Let’s face it, when it comes to mortgages you have more options than you ever have before. When you’re self-employed, a lot of these options get taken out. Here were going to talk about mortgages for the self-employed, how to figure out which ones right for you, and how to make sure that you’re not paying more than you have to. Just because you’re self-employed doesn’t mean you have to get a bad deal! Working with one of our Toronto mortgage brokers, you’ll be able to see big savings over what you’ve probably been offered already. Let’s get started!

What is a conventional mortgage?

A conventional mortgage is your usual bank loan. You’ll get it from a traditional lender, you’ll have to deal mostly with customer support from overseas and with so many cases, things could go wrong. It’s harder to get this kind of mortgage if you’ve ever had trouble with your credit, paying your bills or with finances in general, you may not be a good fit. This will vary from lender to lender, but many will run along these guidelines:

• 30-38% Debt to Credit Ratio (your debts can’t exceed 30-38% of your available credit)
• 30-38% Debt to Income Ratio (your monthly debt payments can’t exceed 30-38% of your monthly income)

You’ll of course have to be able to prove that you can repay with proof of employment, income, assets, etc.

What’s a private mortgage?

A private mortgage is a lot like a conventional mortgage, but instead of getting your bank to give you the loan you’ll get it from a private lender. These are usually more receptive to people looking for mortgages for the self employed; but you’ll still need to be able to show that you have an income to repay your mortgage. Working with one of our Toronto mortgage brokers will help you know if this is the right way for you to go.

Who offers mortgages for the self-employed?

Every lender basically has this available, but you’ll want to make sure they’re friendly to you kind of borrowing. This isn’t always easy to do, and that’s why you should work with us. We’ll help you take an honest and objective look at your chances.

Do you have to get a mortgage for the self-employed?

Just because you’re self employed doesn’t mean you have to go this route. You’ll want to first look at your credit report and talk to one of our brokers. We’ll help you look over your finances, tell you about the benefits of these and if this is right for you. Everyone is different, so you’re going to need to really talk with us first – we’ll help you get a deal that fits your budget and your needs. Just because you’re self employed doesn’t mean you should end up with a bad deal, so don’t! Give us a call today and see what we can do for you.

If you are struggling to manage debt and make payments, a debt consolidation loan is a solution you can opt for. With debt consolidation, you have just one payment every month and you can catch up to your debt more flexibly.

The interest rate you pay on this loan is also lower than your credit card rates. But what should you do before applying for the loan? If you are looking to pay off your credit card debt through this loan, close your account first.

Financial advisors say that people most often pay off their credit card debt but do not close their accounts. They end up using their cards again, and accumulate more debt, which includes the reused cards and the consolidation loan.

It is also important that you create a budget – know how much you need to keep aside for loan payments and other expenses. Also make sure you check your credit reports. Before making you the offer, the lender will go through your credit report.

Be prepared to explain any negative mentions on your report, and spend some time to correct any errors in it. This can make a big difference in deciding whether your loan is approved or denied.

Collect all your bills and determine which ones you would like to include in your debt consolidation loan. Generally, auto loans and home mortgage payments are not included in these loans. Identify lenders that offer competitive rates, and take care not to apply to too many different lenders as this may adversely impact your credit.

If your application is denied, ask your lender for an explanation. You could also seek help by discussing other debt repayment options with a reliable credit counseling agency.

Selling one home and using the proceeds to fund the purchase of another is not uncommon. But what if your new home purchase is closing before the old one’s being sold off?

You will definitely need a short-term financing solution to aid your purchase. Here’s where bridge financing comes in.

Bridge financing gives you access to a short-term loan against the equity of the home you are selling. Once the sale of your home is complete, this loan gets paid. The home’s equity is calculated by deducting the costs of paying off current secured credit lines and/or mortgages, legal fees and commissions, from its sale price. You can get a bridge loan from the lender/bank that is providing you with the mortgage for your new home.

The interest rates on bridge loans are typically one to three percentage points higher than bank’s prime lending rates.

If you are buying and selling on the same day, it is best to have a bridge or some sort of interim financing in place. This is especially true if the buyer:

• has put down a small deposit
• is buying a home for the first time
• requires a first and second mortgage

At a time when there is a rush of young first-time buyers, there is a greater likelihood of them taking a longer time to meet mortgage conditions. So it is advisable that you have some funding solution that you can turn to when you plan to buy and sell your home simultaneously.

Before you start looking at home equity loans, or Canadian second mortgages, there are some things you need to know. When you choose us as your Toronto mortgage broker we’ll be able to help you understand everything you need to know – but until then, we’re going to go over some super important points here. From understanding the differences between a home equity line of credit and a second mortgage, to what you can expect from your terms when you shop on your own, we’ll cover it all here. Let’s get started!

