Before you start shopping for a home – and long before you consider putting an offer on one – let me help you determine how much home you can comfortably afford.  With a pre-approved mortgage, you’ll know the mortgage amount you qualify for and how much it will cost you to carry the mortgage.  You’ll also get your interest rate guaranteed for a specific period, typically 90 – 120 days.

If you’re been “saving up” for buying a home then this is a great time to meet with me so we can discuss your down payment options. In most cases, you’ll need five percent of the purchase price (Note: If you have less than a 20% downpayment, you will need mortgage insurance, which is added to your mortgage amount.), but there are other options which include:

Zero-down Mortgage: If you have reasonable income security and good credit but are struggling to save a downpayment, the zero-down mortgage can get you into homeownership much sooner. There are three zero-down mortgage options:

1. Borrowing the down payment through a loan or unsecured line of credit;

2. Through a cash back mortgage that provides the cash upfront for some or all of the downpayment; or

3. If you can get the downpayment money gifted to you by a parent or other blood relative.

I can outline all of the details that you should be aware of with each option.

Under the Home Buyers’ Plan, if you are a first-time buyer, you can tap your RRSP and borrow from yourself tax-free to help with your home purchase. You then pay your RRSP back later. You can withdraw up to $25,000, and if your spouse qualifies as a first-time homebuyer, he or she will also be able to withdraw $25,000. 

For more detailed information on the program, get a copy of Canada Revenue Agency’s booklet RC4135 – Home Buyers’ Plan (HBP).  

Additional costs come with buying a home, so you’ll need to have some extra funds set aside to cover these costs. Generally, you can expect to pay between 1.5% and 4% of the home’s selling price in total closing costs. I will outline all your closing costs so you won’t be caught off guard by these expenses.

While calculating closing costs, consider additional monthly payments such as utility bills, insurance, taxes, and house maintenance. Do your best to get a realistic understanding of those costs and budget that amount in addition to your monthly mortgage payments.

Ok, you are ready to finalize your mortgage. To do that, I will need:

• Agreement of Purchase and Sale
•  MLS Listing
•  Contact information for your lawyer: name, address, phone and fax numbers
•  2 pieces of personal identification for all parties involved
•  Income and employment verification
•   Recent pay stub(s)
•   Letter of employment
•   T4(s)
•   Notice of Assessment(s) if self employed (NOAs)
•  Proof of Down Payment
•  Gift letter with bank statement
•  Void cheque
•  Copy of home insurance policy

An appraisal of the property may also be ordered.

Do you want to create the perfect house that fits your lifestyle? Or does your family need more room to grow? 

When you are ready to sell your home and buy a new one, your first move should be to look into your mortgage options. If you need a bigger mortgage, your options include bringing it with you if it is portable. You can often “blend” your current mortgage rate with the mortgage rate on the additional funds you need.

IN TH EVENT THAT YOU NEED TO BREAK YOUR MORTGAGE: To break your mortgage, your lender typically has the right to charge a penalty based on the greater of three months’ interest or the interest rate differential, which is essentially the difference between your old rate and current rates for your remaining term.

Lenders can calculate interest rate differential differently; you should always get the actual penalty from your lender. If you are in a term longer than five years and you have passed the fifth year, the three-month penalty applies and not the interest rate differential so this may make breaking your mortgage more appealing.

You’ll want to compare your new blend/extend rate with the rate you’d get with a new mortgage. Of course, the exact terms and conditions of your current mortgage need to be examined closely to determine if there are other factors to consider.

It’s worth having me perform a mortgage analysis to determine which option is the most beneficial to you. There is no cost or obligation. I am up-to-date on current rates and all of the mortgage opportunities available – from over 50 lenders – so I can help you with all of your mortgage needs.

If your mortgage renewal is fast approaching then you’ll soon be at an important financial milestone. Now’s a great time to look at the many innovative options and competitive rates. Lenders send out renewal forms just prior to renewal dates to those with good payment histories, without asking any questions! In today’s hectic world, that can be the easiest and best route, but you should ask yourself some questions before you sign on the dotted line. This is an important moment of opportunity to ensure you are getting the best mortgage options at the best rates.

Having multiple lenders compete for your business is a great way to ensure you get the best rate for your needs. I deal with multiple lending institutions, including major banks, credit unions, trusts and other national/regional lenders, as well as private lenders, which means I have significant negotiating power behind get you the best possible mortgage and rate.

Many Canadians are taking advantage of refinancing some of the equity in their mortgage to reduce their credit card debt. Why pay high interest rates on credit card debt when you can add it to your mortgage and pay a much lower interest rate

It is important to understand good debt from bad debt and a well-managed mortgage can help you turn bad debts into good debts. Some of the benefits:

1. Consolidate high interest rate credit cards to one lower rate
2. Save money and increase cash flow
3. Reduce stress knowing that your financial situation is more manageable

If you’d like to have a conversation about refinancing your debt, give me a call today to review your options.

Your home will always likely be your most valuable asset. Why leave equity sitting dormant within the property? Accessing equity for a down payment on an investment property, cottage, or other investment can allow you to build your real estate portfolio and overall wealth.

USE YOUR EQUITY TO…

Is your home needing new wiring, pipes or even new landscaping? Is it time to renovate the kitchen, bathrooms or basements? Or maybe you have finally decided on a swimming pool in the backyard. Regardless of what you want and need, consider using the equity in your home to make the changes you want through an equity take-out. There’s never been a better time to access the equity in your home needed for the renovations and improvements you and your family have been dreaming about.

Regarding mortgages, it doesn’t always pay to be self-employed. Let’s be honest: reducing your taxable income can make it difficult to qualify for a mortgage. We understand business owners because my wife and I are also business owners!

The lenders I have access to offer excellent mortgage options for self-employed Canadians as they understand that self-employed individuals have tax write-offs creating significant reductions in their declared income. So, even if traditional banks turn you down, I will find you the financing you need for you to own your dream home.