Some Reminders From A Toronto Mortgage Broker

You’ll need to remember a few things as you move forward.

• One of these loans typically requires a more significant down payment than a more traditional counterpart. In fact, in some cases, it can be as much as 20 to 30% more. Lenders typically look at these properties as having higher risk because there’s a bigger chance of price volatility and market fluctuation.
• There are some minimum down payment requirements that you’ll need to know about. For properties listed out or below 1 million Canadian dollars, the minimum down payment needs to be 5% for the first $500,000 and 10% for any amount above that. All properties priced above 1 million Canadian dollars need a 20% down payment minimum. That’s generally for a conventional mortgage.
• Although different lenders usually have different policies regarding down payment, one factor contributing to an acceptance is your credit score. Several factors go into one of these scores, including your credit history, the number of inquiries made over a given period, and your payment history. Equifax reports that a good credit score that will generally get you accepted is between 670 and 739.

OMJ Mortgage Capital is the Toronto mortgage broker that can help you get a luxury Residential Mortgage. Contacting us today is the first step towards realizing your dream home. Don’t settle for a cookie-cutter variety of products when you can get what you want through our exclusive services. We offer a good variety of  different mortgage products for many types of real estate in Ontario. Ask about our outstanding track record of funding many different types of loans today.

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We are always happy to supply useful Toronto mortgage broker tips. Some of our clients asked us how to best use the equity they have built up in their homes. After years of getting the best mortgage rates, the chances are your equity is good.

There are several ways that you can turn this money into cash to better your financial situation.  

Using a HELOC

These are also called a home equity line of credit. Like credit cards, lenders will give you an amount to use at your disposal and you can spend it as needed. One of the big bonuses here is you only  need to pay interest on the amount you’ve taken out. 

Keep in mind there are some administrative costs when you apply for one of these loans including a title search, appraisal fee, legal fees and title insurance.

One of the more common reasons that homeowners dip into their equity are home improvements. A HELOC is a good way to finance larger projects like kitchen renovations that actually increase the value of your place. If you’re careful and plan properly, you can use the money for renovations that will help to sell your home later on.

 Toronto Mortgage Broker Tips for Home Equity Loans

If you use this option, you will receive a lump sum. These are different from HELOCs because you need to start repaying the money right away. Your monthly payments stay the same because the interest rates don’t fluctuate with this type of loan.

You can even use your home equity to pay down debt. There are several good reasons for doing this. First off, you can consolidate what you owe at a lower interest rate.

Remember we are the Toronto mortgage broker that offers valued added service including quick closings and approvals.

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Here are a few of the myths we can help you steer clear from.

• Some people think that arranging for a second appraisal isn’t necessary. This kind of thinking happens more often when property values haven’t gone up. However, not having your property appraised for a second time can mean underrepresenting the price. Remember these appraisals are a big driver of your interest rate. They set both your loan to  value ratio and the value of your property.
• Another myth is you cannot be approved for refinancing if you’ve been denied in the past. The two main requirements are credit and equity. Even if you’ve been turned down previously and  are still paying down your mortgage, your more than likely gaining equity. If that’s the case in your house hasn’t dropped in value, you’ll be more attractive to lenders.

Our mortgage broker Toronto services can help. Even if you been previously refused for bad credit we are here. There are options available especially if you’ve been working on improving your credit score.

Current Payments

Here’s another myth we want to dispel. Many people think that keeping up current payments on an existing mortgage can qualify them for a new loan. Another misconception is the process for refinancing will be easier if your income has gone up.

Unfortunately, a payment history and your existing mortgage aren’t relevant when you’re looking to take out a new loan. As a Mortgage Broker Toronto who understands the requirements, we can help you with any current guidelines for credit score and income.

Applying for refinancing doesn’t need to be confusing. Get in touch with us and we can help you through the process.

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 Your Toronto Mortgage Broker and Refinancing

Simply put, mortgage refinancing is the process of replacing the mortgage you have with the newer one. At any time during the amortization period, you can refinance with a Toronto mortgage broker.

