Higher home prices & higher interest rates

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Higher Home PricesHigher home prices & higher interest rates

What people looking to be homebuyers can expect from the current home market headlines in the mass media?

Now that higher home prices & higher interest rates (slightly) than last year’s are becoming rout news, and while the Bank of Canada has kept interest rates with no changes (for now), some people who are currently looking to become home buyers may feel some level of distress even to look deeper into their real financial situation and learning about their possibilities to be approved for the much-needed financing to purchase their home and finally stop renting.

To understand that distress, one needs to consider that salaries and general income have not increased in the same proportion as the home prices in the Greater Toronto area, yet understanding may not be enough to help people become homebuyers, more needs to be done.

Higher Interest RatesAs the mortgage interest rates are also climbing, when being factored, this is perhaps the one factor that should worry the least for now since even after their increase, they still remain very low.

The distress turns from mild to moderate or perhaps severe when is known that renting a home is not cheaper and that available inventory is not even there to satisfy all the needs at a convenient rate for a hard worker two income family who sees that years pass by along with their dream of homeownership

What can certainly help people in this huge financial distress is knowledge,

Media coverage of home prices and affordability are meant to be headlines and run on average tilting at times to stress on the highest levels of the home sales transactions, a sense of impressionism has to be included in that coverage to satisfy ratings that certainly lead to help advertising sales.

Not every family’s financial situation is the same, in fact, every family’s financial situation is unique, is different; Knowing exactly what is or not affordable, what is or not approvable, what is or not convenient, is what matters and what can remove this kind of distress in this kind of situation.

SolutionThe knowledge of the real possibilities to become a homebuyer can be obtained through the practice of a mortgage assessment which is offered free of charge with the intention of building a customer-service relationship.

A decision of whether to continue renting or to buy a home should not be taken lightly and certainly not without fundament nor fear.

Exploring the possibilities regardless of credit should not be considered a waste of time.  The importance of mortgage assessments in the process of home purchase and financial peace of mind, but they are distributors or content, so here is their content

Will opportunities to become a homeowner be better or worse in a few years from now?

The importance of mortgage assessments in the process of home purchase and financial peace of mind is huge, and more people should know it. share it if you will.

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Buying a home with challenging credit

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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!

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New rules affecting high ratio mortgages

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New mortgage rules high ratioNew rules affecting high ratio mortgages

The new rules affecting high ratio mortgages are effective from October 17th, 2016.

The following are new mortgage rules for high ratio mortgages, (under 20% down payment = high ratio mortgage).

From October 17th, 2016 onwards all borrowers (including those seeking a mortgage with a 5 year or longer fixed rate, insured mortgage with a variable rate, fixed under 5 years term) will need to qualify at the benchmark rate set by the Bank of Canada (currently at 4.64%) even if the mortgage loan will carry a lower mortgage rate. The monthly payments will consider the agreed rate (not the 4.64% benchmark rate)

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)

Simply put: Well qualifying borrowers that before the new rules were able to qualify for a certain amount mortgage, will qualify for a lesser amount mortgage after October 17th, 2016 when the new rules take effect.

The periodic payments maybe the same amount as they are factoring the loan amount, the contracted mortgage rate and the amortization period, once the mortgage is approved.

What can you as a borrower interested in a mortgage do now?

  • Increase considerably your down-payment.
  • Increase your qualifying income.
  • Look for an alternative property.
  • Try to keep your debt low and your credit high.

As of October 17, 2016, all insured mortgages regardless of the term must be qualified at the Bank of Canada Benchmark rule (currently at 4.64%)

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, 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!

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

Do you have questions or need assistance with your mortgage?

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A Co-signer story

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A co-signer story Considering co-signers to help your mortgage may be a very smart thing to do in regards to money-saving, however, this advantage may come with some potential risks that may end up consuming some of those savings or even worse, potential legal conflicts.

A good family that I know wanted to buy a house to stop renting, they had been renting for a long while and they wanted to start owning, however, their income was insufficient to prove affordability to a lender that they would be able to repay the requested mortgage. They have saved for their down payment, their credit was ok, It was only the insufficient income.

They approached a good friend in whom they trusted enough to ask to help them being a co-signer so that they could qualify to purchase the home for their family. He would need to commit to their mortgage obligations and responsibilities, except that he wouldn’t be paying the monthly mortgage payments unless the couple couldn’t make them.

The family was able to qualify and purchase their home, they were able to make the payments and live a better life, build some wealth and save more money than when renting. The co-signer was offered a very small percentage of the value of the property for the diligence of being included in the property title.

