There have been a number of changes to the way financial institutions are lending money in Ontario. As recently as 5 years ago, there were a number of financial mortgage options for individuals with bad credit.
In recent years the Canadian Government, banks and other major lending institutions have tightened guidelines, in many cases not granting bad credit mortgages at all. This is a good stride for the Canadian economy but that is of little consolation to those who have accumulated debt and need help.
Bad credit mortgages are still available, they are just not offered by as many retail financial institutions. Lenders, who offer bad credit mortgages, are primarily trust companies, finance companies and private lenders. Many of these institutions only lend their money through mortgage brokers.
To qualify for a bad credit mortgage you will need to have equity in your home. In most cases, bad credit mortgages will only be granted for up to 75% to 85% of the value of the home. Bad credit mortgages are also referred to as equity mortgages.
Conversely if you need a bad credit mortgage to purchase a home, you will need 20%-25% down payment to qualify.
The typical process of applying for a bad credit mortgage is:
1. An application is made to a mortgage broker
2. Upon approval, an appraisal will be ordered on your property
3. If the appraisal comes in at value you will sign a “mortgage commitment”
4. The file will then be sent to a real-estate lawyer to close the deal
5. You will sign with the lawyer
6. Funds will be dispersed.
The bad credit mortgage process takes about 3-4 weeks and is a great way to raise money to consolidate debt or pay for home renovations. Bad credit mortgages often bear less interest than unsecured credit products, such as credit cards or lines of credit.
On top of that, if you use your home equity to pay off debt and build stronger credit, your bank may consider taking over your bad credit mortgage in the future. For more information about bad credit mortgages in Ontario visit http://www.gtamortgagematters.com/
Thursday, April 28, 2011
Monday, April 18, 2011
Who Sets Ontario's Mortgage Rates and Where Can You Find the Lowest Mortgage Rate?
Mortgage rates in Canada are set by the Bank of Canada. When the Bank of Canada changes interest rates, banks across Canada change their rates accordingly. When planning to purchase your home, the better informed you are about mortgage rates, the greater chances you will have of finding the lowest mortgage rate possible.
Most people think of only their bank when it comes time to get a mortgage. But when you deal with a bank, you are only dealing with one lender – the bank. Because mortgage rates fluctuate coast to coast, it’s a good idea to consider working with an Ontario Mortgage Broker to make sure you are getting the lowest mortgage rate possible.
Mortgage Brokers in Ontario have access to numerous financing choices that many people wouldn’t normally think of, including trust companies and private loan companies. Ontario Mortgage Brokers will research and compare mortgage rates from hundreds of banks and mortgage lenders across Canada to match the lowest mortgage rates with the best terms available. Using a Mortgage Broker in Ontario will save you time and money because all the research and paperwork will be done for you!
Take some time to educate yourself about mortgage rates in Ontario and across Canada. Start by subscribing to the Bank of Canada blog to learn about mortgage rates and how they fluctuate throughout the year and across Canada. Conduct Google searches for mortgage brokers offering the lowest mortgage rates. Visit the Financial Services Commission of Ontario (FSCO) website to locate a licensed Ontario Mortgage Broker who can assist you in the search for the lowest mortgage rates to fit your budget.
Doing some online research and consulting with an Ontario Mortgage Broker will save you time and money, and will increase your chances of getting the lowest mortgage rate possible to fit your budget.
The Mortgage Centre is one of Mississauga, Ontario’s leading mortgage brokerage firms, offering seamless solutions to all your mortgage needs. Whether you want to buy a home, set up a new business or even finance an existing loan or mortgage, we offer you the perfect solution to cater to your specific requirement.
For more information visit http://www.gtamortgagematters.com/
Most people think of only their bank when it comes time to get a mortgage. But when you deal with a bank, you are only dealing with one lender – the bank. Because mortgage rates fluctuate coast to coast, it’s a good idea to consider working with an Ontario Mortgage Broker to make sure you are getting the lowest mortgage rate possible.
Mortgage Brokers in Ontario have access to numerous financing choices that many people wouldn’t normally think of, including trust companies and private loan companies. Ontario Mortgage Brokers will research and compare mortgage rates from hundreds of banks and mortgage lenders across Canada to match the lowest mortgage rates with the best terms available. Using a Mortgage Broker in Ontario will save you time and money because all the research and paperwork will be done for you!
