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Mortgage
Solutions Pre-Approval
120 Day Pre-Approval is Your Best Rate Guarantee - Remember the Tortoise & the Hare?!! Whether you are purchasing your first home, approaching maturity on an existing mortgage, or planning to refinance early -- getting pre-approved early with the right lender is an important consideration. Up to 120 days before the event you can establish a commitment from a lender - Your BEST Rate Guarantee. BEST Rate means that if the interest rate dips, you get the benefit of the lowest rate (note, not all lenders offer this clause). The pre-approval is only a commitment from the lender; by signing this agreement you are not locked into this relationship. If a better opportunity exists elsewhere this broker will guide you there. Pre-approvals are a win/win for the client and a risk the lender is willing to take to attract the business. Pre-approvals also provide real estate agents with the knowledge of your capabilities in the marketplace. Considerations should be given to get pre-approved for an amount at the top of your budget when shopping for a new home. You do not want to be caught having to go back to the lender, when you are trying to submit an offer and risk losing the opportunity. Getting pre-approved can take as little as 20 minutes. Plan ahead and contact me early to enjoy a BEST Rate solution. Sign up for the BEST Rate Plan and I will call you 120 days prior to your planned funding date. Slow and steady wins the race! Home Buyers Plan - Leveraging Your RRSP Today, approximately 50% of first-time home buyers use their RRSP savings to help finance their purchase of a qualified home or finance the purchase for a disabled relative. The federal government's Home Buyers' Plan allows you to use up to $25,000 in RRSP savings ($50,000 for a couple) to help pay for your down payment or any other purpose; as long as you buy or build a qualifying home and meet all participating conditions associated with the plan. The RRSP funds you're using must be on deposit for at least 90 days before transferring to a personal banking account two weeks before closing. You then have 15 years to repay your RRSP at a minimum rate of 1/15 per year or have the funds added as taxable income. You are considered a first-time home buyer if you or your spouse or common-law partner has not owned a home that you occupied as your principal place of residence in the past five years. These are the highlights. Before you proceed with a withdrawal please ensure you include TMG, as well as your financial planner in your decision making. Plus give full consideration to the detailed explanation, examples, and forms from CRA. Click to download and print here. First Time Home Buyer’s Tax Credit For 2009 and subsequent years, the budget proposes to introduce a new non-refundable tax credit, based on an amount of $5,000, for certain home buyers that acquire a qualifying home after January 27, 2009 (i.e., closing after this date). Click to download and print here Cash back is a relatively new mortgage product that that offers the borrower the flexibility to consolidate the need for downpayment or any financial requirement. The lender agrees to pay a sum of cash at closing that is either a fixed amount (i.e. $1000) or a percentage of the amount borrowed (i.e. 7%). Purchasing a home can be an expensive process, so an initial cash injection may be of get benefit and importance. As a new homebuyer, cash back may be an ideal answer to financing the complete purchase. As mentioned the funds may be used for any purpose by the customer, i.e. furniture, landscaping, paying of another debt. Please be advised that there are specific qualifying criteria that must be met regarding credit worthiness and debt servicing. A cash back mortgage rate is generally set close to the bank rate as shown on the main page. Self Employed Mortgage - No/Low Docs Self-Employed borrowers and commissioned sales people account for more than 2.5 million Canadians. They have traditionally had difficulty acquiring a high ratio mortgage or refinance with a major Canadian banking institution. If you are receiving your income as 100% commission including tips/gratuities you can now qualify financing given stated income and a good credit score. For those with limited self employment history, weak credit, or the possibility no income at all there are equity lending solutions. Lending is based on the value in the property and knowledge that borrowers are less likely to default on the loan. The strength of this program is that the client can SELF DECLARE their income with no need for detailed financial statements or income verification. Plus you could potentially purchase more of a home than a traditional lender would permit. "A" clients will find this program attractive for this reason. Is this you what a beautiful home with a great piece of property, too bad the kitchen is outdated ? Well you are in luck, not only does this program open the door for you to get into the home, with the dream kitchen, or spa like ensuite, but it also saves you any inconvenience, or hassles of arranging a second loan after the closing. This is possible with a GE/CMHC " Purchase Plus Improvements " mortgage. Now you can purchase a home, renovate it the way you like and pay for it all in one mortgage payment at first mortgage rates. READ MORE The "no fee switch" on renewal is offered when the loan amount and amortization are not changed, straight transfer for a better rate. The substantial difference of this offer is that a lawyer is not required if the switch in lenders takes place on the anniversary date and conditions do not change. Some lenders will cover the cost of an appraisal if required. Renewal agreements are extended by the current lender usually 30 days prior to the anniversary date. The offer to extend the mortgage