Mortgage Intelligence

Oshawa's Mortgage News Desk!


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This is how to buy and renovate

Many homebuyers looking at older properties find themselves in a common predicament: they’ve found a property that suits them, but it needs some costly and immediate upgrades.  Good news. We’re got a mortgage that will keep you financially afloat!

A “Purchase Plus Improvements” mortgage adds the cost of those immediate renovations into your mortgage, so you don’t have to rack up credit card bills or sell investments to pay for the upgrades.  This mortgage will cover the sale price of the home, plus any renovations that would increase the value of the property, up to $40,000. This way you can spread your payments over the life of the mortgage and have a cost-effective way to get into your dream home. You can then use your pre-payment privileges to pay the renovation off faster.

Here is an overview of the process:

  1. Obtain cost estimates for the upgrades.
  2. An appraisal with two separate values will be required: first the value of the property “as is” and the estimated value of the property once the improvements are completed.
  3. Your lender will add the estimated costs of the renovation into your mortgage.  The committed amount of the mortgage will be advanced to your solicitor, who will be instructed to hold back the renovation funds until the work has been completed and inspected.
  4. Complete your upgrades; funds are released upon completion.
  5. There are options we can discuss for carrying your expenditures until the funds can be released.

 So if you find a home with “great bones” that can be renovated into the home of your dreams, get in touch with the experts at MiMortgage.ca early. We’re here to make sure your homebuying journey has a happy ending.

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Get the best mortgage rate: Five Tips to “financial fitness”

financial-fitness

Image by courtsey of towpathcu.com

When the time is right for you to buy a home, make sure you are financially fit and eligible for the best possible mortgage rates. Here are our top five tips to boost your “financial fitness”:

1.     Whip it. Whip your credit rating into shape: pay your bills on time… every time.  Keep your oldest credit card for its history, and make sure it is always paid on time. Try not to apply for new credit.

2.     Follow the 33% rule. Never run up a credit card or line of credit past 33% of its available limit. If you’ve got a $3000 limit, then $1000 is your absolute ceiling.

3.     Cash is king. Gather up the maximum downpayment possible. The more money you put down on a home, the better.

4.     Be prepared. Put together a file folder with the following: pay stubs, or proof of self-employment income, list of debts and assets, and current bank statements. We can advise what documents you will need.

5.     Start a dialogue. Talk to an expert at MiMortgage.ca about your plans. Find out if you can pre-qualify, and ask about how you might qualify for the best possible rate.

The process of qualifying for a mortgage begins long before you decide to buy a home! But if you make a plan to improve your financial fitness… you’ll have no shortage of lenders willing to compete for your business. Contact us now to get on the right path to financial fitness!


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Rent-to-own for beginners (7/7)

How does rent-to-own serve a person with bad credit?

If you are looking to buy a home on rent-to-own and want to find out more information on how you can improve your credit, contact the mimortgage.ca team today. To get pre-approved today, apply now through our secure online website or speak to one of our agents at (866) 452-1100.


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Rent-to-own for beginners (6/7)

How are rent-to-own payments structured?

 

If you are looking to buy a home on rent-to-own and want to find out more information on how payments are structured, contact the mimortgage.ca team today. To get pre-approved today, apply now through our secure online website or speak to one of our agents at (866) 452-1100.


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Rent-to-own for beginners (5/7)

Can I choose the home?

If you want to choose the home you are looking to buy for rent-to-own and would like more information, contact the mimortgage.ca team today. To get pre-approved today, apply now through our secure online website or speak to one of our agents at (866) 452-1100.


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Rent-to-own for beginners (2/7)

How do you know if rent-to-own is appropriate for you?

If you have a stable monthly income and also have money towards a down payment but unable to get a mortgage due to bad credit, you may still qualify for the rent-to-own program.

If you are considering rent-to-own and would like more information, contact the mimortgage team today. To get pre-approved today, apply now through our secure online website or speak to one of our agents at (866) 452-1100.