GTA MORTGAGE MATTERS

Buying a New Home Blog Series – Part One – Low Interest Mortgage Approvals

2012-02-07T07:47:00.000-08:00

Buying a new home is exciting but involves preparation if you want to get the best deal. Getting the best deal will mean getting a good price on your home, negotiating a low interest mortgage, getting competitive quotes on homeowners insurance and mortgage protection insurance and more.

A low interest mortgage when buying a home will be important because a mortgage payment for most people represents their largest debt and monthly payment.

Mortgage interest rates in Canada have been so low for so long that buying a new home is very affordable and in some cases you may be able to buy a new home that bears a mortgage payment comparable with a monthly payment for rent.

When thinking about how much of a mortgage payment you can afford, it is important to remember that in addition to a mortgage payment you will also have a monthly payment to property taxes, hydro, gas and homeowners insurance. This can really add up and because utility costs in Ontario have increased dramatically over the past few years, it is important to get a low interest mortgage approval that gives you a low monthly mortgage payment so that if your utility costs rise, you can still afford to carry your home.

There are many different types of low interest mortgage products out there. Your mortgage interest rate will often depend on the type of mortgage product that you choose and the amount of your down payment.

Those who want to take advantage of the current historically low interest rates but may not have planned to buy a home may not have substantial savings accumulated to cover the cost of a down payment. There is no money down programs offered by many banks that enable families who don’t have a down payment to be able to buy a new home.

Before buying a new home with a no money down mortgage, you must consider that this will not get you the lowest rate mortgage available. This is because in most cases, a no money down mortgage will involve a slightly higher interest rate because the bank will recover the equivalent of a 5% down payment through interest in the first 5 years of your mortgage. For example, right now National Bank’s 5 year fixed mortgage interest rate is 3.49% if you have a down payment of at least 5%, whereas, their mortgage rate with no money down bears a 5 year fixed mortgage rate of 5.29%. This represents about a $300 difference in monthly payment to the homeowner.

Also, when buying a new home choosing a variable rate mortgage is often cheaper than choosing a fixed rate mortgage. Variable rate mortgages are less interest because they float with prime. The homeowners carry some risk because if interest rates rise, so will the variable rate on the mortgage. The safest bet is often to choose a low variable rate mortgage with an option to lock in. This allows you to receive the lowest interest rate with the safety net that if rates start to rise, you can lock into a higher fixed rate mortgage.

Buying a new home is often the single biggest purchase that an individual will make. For this reason it makes sense to research, prepare and establish a relationship with a local mortgage broker who can educate you on what rates are available with all the banks so that you can make the best informed decision.

Ontario Mortgage Financing A-Z – What You Need to Know to Get Approved for the Best Mortgage

2012-01-23T11:33:00.000-08:00

Ontario mortgage financing can be complex so it pays to be an informed consumer. If you want to get approved for the best mortgage, start doing research in advance of house shopping to make sure that you understand everything you will need to know. This will reduce the likelihood of finding a home and then finding out that you don’t qualify for Ontario mortgage financing.

Before looking to buy a home, the first thing you need to know to get approved for the best mortgage is that you are going to shop around for a house that you can afford. Lenders will require that your mortgage payment does not exceed 32% of your gross monthly income. A great way to find out how much of a home you can afford to finance is to perform the following steps:

1. Take your gross monthly income and then multiply it by 32%.

2. There are mortgage calculators online that you can use to calculate mortgage payments.

3. Input the amount of mortgage that you are looking for and then compare it to your initial calculation of 32% of your gross monthly income.

4. If your mortgage is producing a payment that is greater than the above calculation, reduce it until the monthly payment fits within the 32% guideline.

5. The difference in the amount of the mortgage within the 32% guideline and the amount of mortgage you had initially planned on financing will be the increased amount of down payment that you will need to purchase a home at the amount of purchase you had initially intended.

The above exercise may be a rude awakening but a worthy one because this will reduce the chance of making an offer and deposit on a home and then getting to closing only to learn that you cannot get a mortgage in the amount of money that you need.

You also should request your credit report from Equifax and Trans Union. You want to ensure that you address any issue or errors on your credit report before making an offer and deposit on a home.

Another thing you need to know to get approved for the best mortgage in Ontario is that a bank will require you to verify your income on closing. This means that they may ask for a paystub and job letter. If your bank has any concern over the income verification that you provide, they may ask you to provide two years of Notice of Assessments from The Canada Revenue Agency.

The bank will also ask for proof of down payment. Proof of down payment consists of proof that you have the money for your down payment in the bank, proof of an investment or if the down payment is being made to you as a gift, they will ask you for a gift letter from the individual who is gifting you your down payment.

As a good rule of thumb, speak with a Mortgage Broker before you start house shopping. A Mortgage Broker cannot only prepare you for what will be needed to get approved for a mortgage but can also obtain a mortgage pre-approval from a bank before you start house shopping. They can review your credit and income to ensure that you qualify for a mortgage to finance a home and provide you with a list of the items that you will need to ensure that you can get approved for the best mortgage.

For more information about Ontario mortgage financing and what you need to know to get approved for the best mortgage please call Paul Mangion at 416-204-0156 or visit www.gtamortgagematters.com.

How to Get a Good Credit Rating to Get Approved for a Low Interest Mortgage in Ontario

2012-01-18T07:50:00.000-08:00

If you would like to get approved for a low interest mortgage in Ontario, you will need to have decent credit. In Ontario and across Canada, if you plan to purchase a home with less than 25% down payment, you will have to qualify for high ratio mortgage insurance through The Canadian Mortgage and Housing Corporation (CMHC).

CMHC high ratio mortgage insurance insures the bank so that if you default on your mortgage, the bank can make an insurance claim for the money that they lose if they sell your home and there is a short fall. A bank in Canada cannot finance a mortgage with less than a 25% down payment without CMHC Mortgage Insurance. Mortgage investment corporations and finance companies that are not owned by banks can charge slightly higher interest rates.

This means that when you apply to get approved for a low interest mortgage in Ontario with a bank, your credit application will be scrutinized by both CMHC and your bank. If CMHC says that they will not high ratio insure your mortgage, then your bank won’t approve your mortgage financing.

Here is how you can get a good credit rating to get approved for a low interest mortgage in Ontario.

First, most banks have a minimum credit score requirement in order for you to even qualify for a low interest mortgage in Ontario, or any mortgage at all for that matter. The minimum credit score required by the bank is usually 680. This means if your credit score is less than 680, the bank may not submit your application to CMHC and may decline your mortgage application outright.

Many factors go into having a good credit rating. These factors include the number of applications that you have made for credit in any given calendar year, your payment habits, how you use the credit you have, the balances on your credit cards in proportion to your credit limits, the amount that you owe to your creditors and the amount of credit available to you.

If you want to know how to get a good credit rating to get approved for a low interest mortgage in Ontario, your first step is to know what’s on your credit report. You can request your credit report from Equifax and Trans Union online. If you request your credit report from Equifax, make sure to request a credit report that includes your FICO score because your FICO score is your credit score. Your credit report will show you what information your creditors are reporting to your credit report. If there is any information that is incorrect, file a dispute with the credit reporting agency online.

Even if you only have a single credit card that has a balance that is over 75% of your credit limit, work on a plan to pay it down below 75% below the credit limit. If you have a number of credit cards that you don’t use, close some of them. If you have a number of inquiries or late payments reporting to the credit report, this is a problem that only time can heal. You credit score will be impacted by credit inquires in the past 12 months, so if you have had many, you will need 12 months to pass without credit inquiries before your credit score reflects the improved behaviour. With respect to late payments, you will need at least 2-3 years of good payment habits after having late payments to see significant improvement to your credit score.

For more information about how to get a good credit rating to get approved for a low interest mortgage in Ontario please visit www.gtamortgagematters.com or call Paul Mangion at 416-204-0156.

Qualify for the Best Ontario Mortgage Rate by Organizing Your Finances and Having the Best Credit

2012-01-10T08:48:00.000-08:00

Organizing your finances and having the best credit will ensure that you qualify for the best Ontario mortgage rate. When you apply for a mortgage with a bank, they will determine how hard they want to compete for your business based on the strength of your credit and finances.

There are key criteria that the bank will look for when determining whether or not you qualify for the best Ontario mortgage rate. These include:

1. Your stability which is how long you have maintained employment at the same job and residence.

2. The type of employment that you maintain and whether you are employed at a company or self- employed.

3. Whether or not you can prove your income. If you are self-employed, they may ask to see your Notice of Assessments that you receive back from the Canada Revenue Agency when filing your income tax returns.

4. Your gross debt service ratio (GDS) which is the amount of your housing payments balanced against your gross monthly income and expressed as a percentage.

5. Your total debt service ratio (TDS) which is the amount of your housing payment plus your monthly payments to debts balanced against your gross monthly income and expressed as a percentage.

6. Your overall unsecured debt load.

7. Your assets and savings.

8. The strength of your credit.

Having the best credit will mean:

1. Having a minimum credit score of 680 which is also referred to as a beacon or fico score.

2. Having at least 3 years of established credit.

3. Not having too many inquiries for credit. The general rule of thumb is not more than 4 credit inquiries in a given calendar year.

4. Not having late payments to debt.

5. Not having credit card balances that exceed 75% of the credit limits.

6. Not having too much debt.

7. Not having the ability to go into too much debt – too many credit cards and more.

If you want to organize your financings and work towards having the best credit so that you can qualify for the best Ontario mortgage rate, we recommend that you take the following steps:

· Request your Equifax credit report to check your credit score.

· If you have any credit card balances that are more than 75% of their limits, pay them down below 75% of their limits.

· If you have more than 4 credit inquiries in the past year, wait to apply for your mortgage until the 12^th month of the oldest inquiry of the 4.

· Close credit cards that you are not using.

· Use mortgage calculators to calculate the mortgage payments. Figure out a mortgage amount that your bank will consider you can afford to pay each month.

· Ensure that you can prove where your down payment is coming from.

Taking these steps will help you to work towards having the best credit so that you can qualify for the best Ontario mortgage rate. For more information about how to qualify for the best Ontario mortgage rate, organizing your finances and working towards having the best credit please visit www.gtamortgagematters.com or call Paul Mangion at 416-204-0156.

Ontario Mortgage Pre-Approval – Too Much Shopping Around For the Best Ontario Mortgage Can Harm Your Credit

2012-01-03T07:42:00.000-08:00

When planning to buy a home, it is a natural instinct to want to shop around for the best mortgage. The challenge is that too much shopping around for the best Ontario mortgages can actually harm your credit.

When purchasing a home you may approach your bank for mortgage financing. Even when applying for a pre-approval, they will ask for permission to obtain a credit report. Your realtor may also offer to get you a competitive mortgage pre-approval and they will also ask for permission to obtain your credit report. You may even decide to research mortgage interest rates and deals online and may choose to apply to another financial institution and at that time you will have to consent to having your credit report accessed.

When you provide consent to a financial institution, they will access your credit report on Equifax, Trans Union or both. Each time a financial institution accesses your credit report, an inquiry is reported to your credit report.

Inquiries directly affect your credit score. Too many inquiries will make it appear to a perspective lender as though you are a credit seeker or perhaps are having a credit problem. The problem is that the financial institution will only see the date and the name of the financial institution on the inquiry. They will not know what type of credit you applied for. If a financial institution sees several inquiries in one month, Royal Bank, BMO, TD Canada Trust and CIBC for example, for all they know, you have applied for credit cards. Should you be approved for unsecured credit by all of the companies who have requested inquiries, then you may be in a position to go into more debt than what your credit report reflects on the date that a lender requests your credit report.

The less inquiries you have on your credit report at the time you apply for an Ontario mortgage pre-approval, the better. Fewer inquiries are a sign of stability to a perspective lender and indicate that you are not a credit seeker. Too much shopping around for the best mortgage can actually harm your credit and your ability to get a mortgage altogether.

Generally, the credit score will be impacted based on the number of credit inquiries in the past 12 months. Usually any more than 4 inquiries in a 12 month period are considered a lot and will begin to impact your credit score. You can find out how many inquiries have been made to your credit report by requesting your credit report from Equifax and/or Trans union. Equifax’s data is most important because more lenders rely on Equifax data than Trans union.

One way to reduce the number of inquiries to your credit report when shopping around for the best Ontario mortgage is to deal with a Mortgage Broker. A good Mortgage Broker will work with all of the banks and will pull your credit report a single time, then submitting it to the banks to obtain a competitive mortgage pre-approval for you. Mortgage Brokers are also often paid by the banks, so in many cases you will not have to pay them a fee.

For more information about Ontario mortgage pre-approval and about how too much shopping around for the best Ontario mortgage can harm your credit please visit www.gtamortgagematters.com or call Paul Mangion at 416-204-0156

Liens on Property – How to Deal with a Property Tax Lien

2011-12-27T07:53:00.000-08:00

There are many different types of liens that can end up on an individual’s property. The liens on property can include; Canada Revenue Agency Tax liens, condo fee liens, liens that result from a judgement and property tax liens. A property tax lien, Canada Revenue Agency tax lien and a condo fee lien do not require a court order to be placed on your property. Whereas in Ontario if a private individual or company who wants to file a lien on your property first has to obtain a judgement against you through the Superior Court of Justice.

Property tax liens in Canada are very serious because they take priority over all other liens and mortgages. When you have property tax arrears in Canada, you owe money to the government or the Queen. When a Municipality files a property tax lien against your property, it takes priority over even your mortgage.

A property cannot be sold or refinanced with a property tax lien on it. In Ontario, a property tax lien is filed on the Province of Ontario Land Information System online and a bank or potential buyer of a property can find out if there is a property tax lien on your property at the click of a mouse.

A property tax lien can grow at an alarming rate and falling into arrears on your property taxes has a real snowball effect. Liens on property once filed will be subject to interest and legal charges. Even if you come up with the money to pay off the debt that is associated with a property tax lien, the interest and legal fee will have to be paid in order for it to be removed.

A property tax lien filed on a property by a municipality will result in a notification being sent to any mortgage holders. Because of the severity of a property tax lien and the position on title it will hold, many mortgage lenders once notified of a property tax lien may pay it on your behalf and then demand to be repaid in full. If you do not repay the mortgage lender, they could force your property into power of sale.

The best thing to do if you have property tax arrears or liens registered on property that you own it to come up with a plan to pay the property tax arrears off. Easier said than done right? There are options. If you have some equity in your home, it is a better choice to refinance your home to come up with proceeds to pay off a property tax lien than to see your mortgage lender involuntarily do it on your behalf.

Refinancing your first mortgage or taking out a new second mortgage is the best way to eliminate property tax arrears because the mortgage amortization will result in very little difference in increase to your mortgage payment. Using a line of credit or loan is less advisable because payments will be higher and you will still have your monthly property tax obligation so it may cause strain to your budget.

Finally, it is always best to ask your first mortgage lender to collect your property tax payment with your mortgage payment. Doing so will feel like one less payment on a monthly basis and will reduce the opportunity for you to fall behind on your property taxes, ending up with a property tax lien.

For more information about liens on property and how to deal with a property tax lien please contact Paul Mangion at GTA Mortgage Matters by calling 416 204 0156 or visit www.gtamortgagematters.com.

Mortgage Arrears! What You Can Do If Your Mortgage Payments are in Arrears?

2011-12-20T12:26:00.000-08:00

The past few years have been very tough for many Ontario homeowners. Skyrocketing costs of food, gas, home heating, in addition to credit card and personal debt has left many families strapped for cash and wondering how they will make ends meet each month.

The absolute last thing you want to have happen is to have your mortgage payments fall into arrears. When mortgage arrears occur you can become at risk of losing your home. Also, when mortgage arrears compound they can become so high that they become difficult to pay up to date.

