With so much self serve information it's important to get the right details.
You can determine how much of a home (mortgage) you can afford by considering your income and adjusting for expenses. Adjusting your down payment amount will impact your overall purchase price.
Calculate what your saving will be when renewing your mortgage; REMEMBER your savings will be over 5 years, the new term of your mortgage.
http://davidpylyp.com/agentprofile/Mortgage_Qualifier.cfm
Using the Mortgage Qualifier displayed here permits you to calculate different scenarios ADDING maintenance fees and taxes, into the budget calculations to forecast realistic expenses.
Using an Independent Mortgage Broker shops your mortgage application to the mortgage finance market. Brokers are actually bidding for your business. Why take the standard renewal from your existing lender without comparing what others can save you!
Renewyourmortgage.ca is just such a renewal service.
Your family deserves the best you can provide.
You have all seen the flyers left on someone's door explaining that (he) was a real estate investor, could buy his house, pay cash and close quickly. Unimaginative, I know, but effective.
Jack was behind on his mortgage and needed help, Quickly. The POWER OF SALE Eviction date was less than a week away. I knew this because, desperate and out of options, he called after finding the bright yellow letter.
I was a little nervous to meet with him. After all, Jack had over $80,000 in equity in his home. He had procrastinated in dealing with his situation for so long but with careful negotiation he could score himself a home run.
As we sat at his kitchen table, Jack described his financial situation. He was disabled from a previous job and living off the insurance. Some unexpected expenses came up and he couldn't pay his mortgage. He got behind and just couldn't seem to catch up. Sad, but not uncommon. I’d heard many stories like his before. I listened carefully and told him I understood.
There are still some options even at this stage; Legal involvement in your situation, refinancing your program and getting you on your feet or simply to move out.
Controlling your own sale permits you the option of redemption until the Banks Sale goes through. Your mortgage holder will be reimbursed in this order
- The Condo Maintenance Fees
- Municipal Property Taxes
- Lawyers fees
- Sale Expenses
- Interest Expenses
- Then the balance is paid to principal
Now you are responsible for the deficiency (remaining) balance. That's what power of sale means. The Power of Sale Demand Notice is for both possession and the balance outstanding. In Canada when a property is foreclosed upon a Lender takes control of the Asset ( It now becomes their asset )
Veronica Thompson is a licensed Mortgage Broker providing First and Second Mortgages, Refinance approvals plus We can provide solutions to your money problems quickly. Some of the issues we have dealt with are helping you create household budgets, consolidations and refinancing.
There are many reasons why you need mortgage or credit assistance; we've heard most of them, so don't hesitate, give us a call 416-410-1150 or send me an email.
Veronica Thompson, a Mortgage Agent with Mortgage Alliance Accumetrix (License #12036) concentrating her efforts in the Toronto GTA that includes Mississauga, Brampton and Oakville. Ask a question or Get Help Here.
Let's make smartER Mortgage Decisions
When you bought your home, you thought you were staying a while. Either you continue with your mortgage to term and renew or you may need more options.
Breaking your mortgage prior to the renewal or renegotiating may involve penalties. You may have an opportunity to benefit from the new lower rates by renewing now; even with a penalty.
We can Deal with a Renewal or Refinance
If your mortgage is with a Canadian Bank that is federally regulated by Financial Consumer Agency of Canada.(FCAC) The Bank needs to provide you with a minimum of 3 weeks notice of the Offer to Renew and under what terms and conditions.
You knew this was coming and you should have been shopping around. But there is more here than just the interest rates. Each Statement, each question posed to the LENDER resulted in additional costs. Now there are discharge fees in addition to Re Registration with another lender; so you need to factually examine your options. Get involved because your mortgage is a major component of your monthly household budget.
Allowing your mortgage to renew automatically does not mean you are getting the best possible terms and conditions.
Switching to a New Lender will require re-document and re- registration. You are in effect applying for a new mortgage and the NEW Mortgage Rules will apply. Verify exactly what those costs will be. Your new lender may absorb some of those costs to attract your business. IE Legals, Appraisals, Registration Fees... Negotiate!
