Category Archives: General Interest

Having Trouble Repaying Your Mortgage?

Many Canadian home owners battle annually to keep up with mortgage repayments and are met with issues in paying back their mortgage loans. Just lately, the Canada Mortgage and Housing Corporation (CMHC) launched a campaign to help consumers understand the need to assist lenders to seek out solutions to their repayment challenges.

FamilyLending.ca is here to help you to understand this program as well as assist you to sort out your alternatives regarding mortgage loan pay back through contact with our skilled mortgage brokers and financing staff members. It’s important nonetheless, that you simply get hold of your mortgage lender at the initial sign of financial difficulty. According to Mark McInnis, CMHC Vice-President of Insurance Underwriting, Servicing and Policy, early assistance as well as support is extremely important to working through these financial difficulties. With early on assistance, co-operation in addition to a well implemented approach, it is possible to come together with your lender to locate a remedy.

The campaign from the CMHC provides struggling homeowners with more knowledge about mortgage counselling and govt partners who can assist them through their challenges to make mortgage repayments and also to restore financial security.

As well as CMHC, Genworth Financial Canada is additionally offering a Homeowner Support Program for all those coping with temporary financial difficulties, causing their mortgage loan to be at risk. When compared with the CMHC program, Genworth’s Home owner Assistance Program serves as additional insurance as well as support for anyone dealing with severe life situations.

If you’d like to discuss your home finance loan, stop by FamilyLending.ca for professional help and knowledge from experienced mortgage brokers along with financial experts.

Create Value In Your Home

With regards to return on your investment in a home renovation, people always want to know exactly what improvements will raise the value of their property by far the most. The easy answer is, revenue suite, however there are more tactics along with makeovers that have good dollar for dollar return also.

Thinking long-term as well as beating the market industry via well planned house makeovers can produce an increased return. You cannot assume all refurbishments however, will certainly produce precisely the same price. Listed below are the most notable five home refurbishments for return on your investment:

1. Developing accommodations suite
Thinking long-term as a home owner who will choose to improve the overall value of their residence, while probably living mortgage loan free, an income suite, or rental suite has the maximum return on your investment ( ROI ) of all refurbishments for home owners to think about. Actually, the Return on investment of creating accommodations suite can often be 150% to 250%.
2. Painting
Appears simple right? Affordable and easy to complete, painting typically offers a return on your investment of 100%. Choosing natural tones and being attentive to details tend to be key in this chance to further improve your home, and get your money back.
3. Kitchen and Bathroom Renovations
Despite the fact that these are bigger undertakings, bathrooms and kitchens have the possibility to deliver a return on investment between 75% and 100%. The more bathrooms you’ve got in the home the better, and a vibrant, spacious kitchen with a well planned design as well as newer home appliances can get you value for your money.
4. Updated Flooring
Similar to painting, new flooring surfaces will surely have an immediate visible impact and produce fresh life into a house. On average, brand new flooring surfaces can generate in between 70% to 90% return on your investment (ROI). Don’t think you’ll want to spend a fortune on this either. Laminate flooring is tough, simple to put in, and looks fantastic.
5. Doors as well as Lighting
New door hardware and light fixtures may immediately refresh and produce additional value to your home. Generally, custom light fixtures and door hardware bring a return on investment of 60% to 75%. In most cases, these types of improvements should be concentrated in kitchens and eating areas where you have a chance to invigorate an area that will create immediate atmosphere.

Investing in the suitable home makeovers will help lower your monthly payment and enhance the valuation of your property. Get in touch with the investment specialists at FamilyLending.ca today to learn how to take advantage of the value of your property.

Things to Consider Before Buying a House

Buying a home is a big investment – both financially and emotionally. Make sure you’re properly prepared by considering the following things prior to submitting a purchase offer.

