When is the Right Time to Hire a Mortgage Broker?

A mortgage broker is a professional widely recognized for services in acquiring a profitable mortgage deal. If you are a first time home buyer, real estate investor or an individual looking for the best mortgage deal in the market, you need the services of a qualified and experienced mortgage broker. They ensure that you land a deal that suits your mortgage requirements precisely.

When to Hire a Mortgage Broker?

A Mortgage Broker Vancouver, BC plays a critical role in bargaining the best mortgage deal in the market. Therefore, the moment you decide to buy your first home or invest in real estate, hire the services of a reputed and professional mortgage consultant in your region. It is important to discuss your financial position, investment criteria, expectations, market analysis along with dissection of the available rates in the market. The association with a mortgage broker right from the beginning till the very end helps in determining the final outcome of the mortgage deal process and in securing a profitable loan.

Mortgage Consultant or Bank

It is always better to hire the services of a mortgage broker in comparison to a bank because of the competency offered by them. They are a lot more dedicated and competent in ensuring that you get the best from the market. They scout the market evaluating the different mortgage offers and securing the best interest rate that suits you right. Another important reason that helps mortgage consultants score over financial institutions such as banks is that they have connections. A mortgage broker or a mortgage consultancy firm is widely networked. They closely work with a wide network of banks and lenders in the market. They stay updated with the latest news related to mortgage deals, real estate etc.

4 Ways to Become Mortgage Free and Pay-off Your Mortgage Faster

For most people, a mortgage is the largest financial obligation they’ll ever have in life. Unfortunately, that means it’s probably also the longest. When you buy a home in your 20’s, you can look forward to paying it off perhaps in your 40’s - perhaps longer if you upgrade your home and renegotiate a higher mortgage. However, there are ways to pay off your mortgage faster, allowing you to attain that coveted “mortgage free” status sooner than you realize.

Here are 4 mortgage-free-sooner strategies by Mortgage Broker in Vancouver:

Ways to Pay Off Your Mortgage Faster #1:

Increase Your Payments

When you set up your mortgage payment, you’re told what the payment amount will be. This isn’t the only payment amount you can make, though. Why not bump it up just a little bit. For example, a monthly payment of $300 bumped up to $350 probably won’t break your bank but, by the end of the year, will have paid back another $600 onto your mortgage more than you were expecting. That’s no drop in the bucket! It adds up. In a decade, that’s $6,000 you’ll pay back sooner.

Ways to Pay Off Your Mortgage Faster #2:

Increase Your Payment Frequency

This strategy is sometimes offered by your lender or mortgage broker when setting up the loan. If it’s not offered, you should definitely ask. Accelerated payment schedules increase the number of mortgage payments you make in a year (i.e., you might make two payments a month instead of one). As you can imagine, this is a quick method to pay down your mortgage sooner – just make sure you can afford the sustained frequency increase.

Ways to Pay Off Your Mortgage Faster #3:

Lower Your Interest Rate

A small change in interest adds up over time and can mean thousands of dollars extra or saved in what you have to pay. Therefore, when it comes time to renew your mortgage, work with your mortgage broker to ensure that you are getting the most favorable interest rates available.

The first three ways are ways to consistently pay down your mortgage faster. Here’s one more:

Ways to Pay Off Your Mortgage Faster #4:

Make an Additional Payment

When you get extra money, put some of it toward your mortgage. For example, if you get a tax return or a bonus at work or even a small inheritance, put some of that money toward your mortgage as a single “lump sum” payment. One or two of these a year may not seem like a lot but they add up.

Your mortgage can take years to pay off… but it doesn’t have to take as long as you expected. Use these ways to pay off your mortgage faster.

Why You Should Get Pre-approved for a Mortgage

More often than not, a home buyer with a pre-approved mortgage stands more to gain than the home buyer without it. 

This is because most home sellers are apt to view purchase offers supported by a pre-approved mortgage more positively. 

