Author Archives: familylending

Bank Or Broker?

Who should you consult for your mortgage pre-approval?

Handle your mortgage like every other major purchase– that is, be sure you make the effort to compare rates and shop around. Not every Canadian mortgage rate is the same.

Bank Rates

When you visit a bank, it’s worth bearing in mind that their loan officers are paid to sell you their products. They will do whatever is required of them to keep you from considering other options.

Mortgage Broker

A mortgage broker is a self-employed agent who works only for you. They are qualified professionals that will help you find the most effective mortgage rate for your unique situation. They compare products from a variety of banks and specialty lenders, and arrange the best low mortgage rate for your needs. The broker works for you, the customer, and most importantly, they are completely free. The lenders pay brokers once they close the mortgage deal.

More Reasons Why Mortgage Brokers Are a Great Choice

  • Protect Your Credit Score
    • Brokers help to protect your credit rating by only pulling one credit report and using it for all lenders.
  • Give You Expert Information
  • Save You Money
    • A good mortgage broker can offer tips on how to save money on interest while managing to keep your low mortgage rate payments reasonably priced.

Bank vs. Broker

Which ones suits your needs better– bank or broker?

Types of Mortgages

There are a variety of mortgage products available on the market. Typically, mortgages fall under one of the following three categories, open, closed or convertible. A mortgage broker will help you understand the various options.

Make your mortgage hunt less troublesome– contact a mortgage broker today.

Additional Costs of Buying a Home

Plan for these unanticipated costs when creating your budget.

A number of first time homebuyers are often shocked when they see the total cost of their home purchase, including the additional expenses, on closing day. Here’s a list of a few of the “hidden” expenditures you should expect to pay.

Land Survey

Despite the fact that most lenders may agree to the existing property survey, depending on when it was last conducted, it might be necessary to have another survey completed.

Home Inspection

The majority of lenders will request a home inspection, but even if they don’t, it’s worth the peace of mind to obtain another one.

Insurance

If you are applying for a high-ratio Canadian mortgage rate (with a down payment of less than 20 % of the purchase price), your lender will require you to purchase mortgage default insurance. While mortgage default insurance provides protection for the lender, you may wish to consider the mortgage rate life insurance for your own protection.

Legal Fees

Your lawyer will do a title search, register and prepare your low mortgage rate, and prepare the title deed.

Land Transfer

Land transfer tax must be paid by everyone who purchases property in Canada.

HST (harmonized sales tax)

HST was put into effect in July of 2010 in Ontario and British Columbia, HST (Harmonized Sales Tax) is applied to the purchase price of all new homes.

Appraisal

Your lender will only lend you a percentage of either the appraised market value of your home, or the home’s purchase price– often, the lesser of the two.

Unsure of how these additional costs will impact your home purchase? A mortgage broker can help. Contact a FamilyLending.ca mortgage specialist today.

How to Compare Mortgage Rates

Find the best mortgage rate today!

Did you know, homebuyers who hunt for a mortgage rate are most likely to secure a competitive financing option than those who don’t? Studies have shown that consumers who compare mortgage rates and ask questions during the pre-approval process are most likely to save more money.

How Can I Find a Great Mortgage Rate?

As mentioned by the Bank of Canada Discounting in Mortgage Markets study, homebuyers can increase their chances of securing a low mortgage rate:.

  • By collaborating with a qualified mortgage broker.
  • Asking lenders about preferential rates based upon loyalty, age, and finances.
  • People who purchase a house in a nearby city are often offered better deals.

 

Be Cautious of Bank Postings.

When it pertains to finding the best mortgage rate, do not automatically assume that the bank’s rate is the best option. As mentioned by the Discounting in Mortgage Markets study, posted bank rates tend to be the same. It is the negotiating that occurs behind the scenes that often allows mortgage brokers to offer their clients lower rates.

Comparing rates online and exploring the market gives you the power you will need to make an informed decision. Get in touch with a mortgage broker today to begin your rate comparison and enhance your chances of finding a reasonably-priced mortgage product.

8 Things to Be Aware of When Buying a Second Home

You can afford a second home, let us show you how!

Now that low interest Canadian mortgage rates are readily available, it seems like the perfect time to invest in a second home. Here’s what you should know before purchasing a second property.

Things to Learn Before Buying a Second Home

1) Do your research.

You will need to resist the urge to buy a home because you want a getaway. Research the properties, area, and low mortgage rate options beforehand. This is an investment, not just a vacation.

Continue reading →

Do You Know What a Property Disclosure Statement Is?

It’s standard practice for home sellers to freshen up their property prior to listing it on the market. A fresh coat of paint, new floors, or new light fixtures increase the value and marketability of a home. But sometimes these seemingly honest updates are done with the intentions of covering something up.

That’s why it’s crucial for homebuyers to always request a property disclosure statement. Seller’s are obligated to disclose any known defects to a potential buyer by way of this two page document. From zoning and water rights to plumbing, roofing, and structural damage, a property disclosure statement is designed to protect the buyer against a future of regret. Continue reading →