortgage rates.
At the end of the day understanding your banks requirements will enable you to be successful when the time comes to look for a low interest mortgage. For more information visit www.gtamortgagematters.com.
So when the cost of living goes up, how can you find cushion in your budget so that you don’t buckle under the financial pressure. The first thing you can do is take a look at your current mortgage terms.
Your interest rate, the manner in which it compounds and amortization, all affect your mortgage payment. The first thing you want to do is see if you qualify for not only a better interest rate than what you’re paying, but Toronto’s best mortgage interest rate.
Qualifying for the lowest mortgage interest rate in Toronto will involve having a strong financial profile. This includes having good income, job stability, low income to debt ratios, a credit score that is at least 680 and minimum 3 years of excellent credit and more.
Those with low credit scores, difficulty proving income and debt service ratios may not qualify for Toronto’s lowest mortgage interest rate, but may still have options. Those who have a weaker financial profile can still increase cash flow and reduce their monthly payments through using home equity to consolidate debt. The weaker the financial profile, the more equity they will need to have in their property.
If you want to qualify for Toronto’s lowest interest rates then do some planning. Request your credit report online at Equifax’s website. You can also request your complete financial report card at TrueAssess. You can speak with a mortgage broker to obtain tips on how you can prepare to build the strongest financial profile in order to qualify for the lowest mortgage rates.
At the end of the day understanding your banks requirements will enable you to be successful when the time comes to look for a low interest mortgage. For more information visit www.gtamortgagematters.com.
Tuesday, October 26, 2010
Home Equity Line of Credit Approvals, Even For the Credit Challenged?
Consumers who are looking to finance big ticket purchases, debt consolidations, finance home improvements etc… will often turn to their homes to find the money.
There are many reasons why and it makes good sense to do so. Home Equity loans offer low monthly payments, less interest in comparison to most credit cards and more flexibility.
Even consumers who have had bruised credit in the past can obtain Home Equity financing, but they will be required to have more equity in their home as opposed to those who have less equity in their home.
One of the most flexible Home Equity Loan products is a Home Equity Line of Credit. If you are approved for a Home Equity Line of Credit you will be issued a Visa or Master Card and credit limit. The beauty of a Home Equity Line of Credit is that you are given a limit which you can use to pay down the line of credit. If you use the line of credit and then pay it off, in the future if you require funds you won’t have to refinance again.
Home Equity lines of credit often have smaller monthly payments than conventional second mortgages and most will calculate your minimum monthly payment based on your balance (1%-2% of your monthly payment).
Home Equity lines of credit are cheaper and faster to arrange than conventional second mortgages. Most home equity line of credit lenders, use title insurance, rather than a lawyer on closing.
If you are considering refinancing your home to obtain capital, you most likely have many options. Take into consideration the amount of money you need, your financial goals, how soon can you realistically pay off the debt, your personal and financial circumstances and how much equity you have in your home when choosing the right credit product.
For more information visit http://www.gtamortgagematters.com.
There are many reasons why and it makes good sense to do so. Home Equity loans offer low monthly payments, less interest in comparison to most credit cards and more flexibility.
Even consumers who have had bruised credit in the past can obtain Home Equity financing, but they will be required to have more equity in their home as opposed to those who have less equity in their home.
One of the most flexible Home Equity Loan products is a Home Equity Line of Credit. If you are approved for a Home Equity Line of Credit you will be issued a Visa or Master Card and credit limit. The beauty of a Home Equity Line of Credit is that you are given a limit which you can use to pay down the line of credit. If you use the line of credit and then pay it off, in the future if you require funds you won’t have to refinance again.
Home Equity lines of credit often have smaller monthly payments than conventional second mortgages and most will calculate your minimum monthly payment based on your balance (1%-2% of your monthly payment).
Home Equity lines of credit are cheaper and faster to arrange than conventional second mortgages. Most home equity line of credit lenders, use title insurance, rather than a lawyer on closing.
If you are considering refinancing your home to obtain capital, you most likely have many options. Take into consideration the amount of money you need, your financial goals, how soon can you realistically pay off the debt, your personal and financial circumstances and how much equity you have in your home when choosing the right credit product.
For more information visit http://www.gtamortgagematters.com.
Tuesday, October 19, 2010
How to Find a Mississauga Mortgage Broker
If you have made the decision to purchase a home in Mississauga or refinance your mortgage, you may be shopping around for a mortgage.
The best way to shop around for a mortgage in Mississauga is to deal with a Mississauga mortgage broker. Mortgage brokers have access to all types of lenders that deal with all different types of consumers. A Mississauga mortgage broker will have access to the big banks but also will have access to local lenders in Mississauga.
It’s important that you don’t run around applying all over the place for a mortgage and do research to ensure that you chose the right mortgage broker who has your best interests at heart. Here are some tips you can use to identify if you are dealing with a legitimate mortgage broker in Mississauga.
1. Do they have an office?
2. Ask them what types of financial institutions that they deal with to get an idea how credible they are. Big banks will only deal with credible and legitimate brokers.
3. Do they have access to lots of lenders in Mississauga? If for some reason you weren’t approved by the bank, it is important that the broker has secondary lenders so that you don’t make an offer on a home to later learn that you don’t have a mortgage.
4. Are they licensed? All mortgage brokers and mortgage agents must be licensed in the province of Ontario. You can confirm if a mortgage brokerage or mortgage agent in Ontario is licensed at the FSCO website.
5. Client testimonials – do they have any?
If you have found a good mortgage broker in Mississauga, now it’s time to find the right mortgage. Ask lots of questions and review your options. Make sure you choose a mortgage that considers your long term financial goals. A good mortgage broker should be able to provide you with lots of information and many options.
For more information about finding a mortgage broker in Mississauga visit www.gtamortgagematters.com.
The best way to shop around for a mortgage in Mississauga is to deal with a Mississauga mortgage broker. Mortgage brokers have access to all types of lenders that deal with all different types of consumers. A Mississauga mortgage broker will have access to the big banks but also will have access to local lenders in Mississauga.
It’s important that you don’t run around applying all over the place for a mortgage and do research to ensure that you chose the right mortgage broker who has your best interests at heart. Here are some tips you can use to identify if you are dealing with a legitimate mortgage broker in Mississauga.
1. Do they have an office?
2. Ask them what types of financial institutions that they deal with to get an idea how credible they are. Big banks will only deal with credible and legitimate brokers.
3. Do they have access to lots of lenders in Mississauga? If for some reason you weren’t approved by the bank, it is important that the broker has secondary lenders so that you don’t make an offer on a home to later learn that you don’t have a mortgage.