Before you can deal with your mortgage payment arrears you must first explore what led to the arrears in the first place. The tools that you can use to deal with mortgage arrears are the same tools that you can use to deal with other financial problems that are fuelling the issue.

If your mortgage arrears were caused because your personal expenses to maintain your home have increased and that combined with payments to credit cards and loans have become impossible to pay each month, will be crucial to come up with a strategy to reduce your overall monthly payments.

Bankruptcy trustees and debt counsellors promote Federal Government programs and debt consolidation to reduce interest on debt and monthly payments. The problem is that the vehicle used to achieve this is often a debt settlement or consumer proposal which will have a devastating impact to your credit and will permanently destroy relationships with creditors that you have built up over the years.

If you want to reduce your monthly payments and reduce relationships with your creditors and preserve your credits, you must pursue debt consolidation options that honour your obligations to your creditors but also reduce your monthly payments.

If you do not yet have mortgage arrears but know that things are headed in that direction, you must act fast because your options will change once your mortgage payments are in arrears.

Using your home is the fastest and most affordable way to consolidate debt and reduce monthly payments. You may be thinking that your bank has already said no but the bank is not the only option. There are many other lenders like trust companies, credit unions, mortgage investment companies and even private lenders that will offer mortgage financing when the bank won't. A good Mortgage Broker will have access to these financial resources.

Once your mortgage payments are in arrears your options will be less. Most mortgage lenders will require that your mortgage payments are up to date before they will extend mortgage financing. The only lenders that will make a concession in this scenario are lenders who offer equity only mortgages. This means that they will lend to you based on the amount of equity you have in your home, not based on your personal credit. In this case, you will require a little bit more equity in your property.

If you are in this situation, the best thing you can do is take the steps to resolve your mortgage arrears or impending mortgage arrears before you put your house at risk. For more information about mortgage arrears and what you can do if your mortgage payments are in arrears, please contact Paul Mangion at GTA Mortgage Matters by calling 416-204-0156 or visit www.gtamortgagematters.com

What is a Closed Variable Rate Mortgage?

2011-12-13T08:45:00.000-08:00

A variable rate mortgage is a mortgage that bears an interest rate that floats with the prime rate set by the Bank of Canada. If mortgage interest rates go down, so does the mortgage rate of a client who has a variable rate mortgage. Likewise if mortgage interest rates go up, so does the mortgage rate of a client who has a variable rate mortgage.

In the past several years mortgage interest rates in Canada have been at historic lows and so many Canadian homeowners continue to maintain variable rate mortgages.

A closed variable rate mortgage is a mortgage that offers a variable rate but is also closed. Banks generally offer closed variable rate mortgages over 1, 3 or 5 years.

Choosing a closed variable rate mortgage means that you will be guaranteed that your mortgage interest rate discount from the banks' prime rate (if you have negotiated a discounted rate) will remain the same throughout the term of your mortgage. The same is true of you don’t have a discounted interest rate and you are paying at prime or even one or two percent above prime.

Some variable rate mortgages are re-calculated immediately while others are recalculated monthly or even every three months. A closed variable rate mortgage (just like an open variable rate mortgage) could mean that your monthly payment would be fixed throughout the term. This would mean that if the Bank of Canada's interest rate changed (up or down) the amount of your payment that is allocated to principal and interest would be adjusted accordingly. In other cases and if you select a changing payment schedule, your actual mortgage payments would increase or decrease according to whether the Bank of Canada's lending rate has been increased or decreased.

All variable rate mortgages enable you to lock in anytime to a fixed mortgage interest rate. Generally, you can amortize your mortgage payments up to 30 years. You can select a monthly repayment schedule that is monthly, semimonthly, weekly or biweekly.

So how can you determine if a closed variable rate mortgage is right for you? Typically you would select a closed variable rate mortgage if you anticipate that the prime lending rate is going to go down. You have to be sure that you can accept the risk that if the prime lending rate goes up, so will your mortgages interest rate.

Primarily the world economy will dictate what happens with national lending rates. If you are going to choose a variable rate mortgage product pay attention to the news. Signs that the world's economy is improving will generally result in interest rates going up. Alternatively, signs of a weakening world economy will generally signal that mortgage interest rates will stay the same or even go up.

Staying informed will be the best way to forecast what is going to happen with your mortgage, otherwise a fixed rate mortgage product may be better for you. For more information about closed variable rate mortgages please contact Paul Mangion at GTA Mortgage Matters by calling 416-204-0156 or visit www.gtamortgagematters.com.

Home Mortgage Refinancing in Ontario – Top 3 Mortgage Financing Tips

2011-12-06T11:35:00.000-08:00

Home mortgage refinancing in Ontario is a very viable option that more and more homeowners have come to rely upon to raise much needed capitol. The most common reason that homeowners refinance their homes are:

1. To negotiate a lower interest rate on their mortgage

2. To consolidate debt

3. To finance big ticket purchases like home renovations, children's education and expensive home furnishings/appliances, just to name a new.

The reason that home mortgage refinancing in Ontario has become so popular is because consolidating debt and big ticket purchases is much cheaper when leveraging home equity. A mortgage or home equity loan is much less interest than credit cards, lines of credits and personal loans. There is also much more flexibility with monthly payments, and monthly payments are generally much lower.

Here are our top 3 mortgage financing tips if you are thinking of applying for home equity refinancing in Ontario.

Mortgage financing tip #1 – Establish a relationship with a local Mortgage Broker. This will increase your borrowing power and ensure that you obtain a competitive deal on your new mortgage. Mortgage Brokers in Ontario arrange mortgages through all the major banks, plus they have access to alternate funding sources like trust companies, credit unions, mortgage investment corporations and private lenders.

Often times when your bank won't approve mortgage refinancing or won't offer you a better mortgage interest rate, a Mortgage Broker will be able to secure the financing. Also, when you go directly to your bank there is no competition. You will only be offered what they want to offer you and each time you apply for credit it results in another inquiry on your credit report, which can impact your credit score. A Mortgage Broker will request your credit report in a single instance and use the credit report to shop your deal around.

Mortgage refinancing tip #2 – Check your credit report before looking for financing. Request your credit report to ensure that there is nothing improperly reported and so that you know your credit score before looking for a mortgage. Your bank will generally approve credit based on your credit score. The lower it is, the higher the interest rate they may offer you. Sometimes it pays to see and work on having a good credit score before looking for mortgage refinancing in Ontario. Generally in Ontario a 680 beacon score is considered good.

Mortgage refinancing tip #3 – Use an online mortgage calculator to compare mortgage payments based on different amortizations. By default, most banks will quote your new mortgage repayment based on a 25 or 30 year amortization. This is no way to get your house paid off quickly and will mean that you end up paying more interest in the long run. Shaving years off of your amortization often results in very little increase to your mortgage payment.

All in all mortgage refinancing could result in you getting the most competitive deal, so it is important to do your research and be prepared for when that time comes you are ready! For more information about mortgage refinancing in Ontario and our mortgage financing tips please contact Paul Mangion at GTA Mortgage Matters by calling 416-204-0156 or visit www.gtamortgagematters.com.

The Mortgage Centre Mississauga Top 3 Mortgage Financing Tips for 2012

2011-11-21T06:19:00.000-08:00

With the Holiday season and New Year right around the corner the Mortgage Centre Mississauga is happy to publish our top 3 mortgage financing tips for 2012.

Mortgage financing tip number 1 - Your bank is not the only game in town.

Many individuals are misguided and think that the bank is the only place to obtain a low interest mortgage. Some think that when their bank declines them for mortgage financing, that it is a sign that they have credit problems. More times than not the bank simply has very conservative lending practices and if you fall an inch outside of their guidelines, you may be declined.

Mortgage financing tip number one is to develop a relationship with a good local Mortgage Broker who can access other funding sources like trust companies, credit unions and mortgage investment corporations. The institutions often offer mortgage interest rates that are comparable to the bank’s mortgage interest rates and won’t make you jump through hoops to get a low interest mortgage approval.

Mortgage financing tip number 2 – If you are using your new mortgage to pay off debt, pay attention to your mortgage amortization. Many people who refinance their home to consolidate debt, make the mistake of extending their mortgage amortization back out over 25 to 30 years. Sometimes a mortgage broker or bank will re-arrange your mortgage this way, assuming that’s what you want.

Ask lots of questions. A mortgage amortized over 20 years will not bear that much greater of a payment than a mortgage financed over 25 years. When you look at all the money you will save on monthly payments as a result of consolidating your debt, there may even be enough savings to reduce the amortization that is left on your mortgage which will see you get your home paid off much faster.

Mortgage financing tip number 3 – Variable rate mortgages are still a favourable choice when obtaining mortgage financing. Mortgage interest rates in Canada are still at historic lows. Ride the low interest mortgage rate wave while you can. Some folks fear variable rate mortgages because they know that if interest rates increase, so will their mortgage rates. Many lenders who offer variable rate mortgages offer an option to lock-in. This means that if mortgage interest rates go up, you can lock into a fixed rate mortgage at any time.

If you are thinking about refinancing your mortgage, the end of the year is a better time than ever to do it. People who list their homes over the holiday season will often list for less because so many folks are pre-occupied with the holiday season so there is less demand. This is a perfect opportunity to get a great deal on a home. If you were thinking of securing mortgage financing to consolidate your debt, you are in a position to start the New Year with a single low monthly payment.

We at the Mortgage Centre Mississauga wish your family all of the best in the upcoming holiday season and the New Year and hope that you have found these top 3 mortgage financing tips useful.

For more information about the Mortgage Centre Mississauga and our top 3 mortgage financing tips for 2012 please contact Paul Mangion by calling (416) 204-0156 or by visiting www.gtamortgagematters.com.

Toronto Christmas Sales on Mortgages – Consolidate Debt and Start 2012 Debt Free

2011-11-15T08:51:00.000-08:00

Christmas is right around the corner and there is so much to do. It seems that every Christmas season our schedules are filled with work holiday parties, family get-togethers and let’s not forget Christmas shopping. The last thing on most people’s minds are bills, that is unless you are one of the many Greater Toronto Area (GTA) families carrying a large debt load coming into the holiday season.

Many families are still recovering from debt that they incurred during and after the recent recession. Yes, it was three years ago but to most it feels like yesterday, especially when reviewing monthly credit card statements.

When times get tough it is easy to turn to credit cards to make ends meet and three Christmas’s post-recession, the average debt load of a GTA family sits at $40,000, which is a staggering number. To save money we might find savings by pursuing Christmas sales. Christmas sales are not only found at the mall. There are Toronto Christmas mortgage sales on mortgages all around us.

You may be thinking, Christmas mortgage sales? I have no time to think about my mortgage right now! Now is a better time than ever to take a good hard look at your mortgage and here’s why. Interest rates are still at historic lows and are much lower than the interest you are paying on your credit card debt. You can consolidate debt and start 2012 debt free.

Just like your local Toronto shopping centre may be promoting their latest deal, many Mortgage Brokers in the GTA are holding fantastic Toronto Christmas sales on mortgages, helping families in the GTA to consolidate their debt. The average time it takes to refinance a mortgage in the GTA is 2-3 weeks, so there is more than enough time to get your finances straight before the holiday rush.

If you want to refinance your mortgage to consolidate your debt by obtaining a new first mortgage, a second mortgage or a home equity line of credit, it is a simpler process than you may think, that is if you have a good Mortgage Broker.

1. Your first step should involve finding out who is offering Toronto Christmas sales on mortgages.

2. Once you make an application for a new mortgage, it usually takes 2-3 days to get approved if you provide complete information.

3. If you obtain a CMHC insured mortgage, you will not need to have your home appraised. If you are obtaining a mortgage that is not CMHC insured and need an appraisal, this is not a big deal. An appraisal can usually be completed in 3-4 days (depending on your schedule) and simply involves an Appraiser making a brief visit out to your home.

4. Next you will visit your Mortgage Broker to sign your new mortgage documents and the documents will be sent back to the mortgage lender who was offering the Toronto Christmas sale on mortgages.

5. Finally, you will have to attend one final appointment to sign off on the final mortgage documents and presto, you will receive your money.

You can use that much needed cash to pay off your credit card and other debt and the best part is you will sail through December bill free. When January comes, you will not have to face the landslide of credit card bills you likely have in past years. Because you have made the wise choice to consolidate debt before the New Year, you will start January paying less interest and a single low monthly payment. Doesn’t this idea just make you want to sing Jingle Bells?

For more information about Toronto Christmas sales on mortgages to consolidate debt and start 2012 debt free contact Paul Mangion by calling (416) 204-0156 or by visiting www.gtamortgagematters.com.

Debt Relief Options Start at The Mortgage Centre in Mississauga

2011-11-08T09:53:00.000-08:00

Debt relief options can sometimes be limited to where you live. Homeowners in the greater Toronto area, including in Mississauga, tend to have more mortgage refinancing options than homeowners in rural areas or areas outside of major cities.

Mortgage refinancing is a great choice if you are looking for debt relief options. If you own a home, refinancing your mortgage can offer you debt relief options and flexibility. Mortgages are often less interest than unsecured loans and other forms of debt consolidation. Mortgages also offer a single low monthly payment and enable you to preserve your credit report, credit score and relationships with your creditors.

As a result of aggressive advertising on the part of Bankruptcy Trustees and Debt Counsellors who advertise debt consolidations, many consumers find themselves making debt settlements with their creditors or filing consumer proposals to find debt relief. This can have devastating impacts to your credit report, destroy your relationships with your creditors and limit future financial options. Often consumers think that they are getting a debt consolidation when they do this, but debt settlements and consumer proposals are not debt consolidations.

If you own your home there are often other debt relief options out there that don’t involve debt settlements or consumer proposals that destroy your credit. You may be thinking that you have applied to your bank for a mortgage to consolidate debt in the past and were told no, or that your credit is so bad that no one will offer you a mortgage. This is often not the case.

Mortgage brokers have access to many mortgage financing options outside of the bank. The Mortgage Centre in Mississauga is an example of a super brokerage who deals with many lenders outside of the bank. Super brokers are the most reputable Mortgage Brokers you can deal with. These are not independent brokers. Super brokers like the Mississauga Mortgage Centre are part of a large mortgage broker network and with that comes credibility and accountability. There are over one hundred locations in the mortgage centre franchise.

Through super brokers like the Mississauga Mortgage Centre you can obtain mortgage financing through lenders like finance companies, trust companies, credit unions, mortgage investment corporations and private lenders. These lenders are not as strict as the major banks and will often grant financing to an individual who has some past bad credit or difficulty proving their income.

Proceeds of a mortgage refinance can be used to pay off credit card debt and start fresh with a single low monthly payment. This is a debt relief option that can not only provide you with a fresh financial start but can also enable you to rebuild your credit as opposed to destroying it.

When refinancing your home, discuss all of your financial options with your Mortgage Broker. Mortgage refinancing can provide a lot of financial flexibility. Choices could include a new first mortgage, a second mortgage or a personal home equity line of credit – all of which are good debt relief options to deal with debt.

For more information about debt relief options and the Mortgage Centre in Mississauga contact Paul Mangion by calling (416) 204-0156 or by visiting www.gtamortgagematters.com

Mississauga Mortgage Broker Finds the Low Interest Mortgage Financing Options over the Holidays

2011-11-02T06:35:00.000-07:00

The holiday season is right around the corner and holiday shopping mania is about to begin. Whether you like to prepare for the holidays in advance or are a last minute shopper, holiday financial planning could mean the difference between a stress free new year and facing a landslide of credit card bills.

