Mortgage Refinance

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.

Starting in April, the government will change the rules that cover mortgage lending in a way that should, in the short term at least, make it easier to qualify for a loan to buy a home.

The Department of Finance says that as of April 6, the so-called “stress test” for mortgages will be calculated in a new way.

The stress test was implemented in January 2018 as a way to let some of the speculation out of the housing market at the time. It does so by making sure borrowers will be able to pay down their debts even if rates move higher. A would-be borrower is tested against his or her ability to pay down the loan at a higher interest rate, and if the borrower fails the test, a lender isn’t allowed to loan them money.

The rules had the effect of cooling the market, especially for first time buyers, which brought down prices in many markets because it shrank the pool of buyers.

ANALYSISAssessing whether 2020 will bring a Canadian property tumble: Don Pittis

At the time it was brought in, the benchmark was set at whatever the five-year posted rate at Canada’s big banks is, which is currently at 5.19 per cent. But under new rules announced on Tuesday and set to be implemented in April, the new bar will be “the weekly median five-year fixed insured mortgage rate from mortgage insurance applications, plus two per cent.”

“This will ensure that people only take on mortgages that are appropriate for the situation, but it does mean the changes in the stress test will be there if the average … rates provided by the banks actually goes down or up,” Finance Minister Bill Morneau said of the changes. “It will actually adjust appropriately to dynamic market conditions.”

The change tinkers with one of the major criticisms of the stress test in the first place, which was that the bar was set arbitrarily high. And non-bank lenders don’t like that the stress test rules give the big banks even more control over the market than they already had. Sherry Cooper, chief economist at Dominion Lending Centres, says the banks would always drag their feet in changing their posted rates, no matter what was happening in the market, “because it’s the rate they use in calculating the penalty for breaking a mortgage,” she said in an interview Tuesday. “This takes the big banks out of it.”

Source: https://www.cbc.ca/news/business/mortgage-stress-test-1.5467330

Are Toronto House Prices Headed Back to 2016 Levels? Concern is growing that Canada’s largest housing market may be about to experience a new round of froth, similar to that seen in 2016.

Back then, red-hot housing markets in the Greater Vancouver and Toronto Areas ultimately forced the federal government to introduce the 2016 and 2018 mortgage stress tests on both insured and uninsured mortgages.

While sales activity and prices took a hit in both markets, the recovery for the Greater Toronto Area seems to be nearly complete. The Toronto Real Estate Board (TREB) reported in January that the MLS Composite Benchmark price was up 8.7% compared to January 2018—the fastest pace of growth since October 2017.

Source: https://www.canadianmortgagetrends.com/2020/02/toronto-house-prices-headed-back-2016-levels/

The ripple effects of the coronavirus are being felt on Canada’s bond market, which is translating into lower mortgage rates. Variable-rate mortgages are generally tied to the Bank of Canada’s overnight benchmark rate. Their fixed-rate counterparts depend on the five-year Government of Canada bond yield, which fluctuates with market forces. It’s fallen sharply since the coronavirus first surfaced.

Source: https://ca.finance.yahoo.com/news/coronavirus-fears-help-push-down-mortgage-rates-204114945.html

The Bank of Canada announced this week that it would leave its mortgage market-influencing key interest rate unchanged again. This development — or lack thereof — did not come as a surprise to economists who pay close attention to the central bank’s moves. It was, after all, the fifteenth straight month that the interest rate did not change.

Source: https://www.livabl.com/2020/01/canadian-interest-rates-may-drop-april-rbc.html