Taking Advantages Of Private Mortgages

TAKING ADVANTAGE OF PRIVATE MORTGAGE – THE BASICS

Private mortgages are usually a short-term solution for borrowers looking to get a quick solution to their financial problems without much hassle. Private mortgages are the loans which are taken from lenders who are not a part of a bank or a financial institution. They are individuals offering private mortgages Oakville from their own funds. These kinds of mortgages have the stigma of “bad” attached to it. This is a misconception as private mortgages can actually be really helpful and are done strictly by following the guidelines provided by the government of Canada.

Private mortgage

 

When do you go for private mortgages?

Most Canadian borrowers usually opt for a private mortgage when getting a traditional loan is out of the question. This could include people who have a bad credit score or low income. Even self-employed individuals who show less income on their taxes tend to opt for the easy solutions of private mortgages. This, however, does not mean that you can get a private mortgage only when you have to and cannot qualify for a traditional loan. You can take advantage of private mortgages when and how you see fit. It all depends on your financial goals.

Taking advantage of private mortgages:

When you are looking for a quick and easy fix for your financial problems, private mortgages can pretty much act as your saviour. The advantage with these kinds of loans is that the lender is looking at your collateral more than you. So, if your collateral is good enough, you can get a great loan you could never qualify for with a traditional process! Planning ahead with a broker can help you make sure that you get a great deal for the right collateral.

The second way to take advantage is with the flexibility. These kinds of loans allow us to determine most of the terms. The lender would not be considering our financial history or credit score and other government proofs of income as much as he would be considering the value of the collateral and its location. If you have a mediocre home in a great place which has a high selling value, then you can take your pick of the loan you want. The rates for such a loan will be dependent on your collateral as well. This would mean, the better your collateral the better the deal you are eligible for Private Mortgages.

Most lenders, if they find your collateral worthy of it, will even offer you some slack on non-payment of the amount on the scheduled date. This can allow you to really plan your finances and pay off the loan quickly. The term period for these loans is very less and you can take advantage of the fact that you will be free of debt soon and be the owner of the collateral. A broker can help you decide between lenders as well as ensure that you are getting the right price for your collateral. Brokers usually can also get you exclusive deals as an added benefit for Private mortgages.

 

for more details visit: http://finser.ca/private-mortgages/

 

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!

“The Bank now expects the economy to reach full capacity in the second half of 2014, later than anticipated in October,” Carney said

Bank of Canada Governor Mark Carney held the key overnight interest rate steady at 1 per cent on Wednesday, and lowered growth expectations for 2013 citing global and domestic economic challenges.
Carney said Canada’s economy experienced more of a slowdown than expected in the second half of 2012, and going forward “economic activity is expected to be more restrained.”
“The Bank now expects the economy to reach full capacity in the second half of 2014, later than anticipated in October,” Carney said, reading from the bank’s quarterly Monetary Policy Report.

Read more: http://www.ctvnews.ca/canada/bank-of-canada-holds-key-lending-rate-at-1-per-cent-1.1125728#ixzz2IpLOjghd

New stricter mortgage rules come into effect today-New amortization period reduced to 25 years

New rules Ottawa announced last month that will tighten Canada’s mortgage industry go into effect today, but a major Canadian bank says many people are unaware of what exactly is changing.

In June, Finance Minister Jim Flaherty unveiled major changes to the limits of what the Canada Mortgage and Housing Corporation is allowed to insure, effectively tapping the brakes on a housing industry that many experts worry has become too hot.

Starting Monday, lenders can only issue home equity loans up to a maximum of 80 per cent of a property’s value — down from 85 per cent. And anyone wanting to buy a home worth more than $1 million, for instance, must now have a downpayment of at least $200,000.

But the biggest change of all is the shortening of the maximum amortization period to 25 years from 30 years — forcing borrowers to pay back their debts sooner. That will reduce the amount of interest they’ll pay over the life of the loan, but make mortgage payments larger as more debt gets paid back with each payment.

http://www.cbc.ca/news/business/story/2012/07/09/bmo-mortgage-housing.html