Suddenly, the good friend that was the father to a teenager passed away, this brought some complications and extra legal work and expenses to the family a couple of years after as they were planning to refinance their mortgage, and they needed to remove the co-signer from the title.

This is an example why it is wise to accept the mortgage protection plan offered with your mortgage.

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Small rental mortgage program tips

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SmallRentalProgramTipsThe following may help you get a more realistic expectation on a rental mortgage program and how you can speed up the process and benefit sooner from the investment of that second home (not owner occupied) or third or even fourth home.

Purchasing a second home is not the same as buying your first home, yet, the investment on real estate may be worth the difference.

The rental mortgage program’s terms may vary among lenders, so it is advisable that you check with your mortgage agent the details of your mortgage.

One of the variants between your first mortgage on your owner-occupied property and your non-owner-occupied property might be the lower loan-to-value offered on the first mortgage of your non-owner-occupied property.

Another variant could be the higher net worth of the borrower needed on the rental mortgage program.

The percentage amount of the rental income that can be added to the borrower’s income might also a variant in the mortgage process.

Consulting your mortgage agent saves you time speeding up the mortgage approval process so that you can enjoy the benefits of your investment

Credit, income and down payment affect rates and affordability in any qualification process.

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Interest rates down

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Interest rates down

We have been informed of interest rates gone down and you should be informed as of which mortgage products are offering them.

Second Mortgage interest rate Gone DownEmployed people currently renting and with a rental contract coming up to renewal should be most interested.

Sometimes life gets tough to some, and considering that there are ways and times that factor each of the opportunities, there is a way to recuperate the control of your financial status and pass that bridge to a better situation. You don’t have to do it alone, nor to know it all, what you need is the will and that chance.

Not all mortgage rates have gone down, but the rates that you need might.

Rates on mortgages with purchase assist and debt consolidation purposes mainly have gone down. This means you may it is easier to qualify for your mortgage now

If you are a first-time home buyer employed and need assistance to purchase your home, have some of your needed down payment, even if your credit is not the best, you should be interested.

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Review your credit

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Review your credit

Review Your CreditReviewing your credit can help you prevent identity theft, prevent fraud and safeguard the wealth that you have been working for

Have you ever wonder if there are debts under your name that you are unaware?

Have you know of anyone that have experienced an identity theft?

Have you experienced not being able to qualify for the lowest mortgage rates available because of your credit rating and/or score?

May I help you with your mortgage?

Our times are filled with advanced technology with  the intention of making our life easier and prosperous, and our days are certainly different from those of our parents especially in regards to the amount of information that flows through our many different channels, devices and file cabinets. So much and so fast-moving information that it is very easy for many of us to fail to protect our own, from those whose intentions are to obtain strangers’ information for the purpose of benefiting themselves at the cost of others.

Not with the intention to scare the reader but to help with a single advice in this matter, review your credit file. Knowing your credit file is your responsibility and you can get it free, click here to get it now and understand how credit works when you need a mortgage

Knowing your file can save you not only money but stress and protection of the wealth that what you so hard have been working for. Many unpleasant surprises can be avoided when acting.

I invite you to contribute to a more honest society by reporting fraud follow the conversation #fraudchat Canada & follow me @jmortgageca

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Financial character

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Character

Financial character

Financial character is the mental and moral group of qualities presented by an individual in regards to his/her behaviors when it comes to his/her financial agreements.

Your credit score may not be good enough to qualify for a mortgage!
Your high income may not be sufficient to qualify for a mortgage!

Have you suffer disappointments or being declined for a mortgage even when your credit score is higher than others?

Do yo have a high income, yet have being declined for a mortgage or are currently paying high interest rates?

Learning how financial character affects your ability to qualify or to obtain better mortgage rates means a great deal of money in your pockets.

Understanding that money is not everything should very important to you as it is to the financial institutions or lenders that you will seek a loan from.

Your credit score may not be good enough to qualify for a mortgage!

It is in the way your earn money and the way you use it that you create behaviors and may tell of what you give priority when you spend, how respectful and committed you can be to a promise made when requesting a loan, and what capacity you have to continue repaying a long term debt that you are asking for.

To some people making money is very easy at a time, but spending more than what they make maybe easier, to them going into credit card’s debt may be not important because they can pay the money back (at first) but without a conscience, of repaying with respect to the institution that lent them the money and the integrity to recognize that the lending and repaying transactions are a mutual commitment, the behavior patterns of those people most likely will lead to a higher un-affordable debt.