Homeowners have many options as it relates to holiday financial planning and now is a better time than ever to consider consolidating your debt. Your home is your best shot at securing low interest mortgage financing and there are currently many low interest mortgage financing options available in Ontario.

Low interest mortgage financing options could include a secured line of credit, a first mortgage refinance or a second mortgage, and the best option for you will depend on your personal financial circumstances and the type of debt you are looking to consolidate.

Those who don’t have a lot of debt ($15,000 or less) may be best suited for a line of credit. Lines of credit generally offer low interest rates and you only use what you need. A line of credit is considered a low interest mortgage financing option and gives you the flexibility of a low monthly payment with an option to pay as much as you want (when you have extra money). If you live in Mississauga, a Mississauga Mortgage Broker can help you to obtain a low interest line of credit that offers you the maximum benefits.

If you owe $16,000 - $25,000 in debt a second mortgage may be the best choice. Because second mortgages offer a fixed repayment, this low interest mortgage option will enable you to consolidate your debt and fix your monthly payment so that you know when you will be debt free. With second mortgages, you can set your amortization as low as 5 years which is essentially a 5 year consolidation loan. After you make your payments over 5 years, your debt is paid in full. A $25,000 mortgage financed on a 5 year amortization could bear a monthly payment as low as $500 per/month.

If you owe more than $25,000 in debt, refinancing your first mortgage is likely the best choice. Once you have accumulated a significant amount of debt, a second mortgage amortized over a short period of time may bear a monthly payment that is too much for your budget to take. Refinancing your first mortgage is an excellent low interest mortgage financing option that will create immediate cash flow and put an end to multiple payments to various credit cards.

All of these low interest mortgage financing options will enable you to consolidate your debt, will reduce your payments to one single monthly payment and allow you to start the New Year off without the usual landslide of credit card bills come January. Homeowners in Mississauga should consider speaking to a local Mississauga Mortgage Broker for the lowest interest mortgage financing options that are available locally. For more information about low interest mortgage financing options from Mississauga Mortgage Broker Paul Mangion, call 416 204 0156 or visit www.gtamortgagematters.com

Canadian Mortgage Refinancing Part 4 – The Lowest Interest Rate Doesn’t Mean the Lowest Mortgage Interest

2011-10-25T10:21:00.000-07:00

Canadian Mortgage Refinancing can be complex and the lowest interest rate doesn’t mean that you have the lowest interest mortgage. A mortgage involves a mortgage term, mortgage amortization and interest rate. Each will impact the amount of interest that you pay on your mortgage.

Mortgage interest compounds. There are several different ways that mortgage interest can compound and they are daily, monthly, semi-annually and annually (to name the most common frequencies to which mortgage interest can compound). For example, line of credit interest will almost always compound monthly (12x per/year), whereas conventional mortgages will often compound semi-annually (2x per/year). The more frequent the interest compounds, the more interest you pay. If a bank offered a 6% interest rate compounded monthly or a 6% interest rate compounded semi-annually, you would pay more interest in the example where the interest compounded monthly.

Some mortgages are “interest only” meaning that the monthly payments are calculated based on you only making interest payments monthly and interest only mortgages often compound monthly. Lines of credit and interest only mortgages offer the least likelihood of paying down your mortgage, unless you pay much more than your minimum monthly payment each month.

An ideal mortgage is one where the interest compounds semi-annually or annually and involves a monthly payment that pays both principal and interest. Usually a fixed rate mortgage will involve and interest rate that compounds semi-annually whereas a variable rate mortgage will often compound monthly.

Your mortgage term is the amount of time that your interest rate is guaranteed. This can be a double edge sword because locking in for a long time will ensure that your interest rate is secured but if interest goes down, the interest rate on your mortgage will not. With mortgage interest rates in Canada being at all-time lows many folks opt for variable rate mortgages that offer an option to lock in.

Your mortgage amortization will dictate how long you have to repay your mortgage. If you want to pay the lowest mortgage interest, well, the lower your amortization, the less mortgage interest you will pay. You don’t have to take out a mortgage that is amortized over 30 years. Plan your budget and mortgage payment based on a 20 or 25 year amortization and you will save thousands of dollars in interest overall.

Canadian mortgage refinancing can be negotiated at interest rates and terms that gives you the most for your borrowing buck but should be planned carefully. A local mortgage broker will almost always understand real-estate in your area and what mortgage products are available. You don’t want to end up with a mortgage where you think you have the lowest mortgage interest rate but are not actually paying the lowest mortgage that you could be.

You work hard for your money and you deserve to have a mortgage that will provide you with a great mortgage interest rate and terms that you can live with. This will not just come to you, you have to be informed and look around to find it.

For more information about Canadian mortgage refinancing, how to get the lowest mortgage interest rate and actually pay the lowest mortgage interest visit www.gtamortgagematters.com or call Paul Mangion at 416-204-0156.

Canadian Mortgage Refinancing Part 3 – What Does it Mean to Refinance Your Home or Get a 2nd Mortgage?

2011-10-17T12:05:00.000-07:00

Canadian Mortgage refinancing could be the refinancing of a first mortgage or it could be a new second mortgage. Any time you own your home and obtain new mortgage financing, it is considered mortgage refinancing. The question is with all of the choices available it is often unclear which is the best choice?

Refinancing your first mortgage can be a good choice but can also carry negative implications if it is not arranged properly. The longer you agree to repay debt, the more money the bank earns. For example, if you have 19 years left on your mortgage amortization, many financial institutions and brokers will quote your new mortgage based on a 25 year or 30 year mortgage. This may save you a couple of hundred dollars per/mo. When you look at the amount that you are paying to debt and what the mortgage would look like if amortized over the 19 years as an example, a mortgage refinance keeping your existing amortization at the 19 years will in many cases still free up a significant amount of cash flow and save you a significant amount of interest.

Refinancing your first mortgage carries many benefits. More and more folks are choosing second mortgages as an effective way to keep their consumer debt separated from their first mortgage debt. This is the best way to see that you actually pay off your first mortgage. Choosing to refinance your home and get a second mortgage provides a lot of flexibility, but the bank in this case will often recommend a line of credit or that you amortize your new second mortgage over 20 or 25 years to provide you with “the lowest monthly mortgage payment”. The end result is a never ending payment that never gets your debt paid off because it will often only pay interest. Most people will just pay the minimum amount due on their statement each month, which often represents mostly interest. This makes the banks a lot of money.

Canadian mortgage refinancing can be achieved in a manner that is favourable to a consumer but for this to happen the consumer must be informed. If you were to get a second mortgage, amortization is important. If you owed $20,000 as an example and you amortized your repayment over 15 years you would have a monthly payment of approx. $250 per/mo. If you amortized the same amount of debt over 5 years you would have a monthly payment of approx. $450 per/mo. The 5 year amortization would see that you would be debt free in 5 years and that your first mortgage was not interrupted. When you look at your minimum payments to your credit cards, which only cover interest in most cases, the 5 year amortization could put hundreds of dollars per/mo. of cash flow back into your pocket.

We don’t really advocate lines of credit because they are like taking out one big credit card and there is no fixed repayment term (no end in sight) so we would recommend that you get a second mortgage over a line of credit.

No matter which way you go, don’t make any choices before you get informed about Canadian mortgage refinancing. You can get a second mortgage, first mortgage or line of credit through a mortgage broker which is a more competitive option than going directly to your bank. A mortgage broker represents your best interest first. For more information about Canadian mortgage refinancing and what it means to refinance your home or get a second mortgage, first mortgage or line of credit please visit www.gtamortgagematters.com or call Paul Mangion at 416-204-0156.

Canadian Mortgage Refinancing Part 2 – Average Debt in GTA is $40k and Homeowners Refinance to Consolidate Debt

2011-10-13T06:38:00.000-07:00

Canadian Mortgage Refinancing rates are a clear sign of the times. It is a sad day when the average debt load carried by a GTA homeowner is $40,000. That does not reflect money owed to mortgages, that reflects’ pure debt.

We cannot ignore the fact that the cost of living has skyrocketed in the GTA. Many people are still carrying debt that they took on 4-5 years ago and have not been able to pay down since because of the unexpected increase in the cost of living. The cost of living increase is due primarily to increased transportation costs that companies are passing down to the consumer. Everything is more expensive, from hydro to food to vehicle maintenance and more.

The fact that Ontario has elected a minority government in the 2011 provincial election is sending a clear message that many average families in Ontario are struggling financially and need some relief.

So let’s not focus on what the government can do for us but rather what we can do for ourselves. When debt reaches the point where credit cards are at their limits and your budget can only afford to cover minimum payments financial, decisions have to be made. The issue is that the big banks have set minimum payments so low that these payments are mostly only covering interest. You can pay and pay and pay but the likelihood of your balance getting paid off this way is low (unless you want to make minimum payments for the next 10-15 years).

Homeowners refinance to consolidate debt because it is often much less interest, much lower monthly payments and puts much needed cash flow into the budget. Canadian mortgage refinancing is more and more common because when it gets to the point (like in Toronto) that the average debt load is $40,000, well this is just too much.

$40,000 in debt at current credit card interest rates cost an average of $1,500 to $2,000 per/month in minimum monthly payments. Homeowners who refinance to consolidate debt are able to reduce their monthly payments to as low as $400 per/mo. This is a drastic monthly savings and a testament to why more and more homeowners refinance to consolidate debt.

Many reading this may be thinking that they have approached their banks for mortgage refinancing to consolidate debt and were told no. There are many reasons that this occurs. First, the big banks earn more when you are stuck making minimum payments at credit card interest rates. Because credit card interest rates are so high and because of the length of time it takes to repay at minimum payments, they will often earn more if you do not refinance to consolidate your debt.

Second, the bank’s lending practices have become much more stringent and even having credit cards that are maxed out is considered (by many banks) poor credit. Third, the real estate market has seen so much turbulence in the past couple of years that banks are lending on a more conservative basis.

Canadian mortgage refinancing is available through local mortgage brokers who access other institutional lenders like trust companies, finance companies, mortgage investment firms and even private lenders. If your bank has said no, that doesn’t mean that you do not qualify elsewhere for a mortgage.

If you would like more information about Canadian mortgage refinancing and how you can use your home to refinance to consolidate debt please contact Paul Mangion, Principal Mortgage Broker at the Mortgage Centre at 416-204-0156 or visit www.gtamortgagematters.com

Canadian Mortgage Refinancing Part 1 – Refinancing Your Home When you Have Credit Problems

2011-10-06T10:53:00.000-07:00

Refinancing your home when you have credit problems can be done with the assistance of an experienced mortgage broker who works with lenders that don’t mind helping someone who has experienced problems with credit.

The difficulty you experience when trying to find financing will depend on the type of credit problem you have. Canadian mortgage refinancing has come a long way in the past 20 years. More lenders are willing to work with someone who has credit problems.

Before the last decade, the primary choices as it relates to mortgage refinancing in Canada were the bank or a private lender. In the past decade however, a host of companies have emerged that will offer bad credit mortgages. These include mortgage investment corporations, trust companies and finance companies.

Generally consumer’s who have credit problems that are currently impacting their credit or recently impacted their credit, will find that lenders will approve them on an equity basis. This means that if the client does not have equity, it will be less likely they will be approved. The rule of the thumb that most equity lenders follow is that they will lend between 75%-80% of a property's value including the new funds required.

We mentioned that the difficulty you experience will depend on the type of credit problem you have because some people think that their credit problem is much worse than it actually is. Lenders that will lend to a consumer who has had credit problems will usually look at a few primary factors.

What is the credit score? While many private lenders will not have a minimum credit score, finance companies and trust companies who will consider a bad credit loan will have a minimum “credit score threshold”. When refinancing your home, the minimum credit score could be 550, 580, 600, and sometimes 620. When a credit score is below 550, you will almost always have to obtain mortgage refinancing through a private lender.

Is there a history of recent late payments? If the borrower has made many late payments to loans and credit cards within the past year or two, this too could impact their ability to get a mortgage with a finance company or trust company and will likely mean that you will have to consider a private lender.

Someone who has previously had a bankruptcy or consumer proposal that was completed at least 2-3 year ago and they have 2-3 years of solid re-established credit, may not be considered as having credit problems at all. The same is true for a client who in the past year has only make one or two late payments but has paid all other credit well and all accounts are up to date and in good standing.

The best thing you can do if you think you may have credit problems and want to apply for Canadian mortgage refinancing is speak to your local mortgage broker. They will be able to review your credit with you, talk to you about what options are available and secure a mortgage for you.

For more information about Canadian mortgage refinancing or refinancing your home when you have credit problems please contact Paul Mangion at GTA Mortgage Matter by calling 416-204-0156 or visiting www.gtamortgagematters.com

Residential Mortgage Insurance with CMHC –When You Need It to Obtain a High Ratio Mortgage

2011-09-26T06:46:00.000-07:00

One big reason that our banking system has fared better during the current worldwide economic instability is largely due to the regulation in our banking industry.

In Canada, in order to qualify for a residential mortgage with a “bank”, with less than 25% down payment, the bank must ensure that the mortgage is high ratio insured. While GE also offers high ratio mortgage insurance, the majority of high ratio mortgages that are insured in Canada are insured by CMHC.

Even if a bank approves your mortgage (or has a strong desire to) and CMHC declines the application for high ratio mortgage insurance, the bank will not be able to grant you the mortgage. This has opened up a whole marketplace of alternative lenders that offer high ratio mortgages. A lender, who is not regulated by the Chartered Banks Act, can fund a high ratio mortgage without residential mortgage insurance.

Your most affordable high ratio mortgage option will most often be offered by a bank and insured by CMHC.

We mentioned the fact that if residential mortgage insurance with CMHC is declined, the bank will not be able to finance your mortgage. When you apply for a mortgage, the bank will submit an application for high ratio mortgage to CMHC.

CMHC has firm lending guidelines and requirements that include that the applicant has good credit, good stability, and verifiable income. CMHC will insure a high ratio mortgage when the applicant has had a past history of bruised credit, provided they have at least two years of strong, re-established credit.

If you own your home and want to refinance, CMHC will high ratio insure a residential mortgage and refinance up to 90% of the property’s value, if the applicant qualifies. In the case of a refinance, this makes obtaining a mortgage much easier because where CMHC insurance is present; banks will often not require an appraisal of the property at an additional expense to the borrower.

CMHC’s residential mortgage insurance premium can range from .5% up to 4.5% depending on how much insurance is required. When the residential mortgage being insured represents a lower loan to value, the CMHC insurance premium is less, and when it represents a higher loan to value, the CMHC residential insurance premium is higher. CMHC high ratio mortgage insurance is added to the mortgage and blended into your monthly mortgage payments.

For more information about residential mortgage insurance with CMHC and when it is required to obtain a high ratio mortgage please contact Paul Mangion at GTA Mortgage Matters by calling 1 (877) 234-8275 or by visiting http://www.gtamortgagematters.com/

How to Shop for a Mortgage in Toronto without Ruining Your Credit

2011-09-20T07:13:00.000-07:00

The biggest mistakes that individuals make when shopping for a mortgage are over shopping and under planning. Here are some tips on how to shop for a mortgage in Toronto, without ruining your credit.

Before you start looking for a mortgage, you should first think about if you qualify for a mortgage. This starts with requesting your credit report from Equifax. Your credit score is important because if it is less than 680, your mortgage options will be greatly reduced.

If you want to shop for a mortgage and have less than a 25% down payment, you will need CMHC mortgage insurance to qualify for a mortgage with a bank. When a mortgage is insured by CMHC, the applicant must apply with both the bank and with the CMHC. Usually the bank will submit your CMHC insurance application to them on your behalf.