In a nut shell, mortgage pre-approval is a great negotiating tool. 

With a mortgage pre-approval, you are sending a signal to sellers that you are serious and that you have the fiscal back-up to make the purchase; summing up, you have more credibility.  

Plus, mortgage pre-approval gives you a realistic idea of how much money you can afford to part with. 

What’s more a seller might be persuaded to sign on a slightly lower offer if it is backed by a sound pre-approval. 

This can be especially handy if you are competing with a buyer who hasn’t applied for a mortgage yet. 

Before getting pre-approved for your mortgage keep in mind that pre-approvals are not full approvals and that you should get acquainted with their many advantages and few disadvantages. 

The best thing about getting your mortgage pre-approval is that it is simple, easy and costs nothing. 

Moreover, if you hire services of a licensed mortgage professional you may qualify for a locked-in interest rate from 60 to 120 days while you are considering your shopping options for the best rate. 

Should interest rates inch down, your locked-in rate will go down too. On the other hand, if interest rates edge up, your locked-in interest rates won’t. 

If you opt for a locked interest rate, you are guaranteed mortgage terms equivalent to that rate or lower. 

Also, you are under no obligation to use the lender who has pre-approved you for a mortgage.

  

What’s not to like about all this?

Don’t procrastinate and get pre-approved for a mortgage to get the best loan terms out there. 

Why Mortgage Refinancing? The In’s and Out’s And What You Need to Know

Your mortgage can seem like a long term commitment – a financial obligation that stretches over many years, even a couple of decades. It may be a long term commitment but you’re not locked in. The economy and the interest rate changes and you build up equity in your home, so being able to adjust your mortgage allows you to optimize your mortgage for your needs. In this blog, I’ll explore the in’s and out’s of mortgage refinancing and why it might be a smart financial move.

Interest Rate Adjustment

The first reason that most people think about refinancing is because the mortgage interest rates have changed. If banks are offering a lower interest rate than what you committed to in your mortgage, it might make sense to refinance (and even pay a small penalty) to take advantage of that lower interest rate.

Tap into Equity

As you pay off your mortgage, and as home values increase in general (which they tend to do, although not always consistently), you build up equity in your home. You can access that value and borrow against it, usually through a home equity line of credit, which is a low-interest revolving loan. Use that money to pay down debts, fix up your home, reinvest in other things – whatever you need.

Mortgages are long term financial obligations… but refinancing makes it possible to adjust our course as necessary. In this short blog post we’ve only been able to cover the in’s and outs of mortgage refinancing and why homeowners love it. Adjusting your mortgage through refinancing allows you to pay less and to tap into the value that is building in your home. It can be a great idea! Talk to a lender or mortgage broker to see if it’s right for you.

The “Backwards” Way Finding the Best Mortgage

Looking for your next home – and the mortgage you’ll use to buy it – is like traveling to a foreign country. The language and customs are different and your head will spin with an overwhelming number of details.

Most people who find themselves in this strange land of mortgages try to find their mortgage as quickly as possible. They race to a mortgage that, at first glance, looks like the right one for them. But that approach doesn’t assure that you’ll get the best mortgage for your needs.

Since your mortgage represents the largest purchase, here’s the way that you should find your best mortgage (and stay sane while doing it).

First, take your time. Don’t rush to find the mortgage. There are plenty of mortgages out there and plenty of lenders. Decide ahead of time that you’ll narrow your choices and evaluate from a position of confidence and patience rather than impatience.

Second, get educated. Yes, there are highly qualified mortgage experts out there who can help you find a great mortgage but the onus is on you to decide what’s best for you. Learn everything you can about the local real estate market, the mortgage industry, and what mortgages are available to you. It’s just like landing a plane:

1. Start at 50,000 feet and develop high-level knowledge about the market in general

2. Then go to 40,000 feet to learn about the market right now

3. Then go to 30,000 feet to learn about real estate and mortgages

4. Then go to 20,000 feet to learn about the most applicable real estate and mortgage options for you

5. Then go to 10,000 feet to narrow your options and learn more deeply about each one

6. Then land that plane and decide on the best mortgage to meet your needs!

Third, find a mortgage broker who can work with you. They’ll not only take away a lot of the guesswork, they can help you through each level of learning and you’ll end up making the best mortgage decision for you!