Take some time to educate yourself about mortgage rates in Ontario and across Canada. Start by subscribing to the Bank of Canada blog to learn about mortgage rates and how they fluctuate throughout the year and across Canada. Conduct Google searches for mortgage brokers offering the lowest mortgage rates. Visit the Financial Services Commission of Ontario (FSCO) website to locate a licensed Ontario Mortgage Broker who can assist you in the search for the lowest mortgage rates to fit your budget.
Doing some online research and consulting with an Ontario Mortgage Broker will save you time and money, and will increase your chances of getting the lowest mortgage rate possible to fit your budget.
The Mortgage Centre is one of Mississauga, Ontario’s leading mortgage brokerage firms, offering seamless solutions to all your mortgage needs. Whether you want to buy a home, set up a new business or even finance an existing loan or mortgage, we offer you the perfect solution to cater to your specific requirement.
For more information visit http://www.gtamortgagematters.com/
Monday, April 11, 2011
Get Out of Debt Ontario! An Ontario Mortgage Brokers’ Call to Action
At the end of 2003, Canadians held $517.7 billion in mortgages. There were 84,297 personal bankruptcies in 2003, up 52% from a decade earlier.
In December 2009, household debt in Canada reached $1.41 trillion. Spread evenly across all Canadians, each individual would hold approximately $41,740 in debt in 2009, an amount 2.5 times greater than in 1989. Total consumer credit issued by chartered banks grew from 21.1% in 1989 to 77.7% in 2009.
In Ontario alone, the Ontario Association of Credit Counselling Services reports a 60% increase in its clients since 2000 – clients whose incomes have increased by 15% on average but whose debts have soared by nearly 60%.
Some experts say a booming real estate market and interest rates at historically low levels have Canadians saving less and taking on more debt. The total debt per household is now equal to 125% of disposable income, up from 91% in 1990, an increase that has helped push insolvencies to record levels.
There is, however, a way for Ontarians to solve this crisis and get out of debt. With the help of a licensed Ontario Mortgage Broker, people in Ontario can consolidate their debt and begin saving money. A debt consolidation loan is a great idea, particularly if you have equity in your home, because it allows you to pay off multiple creditors at once, so you only have one payment to make each month instead of many payments.
An Ontario Mortgage Broker can assess if there is sufficient equity in your home to utilize a consolidation loan, and will assist you in the application process. You should consider a consolidation loan for the following reasons:
• A consolidation loan can reduce or even eliminate consumer debt
• Interest rates on a consolidation loan are usually lower than the interest rates on credit cards and lines of credit
• A consolidation loan replaces several different payments to different creditors with one monthly affordable payment to your financial institution
• Consolidation loan payments are affordable, and easy to manage and keep within your budget
It is recommended that you work with an accredited Ontario Mortgage Broker when applying for a consolidation loan to eliminate your debt. An Ontario Mortgage Broker has a solid relationship with all the banks and lenders to ensure you get the best rates and service you deserve.
For more information visit http://www.gtamortgagematters.com/
In December 2009, household debt in Canada reached $1.41 trillion. Spread evenly across all Canadians, each individual would hold approximately $41,740 in debt in 2009, an amount 2.5 times greater than in 1989. Total consumer credit issued by chartered banks grew from 21.1% in 1989 to 77.7% in 2009.
In Ontario alone, the Ontario Association of Credit Counselling Services reports a 60% increase in its clients since 2000 – clients whose incomes have increased by 15% on average but whose debts have soared by nearly 60%.
Some experts say a booming real estate market and interest rates at historically low levels have Canadians saving less and taking on more debt. The total debt per household is now equal to 125% of disposable income, up from 91% in 1990, an increase that has helped push insolvencies to record levels.
There is, however, a way for Ontarians to solve this crisis and get out of debt. With the help of a licensed Ontario Mortgage Broker, people in Ontario can consolidate their debt and begin saving money. A debt consolidation loan is a great idea, particularly if you have equity in your home, because it allows you to pay off multiple creditors at once, so you only have one payment to make each month instead of many payments.