Your Credit Rating
If you aren’t aware of your credit rating, now is the perfect time to do a little investigating. Making sure your finances are in order is probably the most important step you’ll need to take prior to purchasing a home. Your credit report will play an important role in the mortgage approval process, plus it will also help determine many of your mortgage terms, including the all important interest rate.

Mortgage Types
There are numerous laws and options associated with mortgages. While you don’t need to know all the ins and outs of the mortgage process (there are lawyers for that!) it is important that you understand the different options available to you. From fixed rates to variable arrangements, there are lots of things to consider when deciding on a lender. A professional mortgage broker can help you narrow down your options, but ultimately it’s up to you to determine which lender is best for your needs.

Mortgage Pre-Approval

Being pre-approved for a mortgage can be a huge advantage to any home buyer. Not only does a mortgage pre-approval allow you to better understand and set your budget, it also gives you an advantage when putting in an offer on a property. Sellers have a tendency to favour offers accompanied by proof that a buyer has a mortgage pre-approval from their bank or lender. This shows there is one less obstacle in the transaction process, and could give you the edge to successfully purchasing the home or property you want.

Needs, Wants, and Real Estate Agents

Before you even start looking for homes, sit down and create a well-defined list of needs and wants. Clearly knowing what you need in a home, what you want, and what you get within your budget, will help you and your realtor find an ideal property. Speaking of realtors; before hiring a real estate agent, take the time to understand the particular duties, loyalties, and roles a real estate agent should, and will play in the home buying process

How to Find Your Home

Today, the most obvious tool available in the home search adventure is the internet. There are dozens of quality home search websites in North America that will put photos, amenities, and prices at your fingertips. Just because the Internet is convenient, doesn’t mean you should neglect “old fashioned” methods like driving to visit neighbourhoods, flipping through newspaper ads and classifieds, or grabbing a local real estate magazine.

Time to Make an Offer

One of the most stressful moments for any home buyer is putting in an offer. You’ve got a mortgage pre-approval, you’ve found a home you love; now it’s time to put your money on the table, and sign the papers. As a standard feature to any offer, it’s important to include a home inspection. This protects you against any hidden issues with the structure and construction of a home. Similarly, when it comes to navigating what can often be a long and confusing contract, be sure to have the paperwork checked over by your real estate agent and a lawyer.

Buying a home can be a long and stress-filled event, but if you follow these tips, and do your research before buying a home, you’ll be well prepared, and find a property that meets your unique needs and wants.

Call the Knowledgeable Staff at FamilyLending.ca today to learn more 866-941-6678

Chantielle Kennedy writer for FamilyLending.ca

The Costs of Closing on a Home

Did you know that in addition to the downpayment and mortgage, you’re also responsible for any miscellaneous closing costs associated with your home purchase? These fees can vary in price, but all must be paid prior to taking possession of your home. If you’re currently in the market for a new home, now’s the time to consider these hidden costs so that you can incorporate any additional expenses into your budget.

Eight Closing Costs to Keep an Eye On

1) Appraisal Fee
Your mortgage lender or mortgage default insurer may require you to provide a property appraisal prior to lending you mortgage monies. This appraisal will determine whether the selling price of your new home is reasonable based on current market conditions. Home appraisals can cost anywhere from $300 to $500, depending on where in Canada you’re purchasing the property.

2) Sales Tax
If you’re planning to purchase a newly constructed home, or a home that has been substantially renovated, make sure you remember to factor in the HST or GST on top of the list price. Resale homes are not taxable. Luckily, most provinces have HST/GST rebates in place to help first-time home buyers recover some of these costs.

3) Home Inspection Fee
If you’re making an offer on a home, make sure that it’s conditional on the findings of a professional home inspector. Hiring an inspector is voluntary, but highly recommended. An inspection will help uncover any unexpected (and costly!) issues with your potential new home. Home inspections costs between $300 and $500.

4) Property Insurance
Property and content insurance protects your home and possessions against fire, theft, and weather-related damage. Insurance payments, like your mortgage payments, are ongoing so it’s crucial that you keep this cost in mind when building your budget.