What is a Second Mortgage?

A second mortgage and allows you to turn the equity in your home into cash you can use – remodel your home, buy a car, pay for your kids Uni courses, just make sure that whatever you’re using it on will give you some sort of return. A second mortgage is not free money and you’ll want to be very careful about how you spend it. Working with one of our Canada mortgage brokers, you’ll be able to figure out what’s right for you. You may not even need a second mortgage – you might just need to refinance your first one.

What is a Home Equity Line of Credit?

A home equity line of credit is different from a second mortgage, instead of getting one big lump sum payment like you would with a second mortgage you’ll get a line of credit instead. You’ll have a special checkbook or credit card to draw on your home’s equity. You’ll still want to keep careful track of everything, just like you did with your checking account or credit cards. It can be easy to lose track so make sure you make the effort!

How Much Equity do You Have?

But before you choose between these two forms of equity loans, you’re going to need to figure out how much equity you have in your home. Start by looking at the latest appraised value of your home. From here, you’ll need to subtract any liens or mortgages you have against the property – after that you’ll know how much equity you have. But the fun doesn’t stop here!

You can only borrow up to 80% of your available equity, but no one ever wants to borrow this much of their equity! You’ll need to be very careful of borrowing against your home – you never know when you’re getting the wrong end of the stick.

So, Which One is Right for You?

Figuring out which one is the right one for you can be difficult – and that’s why you should work with us! When you work with us, you’ll work with some of the best Toronto mortgage brokers around. We’ll help you figure out how much equity you have, how much you can borrow, and if now is the right time to borrow. After all, it takes years to get as much equity as you have, you need all the facts to make the best decision for you. Visit our 2nd mortgage page today to learn more!

When it comes to private mortgages you might think that you know all the facts, but you might not! Here we’re going to cover three interesting things that might make your life easier when you check them out, and you’ll be a little better prepared to get out there and start borrowing. Here we’re going to talk about how different inquiries to your credit report can affect you, if paying off old collections will hike your credit score and if your credit score really only changes once a month or not. Let’s get started!

“Paying Off Old Debts in Collections Will Improve My Credit Score”

This depends! If it’s a really old debt and it’s buried deep in your credit report it may actually not bear that much on a lender’s decision to give you a private mortgage. But if you start paying it off but you haven’t paid it off in full and you haven’t been able to get them to remove it from your report just yet, you may see a negative impact. Sometimes leaving things in the past is the best thing you could do – if you’re not sure what you should do, talk to one of our Canada mortgage brokers.

Your Credit Score Only Changes Every 30 Days

Totally not true! Credit reporting agencies actually have different reporting cycles – so if a company reports your debt at the beginning of the month another company could report your account activity in the middle of the month or at the end. Everyone is different and this is one area of your credit report that doesn’t deal in absolutes. You’ll want to be very careful about this part of things, and not obsess about checking it every part of the month. If you’re really worried about things, consider getting a subscription to watch your credit from one of the major Canadian credit bureaus like TransUnion.

“Multiple Inquiries from Lenders Will Wreck Your Credit”

You’ll actually have a window where this won’t be a huge problem when it comes to private mortgages (or any kind of mortgage) – but you will want to make sure that you’re applying for mortgages all within a 2 to 4 week window. This way you’ll be able to only have one mortgage inquiry on your credit report and the other 10 applications you put out won’t show up behind it. They’ll never know if you applied for one mortgage or 15, which is great for you.

You’ll want to work with one of our Toronto mortgage brokers when you’re trying to figure out how much you can borrow. After all, even a private mortgage can be hard to get if you don’t know what you’re doing. We’ll help walk you through all that paperwork and make sure that you understand all of your options. If you need help with your credit or if now is just not the right time for you to apply for a Canadian private mortgage, as your Canada mortgage broker we’ll help you figure things out.

If you’re buying your first home, your second home, or you just want to save on your next mortgage, working with the Canada mortgage broker like us can help you save big. Everybody needs a mortgage to buy real estate (and if you don’t, count yourself lucky!), but most of us just aren’t all that great at negotiating. Either way, you’re going to have to try and figure out whether you should apply to bank for a loan or if you should work with us. Here we are going to talk about all the advantages of working with a mortgage broker, what we can do for you, and everything else that you need to know to make a good decision. Let’s get started!

What’s the Difference between a Mortgage Broker and a Bank?

When you work with a bank you’re working with a loan officer, an employee of the bank, someone that’s sole job in life is to extract the maximum amount of money out of you for the longest possible amount of time. Sounds fun, doesn’t it?

But we’re different. We’re not employees of a bank and we work for you, not for them. We’re here to make sure that you’re getting the best rate for your mortgage – after all, why should you have to pay more? Even if you’re looking to get a private mortgage, you need to know that you’re getting impartial advice!