4 Ways That Vancouver Mortgage Professionals Help Find Flexible Payment Options for Homebuyers With Non-Traditional Mortgage Needs

When I was growing up, my parents moved a couple of times, and each time they did the same thing: My dad would go to the bank (“our bank” my parents would call it) and sit with someone there and then come away with a mortgage. That’s not the way it works anymore. Today, my spouse and I both meet with a local mortgage broker – a Vancouver mortgage professional who helps find flexible payment options for us.

Today, dads are no longer the main breadwinners, nor are mortgages the same financial instrument they once were. Here’s what my mortgage broker did for us:

·         The job market has changed and is far less secure than in dad’s day (no more “jobs for life!) We want to pay less on our mortgage and a mortgage broker helps find mortgages that cost less over the life of the loan as well as on a monthly basis.

·         As freelancers (I’m a photographer and my wife is a graphic designer) our income is pretty good but frankly it’s all over the map – we go from boom to bust and back to boom again. Our bank is still stuck in the Stone Age and didn’t “get” this but our mortgage broker nodded, smiled, and said it wouldn’t be a problem… they even found us a mortgage where we could skip occasional payments or pre-pay without penalty.

·     We were able to select the days of the month we wanted our payments to come out – multiple payments and the frequency of those payments (and our mortgage broker even showed us a trick to pay off our mortgage a little sooner by helping us “sneak in” an extra couple of payments a year).

·         Our favorite: Our Vancouver mortgage professional helped find flexible payment options at zero cost to us. This was a service to us that was essentially free – keeping more money in our pocket while finding the best rate out there.

I learned that mortgages are like complex machines with all kinds of “buttons” – from payments schedules to interest rate and more. And our mortgage broker pushed all the right buttons to find a mortgage that worked for our unique situation.

Should You Renew Your Mortgage? Why a Professional Mortgage Broker Can Help.

If there is one constant in life, it’s that things change – and circumstances have probably changed since you hired a mortgage broker and took out your current home loan.

Perhaps your current mortgage is no longer a good fit for you and your family and you are thinking of talking to a mortgage broker about mortgage renewal.

After all, shouldn’t your mortgage adjust according to your changing circumstances? 

If you are considering renewing your mortgage it is very likely that you are in the process of reevaluating your financial goals and reflecting on the last time you spoke with your broker.  

Is mortgage renewal right for you?

Maybe your income level hasn’t changed significantly but the value of your home has, in which case adjusting your monthly payments might be a wise thing to consider. 

The process of renewing your mortgage in Vancouver boils down to finding a loan that best reflects your new lifestyle. 

This is why it is so important to find a professional mortgage broker who will sit down with you and talk about your interest preferences: are you looking to save through variable rates or seeking the simplicity and security of a fixed rate term?

A good mortgage broker will speak to you about your current mortgage and how your needs have changed since you signed up for it. 

Keep in mind that you don’t have to renew your mortgage through your current lender.

A professional mortgage broker can make a big difference helping you choose from a host of loan terms at competitive and less competitive rates. 

Start shopping

Don’t wait until you get a renewal letter from your lender. 

Get in touch with a mortgage broker a few months before your mortgage term expires to see what’s out there, and if you can find loan terms that are a better fit for you. 

Remember that if you don’t take initiative on time the lender may automatically renew your mortgage for another term.

You may qualify for a lower rate and not even know it. 

Mortgage renewal can save you money, so contact us now to speak to a professional mortgage broker about your options. 

Mortgage Rates: Should You Rent Or Buy?