loan may revise the terms as to principle repayment and interest rate. A 30 days notice will limit the borrower's ability to negotiate a better deal given the complexities and time required to establish a relationship with other lenders. If the borrower has the prudence to plan ahead a 120 day pre-approval will assure the best rate the market has to offer and can save thousands over the new lending period. A pre-approval may prove even more significant if a change in the loan amount is anticipated. To sign up for our Renewal Alert, just click here. We will guarantee your rate for 120 days! Refinance, ReMortgage - Equity Take-out Loans Why remortgage, refinance? debt consolidation, home renovations, vacation, children's education, small business, investments, recreation property, new vehicle, boat, RV, or any dreams you have. How much equity can you source? Refinancing to 90% loan to value (95% with justification) is possible. Mortgage insurance is payable on the new funds at a set ratio; added to loan. What is the cost to pay out current mortgage in full? See commitment for prepayment penalty, usually the greater of 3 months interest or the interest rate differential. Cost of penalty can be included in refinanced mortgage amount. Is there an additional discharge penalty? Possibly, review commitment. What are the additional costs? Legal +/- $500 and possibly an appraisal +/- $250 When to refinance for a better rate? If you have a spread of 2% between your current rate and the latest discount rate, then it is time for a detailed comparison. Remember that each lending situation is different and my advice is free for the taking. Reverse mortgages are offered by some financial institutions in Canada. Intended for retired home owners with equity in their home. Reverse mortgages, or reverse income mortgages, allow a financial institution to take a claim (often 10 to 40%) in exchange for a regular payment to the owners. This may be in the form of a reverse annuity mortgage or a reverse mortgage line of credit. Commonly, a reverse mortgage consists of an individual taking out a mortgage on his or her house and buying an annuity with the proceeds. The mortgage continues to grow until the individual dies (or, if the individual is married, when the individual and his or her spouse have died) or the mortgage term ends. Typically, the house is then sold and the proceeds used to pay off the mortgage. Conveniently, the annuity income from a reverse mortgage is received tax free since it is, in effect, a loan to the taxpayer. Reverse mortgages can be relatively complex, and their use should be considered carefully by the planner in conjunction with other options available to the client. Take into account that if the value of the home is not increasing substantially, it is possible that a surprising amount of its value will be absorbed by the interest on the reverse mortgage. In addition, there may be substantial interest penalties to exit from the strategy if the home owner decides not to continue with it. TMG's advice is to carefully consider your options in detail, prior to accepting a Reverse Mortgage contract. Restructuring your debt is the perfect solution to avoid paying for high interest rate loans particularly when mortgage rates are at historical lows. If you have equity in your property, you may qualify for an equity take-off of up to 95% loan to value. In calculating the value of your property consider that home values have increased an average of 8% per year for the last five years, i.e. 2002xxxx$100,000
The chart
below is a sobering reminder that restructuring your finances by leveraging
your mortgage, property value, and exploiting historically low interest
rates can create opportunities to control your financial future and
achieve your long term goals. (note, little known fact, exceeding
80% of your credit limit will decrease your credit score, 100%+
even more damage).
When both mortgages and vacancy rates are at historical lows, the investment property market becomes top of mind for many prospective entrepreneurs. Investors are looking at investment properties as a second source of income and popularity will limit opportunity. Keep in mind that on average 1 in every 7 listed investment property will be found suitable given a set of stringent criteria that should be set by you the buyer. So what makes a good opportunity? It could be as simple as dividing the annual income by all expenses to equal a ratio that should be greater than 1.1, debt coverage ratio. If the property generates $10,500 and costs $10,000 to operate your ratio would be 1.05. This situation would be considered below the ideal given consideration for a desired profit and an allowance for either vacancy or unforeseen repairs. On the positive side considerations like location may lower the acceptable ratio. Ensure you do your homework as you want your numbers to make cent$ for you and to the next buyer. Plus there are many other key considerations - tenants, insurance, incorporation, etc. Financing a rental property starts with 5.0% down or more, depending on the number of units and whether the property will be owner occupied or not. Vender take backs and 2nd mortgage opportunities may prove beneficial. To qualify you must be able to carry all debt obligations with only 50% of the leased rental income. There are many other considerations to evaluate if you are to become a successful landlord, TMG we can help. The Mortgage Guide works with wholesale lenders to help small business owners and investors achieve commercial property ownership. We can assist in originating loans from $50,000 to 100M plus for borrowers who seek a simplified underwriting (stated income/stated asset) process. Retail/Office Buildings Designed for retail or office sales and display, this category includes stand-alone buildings such as offices, supermarkets, convenience