Mortgage Intelligence

Oshawa's Mortgage News Desk!


Leave a comment

Appraisal or Home Inspection… what’s the difference?

Often in a home purchase, home inspections and appraisals are both common practice. So what’s the difference?

A home inspection is often a condition of a purchase and is usually done to protect the homebuyer. A qualified home inspector will assess the physical condition of the home and all of its major systems to help you determine if everything is in good working order. You typically receive a schedule outlining what repairs are needed and by when.

An appraisal is an objective assessment of the home’s value to confirm that the property is suitable as security for the mortgage. This is rarely a problem, but lenders and insurers take on their own financial risk, and they want to feel confident in the property before they approve the mortgage.

If you are thinking about homeownership it’s best that you understand the different processes that you need follow from making an offer on a property and obtaining mortgage financing. Contact the experts at MiMortgage.ca at 1 866 452-1100 to speak to an expert for more information about mortgage financing.

Advertisements


Leave a comment

Six reasons why a second mortgage can be a smart move

Every month, you put money against your mortgage. Over the years, thanks to all those payments (and a healthy increase in home values), you’ve built up some equity. Way to go! Sometimes, we want to be able to tap into that equity. But new mortgage rules have made it harder to refinance a mortgage. No surprise, then, that we’re seeing a jump in second mortgage financing. Here are six reasons why a second mortgage might be a smart move for you too:

  1. A second mortgage can be a great way to access available equity without having to break your first mortgage.
  2. Ability in some cases to refinance up to 85 per cent loan to value.
  3. Second mortgage interest rates can be significantly less than credit cards. You can use the second mortgage to pay off your high-interest credit card debt, which will clean up any bruised credit and get you in a better position to qualify for the best rates later.
  4. Ability to use this lower-cost financing as you see fit – pay off debt, renovations, cash flow for your business, an investment, tuition, wedding, trip, or other major expenditure.
  5. That second mortgage can help you complete your purchase if your downpayment is a little short of what you need.
  6. A second mortgage is often easier to qualify for than a secured line of credit.

The value you’ve built up in your home is a wealth-building tool, and usually the best place to borrow funds when you need them. That’s why – for a growing number of financially savvy Canadians – a second mortgage can be a smart move! Get in touch with an expert at MiMortgage.ca to find out if this is the way forward for you.


Leave a comment

Who should get a mortgage preapproval?

A mortgage pre-approval can be an important part of your pathway to building wealth, giving you a real-world picture of your options: that is, your opportunities as well as your limitations.

A mortgage preapproval will tell you how much you qualify for (you may be pleasantly surprised), what your mortgage payments will be, and you’ll get an interest rate that will be held for a specific time period, like 120 days.

If you are purchasing a new home, then you’ll be shopping with a full wallet! You’ll know exactly what you can afford. You want to avoid reaching too far financially for a house you’ve fallen in love with, but you may also discover that you’re ready for the house of your dreams and didn’t know it. A mortgage preapproval tells you that.

In other words, a mortgage preapproval is always a good idea.  Remember, of course, that a preapproval isn’t a mortgage approval.  Make sure you have a financing condition in place when purchasing because your property needs to be assessed by your lender during the mortgage approval process.  You’ll need to provide the necessary information such as the offer to purchase, MLS listing, and any other documents required by the lender so they can assess the property.

Additionally, any planned financing might fall through if your circumstances change. So be careful with changing jobs, adding debt or missing payments, co-signing another loan, or using your downpayment money. You want to keep your financial situation squeaky clean while you’re getting ready to finance.

Wherever you are in your mortgage journey, get in touch, and we’ll show you all the possibilities.

Is your mortgage coming up for renewal in the next few months? If so, you can expect to hear from your lender. Remember that when your lender gets in touch with you, that is your signal to get advice. Staying with your lender might be your best option, but you should always use renewal time as an opportunity to look around and make sure you have the best deal. Contact the experts at MiMortgage.ca at 1 866 452-1100 for a review of your mortgage options.


