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.


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.

first time home buyer mortgage,

Six steps to get a Perfect First time home buyer Mortgage.

A first time home buyer mortgage is the mortgage a first time home buyer takes to purchase the home of their dreams. These kind of borrowers seem incredibly attractive to lenders as they are less risky than other borrowers. They do not have many loans and are not drowning in debt. There are quite some rewards to getting a mortgage as a first time home buyer. Here we have listed 6steps to the best and the quickest first time home buyer mortgage for yourself:

First time home buyer mortgage


Steps to Get a First time home buyer Mortgage:

1. Hire a broker:

Yes, this is the first tip for a first time home buyer looking for a mortgage. Even though most people consider a mortgage broker an expense, what they fail to realize is that they could help you save a lot of your hard-earned dollars with the help of exclusive schemes and expertise. They have been in the field for quite a while and will also have dealt with plenty of mortgage borrowers who are first time home buyers. So, it would only work in your favor to hire a mortgage broker.

2. Get pre-approved:

Pre-approval has almost become synonymous with the first time home buyer mortgage process. Pre-approval refers to the process of finding out how much you can afford. It involves receiving an approximate figure which is quite close to the finances you would be receiving in the form of a mortgage as a first time home buyer. This helps you to make decisions with a budget in mind thereby preventing you from any disappointments. It also helps you look profoundly serious when you talk to a seller. It could give you the competitive edge you are looking for with the seller.

3. Go house hunting early:

With a mortgage pre-approval in hand, you can now finish your house hunting process with vigor. Start searching for houses and you will find many listing to suit your first time home buyer needs. This is probably the most exciting part of the entire process. The earlier you start, the faster you would be able to complete the process. It will also allow time for scouring other neighborhoods which were not initially on your list. All of this with the guarantee of a fixed amount in payment could make the process a lot quicker than you would imagine.

4. Choose your mortgage:

After the process of home hunting is over, the duties of the first time buyer will kick in. In this step, you need to sit down with your mortgage broker and find the right plan which will fulfill all your requirements. Since you have a pre-approval in hand already, mortgage brokers will use it as a base to give you the mortgage. Negotiate it down to a reasonable rate and choose the perfect mortgage for yourself.

5. Talk about the costs involved:

The payment for the home will not be the only cost you incur for your mortgage as a first-time buyer. There could be a lot of costs involved which you may be unaware of. Make sure you are made well aware of the costs, hidden or visible. As a result, this can help you find out if your mortgage lender is duping you or not. Mortgage brokers can help you see through the red flags in the documents and assist you in finalizing the perfect mortgage for your needs. It is also advisable to keep a small portion of your mortgage amount separately for such hidden costs so that you are not surprised when they do show up.

6. Save early for your down payment:

The down payment is a very integral step to getting your mortgage. Depending on your financial status, credit score and income, you would be assigned to pay a certain amount as down payment for your first time home buyer mortgage. This down payment needs to be saved Certainly for and then paid off promptly to ensure a quick and comfortable process for the first time home buyer mortgage process. After all the processes have been completed to the dot, it is time to sign on the dotted line and claim your mortgage. You can then take custody of your home and have a happy stay there.

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Mortgage Renewal

The process of Mortgage renewal

Mortgage renewal is a very simple process when compared to other types of mortgages and their terms and conditions. But this does not, in any way, mean that we shouldn’t put as much effort as we did while acquiring the mortgage in the first place. The mortgage renewal process starts once your term has ended. But, mortgage experts say that the process for mortgage renewal actually starts at least four months in advance.


Mortgage renewal process


These are the Four steps involved in the Mortgage Renewal process:

Step 1: Understand your needs:

At that particular point in time, what are you looking to get out of your life in the next five years? This is a very important question as it can help you determine what kind of rates and schemes you are looking for. If you are planning to go for a big investment in the future such as your child’s education, then you need to go for lower rates. But if you have gotten a raise, you can opt for higher rates in your mortgage renewal contract.

Step 2: It’s time to shop!

Most of us would have our date of maturity for the mortgage marked on our calendar. We just need to start shopping for rates four months in advance of this date. The shopping process begins with you contacting a mortgage broker. You can consult with them and decide what rates would be the best for you and from whom you can get them. The broker will work to get you a good deal for your mortgage renewal.

Step 3: Compare and decide:

After you have shopped around and have gained enough knowledge, you need to compare all the rates you have seen and decide on the mortgage renewal plan. The lowest rates are sometimes not the best. Consider all the factors of cost and time. The penalties and other terms also need to be understood. Take your time to decide. If you start shopping early, you can make a well-informed decision in the last 30 days before maturity.

Step 4: Sign on the dotted line:

After you have decided on the mortgage renewal plan, all you have to do is a sign. Take the contract from your lender and sit with a mortgage broker to understand if it has been done according to your plan. Consulting a lawyer isn’t a bad idea either. If everything seems fine, go ahead and sign.