Both the CMHC and the bank will require the following:

1. That your housing payments (with your new mortgage) do not exceed 32% of your gross income.

2. That your housing payments (with your new mortgage payment) and your payments to credit/debt do not exceed 42% of your gross income.

3. They will want to see good stability.

4. They will want to see proof of your income.

5. Most banks will require a minimum credit score of 680. However, the CMHC will often insure a high ratio mortgage when the applicants credit score is as low as 620.

If you do not satisfy the above basic criteria, you still have mortgage options in Ontario. Because the CMHC will insure a high ratio mortgage for someone who doesn’t meet the banks minimum criteria, there are a number of credit unions and trust companies that offer more flexible lending criteria.

The planning part of preparing to purchase a home should include reviewing your personal finances and credit to ensure you can obtain financing. There is nothing worse than falling in love with a home you want to purchase, only to learn you cannot get a large enough mortgage to make the purchase.

When the time comes to obtain a mortgage pre-approval, do not go from bank to bank applying for mortgages trying to get the best deal. Many folks don’t realize that each applicant for credit is reported to the credit report and too many applications for credit in a short period of time can actually reduce your credit score.

Your best bet is to establish a relationship with a local Mortgage Broker, one who deals with all the banks. If you are worried that you may face challenges qualifying for the mortgage that you want, when looking for a Mortgage Broker, ask them if they are capable of dealing with all types of credit and income. In most cases, the bank will pay your Mortgage Broker, so there is huge value to taking advantage of a resource that can shop the best deal for you. For more information about how to shop for a mortgage in Toronto without ruining your credit visit http://www.gtamortgagematters.com/

Low Interest Mortgage Loans – How Long Can You Hold Your Low Interest Mortgage Approval?

2011-09-12T08:58:00.001-07:00

Low interest mortgage loans are available to those who want to purchase or refinance their homes.

If you are thinking about buying a home, it makes the most sense to make sure you can obtain a mortgage before you start house shopping. You will also want to be sure that you understand the extent of your mortgage closing costs to ensure that you have the liquidity to go through with the purchase.

Do not go from bank to bank applying for mortgages. This will result in multiple credit inquiries on your credit report and will reduce your overall credit score. This alone could disable your ability to get approved for a mortgage.

Go to a Mortgage Broker, one that deals with all the major banks. They will be able to:

- Pull your credit

- Review your credit applications

- Tell you what you qualify for

- Negotiate with the banks

- Obtain a low interest mortgage pre-approval on your behalf

Most Mortgage Brokers can negotiate with the bank to hold your mortgage interest rate for 120 days.

Depending on your credit and income, you will need between five to ten percent of the purchase price as a down payment. If you are obtaining a CMHC mortgage, you will have to prove where your down payment money came from.

If you are planning to purchase a home, you will also need to consider the following “other closing costs” you will incur when purchasing a home.

1. It is always prudent to have a property inspector go in and do a home inspection on a property you are planning on purchasing. The cost of an inspection is approximately one thousand dollars.

2. You will have to obtain Fire Insurance Coverage on the property. This is often cheapest when bundled with other insurance policies, such as car insurance.

3. Real estate legal fees will be incurred both on your property purchase and on your mortgage closing. Many Real Estate Lawyers can offer you a bundle deal that covers both closings.

4. Finally, you will need to have enough money set aside to cover your land transfer tax which could be 1-3% of the property purchase value.

Your closing costs will vary depending on the location of the property you are purchasing. Step one in the process of planning to purchase a home is to establish a relationship with a good Mortgage Broker. For more information about low interest mortgage loans and how long you can hold your low interest mortgage approval visit http://www.gtamortgagematters.com/

Canadian Mortgage Interest Rates, Going Up or Down?

2011-09-07T07:12:00.000-07:00

It appears as though there is constant speculation as to whether Canadian interest rates will go up or down. Interest rates have been low for so long and many consumers have been taking advantage of low interest variable rate mortgages.

Canadian interest rates were originally reduced to historic lows after the attacks on the World Trade Centre in 2001. Into the mid 2000’s, the Bank of Canada began to inch interest rates upwards, but the recession that began in 2008 forced the Bank of Canada to bring the national lending rate back down.

They have remained low for the past 3 years, however in the past the Bank of Canada has raised interest rates 3 times.

When the Bank of Canada begins inching up interest rates, those who have variable rate mortgages begin to question whether or not it might be time to lock in.

A variable rate mortgage is one that floats with prime. If interest rates go up, so will the interest rate on a variable rate mortgage and in accordance so will the monthly mortgage payments. Many folks who have low interest variable rate mortgages will closely monitor the Bank of Canada’s announcements. This is because many variable rate mortgage products carry an option to lock-in.

This is one reason why we often write about the topic of whether or not Canadian interest rates will stay low or go up.

If you want to determine whether or not interest rates may go up, rather than paying attention to the Bank of Canada, pay attention to the strength of the Canadian dollar. A large part of Canada’s economy and Ontario’s economy is tied to the manufacturing sector. We export a lot of products. However, when our dollar is strong it makes it more expensive for other countries to trade with us.

Compared to the currency from other countries we currently have a strong Canadian dollar, and this is due to Canada’s strong bank system. Economic instability in countries around the world will only continue to strengthen our dollar. While Standard and Poor's recently announced that it was downgrading the U.S.’s world credit score from AAA to AA, it has been announced that Canada will continue to maintain its AAA world credit score status. This is yet another indicator that our dollar will continue to soar.

Unfortunately this also means that we could lose a lot of jobs in the Canadian and Ontario manufacturing sectors. This reason alone may be one reason that the Bank of Canada decides to leave interest rates where they are (as they did in their most recent interest rate announcements) or even lower it. There are other economic indicators that the Canadian mortgage interest rates will continue to stay low, therefore now is a better time than ever to take advantage of a low interest variable rate mortgage.

For more information about Canadian mortgage interest rates please visit http://www.gtamortgagematters.com/

Ontario Mortgage Rates - Part 5 --- What is a fixed mortgage rate?

2011-08-29T09:38:00.000-07:00

In Ontario, a fixed mortgage rate is a mortgage where the interest rate stays the same for the term of the mortgage loan.

A fixed rate mortgage is a safe option because you know that your mortgage payment will not change during the term of the mortgage. Families who live on a tight budget are better suited to a fixed term mortgage as it ensures that there are no surprises.

A fixed rate mortgage usually bears a slightly higher interest rate then a variable rate mortgage. The interest rate is fixed based on the term of the mortgage so the shorter the term, the lower the interest rate.

Banks and other major financial institutions generally want customers to lock into a 5 year fixed rate mortgage because it yields them the most interest and it is locked in, so they know that the customer is theirs for at least 5 years.

Now as I mentioned, it all depends on you, your budget and your lifestyle. If you are living on a tight budget, don’t plan on moving for the next 5 years and want to guarantee your mortgage and interest rate, a fixed rate mortgage is right for you.

On the other hand if you have lots of surplus cash flow in your budget, low debt and want to pay off your home fast, opt for a variable rate mortgage which generally carries a lower interest but also comes with the risk that if mortgage rates go up, yours will too!

Whether you chose a fixed rate mortgage or a variable rate mortgage, if you want to pay off your mortgage quickly, outside of choosing the type of interest, you can also do other things to speed up the process of paying down your mortgage.

You don’t have to choose a 30 year amortization. Did you know that reducing your mortgage amortization by 5 years will only increase your mortgage payment slightly but will save you 10‘s of thousands in interest?

Also consider accelerated mortgage payments as another way to pay more to your mortgage principal.

When planning for a mortgage, always consider the benefits and risks to the mortgage products you are considering so that you make the most informed choice. It's not always about the lowest Ontario mortgage rates. It's also important that you commit to a mortgage you can afford to repay, at terms you can live with. For more information about fixed rate mortgages please visit http://www.gtamortgagematters.com/

Ontario Mortgage Rates - Part 4 --- How to Get Approved for a Mortgage at the Lowest Mortgage Interest Rate

2011-08-22T08:19:00.000-07:00

If you are looking to purchase a home you must be thinking about how to get approved for a mortgage at the lowest possible mortgage interest rate. Different lending institutions offer different mortgage interest rates to applicants based on the risk that they represent as a potential client.

Usually financial institutions that offer CMHC mortgage insurance offer the lowest interest rates. That is because if your mortgage is CMHC insured and you default, CMHC will pay the bank for any shortfall. That’s not to say that CMHC won’t try to collect the money back from you in the future.

This means that if you want to get approved for a CMHC insured low interest mortgage you will have to satisfy CMHC’s requirements as well as the banks. Both CMHC and the bank have common criteria.

1. You must be able to prove your income.

2. You must demonstrate stability.

3. Your income to debt service ratios must be in line.

4. You must have the minimum required down payment.

5. You must meet their credit score requirements.

Generally a financial institution will want to see that you have had the same income source for the past 3 years. They will sometimes request your tax assessments as evidence. If you are employed they may ask for a job letter and paystub.

Your debt service ratios consist of two numbers, your GDS and TDS. Your TDS is your “total debt service ratio” This is the amount of your monthly income that is consumed by your housing payments and payments to debt divided into your gross monthly income expressed as a percentage. CMHC and most lenders will require that your TDS does not exceed 42% (with your new mortgage).

Your GDS is your “gross debt service ratio” which is the amount of your monthly income that is consumed by your housing payments alone, against your gross monthly income, expressed as a percentage. CMHC and most lenders will require that your GDS does not exceed 32% (with your new mortgage).

You must be able to prove that you have the required down payment or if you are refinancing, that you have the sufficient equity.

Finally, the minimum credit score required to be approved for a mortgage at a bank is 680. Set that as your benchmark if you want to get approved for Ontario’s lowest mortgage interest rate. For more information about how to get approved for a mortgage at the lowest mortgage interest rate please visit http://www.gtamortgagematters.com/

Ontario Mortgage Rates - Part 3 --- When are mortgage rates going up?

2011-08-15T09:41:00.000-07:00

When are mortgage rates going up? This seems to be the question on everyone’s mind, especially those with variable rate mortgages.

Ontario mortgage rates change depending on the state of the economy. Interest rates can be affected by the local, national and global economies. The Bank of Canada sets the lending rates for Canada and then financial institutions calculate their interest rates based on that.

When unemployment rates are high and the economy is struggling interest rates will be lower. When the economy is stable and growing Ontario mortgage interest rates will go up.

There have been reports that the economy in Canada has been improving, however we still have a huge manufacturing sector. So as our dollar increases, the currency exchange rates make manufacturing products here less affordable.

When you boil it down, a stronger Canadian Dollar is a bad thing for Canada’s manufacturing sector. Add to it other financial turmoil, for example If Greece fails, and the end result will be an even stronger Canadian Dollar. On top of that, if the United States doesn’t get their finances in order, the Canadian Dollar will see a further surge upward.

Sometimes the Bank of Canada can raise their interest rates 2 or even 3 times and you may hear that the economy is improving but that doesn’t always mean that interest rates are going to go up. In fact we think that they are going to stay the same, or even go back down depending on what happens with Greece.

The good news is, the time is right to seize the day while Ontario mortgage rates are still at historic lows. Not only is it more affordable than ever to purchase a home, if you already own one, there are lots of ways that you can still take advantage of these low Ontario mortgage rates.

You can obtain a home equity loan to consolidate debt and work towards becoming completely debt free. You could complete a long overdue home renovation or purchase a vehicle. The sky is the limit. If you were planning a big ticket purchase your home is a great way to raise money to finance it at low interest rates.

It’s hard to predict when Ontario mortgage rates are going to go up so the best thing to do is obtain the right mortgage that works within your budget, so that if mortgage rates do go up, you are prepared. For more information about when Ontario mortgage interest rates are going up please visit http://www.gtamortgagematters.com/

Ontario Mortgage Rates - Part 2 --- When to lock into a fixed rate mortgage

2011-08-08T09:37:00.000-07:00

When to lock-in to a fixed rate mortgage is a tough decision that should be thought through. An individual’s housing payment is usually the largest monthly payment in their budget.

Ontario Mortgage rates have been low for a long time so those who have chosen variable rate mortgages have enjoyed less mortgage interest than their counterparts, who selected the safer, fixed rate mortgage option.

Variable mortgage rates are great when interest rates are low. The difficulty occurs if mortgage rates go up. For example, a family who is living paycheque to paycheque should not have a variable rate mortgage.

Fixed rate mortgages have slightly higher interest rates but because the interest is fixed, so is the monthly mortgage payment. Families who have fixed rate mortgages do not have to worry that if interest rates increase so will their mortgage payment.

People choose variable rate mortgages because the rates are lower, low Ontario Mortgage Rates means lower monthly payments and more repayment to mortgage principal.

Variable rate mortgages fluctuate with the Bank of Canada’s lending rate. The Bank of Canada adjusts its lending rate according to the state of the economy. They consider not only the national economy but also the world economy.

For example, some have speculated that because the Canadian economy is doing better that interest rates will continue to rise (the Bank of Canada has raised its lending rate 3 times in the past year).

It is true that in Canada the economy has seen some improvement. However, this doesn’t mean that rates will continue to go up. In fact many believe that they will stay the same or perhaps they may even go down.

Many experts, including us, believe that in fact they will stay the same or even go down. With continued instability in countries such as Greece and the United States (debt talks), the Canadian Dollar will only continue to strengthen. This will hurt our manufacturing sector and local economy simply because no one wants to manufacture here when the exchange rate is so high. This in turn will result in The Bank of Canada leaving their lending rate as is or perhaps even reducing it in the near future.

The best way to try to predict when to lock into a fixed rate mortgage is to do lots of research and stay on top to the news. Establish a relationship with a mortgage broker who can let you know what you may expect with respect to Ontario Mortgage Rates and how to react. For more information please visit http://www.gtamortgagematters.com/

Ontario Mortgage Rates - Part 1 --- What is a Variable Rate Mortgage?

2011-08-02T10:14:00.000-07:00

Trying to find the lowest Ontario mortgage interest rates? Whether you are looking to purchase a home or refinance it, the interest rate on your mortgage is important. Your mortgage interest rate will dictate how much interest you pay during your mortgage term and how much your mortgage payments will be.

There are two main types of mortgage interest rates in Ontario – fixed and variable rate mortgages. This article is about variable rate mortgages.

An Ontario variable interest rate mortgage is a mortgage where the rate is periodically adjusted to float with the Bank of Canada lending rate. Variable rate mortgages are also referred to as adjustable-rate mortgages.

If the Bank of Canada raises its lending rate, the financial institutions will adjust the interest rates of their variable rate mortgage customers accordingly.

When the Bank of Canada’s lending rate is low, Ontario Mortgage Rates are low. Variable rate mortgages carry risk because if the Bank of Canada’s lending rate increases, so does their mortgage rate and thus so does the monthly payment.

The reason individuals take the risk and choose variable rate mortgages is because variable rate mortgages are lower interest than fixed mortgages. Less interest means more of your monthly payments go to principal and your monthly payments would be less.

You can negotiate a variable rate mortgage that carries a provision that enables you to lock in your mortgage at any time. This way you can test out the waters with your variable rate mortgage while Ontario mortgage interest rates are low and then lock-in your mortgage rate if you think interest rates are going to increase.

Variable rate mortgages are best suited for those who have an aggressive goal of paying down their mortgage. This would be an individual with a lot of cash flow, one who is prepared to make more than their minimum mortgage payment each month.

Someone who is running a tight budget is not suited for a variable rate mortgage. The individual’s mortgage payment would increase in accordance with an increase in the mortgage rate so if their budget was tight to begin with, it could cause a major financial problem.