However, you might need to pay a penalty.

Refinancing your mortgage is a good idea if any of these scenarios apply to your finances:

• It’s in your best interest to change the monthly structure of your payments.
• It’s time to think about consolidating debts into one payment.
• You’re looking at increasing the value of your home with renovations or repairs.
• It’s possible to get a lower interest rate with the refinance to save money.

It’s possible to convert the type of mortgage you have from a variable to a fixed rate or vice versa. If you choose a variable-rate mortgage over a fixed-rate one, you can save some money over time but that situation can backfire. When interest rates start going up, a fixed-rate mortgage is the better plan for stability.

Enough Equity?

One of the other important factors is determining if you have enough equity to refinance. Equity is the difference between the amount that you owe on the home and the current value. Most likely, a lending institution will order a home appraisal to determine the worth.

As your Toronto mortgage broker, we like to suggest that homeowners are present during the appraisal so they can ask any questions. Make sure to have documentation for any upgrades and renovations on hand. Finally, tidy up and make sure there’s no clutter.

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Following are a few tips that can help you navigate the whole process.

• Before you start, understand why you want to refinance. Maybe you could pay off your existing loan quicker with a shorter term. Perhaps you’re looking at lowering your current interest rate so your monthly payment follows suit. Some people want to switch from an adjustable-rate product to a mortgage with a fixed rate.
• There are some other considerations. For example, you should decide if you want to refinance based on the amount of equity you have. As a Toronto mortgage broker, we help people to decide what is in their best interest. Keep in mind that your lending institution will need an appraisal to verify the value of your property. You’ll need to have some equity for the refinancing process.
• You’ll need to get your paperwork together too. Bank statements over the last two months or 60 days are necessary. You’ll more than likely also need to gather up your pay stubs over the past month. Contact numbers for the places you’ve worked for the past two years are important. Your current mortgage statement and homeowner’s insurance policy will also be required.

We’re the Toronto Mortgage Broker who can help you navigate the refinancing process. There’s lots to consider including the possibility of prepayment penalties.

Three Months Interest

The exact amount is in your contract. You can be charged up to three months’ interest with a variable rate mortgage. With a fixed-rate mortgage, you can be charged the same.  Or what’s called an interest rate differential.

Keep in mind that refinancing can still be financially worthwhile even with a prepayment charge.

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Need a little more convincing about why you should use a mortgage broker? Here’s five more reasons.

• They can save you both time and money. Using a mortgage broker means you don’t need to contact and fill out the paperwork yourself. A mortgage broker looks after all of that for you. They are also on the lookout for the best mortgage rates to save you money.
• They are experts at what they do. These professionals can help you with guidance on different mortgage products and help you navigate market conditions to get the best rates.
• A Toronto mortgage broker is independent. That means they will be unbiased and neutral. They don’t work for any particular institution which means they’re looking for the best solution for you.
• These experts understand the different policies and terms with lending institutions. They are always available to match your needs up with the right bank or other financial institution.
• They can also help you to protect your credit score. Looking for the best mortgage rates on your own means applying at one institution after another. Each application can mean a credit check which, over time, can lower your score. Using a mortgage broker means you should only need to have your credit checked once.

Using one of these experts also means you’ll have access to a wide network of lenders through them. Allowing them to negotiate terms and rates for you means you get the best numbers. Using a Toronto mortgage broker means you can cast the net a little wider for potentially bigger savings. They find the best mortgage that’s suitable for you.

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Position Your Employment Properly  

You might find another opinion somewhere else, but we always think it’s best if you don’t apply for a mortgage until you’ve been in the same job for several years. Lenders are always looking for stability. While we can help you with the best rates, your employment history is the kind of thing that you’ll need to look after on your own.

Although the trend is shifting as more and more employment goes digital, lenders still favor people who work for businesses rather than those who are self-employed.

Make A Bigger Down Payment

The bigger your down payment, the less money you owe on the mortgage. When you factor in that simple ratio, you’ll see why it’s a good idea to put as much down as possible to get the best mortgage rates. One of the common benchmarks that people use Is a 20% down payment.

