Tag Archives: checklist

A Few Things to Ask Your Mortgage Broker

There are no silly questions.

Ask Your Mortgage Broker

Listed below are a variety of questions to think about when speaking to your mortgage broker:

How long have you been working in the mortgage industry?

Years of experience is essential when it pertains to taking care of challenging mortgages.

What type of education or licensing do you have?

You need to confirm that your mortgage broker is licensed by consulting the Canadian Association of Accredited Mortgage Professionals.

On what do you base your suggestions?

You should make sure that they are providing recommendations for the right reasons. A mortgage broker works for you, and nobody else.

Are there any special conditions that apply to this deal?

Bear in mind any undisclosed costs or unfavorable conditions attached to a no-frills low mortgage rate.

What fees/costs are connected with the rate you have estimated me?

Do not let concealed costs creep up on you. Regularly ask your mortgage broker to break out any charges and fees so you are appropriately notified.

Can I please see the lender’s letter of commitment?

If you are assured a certain rate, be sure to request a letter from the lender verifying that the reviewed rate is undoubtedly locked in.

What is your area of expertise?

Brokers typically facilitate more loans of one form than another. If you are} purchasing a home, make certain you are dealing with a residential expert.

Are you affiliated with any mortgage associations?

Membership to some mortgage associations can possibly be a sign of the broker’s oath to provide} the best Canadian mortgage rate available.

Can you provide me with references?

Ask for names of current clients or real estate agents with whom they have actually worked.

A combination of extensive research and appropriate inquiry should certainly assist you to narrow down your pool of prospective mortgage brokers for the best mortgage rate.

Additional Costs of Buying a Home

Plan for these unanticipated costs when creating your budget.

Understanding Mortgage Costs

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.

Bidding War: How To Survive

Do you have what it takes to win a bidding war?

Do’s & Don’ts

Bidding wars occur when multiple offers are placed on a house. The seller can take any offer, depending on the best conditions proposed.

Do’s and Don’ts.

Be careful not to allow multiple bids steer you into a spiral of “ignorant bidding”. Do your financial homework and know your limits.

How to Determine if Your Bid Fits Your Budget

For argument’s sake, let’s imagine that you have a budget of $400,000.

Step One: Determine Your Monthly Payment

Let’s say the best five year variable closed low mortgage rate, amortized over 25 years is only 2.15 %, making your monthly low mortgage rate payments $1722.98. You may have the opportunity to place a bid as high as $465,000, calculating your monthly payments to be $2002.87.

Step Two: Determine Your Cost in the Long Run.

Using our Mortgage Calculator, you determine that with a $465,000 mortgage, at 2.15 %, you will be paying a total of $600,860.46 over your 25-year amortization period. However, with a $400,000 mortgage, you will be paying a total of $516,869.11 in interest payments. Use our mortgage calculator to calculate your payment schedule.

Step Three: Determine What You Can Afford.

Take a look at the possible shifts in interest rates.

For instance, if you decide to put an offer for $400,000 at 2.15 %, the rate could fluctuate. Those rates could raise to 3.75 %, calculating your monthly Canadian mortgage rate payments at $1987.84. With a $465,000 mortgage, you’re payments would increase to $2,310.87 per month. Planning for the future is a fundamental part of your mortgage strategy. Just because you can afford to place a high bid today (based on current interest rates) doesn’t mean that it is sustainable option for the long term.

Be sure you have a clear understanding of the maximum best mortgage rate you can afford BEFORE you start bidding. Remember to take both your current and future finances into consideration.

For Sale By Owner – How Does This Change The Home Buying Process?

The DIY guide for selling and buying a for sale by owner property

When it comes to selling your home, a growing number of people are opting for the do it yourself approach.

The private sale of homes is becoming relatively common thanks to advances in Internet technology and an increase in For Sale By Owner (FSBO) companies.

If you are successful in making the sale, you could save yourself a real estate commissions of 3-5 percent.

How For Sale By Owner Works

Generally, private sellers will make use of one of the various For Sale By Owner network websites. These companies will provide different service plans to assist you in selling your home. Standard plans consist of exposure through their website, lawn signs, and a personalized consultation with sales representation. The premium plans provide additional advertising support (i.e. in local papers, or real estate magazines), and they perform a competitive market analysis.

According to research studies, 45 % of Canadians would consider bypassing real estate agents to sell privately with the guidance of a real estate lawyer. A good lawyer can make all the difference for a private seller.

This system also weighs heavily on the communication between the seller and their lawyer. A lawyer is best equipped to manage situations of legal concerns.

Considering Selling Your Home Privately?

When it comes to deciding whether to try and sell your home without the services of a real estate professional, consider the following:

The Pros

Pros and Cons

You could possibly save thousands of dollars in commission fees.
You’ll be able to maintain control over all aspects of the sale.
You’ll have the flexibility to show the house at your own convenience.
You have the opportunity to highlight, from your experience, everything your home has to offer to prospective best mortgage rate home buyers.
More buyers are internet savvy and are familiar with private sales sites, as well as online auctions and complimentary classified websites.
If you pass some of the savings onto the buyer you open up your reach to buyers at lower price points.

The Cons

Prospective buyers might not find your home.
Real estate agents understand the market and what price points will sell.
Upfront advertising costs, without any guarantee of visibility.
Potential low mortgage rate buyers have to call you.
No one to prepare agreements or advise you on negotiating.
You might have to negotiate a commission for the real estate agent of a potential buyer.

The Safety of an Agent
For many, a real estate agent is the most comfortable choice when making such a substantial transaction. They can guide you through the process and negotiate the sale on your behalf.

Essentially, only you can make the decision if the service of an agent is worth the fee.

How to Know When You’re Ready to Purchase a Home

Think you are ready to be a homeowner? Here’s exactly how you can tell!

1) You have a budget

First Time Home Owner

Factor in homeowner’s insurance coverage, property tax, fees, upkeep costs, and the best available home mortgage rate.

2) You have a sizeable down payment.

Generally, you’ll need a down payment worth 20 % of the house price.

3) You have a reliable source of income.

Getting a home is a long-term financial dedication, so you’ll require a steady income to cover those month-to-month mortgage payments.

4) You have an emergency savings fund.

If you have enough money to cover three to six months of your living expenses, you’re one step closer to being prepared.

5) You have your financial obligations under control.

Lenders like to ensure you’ll have more than enough money each month to pay your living expenses. Before they’ll give you a low mortgage rate, they take a look at your debt-to-income ratio.

6) Your credit report is in good condition.

You don’t have to have best credit to become a homeowner; however a good history can help you lower the interest payments on your Canadian mortgage rate.

7) You can make a long-term commitment.

Are you prepared to stay put for a minimum of three to five years? Normally, that’s how long you’ll have to keep the house in order to recoup your trading expenses.

8) You are prepared to become your own property owner.

Don’t buy simply because you can. You have to ensure you’re ready.

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