4. Are they licensed? All mortgage brokers and mortgage agents must be licensed in the province of Ontario. You can confirm if a mortgage brokerage or mortgage agent in Ontario is licensed at the FSCO website.
5. Client testimonials – do they have any?
If you have found a good mortgage broker in Mississauga, now it’s time to find the right mortgage. Ask lots of questions and review your options. Make sure you choose a mortgage that considers your long term financial goals. A good mortgage broker should be able to provide you with lots of information and many options.
For more information about finding a mortgage broker in Mississauga visit www.gtamortgagematters.com.
Tuesday, October 12, 2010
What is High Ratio Insurance, a Mississauga Homeowner Inquired.
We recently received an email from a first time homebuyer in Mississauga that wanted to know what high ratio insurance is. This is a question that comes up from time to time and many first time homebuyers don’t realize that you need high ratio insurance in order to finance a home purchase in Canada with less than 20% down payment.
To qualify for a mortgage with your bank you will first have to qualify for high ratio insurance with the Canadian Mortgage and Housing Corporation (CMHC)
When you want to buy a house, getting a mortgage loan through a local Mortgage Broker is the way that most people should choose. If you lived in Mississauga you should look for a mortgage broker in Mississauga.
High ratio insurance is required by Canadian financial institutions because it protects them in the event you default on your mortgage payments, if there is a deficiency in the sale of the property. This insurance is not like all other types of insurance due to the fact that a premium payment is paid once upfront and can be added to the mortgage.
High ratio insurance premiums can vary somewhere between 0.25% to 3.75%. The amount you pay will depend on the amount of the mortgage required and the amount of down payment you have.
One important thing to remember is that the larger down payment you can make the less you will pay in upfront insurance premiums. If you can make a 20% down payment then this will mean you will not require high ratio mortgage insurance.
Most of the times when you purchase a home the down payment that will be needed for you to get into your new home will depend on your credit. If you have really good rating then it is possible for you to purchase a home in Mississauga with only a 5% down payment; the weaker the credit the higher the down payment required which will shrink the risk that the mortgage insurer will have on your mortgage.
So always ensure that you pay your bills on time to be sure you have good credit or expect to pay the higher down payment and insurance costs every month.
One last thing that is essential to know is that this insurance can be paid upfront or added to the mortgage. If you choose to add it to the mortgage the actual cost of that insurance rises substantially as that amount is now amortized over 25 years plus and interest is paid on that amount.
For more information about high ratio insurance visit www.gtamortgagematters.com.
To qualify for a mortgage with your bank you will first have to qualify for high ratio insurance with the Canadian Mortgage and Housing Corporation (CMHC)
When you want to buy a house, getting a mortgage loan through a local Mortgage Broker is the way that most people should choose. If you lived in Mississauga you should look for a mortgage broker in Mississauga.
High ratio insurance is required by Canadian financial institutions because it protects them in the event you default on your mortgage payments, if there is a deficiency in the sale of the property. This insurance is not like all other types of insurance due to the fact that a premium payment is paid once upfront and can be added to the mortgage.
High ratio insurance premiums can vary somewhere between 0.25% to 3.75%. The amount you pay will depend on the amount of the mortgage required and the amount of down payment you have.
One important thing to remember is that the larger down payment you can make the less you will pay in upfront insurance premiums. If you can make a 20% down payment then this will mean you will not require high ratio mortgage insurance.
Most of the times when you purchase a home the down payment that will be needed for you to get into your new home will depend on your credit. If you have really good rating then it is possible for you to purchase a home in Mississauga with only a 5% down payment; the weaker the credit the higher the down payment required which will shrink the risk that the mortgage insurer will have on your mortgage.
So always ensure that you pay your bills on time to be sure you have good credit or expect to pay the higher down payment and insurance costs every month.
One last thing that is essential to know is that this insurance can be paid upfront or added to the mortgage. If you choose to add it to the mortgage the actual cost of that insurance rises substantially as that amount is now amortized over 25 years plus and interest is paid on that amount.
For more information about high ratio insurance visit www.gtamortgagematters.com.
Wednesday, October 6, 2010
Commercial Mortgage Rates In Toronto for your Business
A commercial loan is a title given to express differentiation from loans not usually maintained by real estate or consumer loan departments. These types of loans may be secured or unsecured, and have long or short term maturities. A commercial mortgage can include working capital advances, term business loans, agricultural credits, and loans to individuals for business purposes.
Commercial loans differ from residential loans in that the collateral for the mortgage is a commercial building or other business real estate, not a residential property. When the buyer is taken into consideration for a commercial loan, the process is more involved than that of an application for a home mortgage. The credit history of the business and its owners are evaluated along with the aspects of the overall business record. The commercial mortgage rates are usually higher as well.
Commercial mortgage rates can be fixed or variable. The fixed rate mortgage is a mortgage type where the interest on the loan remains constant throughout the payment term. When commercial mortgage rates are variable, they have the ability to change with the economy. These commercial mortgage rates may also vary due to several different factors. These factors include the length of the loan, the location of the property, and the risk level of your business.
Lenders typically base commercial mortgage rates on the prime rate. The prime rate is the rate offered by the lender to larger corporations. When the borrower qualifies for high rates, this can put a burden on the overall success of repayment. Refinancing with a different lender at a later date will aid in acquiring lower commercial mortgage rates.
When acquiring a commercial mortgage, typically there is a large down payment of 25% - 35% of the purchase price. However, the payment then becomes equity in the property. Depositing less than 25% on the down payment will considerably increase the interest rate. To achieve the lowest possible commercial mortgage rates, the borrower should put the largest amount possible down.
Commercial mortgage rates, for any type of business loan, should always be negotiated with the lender. Since payment on the property is likely to continue over a period of several years or more, negotiating to receive the lowest possible rates will help the mortgage holder to meet their monthly payments. More affordable payments help the borrower pay the loan off at a more efficient rate, saving the borrower time and money. A mortgage broker can help negotiate the lowest possible interest rates.
Commercial loans differ from residential loans in that the collateral for the mortgage is a commercial building or other business real estate, not a residential property. When the buyer is taken into consideration for a commercial loan, the process is more involved than that of an application for a home mortgage. The credit history of the business and its owners are evaluated along with the aspects of the overall business record. The commercial mortgage rates are usually higher as well.
Commercial mortgage rates can be fixed or variable. The fixed rate mortgage is a mortgage type where the interest on the loan remains constant throughout the payment term. When commercial mortgage rates are variable, they have the ability to change with the economy. These commercial mortgage rates may also vary due to several different factors. These factors include the length of the loan, the location of the property, and the risk level of your business.