It’s no news that the big banks, headed by RBC but swiftly followed by Scotia, BMO and TD, have slashed their fixed five-year mortgage rates earlier this year, on the heels of fallen funding rates. 

Now the word on the street is the growing concern about the upshot anticipated higher rates will have on home buyers who have signed up for bloated mortgages on unusually low lending rates. 

Does this mean Canadians without deep pockets, that is mostly everyone, will soon be better off renting than buying?

How close are we to this boiling point?

As of now Bank of Canada forecasts mortgage rates going up, but only slightly in the short-term. 

More specifically, one-year interest rates are expected to hover at 3.24% in the first quarter of 2015 and then edge up to 3.60% in the fourth quarter. 

Five-year mortgage rates are seen inching up to 5.14% in the first quarter from present 4.99%, and increase to 5.65% in the fourth quarter. 

In other words, the low interest rate epoch may soon be closing in on us. 

The accepted truism in our society is that we should buy real estate which, for most of us, means taking out a mortgage, in lieu of renting because it’s a meaningful investment over the long run. 

But despite the historically low interest rates, the skyrocketing prices and maintenance fees – coupled with the anticipated rise in interest rates – are forcing many potential home buyers to postpone or rethink buying a home. 

And don’t forget that mortgage experts generally agree you should spend no more than about 30% of your household income on housing outlays. 

Bearing all this in mind, many potential home buyers might be better off renting for a while and putting their saved money into another investment that could earn more in the long run. 

You might be one of them. 

“I wish I’d known!” - 4 Tips for a Mortgage for First-Time Home Buyers

It would be nice if life came with an instruction manual… But it doesn’t. So when you’re looking to buy your first home, it can be easy to become overwhelmed with questions over this confusing process. Here are 4 tips for getting a mortgage for first-time home buyers. These are the “I wish I’d known” instructions that previous homeowners have found out… the hard way! Learn from their mistakes!

Tip #1: Be credit-rating savvy

Great mortgage rates are largely influenced by your credit rating. The better your credit, the better mortgage rates you may get on your mortgage. Therefore, if you are a first-time home buyer who is thinking of getting a mortgage, even if it’s a few years down the road, start working on your credit today. The effort you invest now could save you a lot of money in the future.

Tip #2: Get pre-approved

Too many “newbies” start by looking for their dream home and then when they go to get their mortgage, they discover that it’s out of their price range. Start by getting pre-approved and that will help you know exactly how much you can afford.

Tip #3: Don’t just focus on the interest rate

A great mortgage for first-time home buyers is not just one with a low interest rate. There are many components to a mortgage that you need to consider. Interest rate is one, of course, but so it your term (how long you’ll be paying your mortgage off) and the frequency payments are also a factor.

Tip #4: Remember closing costs!

This can be the most shocking mistake of them all because a mortgage for first-time home buyers is only the first step. There are additional costs – not associated with the mortgage – that are required for closing. These including home inspections, lawyers fees, moving costs, and more. Be prepared to pay for these costs as well!

First time home buyer? Congratulations! Make sure you follow these 4 tips to help you navigate the complex world of mortgages more easily.

New Discovery! Canadian Mortgage Calculator: Vancouver

If you live in the Vancouver area and are thinking about buying a home, you’re probably conducting research to find the right mortgage for you - you’re thinking about rates and terms. The problem is, a lot of mortgage information is specific to other locations, such as the US. Even if you do find a mortgage calculator that brings in Canadian rates and terms, it may not address the unique characteristics of those who are getting a mortgage in Vancouver BC. However, we’ve just discovered some online mortgage calculators in Vancouver that you might find really useful.

Online mortgage calculators (in Vancouver and elsewhere) are easy-to-use web-based “apps” that you can use to enter information about a mortgage to answer commonly asked questions you have about your mortgage. For example, by entering basic mortgage information such as your down payment and the rate of the mortgage, you can find out key pieces of information like how much your payments will be and how much interest you will pay overall.

