Buying a home with challenging credit

Aside

Fear Of Debt ChallengeBuying a home with challenging credit, may lead to stress, then stress may lead to uncertainty which may lead to fear.

A person or cou[le buying a home with challenging credit should not have to face uncertainty nor fear, however, this may be a traditional mistake and very understandable by those living in the situation at the time, buying a home is not like buying a pair of shoes, after all; The financial commitment is a lot greater and is also risky.

Let’s think for a moment that this is the thought of a couple recently married couple that is currently renting an apartment, both working regular jobs, paying their monthly bills, saving what they can, but have had some challenging times and the credit is not so well, now, imagine that they start thinking about buying a condo or a townhome just to stop paying rent that ends in NO home-ownership, then to think about a mortgage, a property tax bill, property insurance etc. Adding to that knowing that the credit is not so well at the moment, the reason for feeling overwhelming is available right there and easy to grab as a valid excuse to give p on a dream, maybe without realizing that continue renting is just building someone else’s dream.The idea that maybe later the time will get better also comes available as the plan that brings comfort to the mind.

I wish that this message could reach to all those in this situation: Buying a home with challenging credit should not be stressful neither it should be postdated, they don’t have to do it alone, they do need to call and get all done for them and actually they don’t even have to know exactly what to do next after placing the call, everything will actually get done for them and the best of all, it is all free.

We are proud to work together with some lenders that understand this specific scenario and are willing to share the risk that this type of business represents by helping applicants get to the moment of being homeowners

If you are reading this and you are in this or similar situation, just call 416-262-7139 now and let’s get it done, continue building up your homeownership dream, and let the regrets rest only on NOT calling.

If you are NOT in this or a similar situation but know of someone who is or are, click here, this content on this page might interest you and you’ll be helping them.

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New rules affecting low ratio mortgages

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New rules low ratio mortgageNew rules affecting low ratio mortgages

The new rules affecting low ratio mortgages or mortgages backed by portfolio insurance are effective from November 30th, 2016.

The following are new mortgage rules for low ratio mortgages, (Over 20% down payment = low ratio mortgage)

The new refinancing rules have been postponed to start taking effect on May 1, 2017,

New eligibility requirements for low-ratio mortgages to be insured will include:

  • A loan whose purpose includes the purchase of a property or subsequent
    renewal of such a loan;
  • A maximum amortization length of 25 years;
  • A maximum property purchase price below $1,000,000 at the time the loan
    is approved;
  • For variable-rate loans that allow fluctuations in the amortization period,
    loan payments that are recalculated at least once every five years to
    conform to the original amortization schedule;
  • A minimum credit score of 600 at the time the loan is approved;
  • A maximum Gross Debt Service ratio of 39% and a maximum Total
    Debt Service ratio of 44% at the time the loan is approved,
    calculated by applying the greater of the mortgage contract rate or the Bank
    of Canada conventional five-year fixed posted rate; and,
  •  A property that will be owner-occupied.

A benchmark test rate will be applied to qualify.

Scenario:

A $500,000.00 mortgage at an annual benchmark rate of 4.64% (This is a test rate) on a 25 years amortization will require a monthly payment of $2,806.41

A $500,000.00 mortgage at an annual contracted rate of 2.39% on a 25 years amortization will require a monthly payment of $2,212.53. (This would be the real payments)

What should you do at this moment?

There is no one single financial move as each borrower has different needs and different circumstances,  however with you should apply on line now or call or text 416-262-7139and request a confidential one on one meeting to look at specific answers and help you get the best mortgage deal. Delays to take action may cost you! Don’t delay!

Call or text 416-262-7139
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No fee refinance promotion

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Street Capital No Fee RefinanceIf you are looking to refinance your current mortgage this limited time promotion might help you save even further.

To optimize your savings, lower your borrowing cost, better your cash flow and most of all meet the financial goals you have set for the short and medium future, consider this not so common promotion that we have just received. It may come in the nick of time for you.

In this limited time promotion, the lender street capital takes care of the legal fees on your behalf when you choose a 5 years term refinancing mortgage, whether you choose a fixed or a variable rate.

