Mortgage Intelligence

Oshawa's Mortgage News Desk!


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Financial comfort & joy!

Contact the team at MiMortgage.ca at 866.452.1100 to speak to an expert now!

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Broker vs Banker

You want it all: the best available rate with exactly the right features you need to live comfortably with your mortgage and pay if off in record time. If you want the perfect mortgage, you need to shop around. And that’s my strength. I offer access to over 50 of Canada’s leading lenders, including major banks, credit unions, and national, regional and private lenders. I do the research for you, finding you the best mortgage across multiple lenders.

Your bank, as great as they are with your day-to-day banking, may not be the best choice for your mortgage because they represent just one available lender. Access to lender choice is one difference between getting a mortgage from a Broker vs a Bank, here are more:

  Your Mortgage Broker Your Bank
Mortgage Rates Mortgage brokerages negotiate discounted rates with lenders, and have access to rate promotions and specials. Rates are set by the Bank. If there’s a better deal in the marketplace, you’ll have to find it yourself.
Objectivity Your Mortgage Broker works for you, not any one lender. Mortgage specialists are there to build business for the Bank.
Solutions Brokers have access to mortgages for the self-employed and those with past credit issues. It is difficult to get a mortgage for certain client situations.
Cost The winning lender pays your Broker for the services and solution provided. Mortgage specialists are paid and incented by the Bank.
Ongoing Service Brokers offer ongoing advice after your mortgage closes i.e. how to pay off your mortgage faster, power down debt, finance renovations or invest in property.  There have been many regulatory changes, so it’s important to have access to a mortgage expert. No proactive ongoing advice is typically provided. You will get an annual mortgage statement.
At Renewal Your Broker will go to bat for you again to make sure you have the best deal possible. You may not be offered the best deal initially, requiring you to proactively contact the Bank to negotiate.

Getting a mortgage is a very significant financial event. That’s why you want someone who is highly specialized in the mortgage marketplace and focused solely on your needs. Get in touch with the experts at MiMortgage.ca for advice that is relevant to your situation.


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Five brilliant ways to work a reverse mortgage

It’s true: a reverse mortgage – one of the best financial tools available to Canadians over 55 – can greatly assist cash-strapped seniors who need to pay off their debts and live comfortably in their family home. But reverse mortgages are also a strategy for well-heeled retirees who want to unlock the value in their homes for wealth-building strategies or to enhance their retirement.

Here are five brilliant reverse mortgage strategies:

  1. Buy a second property. Who would have thought you could pull the value out of your first home – after retirement – and use the money to pick up a little vacation home… or maybe an investment property?
  2. Start a business. Canadians are increasingly pursuing a passion or using their professional talents to start a new business after retirement. A reverse mortgage is a great way to pull value from your home and make an investment in something you love to do.
  3. Give your children a leg up on the homebuying ladder. Tougher qualifying rules have created extra obstacles for first-time homebuyers. A reverse mortgage lets you keep enjoying your home – while giving your children some help to get into their own home.
  4. Renovate the home you love. Maybe your dream is a gourmet kitchen to hone your cooking skills. Or an outdoor entertaining area to make the most of your family time. Or maybe you’d like to renovate to make your home more accessible as your mobility decreases. A reverse mortgage can generate the funds to make it all possible.
  5. Use your home to get away! A reverse mortgage can give you a cash infusion to enhance your lifestyle. Many retirees are looking forward to more travel – and a reverse mortgage can provide the funding to make it happen, without ever giving up your home!

Bet you didn’t know a reverse mortgage could be such a powerful financial tool!  You can access equity in your home – tax free –  and never make a mortgage payment on those funds. You always retain ownership of the home, and you are never required to move or to sell. It’s good to know that all those years of mortgage payments have earned you some rewards. Interested?  Contact the experts at MiMortgage.ca at 1.866.452.1100. Let’s talk!


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Happy Halloween!

Speak to an expert at MiMortgage.ca about a low interest credit card. Contact us at 1.866.452.1100 now!

 


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Fixed or Variable-Rate Mortgage?

If you are rate shopping, you’ll notice that the lowest available rate will be for a variable mortgage, which is why we are often asked “what does variable mean and how is it different from a fixed-rate mortgage?”

With a variable mortgage, your rate will move in conjunction with your lender’s Prime lending rate, which in turn tracks the Bank of Canada’s rate, and will typically be quoted as Prime minus a specified percentage. Unless you have an economic ouija board, you won’t be able to predict what kind of rate ups and downs might be ahead of you.

With a fixed-rate mortgage, your payments are fixed for the term of the mortgage, which offers stability. Fixed-rates are usually better suited to first-time buyers or those who haven’t owned a home for a very long period. Ask yourself these questions: Do you like or need to know exactly what your payment is going to be over a longer period of time? Do you want to avoid the need to watch rates? Do you have less than 20% down? If you answered “yes” to all or most, a fixed-rate mortgage could be the better choice for you.

A variable-rate mortgage is best suited to people who have a flexible budget and can tolerate slightly more risk. Ask yourself these questions: Do you watch market conditions? Can you handle any rate increases that could increase your payment? Do you have more than 20% equity in your home? If you answered “yes” to all or most, a variable-rate mortgage might best suit your needs. Most variables allow you to exercise an option to “lock in” a fixed rate at any time for the remaining portion of your mortgage term or longer. You can also set up your payments at what they would be if you took the higher rate, which helps you pay down your mortgage faster, and creates a financial buffer for you if rates rise later.

If the uncertainty of a variable rate is going to give you sleepless nights, you’re in good company. Many Canadians prefer the certainty of a fixed-rate mortgage. They know exactly how much they will pay over the term of their mortgage, and they can plan accordingly… with no financial surprises. However, lower-rate variable mortgages with a strong Prime minus offer give you the potential to save a lot on interest. And, if your circumstances change and you need to get of out of your mortgage, you will appreciate the lower penalty to get out of a variable versus a fixed-rate mortgage.

Your best option is to get professional and personalized advice. The team at MiMortgage.ca would be happy to help you determine which option is best suited to your needs. Contact us at 1.866.452.1100 to speak to an expert now.