Leave a comment

Seven signs you may need a mortgage tune-up

Did you know that just like your car or your home, you mortgage can benefit from a seasonal inspection!  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?

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 this year.

If you haven’t had a mortgage review in the last year – or if you recognize one of the signs that it’s time for a tune-up – then get in touch with the experts at MiMortgage.ca. And if you know someone who could also benefit: consider this a coupon for a free inspection for a friend or family member! A mortgage in tip-top condition is the best way to get you where you’re going in your financial future!


Leave a comment

Home Appraisals 101

When you get a new mortgage, an appraisal of the subject property is often required by your lender. An appraisal is an unbiased determination by an accredited appraiser of the estimate of the current fair market value of the property. The appraiser provides the lender with a written opinion of the property’s value, and is client-paid for most refinances, switches, conventional mortgages and only in exceptional situations, high-ratio mortgages.

Appraisals are required for refinances because you can only refinance up to 80% of your home’s appraised value, and for some purchases and switches because the property becomes the lender’s security. Keep in mind that when a realtor gives you an evaluation of a property’s value, that should not be considered an appraisal for financing purposes. And given the housing market in some parts of Canada are seeing multiple offers, some buyers are paying well over asking and the appraiser may determine that the property has a lower value, which could affect the buyer’s financing. As always, please get in touch with the experts at MiMortgage.ca at any time if you have any questions. We’re here to help!


Leave a comment

Low-Interest Credit Card for Homeowners.

9.9% interest plus earn reward points! If you typically carry a credit card balance, you can reduce your interest by 50% or more with our Centra Gold Card. By paying less interest each month, you can work towards becoming debt free sooner. Plus you earn reward points that translate into 1% cash back on your purchases.* Let’s discuss how this card can help you save money during your mortgage years and keep your credit sharp! Contact the team at MiMortgage.ca at 1 866 452-1100 for more information.

*REWARDS: Eligibility for rewards and/or account credit is subject to the terms and conditions of the Collabria MySelect Rewards and Cash Rewards programs. For full terms and conditions, visit http://www.collabriacreditcards.ca/webres/File/Rewards Terms/RTC-0415-FCG – MySelect Rewards Terms and Conditions.pdf. The Collabria Mastercard is issued by Collabria Financial Services Inc. pursuant to a license from Mastercard International Incorporated. Mastercard and the Mastercard Brand Mark are registered trademarks of Mastercard International Incorporated.


Leave a comment

Five credit habits that can boost your score

Your credit score is essentially your passport to financial opportunities. With a possible range of 300 to 900, your score tells lenders what kind of a risk you are likely to be as a borrower. A low credit score can prevent you from getting the lowest mortgage rate, or even from getting a mortgage at all. But here’s the thing, this important factor in your mortgage negotiation is entirely within your control. That’s why it’s important to know the key credit behaviors that can boost your score or keep it high:

  1. On time, all the time. The single biggest factor in your credit score is having a timely bill payment history. Never let a bill get past due. That one habit is your single biggest game-changer. Set up automatic payments if that will help.
  2. Know your limits. Your credit score is based on your balances relative to your available credit. Look at your credit limits and try not to use more than 30 per cent of the available amount. If your limit is $10,000, try to never let the card go higher than $3,000.
  3. Don`t let it happen. Don’t ever let any bill go to Collections, even if it’s for a small or disputed amount. These black marks on your credit are hard to erase. If it’s happened, be prepared to explain why, and be sure it’s paid in full and reported to Equifax.
  4. Be selective. When you’re asked – would you like to apply for our Store Card to save $X dollars on your purchase today – don’t do it; the high rate that goes with that card isn`t worth your savings on that particular purchase.
  5. History is important. Make sure you do have a credit history. You may have a low score because you do not have a record of owing money and paying it back. You can build a credit history by using a credit card.

If you are wondering how to polish up your credit, we would be happy to review your situation and outline your best options for credit improvement. If you want to get a mortgage while you work on bettering your score, we can also advise how that may be possible. Contact the experts at MiMortgage.ca at 1 866 452-1100 to speak to an expert or apply online now.