we are committed MORTGAGE BROKERS

For a first-timer, buying a home is exciting but can also be challenging. You might be scared about making an expensive mistake given the many steps, requirements, and tasks involved. First-time homebuyers can enjoy the special incentives created to encourage new entrants into Canada’s real estate market. Without the help of a qualified mortgage broker, you may not even know that certain incentives exist. A mortgage broker will demystify the home buying process and ensure that you get the best mortgage deal. You need to consider the type of residence that you can afford and that will serve all your unique needs. You also need to determine how much mortgage you can qualify for to avoid disappointments. Our certified mortgage brokers will:

• Help you find the right property
• Guide you into securing financing
• Help you get a pre-approved mortgage
• Help you close on the mortgage deal

You will have several options when buying your first home. You can choose from a conventional single-family home, a townhouse, a condo, a multi-family building, or a duplex. Every option has its pros and cons, and that’s why you need a mortgage broker to guide you. A mortgage broker will help you get a pre-approved mortgage. A pre-approved loan gives you an advantage over other buyers who may be interested in the same property as you. Some sellers do not even entertain an offer that isn’t accompanied by approval. Getting a pre-approval involves applying for a mortgage in advance and completing all the paperwork. The lender then tells you the amount you can qualify for. A pre-approved mortgage saves you time and money because you will only focus on the houses you can afford.

Refinancing your mortgage can offer you a wide range of benefits depending on what you want to achieve with the refinance. Some of the primary reasons why people choose to refinance a mortgage are:

• A better mortgage rate
• Lower monthly installments
• More predictable costs
• To shorten the loan term
• Consolidate debts
• Access more money

Accessing better interest rates is the most common reason for mortgage refinancing. If you took your mortgage when the rates were slightly higher, you could refinance to access better rates. Refinancing your mortgage at the current lower rates can help you save thousands of dollars over the mortgage term. You may also refinance your mortgage if your credit situation has improved since you took your last loan. If your credit situation has improved, it would mean that you qualify for lower mortgage rates. With lower interest rates, you can repay lower monthly installments. You can also lower your monthly repayments by extending the mortgage term to a longer term than the current one.

You can refinance your mortgage to choose a fixed-rate mortgage if you currently have an adjustable-rate mortgage commonly abbreviated as an ARM. A fixed-rate mortgage allows you to lock the interest rate for the remaining term of the mortgage. With a fixed-rate mortgage, you don’t have to worry about increasing interest rates that might increase your monthly repayments.

Mortgage refinancing can help you shorten your mortgage term. You might have started with a 30-year mortgage. You can refinance the mortgage to a 15-year mortgage after paying for several years. This will allow you to repay the mortgage faster and make significant interest savings. Short-term mortgages often have lower interest rates than long-term mortgages. Therefore, shortening the mortgage term can help you repay the loan faster without increasing the monthly installments.

A mortgage refinance allows you to borrow against your home equity. You can use the funds for any purpose, including investment and home renovation. A refinance is a great way to borrow and consolidate your expensive debts because mortgage rates tend to be lower than other debt types.

Most mortgages are renewed at least once before you eventually pay them off. If you aren’t able to pay off the mortgage in the first term, you must renew it at the end of the term. Renewal involves taking the outstanding balance of your mortgage and renewing it for another term. You will know that it’s time to renew your mortgage when the lender sends you renewal documents in the mail. The documents include the new mortgage offer and terms. If you are comfortable with the mortgage renewal terms, you can simply sign the mortgage documents and send them back. Below are the important factors that you should consider when preparing to renew your mortgage:

• Consider your current financial goals
• Start shopping around early
• Seek or request better mortgage rates
• Consult a mortgage broker in advance
• Consider switching lenders

Before you sign and send back the mortgage renewal documents, you should first consider your current financial goals. You want to ensure that the mortgage suits your financial needs. Understanding your financial goals will help you know which lender and product to choose.

Your lender will probably send you the renewal documents three weeks or a month before the renewal date. However, you should start shopping around much earlier than this. You can start negotiating three months before the mortgage renewal date. You should consider switching lenders if you can’t negotiate for a good deal with the current lender. You should consult your mortgage broker to give them ample time to advise you and find you the best mortgage product. You will also have enough time to get all your paperwork ready instead of scrambling at the last minute.

During a renewal, it’s the perfect time to seek a better mortgage rate. Instead of moving from lender to lender, you should have your mortgage broker advise you on the lenders you can work with and the rates they charge. Mortgage brokers have a large network of lenders; they will help you complete the process in a short period.

Private mortgage lenders are institutions or individuals who help you qualify for a mortgage when conventional lenders do not approve your application. These lenders provide short-term asset-backed mortgages to help you acquire property. Many businesses and individuals in Canada obtain mortgages from private lenders. Unlike conventional mortgages, private mortgages are easy to qualify for. They provide a great alternative to traditional financing options. A private mortgage might be the ideal option for you when:

• You want to invest in an unconventional property that the bank or other traditional lenders aren’t comfortable to finance
• You want a short-term loan that you intend to repay after several years
• You need a quick loan, and you can’t wait for a long mortgage approval process
• Regular mortgage lenders are turning you down because of your poor credit history
• Your unverifiable income has proved to be a barrier or a roadblock to a traditional mortgage

Private mortgage lenders usually consist of organizations or individuals who have surplus cash to invest in private mortgage loans. They lend the money as short-term loans secured by collateral. Different private mortgage lenders have different philosophies. For instance, some lenders may choose to finance residential mortgages while others prefer commercial properties. A knowledgeable and well-connected mortgage broker can help you reach out to the best private mortgage lenders in Aurora. Private mortgage lenders look beyond your negative credit history. They assess every borrower individually and consider the property the borrower is willing to provide as collateral. Even if the private mortgage lenders charge a higher interest rate, getting a loan from them is faster and easier.