The minimum loan amount, for this limited time promotion, is $250,000 and borrowers can refinance their mortgage at the competitive street capital mortgage rate.

Important benefits that you as a borrower need to consider if you are planning to refinance your current mortgage are:

  • Single point of contact at FCT (Who will service the legal process of your mortgage)
  • Expedited funding process
  • In-home signing appointment/notary office in BC

What this promotion includes is:

  • All discharges
  • All cancellations
  • Funding
  • One signing appointment
  • Payout of all secured and unsecured debts (Refinance)
  • Payout of current mortgage (Straight Insured Refinance)
  • Any applicable taxes
  • A title insurance policy in favour of the lender

FCT stands for “First Canadian Title”

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Home Trust Secured Visa

Home Trust secured Visa signature

Home Trust Secured Visa, improve, build, rebuild, improve your credit, get all details and apply online.

Learn how it works, apply online now, get your visa in the mail soon.

Helps you improve and control your credit

This Visa reports monthly to both Equifax and Trans-Union.

To assure accurate and timely processing of this application, please review the following:

Security Deposit: The preferred method is to send a personal cheque drawn from your Canadian Bank account; third-party cheques are not acceptable. The minimum deposit amount is $500.00 and the maximum is $10,000. Please make the cheque payable to Home Trust Company.

When providing a personal cheque as a security deposit, if you know that your credit bureau is less than 6 months old, the maximum deposit amount we can accept is $1,500.00. Additionally, please also include a copy of a utility bill (which shows your name/address) or 2 pieces of photo ID (Government issued).

We can also accept a Canadian bank draft or money order. However, with this payment method, you must also include a copy of a recent Bank statement (showing your name, the name of your Financial institution, type of account (i.e., savings, chequing) and your partial account number).

Consumer Proposal: This product is available to clients in a Consumer Proposal; letter of good standing is not required.

Bankruptcy: This product is NOT available to those who are currently bankrupt, however, applicants who have been discharged from bankruptcy can apply at any time, but must include their “Certificate of Discharge” with their completed application.

Secured Visa applications along with their respective deposits/additional documents can be mailed to 145 King Street W, Suite 2300, ATTN Visa Department, Toronto, ON M5H 1J8.

Get control on your own credit, select the Home Trust Secured Visa of your choice:

No Fee Secured Visa CardLower Interests Secured Visa Card
No Fee Home Trust Secure VisaLower Interest Home Trust Secured Visa

Mortgage Insurance

Mortgage Protection Plan

August 31, 2012

If you only have a CHMC Mortgage loan insurance; that protects the lender against default you should consider a Mortgage protection plan to protect your self and your family against default. If banks insured their mortgages to protect themselves, why wouldn’t you protect yourself?

Here are some situations during the term of the mortgage when the mortgage insurance is even more recommendable:

  • Borrower with a tight budget with a steady source if income.

  • Income source does not feel very steady

  • Economic situation in the market unsteady at a point that it could affect the income source

  • Unstable health among the borrowers

  • A death among the borrower that may leave little on their life insurance and then the beneficiary has to use it for funeral expenses and then to repay the mortgage, leaving the beneficiary with struggle, rather than peace

Now, Why do people consider the mortgage insurance NOT necessary?

  • Some real estate agents consider a mortgage insurance not necessary and suggest to their clients not to purchase a mortgage insurance, just to find a few years down the road that their clients are losing their homes because a default in their payments, this type of Real Estate agent does it just with the intention of profiling themselves as money savings agents for their client.

  • Some borrowers consider the Insurance a extra expense that will not be used

  • Some may be just missed informed as what it really is.

The fact is that the mortgage insurance offers a protection like any other insurance, just that is cheaper than term life insurance and gives the protection to the borrower as is needed. The payments of the mortgage insurance is normally amortized as the term of the mortgage, so on a 10 years mortgage, the payments are really close to nothing

Do you consider the mortgage insurance necessary or not? let us know your opinion,

Personal and confidential informational meetings are available, request yours now!

Your comments are appreciated!