So Mortgage Broker Isn’t a Loan Officer? 

Nope! They, and we, work for you! You won’t have to worry about us just showing you the offers that benefit us – because after all we’ll offer you a variety of choices to choose from. Low interest loans, great terms, private mortgage, conventional mortgages, whatever you’re looking for we’ll help you figure it out. Don’t end up with a bad mortgage just because you don’t know where to find a better one – that’s what we’re here for.

Connections Make the Difference

When it comes to getting you the best mortgage rates, connections really do make the difference! Why should you get stuck with a bad mortgage when you have a lot of options? Interest rates right now are at all-time lows, and you’ll be able to get a great rate and a great private mortgage if you know where to look.

We have extensive connections throughout Toronto and Canada to help you get the mortgage that’s right for you. We’ll take your offer around to many different lenders and help you understand if this is really the right thing for you. Bad credit, low interest, easy early repayment terms, we’ll help you find the right one.

Work with Us Today and Save!

Call us today and see how you can save! Remember, we work for you, not the banks. We’ll help you understand all of your options. Don’t just take your lender’s word for it, explore your options and find the best deal.

The Canada mortgage is a fickle beast – there are some protections in place to keep you from losing your home but in the end it’s up to you to make sure that you’re getting the best deal. Keeping your interest low, avoiding excess penalties, and all the dirty tricks that a lender can throw at you are all part of the process. Working with us as your Toronto mortgage broker can help you navigate these tricky waters, save money, and find the right mortgage for you. Whether it’s a Canada conventional mortgage, private mortgage, or something in between we’ll be able to help you find the one that’s right.

How Much Can You Afford?

Your first stop on the Canada mortgage crazy train is figuring out just how much you can afford. Be honest with yourself, it’s okay not to be able to afford your dream house just yet. You’re going to need to take a realistic look at your finances and ask yourself this question: “Am I dreaming?” Just because you get approved for a high mortgage amount doesn’t mean you should actually buy a house for that much money. You’re going to need to know that you’re really getting the deal that fits your finances, not your dreams.

Always Get Pre-Approved

You’ll need to always get preapproved before you start looking at houses. This way you’ll know how much of a budget you have to play with. You’ll be able to avoid heartbreak of trying to buy a house that you can’t afford just yet, and you’ll be able to make sure you don’t lowball it so far that you’re getting a house that’s all wrong for you. Being prepared, understanding your budget and knowing that you have that financing all lined up for you is the best thing you could do. When you work with one of our Toronto mortgage brokers you’ll get all the help you need to make sure you’re getting preapproved and on the road to buying a home.

Explore All of Your Options

Don’t just work with the first mortgage broker you talk to, and don’t just work with the first lender that makes you an offer. Get out there and do research online, explore all of your options and know what kind of a deal you can get. We’ll make sure that you have a variety of lenders to choose from and help you understand the difference between a low interest mortgage and a Combo VRM jumbo loan.

Work With Us

When you work with us you get all the help you need to get the mortgage that’s right for you. Don’t just settle when you can take advantage of lenders FIGHTING to do business with you! Even if you have bad credit, we’ll still be able to help you figure out a deal that works for you. Give us a call today and see what happens when you have someone on your side that knows how to find the best deal.

Everyone wants to get on the road to being debt free – and that’s exactly why you’ll find so many debt consolidation scams out there. That’s why it’s so important that you work with a Toronto mortgage broker like us to consolidate your debt. We’ll be able to help you find a second mortgage, a home equity line of credit, a way to pay off your debts without having to worry about a company that WON’T help you out. It’s your equity and you’ve worked hard for it – the last thing you should have to worry about is it all going down the drain because you didn’t know any better.

Do They Make Guarantees Without Asking About Your Needs?

The first sign you’re working with a shifty company is when they make guarantees about “making debts disappear” without even talking to you about your circumstances. Do they even KNOW what you need? Debt consolidation is different for everyone and you can’t just throw money at it because you feel like it. You have to have a plan of action, and you need someone that knows what they’re doing. With a Canada mortgage broker like us you’ll be able to get the money you need to move forward.

Ask Your Creditors Directly if They’ll Work with a Debt Consolidation Company

You will always want to talk to your creditors directly to see if they will even talk to this company about debt consolidation. Sometimes they won’t work with certain agencies, sometimes they won’t even consider rolling down debts at all. Everyone is different and it’s important to talk to them before you even start approaching a debt consolidation company – that way you can save both time and money and work towards the right solution.

