Tuesday, October 26, 2010

Home Equity Line of Credit Approvals, Even For the Credit Challenged?

Consumers who are looking to finance big ticket purchases, debt consolidations, finance home improvements etc… will often turn to their homes to find the money.

There are many reasons why and it makes good sense to do so. Home Equity loans offer low monthly payments, less interest in comparison to most credit cards and more flexibility.

Even consumers who have had bruised credit in the past can obtain Home Equity financing, but they will be required to have more equity in their home as opposed to those who have less equity in their home.

One of the most flexible Home Equity Loan products is a Home Equity Line of Credit. If you are approved for a Home Equity Line of Credit you will be issued a Visa or Master Card and credit limit. The beauty of a Home Equity Line of Credit is that you are given a limit which you can use to pay down the line of credit. If you use the line of credit and then pay it off, in the future if you require funds you won’t have to refinance again.

Home Equity lines of credit often have smaller monthly payments than conventional second mortgages and most will calculate your minimum monthly payment based on your balance (1%-2% of your monthly payment).

Home Equity lines of credit are cheaper and faster to arrange than conventional second mortgages. Most home equity line of credit lenders, use title insurance, rather than a lawyer on closing.

If you are considering refinancing your home to obtain capital, you most likely have many options. Take into consideration the amount of money you need, your financial goals, how soon can you realistically pay off the debt, your personal and financial circumstances and how much equity you have in your home when choosing the right credit product.

For more information visit http://www.gtamortgagematters.com.

Tuesday, October 19, 2010

How to Find a Mississauga Mortgage Broker

If you have made the decision to purchase a home in Mississauga or refinance your mortgage, you may be shopping around for a mortgage.

The best way to shop around for a mortgage in Mississauga is to deal with a Mississauga mortgage broker. Mortgage brokers have access to all types of lenders that deal with all different types of consumers. A Mississauga mortgage broker will have access to the big banks but also will have access to local lenders in Mississauga.

It’s important that you don’t run around applying all over the place for a mortgage and do research to ensure that you chose the right mortgage broker who has your best interests at heart. Here are some tips you can use to identify if you are dealing with a legitimate mortgage broker in Mississauga.

1. Do they have an office?

2. Ask them what types of financial institutions that they deal with to get an idea how credible they are. Big banks will only deal with credible and legitimate brokers.

3. Do they have access to lots of lenders in Mississauga? If for some reason you weren’t approved by the bank, it is important that the broker has secondary lenders so that you don’t make an offer on a home to later learn that you don’t have a mortgage.

4. Are they licensed? All mortgage brokers and mortgage agents must be licensed in the province of Ontario. You can confirm if a mortgage brokerage or mortgage agent in Ontario is licensed at the FSCO website.

5. Client testimonials – do they have any?

If you have found a good mortgage broker in Mississauga, now it’s time to find the right mortgage. Ask lots of questions and review your options. Make sure you choose a mortgage that considers your long term financial goals. A good mortgage broker should be able to provide you with lots of information and many options.

For more information about finding a mortgage broker in Mississauga visit www.gtamortgagematters.com.

Tuesday, October 12, 2010

What is High Ratio Insurance, a Mississauga Homeowner Inquired.

We recently received an email from a first time homebuyer in Mississauga that wanted to know what high ratio insurance is. This is a question that comes up from time to time and many first time homebuyers don’t realize that you need high ratio insurance in order to finance a home purchase in Canada with less than 20% down payment.

To qualify for a mortgage with your bank you will first have to qualify for high ratio insurance with the Canadian Mortgage and Housing Corporation (CMHC)

When you want to buy a house, getting a mortgage loan through a local Mortgage Broker is the way that most people should choose. If you lived in Mississauga you should look for a mortgage broker in Mississauga.

High ratio insurance is required by Canadian financial institutions because it protects them in the event you default on your mortgage payments, if there is a deficiency in the sale of the property. This insurance is not like all other types of insurance due to the fact that a premium payment is paid once upfront and can be added to the mortgage.

High ratio insurance premiums can vary somewhere between 0.25% to 3.75%. The amount you pay will depend on the amount of the mortgage required and the amount of down payment you have.

One important thing to remember is that the larger down payment you can make the less you will pay in upfront insurance premiums. If you can make a 20% down payment then this will mean you will not require high ratio mortgage insurance.

Most of the times when you purchase a home the down payment that will be needed for you to get into your new home will depend on your credit. If you have really good rating then it is possible for you to purchase a home in Mississauga with only a 5% down payment; the weaker the credit the higher the down payment required which will shrink the risk that the mortgage insurer will have on your mortgage.

So always ensure that you pay your bills on time to be sure you have good credit or expect to pay the higher down payment and insurance costs every month.

One last thing that is essential to know is that this insurance can be paid upfront or added to the mortgage. If you choose to add it to the mortgage the actual cost of that insurance rises substantially as that amount is now amortized over 25 years plus and interest is paid on that amount.

For more information about high ratio insurance visit www.gtamortgagematters.com.

Wednesday, October 6, 2010

Commercial Mortgage Rates In Toronto for your Business

A commercial loan is a title given to express differentiation from loans not usually maintained by real estate or consumer loan departments. These types of loans may be secured or unsecured, and have long or short term maturities. A commercial mortgage can include working capital advances, term business loans, agricultural credits, and loans to individuals for business purposes.


