Seven signs you may need a mortgage tune-up

Did you know…

… that just like your car or your home needs a little TLC from time to time, your mortgage can benefit from regular reviews with your mortgage broker! Your car gets taken in for regular servicing to keep it running for the long term, shouldn’t your financial future get the same kind of attention? Scheduling annual reviews with your mortgage broker is a great way to make sure your mortgage & other debt is in peak performance!

Here are seven common signs you need a mortgage tune-up:
1. You are locked in at a higher rate than you could get today – and you want a professional opinion on your options;
2. You’re thinking about moving to a new home this year – or pondering buying an investment property;
3. You’re carrying more than $25,000 in high-interest loans or credit cards and it’s affecting your cash flow;
4. There’s a renovation or home repair project coming up this year – either by choice or necessity;
5. An investment or business opportunity is available – and you wish you could take advantage;
6. There’s a large expense looming – tuition, wedding – and you want to plan ahead; and,
7. Your mortgage is up for renewal in 2016.

If we haven’t seen or heard from you in the last year – or if you recognize one of the signs that it’s time for a tune-up – call us or send an email anytime. A mortgage in tip-top condition is the best way to get you where you’re going in your financial future!

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January Real Mortgage Story

Linda and Alan live in Durham Region. Alan works for the City of Toronto and Linda is self employed as a Personal Support Worker, leading a generally comfortable life. Linda’s parent’s also reside with the couple in their home, since Linda’s mother is ailing and fallen upon Linda for care.

Image by courtesy of money.usnews.com

In the mean time Alan’s fell sick quite suddenly and was unable to work for about a year. Due to the reduced household income, the couple started falling behind on their unsecured debt payments and as their circumstances worsened, they were also in arrears on their mortgage payments too. Also during this time:

• Linda’s mother’s health took a turn for the worse;
• There was a death of a close relative of the family; and
• Linda’s health started to detiorate due to all the stressful events.

In an attempt to get their finances back on track, the couple approached a mortgage broker, who gave them false hope and was eventually let down, due to the couple’s bad credit history.

Subsequently, Linda and Alan contacted the team at MiMortgage.ca in June 2015 and was able to obtain financing, enabling them to stay in their home, pay off all debts in arrears and also had extra cash for the much needed roof repairs too. The MiMortagage.ca team has adviced them on a 1 year plan to improve their credit and get them back to an “A” lender.

• Interest of 8.99 per cent for 1 year
• Monthly payments of $2112.65

Does the story sound familiar? Whatever your circumstances maybe, if you are falling behind on your mortgage and other debt payments, it might be advicable to speak to an expert at MiMortgage.ca to find out options available to you. Call us at 1 866 452-1100 to speak to an expert now!

Fictitious names have been used in order to protect our clients’ identities.

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House over $500,000? New downpayment rules in February.

Image by courtesy of expertbeacon.com

On February 15, 2016, minimum downpayment rules are changing in Canada – for homes worth more than $500,000. The change is straightforward: for any portion of the house price over $500,000, buyers will need to provide 10% downpayment for an insured mortgage. The minimum downpayment for the first $500,000 will remain unchanged at 5%.

How much difference could it make? Here’s a simple example:

Right now, you could get a mortgage for a $750,000 home with a downpayment of $37,500: a simple 5% of $750,000. Once the new rules kick in next month, you’ll need $50,000 downpayment for the same house: 5% for the first $500,000 ($25,000), plus 10% for the $250,000 over the limit (another $25,000).

The change was announced in mid-December by the new Liberal Finance Minister, Bill Morneau. While most Canadian homebuyers will be unaffected, the move is designed to protect Canadian homeowners by ensuring a stronger equity footing in their homes.

If there’s a house purchase in your future, let’s talk. You will need a mortgage approval before February 15 to qualify under the 5% rule, and your purchase must also close before July 1, 2016.

Here is a handy chart that outlines the impact of the New Minimum Downpayment Requirement

 

Purchase Price	New Downpayment Requirement	Old Downpayment Requirement of 5 percent
Up to & including $500,000	No change. 5% – up to $25,000	up to $25,000
$600,000	5.8% – $35,000	$30,000
$700,000	6.4% – $45,000	$35,000
$800,000	6.9% – $55,000	$40,000
$900,000	7.2% – $65,000	$45,000
$999,999	7.5% – $75,000	$50,000

Looking to buy a home and trying to make sense of the downpayment calculations? It’s worth having a conversation with an expert at MiMortgage.ca to findout how of downpayment you will need to have. Contact us now to speak to an expert.

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Are you ready for your holiday bills?

The holiday season has come and gone… and it’s time to face the reality of holiday bills!

Every year, you tell yourself that you will set yourself a budget for your holiday spending. Like millions of other Canadians, you exceed that budget and then depend on credit cards for your spending. Once the holiday bills start to pile up, you realize that the holiday financial hangover is far worse than anticipated.

Here are a few approaches that might help you ease the burden:

1. Pay debt with high interest – paying off bills that have high interest rates will save you from having to make additional payments on interest, on the long run.
2. Consolidate all your debt – speak to your mortgage broker or a financial planner and seek advice on how you can consolidate your debt to lower overall interest payments.
3. Plan out your finances for the year – look at your monthly living costs, create a budget for your living costs and add a small buffer for any unexpected expenses, that you may incur.
4. Explore options from debt experts – if you anticipate that you are going to be faced with difficulty in making your payments, get in touch with a debt expert immediately, to review debt repayment options available to you.

An article published by BNN.com gives information on how to tackle your holiday bills.

It’s a new year. Make it the start of a new financial life. Contact the team at MiMortgage.ca to speak to an expert. We’d love to help you crunch some numbers to see what kind of life you could be living, something to really celebrate about next New Year’s Eve!

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Happy New Year!

Best wishes to everyone from the team at MiMortgage.ca, for a fantastic 2016! May the new year bring you JOY, LOVE, HOPE & PEACE.

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Happy Canada Day!!

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