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.
Showing posts with label One Mortgage Center. Show all posts
Showing posts with label One Mortgage Center. Show all posts
Tuesday, November 2, 2010
Tuesday, October 26, 2010
Home Equity Line of Credit Approvals, Even For the Credit Challenged?
Consumers who are looking to finance big ticket purchases, debt consolidations, finance home improvements etc… will often turn to their homes to find the money.
There are many reasons why and it makes good sense to do so. Home Equity loans offer low monthly payments, less interest in comparison to most credit cards and more flexibility.
Even consumers who have had bruised credit in the past can obtain Home Equity financing, but they will be required to have more equity in their home as opposed to those who have less equity in their home.
One of the most flexible Home Equity Loan products is a Home Equity Line of Credit. If you are approved for a Home Equity Line of Credit you will be issued a Visa or Master Card and credit limit. The beauty of a Home Equity Line of Credit is that you are given a limit which you can use to pay down the line of credit. If you use the line of credit and then pay it off, in the future if you require funds you won’t have to refinance again.
Home Equity lines of credit often have smaller monthly payments than conventional second mortgages and most will calculate your minimum monthly payment based on your balance (1%-2% of your monthly payment).
Home Equity lines of credit are cheaper and faster to arrange than conventional second mortgages. Most home equity line of credit lenders, use title insurance, rather than a lawyer on closing.
If you are considering refinancing your home to obtain capital, you most likely have many options. Take into consideration the amount of money you need, your financial goals, how soon can you realistically pay off the debt, your personal and financial circumstances and how much equity you have in your home when choosing the right credit product.
For more information visit http://www.gtamortgagematters.com.
There are many reasons why and it makes good sense to do so. Home Equity loans offer low monthly payments, less interest in comparison to most credit cards and more flexibility.
Even consumers who have had bruised credit in the past can obtain Home Equity financing, but they will be required to have more equity in their home as opposed to those who have less equity in their home.
One of the most flexible Home Equity Loan products is a Home Equity Line of Credit. If you are approved for a Home Equity Line of Credit you will be issued a Visa or Master Card and credit limit. The beauty of a Home Equity Line of Credit is that you are given a limit which you can use to pay down the line of credit. If you use the line of credit and then pay it off, in the future if you require funds you won’t have to refinance again.
Home Equity lines of credit often have smaller monthly payments than conventional second mortgages and most will calculate your minimum monthly payment based on your balance (1%-2% of your monthly payment).
Home Equity lines of credit are cheaper and faster to arrange than conventional second mortgages. Most home equity line of credit lenders, use title insurance, rather than a lawyer on closing.
If you are considering refinancing your home to obtain capital, you most likely have many options. Take into consideration the amount of money you need, your financial goals, how soon can you realistically pay off the debt, your personal and financial circumstances and how much equity you have in your home when choosing the right credit product.
For more information visit http://www.gtamortgagematters.com.
Tuesday, October 12, 2010
What is High Ratio Insurance, a Mississauga Homeowner Inquired.
We recently received an email from a first time homebuyer in Mississauga that wanted to know what high ratio insurance is. This is a question that comes up from time to time and many first time homebuyers don’t realize that you need high ratio insurance in order to finance a home purchase in Canada with less than 20% down payment.
To qualify for a mortgage with your bank you will first have to qualify for high ratio insurance with the Canadian Mortgage and Housing Corporation (CMHC)
When you want to buy a house, getting a mortgage loan through a local Mortgage Broker is the way that most people should choose. If you lived in Mississauga you should look for a mortgage broker in Mississauga.
High ratio insurance is required by Canadian financial institutions because it protects them in the event you default on your mortgage payments, if there is a deficiency in the sale of the property. This insurance is not like all other types of insurance due to the fact that a premium payment is paid once upfront and can be added to the mortgage.
High ratio insurance premiums can vary somewhere between 0.25% to 3.75%. The amount you pay will depend on the amount of the mortgage required and the amount of down payment you have.
One important thing to remember is that the larger down payment you can make the less you will pay in upfront insurance premiums. If you can make a 20% down payment then this will mean you will not require high ratio mortgage insurance.
Most of the times when you purchase a home the down payment that will be needed for you to get into your new home will depend on your credit. If you have really good rating then it is possible for you to purchase a home in Mississauga with only a 5% down payment; the weaker the credit the higher the down payment required which will shrink the risk that the mortgage insurer will have on your mortgage.
So always ensure that you pay your bills on time to be sure you have good credit or expect to pay the higher down payment and insurance costs every month.
One last thing that is essential to know is that this insurance can be paid upfront or added to the mortgage. If you choose to add it to the mortgage the actual cost of that insurance rises substantially as that amount is now amortized over 25 years plus and interest is paid on that amount.
For more information about high ratio insurance visit www.gtamortgagematters.com.
To qualify for a mortgage with your bank you will first have to qualify for high ratio insurance with the Canadian Mortgage and Housing Corporation (CMHC)
When you want to buy a house, getting a mortgage loan through a local Mortgage Broker is the way that most people should choose. If you lived in Mississauga you should look for a mortgage broker in Mississauga.
High ratio insurance is required by Canadian financial institutions because it protects them in the event you default on your mortgage payments, if there is a deficiency in the sale of the property. This insurance is not like all other types of insurance due to the fact that a premium payment is paid once upfront and can be added to the mortgage.
High ratio insurance premiums can vary somewhere between 0.25% to 3.75%. The amount you pay will depend on the amount of the mortgage required and the amount of down payment you have.
One important thing to remember is that the larger down payment you can make the less you will pay in upfront insurance premiums. If you can make a 20% down payment then this will mean you will not require high ratio mortgage insurance.
Most of the times when you purchase a home the down payment that will be needed for you to get into your new home will depend on your credit. If you have really good rating then it is possible for you to purchase a home in Mississauga with only a 5% down payment; the weaker the credit the higher the down payment required which will shrink the risk that the mortgage insurer will have on your mortgage.
So always ensure that you pay your bills on time to be sure you have good credit or expect to pay the higher down payment and insurance costs every month.
One last thing that is essential to know is that this insurance can be paid upfront or added to the mortgage. If you choose to add it to the mortgage the actual cost of that insurance rises substantially as that amount is now amortized over 25 years plus and interest is paid on that amount.
For more information about high ratio insurance visit www.gtamortgagematters.com.
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