Lenders typically base commercial mortgage rates on the prime rate. The prime rate is the rate offered by the lender to larger corporations. When the borrower qualifies for high rates, this can put a burden on the overall success of repayment. Refinancing with a different lender at a later date will aid in acquiring lower commercial mortgage rates.
When acquiring a commercial mortgage, typically there is a large down payment of 25% - 35% of the purchase price. However, the payment then becomes equity in the property. Depositing less than 25% on the down payment will considerably increase the interest rate. To achieve the lowest possible commercial mortgage rates, the borrower should put the largest amount possible down.
Commercial mortgage rates, for any type of business loan, should always be negotiated with the lender. Since payment on the property is likely to continue over a period of several years or more, negotiating to receive the lowest possible rates will help the mortgage holder to meet their monthly payments. More affordable payments help the borrower pay the loan off at a more efficient rate, saving the borrower time and money. A mortgage broker can help negotiate the lowest possible interest rates.
Tuesday, October 5, 2010
Obtaining The Lowest Mortgage Rates in Toronto
Experts say that mortgage rates are on the rise. To get the lowest mortgage rates, home buyers need to act now. Interest rates and estate values do change regularly, however experts believe that rates will continue to rise over the next few years. Rising rates are a normal part of an improving economy. To obtain the lowest mortgage rates possible acting at the proper time is essential.
Having a Toronto mortgage broker on your side to aid you in this process can greatly improve your chances of obtaining the lowest mortgage rates. Toronto Mortgage brokers are trained to recognize trends and cyclic periods in the economy. Working with a mortgage broker enables the buyer to have an advantage over an untrained buyer acting alone, especially when choosing the most advantageous time to purchase a home.
Choosing a competent investor is imperative in finding the lowest mortgage rates. A good investor never acts on a whim, but otherwise uses the trend cycles for preparation in detecting the lowest mortgage rates. Timing the market and making a prediction on when to obtain the lowest mortgage rates, is rarely a good strategy. Smart investors make an informed decision based on the information they have right now. Acting on an assumption alone is very risky because interest rates could fall rapidly without warning, and real estate values could unexpectedly rise making for a very unattractive market.
Real estate values are based on supply and demand. Recently, due to the pressures of recession, real estate purchases have decreased. As the economy improves, demand will rise and supply will fall, thus creating better value. It may be a few years before we see this change occur. Therefore buying now, before the rates rise, will help in apprehending the lowest Toronto mortgage rates.
Owning a home offers many advantages over renting. Owning a home is a very valuable and changeable asset. The home owner can modify the home or its property to increase the value, and it is a security that can be used as leverage in times of financial need. When compared with renting, owning a home is a much more practical and sensible investment. Instead of paying a landlord to make use of their investment, obtaining a mortgage is a way to move towards ownership of that valuable asset. Owning a home is simply a better investment and purchasing a home now is ideal for acquiring the lowest mortgage rates.
Paul Mangion
http://www.gtamortgagematters.com/
Having a Toronto mortgage broker on your side to aid you in this process can greatly improve your chances of obtaining the lowest mortgage rates. Toronto Mortgage brokers are trained to recognize trends and cyclic periods in the economy. Working with a mortgage broker enables the buyer to have an advantage over an untrained buyer acting alone, especially when choosing the most advantageous time to purchase a home.
Choosing a competent investor is imperative in finding the lowest mortgage rates. A good investor never acts on a whim, but otherwise uses the trend cycles for preparation in detecting the lowest mortgage rates. Timing the market and making a prediction on when to obtain the lowest mortgage rates, is rarely a good strategy. Smart investors make an informed decision based on the information they have right now. Acting on an assumption alone is very risky because interest rates could fall rapidly without warning, and real estate values could unexpectedly rise making for a very unattractive market.
Real estate values are based on supply and demand. Recently, due to the pressures of recession, real estate purchases have decreased. As the economy improves, demand will rise and supply will fall, thus creating better value. It may be a few years before we see this change occur. Therefore buying now, before the rates rise, will help in apprehending the lowest Toronto mortgage rates.
Owning a home offers many advantages over renting. Owning a home is a very valuable and changeable asset. The home owner can modify the home or its property to increase the value, and it is a security that can be used as leverage in times of financial need. When compared with renting, owning a home is a much more practical and sensible investment. Instead of paying a landlord to make use of their investment, obtaining a mortgage is a way to move towards ownership of that valuable asset. Owning a home is simply a better investment and purchasing a home now is ideal for acquiring the lowest mortgage rates.
Paul Mangion
http://www.gtamortgagematters.com/
How to Get Out of Debt in Mississauga
While we work with consumers all over the G-T-A we are located in Mississauga and have made it a personal mission to help people in Mississauga get out of debt.
If you are in debt you are probably growing tired of paying high credit card interest or worse, figuring out how you are going to make the monthly payments on your mounting debt load.
Those who have maintained at least their minimum monthly payments to credit, have likely kept their credit reports intact and so will have more options than those who have started making late payments to creditors.
That said those who manage to scrape by making their monthly payments to their large debt loads, may eventually reach a breaking point. What can you do to get out of debt?
If you want to get out of debt in Mississauga and own a home in Mississauga (or anywhere else in the G-T-A), you may be able to refinance your home and either take out a new first mortgage or personal line of credit to pay off all of your debt. A Mississauga mortgage brokerage helps families in Mississauga get out of debt. A new mortgage will save you interest and reduce your monthly payments, increasing cash flow.
What if you don’t own your home? Well now it’s time to look at how much debt you have accumulated. There are other options to get out of debt in Mississauga that include personal lines of credit, making a repayment and settlement proposals to your creditors and more…
Banks preference clients who have lots of income, savings, assets and investments so approaching a bank for a debt consolidation can be a humbling experience. If you are not approved your banker is not going to be qualified to tell you what to do next.
What’s important is that you work with a company who works with all types of credit and income. GTA Mortgage matters helps Mississauga families get out of debt; offering mortgages and other financial solutions for those who don’t own their homes. For more information visit www.gtamortgagematters.com.
If you are in debt you are probably growing tired of paying high credit card interest or worse, figuring out how you are going to make the monthly payments on your mounting debt load.
Those who have maintained at least their minimum monthly payments to credit, have likely kept their credit reports intact and so will have more options than those who have started making late payments to creditors.
That said those who manage to scrape by making their monthly payments to their large debt loads, may eventually reach a breaking point. What can you do to get out of debt?
If you want to get out of debt in Mississauga and own a home in Mississauga (or anywhere else in the G-T-A), you may be able to refinance your home and either take out a new first mortgage or personal line of credit to pay off all of your debt. A Mississauga mortgage brokerage helps families in Mississauga get out of debt. A new mortgage will save you interest and reduce your monthly payments, increasing cash flow.