If you want to have the best Ontario mortgage rates, it pays to have a relationship with a good mortgage broker, one who works with all the banks, watching lending rates and ensuring that you always have the right mortgage and the best deal. To find out more about Ontario mortgage rates and variable rate mortgages please visit http://www.gtamortgagematters.com/

Pay Your Tax Debt Using Home Equity and Move On

2011-07-26T10:52:00.000-07:00

Being in debt to the Canada Revenue Agency can be paralyzing. The very thought of facing aggressive CRA agents is terrifying.

If you owe money to the CRA it will not go away by itself. Also in many cases, taxpayers who have been assessed with a tax debt, become fearful to file future returns. Even if you have not yet filed returns to the CRA, they can notionally assess you and make an arbitrary determination of your earnings based on whatever records they have on file.

If the CRA believes you owe them money, they will come after you. Interest and penalties will accrue at an alarming rate and your tax debt could grow in size by 200-300 percent.

If you own your home, you stand to lose the most. The CRA can attach a lien to your home which could cause a number of problems;

- The bank could call in your mortgage or refuse to renew your mortgage.

- When the amount of the lien exceeds the equity in your home, it makes it impossible to sell or refinance to deal with the tax debt.

- The CRA could force you into power of sale.

Before a lien is registered a homeowner has more options;

- If the amount of the debt exceeds the amount of equity available in the home, the homeowner could refinance the home. At which point they could use whatever equity is available to bargain with the CRA and offer a lump sum payment along with a monthly repayment plan.

- If the amount of equity does not exceed the available equity in the home and there is no lien present, the homeowner has many options. A seasoned mortgage broker could arrange a new first mortgage or a second mortgage to pay off the tax debt.

- If the amount of equity does not exceed the available equity but a tax lien is registered on the home, this represents a more delicate situation. Even if the tax debt is being paid in full some banks will cringe at the mere existence of a tax debt. There are however many major financial institutions that will gladly offer low interest mortgage financing to a homeowner who has a tax debt provided the tax debt is being paid in full.

At the end of the day trying to ignore a tax problem is an expensive proposition and will cost you way more in the long run. Your best course of action is to hire someone who is capable of dealing with the CRA on your behalf. If you are a homeowner there are many mortgage brokers who represent all major financial institutions and specialize in working with homeowners who have tax debt.

If you have no assets and have obtained large tax debts there are also financial professionals who can advise you on debt relief options so that you can move on from your tax debt. For more information about paying your tax debt using home equity please visit http://www.gtamortgagematters.com/

Power of Sale in Toronto – Why Do They Happen?

2011-07-18T10:36:00.000-07:00

Many people think about Power of Sale and associate it as a consequence to a person who defaults on their mortgage payment. Defaulting on mortgage payments is just one of many things that can trigger a power of sale.

Every mortgage has “standard charge terms”. These are terms that apply to all of the institution’s mortgages. If any of these terms are breached the financial institution could demand to be paid in full. If you can’t pay off the mortgage then the mortgage lender could put you into power of sale.

Here some common standard charge terms that don’t relate with not making your mortgage payments yet financial institutions take very seriously.

1. You must keep your property taxes up to date. Failing to do so could change the banks secured position on title. If they learn that your property taxes are in arrears, they may pay them on your behalf at which point they will demand payment in full from you, or call in your mortgage. If the bank pays your property taxes on your behalf or there is a property lien that has to be removed, you could be subject to administrative fees and legal fees in addition to the property tax arrears and interest.

2. You must maintain valid fire insurance on the property with the bank listed as the loss payee on the policy. Failing to do so is serious because it puts the bank at serious risk to lose their security if there is a fire in your home. If you allow your fire insurance to lapse, the insurance company will inevitably notify your bank. Obtaining fire insurance after a previous policy has lapsed can be expensive – especially if the policy was cancelled for non-payment.

3. You must occupy the residence as your principal residence. Tenants have different rights than homeowners. Lenders will often not extend high ratio mortgage financing on rental properties because the process of evicting tenants is long, expensive and complicated.

4. You cannot perform construction or major renovations on the property without consent from the bank. Many folks start renovations and then run out of money, thereby depreciating the value of the bank’s asset.

Most of these issues, like defaulting on mortgage payments, occur because individuals run into financial problems and simply can’t make ends meet. The ironic thing is that your home may be the answer to these problems. Refinancing your mortgage or obtaining a second mortgage could give you the financial relief and flexibility to clear up financial issues and start you back on a fresh, firm, financial footing.

Unfortunately, powers of sales in Toronto are all too common despite being easily avoided. If you are at risk of your home going into power of sale visit http://www.gtamortgagematters.com/

Taxpayer Relief is Not the Fastest Way to Solve Your Tax Problem

2011-07-11T10:04:00.000-07:00

If you have a tax debt that has interest and penalties assessed and you have a serious medical problem, suffer from financial hardship, have been the victim of a disaster or you can prove that the CRA (Canada Revenue Agency) has made an error, you can make an application for Interest and Penalty Relief to the CRA.

This is a long process and a large percentage of these applications end up being declined. This is usually the case because taxpayers make the applications themselves and do not provide the sufficient evidence needed to prove their claims.

Even if a taxpayer has been accepted for taxpayer relief it could take 1-2 years before a decision is made. In the meantime, interest will continue to accrue and if (like in many cases) it is not accepted – you will have to pay the extra interest and will face aggressive collection action.

Homeowners have even more to worry about because once a property tax lien is applied the CRA will notify mortgagors, such as the bank. This will raise awareness of the tax dispute/issue and the outcome of this could be long-term destruction to your relationship with your bank.

If you own your home and have a tax dispute, tax debt or believe you may qualify for taxpayer relief, we recommended using your home as a tool to satisfy the CRA, then pursing your dispute.

Refinancing your home to pay off your tax debt will result in much less interest than the interest charged by the CRA. Using a mortgage as a tool to pay your tax debt can enable you to pay off large debt with very little impact to your budget/monthly payments.

Most banks will shy away from working with a customer who has a large tax debt - even if you are borrowing the money from them to pay the debt in full. The mere existence of a tax debt will lead to many banks flagging you as a high risk.

There are however many Credit Unions, Trust Companies, Mortgage Investment Corporations and even private lenders who will extend mortgage financing to individuals who have a large tax debt even if there is a lien on their property.

There are many mortgage solutions for taxpayers, who are in need of refinancing, to deal with tax debt. These include first mortgage refinancing, second mortgages and home equity lines of credit. A good mortgage broker will be able to access all funding sources and products so that you can see all of the options that exist. Also a mortgage broker can be trusted with all of your financial information without rendering judgment or damaging your banking relationships.

The fastest way to deal with a tax debt is to pay it off. If there is an underlying dispute or you want to apply for penalty relief – if it is granted the CRA will pay you the money. You can apply it to your mortgage as a lump sum payment to principal. For more information about the fastest way to solve your tax problem please visit http://www.gtamortgagematters.com/

Property Tax Assessments and Property Tax Arrears

2011-07-04T11:21:00.000-07:00

Property tax assessments are important because they determine the value that will be used by the municipality when calculating your annual property taxes.

Property taxes are one of the few debts that take priority on a property. What does this mean? If you were to default on your mortgage payment with property tax arrears, the property tax arrears must be paid otherwise property ownership could be transferred to the Queen. If a lender were to take possession of a property in the event of a mortgage default, they would not be able to sell it without first paying the property taxes.

It is for this reason that many lenders will collect your property taxes in conjunction with your mortgage payment each month and remit your property taxes on your behalf.

Most mortgages contain standard charge terms. These terms require that the borrower keep their property taxes up to date. If you have property tax arrears, your bank could do one of several things, these include:

1. Sending you a notice demanding that you pay your property tax arrears

2. Paying the property taxes on your behalf and then demanding payment in full

3. Calling in your mortgage and demanding to be paid off – in extreme cases

Property tax arrears can cause a snowball effect. Missing even one year of payments can cause thousands of dollars of debt to accumulate. You cannot go bankrupt on property tax debt because it carries with the land. If you have property tax arrears, the faster you deal with the issue, the better. Ignoring the problem will only cost you more in the long run because you will pay interest on the debt and if they file a lien on your property, you will have to hire professional help to get it removed.

Here are some helpful tips for dealing with property tax arrears.

1. Consider the big picture. If you owe too much in property tax arrears to pay off and/or you have other debt, a consolidation may be the best choice.

2. You can consolidate debt through obtaining a loan or mortgage. Refinancing your mortgage to consolidate debt is an effective solution because the interest rate will usually be low, giving you lots of flexibility when setting the amount of your monthly payment.

3. Do not walk in to your bank and ask for a loan to pay property tax arrears. Although well intentioned, this could disrupt your relationship with your bank. Pursue a relationship with a licensed mortgage broker where you can openly discuss the issues. A mortgage broker can recommend transparent solutions with financial institutions that will be open to helping you resolve your situation.

4. If you refinance your mortgage, ask that the lender collect your property taxes with your payment so that you don’t have to worry about it again in the future.

For more information about property tax assessments and property tax arrears please visit http://www.gtamortgagematters.com/

Equity Mortgage Home Equity Loans Are Based on Your Home Equity

2011-06-27T11:27:00.000-07:00

Equity mortgage home equity loans are also known as “private mortgages” and “equity only mortgages”.

The most common reasons cited by banks for declining mortgage applicants for financing are past or current problems with credit and difficulty proving income.

There are many people who have difficulty proving income; some examples of these people are part time employees with multiple part time jobs, self-employed individuals, sub-contractors, peace workers and commissioned sales people. Those who are not employed full time with supporting paystubs, T4’s and job letters will have to produce a notice of assessment.

A notice of assessment is a tax form that the CRA sends to tax filers after their return has been processed. Some self-employed individuals may declare a low net income after writing off business expenses and when trying to apply for a mortgage, the bank tells them that they will only consider the income declared on their income tax return.

This is where equity mortgages come in. Equity only mortgages are typically arranged by mortgage brokers and funded by private lenders, mortgage investments firms and/or trust companies. Private mortgages do not put as much weight on your credit history or income type, they rely more on their security – the security being the equity in your home.

The amount of equity you have in your home is directly related to the amount of risk that you represent to potential lenders. Usually equity mortgages are arranged for up to 75% of a homeowner’s property value.

The lender will order an appraisal of the property, which will determine the value of the property. A property appraiser will visit the property and provide the lender with their educated opinion of the properties market value. The amount loaned will be based on a percentage of that amount.

For example if your property was appraised at a value of $300,000, a lender will offer you 75% of the value of your home. If your mortgage is $150,000 then the equity available would be $75,000.

Do your homework and ask lots of questions. Some private mortgages can be very expensive or “interest only”. Interest only mortgages involve setting your minimum monthly payment to match the monthly interest due. In this case no principal will be paid down at the minimum agreed payment therefore good pre-payment privileges are a necessity.

A relationship with a mortgage broker will lead you to being more informed about your options and an important fact to keep in mind is that in the province of Ontario mortgage brokers cannot charge you up-front fees. For more information about Equity Mortgage Home Equity Loans and home equity visit http://www.gtamortgagematters.com/

Consolidated Credit Solutions Includes Consolidating Your Debt

2011-06-21T12:42:00.000-07:00

Solid consolidated credit solutions include reviewing your budget (looking for ways to save) and sometimes consolidating your debt! Taking a consolidation attack at improving your finances and credit will involve reviewing your budget, finances, credit, lifestyle, habits and more.

A multi-lateral plan will have to be drawn up and employed when creating your own consolidated credit solution. Here are some things you can do as part of your consolidated approach to improved financial health.

Request your credit report with your FICO Score (your credit score) to see what your credit looks like. Write down the different credit products, their interest rates and current balances.

Create a budget. Start by listing all of your monthly expenses from car insurance to groceries to wine. From there, look for ways to reduce your budget by 10% in each category.

If you own your home, start a relationship with a mortgage broker. You can make an appointment, where you will bring in your credit report and budget, ready to build a financial plan. If you own a home it could be the key, the final component of your consolidated credit solution.

Your home presents valuable security to a bank or any other lender that may enable you to obtain a consolidation loan at a low interest rate.

When considering using the equity in your home to consolidate your debt, it’s important to make informed choices. Yes, if you refinance your debt into your mortgage the interest will be much lower, however the amount of time you amortize your mortgage could have a counterproductive effect.

If refinancing your first mortgage to consolidate debt, consider reducing your amortization by a few years. This will only increase your payment slightly but at the same time it will reduce your overall interest significantly.

You could also consider a second mortgage, one that stands independent of your first mortgage. With a second mortgage, the interest rate is slightly higher but keep in mind that you can amortize it more aggressively and at a payment that would still be much lower than what you are paying to your creditors now.

As you can see by the points outlined in this article you have many choices when it comes to building your own personal consolidated credit solution. A good plan will ensure that you review all of your options and really come up with a strategy to work towards your financial goals. For more information about how you can build your own consolidated credit solution and consolidate your debt please visit http://www.gtamortgagematters.com/

Bad Credit Consolidation Loans

2011-06-14T11:02:00.000-07:00

Bad credit consolidation loans are offered to those who have struggled with their credit. The banks appetite for lending to those who have credit issues has lessened since the recession.

In 2005 many banks would finance a consumer who previously filed for bankruptcy, provided they had two years of re-established credit and a minimum credit score of 680. In the past a credit score in the 500’s was considered a bad credit score, however in today’s economic climate, a bank looks at a consumer with a 680 credit score as though they are high risk.

Banks are no longer obliged to give second chances. Banks such as Scotia Bank will not lend to a previous bankrupt at all, whereas some other banks will but only with many, many years of re-established credit.

Those who held on to their homes through the recession may have paid another price, namely their credit. Many hard working Canadians have left this recession loaded with debt and in a position where they have had no choice but to seek some form of debt relief.

No doubt your options will be limited if you have bad credit and need a consolidation loan. Some finance companies like Wells Fargo and Citi Financial, offer high interest consolidation loans (25%-30%) but even they will want to see a good credit score and at least two years of re-established credit.

If you own your home and you need a bad credit consolidation loan or are half way through a consumer proposal you may be able to leverage your home equity to consolidate your debt or payoff your consumer proposal.

There are many lenders who do not have a “retail” presence; you can access these lenders through a mortgage broker. Trust companies will extend equity financing to a customer who has struggled with credit based on the equity in their home. In addition so will some credit unions and private mortgage investment firms. Finally there are private lenders who will offer financing that major financial institutions won’t. Bottom line, a knowledgeable and well-connected mortgage broker is your best course of action.

You can use your home equity by refinancing your first mortgage or by taking out a second mortgage to consolidate your debt. This is also the most affordable way to obtain a bad credit consolidation loan because the interest is much cheaper than the unsecured loans offered by the high interest finance companies.

While customers who are looking for bad credit consolidation loans are finding at the retail level that there are fewer options out there, there are still many lenders who are willing to work with a consumer who has credit issues. The key is that you are taking positive steps towards rebuilding new and positive credit. For more information about bad credit consolidation loans please visit http://www.gtamortgagematters.com/

Credit Debt Consolidation – What is it and what options are available?

2011-06-06T10:26:00.000-07:00

Our first inclination is to always encourage a homeowner to turn to their home for a credit debt consolidation, strictly due to the fact that it’s the most affordable and flexible choice.

We wrote this article to talk about ALL of the credit debt consolidation choices available to anyone who struggles with debt. Let’s discuss the 5 most widely advertised credit debt consolidations.