Speak with Your Creditors and Insure They’ve Accepted the Deal

After the company says that they’ve negotiated your deal, you’re going to want to talk to your creditors to see if the company ACTUALLY did what they said they were going to do. Many scammers will tell you that debt consolidation means that you shouldn’t talk to your creditors any more, they’re taking control, tbu this is not the case. If you don’t keep tabs on what’s going on you could easily end up in more debt and without the money you’ve been giving the debt consolidation company. Don’t let that happen to you!

Check in Every Month and Know Where Your Money is Going

Every month you’ll want to check in with your creditors to make sure that your debt consolidation company is keeping up with the payments you’re sending them. You may think that you’re safe after a few months, maybe even a year, but you’ll want to keep on top of it. It only takes one month for them to get behind before you get into some serious trouble.

If you need money for consolidating your debts, let us help. We’re Canada mortgage brokers that will work hard for you, helping you get the money you need to move forward.

When it comes to getting the right home equity line of credit, you need to know that interest rates are going to be low for a little bit. Right now interest rates are projected to stay in the 3% to 4% range for the next 2 to 3 years, which means that you are going to be able to save big on your next home equity line of credit. You’re going to need to make sure that this loan is on the up and up; it’s not uncommon for lenders to add in weird penalties, exorbitant fees, and other “extra” ways of making money off borrowers. Make sure you speak with one of our Toronto mortgage brokers before you get started.

What is a HELOC?

A HELOC, or home equity line of credit, allows you to tap into the equity in your home without selling it. Unlike a second mortgage or other kinds of home equity loan, you’ll be able to borrow as many times as you need – as long as you keep paying, of course. Most HELOCs have a term limit, just like every other mortgage you’ve had before. You’ll still have interest, monthly payments to make (only if you’ve already borrowed, if not you won’t have to worry about this) and the lender to deal with. It’s important to work with one of our Toronto mortgage brokers to make sure that you’re getting the best rate for you.

Why is now the right time to borrow?

Right now interest rates are at the lowest point they’ve been at in almost a century. You just won’t be able to find a better time to borrow them right now, it never hurts open the HELOC for a rainy day. If you don’t borrow, and you don’t pay. It never hurts to have that rainy day fund, and with many analysts saying that is around the corner it could be the best thing you ever did.

Always know the terms of your HELOC

Before you take out any kind of equity loan against your home you need to know the terms. Don’t just trust your lender or your mortgage broker! Do your research, understand what you’re getting into, and understand what’s expected of you as a borrower. The more you know the better off you’ll be.

Should you get a HELOC?

Everyone’s different, and we really can’t give you advice without speaking with you first. If you’d like to know more about home equity lines of credit, give us a call! We’ll be able to help you understand all of your options as a borrower, find a lender that matches your needs best, and make sure that you’re getting a great deal that fits your needs. Don’t get a raw deal just because you don’t know what you doing, let us help! Call today and see the HELOC is right for you – why spend more than you have to?

No one wants to pick the worst mortgage, but what do you need to consider when you’re looking at second mortgages, and mortgages in general? As Toronto mortgage brokers we know that there are many traps that people can fall into when they’re trying to find the mortgage that’s right – and when you don’t know what they are you can easily end up paying a lot more than you should have to. Here we’re going to go over what you need to know, so let’s get started.

What Term is Right for You?

Mortgage terms aren’t exactly what you might think, it’s not what you’re paying each month, but actually the length of time you have to repay the loan. Think of it like the ticking time bomb; can you disarm it quickly or do you need a lot of time to pay it off? Things like that can put a serious crimp in how long and how much you’re going to have to put into your second mortgage or your first one, so be careful!

Thinking Ahead Saves You Time and Money

Thinking ahead will help you figure out if this is the right mortgage for you. If you’re just getting a second mortgage to fix up your home so you can sell it in a year, you’re not going to want a 5 year mortgage term – but if you’re not sure if your home is going to sell you may want to. One of our Toronto mortgage brokers will be able to help you anticipate problems down the road.

Fixed or Variable Rate Mortgage?

A fixed rate mortgage is going to be great for people that need to take their time repaying, it’s one of those in for the long haul sort of things – but if you don’t see yourself staying in place or you’re going to repay quickly you may want to look at a variable rate mortgage. You’re not going to want to pay this off slowly either, because once the term comes due you may have a balloon payment to contend with. Again, one of our Canada mortgage brokers will be able to help you figure out which one is right for you.

We’ll Help You Shop Around

Everyone can use a little help shopping around, and we’ll help you understand what your options are. We’ll go to different lenders to make sure you’re getting a great price on a mortgage that fits your current and future financial needs; why deal with a surprise if you don’t have to?

Call Today

From figuring out how much you can spend to how much you’ll spend if you select a specific type of mortgage, we’ll be there through every step of the process to make sure your next mortgage is successful and benefits you first and foremost. Why spend more than you have to when you can get a 2nd mortgage that’s tailored to your needs? Let us help you today!