What if you don’t own your home? Well now it’s time to look at how much debt you have accumulated. There are other options to get out of debt in Mississauga that include personal lines of credit, making a repayment and settlement proposals to your creditors and more…
Banks preference clients who have lots of income, savings, assets and investments so approaching a bank for a debt consolidation can be a humbling experience. If you are not approved your banker is not going to be qualified to tell you what to do next.
What’s important is that you work with a company who works with all types of credit and income. GTA Mortgage matters helps Mississauga families get out of debt; offering mortgages and other financial solutions for those who don’t own their homes. For more information visit www.gtamortgagematters.com.
Tuesday, September 21, 2010
Fixed vs. Variable Rate Mortgage – What Is The Right Answer For You?
You need to know the pros and cons of fixed vs. variable mortgage rates because this will help you decide which type of mortgage is the best answer for you.
Both of these types of mortgages have their advantages and their disadvantages. The best way to learn about all of the advantages and disadvantages is to do your homework.
Mortgage brokers can help you make the best decision possible because they have all the knowledge and information needed to help you make the smart choice for you. Trying to make the decision on your own can be done but talking to a professional will help you make the most informed decision.
Advantages of fixed rate mortgages:
1. When you get a fixed rate mortgage you will have security knowing what your payments will be each month until the end of the fixed period. This is a big advantage for a lot of people because it gives you the chance to plan your financial future easier.
2. If interest rates were to increase then you will be safe because your payments will not increase since you are at a fixed rate for a certain period of time.
Disadvantages of fixed rate mortgages:
1. If interest rates should decrease you can’t take advantage of this because you are on a fixed rate for a certain amount of time.
2. You will have to pay a higher interest rate than the SVR or standard variable rate in order to get the fixed rate you want.
Advantages of variable rate mortgages:
1. When you have a variable rate loan it will follow the base interest rates. If the rates are low then this is a big advantage for you because depending on the lender you have, it can make your base rates fall and this will help to reduce your monthly payments.
Disadvantages of variable rate mortgages:
1. Since your rates follow the base rates if they should rise then this means that your rates will also rise and in turn your monthly payments will also be higher.
Now that you have this important information about mortgage interest rates you will have a much easier time making your decision. Just make sure you take your time and do your homework and be smart by talking to a mortgage professional.
For more information visit www.gtamortgagematters.com.
Both of these types of mortgages have their advantages and their disadvantages. The best way to learn about all of the advantages and disadvantages is to do your homework.
Mortgage brokers can help you make the best decision possible because they have all the knowledge and information needed to help you make the smart choice for you. Trying to make the decision on your own can be done but talking to a professional will help you make the most informed decision.
Advantages of fixed rate mortgages:
1. When you get a fixed rate mortgage you will have security knowing what your payments will be each month until the end of the fixed period. This is a big advantage for a lot of people because it gives you the chance to plan your financial future easier.
2. If interest rates were to increase then you will be safe because your payments will not increase since you are at a fixed rate for a certain period of time.
Disadvantages of fixed rate mortgages:
1. If interest rates should decrease you can’t take advantage of this because you are on a fixed rate for a certain amount of time.
2. You will have to pay a higher interest rate than the SVR or standard variable rate in order to get the fixed rate you want.
Advantages of variable rate mortgages:
1. When you have a variable rate loan it will follow the base interest rates. If the rates are low then this is a big advantage for you because depending on the lender you have, it can make your base rates fall and this will help to reduce your monthly payments.
Disadvantages of variable rate mortgages:
1. Since your rates follow the base rates if they should rise then this means that your rates will also rise and in turn your monthly payments will also be higher.
Now that you have this important information about mortgage interest rates you will have a much easier time making your decision. Just make sure you take your time and do your homework and be smart by talking to a mortgage professional.
For more information visit www.gtamortgagematters.com.
Best Mortgage For You!
The search for a universal “best mortgage” is an impossible quest, because what is great for one buyer may not work well for another. Choosing the very best financing option for your home purchase or re-finance loan is about knowing both your current and potential future needs, and finding the right mortgage to meet them. Having someone to work with who not only understands how to choose the best mortgage to meet certain needs, but also has access to a wide variety of lender information is a big asset. A Mortgage Broker is an excellent choice for anyone searching for a mortgage. Read More
Thursday, September 16, 2010
Softening Economy Should Slow the Rise of Bank Prime. August 6th, 2010
Canada’s Housing market is slowing and is expected to continue to slow as inventory rises. Supply of resale homes has risen by 3% in the second quarter of 2010, while demand has fallen 9% in the same time period.
In Ontario, we have observed a massive run up in housing prices this year. This was caused by changes that were made this year by the Federal and Provincial Government. In April CMHC introduced new rules and in July, the Province of Ontario introduced the HST (harmonized sales tax). These two major events were likely the cause of the massive run up in prices. Multiple offers being a regular occurrence in the first quarter of 2010, in addition to the lack of willing buyers has added fuel to the current decline in prices.
Housing sales in Toronto have fallen 34% in July alone when compared to June when prices had declined an average of 3.3%. Vancouver and Calgary where even worse and what’s interesting is that this is all happening during a time where Canadian Banks are still offering extremely low, fixed and variable interest rates. I expect that this trend will continue until at least the 2nd quarter of 2011.
Employment numbers for Canada and the US released today are also terrible. Canada had expected to gain 14,000 jobs and actually ended up losing 9,000 jobs. The Canadian unemployment rate has now edged up to 8%. The US was even worse. The US expected to lose only 61,000 jobs but actually lost 131,000 jobs.
I anticipate that we will most likely see one more interest rate hike this year. Mark Carney, the Governor of the Bank of Canada seems to be committed to seeing the Bank of Canada continue to raise interest rates in Canada, but I suspect that after the next interest rate hike, the rate increases may stop for some time. Carney will probably take a “wait and see approach” to see, how the Canadian economy will react to the interest rate increases and to see if the US will start to raise their interest rates. I don’t think that the US will look at increasing interest rates until at least 2012.
The Bank of Canada will only start raising rates again if the threat of inflation exists or if the US starts to tighten their belts. I don’t see this happening. If deflation sets in we could see low interest rates for some time and more stimulus spending. The two recent interest rate increases by the Bank of Canada has been more effective than anyone could have predicted, so more interest rate increases could have a negative effect on the economy which no one wants to see happen.
Canadians will need to feel stability, security and housing prices will have to stabilize before they will start borrowing again. Climbing interest rates will not achieve this result.
In recent news, the US has reported that that their housing market has not even hit the bottom yet. These reports have also had a negative effect being the cause of a lack of consumer confidence on our side of the border.