Commercial loans differ from residential loans in that the collateral for the mortgage is a commercial building or other business real estate, not a residential property. When the buyer is taken into consideration for a commercial loan, the process is more involved than that of an application for a home mortgage. The credit history of the business and its owners are evaluated along with the aspects of the overall business record. The commercial mortgage rates are usually higher as well.

Commercial mortgage rates can be fixed or variable. The fixed rate mortgage is a mortgage type where the interest on the loan remains constant throughout the payment term. When commercial mortgage rates are variable, they have the ability to change with the economy. These commercial mortgage rates may also vary due to several different factors. These factors include the length of the loan, the location of the property, and the risk level of your business.

Lenders typically base commercial mortgage rates on the prime rate. The prime rate is the rate offered by the lender to larger corporations. When the borrower qualifies for high rates, this can put a burden on the overall success of repayment. Refinancing with a different lender at a later date will aid in acquiring lower commercial mortgage rates.

When acquiring a commercial mortgage, typically there is a large down payment of 25% - 35% of the purchase price. However, the payment then becomes equity in the property. Depositing less than 25% on the down payment will considerably increase the interest rate. To achieve the lowest possible commercial mortgage rates, the borrower should put the largest amount possible down.

Commercial mortgage rates, for any type of business loan, should always be negotiated with the lender. Since payment on the property is likely to continue over a period of several years or more, negotiating to receive the lowest possible rates will help the mortgage holder to meet their monthly payments. More affordable payments help the borrower pay the loan off at a more efficient rate, saving the borrower time and money. A mortgage broker can help negotiate the lowest possible interest rates.

Tuesday, October 5, 2010

Obtaining The Lowest Mortgage Rates in Toronto

Experts say that mortgage rates are on the rise. To get the lowest mortgage rates, home buyers need to act now. Interest rates and estate values do change regularly, however experts believe that rates will continue to rise over the next few years. Rising rates are a normal part of an improving economy. To obtain the lowest mortgage rates possible acting at the proper time is essential.


Having a Toronto mortgage broker on your side to aid you in this process can greatly improve your chances of obtaining the lowest mortgage rates. Toronto Mortgage brokers are trained to recognize trends and cyclic periods in the economy. Working with a mortgage broker enables the buyer to have an advantage over an untrained buyer acting alone, especially when choosing the most advantageous time to purchase a home.

Choosing a competent investor is imperative in finding the lowest mortgage rates. A good investor never acts on a whim, but otherwise uses the trend cycles for preparation in detecting the lowest mortgage rates. Timing the market and making a prediction on when to obtain the lowest mortgage rates, is rarely a good strategy. Smart investors make an informed decision based on the information they have right now. Acting on an assumption alone is very risky because interest rates could fall rapidly without warning, and real estate values could unexpectedly rise making for a very unattractive market.

Real estate values are based on supply and demand. Recently, due to the pressures of recession, real estate purchases have decreased. As the economy improves, demand will rise and supply will fall, thus creating better value. It may be a few years before we see this change occur. Therefore buying now, before the rates rise, will help in apprehending the lowest Toronto mortgage rates.

Owning a home offers many advantages over renting. Owning a home is a very valuable and changeable asset. The home owner can modify the home or its property to increase the value, and it is a security that can be used as leverage in times of financial need. When compared with renting, owning a home is a much more practical and sensible investment. Instead of paying a landlord to make use of their investment, obtaining a mortgage is a way to move towards ownership of that valuable asset. Owning a home is simply a better investment and purchasing a home now is ideal for acquiring the lowest mortgage rates.

Paul Mangion
http://www.gtamortgagematters.com/

How to Get Out of Debt in Mississauga

While we work with consumers all over the G-T-A we are located in Mississauga and have made it a personal mission to help people in Mississauga get out of debt.

If you are in debt you are probably growing tired of paying high credit card interest or worse, figuring out how you are going to make the monthly payments on your mounting debt load.

Those who have maintained at least their minimum monthly payments to credit, have likely kept their credit reports intact and so will have more options than those who have started making late payments to creditors.

That said those who manage to scrape by making their monthly payments to their large debt loads, may eventually reach a breaking point. What can you do to get out of debt?

If you want to get out of debt in Mississauga and own a home in Mississauga (or anywhere else in the G-T-A), you may be able to refinance your home and either take out a new first mortgage or personal line of credit to pay off all of your debt. A Mississauga mortgage brokerage helps families in Mississauga get out of debt. A new mortgage will save you interest and reduce your monthly payments, increasing cash flow.

What if you don’t own your home? Well now it’s time to look at how much debt you have accumulated. There are other options to get out of debt in Mississauga that include personal lines of credit, making a repayment and settlement proposals to your creditors and more…

Banks preference clients who have lots of income, savings, assets and investments so approaching a bank for a debt consolidation can be a humbling experience. If you are not approved your banker is not going to be qualified to tell you what to do next.

What’s important is that you work with a company who works with all types of credit and income. GTA Mortgage matters helps Mississauga families get out of debt; offering mortgages and other financial solutions for those who don’t own their homes. For more information visit www.gtamortgagematters.com.