Tag Archives: Tips

A Few Things to Ask Your Mortgage Broker

There are no silly questions.

Ask Your Mortgage Broker

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

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.

Bank Or Broker?

Who should you consult for your mortgage pre-approval?

Bank or Broker?

Bank or Broker?

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 different kinds 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.

Bidding War: How To Survive

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

Do's & Don'ts

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.

Bridge Financing

Bridge the gap between one mortgage and the next.

Bridge Financing

Bridge Financing

What happens if you find your perfect home the day after you put your current home on the market? Like many people, you probably get excited. Don’t worry! There is an answer– bridge financing.

What is Bridge Financing?
Bridge financing is short term financing that’s based on the equity you have in the home you are selling. The current home is used as collateral and the bridge loan is used to pay closing on the new home prior to selling the current home.

  • Bridge Financing: a short-term, high interest loan that “bridges” the gap between the purchase of a new home and the sale of a current or existing home, allowing a seller to purchase a new property before selling an existing property.

Equity is calculated by taking the sale price and subtracting the debts you currently owe on the home– the Canadian mortgage rate, secured line of credit (including prepayment penalties), real estate commissions, and legal fees. The net total is the basis for your bridge loan.

In 2010, homeowners borrowed $26 billion in additional equity from their homes. 15 percent of homeowners withdrew equity, averaging $30,000. (Source: CAAMP).

Generally, the interest on the best mortgage rate for this style of loan is considerably higher (1 to 3 percent above prime), and at times there is an administration fee tacked on. Be sure to ask your lender, and they might waive the fee for you.

Some bridge loans are structured to pay off the entire existing low mortgage rate at the bridge loan’s closing, while other variations of the loan add the new debt to the old debt. Bridge loans typically include six month terms.