I was in Michigan last weekend helping to raise money for a children’s hospital and I can tell you that I did not see any signs of a bustling economy. In fact the Shopping Mall was all but empty on a Saturday afternoon. If Americans don’t start spending this will eventually spill over into Canada since they are our largest trading partner which will create further downward pressures which will only result in further belt tightening.
Paul Mangion
In Ontario, we have observed a massive run up in housing prices this year. This was caused by changes that were made this year by the Federal and Provincial Government. In April CMHC introduced new rules and in July, the Province of Ontario introduced the HST (harmonized sales tax). These two major events were likely the cause of the massive run up in prices. Multiple offers being a regular occurrence in the first quarter of 2010, in addition to the lack of willing buyers has added fuel to the current decline in prices.
Housing sales in Toronto have fallen 34% in July alone when compared to June when prices had declined an average of 3.3%. Vancouver and Calgary where even worse and what’s interesting is that this is all happening during a time where Canadian Banks are still offering extremely low, fixed and variable interest rates. I expect that this trend will continue until at least the 2nd quarter of 2011.
Employment numbers for Canada and the US released today are also terrible. Canada had expected to gain 14,000 jobs and actually ended up losing 9,000 jobs. The Canadian unemployment rate has now edged up to 8%. The US was even worse. The US expected to lose only 61,000 jobs but actually lost 131,000 jobs.
I anticipate that we will most likely see one more interest rate hike this year. Mark Carney, the Governor of the Bank of Canada seems to be committed to seeing the Bank of Canada continue to raise interest rates in Canada, but I suspect that after the next interest rate hike, the rate increases may stop for some time. Carney will probably take a “wait and see approach” to see, how the Canadian economy will react to the interest rate increases and to see if the US will start to raise their interest rates. I don’t think that the US will look at increasing interest rates until at least 2012.
The Bank of Canada will only start raising rates again if the threat of inflation exists or if the US starts to tighten their belts. I don’t see this happening. If deflation sets in we could see low interest rates for some time and more stimulus spending. The two recent interest rate increases by the Bank of Canada has been more effective than anyone could have predicted, so more interest rate increases could have a negative effect on the economy which no one wants to see happen.
Canadians will need to feel stability, security and housing prices will have to stabilize before they will start borrowing again. Climbing interest rates will not achieve this result.
In recent news, the US has reported that that their housing market has not even hit the bottom yet. These reports have also had a negative effect being the cause of a lack of consumer confidence on our side of the border.
I was in Michigan last weekend helping to raise money for a children’s hospital and I can tell you that I did not see any signs of a bustling economy. In fact the Shopping Mall was all but empty on a Saturday afternoon. If Americans don’t start spending this will eventually spill over into Canada since they are our largest trading partner which will create further downward pressures which will only result in further belt tightening.
Paul Mangion
Tuesday, August 31, 2010
Things You Should Know About Second Mortgages
A second mortgage is an additional mortgage on a property where a primary mortgage already exists. Second mortgages are secured against the same equity as the first mortgages. Therefore the second mortgage is based on the property’s current value and the amount that is still owed. Second mortgages are often granted by the lender of the first, but can be obtained from a different lender.
Read more about Tornto second mortgages
Read more about Tornto second mortgages
The place to go for cheap mortgage rates!
It’s easy to find cheap mortgage rates advertised in a hundred places online or in local media, but cheap mortgage rates are not all created equal. Not only will there be several different interest rates offered by similar companies in a geographical area, but there is also quite a large difference between mortgage offers even within the same lending company!
Read more about mortgage rates
Read more about mortgage rates
Friday, August 6, 2010
Softening Economy Should Slow the Rise of Bank Prime. August 6th, 2010
Canada’s Housing market is slowing and is expected to continue to slow as inventory rises. Supply of resale homes has risen by 3% in the second quarter of 2010 while demand has fallen 9% during the same time period. The new CMHC rules that came into effect April 19th, 2010 combined with the HST caused a massive run up in prices with multiple offers being the norm in the first quarter of 2010 which added fuel to the decline in prices and the lack of willing buyers.
Housing sales in Toronto have fallen 34% In July from the previous month and prices have declined an average of 3.3%. Vancouver and Calgary where even worst and this is all happening when fixed and variable interest rates are extremely low. I would expect this trend to continue until at least the 2nd quarter of 2011.
Employment numbers for Canada and the US released today are also terrible with Canada expecting to gain 14k jobs but actually loosing 9k jobs and the unemployment rate edging up to 8%. The US was even worst as they expected to lose only 61k jobs but actually lost 131k jobs. We will most likely see one more interest rate hike this year since Carney seems to be committed to this but then I expect rate increases to stop. Carney will have to wait to see going forward how the Canadian economy unfolds and for the US to start raising rates which at this point will not happen until 2012 and beyond.
The Bank of Canada can only start raising rates again if the threat of inflation is there and the US starts it’s tightening but from my perspective I don’t see this happening and if deflation sets in we could see low interest rates for some time and more stimulus spending and easy money. The two increases the Bank of Canada has done already has worked better and faster than anybody could have predicted so more interest rate increases could have a negative effect on the economy which nobody wants.
People will need to feel stable with some security and housing prices will have to stabilize before they will start borrowing again and climbing interest rates will not provide this effect and news from the US that there housing market has not even hit the bottom yet will only cause more negative consumer confidence.
I was in Michigan last weekend helping to raise money for a children’s hospital over there and I can tell you I did not see any signs of a bustling economy there. In fact the Shopping Mall was all but empty on a Saturday afternoon. If Americans don’t start spending this will eventually spill over into Canada since they are our largest trading partner and further downward pressures which will ultimately create more belt tightening.
Paul Mangion
http://www.gtamortgagematters.com/9961/softening-economy-should-slow-the-rise-o.aspx
Housing sales in Toronto have fallen 34% In July from the previous month and prices have declined an average of 3.3%. Vancouver and Calgary where even worst and this is all happening when fixed and variable interest rates are extremely low. I would expect this trend to continue until at least the 2nd quarter of 2011.
Employment numbers for Canada and the US released today are also terrible with Canada expecting to gain 14k jobs but actually loosing 9k jobs and the unemployment rate edging up to 8%. The US was even worst as they expected to lose only 61k jobs but actually lost 131k jobs. We will most likely see one more interest rate hike this year since Carney seems to be committed to this but then I expect rate increases to stop. Carney will have to wait to see going forward how the Canadian economy unfolds and for the US to start raising rates which at this point will not happen until 2012 and beyond.