5) Land Transfer Tax
The land transfer tax is based on the amount of money you paid for the land. What’s more, municipalities impose a yearly tax on land within their municipal boundaries.

6) Legal Costs
There are a number of legalities that you’ll need to cover when closing on your home. This could include notary services for conducting a title search, registration fees, and the preparation of your mortgage. These fees are normally well over $500, depending on the lawyer you hire.

7) Mortgage Life Insurance
This special type of insurance is separate from your property insurance and your mortgage payments. It is put in place to cover the cost of your mortgage in the event of death or severe illness.

8) Mortgage Default Insurance
If you’ve qualified for a high-ratio mortgage, (this is normally the case for home buyers with less than a 20% downpayment), chances are good that you’ll require mortgage default insurance from your lender. The cost is usually added onto your monthly mortgage payment and rates range from 1% to 3.25%.

Start building your home buying budget today. Consult with a FamilyLending.ca mortgage broker to learn more about these and other unexpected closing costs.

Chantielle Kennedy writer for Familylending.ca

How to Build a Better Budget

There are many challenges when it comes to creating a solid financial plan. Whether you’re saving to buy your first home or hoping to invest in some property updates, now’s the time to focus on balancing your budget. The sooner you develop a realistic budget, the easier it will be to stick to, and the sooner you’ll be able to realize your financial goals.

Are Your Ready for An Emergency?

When building your budget, it’s absolutely crucial that you set aside an emergency fund of money. Ideally, everyone should have at least one or two months’ wages set aside in a money market account in case of an unexpected surprise. If you don’t have enough money to set aside right now, that’s ok. Set a six month savings schedule that allows you to set a little bit aside every month in order to meet your emergency fund goal. The key is to build your emergency fund quickly, without straining your every day budget. The mortgage brokers at FamilyLending.ca recommend devoting a certain percentage of each pay cheque to your emergency fund until you’re comfortable with the amount you’ve saved.

What is an Emergency Fund For?

You should only withdraw money from your emergency fund when faced with an unexpected expense. (And no, a sale at your favourite store doesn’t count!). Things like major car repairs or an unexpected furnace malfunction are good examples of emergency expenses. If ever you’re forced to dip into your fund, make sure you remember to reinvest the following month so that you’re always prepared for the unexpected.

Should You Make More Or Spend Less?

Now that you have a buffer in place to help you deal with life’s unexpected emergencies, it’s time to focus on your daily spending. This can be tackled in one of two ways. Either you can make more money in order to cover your expenses, or you can decrease your spending. The mortgage brokers at FamilyLending.ca recommend focusing your efforts on downsizing first as this is the easiest option. Before you start eliminating little luxuries, try thinking of more affordable substitutions. For example, if you buy your lunch at a trendy bistro every afternoon, you could just as easily make yourself a delicious sandwich to take with you to work. These small changes will help you cut your expenses quickly and help you save more money over the long term.

Think About What You’re Gaining

Budgeting shouldn’t be just about sacrifice. It should also be about rewards. If you’re having trouble sticking to your investment and saving strategy, the mortgage brokers at FamilyLending.ca recommend setting a mixture of long- and short-term goals in order to increase you motivation. Saving for a downpayment on a home is a great long-term goal, whereas paying off your credit card could be a great short-term focus. It’s much easier to save for something when you know what it is, so try and decide on a number of important milestone purchases when working on your budget plan.

Increase Your Income Potential
Simply increasing your income isn’t enough to help you get out of debt or save for the future. You need to have a budget in place in order to handle the extra cash properly. Once you have a well-thought-out budget in place, you can start making changes that will enable you to make more income and improve your investments.

Build yourself a better budget, one dollar at a time. For more help with financial planning and investment advice, contact the mortgage brokers at FamilyLending.ca.

Also please contact one of Financial Advisors at FamilyLendingFinancial.ca