self-employed mortgage

5 Mistakes to avoid when getting a Self-Employed Mortgage!

A self-employed mortgage is a loan available to business owners and entrepreneurs and individuals who are working for themselves. These are considered to be mortgages of higher risk as the income of the borrower depends on the business and is not fixed. This is why lenders are a little weary when it comes to giving self-employed mortgages. Here is a list of mistakes to avoid when getting a self-employed mortgage. This can help you ensure that you are approved for the mortgage.

  1. Don’t understate or overstate your income.
    The most common mistake self-employed people make is to either overstate their income to get better loans or understate their income to avoid tax payments. If you have overstated your income, the lender might give you a better offer but you will be left with nothing to cover the costs of the home. Providing adequate income information can get you the right loan.
  2. Don’t avoid credit cards.
    Most individuals seeking a self-employed mortgage assume that not having a credit history or having very little of it will ensure that they do not have a bad credit score. But lenders handing out self-employed mortgages want to know if you are capable of paying off your debts on time. Not having a credit history can work against you.
  3. Don’t focus only on interest rates.
    Interest rates are only a part of the payment in self-employed mortgages. There are legal fees, taxes and even the principal of the mortgage to be considered. Even if the interest rates seem attractive, you must look at the additional, hidden and overall costs involved.
  4. Not considering your options could cost you.
    You may feel that you will not get a better rate than the one your bank, to whom you’ve been a trustworthy client is offering. That is hardly ever the case. There could be rates which could result in a difference of thousands for you and you would be unaware. You must shop around before finalizing.
  5. Don’t forget to hire a mortgage broker.
    The best thing to do when seeking a self-employed mortgage is to hire a broker. If you have bad credit or are unable to understand the procedures, a mortgage broker can make it simple and also give you access to a number of lenders. He can also help you decide the best plan for you.
home equity loan

Benefits Of Home Equity Line Of Credit

A home equity line of credit is a way to borrow money against the equity present in your home. Like any other credit card payments or loan payments, you are required to make monthly payments against the borrowed amount. Some benefits are listed below:

  1. It provides lower rates when compared to other types of credit.
    A home equity line of credit generally provides lower rates when compared to other credit loans as it is an amount you are borrowing against the equity present in your home. The lender has a very low risk involved when it comes to losing and hence he can offer much lower rates.
  2. It is a flexible plan.
    A normal loan allows you to receive a determined sum of money and makes you pay fixed installments every month until the end of your term. But, with a home equity line of credit plan, you can borrow the amount you see fit. It can be a minimal amount or the maximum you are allowed to borrow. The monthly installments are also variable.
  3. Tax advantages.
    With a home equity line of credit, you can claim certain tax advantages. Since it is essentially a mortgage, you are allowed to claim a refund of the interest amount on your tax returns.
  4. Rates can be changed.
    This is a benefit and a disadvantage of the home equity line of credit. When the rates are low, this may seem like a beneficial plan but the rates can increase also and we may end up paying much more than we thought we would have to. Thus, it is better to consider what the purpose of the withdrawal is and if a loan is necessary.
  5. You should consider your finances
    A lot of people are attracted to taking HELOCs because of the low rates. But if you are making the investment in something which cannot replenish itself then you will be left with nothing but debt to pay off.
  6. It is a way to secure easy cash.
    A home equity line of credit can help you secure easy cash. It is a sum borrowed from your home and the value can be easily given to you. This even enables cash payments to be made.
  7. It can be used for anything.
    A home equity line of credit does not have any restrictions on use. It can be used for home improvements or a trip to Hawaii!
Second Mortgage

4 Things to know about Second Mortgages

Second mortgages refer to the mortgage you take out on a home with a pre-existing mortgage plan. Second mortgages are a complicated plan to consider and you should really look at other options before considering them. If you require a low amount or want a simpler plan which doesn’t wreak havoc on your finances, consider other options such as bank loans. Here are the top four things to about second mortgages that can help you decide if they are right for you.