The Bank of Canada can only start raising rates again if the threat of inflation is there and the US starts it’s tightening but from my perspective I don’t see this happening and if deflation sets in we could see low interest rates for some time and more stimulus spending and easy money. The two increases the Bank of Canada has done already has worked better and faster than anybody could have predicted so more interest rate increases could have a negative effect on the economy which nobody wants.
People will need to feel stable with some security and housing prices will have to stabilize before they will start borrowing again and climbing interest rates will not provide this effect and news from the US that there housing market has not even hit the bottom yet will only cause more negative consumer confidence.
I was in Michigan last weekend helping to raise money for a children’s hospital over there and I can tell you I did not see any signs of a bustling economy there. In fact the Shopping Mall was all but empty on a Saturday afternoon. If Americans don’t start spending this will eventually spill over into Canada since they are our largest trading partner and further downward pressures which will ultimately create more belt tightening.
Paul Mangion
http://www.gtamortgagematters.com/9961/softening-economy-should-slow-the-rise-o.aspx
Tuesday, August 3, 2010
Whether you’re a first-time home buyer, or are looking to second mortgage or re-finance, the very first question you’ll have is where to go to find the best mortgage rates in the Toronto area.
Banks are always happy to sit down and discuss their mortgage rates with you, and this can be a good option if you don’t want to have to decide between several different choices. However, banks can only give you the mortgage rates for their bank, and although they claim to be very competitive, they often are not. This means that the choices you will be considering may in fact, not be the best.
Read More.....
Banks are always happy to sit down and discuss their mortgage rates with you, and this can be a good option if you don’t want to have to decide between several different choices. However, banks can only give you the mortgage rates for their bank, and although they claim to be very competitive, they often are not. This means that the choices you will be considering may in fact, not be the best.
Read More.....
Tuesday, July 20, 2010
Bank Of Canada Increases Overnight Lending Rate
The BOC increased the overnight lending rate by a 1/4% to .75%. You can expect Bank Prime to follow and go to 2.75% which will have everyone with a variable rate mortgage or line of credit paying more. The BOC made some comments suggesting that they expect the economy to slow which will slow the rate at which they inrease the rate further. September 8th is the next meeting so uless there is some really strong indicators for July and August it is unlikely they will need to raise rates in September. Talk to me Paul Mangion, a Toronto Mortgage Broker or click to read the press release. 416-204-0156
Thursday, July 8, 2010
The US fear of a Double Dip recession and What this could mean for Toronto Mortgage Rates
US Fears of a Double Dip recession are slowly becoming a reality. Based on Data released on Housing, Employment, construction and manufacturing it is becoming quite clear that things will more likely get worse before they get better with the world’s largest economy facing a huge uphill battle.
One of the main indicators is housing sales which had a 30% month over month decline which happens to be the largest on record. US Unemployment numbers spiked month over month as well so the employment market will remain under stress for some time.
The recovery we thought we had was not accompanied with job growth which is needed for long term growth. A jobless recovery is not practical or likely and the stimulus spending has done nothing more than create a short term recovery. With western governments preparing to tighten their spending and reduce deficits the economy has a chance to remain stagnant, but more than likely will decline.
What does all this mean for Canada, a country that has done relatively well during this crisis and subsequent recession. Well history can tell us that Canada is usually one to two years behind the US since most of our exports go to the US. If this assumption is true then Canada has not really hit the bottom yet. So further economic declines will keep inflation low with a period of deflation possible. Giving the Bank of Canada no reason to raise Toronto mortgage rates in the short term with very modest increases possible in the foreseeable future.
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One of the main indicators is housing sales which had a 30% month over month decline which happens to be the largest on record. US Unemployment numbers spiked month over month as well so the employment market will remain under stress for some time.
The recovery we thought we had was not accompanied with job growth which is needed for long term growth. A jobless recovery is not practical or likely and the stimulus spending has done nothing more than create a short term recovery. With western governments preparing to tighten their spending and reduce deficits the economy has a chance to remain stagnant, but more than likely will decline.
What does all this mean for Canada, a country that has done relatively well during this crisis and subsequent recession. Well history can tell us that Canada is usually one to two years behind the US since most of our exports go to the US. If this assumption is true then Canada has not really hit the bottom yet. So further economic declines will keep inflation low with a period of deflation possible. Giving the Bank of Canada no reason to raise Toronto mortgage rates in the short term with very modest increases possible in the foreseeable future.
Read More...
Monday, July 5, 2010
Why use a Mortgage Broker in Toronto
Whether you’re in the market for a new house or a first time home buyer, you’ll want to be sure you receive the very best mortgage rates, and terms that meet your specific needs. If you’ve never used a mortgage broker in the Toronto area before, this is a great time to start! Of course not every mortgage broker will be experienced enough to help you meet your goals, so in Toronto be sure to visit Paul Mangion of The Mortgage Center at www.gtamortgagematters.com.
A good mortgage broker for real estate in Toronto will be more than just well qualified. It’s imperative when looking for a mortgage broker around Toronto, that you consider a few key points. Hiring a mortgage broker to help with financing your new home in Toronto requires a mortgage broker who has been working in the Greater Toronto Area and has established business contacts. You will likely want to have referrals to a lawyer and other services. Knowing you’re working with a mortgage broker who knows companies in the Toronto area that can help your home purchase go smoothly, will bring you peace of mind.
Additionally, you’ll want a mortgage broker in Toronto who really listens to the needs of their client. All too often, inexperienced brokers will fast track a buyer into a mortgage just to close the deal. This can leave the client frustrated since the terms may not be what they had wanted. A great mortgage broker in Toronto is one who will listen to you, share with you the options that meet your requirements and will take the time to thoroughly explain what each option means in ways you can understand. Hiring a mortgage broker anywhere in Toronto who does not spend the necessary time making sure your needs are heard and met, can be disastrous.
At The Mortgage Center, you’ll meet Paul Mangion, a mortgage broker who served the Toronto area, and who has both the expertise and the people-skills to get the job done well. You can be assured that you have not only hired someone who has your best interests at heart, but also knows the mortgage industry inside and out. You’ll also be assured that the mortgage broker you hire for your house purchase in Toronto will be well connected with the other services you’ll need to make your purchase a smooth one. Visit Paul Mangion of The Mortgage Center, at www.gtamortgagematter.com today, and hire a great mortgage broker in Toronto to assist you with financing your new home.
Paul Mangion.
http://www.paulmangion.com/
A good mortgage broker for real estate in Toronto will be more than just well qualified. It’s imperative when looking for a mortgage broker around Toronto, that you consider a few key points. Hiring a mortgage broker to help with financing your new home in Toronto requires a mortgage broker who has been working in the Greater Toronto Area and has established business contacts. You will likely want to have referrals to a lawyer and other services. Knowing you’re working with a mortgage broker who knows companies in the Toronto area that can help your home purchase go smoothly, will bring you peace of mind.