stores, drug stores, department stores, bakeries, and beauty shops as well as strip centers, and neighborhood and community shopping centers. Mixed Use/Apartment Buildings These properties integrate residential spaces with commercial uses, such as retail or office space. Often these properties have a ground floor retail store or office with apartment(s) above, all in the same building. Multi-Family Housing residential structures that contain five or more dwelling units in the same building. These multi-story buildings generally offer individual apartments for rent with common area facilities, such as an entrance, lobby, elevator, stairs, hallway, walks or grounds. Health Care Included in this category are all Assisted Living or Nursing Home types of operations where a license is required to operate the business. Hotels/Motels Offering financining to the flagged and non-flagged world of hotels and motels where the valuation assumptions are based on facts relative to the specific property. Warehouses/Light Industrial Properties Single and multi-tenant facilities that are used for warehousing, light manufacturing, distribution, research and development. Does not include buildings where heavy manufacturing or specialized industrial operations such as welding occur. Self-Storage Facilities Now one of the most competitive building classes in the country, these facilities are designed primarily for storage. This category also includes cold storage, RV and boat storage facilities, and truck terminals (transit facilities). Automotive Services Includes everything from auto repair facilities to retail auto shops and part supply stores. Special Purpose/Unique Properties Including day care and educational facilities, funeral homes, campgrounds, outdoor entertainment centers, trailer and mobile home parks and marinas. Restaurants including owner-occupied and leased facilities as well as fast-food and full-serve restaurants in neighborhood settings or urban.
Bad Credit Mortgages, Debt Arbitration, and Bankruptcy The primary reason that consumers choose alternative lenders is that the bank has turned down their mortgage request due to a poor credit rating, income stability, or a lack of downpayment. Banks set a fairly stiff criteria in general and as a result you will be much farther ahead dealing with this mortgage broker who will take only one application and save you the frustration of shopping around. You are a credit challenged applicant once your credit score is less than 600 and the number of non traditional lenders available in Canada are limited to but few. Often these lenders are not available to the general public and must be accessed using the resources of a broker. Credit challenged applicants must recognize additional time investment required of the mortgage broker. Clients must be prepared to pay an upfront consulting fee to process thier application. This fee usually ranges in the mid hundreds and depending on the time to close, a portion of the retainer maybe refundable. If this is your bad credit circumstance, you have to respect the fact that nobody works for free and solving your challenge will require a deadicated level of expertice. Alternative Lenders are known to "think outside of the box" and offer flexible options like:
Debt Arbitration The fact is people fall into debt not because they intend to, but because "real life" happens to people. Youve been laid off, been injured, suffered a divorce/separation or some event that made earning money and making payments difficult. If you are suffering financial hardship, behind in your debt payments by more than 90 days and owe at least $10,000 in unsecured debt; then there is a good chance that debt arbitration will avoid the potential harm caused by bankruptcy or consumer proposal. Working with a debt restructuring company, your obligation to creditors can be limited through their negotiation - potentially saving you 20% to 50% or more of your financial commitments. Contact us to get the process started before it is too late! Bankruptcy For those that have had a less fortunate experience with managing debt, there are purchase, equity takeout, and refinance opportunities available when just one day discharged from bankruptcy. In this situation you will require a minimun of 20% down. After two years <20% down, as long as there is re-established credit on two to three trade line (credit card, car loan...) for a period of one years. From a double bankruptcy you may qualify for a new purchase depending on full disclosure of circumstances. If you have elected for consumer proposal or orderly payments of debts, OPD then you require 25% down and have to be more than 50% through the process. The Home Trust Secured VISA ® card is your best chance to get the credit you deserve. Click on the icon to the left to download, print and apply! Build or re-build your credit, even if you've had credit difficulties in the past, or have never had a credit card before! An excellent opportunity to establish your credit rating. Virtually everyone is approved.
The Home Trust Secured VISA is a credit card that requires a security deposit for eligibility. Your credit limit is then set at the amount of the deposit. You can put down as little as $1,000 or as much as $10,000. Your security deposit earns interest*, while your Home Trust VISA card is open and in good-standing. If you decide to cancel your card, you can just pay off your outstanding balance, and you'll get your security deposit - plus interest earned - back from Home Trust. And Home Trust is a Member of Canada Deposit Insurance Corporation (CDIC). The application process is very simple and almost everybody is approved! Of course, if your application is not approved, your security deposit will be immediately returned to you. * O.A.C., E. & O.E. |
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