Posts

Steps to Renew your Mortgage

,
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.

/by

How to Payoff Mortgage Faster

,

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.

Read more
/by

Tips for Planning and Managing Your 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.

Read more
/by

How to get a Mortgage?

,
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.

Read more
/by

CMHC new changes to Mortgage Insurance

,

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.

Read more
/by

Get your Mortgage Today with Low Interest Rates!

, ,

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!

/by

Why use a Mississauga Mortgage Broker?

,
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!

/by

Bank of Canada Interest Rate Announcement

,
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/

/by

Coronavirus fears help push down Mortgage Rates

,

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

/by

6 STEPS FOR A PERFECT FIRST TIME HOME BUYER MORTGAGE

, ,
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.

call Finser mortgage for more details or you could visit: https://finser.ca/first-time-home-buyer/

check out our another bog to get a clear idea: https://finser.ca/tips-for-first-time-home-buyers/

/by