An Ontario Mortgage Broker can assess if there is sufficient equity in your home to utilize a consolidation loan, and will assist you in the application process. You should consider a consolidation loan for the following reasons:
• A consolidation loan can reduce or even eliminate consumer debt
• Interest rates on a consolidation loan are usually lower than the interest rates on credit cards and lines of credit
• A consolidation loan replaces several different payments to different creditors with one monthly affordable payment to your financial institution
• Consolidation loan payments are affordable, and easy to manage and keep within your budget
It is recommended that you work with an accredited Ontario Mortgage Broker when applying for a consolidation loan to eliminate your debt. An Ontario Mortgage Broker has a solid relationship with all the banks and lenders to ensure you get the best rates and service you deserve.
For more information visit http://www.gtamortgagematters.com/
Monday, April 4, 2011
Who Regulates Ontario Mortgage Brokers?
In Ontario, mortgage brokers and the mortgage broker industry in general is regulated by the Financial Services Commission of Ontario (FSCO).
If you are planning to use the services of an Ontario Mortgage Broker, it is important that you educate yourself on the industry and that you are informed about the Mortgage Brokers and Lenders Administration Act (2006). It is also imperative that you:
• Confirm that the Ontario Mortgage Brokerage is licensed
• Confirm that the Ontario Mortgage Broker is licensed
• Understand how Ontario mortgages work
• Understand how Ontario Mortgage Brokers are regulated
It is against the law for an Ontario Mortgage Broker to operate business without a valid license. The FSCO exists to protect consumers against fraudulent mortgage practices, by requiring that all agents and brokers in Ontario prominently display their licensing information on their websites. If you are dealing with an agent or broker in Ontario, ask to see their license and qualifications before conducting business with that individual. If the agent or broker cannot provide documentation, always consult the FSCO first, before conducting business with that individual.
There are several benefits to dealing with a licensed and regulated Ontario Mortgage Broker or Brokerage:
• The Ontario Mortgage Broker will be properly educated and have experience in the field of Ontario mortgages
• The Ontario Mortgage Broker will be experienced and be able to provide advice confidently and accurately
• The Ontario Mortgage Brokerage will be held accountable for ensuring all Mortgage Brokers follow the law
• Should fraudulent activities occur, the Brokerage will have errors and omissions insurance with the proper coverage to protect consumers against these types of activities
• All Ontario Mortgage Brokers must disclose the nature of their relationship with borrowers and lenders
The FSCO monitors and investigates all incidents of non-compliance, and takes appropriate action against Ontario Mortgage Brokers and Ontario Mortgage Brokerages who do not follow the law. If the Ontario Mortgage Broker or Ontario Brokerage is not licensed with the Financial Services Commission of Ontario, it is recommended that you find an individual who is.
For more information visit http://www.gtamortgagematters.com/
If you are planning to use the services of an Ontario Mortgage Broker, it is important that you educate yourself on the industry and that you are informed about the Mortgage Brokers and Lenders Administration Act (2006). It is also imperative that you:
• Confirm that the Ontario Mortgage Brokerage is licensed
• Confirm that the Ontario Mortgage Broker is licensed
• Understand how Ontario mortgages work
• Understand how Ontario Mortgage Brokers are regulated
It is against the law for an Ontario Mortgage Broker to operate business without a valid license. The FSCO exists to protect consumers against fraudulent mortgage practices, by requiring that all agents and brokers in Ontario prominently display their licensing information on their websites. If you are dealing with an agent or broker in Ontario, ask to see their license and qualifications before conducting business with that individual. If the agent or broker cannot provide documentation, always consult the FSCO first, before conducting business with that individual.
There are several benefits to dealing with a licensed and regulated Ontario Mortgage Broker or Brokerage:
• The Ontario Mortgage Broker will be properly educated and have experience in the field of Ontario mortgages
• The Ontario Mortgage Broker will be experienced and be able to provide advice confidently and accurately
• The Ontario Mortgage Brokerage will be held accountable for ensuring all Mortgage Brokers follow the law
• Should fraudulent activities occur, the Brokerage will have errors and omissions insurance with the proper coverage to protect consumers against these types of activities
• All Ontario Mortgage Brokers must disclose the nature of their relationship with borrowers and lenders
The FSCO monitors and investigates all incidents of non-compliance, and takes appropriate action against Ontario Mortgage Brokers and Ontario Mortgage Brokerages who do not follow the law. If the Ontario Mortgage Broker or Ontario Brokerage is not licensed with the Financial Services Commission of Ontario, it is recommended that you find an individual who is.
For more information visit http://www.gtamortgagematters.com/
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