Additionally, you’ll want a mortgage broker in Toronto who really listens to the needs of their client. All too often, inexperienced brokers will fast track a buyer into a mortgage just to close the deal. This can leave the client frustrated since the terms may not be what they had wanted. A great mortgage broker in Toronto is one who will listen to you, share with you the options that meet your requirements and will take the time to thoroughly explain what each option means in ways you can understand. Hiring a mortgage broker anywhere in Toronto who does not spend the necessary time making sure your needs are heard and met, can be disastrous.
At The Mortgage Center, you’ll meet Paul Mangion, a mortgage broker who served the Toronto area, and who has both the expertise and the people-skills to get the job done well. You can be assured that you have not only hired someone who has your best interests at heart, but also knows the mortgage industry inside and out. You’ll also be assured that the mortgage broker you hire for your house purchase in Toronto will be well connected with the other services you’ll need to make your purchase a smooth one. Visit Paul Mangion of The Mortgage Center, at www.gtamortgagematter.com today, and hire a great mortgage broker in Toronto to assist you with financing your new home.
Paul Mangion.
http://www.paulmangion.com/
Wednesday, June 16, 2010
Bellow is an article taken from the Globe & Mail Today that is very interesting to read. However I do want to point out that the article quoted CMHC who was the only analyst that predicted an increase in the housing sector, all major banks predicted a reduction in activity and prices. The thing that should concern us even more is the fact that US home sales are not improving, with prices still dropping. The facts are most banks have abandoned the selling of foreclosed homes and are now renting them out should be a sign of how things are not improving. Canada makes and supplies many of the building products used in US home construction including lumber. Since are economy relies heavily on exports to the US it is hard to imagine Canada climbing out of a recession during a period of Jobless growth and once the spending taps are closed this will become more evident. Of course these are my opinions based on the facts and how I interpret them so I will continue to provide you with the facts so you can make your own conclusions. I still sell 90% variable rate products which start at .75% below prime (1.75%) and in my opinion is the way to go in the current market conditions so click here if you would like to know more.
Paul Mangion
Toronto Mortgage Broker
416-204-0156
paul@paulmangion.com
http://www.gtamortgagematters.com/
Paul Mangion
Toronto Mortgage Broker
416-204-0156
paul@paulmangion.com
http://www.gtamortgagematters.com/
Tuesday, June 15, 2010
High Ratio Mortgage Financing with Toronto Mortgage Brokers
Mortgage Loan Insurance Is Required By Lenders in Canada with less than 20% down payment
When you want to buy a house getting a mortgage loan thru a Toronto Mortgage Broker is the way that most people should choose. Before you get a loan to purchase a home you need to understand that mortgage loan insurance will be required by lenders if you have less than 20% down payment.
This loan insurance is needed because it protects the lender in the event of a default by you on the mortgage payments, and there is a deficiency in the sale. This insurance is not like all other types of insurance due to the fact that a premium payment is paid once upfront and can be added to the mortgage.
Read More About Mortgage insurance
When you want to buy a house getting a mortgage loan thru a Toronto Mortgage Broker is the way that most people should choose. Before you get a loan to purchase a home you need to understand that mortgage loan insurance will be required by lenders if you have less than 20% down payment.
This loan insurance is needed because it protects the lender in the event of a default by you on the mortgage payments, and there is a deficiency in the sale. This insurance is not like all other types of insurance due to the fact that a premium payment is paid once upfront and can be added to the mortgage.
Read More About Mortgage insurance
Thursday, May 20, 2010
A credit card company trying to save you money! Yeah right!
It was reported in the Globe and Mail that MBNA has increased their minimum payment by 66% in an effort to reduce their exposure to the record debt levels that Canadian’s carry and not to save their clients money by paying less interest as they claim. You can be sure that other issuers will follow, especially American Issuers as they struggle with their own operations in the USA.
For many people this will be enough to put them into a negative cash flow. So more than ever people will need to refinance and there will be less concern of how much the penalties are more concern about increasing cash flow.
There may also be a concern of rising interest rates that have prompted them to be pro active on this issue but while there will be higher rates in the future I doubt they will be immediate as there are so many negative things happening in the world today that runaway inflation in Canada is not likely to occur and they are still running a risk of deflation so the risk of quick increases is minimal.
Paul Mangion
M.O.S. MortgageOne Solutions Ltd.
http://www.gtamortgagematters.com/
paul@paulmangion.com
For many people this will be enough to put them into a negative cash flow. So more than ever people will need to refinance and there will be less concern of how much the penalties are more concern about increasing cash flow.
There may also be a concern of rising interest rates that have prompted them to be pro active on this issue but while there will be higher rates in the future I doubt they will be immediate as there are so many negative things happening in the world today that runaway inflation in Canada is not likely to occur and they are still running a risk of deflation so the risk of quick increases is minimal.
Paul Mangion
M.O.S. MortgageOne Solutions Ltd.
http://www.gtamortgagematters.com/
paul@paulmangion.com
Monday, May 17, 2010
Why Is It A Smart Idea To Refinance Your Debt?
Anyone that lives in Mississauga, Ontario or anywhere for that matter needs to know why it is definitely a smart idea to refinance your debt. There are many reasons why refinancing is a good idea and understanding the most important reasons will help you see why it is a smart decision for you.
Here are the most important reasons why refinancing is definitely a smart idea for most people these days.
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Here are the most important reasons why refinancing is definitely a smart idea for most people these days.
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Friday, May 14, 2010
A Clear Picture Of What A Reverse Mortgage Is
Have you heard of a reverse mortgage but are not sure exactly what this is or if it could benefit you? Then you need to know more important information about this type of mortgage to see if you can take advantage of it.
People that live in Mississauga, Ontario and Canada can also take advantage of it because this could be a great option for you. You first need to understand exactly what this type of mortgage is.
Everyone knows that with a regular mortgage you have a monthly payment that needs to be made. With the reverse option you won’t make any payment but will instead get a payment sent to you.
You are basically turning the equity that is in your home into cash that you can use for whatever you want to use it for.
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People that live in Mississauga, Ontario and Canada can also take advantage of it because this could be a great option for you. You first need to understand exactly what this type of mortgage is.
Everyone knows that with a regular mortgage you have a monthly payment that needs to be made. With the reverse option you won’t make any payment but will instead get a payment sent to you.
You are basically turning the equity that is in your home into cash that you can use for whatever you want to use it for.
Read More
Thursday, May 13, 2010
Variable Vs. Fixed - what everyone should know!