Use an Independent Mortgage Broker that will shop the open market for you to secure the best interest rate and terms for you. Compare the Mortgage Brokers Offer with the renewal from the Bank. This may be your opportunity to include some higher interest rate debt to lower your monthly payments.
Your Mortgage Broker can help you understand and read your mortgage documents. If you have a closed mortgage, you bank may or may not allow you to break the mortgage. If you are permitted to break the mortgage you will be paying some fees and possibly penalties.
They will tell you if:
- you need to pay a penalty and what that amount is
- you need to pay an administration fee
- you need to pay legal or disbursement fees to discharge the old mortgage
- you need to pay legal or disbursement fees to register the new mortgage
- you MUST repay some or all of any “cash back” you may have received when you first obtained the mortgage
- the calculation of any prepayment penalty would be based on the posted rate at the time you signed your mortgage agreement, or on a discounted rate if you negotiated one for your initial mortgage.
A Mortgage Penalty can be reduced if you make a permitted PREPAYMENT prior to renegotiating. This would appear counter productive if you are adding in credit card debt or other bills.
You could renegotiate PRIOR to the Renewal with a Blend and Extend option which simply put will mathematically average the mortgage balance and interest rates. This may be worthwhile if you have a higher interest rate mortgage to combine with Today's low rates.
If you blend and renew at a lower interest rate your payment stays the same; so even with a potential penalty added in to the mortgage balance you may effectively pay it off sooner because of the interest rate savings.
The Decision is yours. A mortgage is often one of the biggest financial commitments you will ever make, so it is worthwhile to do your homework, include knowledgeable and experienced people to help you when you are mortgage shopping, compare the entire package offered by each lender. In seeking the lowest interest rates, consider the features (such as ability to make prepayments or to increase your regular payments) and the services that are important to you and addition fees that may apply.
How can I help you today?
Veronica Thompson, a Mortgage Agent with Mortgage Alliance Accumetrix (License #12036)
David Pylyp
Etobicoke Real Estate Agent
RE/MAX Realty Specialists Inc.,
416 233 9000 or direct at 647 218 2414
Let's have a real conversation about financial responsibility, money and paying your bills. We need Credit. We all need and use credit and debit cards. Flaherty has tightened Lending Policies for mortgages and keeps talking about household disposable income that changes with interest rate increases and other household expenses like Heat and Hydro. [Toronto, Canada in winter without heat and hydro is not an option]
What can you buy without Credit?
Now There are two variables;
- Increase Income
- Reduce Expenses
You can work an extra shift, get a part time job, or get a better paying job to supplement your income. You can rent a room or take in a boarder. You can pare down your lifestyle to where you are able to handle your monthly expenses and save for major purchases or vacations. Do without a Cell Phone, Cable or Internet.
Borrowing more money, or jamming your credit cards to the limit is not an alternative. Please refer to ANY BANK card holder agreement and you will discover that paying the minimum balance will take 20 years to repay that $3,000 that was so easy to run up; the preferred interest rate and extra fees you pay to get points don't matter when even one payment is late and THEY increase your interest rate to 28.85%
Do you need Major department store cards like SEARS, Canadian Tire and the Bay?
Best Habit? Pay off your entire credit card bill every month.
So you would like to buy a house but your credit score is low or you have a few blemishes. You can ignore it and just be angry, You can phone a trustee in Bankruptcy and file or you can try these new soft proposals to your creditors. [same as bankruptcy]
Credit Repair
We can provide solutions to your money problems. Some of the issues we have dealt with are helping you create household budgets, consolidations and refinancing, smoothing out Credit Bureau errors and working with you over a period of 6 to 18 months to improve your credit score.
There are many reasons why you need mortgage or credit assistance; we've heard most of them, so don't hesitate, give us a call 416-410-1150 or send me an email.
Veronica Thompson, a Mortgage Agent with Mortgage Alliance Accumetrix (License #12036)
