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You guys are great and thank you for understanding my credit problems and helping me finance my home, most other companies I’ve seen do not offer the level of service as you guys do. I had an excellent home buying experience, and will definitely recommend you to my friends and family.

    -Jeffrey Grove, Hamilton

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Renewing Your Mortgage Print E-mail

Renewing a mortgage? If the answer is yes, please read below, it could save you a lot of money! Did you know that over 70% of mortgage holders renew the bank’s first offer and don’t consider other possible options? This might result in a higher interest rate and a mortgage that is not suited to your specific needs.

Renewal forms are sent one month before your mortgage matures. They do not offer the most competitive rates. The bank’s customary policy is to provide discounts from 0.10%-0.75% for their rates. In order to get a discount, the bank will likely ask to see your personal investment portfolio. We don’t believe that you’re personal investment portfolio should interfere with the discount that you are entitled to received. We believe that your discount should be based on factors such as job stability, credit rating, etc., not on how much money you currently have. We are here to offer you the expertise and resources to help you take advantage of the Canadian mortgage market. We deal with a vast amount of lending institutions. We are committed to finding you the best rates and terms specific to your needs.

We pride ourselves in our excellent service! We help you gather all the information that the lender requires. Our team of experienced professional brokers can also assist you with choosing the right legal representation, residential appraiser, home inspector, and insurance broker. If you have any questions or concerns, please do not hesitate to contact us. Fill out our Application and let us do all the work for you.

Here are a few frequently asked questions:

Why use a mortgage consultant as opposed to a bank?

When dealing with a bank, you’re very limited and you’re likely to choose a product which may not be the best one for you. When dealing with a mortgage consultant, you’re able to choose from a wider range of mortgages designed for your specific needs, and you can benefit from lower rates as well. Mortgage consultants will always be looking out for your best interests and you can always expect nothing but the highest level of service.

Are there any fees for a mortgage consultant?

In most cases, there are no fees. Mortgage consultants receive a commission from the lending institution. If you do not qualify, due to bad credit, job instability, etc., there may be a brokerage fee, but it will be discussed before you sign anything.

Should I wait for my mortgage to mature?

The answer is NO. Let our mortgage consultants shop around at least 120 days before your mortgage matures. We will guarantee you an interest rate as early as 120 days before your maturity date. This means an interest rate promised in advance before your mortgage matures, which eliminates any worries about higher rates.

What is mortgage loan insurance?

IMortgage loan insurance is provided by Canada Mortgage and Housing Corporation (CMHC), an approved private corporation. This insurance is required by law to ensure lenders against defaults on mortgages with a loan to value ration of more than 75%.

What is a conventional mortgage?

This is one where the down payment is equal to 25% or more of the purchase price; a loan to value of less than 75%; and does not normally require mortgage insurance.

What is a high-ratio mortgage?

This is one where the amount to be borrowed is greater than 75% of the purchase price. These generally require a mortgage loan insurance provided by either CMHC or GE Capital. The mortgage loan insurance protects the lender in the event that the mortgage is not repaid. The benefit to the borrower is that they can purchase a home with less than a 25% down payment, to as low as 5%.

Where can I get my down payment?

There are a few options. Registered Retirement Savings Plans (RRSP's) may be used if the down payment is a maximum of $20,000 and is not subject to income tax if repaid within 15 years. Gifts from immediate family, accumulated savings, sales of an existing home, and equity can also be used for down payments.

What is the minimum down payment needed to buy a home?

A minimum down payment of 5% is usually required, but keep in mind that there are exceptions. There are some lenders that will lend you 100% of the purchase price for your home. To qualify for this, your credit must be clean.

How much can I afford to pay for a home?

To determine the amount you can afford, you will need to know your taxable income as well as the amount of any debt and the monthly payments. Calculate 32% of your income for use toward a mortgage payment, property taxes, and heating costs. Then calculate 40% of your taxable income and deduct all of your monthly debt payments. These two numbers will help you determine how much will be used towards house payments.

How does bankruptcy affect my ability to qualify for a mortgage?

Again, this depends on the circumstances. Generally, some lenders will consider providing mortgage financing, while others may not.

 



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