Some people pay on time and what is agreed their mortgages, but fail to do the same with their telephone or utility bills or car loan or others, this deteriorates the character of the borrower.

Paying responsibly, with consistency, on time and agreed amount (that is not yours, yo borrowed it) with consistency to all who you have celebrated a financial agreement with, will help you build a pattern of good character, one that respects financial institutions and that is always observed by the lenders when requesting a mortgage loan.

Your high income may not be sufficient to qualify for a mortgage!

Some people may have a high income, yet they may have previous commitments to car and student loans, credit cards, other monthly commitments and may not see in time that their debt ratios are getting out of hand as what they make or more is already committed.

The above example is common and may be as a result of poor management of their income.

Some people may be earning enough money to afford mortgage payments but may not be able to document all their income, this represents a higher risk for the lender. Different lenders have different appetite for risk and therefore some people may be able to support their income in different ways and qualify for a mortgage loan, but the borrower needs to understand that a higher risk means a higher interest rate in their mortgage loan.

There are also people earning good money but not capable to save for the down payment on their own, and have no assets, so where does the money go?

May I help you with your mortgage?

All this examples and a thousand more that you may be familiar with, are considered as factors that build a financial character in a person by his/her own, and are always considered by the lenders when underwriting before they decide to approve or decline a mortgage loan.

Keeping a good financial character helps you project a good image of your self when it comes to requesting a mortgage loan, it shows your respect to your agreements, to, other people, to institutions and mainly to your own commitments

With a good financial character, you could picture yourself as the client all lenders want to have in their portfolio, it gives everyone a peace of mind, you would be a promise of a long lasting relationship, it is good business for everyone, and it means to you a great deal of savings.

Get the strategy you need to achieve your financial goal of investing on real estate, take the next step, get your mortgage assessment for free

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Appraisal rebate

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Appraisal rebateAppraisal rebate is an excellent opportunity and limited time offer that can help you save after we consider the reality that there are a number of additional costs when buying a home.

This special appraisal rebate offer is valid through your mortgage agent

For a limited time (valid only until July 31st, 2015) Equity Financial Trust is passing on to borrowers with bruised credit unique savings, this $300.00 appraisal rebate are valid on new deals on purchases and refinances in the following:

Lending Areas:

Urban & suburban marketable properties in Greater Toronto, Golden Horseshoe, Greater Ottawa, Kingston, Belleville, London, Kitchener, Cambridge, Waterloo and Guelph areas

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Reverse Mortgage

Reverse MortgageAbout reverse mortgage

Activate the equity in your home, remain independent and free in your own home.

The reverse mortgage has experienced an extraordinary 26% increase demand compared to last year.

What are homeowners with reverse mortgage using their funds for?

  • Enjoy some travelling
  • Need to improve your health
  • Make some home improvements
  • Help your family financially
  • Increase your cash flow
  • Investing

Reverse mortgage is a financial instrument that allows seniors to access at very convenient terms the equity in their home

The funds are available to the homeowner in a very short time after the application, and all the process can be done from the comfort of their home.

The purpose of the funds is up to the homeowner but, here below we enlist some common reasons.

Reverse Mortgage Interest Payment Information

 

 

91% of Canadian Boomers do not want to sell their home

  •         A study by CBC found that 91% of Canadian Boomers do not want to sell their home.
  •         As home values continue to rise in Canada, many senior women have tapped into the equity in their home.
  •         Low-income seniors that do not qualify for a traditional mortgage or secured line of credit often are placed into private loans with higher interest rates, high closing costs and annual renewal fees.

How can you help yourself?

If you know a senior that fits into the low-income category, have a conversation with me about HomEquity Bank’s Line of Credit – with the option to make payments, or simply defer payments

Mortgage Reverse Prepayments

 

Is reverse mortgage good?

The Reverse mortgage is simply fantastic, for a number of reasons, but most of all, because it provides easy and secured the access to funds through the equity that is already owned

How is the mortgage loan repaid?

The mortgage rates have always been lower than the rate of the equity increase and homeowners do not have to make periodic payments to the mortgage. The loan and interests will be repaid when the house is sold or inherited to other owners.

It is simple and very affordable. *Free personal consultations* are available, no pressure to commit, just detailed information is provided at the meeting to show you the reverse mortgage fees and qualifications. Get your reverse mortgage application now.

If you are 55+ Home Equity Income Advantage can help you get the peace of mind you are looking for to continue with your life and plans without worries of un-eligibility.

