Mortgage Refinance

Steps to Renew your Mortgage.

Renew your Mortgage

Renewal Statement:

The renewal statement is issued by your financial institution at least 21 days before the end of existing term. Information on the statement includes,Balance outstanding, Interest Rate, Payment Frequency, Term and any charges or fees that may apply. It specifies that until the date of renewal the interest rate offered will not increase. If the lender doesn’t wish to renew, you will be notified at least 21 days before the renewal date.  

Review your mortgage needs:

Two options at renewal are either to renew your mortgage or pay it off. This would be the a good time to review your needs.  

Points to consider:

  • Does your budget allow you to increase mortgage payments.
  • Do you want to pay off mortgage sooner and save interest by making additional prepayments.
  • Is there a need to change payment frequency. Biweekly accelerated payments can help you pay mortgage quickly.
  • Are you satisfied with your current lender.
  • Is there a need to consolidate the debts with higher interest rates. Does it make sense to increase mortgage payment.
  • Are you satisfied with the insurances in place like critical illness, disability, employment or mortgage balance protection.  

Find a Mortgage Broker:  

You don’t have to renew with the same lender. You can choose to renew with another lender that offers you terms and conditions that best suit your needs. No need to wait until you receive renewal letter. Contact your mortgage broker for advise and suitable mortgage.   If you do not take timely action, chances are your mortgage may automatically get renewed for another term. You may not get the best rate and conditions.   Keep in mind while switching to another lender for the same amount, the new lender will qualify you for mortgage. New lender may have a different criteria for mortgage approval. Talk to an expert who is well aware of lenders. You may have to pass stress test. There are alternate lenders that are more relaxed and offer competitive rates.   If you do not have mortgage default insurance the lenders use higher interest rate of Bank of Canada’s bench mark rate or contract rate plus two percent to qualify you. if the mortgage is renewed with existing lender, the lender is not required to use stress test, although may choose to do so.  

Costs to change Lenders:

  • Fees for discharge previous mortgage.
  • Fees for registering new mortgage.
  • Transfer or assignment fee in case of switch
  • Appraisal fee.
  • Legal fees.
  • Mortgage insurance fee applicable(If the amount of loan is increased, or taking extended amortization). Some lenders may absorb a portion of the fees.  Always advise your broker if you have taken insurance to avoid paying insurance twice.  

Collateral charge:

What if your existing mortgage is registered with collateral charge. You will have to pay fees to remove the charge and register the new mortgage with new lender. To remove the charge full amount must be paid to the lender for the collateral such as line of credit.   If you change lender before the end of the term you may also incur prepayment penalties. Consult with Mortgage Broker and know your options before taking any action.

CMHC announced changes to its mortgage insurance underwriting and acceptance criteria.

Effective July 1, the following changes will apply for new applications for high ratio mortgages.

Imagine a life with no mortgage. How satisfying it would be knowing that your home is truly your’s. So much cash in hand and much more savings when there is no financial obligation such as the mortgage.

Planning and Managing your Mortgages

Home financing may bring challenges. Be prepared to deal with as they come up. These can include a loss of income, increased expenses or rising interest rates. The following tips can ensure you’re financially stable through any ups and downs.

How to Get a mortgage in Toronto?

You should have downpayment ready, Plan a budget. Check your credit if established. Support your application with required documents. We are Reliable, Trustworthy and dependable.

5 Tips when you are Refinancing Your Mortgage


1. KNOW YOUR CREDIT SCORE

Most people don’t know about the credit. It is vital to have exact credit score and complete report. Your report plays a vital role to assess the chances for successful refinance application.

2. KNOW YOUR EQUITY

If you looking for cash from refinancing your mortgage, you have come to the right place. Your equity in the home is calculated based on the percentage of your home that you have paid off.

3. SPRUCE UP YOUR PROPERTY

Improve the exterior if possible.Your curb appeal can help you with a successful appraisal. Lawn mowing and light cleaning can influence overall appraised value.

4. ORGANIZE YOUR DOCUMENTS

Your lender might ask you for additional documents to support your request for refinance. Send the documents without delay to ensure a smooth closing.

5. CONTACT FINSER MORTGAGES

We are Mortgage Professionals. We offer customized Refinance Solutions for clients with unique needs. Let us help you find the right refinance solution.

Get your Refinance Approval with FINSER MORTGAGE BROKER.
We offer mortgage industries refinance options and customize them to fit your requirements.

Finser Mortgages-Why use a mortgage broker

– We Represent you! 

Our Mortgage Agent is inclined with your interests.

-Range of Mortgage Products!

