Month: March 2020

First Time Home Buyers in Ontario and anyone New to Canada has a goal of one day of buying a home, but most of them are not sure how to make that goal happen soon enough. That’s where Mortgage Brokers are able to help clients who are looking to buy a home, by helping them put an end to paying rent and putting that money towards a Mortgage of their own.

But for First Time Home Buyers in Ontario or anyone New to Canada, it is recommended to start off buying a home at a price that is affordable, you don’t want to swing for the fences and go all in and try to buy that dream home the first time around. It is wise to build up to that point, it may take you 3 to 5 years or more to get there.

The basic outline and smart decision would be to first stop paying rent and start paying a Mortgage. This will allow you to own an asset and build up equity so you can leverage your home (which is an asset). Then you can look at selling it for more than the price you bought it for originally, and then move up to a larger home if needed.

A Mortgage Broker can help you with the building that 5 years plan so you can achieve that dream home soon that you think. Paying rent is not a bad thing, but it should not be permanent. Paying rent should be the grounds for having a place to live until you can save up for a large enough of a down payment so you can have a place of your own. The problem is most people have to find ways to build up savings for a down payment, but clients who work with a Mortgage Broker get access to strategies which are customized to your situation by leveraging proven saving and investing techniques to build and further your down payment so you can buy a home.

If you were to do the math on paying over a 5 year period, you would see that all that money would be better put towards a Mortgage and having your own home. Let’s just say you are paying $1,200/month for rent, over a year that would be $14,400, and over 5 years that would be $72,000! None of this money will come back to you. All of this money will be put towards having a place to live and spent on rent, where the landlord will be paying down their own Mortgage because they own the home.

As a First Time Home Buyer in Ontario, a smart decision would be to be buying a home of your own so you can put these rent payments towards your own Mortgage, you can start building equity in your home through lowering your Mortgage balance, and after 5 years you can lower your monthly mortgage payments and save even more money.

If you are a First Time Home Buyers in Ontario or New to Canada and you want to get more information because you are looking to buying a home one day then you need to contact one of our professionals at Greater Toronto Mortgages. We have helped many First Time Home Buyers in Ontario buy a home and we can help you achieve your dream of homeownership too.

Call Greater Toronto Mortgages today at 905-405-1666 to Book an appointment for a FREE consultation.

If you are thinking about buying a home, one of the first things that you will need to do is get pre-approved for a mortgage. You could just call your bank and see what they are willing to offer you but a better idea is to hire a mortgage broker and get access to the best mortgagee options on the market. Here are just a few of the reasons why you should hire a mortgage broker:

They work with many different lenders

If you contact your bank for a mortgage, you have essentially limited yourself to one lender and there is no competition. But a mortgage broker works with dozens of lenders and they can shop around to help ensure that you get the best rate and terms for your situation.

They can negotiate on your behalf

Especially if this is your first mortgage, it can feel intimidating to ask a lender to give you a better rate than the one they have posted. Mortgage brokers however never feel intimidated about asking for a better rate if they know they can get you one. They have long-term relationships with the lenders that they work with and know when it is possible to get you a better deal.

Mortgage brokers can help with specialty mortgages

It is not always easy to get approved for a mortgage. People who have poor credit, are self-employed, or new to the country may very well find themselves turned down for a mortgage when they apply for one with a traditional lender. Mortgage brokers, however, have connections with specialty lenders who serve a client that the big banks just can’t. If you’ve been turned down for a mortgage by your financial institution, then it may be time to hire a mortgage broker.

Gain access to the equity in your home

Mortgage brokers aren’t just for people who are looking to purchase a home – they are also for people who already own homes and who are looking to access their home’s equity. By hiring a mortgage broker, you can gain access to the equity in your home through a number of different strategies including refinancing, second mortgages and reverse mortgages. Your broker can review your situation and provide you with a strategy that makes the most sense for you.

If you are ready to take advantage of these and another benefit by hiring a mortgage broker, then Contact Greater Toronto Mortgages today @905-405-1666  for a consultation!

How to Refinance Your Mortgage with Bad Credit?

Did you know carrying too much debt can lead to a poor credit score rating? Yes, it is true. If you are carrying too much debt your credit score will be impacted greatly. Especially, if you maintain high balances on your outstanding debts. Having your debt utilization close to 100 percent or over of the limit you have on your outstanding debt will result in a low credit rating.

So if you are drowning in debt, then consolidating your debt with a mortgage refinancing will help increase your credit score rating and provide overall savings in your monthly payments. But a common question as by clients is; how can you refinance your mortgage if you have bad credit? The simple answer is that it can be done, but there are a few things you need to understand first.

What is a mortgage refinance?

 Refinancing your mortgage simply means breaking your first mortgage and then getting a new one. When a mortgage refinance is done for the purpose of debt consolidation, the new mortgage will be for the amount still owing on your home, plus the amount of debt that you are paying off with your mortgage. Technically, your total debt does not go down when you consolidate with a mortgage refinance but the amount of interest you have to pay does, which results in lower monthly payments and monthly savings. This will help you to be able to pay off your debt more quickly, which in turn will help to repair your credit.

How much debt can I consolidate with a mortgage refinance?

That depends on how much equity you have in your home. Your home equity is the value of your home minus how much you owe on it. Most lenders will allow you to use up to 80% of your home’s appraised value when you refinance. That means if your home is worth $500,000 and you still owe $200,000, you will be able to pay off up to $160,000 with a mortgage refinance.  However it 80% is not enough to help with your refinance amount then we have access to special lenders who are able to go up to 85% and even 90% of your homes appraised value. Even if that doesn’t work for you then we can look at a customizable refinance plan for you to help with consolidating your debt.

Are there any drawbacks to this?

Before you decide to pay off debt with a mortgage refinance, it is important to understand that you are guaranteeing the loan with the equity in your home. That means, if you become unable to make the payments, you risk losing your house and putting yourself in further financial stress.

If however, you can commit to making regular payments (and not taking on new debt), not only will you get out of debt faster, but you’ll be repairing your credit at the same time. There is a risk – but only you can always discuss with us to understand if it is worth the risk.

How can I refinance my mortgage if I have bad credit?

The truth is that with a traditional lender like a bank or a credit union, you may not be able to. But as a mortgage broker in the Greater Toronto Area, We have access to many reputable alternative lenders that specialize in helping those with bad credit.

If you are ready to take control of your credit, getting a mortgage to refinance may be the way to do that.

Call us today @905-405-1666 to set up an appointment.