Unsecured consolidation loan. There are many variations of unsecured consolidation loans that include lines of credit (often offered by banks) and term loans (offered by banks and finance companies). This is a viable option if your total debt is relatively small (less than $10,000). Compare the rate of the term loan against the rate of the consolidation loan. Do not take out a consolidation loan at a higher rate of interest than what you are currently paying to your credit cards. Some loans have “front loaded” interest, meaning the first payments will go primarily to interest. Ask a lot of questions. What is the interest rate? What is the term? Is there a balloon payment at the end? Is the interest front-loaded? Etc.

Home equity loans.There are also many types of home equity loans, from lines of credit to mortgages. A home equity loan does not impact your first mortgage because it sits in second position on title to your home. The home equity loan is secured against your homes equity. Depending on your credit, home equity loans charge significantly less interest than unsecured consolidation loans and offer more flexibility when negotiating your monthly payment. Home equity loans are offered by banks, finance companies and are available through most mortgage brokers.

Credit Counselling. Credit counselling is intended for people who have a low income and a limited amount of debt (less than $10,000). Credit counselling programs involve making a single payment to a credit counselling agency that is in turn distributed to your creditors. Due to the fact that it involves paying your creditors less than your contractual minimum payment, the end result is that it will damage your credit.

Consumer Proposals. Consumer proposals are administered by trustees in bankruptcy and involve making a settlement to your creditors that is much less than you actually owe. If accepted by your creditors you will make a single payment to a bankruptcy trustee for 3, 4 or 5 years. A consumer proposal can be paid off at any time and is removed from your credit report three years from the date it is paid in full.

Bankruptcy. A bankruptcy trustee also administers bankruptcy and once you are bankrupt you will be obliged to the trustee for a period of time. While undischarged you will make a monthly payment to the bankruptcy trustee based on your income. Each month you must report your income along with participating in credit counselling sessions. A bankruptcy will remain on your credit report for 6 years after you have satisfied the obligations to your trustee and become discharged.

For more information about credit debt consolidation visit www.gtamortgagematters .com.

How to Get Out of Debt Fast

2011-05-24T08:34:00.000-07:00

There is no shortage of “leisure suit Larry’s” out there, offering variations of “get out of debt quick” schemes, even going so far as to promote their services as debt consolidations. These services exist because nowadays so many Canadians are looking for ways to get out of debt fast.

There are several options available to those who are looking to rid themselves of debt. Some will take longer while some provide immediate debt relief. Some solutions to get out of debt will help your credit, but choose wisely. The wrong choice, the wrong method will further destroy your credit.

So how can you get out of debt fast without destroying your credit?

If you are a homeowner, the cheapest and most flexible solution is to consolidate your debt and reduce your monthly payment. You can achieve this by refinancing your first mortgage, taking out a small second mortgage or by opening a line of credit. Any of these options will prove the following benefits:

- This type of credit often charges much less interest than traditional credit cards and store cards

- Low payments will immediately increase your cash flow

- If you have a lot of debt, you can often borrow more from your home than an unsecure consolidation loan

If you are a homeowner who has struggled with credit, all is not lost. There are many lenders who do offer home equity loans even to those who have past credit problems.

In recent times banks have become much tighter with their lending practices. They will often decline a homeowner for a mortgage to consolidate debt, even if they have good equity. They cite reasons such as a bad credit history or the inability to prove their income. While banks may be shying away from these types of deals there are many lenders who are not.

There are a number of trust companies, private lenders and mortgage investment corporations who do help homeowners currently drowning in debt. You can find out about these types of lenders and access them through a local mortgage broker, one who specializes in working with people who have bad credit histories.

If you don’t own your home and depending on your credit, other choices to get out of debt fast include unsecured debt consolidation, credit counselling, consumer proposals and bankruptcy.

Before going to your bank, a debt counsellor or in the worst case scenario, a bankruptcy trustee, speak to a good mortgage broker about your options – it could be a choice that saves your credit and puts you on the road to increased wealth and financial stability. For more information about how to get out of debt fast please visit http://www.gtamortgagematters.com/

Bad Credit Refinancing is Available to Homeowners in Ontario – is it the best choice?

2011-05-16T08:05:00.000-07:00

Homeowners in Ontario, especially in Toronto, are amongst the most highly taxed in the country. These taxes in combination with rising gas prices and ever-present inflation have made it increasingly difficult for the middle class homeowner to make ends meet.

To make matters worse, the Federal Government has tightened its mortgage lending guidelines across Canada and the Bank of Canada has made a number of quarter point increases to the national lending rate.

The economy in Ontario is steadily improving but a number of Canadians are coming out of the recession with bruised credit. The automotive manufacturing industry has endured mass layoffs, as have the supporting industries that supply the automotive manufacturing sector. They are not alone; many service sectors like the financial services sector have suffered similar circumstances.

Those who have bad credit have fewer choices when it comes to bad credit refinancing but that doesn’t mean that it’s not available.

Bad credit refinancing is available to homeowners in Ontario. It can be a good choice for families who need to consolidate debt, cover the costs of home improvements or pay for their children’s education.

If you are considering pursuing bad credit refinancing, you will have more negotiating power if you thoroughly understand the current state of your credit and financial profile, thereby knowing what value you present to a prospective borrower.

You can do this by obtaining your credit report to see your credit score. It may not be as bad as you think. Most banks require a minimum credit score in of 680 before they will consider an applicant for credit. CMHC will approve high ratio insurance for an individual with a credit score of as little as 620 if they have not had any late payments in the past 3-4 years and are free of bad debt.

Trust Companies, credit unions and mortgage investment corporations all offer CMHC insured mortgage refinancing to individuals who have credit scores that are above 620 but less than the banks minimum of 680.

If your credit score was 670, then you may want to consider strengthening it somewhat so that you can qualify for a mortgage that is financed by the bank. A mortgage financed by the bank is always a more desirable option because they are able to offer the lowest, discounted mortgage rates.

Whether you want a mortgage financed by the bank, a trust company, finance company or private equity lender, you will score the best deal by going through a mortgage broker. A mortgage broker can look at your credit application and let you know exactly what type of credit products you qualify for. For more information visit http://www.gtamortgagematters.com/

Bad Credit Consolidation Loans Can be an Expensive Option

2011-05-09T07:35:00.000-07:00

If you have accumulated debt that has become unmanageable and you own your home, then you realize that there is a lot to lose.

Bad credit debt consolidation can be very expensive. The banks usually recommend lines of credit as a solution for consolidating debt; only, lines of credit are akin to taking out one giant credit card and bear monthly compound interest.

Some finance companies offer unsecured bad credit consolidation loans, however they bear interest of 20%-30%.

Beware of companies that promote debt consolidations by suggesting that you participate in a program that freezes the interest on your credit products or reduces the amount of debt that you owe. This is often a ploy and leads you to sign up for credit counselling or filing a consumer proposal that will ultimately destroy your credit.

The most affordable type of bad credit loan is a home equity loan. This could be achieved through refinancing a first mortgage or by obtaining a second mortgage. Let’s explore both options.

To consolidate debt, your lowest interest option would be to refinance your first mortgage. Depending on the amount of debt that you are consolidating, refinancing your mortgage will immediately increase your cash flow. Your credit payments will disappear and your mortgage payment will only increase slightly.

If you obtain a second mortgage, the interest will be slightly higher than a first mortgage, however, it will significantly reduce the amount of money you are spending on credit payments.

The ideal way to get the best deal on a consolidation loan is to consult a mortgage broker. Mortgage brokers are knowledgeable about all the different lender products and can often negotiate a lower rate at your bank than you would get if you went to the bank on your own. In cases where the applicant has good credit, the bank will often pay the mortgage brokers fees.

Those who require a bad credit consolidation loan stand to get the most benefit out of a relationship with a mortgage broker because depending on how bad your credit is, mortgage brokers are usually the only way to access a private equity mortgage. For more information visit http://www.gtamortgagematters.com/

Bad Credit Home Loans Too Easy to Come by?

2011-05-02T10:05:00.000-07:00

Bad credit home loans used to be relatively easy to come by but times have changed and this is no longer the case. Unless you have at least 20%-25% equity in your home, you may find it challenging to qualify for a bad credit home loan.

Most banks will require that you have a minimum credit score of 680 to qualify for a conventional mortgage. If your credit score is lower, it is reasonable to assume that they will treat you as having bad credit.

Also, if you are self-employed or have difficulty proving your income you may be considered high risk, comparable to someone with bad credit.

If you have bad credit or difficulty proving your income, you can still obtain a bad credit home loan. In most cases, the best place to find this type of loan is through a local mortgage broker. Private companies and individuals generally offer bad credit home loans.

These companies and individuals entrust the mortgage broker to bring them qualified candidates and administer their mortgages. They will grant a bad credit home loan based on the equity in the applicant’s home, not based on their credit.

If a bank declines you for a mortgage, this does not mean that you are instantly a candidate for a bad credit home loan. Your credit may not be that bad at all. In the past couple of years, the major Canadian banks have tightened their lending practices making it much harder to get approved for a mortgage.

In many cases, homeowners think that they have worse credit than they actually have because the bank has declined their credit application. There are many Schedule B banks, credit unions and trust companies that offer mortgages at bank interest rates to people who don’t qualify for mortgage financingthrough the bank.

If being declined from your bank is the reason you think you have bad credit and you have not otherwise made late payments or defaulted on credit; then you may want to consider requesting your credit report. If you decide to consult a mortgage broker, they can educate you about possible issues with your financial profile at the same time discussing possible options that will lead you to achieve your financial goals.

If you have already applied to numerous lenders for home loan financing, stop. This will damage your credit score. Each application for credit in excess of 4 per year will have a negative impact on your credit score.

Before you can continue looking for home loan financing, you must first figure out how bad your credit and financial profile is. You may be pleasantly surprised to learn that it’s not as bad as you may have thought. For more information visit http://www.gtamortgagematters.com/

Bad Credit Mortgages Are Available in Ontario if you have Some Home Equity

2011-04-28T11:25:00.000-07:00

There have been a number of changes to the way financial institutions are lending money in Ontario. As recently as 5 years ago, there were a number of financial mortgage options for individuals with bad credit.

In recent years the Canadian Government, banks and other major lending institutions have tightened guidelines, in many cases not granting bad credit mortgages at all. This is a good stride for the Canadian economy but that is of little consolation to those who have accumulated debt and need help.

Bad credit mortgages are still available, they are just not offered by as many retail financial institutions. Lenders, who offer bad credit mortgages, are primarily trust companies, finance companies and private lenders. Many of these institutions only lend their money through mortgage brokers.

To qualify for a bad credit mortgage you will need to have equity in your home. In most cases, bad credit mortgages will only be granted for up to 75% to 85% of the value of the home. Bad credit mortgages are also referred to as equity mortgages.

Conversely if you need a bad credit mortgage to purchase a home, you will need 20%-25% down payment to qualify.

The typical process of applying for a bad credit mortgage is:

1. An application is made to a mortgage broker
2. Upon approval, an appraisal will be ordered on your property
3. If the appraisal comes in at value you will sign a “mortgage commitment”
4. The file will then be sent to a real-estate lawyer to close the deal
5. You will sign with the lawyer
6. Funds will be dispersed.

The bad credit mortgage process takes about 3-4 weeks and is a great way to raise money to consolidate debt or pay for home renovations. Bad credit mortgages often bear less interest than unsecured credit products, such as credit cards or lines of credit.

On top of that, if you use your home equity to pay off debt and build stronger credit, your bank may consider taking over your bad credit mortgage in the future. For more information about bad credit mortgages in Ontario visit http://www.gtamortgagematters.com/

Who Sets Ontario's Mortgage Rates and Where Can You Find the Lowest Mortgage Rate?

2011-04-18T09:42:00.000-07:00

Mortgage rates in Canada are set by the Bank of Canada. When the Bank of Canada changes interest rates, banks across Canada change their rates accordingly. When planning to purchase your home, the better informed you are about mortgage rates, the greater chances you will have of finding the lowest mortgage rate possible.

Most people think of only their bank when it comes time to get a mortgage. But when you deal with a bank, you are only dealing with one lender – the bank. Because mortgage rates fluctuate coast to coast, it’s a good idea to consider working with an Ontario Mortgage Broker to make sure you are getting the lowest mortgage rate possible.

Mortgage Brokers in Ontario have access to numerous financing choices that many people wouldn’t normally think of, including trust companies and private loan companies. Ontario Mortgage Brokers will research and compare mortgage rates from hundreds of banks and mortgage lenders across Canada to match the lowest mortgage rates with the best terms available. Using a Mortgage Broker in Ontario will save you time and money because all the research and paperwork will be done for you!

Take some time to educate yourself about mortgage rates in Ontario and across Canada. Start by subscribing to the Bank of Canada blog to learn about mortgage rates and how they fluctuate throughout the year and across Canada. Conduct Google searches for mortgage brokers offering the lowest mortgage rates. Visit the Financial Services Commission of Ontario (FSCO) website to locate a licensed Ontario Mortgage Broker who can assist you in the search for the lowest mortgage rates to fit your budget.

Doing some online research and consulting with an Ontario Mortgage Broker will save you time and money, and will increase your chances of getting the lowest mortgage rate possible to fit your budget.

The Mortgage Centre is one of Mississauga, Ontario’s leading mortgage brokerage firms, offering seamless solutions to all your mortgage needs. Whether you want to buy a home, set up a new business or even finance an existing loan or mortgage, we offer you the perfect solution to cater to your specific requirement.

For more information visit http://www.gtamortgagematters.com/

Get Out of Debt Ontario! An Ontario Mortgage Brokers’ Call to Action

2011-04-11T09:33:00.000-07:00

At the end of 2003, Canadians held $517.7 billion in mortgages. There were 84,297 personal bankruptcies in 2003, up 52% from a decade earlier.

In December 2009, household debt in Canada reached $1.41 trillion. Spread evenly across all Canadians, each individual would hold approximately $41,740 in debt in 2009, an amount 2.5 times greater than in 1989. Total consumer credit issued by chartered banks grew from 21.1% in 1989 to 77.7% in 2009.

In Ontario alone, the Ontario Association of Credit Counselling Services reports a 60% increase in its clients since 2000 – clients whose incomes have increased by 15% on average but whose debts have soared by nearly 60%.

Some experts say a booming real estate market and interest rates at historically low levels have Canadians saving less and taking on more debt. The total debt per household is now equal to 125% of disposable income, up from 91% in 1990, an increase that has helped push insolvencies to record levels.

There is, however, a way for Ontarians to solve this crisis and get out of debt. With the help of a licensed Ontario Mortgage Broker, people in Ontario can consolidate their debt and begin saving money. A debt consolidation loan is a great idea, particularly if you have equity in your home, because it allows you to pay off multiple creditors at once, so you only have one payment to make each month instead of many payments.

An Ontario Mortgage Broker can assess if there is sufficient equity in your home to utilize a consolidation loan, and will assist you in the application process. You should consider a consolidation loan for the following reasons:

• A consolidation loan can reduce or even eliminate consumer debt
• Interest rates on a consolidation loan are usually lower than the interest rates on credit cards and lines of credit
• A consolidation loan replaces several different payments to different creditors with one monthly affordable payment to your financial institution
• Consolidation loan payments are affordable, and easy to manage and keep within your budget

It is recommended that you work with an accredited Ontario Mortgage Broker when applying for a consolidation loan to eliminate your debt. An Ontario Mortgage Broker has a solid relationship with all the banks and lenders to ensure you get the best rates and service you deserve.

For more information visit http://www.gtamortgagematters.com/

Who Regulates Ontario Mortgage Brokers?

2011-04-04T10:47:00.000-07:00

In Ontario, mortgage brokers and the mortgage broker industry in general is regulated by the Financial Services Commission of Ontario (FSCO).