  1. It provides easy access to a large sum of money.
    The top benefit of getting a second mortgage is that you can have quick and easy access to a large sum of money. You would be taking this mortgage against the remaining equity in your property. Second mortgages can cover a higher amount than your initial mortgage. They allow you to access a large amount of the equity lying in your home.
  2. Second mortgages can be taken for a lot of reasons.
    The amount you get from your mortgage can be used for multiple reasons. People take out second mortgages for paying off education loans or credit card loans. It can even be used to fund a renovation or the purchase of a new property. It can even help when you are considering a refinance and do not want to pay the penalty associated with breaking the term. It can be useful to pay off other mortgages. With other plans, you may be limited to the amount of money you are allowed to borrow. But this can help you access a lot of equity and provide you with a large amount of money.
  3. Mortgage lenders are available aplenty.
    There are a lot of places you can borrow money for your mortgage from. Bankers, private lenders and more financial institutions have come up to help you secure a loan which serves your needs. It is best to go through a mortgage broker as so many options could be confusing to someone who isn’t seasoned in these deals. You can avail the best offers with the help of a broker.
  4. The Higher is the norm.
    Such mortgage plans allow you to access more equity in your home and hence are susceptible to higher rates. The mortgage lenders are taking a huge risk as they are willing to be paid second and hence the higher rates.
refinance mortgage

5 Mistakes you can avoid while you do Mortgage Refinance

Mortgage refinance is a process which allows you to refinance your mortgage in a way which could maybe save you a lot of money. It provides a way for you to look at your current financial position and then plan and get a mortgage which is relevant.   There are a few mistakes to avoid when you are planning to do a mortgage refinance and they are:

  1. Ignoring your credit could be harmful.
    Having a good credit score is as important when you do a mortgage refinance as it was when you first bought the mortgage. Don’t let go and not pay your bills. Maintaining a good credit score is crucial to receiving the best rates and terms on your mortgage refinance deal.
  2. Don’t open new credit cards before the process of mortgage refinance.
    You may be getting attractive offers in the mail about how there are a few hundred dollars off on your first purchase and that they are offering you so much in return. You are likely to fall prey to these schemes and buy a few credit cards to avail the benefits. But credit card purchases can affect your credit score by quite a few points and render you under qualified for a mortgage you would have originally qualified for.
  3. Don’t accept the first offer you get.
    Mortgage refinance gives you the opportunity to really reduce the burden of mortgage on you. Look at rates and term plans from various lenders and make sure to compare the prices on the same day. This can ensure that you get the best rates and term plans and you can really afford to pay the mortgage on time and easily.
  4. Don’t forget the interest rates!
    A lot of people make the mistake of factoring in the monthly payment and not the interest rates while doing mortgage refinance. They increase the term plan so that they can have lower monthly expense. But in such cases, the interest rates are so high that you end up paying a lot more than you would if you’d taken a moderate or short term plan.
  5. There could be more costs than you are aware of.
    The first thing to consider before refinance is if there is a penalty involved in early payment of the loan. Consider all the costs and talk to a mortgage broker to avoid being caught off guard.
home buying

Five Tips for First-Time Home Buyers Applying for a Mortgage

Buying your first home can be both exhilarating and terrifying. It’s a bit like riding a roller coaster – there is the thrill of the ride, yet there can also be fear of the unknown. Oftentimes, when first-time homebuyers apply for a mortgage, they are not sure what kind of mortgage to apply for. They may also be uncertain of how they should be managing their own finances during this new phase of their lives.

If you are thinking about purchasing your first home, a mortgage advisor can help you manage some of the ups and downs of this important transaction.

Here are five tips that first-time home buyers should follow when they apply for a mortgage.

  1. Manage your existing debt

Before applying for a mortgage, consider how much debt you already have and what your monthly payments are. A mortgage professional can help you understand how much you will be able to afford in mortgage payments once your current debt payments and other expenses are taken into account.

  1. Consider all homebuying costs

Don’t make the mistake of thinking that you only need a down payment to get into your first home. First-time homebuyers have to consider other expenses as well such as appraisal fees, mortgage insurance, and closing adjustments. By making sure that you are aware of all possible costs, you won’t be caught off guard with unexpected expenses.