Smart home buyers know that this information will help them make a great mortgage decision and, ultimately, an affordable home purchase.

And you can use these online mortgage calculators in Vancouver to help you zoom in on a mortgage payment that works for you. For example, if you enter one amount for your down payment but find the monthly mortgage payments are too high, you can always adjust the down payment to lower your monthly payments. That’s the bonus value of a mortgage calculator – it’s a quick way for you to understand your own mortgage obligations before you take action.

So check out these online mortgage calculators in Vancouver to take ownership of your mortgage and to ensure that you are getting the right mortgage for yourself.

Should You Consolidate Your Debt?

Borrowing yourself out of a bad debt situation may sound like something out of a comedy sketch, yet debt consolidation is a way out of a nerve-racking problem for many people.

With debt levels continuously on the rise and a wobbly job market showing no signs of rebound, it comes as no surprise that many debt-laden folks are consolidating their debt in an effort to get out of debt sooner and easier.

Lets face it, rolling all your liabilities into one has its advantages, including the possibility of securing a lower interest rate or a fixed interest rate. 

If you are struggling to pay off your student loans and have racked up credit card debt that is proving difficult to get rid of, debt consolidation may be your ticket out - but don’t sign anything until you realize everything this type of refinancing entails. 

Your first job is to shop around for a debt consolidation counselor and have a list of queries for them on you when you meet them.

Make sure that the one you have decided to go with has university credentials, is fully certified with a reputable financial services provider, and that his or her company offers debt counseling, debt negotiation and debt management.

Don’t forget to ask if a monthly service fee will be embedded in your new loan and if there are any other hidden charges you should know about.

Then, tell your lending company if you plan to work with a credit counselor or intend to use services of a debt consolidation agency.

This may impel them to offer you settlement.

Consider going with a debt consolidation company that is not-for-profit because the profit-based one may not have your best interests in mind.

If you go with a not-for-profit organisation, remember that its services also come with a price tag; and it is your job to verify that the organisation you choose really is nonprofit and not just a loan shark.

The Logistics of Buying Your First Home

The logistics of buying a first home can seem onerous at times. This is, after all, the biggest purchase of your life. It’s a transaction which will ripple through your monthly budgets for the next twenty-five years. It will go through many renewals. There may be ups and downs. But finally it will be worth it.

Approaching Your Mortgage Lender

In order to buy a home, most people require the services of a lender. Before making a bid on a house, it is usually advisable to get a pre-approval on a mortgage. In other words, the lender (usually a bank) will assess your financial situation and agree to lend you a sum of money on certain terms. The sum will be paid back over an agreed period. The most common term is twenty-five years.

Employing a Broker

If you have trouble getting a mortgage from your lender, it may be time to call on the services of a mortgage broker or consultant. A mortgage broker acts independently. They assess your situation and negotiate with your lender on your behalf. With a large working knowledge, not only of the banking sector, but of the housing market, they can steer you towards the best deal possible. They’ll also recommend better offers from competing lenders, something your bank is not in a position to do.

How Good Is Your Credit?

When buying a house or seeking a mortgage, your financial situation and credit rating is very important.  A lot may depend on how much debt you’re carrying and your capacity to pay it off. It is recommended that your debt per month should not exceed 40% of your incomings.  Working with a mortgage broker or consultant, you can work out your monthly housing costs and see how they equate to your income. In general it is recommended that your housing costs per month should not exceed 32% of your gross monthly income. By “housing costs” we refer not only to your mortgage payments but all the associated costs of owning a house such as heating expenses and property taxes.

Thinking about the Future

It is important that you do the math in advance because these are variables upon which your lender will decide whether or not to approve (or pre-approve) your mortgage. A mortgage broker or consultant is useful to have in your back pocket because they speak the same language as your lender. They know when to push hard for a deal and when to back down. Buying a house is a momentous step. Seek the best advice you possibly can.  

