What is a Canadian Mortgage Broker?
Canadian Mortgage brokers are independent, trained professionals licensed to represent and provide you with the best advice for your mortgage needs.
Mortgage brokers primary expertise is locating funding for mortgage financing. They know where the best rates can be found. What's more, they have the knowledge required to present a proposal for financing to lenders in the best way possible to successfully obtain mortgage financing.
Why deal with a mortgage broker in Toronto?
Mortgage brokers represent you, the customer, not the lender. Because they are not employees of a lending institution, brokers are not limited in the product they can offer you. brokers seek out the best lender package to suit your specific situation, whether it’s with a Chartered Bank, Trust or Insurance Company, or Private Funds.
There is a wide assortment of options and features available to homebuyers today. Shopping around takes a lot of time and effort. The mortgage process within today's very competitive marketplace intimidates many Canadian homebuyers. It pays to work with a mortgage professional who will represent you and ensure the mortgage you get is the one best suited to your needs.
Choosing the wrong mortgage can cost you thousands of extra dollars. Mortgage brokers are trained professionals who can help you save on your mortgage dollar.
Other than rates, why should I use a mortgage broker?
In addition to rates, because mortgage-based financing is the broker's primary business, he or she has developed expertise in what type of mortgage financing each lender prefers to pursue. This kind of knowledge not only results in the most favourable rates for each project, but often whether a project is funded at all.
How do mortgage brokers find the best rates?
Interest rates are a concern to borrowers. Because of their daily contact with lenders, brokers know which project or home attracts a favorable interest rate from one institution, but a higher rate at another. Some institutions, in fact, will only accept mortgage submissions from mortgage brokers.
These rates, and preferences for types of mortgages, can change daily, depending on economic circumstances or based on the size of an institution's portfolio in a particular type of mortgage. Your mortgage broker keeps current and knows which lender to approach first. As a result, mortgage rates obtained by brokers are among the best available at the time of placement.
Why should I go to a mortgage broker first?
A professional presentation to a lender on the first application will get the best response and save you valuable time and money. Secondary applications with previous credit bureau inquiries may be more costly.
Often the success of obtaining mortgage approval depends on the way a proposal is presented and to whom it is sent. Your mortgage broker is trained to present your mortgage proposal where and how it will get the most immediate, positive result.
You don't call an insurance company for insurance - you use an insurance broker, because of their expertise, product knowledge and rates. So remember, call your mortgage broker first!
Do mortgage brokers only do residential mortgages?
Brokers can place all types of loans provided they are backed by mortgage collateral. This includes small loans backed by a residential property to million dollar commercial loans backed by commercial property. Mortgage-backed loans in the millions are not uncommon with private pension funds and private lenders.
In addition to handling straight mortgages, mortgage brokers are often called on to assemble financing ( based on mortgage collateral) for businesses. Mortgage brokers excel in this type of financing package because of their expertise in looking at loans from a mortgaging perspective, as well as their knowledge of financial institutions' interests and desires for a particular product at specific times.
How do mortgage brokers get better deals than many banks?
The lenders who work with mortgage brokers include traditional sources, such as chartered banks, trust companies, as well as corporate and private pension funds.
In addition to these sources, brokers often develop professional relationships with private sources of funds, termed private lenders. These lenders can provide many various mortgage products not available at conventional sources. For best results call your Broker first.
Can I still go through my bank with my mortgage broker?
Yes, letting a mortgage broker represent you to your own financial institution can often result in a better mortgage rate than you could get on your own.
Monday, April 1, 2013
Monday, March 25, 2013
Buying a Place for Your Student
Granted the ability to buy a place for your children as they head off to College or University is not for everyone, but for some people it is a great way to launch their kids and make sure they do not come back.
Depending on where they go to do their post secondary education it can often make financial sense to buy something. If they were going to stay home anyway and everyone is happy then maybe this is not for you.
If your student is heading off to a new town then it is time to consider the cost of a down payment and a mortgage relative to the cost of being in residence, or if you were planning to help them get started anyway then why not now. When they graduate they can either run it as a rental property or they can sell it and use the proceeds to buy their next home, if they have decided where they want to set down roots.
Owning a place can help build a sense of responsibility; managing a roommate and rental obligations can teach even more.
If you have 2 students going to the same University or College then it really does make a lot of sense from almost every angle.