Hire a Toronto Mortgage Broker

When you need to fix your car, you go to a licensed mechanic. When you’re sick, the chances are you’ll go to a qualified physician. When you’re looking for the best mortgage rates, hiring a mortgage broker is always the way to go.

We are always available to help you. Keep in mind that we have an outstanding team of professionals with experience and dedication to all of our clients. Why not get in touch today for the best mortgage rates?

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Know Your Budget

Lending institutions and banks will give you a number to work with, but it generally doesn’t tell the whole story. It’s much better if you sit down and crunch a few of the numbers that you will need to run a house on your own. For example, a bank generally doesn’t include maintenance fees as well as property tax in the final figure that you will be approved for.

Put Together A Decent Down Payment

As your mortgage broker Toronto of choice, we can report that putting together as much as possible for a down payment is an excellent idea. We generally tell people that 20% is the best number to shoot for.

That might mean that you will need to trim some of your expenses like going out for dinner and entertainment. However, in the end, you’ll have to put aside less for your mortgage with a larger down payment.

There’s really no way around it, buying a house will change your financial life.

Closing Costs

Here’s an excellent example of what we mean. Along with all the money that you need to put away for a roof and maintenance as well as other incidentals, there are closing costs to think about.

Home Inspection Advice from a Toronto Mortgage Broker

Some of the fees that you’ll need to pay here include some extra cash for a home inspection and appraisal. Your lawyer will want a decent chunk of money to make sure everything is aboveboard.

We’re always here as your Toronto mortgage broker to answer questions and help you get the best rates on your mortgage.

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What are some of the costs of the loan?

Going into any commercial enterprise having good information is essential. In some ways, a commercial loan is like a residential mortgage. You’ll want to know about things like costs associated with the loan. In commercial terms this can include third-party reports covering environmental and structural data.

Of course, there will be legal fees that you’ll want to talk over with any Toronto mortgage broker.

What are they prepayment penalties?

When you’re dealing with the business type loan, it becomes important to know what your penalties will be if you decide to sell early. Commercial enterprises and businesses can be volatile in these ever-changing times and having a professional commercial mortgage broker on your side can help.

What is your experience in my industry?

A good mortgage broker will have experience they can verify in the industry you’re working in. They should be able to show you some potential properties in industrial parks or suburban office spaces depending on your needs.

We have the experience that you’re looking for. As a commercial mortgage broker in Toronto, our track record speaks for itself. It’s important to us to match you with the property that can help you establish an existing business or grow a new one.

Commercial Mortgage Broker Expertise

Whether you’re looking for a retail environment, commercial office space or maybe even some industrial land, we can help. Matching you with the commercial property that fits your particular vision is what we do best.

Why not get in touch with us today so we can use our commercial mortgage broker expertise to your advantage?

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Here’s three that should help you put your money house in order before you buy the real thing!

Make up a Financial Calendar

You can’t be expected to remember everything in today’s busy world. However, there are many different apps you can use as financial reminders. If you are looking to set notifications when bills are due, your smart phone generally has a calendar you can use.

Experts suggest you use one of these financial planners like any other calendar you book car appointments and doctor’s visits on.

Make a Budget and Stick to it

If you search online, you’ll see there are many different ways to set a personal budget. However, one of the most efficient goes by the 50/20/30 rule. This is where 50% goes to pay essential expenses like housing. Another 20% goes to financial priorities and the last 30% is geared to lifestyle.

Making sure that you stick to a budget is critical. As your Toronto mortgage broker , we can help you factor in housing expenses like maintenance and utilities.

Set Goals

Talking about what you want to do with your money is one thing. Having a concrete plan is another. Incorporating dates is an important part of nailing down a good personal financial plan. Once you put the pieces of a financial plan together, you can set these kinds of specific goals.

If you need help deciding how a home of your own fits into the puzzle, give us a call. We are always available to answer your questions as your Toronto mortgage broker of choice. Remember we  are always ready to answer any and all of your questions.

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