A second mortgage is a loan that you take against your home equity. Usually, you can get up to 80% of your home’s appraised value less the balance of the first mortgage. This loan is secured against your home equity. The second mortgage is riskier than the first mortgage. If you default your mortgage and lose your home, the home is sold, and the first mortgage is paid off first. Therefore, the second mortgage lender might not recover their money. For you to cover this risk, second mortgages usually have a higher interest rate than the first mortgage. When obtaining a second mortgage, you may have to pay administrative costs like:

• Appraisal fees
• Title insurance
• Title search
• Legal fees

When you obtain a second mortgage, you must continue making payments on your primary mortgage in addition to making payments on the second mortgage. The loan is called a second mortgage because the first loan takes precedence in case of a foreclosure. Before you qualify for a second mortgage, lenders may focus on:

• Income verification
• Credit score
• Equity
• Property

Income verification aims to ensure that you will afford to make the payments. If you have a dependable source of income, there is a higher chance that you will qualify for a second mortgage. The lender will also renew your credit score when lending a second mortgage.  Your credit score will also determine the applicable interest rate. The lender will also consider the listing of your equity. If you have significant equity, you are more likely to qualify for a second mortgage. The property’s value also matters because the lender must ensure the property has a high value worth the mortgage amount you claim. A mortgage broker will increase your chances of qualifying for a second mortgage.

A self-employed mortgage is a residential or commercial mortgage applied by a person who is self-employed or owns his or her own business or corporation. People in self-employment have a different way of declaring their earnings than people in employment. Sometimes, the net income declared by people in self-employment is not adequate to enable them to qualify for a conventional mortgage. Many people are leaving their 9-5 jobs to break loose from the corporate handcuffs. Multiple rewards exist when you work for yourself, which explains why many people prefer self-employment to formal jobs. Despite the numerous benefits of being self-employed, there’s one pitfall: self-employed people have difficulty accessing a mortgage. Mortgage financing for a self-employed Canadian can be extremely frustrating, especially if they apply for a mortgage from the bank.

Experienced mortgage brokers can help you when seeking a self-employed mortgage.  Many lenders, especially private lenders, do not follow the strict rules as banks do. At CMB, we have access to numerous local lenders, including banks, alternative mortgage lenders and private lenders. Accessing a mortgage doesn’t have to be hectic, even if you are self-employed. Most lenders will consider the average of your business income, usually for the last two years. To increase your chances of qualifying, you should pay off most of your outstanding debts. While you are in self-employment, it is common to write off some of your expenses. The downside of writing off these expenses is that they can limit the mortgage you qualify for. Some lenders are kind enough; they will write back these expenses while determining the loan amount you qualify for.

You don’t have to buy a ready house. You can choose to apply for a construction mortgage and build a home that meets your preference. Construction financing might be the best financial vehicle to help you build a dream home for you and your family. However, getting a construction financing loan is not always simple. Lenders could take weeks or even months before they decide whether your construction project is viable. They might even take longer to decide if you are viable for construction financing. That’s where certified mortgage brokers come in. A mortgage broker understands all the challenges involved in accessing construction financing. They will do everything possible to help you succeed. We will help you access the money you need to complete the construction project on time.

A construction financing loan may not meet the entire cost of a building. However, it serves as temporary financing to bridge the cost of the project. A construction financing loan’s interest rate may be higher than that of a traditional mortgage because lenders often consider construction projects risky than buying a ready house. Construction financing loans often have strict terms that you must adhere to, including completing certain project phases within pre-set timelines. Your mortgage broker will ensure you get the best possible construction financing deal.

HELOC stands for Home Equity Line of Credit, which is a secured form of credit. A lender will use your home to guarantee that you will pay back the loan amount you borrow. HELOCs are revolving credits meaning that you can borrow money, pay back, and borrow again up to your credit limit. There are two main types of HELOCs. The first is the home equity line of credit combined with a mortgage, sometimes known as a re-advanceable mortgage. This HELOC combines a revolving home equity line of credit with a fixed-term mortgage. You will only pay interest on the money you use, and you will not have fixed repayment amounts on your HELOC. The credit limit for a HELOC combined with a mortgage is 65% of your home’s market value. As you continue paying your mortgage, the credit available in your home equity line of credit will go up. In some instances, you can choose to finance your home purchase with a HELOC and part of it with a fixed-term mortgage. You can choose how to use the two sources of funding to finance your home purchase.

HELOCs provide an easy way to access money. However, financial discipline is paramount because you will have access to large amounts of money, and you might end up misusing this money. Certified Mortgage Brokers will guide you on how to access the best HELOC deal in Aurora.