Since fixed rates started to climb and news of higher interest rates are on the horizon there has been one question on everybody's mind: Should I stay variable or go fixed?
Over the last 20 years borrowers have saved money by choosing variable mortgage products. But a risk of rising interest rates, as the economy recovers and inflation rises, means there is a chance on the horizon that variable rates could climb high enough and allow fixed rates to actually be the cheaper alternative at this time.
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Over the last 20 years borrowers have saved money by choosing variable mortgage products. But a risk of rising interest rates, as the economy recovers and inflation rises, means there is a chance on the horizon that variable rates could climb high enough and allow fixed rates to actually be the cheaper alternative at this time.
Read More
Monday, May 10, 2010
2010/2011 Home Prices Forecast
The latest housing forecast from TD Economics leaves 2010 totals for sales and prices in Canada largely the same as its previous expectations in December, what has changed though is TD now expects a bigger change between a very hot first half of the year and a predicted cooler second half. The forecasting unit of Toronto-Dominion Bank released a report on Wednesday that maintained its call for housing resale’s this year to rise 2.1% to 475,000, and the average price to gain 9% to $349,000.
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Paul Mangion
http://www.gtamortgagematters.com/
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Paul Mangion
http://www.gtamortgagematters.com/
Tuesday, April 13, 2010
Whatever Happened to all those subprime mortgages?
Unfortunately they are still around. They have been popping up all over the country and causing major problems for the homeowners that took them out and it is going to get worst as the bulk of them are up for renewal over the next two years.
Fortunately the subprime market never grew to more than 5% of the total mortgage market but 5% is still enough to cause some major problems for those less fortunate. It is estimated that there are still another 30,000 of these mortgages coming due within the next 24 months....
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Paul Mangion
M.O.S. MortgageOne Solutions Ltd.
http://www.gtamortgagematters.com/
paul@paulmangion.com
Fortunately the subprime market never grew to more than 5% of the total mortgage market but 5% is still enough to cause some major problems for those less fortunate. It is estimated that there are still another 30,000 of these mortgages coming due within the next 24 months....
Read More
Paul Mangion
M.O.S. MortgageOne Solutions Ltd.
http://www.gtamortgagematters.com/
paul@paulmangion.com
Friday, April 9, 2010
Higher Interests Rates are in the cards for Canada but not as high as some are predicting!
OTTAWA - With the Canadian economy doing surprisingly well over the past six months, many see higher interest rates from the Bank of Canada in the not so distant future, but according to a report released Thursday from CIBC's chief economist Avery Shenfeld, rates are likely to remain at a very low 2.5% through to 2011.
In CIBC World Markets' latest Global Positioning Strategy report, Mr. Shenfeld lists several reasons for Bank of Canada Governor Mark Carney to keep interest rates subdued after July. He points out that the U.S. will probably have a more gradual approach to raising rates and if Canada gets too far ahead, that could send the Canadian dollar soaring.
"While factories are recovering in Canada alongside a global industrial revival, output remains nearly 20% below the pre-recession peak, and wages are now substantially above those stateside without the productivity gains to match. There's only so much of a competitive challenge that non-resource exporters can take in short order," Mr. Shenfeld said.
He also pointed out that inflation is not expected to rise much further and stimulus spending is expected to be reigned in by governments - including Canada's - which will slow growth.
"If the U.S., the U.K., and Japan all move from huge stimulus to even modest restraint, Canada will feel it in our export prospects come 2011," Mr. Shenfeld pointed out.
Click here to read more!
As Quoted in The Financial Post.
In CIBC World Markets' latest Global Positioning Strategy report, Mr. Shenfeld lists several reasons for Bank of Canada Governor Mark Carney to keep interest rates subdued after July. He points out that the U.S. will probably have a more gradual approach to raising rates and if Canada gets too far ahead, that could send the Canadian dollar soaring.
"While factories are recovering in Canada alongside a global industrial revival, output remains nearly 20% below the pre-recession peak, and wages are now substantially above those stateside without the productivity gains to match. There's only so much of a competitive challenge that non-resource exporters can take in short order," Mr. Shenfeld said.
He also pointed out that inflation is not expected to rise much further and stimulus spending is expected to be reigned in by governments - including Canada's - which will slow growth.
"If the U.S., the U.K., and Japan all move from huge stimulus to even modest restraint, Canada will feel it in our export prospects come 2011," Mr. Shenfeld pointed out.
Click here to read more!
As Quoted in The Financial Post.
Tuesday, April 6, 2010
How The Market Will Fix MLS Rules.
The Commissioner of Competition recently made an application to the Competition Tribunal claiming that the Canadian Real Estate Association (CREA) uses control of the Multiple Listing Service (MLS) to impose exclusionary restrictions on the use of MLS.
The commissioner claims CREA rules on MLS lessen or prevent competition and deny consumers the benefits of competition in the Canadian residential real estate services market. CREA maintains it has adopted the MLS rule changes proposed by the commissioner. However, the commissioner remains unsatisfied with CREA's changes. It has sought redress from the tribunal.
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The commissioner claims CREA rules on MLS lessen or prevent competition and deny consumers the benefits of competition in the Canadian residential real estate services market. CREA maintains it has adopted the MLS rule changes proposed by the commissioner. However, the commissioner remains unsatisfied with CREA's changes. It has sought redress from the tribunal.
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Tuesday, March 2, 2010
Canada Leaves Interest Rates Unchanged March 2, 2010
Bank of Canada maintains overnight rate target at 1/4 per cent and reiterates conditional commitment to hold current policy rate until the end of the second quarter of 2010.
The Bank of Canada today announced that it is maintaining its target for the overnight rate at 1/4 per cent. The Bank Rate is unchanged at 1/2 per cent and the deposit rate is 1/4 per cent.
The ongoing global economic recovery is being driven largely by strong domestic demand growth in many emerging-market economies and supported in advanced economies by exceptional monetary and fiscal stimulus, as well as extraordinary measures taken to support financial systems.
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Paul Mangion
The Bank of Canada today announced that it is maintaining its target for the overnight rate at 1/4 per cent. The Bank Rate is unchanged at 1/2 per cent and the deposit rate is 1/4 per cent.
The ongoing global economic recovery is being driven largely by strong domestic demand growth in many emerging-market economies and supported in advanced economies by exceptional monetary and fiscal stimulus, as well as extraordinary measures taken to support financial systems.
Read More
Paul Mangion
Tuesday, February 23, 2010
Welcome to my BLOG. I will try to answer any questions within 24hrs. If you require a quicker response please email me at paul@paulmangion.com or visit my website www.gtamortgagematters.com
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