Mortgage 2.0

Your mortgage options can be infinite.

Beyond the traditional home purchase, there are a number of specialized mortgage programs to support all types of mortgage inquiries, including but not limited to: refinances/second mortgages/Home Equity Lines of Credit (HELOC), renewals, investments/second homes, self-employed, New to Canada, credit challenged and retirees.

Each and every client has their own specific mortgage needs and my job is to source the best solution with the overall lowest costs. By integrating the StrongFit Mortgage model, I find the product that works for you now and monitor it regularly so you continually get the most out of your mortgage year-over-year.

Below are some general points on some of the more common specialized mortgage programs.  To learn more or to inquire on others you may not see, please don’t hesitate to contact us.

 

Refinancing your mortgage can be a great alternative to other borrowing/loan options. If you have equity in your home and you would like to:

  1. Access cash funds
  2. Consolidate debt
  3. Do home renovations 
  4. Borrow at low interest to invest in high-return investments,

a refinance may be a solution for you.  There are other alternatives, such as second mortgages or Home Equity Lines of Credit (HELOCs), which can be considered.  With just a few mortgage and property details we can have your options outlined to you in a matter of minutes.

Specifics to note on a refinance:

  • You can refinance up to a maximum of 80% of your home’s value.
  • There are usually penalty fees associated with breaking your current mortgage contract. We will need to account for these costs in the evaluation.
  • When your mortgage is up for renewal, it’s a great time to consider your refinance options as you can save on penalty costs.

See what refinance options you have, complete the refinance survey now: REFINANCE SURVEY

*HELOCs and second mortgages have other factors to consider.  These would be covered on a case by case bases. 

A renewal notice is usually received from your financial institution four to six months prior to the end of your mortgage term. This renewal notice outlines what rates your lender is willing to offer, generally including rate options from 6-month to 10-year terms. They request that you select a term and send the notice back to their attention.

As easy as that process is, the rates can often not be inline with the current market rates. They can be as much as 2.5% higher than best rates, sometimes even more! On a $300,000 mortgage, a 2.5% interest rate difference will increase your monthly payment by $400.00.

We are available anytime to review your renewal notices to ensure you are getting the best mortgage value possible. The evaluation is fast and easy. Review our current rates or contact Irene for your evaluation.

Example: Mortgage renewal notice sent to a client from their lender in February 27, 2012. Chart below shows difference from TD renewal rate to the current market rates.


Mortgage Term TD Renewal Rate* Best Market Rate* Payment Difference
1-year 3.20% 2.75% $95/month
2-year 3.55% 2.90% $140/month
3-year 3.95% 2.79% $253/month
4-year 4.64% 3.09% $348/month
5-year 5.24% 3.19% $399/month
7-year 6.16% 3.95% $530/month
10-year 6.75% 3.95% $679/month
5-year variable 3.1% 2.80% $63/month

* Rates from February 2012


Investing in real estate is a great way to diversify your investment portfolio and build equity, usually with others covering the bill. Every property poses a different borrowing scenario, so each one should be assessed individually. The property taxes, rental income, strata fees, location, and other variables can impact the mortgage approval in various ways. We are happy to assess each and every property to give you the information you need to make a great investment.

Investor take-a-ways:

  1. A 20% minimum down payment is required on an investment property.
  2. A portion of the rental income can be used to qualify for the mortgage, but the total amount will depend on the lender and their rental property guidelines.
  3. You will want to speak with an accountant to address any tax implications such as interest and maintenance write-offs and future capital gains payments at time of sale.

Second homes, like investment properties, sometimes have unique borrowing requirements depending on the property, location and it’s intended use.  We always work to find the best lender and mortgage solution to get you the vacation home of your dreams or the safe and secure home for your child attending school.

Even though you get to call yourself the boss it doesn’t mean everyone will listen to you, especially the banks! The self-employed, although determined and hard working, tend to have to deal with unique considerations in the application process.

Business-for-Self, commonly referred to in the industry as BFS, will need to  show income verification with a minimum two-year history.  Typically due to write-offs, the income claimed is usually much lower than the actual take-home income. On a mortgage application, this impacts the maximum approved mortgage amount for the applicant(s). Programs are available to support BFS clients, however these can vary – depending on the lender, mortgage loan insurance guidelines and file details.  Compiling all income documents early on will help to simplify the process and help to determine the best strategy for lender approval.

There are special mortgage programs that will accommodate clients new to Canada, even if you have no Canadian credit history or have new employment history.

Mortgage insurers, CMHC, Genworth, and Canada Guaranty, all have initiatives that support individuals and families that are new to Canada within the last 5 years and have less than 35% to put towards a down payment. We have relationships with these insurers so that we are able to accommodate our newest Canadians with the full services they need for homeownership.

If you already own your home and have debt challenges, a refinance or second mortgage may help to ease the pressure and simplify monthly payment obligations to get your credit back in order.  We have a number of incredible lenders that offer great short-term lending solutions when traditional lenders may not be able to assist.  While implementing these short-term solutions, we will work with you behind the scenes to get you back on track towards getting approval with the traditional lenders sources.

If you are looking to buy, but have a poor or no credit history, we have lenders and partners we work with to get you approved and/or to help improve your credit status so that you can be ready to buy in the near future. There are some very simple steps you can implement to get you on the right path quickly.  Learn more about Credit Score Dos and Don’ts.

Contact us to discuss how we can help get you on an ownership plan now.

Many seniors own their home and have no mortgage outstanding, however, they may not have access to the cash they require for day-to-day living. Choosing to downsize, refinancing or implementing a reverse mortgage are options to consider.

Downsizing and a refinance are more common avenues for a retiree wanting to access their equity.

In the case with a reverse mortgage, the homeowner is able to borrow money against the value of his or her home with no repayment requirement until the borrower passes away or the home is sold. The loan is structured so that the amount owing will not exceed the value of the home over the life of the loan.

With these types of decisions, usually involving the homeowner and their extended family, it is important to involve the support of experts for advisement on the various options.  We want to make sure our seniors, grandparents, moms, and dads are getting the most out of their equity for a happier and more fulfilling retirement.

We are happy to help and together we will be able to find a solution that fits your needs. Contact us to learn more.