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Debt Consolidation

The Benefits of Debt consolidation:

Debt consolidation is simply the combining of all your debt into one debt. This is cleared off with monthly payments at low-interest rates. It is an automatic payment and can help you recover your financial status with ease. It also helps you to bring back a stability to your finances. But why should you know the benefits of debt consolidation? You’re already paying money to different people at varying interest rates, regularly. Here are the top five benefits which can help you decide if taking a good debt consolidation plan from one of the best brokers such as Finser Mortgages can help you.

Debt consolidation

The top five benefits of taking a good debt consolidation plan from one of the best brokers such as Finser Mortgages:

  1. Lower rates: The first reason to consider this option for your debt, be it a credit card or other accumulated debt from mortgages, you can consolidate all your debt for much lower rates than you had initially. This can help you save a lot on your payments. It can turn out to be a prosperous decision for you.
  2. Single payment: If you are tired of paying multiple lenders, at various times, with different rates and interests then debt consolidation is the right step for you. In this method, you need to make only a single payment to the lender, every month for the stipulated period of time. This is an automatic payment and is extremely easy and quick.
  3. Bad credit: If your finances are about to go down the drain or are affecting your credit score, you can opt for a service which lets you consolidate your debt. This method can help you even out your finances and make sure that you are improving your credit score as you pay off your debt with ease.
  4. Faster clearance: Debt consolidation can help you gain enough money to make an investment of the right kind. Since your monthly payments make your payment easier, you can have a good amount in hand while you are shaping up your credit score. It is like having a smart move in your back pocket. Since there is one payment, you can clear your debts quickly.
  5. Savings: Debt consolidation can help you reduce the amount you are paying as installment and interest. Low rates can help you survive with ease. Debt consolidation is usually a great idea as it can really promote the savings plan of various citizens. It can really lower the amount you are spending on clearing your debts.

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home buying

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.

Private Mortgage

Self-employed individuals, persons who are new to Canada and other people with bad or bruised credit history may not be able to avail a traditional mortgage. It is better for them to go for a private mortgage. Even people who fit the criteria for a traditional mortgage opt for a private mortgage because they get better rates and are quicker with the processing. But what are private mortgages? Nothing but mortgages from private lenders. Here is a summarization of why considering a private mortgage is better than waiting till you are eligible for a traditional one;

  • Less documents are required.
    In many instances, self-employed individuals have been denied a traditional loan because they could not confirm their income on paper. Similarly, citizens who are new to Canada do not have a credit history and this makes them seem risky to lenders. But in such a mortgage, the need for less documents provides for a wider eligibility range for individuals.
  • Flexible with credit history.
    Most private lenders understand that you are looking towards them mainly because you have less credit history or a bad one. This means that they are way more flexible than the traditional lenders. If you have enough equity in your property or can make a significant down payment, then your credit history is of no consequence. This can really help self-employed people get the loan they want.
  • The value of the property is considered not your finances.
    Private lenders provide private mortgages based on the value of the property you are buying or taking the mortgage against. If the property has good equity, it seems like a lesser risk to lenders and hence they can offer good rates and make good deals.
  • Fast financing.
    One of the perks of getting a private mortgage is the speed. Since there is much less documentation involved and the rates are more favorable, the process moves along much faster. Mortgage brokers are able to find the best rates quickly and can help you customize the best rates and terms into your scheme.
  • Private mortgage brokers can get better deals.
    Since private lenders have higher risk tolerance than the banks, they are able to give you low rate deals and be flexible with the customization of the plan. This can make it more favorable for you as the private mortgage broker will be working according to your finances.


Commercial Mortgage

A commercial mortgage is a common term among business professionals and you may have heard of it as a source to fund your business suggested by your colleagues or other experts. But what is it really? Are you eligible for it? If so, how can you get it? We answer all these questions below.

What is a commercial mortgage?

Commercial mortgages are loans and funds utilized to finance a commercial property. This means that if you are looking to buy an estate or a building for your business, then a commercial mortgage can help finance that for you. These loans are available from lenders who can be private or part of a financial institution or a bank. Mortgage brokers can help you find good rates for your commercial mortgage.

Who is eligible for a commercial mortgage?

Business owners, investors and other business professionals with a business idea which is credible enough to be financed by a lender can avail a commercial mortgage. These mortgages are little riskier than general mortgages and hence lenders have deeper checks.

What are the requirements for getting a commercial mortgage?

There quite a few requirements that need to be fulfilled by someone looking to get a commercial mortgage. First and foremost, anyone looking to get this mortgage must have a good credit score. They should be able to repay the loan in a timely manner. Since more risk is involved this is a very important factor. The debt service ratio is also considered to be integral since if you have too much loan already assigned to your name, it is inadvisable to take such a loan on. You should have finances for a down payment which is larger than that of normal mortgages. But most importantly, you should have a good business idea to convince the lender to invest in you.

How can a mortgage broker help you?

A mortgage broker has the experience required to guide you through the entire process while making sure that you are working according to the schedule you had planned out. Mortgage brokers can even give you tips on how to make your business presentation attractive to the lender. They can help you meet better lenders and offer you the benefits of better rates. Since they are experienced in the field they can help you move along the process of getting the mortgage at a faster pace than would normally be possible.

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

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!