Things to consider.
* Housing market in the city or town where they will be located.
* Term of the mortgage
* Rental rates
* Portion of mortgage payment that goes to principal (this is a form of savings)
And more, if you want to discuss your options then please feel free to call. I would be happy to go through your options with you and help you think through whether this is the right step for your family.
Depending on where they go to do their post secondary education it can often make financial sense to buy something. If they were going to stay home anyway and everyone is happy then maybe this is not for you.
If your student is heading off to a new town then it is time to consider the cost of a down payment and a mortgage relative to the cost of being in residence, or if you were planning to help them get started anyway then why not now. When they graduate they can either run it as a rental property or they can sell it and use the proceeds to buy their next home, if they have decided where they want to set down roots.
Owning a place can help build a sense of responsibility; managing a roommate and rental obligations can teach even more.
If you have 2 students going to the same University or College then it really does make a lot of sense from almost every angle.
Things to consider.
* Housing market in the city or town where they will be located.
* Term of the mortgage
* Rental rates
* Portion of mortgage payment that goes to principal (this is a form of savings)
And more, if you want to discuss your options then please feel free to call. I would be happy to go through your options with you and help you think through whether this is the right step for your family.
Monday, March 18, 2013
More People to Please when buying a home?
How to juggle family opinion when buying your first home
These days, many first time home buyers are juggling a lot more than their finances. They have to deal with the challenge of well-meaning, but unwanted opinion. Why? Real estate agents agree that with down payments and closing costs increasing, more than ever before, young adults look to their parents for financial help. — As, so does the need for financial assistance from family members. This leads to a greater involvement in the house-hunting process, and new home buyers soon discover that their family members bring along their own opinions in addition to their cash. But when the young buyers' dream home ideals clash with the older generations' vision, both parties must do a balancing act.
“Satisfying both tastes is key,” explains Claudine Montanoa real estate agent on W Network's reality series My House Your Money. “For young adults looking in the urban city, I stage the place to appeal with a modern contemporary look for the young professional—sleek and modern, bold and intense in terms of paint, furniture and décor.”
When extended family members come along, the presentation certainly changes. “To appeal to young adults and their parents, it has to feel modern, but traditional as well. The look is not as bold in terms of paint and décor, but has a more relaxed, cosy feel with softer furnishings throughout, so both age groups can connect with the space.”
Having been through the process previously, parents tend to be much more critical in home purchasing and are a bigger challenge to delight. “The young couple is usually more excited, and focus on the things on their wish-list they are getting. In fact, they are excited to just purchase something they can call their own,” adds Montano.
When it comes down to it, winning this war is easier than imagined for the new home buyers, says fellow My House Your Money real estate agent, Helene Baguley. “Most parents or extended family members, even if they are providing the down payment, want to see their kids happy at all costs.”
Source: News Canada
These days, many first time home buyers are juggling a lot more than their finances. They have to deal with the challenge of well-meaning, but unwanted opinion. Why? Real estate agents agree that with down payments and closing costs increasing, more than ever before, young adults look to their parents for financial help. — As, so does the need for financial assistance from family members. This leads to a greater involvement in the house-hunting process, and new home buyers soon discover that their family members bring along their own opinions in addition to their cash. But when the young buyers' dream home ideals clash with the older generations' vision, both parties must do a balancing act.
“Satisfying both tastes is key,” explains Claudine Montanoa real estate agent on W Network's reality series My House Your Money. “For young adults looking in the urban city, I stage the place to appeal with a modern contemporary look for the young professional—sleek and modern, bold and intense in terms of paint, furniture and décor.”
When extended family members come along, the presentation certainly changes. “To appeal to young adults and their parents, it has to feel modern, but traditional as well. The look is not as bold in terms of paint and décor, but has a more relaxed, cosy feel with softer furnishings throughout, so both age groups can connect with the space.”
Having been through the process previously, parents tend to be much more critical in home purchasing and are a bigger challenge to delight. “The young couple is usually more excited, and focus on the things on their wish-list they are getting. In fact, they are excited to just purchase something they can call their own,” adds Montano.
When it comes down to it, winning this war is easier than imagined for the new home buyers, says fellow My House Your Money real estate agent, Helene Baguley. “Most parents or extended family members, even if they are providing the down payment, want to see their kids happy at all costs.”
Source: News Canada
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