Barrie, Ontario Mortgage Services
- Purchasing a Home
Purchasing a home is a great investment, and likely the largest investment you will make in your lifetime. If you are new to the home buying process, or a looking to add to your real estate portfolio, contacting a Mortgage Broker is the best way to start. We will walk you through the process and explain what you need for credit, down payment and closing costs. The mortgage rules are constantly changing, and it’s our job to stay on top of them to advise you what you can qualify for.
Did you know! You can purchase a home that needs some cosmetic updates under a purchase plus improvement program. Eg. If the kitchen is outdated, you can roll the cost of the new kitchen into your mortgage. Ask me how!
- Marital or Common Law Separation – Dividing your Asset
Ending a committed relationship is never easy, and is an extremely emotional process. If you own a home with a significant other, and you have decided to separate and divide assets it is very important to get the right advice at the beginning of the process. There are options available to spouses buying out the other half when there is limited equity available. Call me to set up your plan and help yourself reduce one major stress during this difficult time. Knowing your options is the best first step!
- Renewals/Loan Transfers/Switches
CAUTION!! –Before you just accept your existing mortgage lenders renewal offer, shop around. This is likely your largest monthly payment, let us shop your business around and see if we can save you money! Think of how much you make in a two week period working daily, what if you could save that or more just by making a call?
Here are some things to consider when renewing your mortgage:
- Don’t wait. Start looking four to six months before you are up for renewal, this way you can secure lower rates in advance and should they fall more before you are up for renewal you can take advantage of the lower rate. Should they rise by the time you are up for renewal, then you are protected in a rate hold. Most new lenders will cover the fees to switch or transfer you over to them if you are not in a collateralized mortgage.
- Don’t just take what they offer. Don’t assume they are giving you the best rate because you are a valuable client. Check what’s out there and negotiate. Never accept the posted rate!
- Call a mortgage broker. Let us understand your situation and see if there is another option that will be better for you. If we think you should stay with your current lender, we will tell you that too. Remember, there is no cost or obligation to have us take a look at your renewal and see if we can help you get a better mortgage.
- Take advantage of Switch/Transfer Promotions. Lenders are keen for your business, let us shop you and get a better rate by taking advantage of special promotions to move your mortgage to another lender.
Refinancing your home means to pull equity out of your home to increase your mortgage amount, taking cash out for personal use. Typically you’ve owned your home for a while and have paid down the mortgage while your property value has increase. We can refinance up to 80% of the value of your home, which would be determined by an appraisal.
Reasons to refinance: -
To consolidate high interest credit card debt or other debt
- To do a renovation to your home
- To make an investment
- To gain access to your equity before retirement when your income is reduced
- To lower your own monthly payment by getting a lower interest rate
- To set up a HELOC (Home equity line of credit) that you can access when you need it and eliminate the need to requalify in the future to access your own equity.
- Separation/Divorce, paying out your ex spouse, paying off joint debt.
Before you refinance, speak to a mortgage broker about how you can minimize penalties by reducing your mortgage amount through prepayment features on your existing mortgage.
- Private First/Second Mortgages
Private First or Second mortgages are used when you own a home and have bruised credit, difficulty proving your income and have run into difficulty paying your bills and you need to consolidate your debt to get creditors off your back, pay tax arrears or put your first mortgage back in good standing.
If you are in a position where you are considering consumer proposal or bankruptcy, and you have equity in your home, call us today and we can help you make the right choice and help you get back on track.
How does a private second mortgage work?
A second mortgage is essentially the same as a first mortgage, however it is placed in second position behind the first mortgage. What that means is, if there is a problem in payment and the home is sold, the first mortgagee is paid from the proceeds first, then the second mortgagee with what is remaining. Should there be enough equity remaining after that, the owner would receive the remainder. Second mortgages are more risky because of this and therefore have higher interest rates to offset the risk.
Second mortgages are registered on title on the property behind the first mortgage holder. Payments are typically made as interest only payments and typically last for one year. This can be longer or shorter depending on the situation and the willingness of the lender.
How much does it cost to get a private mortgage?
The cost is dependent on the size of the mortgage, you can expect to pay a fee to the lender, mortgage broker, appraiser and lawyer. It is extremely important to understand the costs of borrowing for a private mortgage as not all brokerages are reasonable with their fees.
If you are considering a private first or second mortgage, please ensure you pay close attention to the fees set out in the commitment should there ever be a default in payment. Our goal is to help you get out of your financial difficulties and back to where you where before. We will create a plan with you and follow up to help keep you on track.
- Self Employed
Unfortunately when you are self employed often your declared income isn’t indicative of what you actually make in a year, and this can cause difficulties qualify for a mortgage.
If you are self employed and make large deposits to your bank account but your notice of assessment shows lower income after all your business expenses, speak to us about the stated income program, and alternative lending solutions. We have options not available to the major banks.
- Multi-Unit Residential (5+ Units) Commercial Lending
process for purchasing these types of properties is much more comprehensive and differs from standard residential financing. Documents are required up front, and the property is qualified based on a cap rate set by the lender or insurer. If you are looking to build your investment portfolio with a multi-unit building, call me to discuss the process, to avoid potentially losing out on an offer.
Interested in building your dream home, but not sure how to start with financing? Contact a mortgage broker with construction financing experience and let us explain the process! In order to build, you need to have funds available to get yourself started. Once you are able to get to a certain stage, we can offer both conventional or private financing to complete the project, depending on your qualifying strength during the process. Don’t buy land to build before you’ve discussed financing for the project and know what your options are.
- Construction Financing
Looking to build your real estate portfolio? There are many things to consider when you decide to buy real estate as investment properties with the intention to rent out. As an investor myself, I can discuss a plan to get started, and help you to understand the challenges and rewards of being an investor. It is important that you begin your investment purchasing properly to allow you to maximum financial borrowing opportunities in the future. Contact me today to discuss your options.
- Investment Properties
If you have gone through some changes in your life and it has impacted your credit is now preventing you from borrowing from the banks, call me to discuss your options. We have access to many different B lenders, which will allow individuals with bruised credit to obtain a mortgage. As a Broker, I have access to a variety of borrowing solutions with reasonable rates to help get you back on track.
- Credit Challenged Mortgages