If you are planning to use the services of an Ontario Mortgage Broker, it is important that you educate yourself on the industry and that you are informed about the Mortgage Brokers and Lenders Administration Act (2006). It is also imperative that you:

• Confirm that the Ontario Mortgage Brokerage is licensed
• Confirm that the Ontario Mortgage Broker is licensed
• Understand how Ontario mortgages work
• Understand how Ontario Mortgage Brokers are regulated

It is against the law for an Ontario Mortgage Broker to operate business without a valid license. The FSCO exists to protect consumers against fraudulent mortgage practices, by requiring that all agents and brokers in Ontario prominently display their licensing information on their websites. If you are dealing with an agent or broker in Ontario, ask to see their license and qualifications before conducting business with that individual. If the agent or broker cannot provide documentation, always consult the FSCO first, before conducting business with that individual.

There are several benefits to dealing with a licensed and regulated Ontario Mortgage Broker or Brokerage:

• The Ontario Mortgage Broker will be properly educated and have experience in the field of Ontario mortgages
• The Ontario Mortgage Broker will be experienced and be able to provide advice confidently and accurately
• The Ontario Mortgage Brokerage will be held accountable for ensuring all Mortgage Brokers follow the law
• Should fraudulent activities occur, the Brokerage will have errors and omissions insurance with the proper coverage to protect consumers against these types of activities
• All Ontario Mortgage Brokers must disclose the nature of their relationship with borrowers and lenders

The FSCO monitors and investigates all incidents of non-compliance, and takes appropriate action against Ontario Mortgage Brokers and Ontario Mortgage Brokerages who do not follow the law. If the Ontario Mortgage Broker or Ontario Brokerage is not licensed with the Financial Services Commission of Ontario, it is recommended that you find an individual who is.

For more information visit http://www.gtamortgagematters.com/

How to Obtain an Ontario Mortgage Approval at Mortgage Terms that Fit Your Budget

2011-03-28T08:59:00.000-07:00

For most people, buying a home is the biggest investment they will ever make. It can be both exciting and stressful, especially when it comes to the financial aspect of it. Before you even start shopping for that dream home, it is a good idea to crunch some numbers to see exactly what you can afford. So how do you get approved for an Ontario mortgage at rates that fit your budget?

Get all your eggs in one basket before you approach an Ontario Mortgage Broker or Brokerage. Create a financial report card that will detail in black and white exactly where you stand financially. The report card can contain the following information:

• Any outstanding consumer debt like credit cards, lines of credit, etc.
• A list of assets such as vehicles, property, investments, etc.
• A list of expenses including credit card payments, loan payments, utilities, car payments, groceries, insurance, etc.
• A history of consumer debt payments – do you pay your bills on time? Do you pay the balance in full or carry the balance month to month? Have you ever been contacted by a collections agency?

Once you have completed the financial report card, you should know what you can afford based on your income versus your debts and other monthly obligations. This is where the true research begins.

If your credit score is low or a traditional bank will not approve you for a mortgage, an Ontario Mortgage Broker also has access to many alternative lenders who may be more flexible with mortgage approvals. Additionally, an Ontario Mortgage Broker can guide you through a list of ways to repair your credit or increase your credit score to improve your chances of getting approved for a mortgage.

To get approved for an Ontario mortgage with the best mortgage terms that fit your budget, consider dealing with a licensed Ontario Mortgage Broker. An Ontario Mortgage Broker has built a solid relationship with banks and lenders to ensure the best mortgage terms possible. Working in tandem with that Ontario Mortgage Broker, visit your local banks or financial institutions to determine what mortgage rates they are currently offering based on the amount you believe you will need approval for. Take this information to your Ontario Mortgage Broker to see if lower rates are available.

Remember that the Ontario mortgage approval you receive must be on terms that fit your budget. Ask your Ontario Mortgage Broker to compare existing rates to make sure you get the best deal you need for the dream home you want to buy. Getting approved for an Ontario mortgage with terms that fit your budget is possible – it just requires a little research and a trusted Ontario Mortgage Broker.

For more information visit http://www.gtamortgagematters.com/

How to get Approved for the Lowest Interest Mortgage in Canada

2011-03-14T10:50:00.001-07:00

If you want to get approved for the lowest mortgage interest rate in Canada then you are going to have to ensure that you are in tip top financial shape.

The lowest interest rates are offered to consumers who have excellent credit and a strong financial profile. So how do you know if that’s you?

First, request your credit report from Equifax. Lenders want to see that you have a minimum credit score/FICO score/Beacon Score of 680. Other things that are revealed on your credit report (even if your credit score exceeds 680) that the bank will frown upon are:
1. Too many applications for credit
2. Late payments
3. Too many credit products
4. Credit products that are near, at or over their limits

They also want to see that you can prove your income. Typically the bank will ask you to provide a T4 or paystub if you are employed. If you are self-employed the bank may ask you to provide two years of tax assessments.

They will also want to see that you have good stability and that your monthly payments to credit do not consume too much of your income. Your debt service ratios are calculations that your bank uses to measure what percentage of your gross income is consumed by housing and debt payments. As a rule of thumb your housing payment should not exceed 30% of your gross income and your housing payments plus consumer debt payments should not exceed 40% of your income.

These are all things that you should think about before you start shopping for a mortgage. Many consumers only approach a mortgage broker when they want a mortgage. A mortgage broker is an excellent resource to help you look at your financial profile and find ways to improve it so that you can qualify for the lowest mortgage interest rates that are offered in Canada.

For more information please visit www.gtamortgagematters.com.

Time to Lock In Your Mortgage If You Want Canada’s Best Mortgage Rates

2011-03-07T12:38:00.000-08:00

Given the fact that Canada has raised its lending rate three times in the past year, now is a good time to look at your finances and consider locking in your mortgage. The Canadian economy is improving and one sign of this is the fact that the Bank of Canada has raised rates.

The Bank of Canada also recently cautioned Canadians about overuse of credit as the average Canadian household is carrying too much debt. This further signals that they want Canadians to reduce their debt because rates will likely continue to rise as long as the economy can sustain it.

If your household is carrying more than $20,000 in credit card debt, you may want to consider how you can use your home to improve your overall financial situation.

As the Canadian economy continues to improve, the Bank of Canada will continue to increase its lending rate. Refinancing your mortgage to consolidate debt can be a great option if you structure your new mortgage properly.

First, consider if it is time to lock into a fixed rate mortgage and commit to a longer mortgage term to avoid any fluctuation in your mortgage rate. Locking into a fixed rate mortgage could ensure that in the years to come you will have Canada’s best mortgage rate, even if the Bank of Canada’s lending rate continues to increase in the months and years to come. If you are trying to achieve short term financial goals and think you may be selling in the next 24 months then it may be a better choice to stay with a variable rate mortgage.

Second, when refinancing your home to pay debt, ensure that you reduce your mortgage amortization. For example, if you are currently 22 years into a 25 year mortgage amortization, do not refinance the mortgage back out over 25 years. You just wouldn’t believe how many people do this and the result is that you will start your interest all over again. If anything, in consideration to the new debt you are adding to your mortgage, consider reducing your mortgage amortization by one or two years.

If you want to lock in your mortgage and obtain Canada’s best mortgage rate consult your local mortgage broker and visit http://www.gtamortgagematters.com/

Do Variable Rate Mortgages Offer Canada’s Best Mortgage Interest Rate?

2011-03-01T12:40:00.000-08:00

Generally fixed rate mortgages bear slightly higher interest rates than variable rate mortgages. This is because with a fixed rate mortgage the bank is guaranteeing your rate for a period of time no matter what happens in the economy. If Canadian interest rates go up and you have a fixed rate mortgage, your interest rate will stay the same.

Fixed rate mortgages also usually compound semi-annually (2 times per/year) where variable rate mortgages usually compound monthly (12 times per/year). If a bank it offering a variable mortgage rate that is within 1% of the fixed rate mortgage then the “amount” of interest that you end up paying is almost the same.

The reason variable rate mortgages are often offered at lower interest rates is because the interest floats with whatever the Bank of Canada lending rate is. If the Bank of Canada increases its lending rate and you have a variable rate mortgage, your interest rate will be increased accordingly.

In the past 10 years Canada has seen historically low interest rates and so many Canadian have gotten comfortable with variable rate mortgages while to the consumer they bear a higher risk. Low interest rates are a sign of economic instability and so when they are extremely low, they have nowhere to go but up. In Canada the Bank of Canada has announced 3 interest rate increases in the past 12 months.

So how do you decide what type of mortgage is best for you? Well that depends on your financial goals. If you plan to be in your home 5 years or longer it may be a good time to see what fixed rate mortgages are available. If you plan to move in the next year or two a variable rate mortgage may make more sense because interest rates are still very low and so you have less risk by choosing a variable rate mortgage and watching the economy. Most Canadian banks that offer variable rate mortgages offer an option to lock in.

The best thing to do to find out your options is consult a local mortgage broker. Mortgage brokers generally have relationships with all of the major Canadian Banks. They also deal with other banks like ING and PC Financial who offer mortgage financing in Canada but do not have a retail presence. A mortgage broker can educate you about your mortgage options and help you plan for a mortgage that will ensure you achieve all of your financial goals. For more information visit www.gtamortgagematters.com.

Mississauga Debt Elimination Mortgage Tips

2011-02-23T16:22:00.000-08:00

Mississauga Debt Elimination Tips To Help You Become Debt Free

Are you trying to do everything you can to become debt free, but can’t seem to manage it no matter how hard you try? Then you need to know some debt elimination tips that will allow you to achieve your goal easier.

There are three skills that you have to learn so you can become debt free. This may be hard to do, but using these techniques will allow you to finally start seeing an end to your mountain of debt, which is not something everyone will achieve in their life.

By using the following tips, you will have a much higher chance of seeing your dream of being debt free come true.

One: Cash flow control – You have to keep track of where your money goes every month. This will allow you to get control of your money, so you are spending only on the things that are necessary and not for buying new clothes or other things that are not needed.

Getting control over your money and knowing where it is going each month is crucial to becoming debt free. If you can’t learn to control the money you have, then you can count on being in debt for a long time in the future.

Write down everything you spend your money on because having a visual of where your money goes will help you get more control over it. The sooner you can achieve this skill, the sooner you will be on your way to being free from debt.

Two: Exert control over your spending habits – Once have control over where your money is going, you have to be sure that you stick to it. Controlling the money is the easy part because this is just how you will know where it goes every month.

The hard part is exerting control over yourself and not spending money on items that are not needed.

No one, but you can control your money, so take control over yourself and you will be able to achieve this skill and before you know it, you will see your dream of getting out of debt starting to become a reality.

Three: Start using your money to wisely eliminate debt – Instead of spending your money on items that are not necessary, you want to use it to start paying off your debt as quickly as you can.

It may take some help from an expert to achieve this goal. They can help you get it down to one monthly payment by using debt consolidation. This will allow you to make bigger payments each month on the one debt you have left so you can get your debt reduced faster.

Now that you know these debt elimination tips to help you become debt free, you just need to be smart and start using them. If you are serious about eliminating your debt, then you want to get started immediately because the sooner you do, the sooner you will see the light at the end of the debt free tunnel.

Summary: Are you trying to do everything you can to become debt free, but can’t seem to manage it no matter how hard you try? Then you need to know some debt elimination tips that will allow you to achieve your goal easier.

Paul Mangion
http://www.gtamortgagematters.com/

Rate Shopping for Low Canadian Mortgage Interest Rates – Do’s and Don’ts

2011-02-21T09:09:00.001-08:00

If you are thinking of purchasing a home or locking in a low mortgage rate on a home you already own, you may already be doing research to find the lowest interest rate.

We always recommend doing lots of research when trying to obtain the lowest mortgage interest but always caution consumers when it comes to actually obtaining “pre-approvals” from multiple financial institutions.

Each time you apply for credit, it is reported to your credit report. You really should not make more than four credit applications in one calendar year. If you make too many applications for credit it could pull down your beacon score.

Canadian banks can be very sticky and require you to have a minimum credit score of 680, so if you want to get a mortgage and the best Canadian mortgage interest rates your credit score will have to be higher than that.

Some Trust Companies and Credit Unions offer CMHC high ratio mortgages for consumers who have a credit score of 620-680 but usually, these companies won’t offer discounted interest rates under these circumstances.

We always recommend that you consult a local mortgage broker if you are shopping for Canada’s best mortgage interest rates. They will be able to tell you what all the banks are offering and are also able to offer discounted rates with some banks. Also, if you don’t have a strong enough credit score they will be able to come up with other solutions for you.

If you are preparing to apply for a mortgage:

Do: Obtain a copy of your credit report with “FICO” score to see what it is there

Do: Start a relationship with a local mortgage broker

Do: Follow the Bank of Canada website to stay in the loop on rate announcements

Don’t: Go from bank to bank applying for mortgages to see what you can get. This could seriously damage your credit and ability to qualify for a mortgage at all.

For more information about shopping for low Canadian mortgage interest rates visit http://www.gtamortgagematters.com/

Canada’s Best Mortgage Interest Rate! Who Is Offering It?

2011-02-17T07:45:00.000-08:00

Unless you have a lot of time on your hands, trying to obtain Canada's best mortgage interest rate is a lot harder than you think.

It's not hard because Canadian mortgage interest rates are high, it's hard because there are so many lenders.

Traditionally Canadians have turned to their banks for a low interest mortgage approval but now Canadians have so many other options. “No branch” banks like ING and PC Financial have no overhead and usually offer lower interest mortgages than the major banks. Also some banks have large mortgage centres and offer promotions that are not available to the public.

The best way to have your finger on the pulse of Canadian mortgage interest rates is to start a relationship with a Canadian Mortgage broker. You don’t have to be looking for a mortgage right “now”, but doing so will enable you to develop a relationship with someone who will be able to help you in the future.

Your broker can help you prepare, plan and shop around for the best mortgage interest rates, without you racking up unnecessary credit inquiries to the credit report.

A lot of Canadian mortgage lenders (including banks) don’t advertise to the public or have retail locations because they exclusively loan their money out through mortgage brokers. The only way to get these deals is to have a mortgage broker.
If you haven’t contacted a mortgage broker because you didn’t want to get onto the radar and start receiving sales follow up, then follow their blog. Following their blog enables you to receive useful information and updates. For more information visit http://www.gtamortgagematters.com/

Use Your Home to Consolidate Debt but Choose a Lower Amortization Instead of a Lower Payment

2011-02-07T06:48:00.000-08:00

If you have accumulated a lot of debt and you have some home equity, your home is a very affordable tool that you can leverage to negotiate a low rate consolidation loan.

In many cases homeowners who refinance their homes to consolidate debt will blend the debt into their first mortgages. Depending on the new mortgage amortization, your new mortgage payment may not increase at all and because the debt has been eliminated you will immediately free up new cash flow.

The danger here is that the debt still exists only it’s been transferred over to your home. If you are 5 years into a mortgage that was originally amortized over 25 years and have 20 years left, refinancing your mortgage amortization back out over 25 years puts you right back to step one and with an even bigger mortgage.

Your bank or broker may even quote you a payment based on the maximum amortization. Don’t be afraid to ask your mortgage broker to quote you the payment based on different amortizations so that you can compare.

Here is an example based on a consumer with a mortgage that has a 20 year amortization left on it, a balance of $220,000, a 6% interest and a monthly payment of $1,315 per/month. If the same consumer was also carrying $25,000 in debt with monthly payments totalling $1,200 per/month the consumers total monthly payments would be $2,515.

If the first mortgage was refinanced to $245,000 to pay off all the debt at the same rate based on a 25 year amortization the new monthly payment would be $1,288. The debt would be completely wiped out and the new monthly mortgage payment is almost the same as what the consumer had been paying on their existing mortgage.