We have mortgage products that suit your specific needs, and probably not available at your traditional lender.

-Options and Features!

You should have options and features that benefit you in the long run. Be able to pay faster or have pre payment privileges.

-Professional, Experienced, Trusted!

Finser Mortgages has been in the business for almost 20 years! We know Mortgages and our mississauga mortgage brokers and agents are here to help you get the mortgage that fits your need and specific situation. 

Finser Mortgages should be your number one choice when is comes to reasoning of why should you use a mortgage broker. Give us a call today at 905-461-9177!

New Lower Mortgage Rates are available!

What are you waiting for? Take advantage of the low interest rates.

NEW MORTGAGES RATES!

Let us help you with the Mortgage Solution. Give us a call today at 905-461-9177!

bank of canada interest rate announcement

Bank of Canada cuts rate by half point.

First cut in four years lower key interest rate to 1.25%.

The Bank of Canada today lowered its target for the overnight rate by 50 basis points to 1 ¼ percent. The Bank Rate is correspondingly 1 ½ percent and the deposit rate is 1 percent.

While Canada’s economy has been operating close to potential with inflation on target, the COVID-19 virus is a material negative shock to the Canadian and global outlooks, and monetary and fiscal authorities are responding.

Before the outbreak, the global economy was showing signs of stabilizing, as the Bank had projected in its January Monetary Policy Report (MPR). However, COVID-19 represents a significant health threat to people in a growing number of countries. In consequence, business activity in some regions has fallen sharply and supply chains have been disrupted. This has pulled down commodity prices and the Canadian dollar has depreciated. Global markets are reacting to the spread of the virus by repricing risk across a broad set of assets, making financial conditions less accommodative. It is likely that as the virus spreads, business and consumer confidence will deteriorate, further depressing activity.

In Canada, GDP growth slowed to 0.3 percent during the fourth quarter of 2019, in line with the Bank’s forecast, although its composition was different. Consumption was stronger than expected, supported by healthy labour income growth. Residential investment continued to grow, albeit at a more moderate pace than earlier in the year. Meanwhile, both business investment and exports weakened.

It is becoming clear that the first quarter of 2020 will be weaker than the Bank had expected. The drop in Canada’s terms of trade, if sustained, will weigh on income growth. Meanwhile, business investment does not appear to be recovering as was expected following positive trade policy developments. In addition, rail line blockades, strikes by Ontario teachers, and winter storms in some regions are dampening economic activity in the first quarter.

CPI inflation in January was stronger than expected, due to temporary factors. Core measures of inflation all remain around 2 percent, consistent with an economy that has been operating close to potential.

In light of all these developments, the outlook is clearly weaker now than it was in January. As the situation evolves, Governing Council stands ready to adjust monetary policy further if required to support economic growth and keep inflation on target. While markets continue to function well, the Bank will continue to ensure that the Canadian financial system has sufficient liquidity.

The Bank continues to closely monitor economic and financial conditions, in coordination with other G7 central banks and fiscal authorities.

Source: https://www.bankofcanada.ca/2020/03/fad-press-release-2020-03-04/

INSURED MORTGAGE SIMPLIFIED.

An Insured Mortgage covered by Mortgage Default Insurance is called an Insured Mortgage.

Lenders apply for Default insurance, this default insurance covers the lender (not the borrower) against any losses related to borrower default and foreclosure. Currently, there are three insurers in Canada; CMHC, Canada Guaranty and Genworth.

Each of these insurers offers two types of insurance coverage.

Transactional Insurance, referred to as a High Ratio Mortgage: The one-time premium is added to the requested mortgages with Loan to Values greater than 80% (sometimes added to lower LTV’s in unique situations). This insurance premium is added to the mortgage balance at the time their mortgage is advanced. Lenders pays the insurers and the Borrowers are responsible for paying the insurance premium. The insurance premium is tiered and reduces, in case clients puts more down payment.  You can see a full breakdown of the premiums here

Portfolio Insurance or Bulk Insurance: This insurance is applied to mortgages with Loan to Values less than 80%.  Most often borrowers are not even aware that this coverage has been purchased as the premium is paid for by the lender or bank.  Mortgage Lenders like First National, Manulife, Marathon and MCAP have used this type of coverage on all the mortgages they fund. Big Banks also use this insurance to a lesser extent.  Mortgage Lenders buy this type of insurance in order to offer better  mortgage rates.

Since default insurance is added to help protect the lender, insured mortgages are viewed as a more secure and therefore borrowers often receive lower rates.

Contact your Finser Mortgage Broker or Agent to help you find the right mortgage solution suitable to your needs.