Reverse Mortgage Subsequent Advances

Here are the highlights of the Home Equity Income Advantage:

  • Exclusively for homeowners 55 and older
  • There are no credit or income qualifications
  • You can access up to 50% of the value of your home
  • You receive the money tax-free
  • You can take the money as monthly cash flow and as a series of lump sums
  • No payments are required while you or your spouse live in your home
  • You maintain ownership and control of your home
  • You keep all the equity remaining in your home
  • Your estate is well protected
  • You can save on taxes

Home Equity Bank

We offer the Home Equity Income Advantage in partnership with Home Equity Bank.

HomEquity Bank is a schedule I Canadian Bank and is the only national provider of reverse mortgages to homeowners aged 55 and over

HomEquity Bank’s product line is now officially endorsed and recommended by CARP as a trusted financial solution!

How much can you borrow on a reverse mortgage loan?

Click here to try a free pre-approval reverse mortgage calculation and find out how much funds you ca access from your own equity

Free reverse mortgage calculation


How much can you be pre-approved for? Complete the no commitment form below!

Gender information helps estimate life expectancy

After submitting you will receive by return email the amount you can borrow under this premises


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Home sale prices in Ontario

Home sale prices in Ontario

Is it really worth it to buy a house? That is a question that some renters that I have come across with have or had, like John and Sue (not real names) from Toronto, who were renting because they never thought that they could buy a house considering their financial situation. After our first meeting at that corner coffee shop (it was very crowded by the way), they felt comfortable enough to take the next step

The next step was, to decide whether to start their mortgage assessment or not, they decided to go ahead as they had nothing to lose and now they own a condo on a 15th floor that is more comfortable than the apartment they were renting and in a safer area; their mortgage payments are currently lower than what they were paying as rent.

The following chart from CHMC, illustrates in a simple way the average home sale prices in Ontario, includes a forecast for the years 2013 & 2014.

What you as a borrower can take from this is that, those who in the past years, were able to invest in a real estate and capable of keeping their investment, have now benefited by the growth of their equity, even through the slow economy that we lived in the past few years.

In the graph, as we observe a steady increase in home sale prices, we should also consider the savings resulting from low mortgage rates (not expressed in the chart below).

The growth of wealth in equity offered by the residential real estate industry, should be considered as a clear message, and an invitation to those who are currently renting, to invest securely and buy their homes now, rather than later.

Situations that prevent renters from buying a home like, low credit, no initial down payment, low income and others can be overcomed with a clear and solid strategy and here is where I can help you.

Home Sale Prices in Ontario

Source CHMC

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 Contact your mortgage agent

Household credit growth in Canada

Household credit growth in Canada

The information on the following graph helps us observe that from the past 7 year approximately borrowers are paying more importance to their secure mortgage credit rather than easy to obtain commercial credit like credit cards; Thanks in part to the federal government regulations and on to the slow economic activity that has affected many industries and borrowers in all economic sectors

Borrowers have learned to use the strategies offered by mortgage agents all around Canada; mortgage strategies like mortgage refinances, debt consolidationlines of credit and first mortgages, wisely negotiated by mortgage agents at the lowest mortgage rates.

Your personal observation on the matter in important to gain a broad perspective on how mortgage loans may be affecting you; Write a line at the bottom o this post!

Household credit in Canada

Toronto Mortgage Agent

The Toronto mortgage agent of Mortgage Edge to get your first, second mortgage or line of credit that you need, apply online and deal with many mortgage lenders

Toronto Mortgage agentWe can save you thousands of dollars on your residential mortgage, complete your online application, click on the top right banner now

With me as your TMortgage Broker - Mortgage Edge - Toronto Mortgage agentoronto mortgage agent, you’ll have quick personalized service access to the best lenders and a complete array of mortgage products to get your mortgage loan approved.

Don’t worry about your credit, submit your online application and let’s get it done now!

If you already own a property, request a property value & comparable sales report when you complete your online mortgage assessment

If you are looking for a Toronto mortgage agent or have questions about what type of mortgage you need, call now, or, learn about the following mortgage products

MortgageSecond MortgageRefinance
Reverse mortgageHome Equity Line of CreditCommercial Mortgage

Whether you are looking for a mortgage to purchase a home, refinance your existing mortgage and your other loans or credit cards in order to pay less interest, or if you are looking for a commercial mortgage to finance your business, you can call me to help you get that financing that you seek.

Toronto Mortgage agentLet’s get it done now

Request your *mortgage assessment free*, apply online and get a free one on one meeting

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