The same mortgage that is paid off all the debt based on a 20 year amortization would have had a monthly payment of $ 1,480 per/mo and $ 1,808 monthly mortgage payment based on a 15 year amortization. The 15 year amortized mortgage makes the most financial sense because you have reduced your total mortgage repayment to 15 years and have still reduced your monthly payments by $700 per/month.

This is just one example of how you can use your home to pay off debt while making effective financial decisions that consider the whole picture. For more information about how to use your home to consolidate debt and choose a lower amortization instead of a lower payment please visit www.gtamortgagematters.com.

How to Get the Lowest Mortgage Interest Rates in Brampton

2011-02-01T08:23:00.000-08:00

If you own your home in Brampton and are thinking about buying another home or refinancing; or you don’t own a home yet and simply want to purchase a home in Brampton, you may be starting to think about how you can get the lowest mortgage interest rate.

Your first thought may be to speak with your bank. While your bank may offer you a good deal, it still may not be the best mortgage interest rate with the best mortgage terms. Shopping around could be scary because the last thing you want to do if you are looking for a mortgage is rack up inquiries on your credit report which will drag down your credit score.

Also, going back to the idea of going to your bank as your first choice, well it may also just be a better idea to diversify your portfolio establishing relationships with different creditors. For example, if your bank account, RRSP, and mortgage are with different banks, you will have more borrowing power in the future as all three will know you. If you put all of your credit products in the same place, then only one financial institution will know you.

Your best bet is to look for a local mortgage broker. They will have access for mortgage interest rate information about all of the major banks as well as other lenders at the local level, like Trust Companies, Credit Unions, Mortgage Investment Corporations and more. They also have access to major banks that don’t have a retail presence like ING, PC Financial and some others that often offer lower mortgage interest rates than the major retail banks.
It doesn’t cost anything to speak with a mortgage broker about what’s available and in many cases, the bank or financial institution that you choose will cover the broker’s fee, so in most situations you don’t have to pay the mortgage broker anything!

What is important is that you do a lot of research because a home and mortgage is a huge financial undertaking. We are not talking about thousands of dollars here, we are talking about hundreds of thousands of dollars and even a 1% savings interest can make a substantial difference in your principal mortgage repayment and monthly mortgage payment. For more information visit www.gtamortgagematters.com.

How to Get Approved for a Line of Credit at a Bank in Brampton

2011-01-25T07:22:00.000-08:00

Running a business like Brampton/Mississauga mortgage broker leads to a lot of interaction with home owners in the community. Often times we encounter customers looking to consolidate credit card and line of credit debt that they have accumulated at their bank.

This is because often times the first thing a consumer who needs credit will often do is go to their local bank. This often will not result in the best deal. When you go to your bank they are selling you the products and services offered by their bank. It doesn’t necessarily mean that the product or service they are selling you makes the most sense.

Here is one example. Scotiabank offers a mortgage product where they offer you a line of credit against your home at the time of purchase. Normally if you obtain a home equity line of credit the bank will register your line of credit in second position on your home. Well this particular mortgage product is registered as a single mortgage and usually the mortgage registered is much greater than the amount owed, usually encumbering all of the equity in your property.

Some banks will push you to take an unsecured line of credit which will usually bear a much greater interest rate then a home equity line of credit.

If you own a home in Brampton, the best thing to do is to talk to a local Brampton mortgage broker. They will be able to review the home equity line of credit product with multiple banks, help you compare the positives and negatives of each one and negotiate the best terms on your behalf.

If you have been thinking about obtaining a home equity line of credit, time could be running out. CMHC recently announced that it will be withdrawing high ratio insurance on home equity lines of credit so depending on how much equity you have in your property this change may affect your ability to qualify with the bank. This is another way a local Brampton mortgage broker can come in handy. They will have access to other funding sources that may be able to help. Other companies that offer home equity line of credit products include trust companies, credit unions and finance companies. For more information about how to get approved for a line of credit with a bank in Brampton please visit http://www.gtamortgagematters.com/

Jim Flaherty Announces New Mortgage Rules – Canadians, Call Your Mortgage Brokers!

2011-01-18T06:47:00.001-08:00

The Globe and Mail reported this morning that Finance Minister Jim Flaherty announced new mortgage rules.

Most high ratio mortgages (mortgages that are more than 75% the value of the home) are high ration insured by the Canadian Mortgage and Housing Corporation (CMHC) and their lending guidelines (which are dictated by the Ministry of Finance) largely determine how much money you will be able to borrow against your home.

While these new rules are responsible and in the best interest of Canadians, they will impact homeowners because the Canadian Government is further tightening the amount of equity you will be able to take out of your home (with CMHC insurance).

Here are some of the highlights of the new federals rules that were announced. The new rules will:

1. Reduce the maximum amortization period to 30 years from 35 years for CMHC (government) insured mortgages where the loan to value exceeds 80 per cent.

2. Reduce the amount Canadians can borrow when refinancing their mortgages from 90% loan to value to 85% loan to value.

3. Begin the process of withdrawing CMHC insurance on lines of credit that are secured by home equity.

These rules are scheduled to take effect in March of 2011. So, what does this mean to you?

1. If you are currently living your lifestyle around having a mortgage payment that is based on an amortization of more than 30 years, it is time to start thinking about how you can eliminate other debt and payments. Your bank may want to reduce your mortgage amortization when your mortgage term is due and you are trying to renew your mortgage and this will directly impact your payment (making it higher). Also traditionally mortgage amortizations have been based on 25 years and it seems that CMHC may be headed back into that direction. So while now it is being reduced to 30 years, in the future it may be further reduced to 25 years.

2. If you have been thinking about refinancing your home to consolidate debt, you had better call your mortgage broker a.s.a.p. Now that this announcement was made, the banks will quickly start to adjust their rules to comply. This will happen likely before the rules do, so if you need to take more than 85% of the equity out of your home – the window of time is closing fast.

3. If you planned on obtaining a home equity line of credit for a home renovation or some other reason, this may be more difficult now. Without CMHC insurance, the banks will be less likely to issue high ratio lines of credit based on home equity. Some banks may also reduce the limit on your existing line of credit in the event that the insurance is withdrawn. Your mortgage broker can tell you what other financial products are available. A second mortgage is a viable option as you often do not CMHC insurance to get one.

This is a positive step on the part of the Canadian Government because while it further restricts the amount that you can borrow against your home, it prevents you from leveraging all of your home equity. A healthy mortgage amortization is 25 years or less and the idea of paying off your mortgage over more than 30 years is not a financially responsible one.

As the Canadian government continues to move in a more conservative direction with respect to lending principles we must follow suit with respect to our borrowing and spending habits. We can do this by taking a hard look at our household debt, find ways to pay it down and improve our overall financial goals. For more information please visit www.gtamortgagematters.com

What is the Minimum Credit Score Needed to Get Approved for a Mortgage in Brampton and Around the GTA?

2011-01-10T10:33:00.000-08:00

As we have discussed in past articles, those who own a home in Brampton or in other suburbs that surround the GTA, have the most financial options when it comes to refinancing their homes.

Real-estate in the suburbs is in high demand and more and more families are choosing to move out of Toronto. Toronto is also a financial metropolis so with many different types of financial institutions come more financial options.

The more money you have down, or the more equity you have in your home, the more likely you will be at being successful obtaining mortgage financing, even with a low credit score.

Historically a 680 or higher beacon score/credit score was deemed acceptable to a bank and while CMHC will ensure a high ratio mortgage for an individual with a credit score as low as 620, the bank may not. So what does this mean to you?

This means that if you had a 650 credit score and wanted to ask the bank to finance a mortgage with a 5% down payment and even though you may qualify for CMHC high ratio insurance, your bank could end up declining your mortgage financing. That does not mean you don’t have other options.

Many Trust Companies, Mortgage Investment Corporations and Credit Unions will offer financing to a consumer who qualifies for CMHC insurance and has a 650 beacon score. Most of these institutions lend their money through local Brampton mortgage brokers so it makes sense to have a good relationship with one.

Another challenge with the recent turbulent economy is that some banks now require borrowers to have a credit score that exceeds 700!

It is also important to keep on top of your credit if you want to have the most mortgage options. For more information about the minimum credit score needed to get approved for a mortgage in Brampton and around the GTA visit www.gtamortgagematters.com.

Which makes more sense: Canada Revenue Agency Interest Rates, Penalties and Prosecution OR Low rate home equity loan in Brampton? Here are our arguments.

2011-01-04T10:06:00.001-08:00

Our mortgage brokerage has serviced homeowners in Mississauga, Brampton and in the rest of the GTA for many years and have run into consumers who have all different types of financial difficulty.

One common financial problem we run into is individuals who have income tax debt with the Canada Revenue Agency. Generally those who have an income tax debt outstanding with the CRA fall into two categories:

1. They are not paying because they believe they don’t owe the money.

2. They think they do not have the resources to pay off the CRA.

In both cases, the best answer is to raise the money to pay off your tax debt. The primary reason we say this is because as long as you owe the CRA money they will continue to compound interest and penalties and will also pursue you for the money. This could include freezing your bank account, garnishing your wages or even placing a lien on your home.

Homeowners are in an especially precarious position because the very mention of a tax lien or tax problem could cause the bank to call in their mortgages.

So who will loan money to a homeowner with a tax problem? Homeowners in Brampton, Mississauga and other urban centres have more options than those in rural areas. Outside of major banks and financial institutions, there are many mortgage investment corporations and private lenders who approve a home equity loans to homeowners who have an income tax problem.

We reiterate that these companies and individuals are more likely to approve this type of financing when the property is located in an urban centre and is on city plumbing.

What's most important is that you do not wait. The longer you sit on your tax debt the greater the problem will become. It simply will not go away by itself. If you are a homeowner, contact a mortgage broker who is seasoned in dealing with individuals who have tax problems, this could save you big!

For more information visit www.gtamortgagematters.com.

Use Home Equity to Negotiate with the Canada Revenue Agency

2011-01-04T10:04:00.001-08:00

Canadian homeowners have more negotiating power than they think when it comes to the Canada Revenue Agency. That is until the CRA has located your property and placed a lien on it.

Using your home to negotiate with the Canada Revenue Agency all comes down to timing. If you have some equity in your home and owe the CRA money or are about to owe the CRA money, here are the best steps to take.

Many homeowners in this situation will go to their bank first to obtain the financing to pay off a tax debt. This could be fatal because the mere mention of a tax debt could cause your bank to rate you as high risk and could result in a loss of credit privileges. That is the last place you should go for help when in the midst of a credit problem.

Speak with a trusted mortgage broker and disclose all the facts. They will know which lenders will be likely to deal with you and they will know, given your circumstance, how much equity you can take out of your home. This is a crucial first step, because if you don’t have enough equity to pay the debt in full, you will have to make arrangements on the balance.

If there will be a balance, your next step will be to divide the balance by 24. Can you afford to pay this sum each month? If the answer to this question is yes, you are in a position to make a deal.

If the answer to this question is no, you may need the assistance of a debt counsellor or trustee to help you negotiate a settlement with respect to your tax debt. This would be a last resort because if it involves insolvency, this will mangle your credit.

If the answer was yes, it’s time to make a deal with the CRA to avoid enforcement action. So in our example we raise a lump sum payment on the tax debt using home equity and planned to propose a monthly repayment plan on the balance.

Whether you contact the CRA directly or hire an Advocate to contact the CRA on your behalf – Get the entire agreement in writing. A verbal agreement with the CRA is meaningless and I repeat, you must get the agreement in writing.

For more information about using home equity to negotiate with the Canada Revenue Agency visit www.gtamortgagematters.com.

Canadian Interest Rates Increase as Homeowners Struggle to Manage Debt Loads

2010-12-21T07:54:00.001-08:00

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.

How to Negotiate a Payment Plan with the Canada Revenue Agency (CRA)

2010-12-13T11:53:00.000-08:00

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.

How To Consolidate Debt In Brampton and Lower Monthly Payments Over The Holidays

2010-12-07T09:10:00.000-08:00

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.

Brampton Mortgage Approval Tips and Information

2010-11-30T11:33:00.000-08:00

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.

How To Find A Brampton Mortgage Broker

2010-11-23T09:16:00.000-08:00

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

How To Prepare To Apply For A Mortgage Loan In Mississauga

2010-11-15T11:29:00.000-08:00

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.

Mississauga Homeowners Refinance Mortgages To Consolidate Credit Card Debt and Save Money

2010-11-09T07:38:00.001-08:00

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.

Acquiring The Lowest Mortgage Interest Rates in Mississauga

2010-11-08T15:00:00.000-08:00

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.

How To Qualify For Toronto’s Best Mortgage Interest Rates

2010-11-02T09:21:00.000-07:00

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.

Home Equity Line of Credit Approvals, Even For the Credit Challenged?

2010-10-26T12:26:00.000-07:00

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.

How to Find a Mississauga Mortgage Broker

2010-10-19T07:29:00.001-07:00

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.

What is High Ratio Insurance, a Mississauga Homeowner Inquired.

2010-10-12T09:19:00.000-07:00

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.

Commercial Mortgage Rates In Toronto for your Business

2010-10-06T09:23:00.001-07:00

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.

Obtaining The Lowest Mortgage Rates in Toronto

2010-10-05T13:18:00.000-07:00

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/

How to Get Out of Debt in Mississauga

2010-10-05T11:22:00.001-07:00

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.

Fixed vs. Variable Rate Mortgage – What Is The Right Answer For You?

2010-09-21T17:17:00.000-07:00

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.

Best Mortgage For You!

2010-09-21T14:54:00.000-07:00

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

Softening Economy Should Slow the Rise of Bank Prime. August 6th, 2010

2010-09-16T07:41:00.000-07:00

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

Things You Should Know About Second Mortgages

2010-08-31T12:13:00.001-07:00

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

The place to go for cheap mortgage rates!

2010-08-31T11:42:00.000-07:00

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

Softening Economy Should Slow the Rise of Bank Prime. August 6th, 2010

2010-08-06T08:46:00.000-07:00

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

2010-08-03T10:06:00.001-07:00

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.....

Bank Of Canada Increases Overnight Lending Rate

2010-07-20T09:39:00.000-07:00

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

The US fear of a Double Dip recession and What this could mean for Toronto Mortgage Rates

2010-07-08T10:59:00.000-07:00

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.

Read More...

Why use a Mortgage Broker in Toronto

2010-07-05T15:11:00.000-07:00

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/

2010-06-16T07:42:00.000-07:00

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/

High Ratio Mortgage Financing with Toronto Mortgage Brokers

2010-06-15T13:10:00.000-07:00

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

A credit card company trying to save you money! Yeah right!

2010-05-20T09:46:00.000-07:00

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

Why Is It A Smart Idea To Refinance Your Debt?

2010-05-17T13:04:00.001-07:00

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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A Clear Picture Of What A Reverse Mortgage Is

2010-05-14T09:24:00.000-07:00

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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Variable Vs. Fixed - what everyone should know!

2010-05-13T09:07:00.000-07:00

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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2010/2011 Home Prices Forecast

2010-05-10T09:42:00.000-07:00

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/

Whatever Happened to all those subprime mortgages?

2010-04-13T13:17:00.000-07:00

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

Higher Interests Rates are in the cards for Canada but not as high as some are predicting!

2010-04-09T09:52:00.000-07:00

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.

How The Market Will Fix MLS Rules.

2010-04-06T06:48:00.000-07:00

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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Canada Leaves Interest Rates Unchanged March 2, 2010

2010-03-02T09:21:00.000-08:00

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

2010-02-23T07:44:00.000-08:00

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