When people buy a home they pay more attention to their mortgage. It is going to be a new monthly payment and there is lots of options to consider.... 5 years later you typically get a letter in the mail saying here is what we are going to offer you to continue with your existing mortgage for the next 5 years. It usually has a check box that you select and send back to say you are compliant with this idea. Is this what is best for your pocket book? Sometimes yes & someti

The lowest rate is not always the best product for you In the world of mortgages everyone cares about the rates. That seems to be all people talk about. There is a lot more to it for us professionals but the average consumer is brainwashed to care only about the rate, often diverting focus from important options like prepayment privileges and details about fees. 2.36% vs. 2.46% vs 2.56% Here are the actual payment numbers. A $400, 000 mortgage with a 25 year amortization

What the Prepayment Privileges Ratio Actually Means When you sign paperwork for your mortgage the prepayment privileges will be part of that mortgage. They are usually stated as 15/15, some lenders have products that are 20/20. Sounds like vision right? wrong. The first number is the % by which you can increase your regular payments. The second number is the % of your original mortgage that you can apply lump sum payments each year. Here is an example with actual numbers

Want to know how to save money at mortgage renewal time? Get your mortgage renewal letter and offer from your lender. Send this letter to us and ask if this is the best deal. As your mortgage brokers we will look at what you have been offered and let you know what other options are available in the marketplace. After an assessment of the market we will let you know if you should sign at your current lender or if you can save money by moving somewhere else. Sometimes the

Any purchaser with less than a 20% down payment is required to obtain insurance to protect the lender. Any purchaser with less than a 20% down payment is required to obtain insurance to protect the lender. The insurers are CMHC, Genworth and Canada Guaruntee. Your mortgage broker arranges this for you and usually the insurance premiums are included in the mortgage amount. The bad news is that you have to pay an extra insurance premium. The good news is that this type of

When a new home buyer is looking at a home they likely find a few things that they want to fix or renovate. A purchase plus improvements mortgage can help them do that. This is a mortgage where the lender will loan the money to make that happen. This program is applicable to a principle residence purchase up to 95% loan to value for a new or existing property. The interest rate you secure is not affected by using this program. What can you use this product for? Improveme

With many of our clients in the GTA looking a condominiums and especially pre-build condominiums there are some things that you should know about these specialized types of properties. Size of Unit - Anything under 500 sq feet is an exception for lenders. If it's downtown we can get the floor plan and sometimes get an exception but typically even that would be for 450 at the smallest & it would be a special request Status Certificate - Mortgages for condo units are based on

OSFI announced new mortgage rule changes this week that will be effective January 1, 2018. We have been asked every day since how this will actually effect our clients. Basically now the stress-test that was previously only applicable to high ratio (less than 20% down) mortgages will now be applicable to people with more than 20% down. The stress test requires us to prove that the client qualifies at the higher of either the bank of Canada’s 5-year posted mortgage rate (cu

We have had a few clients inquire about stated income mortgages if they are self employed. The number one question: Can I tell the lender what income I make and they just accept it? Short answer - no. Longer answer - A stated income program looks to prove a self employed person's income in a different way than a standard mortgage. For a standard mortgage, the applicant proves their income by providing a combination of T4s, paystubs or a letter of employment, as requested by