  1. Don’t put your finances under too much pressure

Just because you can qualify for a certain mortgage amount, doesn’t mean you have to buy a home worth that full amount. Owning a home has a number of expenses associated with it other than mortgage payments. These include property taxes and maintenance. Giving your finances a little extra breathing room can help you to relax and enjoy your new home all the more.

  1. Explore different types of mortgages

Many first-time home buyers automatically default to applying for a fixed rate mortgage, but this may or may not be the best type of mortgage for you. Your mortgage broker can help you determine the best type of mortgage to fit your needs and your circumstances.

  1. Use a mortgage broker who will shop around for you

Don’t assume that the financial institution that you bank with is your best option for a mortgage. Just like you would shop around for a phone plan to get better rates, it is important to shop around for the best mortgage rates. A small difference in your interest rate could translate into thousands of dollars over the life of your mortgage. Mortgage brokers have access to a large pool of lenders that they can shop around with to get the best rate for you.

Buying your first home is a big step and having a professional mortgage broker to assist you is a great way to make sure that everything goes smoothly. To learn more or book a consultation, call the team at Finser Mortgages at 1-855-534-6737.

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Why Use Mortgage Broker?

There are many reason why use mortgage broker when it comes to getting a mortgage. We have pointed out a few reason here. Access to many different lenders, banks, trust companies, investors and financial institutions. So not limited to Banks. Get Fast mortgage Pre-Approval. We assess your mortgage requirement.

Canadian home ownership inches further out of reach

Rising house prices made home-ownership slightly less affordable in Canada during the second quarter of this year, when buyers returned to the market after a lengthy slump.

Royal Bank of Canada’s housing affordability index, which looks at the proportion of household income required to keep up with the cost of owning a home, rose by 0.3 percentage points to 42.7 per cent for detached bungalows, and by 0.4 percentage points to 48.4 per cent for two-storey homes, according to a report to be released Tuesday.

Posted by The Globe and Mail dated August 27, 2013 http://www.theglobeandmail.com/report-on-business/economy/housing/canadian-home-ownership-less-affordable-report-finds/article13959274/

Bank of Canada Publishes 2014 Schedule for Policy Interest Rate Announcements and Monetary Policy Report Releases

Ottawa –
The Bank of Canada today published its 2014 schedule of key policy interest rate announcements and quarterly Monetary Policy Report (MPR) releases, and re-confirmed the scheduled announcement dates for the remainder of this year.

The scheduled announcement dates from September 2013 through December 2013 are re-confirmed as:
•Wednesday, 4 September 2013
•Wednesday, 23 October 2013*
•Wednesday, 4 December 2013

The scheduled announcement dates for 2014 are:
•Wednesday, January 22*
•Wednesday, March 5
•Wednesday, April 16*
•Wednesday, June 4
•Wednesday, July 16*
•Wednesday, September 3
•Wednesday, October 22*
•Wednesday, December 3
Posted by Bank of Canada on July 23, 2013 http://www.bankofcanada.ca/2013/07/publications/press-releases/bofc-publishes-2014-schedule-fad-and-mpr-releases/

Bank of Canada maintains overnight rate target at 1 per cent

Ottawa –
The Bank of Canada today announced that it is maintaining its target for the overnight rate at 1 per cent. The Bank Rate is correspondingly 1 1/4 per cent and the deposit rate is 3/4 per cent.

Global economic growth remains modest, although the pace of economic activity varies significantly across the major economies. The U.S. economic expansion is proceeding at a moderate pace, with the continued strengthening in private demand being partly offset by the impact of fiscal consolidation. In Japan, fiscal and monetary policy stimulus is contributing to a rapid recovery in economic growth. In contrast, economic activity in the euro area remains weak. While stronger than in the advanced economies, real GDP growth in China and other emerging market economies has slowed, exerting downward pressure on global commodity prices and, as a consequence, the Bank has downgraded slightly its global growth forecast. The global economy is still expected to pick up in 2014 and 2015.

Posted by Bank of Canada on July 17, 2013 http://www.bankofcanada.ca/2013/07/publications/press-releases/fad-press-release-2013-07-17/