Debt Consolidation and Consumer Proposals

As a mortgage broker is Vancouver B.C., we deal with a lot of struggling homeowners. Many Canadians are having difficulty making their household payments and other debts. As the Canadian economy normalizes and picks-up, more and more Canadians are trying to regain control of their finances. Many are succeeding in freeing themselves, but household debt levels remain very high. For many people debt issues are a source of stress, inconvenience and even embarrassment.

Consolidation Loans

There are a range of options for managing personal debt and avoiding bankruptcy. The trick is finding the one that applies best to your situation. One of these options is debt consolidation. This usually means merging all of your debts into one low interest loan payment. The advantages of this kind of arrangement are that you save on the interest rate and have the convenience of one payment.

Of course debt consolidation isn’t for everyone and you should give careful consideration before committing to any kind of financial restructuring. Also, getting approval often requires a good credit standing which you may not have. The types of people who seek consolidation are often struggling financially.

Consumer Proposal

Another option is a consumer proposal. This is where a proposal is made on your behalf to your creditors. This is an official process and must be undertaken by a trustee in bankruptcy. If successful, payments will be reduced to a manageable level and your overall debt burden may also be reduced. Consumer proposals also take the form of consolidations and will merge all your debt into one payment. While this will impact negatively on your credit standing, it will make it easier to make your monthly payments. 

The Canadian House Market Shows No Sign of Easing

Consumer confidence in Canada remains at its highest in four years, as 40% of the population expects house prices in their neighborhood to keep rising. Recent gains in real estate have left Canadian homeowners feeling confident. The decision by the bank of Canada to hold off on interest rate increases has also contributed.

Sales in Vancouver and Toronto Lift Market

According to the Bloomberg Nanos Confidence Index, less than 10% of Canadians expect house prices in their neighborhoods to fall in the next six months. Sales of homes rose by 2.7% in April. The engine of growth was in Vancouver and Toronto. The four month fall in house prices experienced over the winter, now seems like a distant memory.

Neither does construction seem to be easing. Building of new homes increased in April, reaching 194,809 units. While there has been a tightening of mortgage regulations by federal and provincial government, lenders have dropped their rates this year, encouraging more people to get on an increasingly expensive mortgage ladder.

What Will Your House Cost You?

If you are still hoping to get on the ladder, a mortgage consultant can provide somedown-to-earth advice. They will assess your situation, ask you the tough questions and help you to build a coherent strategy. How much money can you afford to spend on your new home? The cost of a home is not simply the purchase price. There are other things which need to be factored in. There are ongoing maintenance and ownership costs. Property taxes for instance. The monthly cost of owning a home should not exceed 32% of your monthly earnings.

Down Payments

For most people in Canada, the biggest monthly cost is their mortgage payment. The cost of a mortgage is dependent on many variables, chief among them being your ability to make a significant down payment as a deposit. In the case that you can’t afford to pay more than 20% of the house price, you will probably need to take out mortgage insurance to cover the loan.

 If you find yourself getting into trouble with payments or if you are uncomfortable negotiating with your bank, a mortgage consultant can ease the process. They can negotiate with the bank on your behalf and advise you where to go for the best features and interest rates. Buying a house may be the biggest financial decision of your life. Don’t take any chances. Seek the best advice you can. 

Four Types of Debt Consolidation

The aim of debt consolidation should always be to help you pay off your debts cleanly, efficiently and more manageably. There are basically four debt consolidation strategies. These are balance transfers, personal loans, home equity loans and cash-out refinancing. Before committing to any of these you should consult a mortgage broker or financial adviser. 

Using the balance transfer option you replace multiple debts with a low-interest loan. Your lender gives you a good introductory rate. This temporary low-rate period of perhaps twelve to fourteen months is used to pay off as much debt as possible.

The personal loan option consists of your lender giving you an unsecured loan, usually with a fixed interest rate to stabilize your finances. There is no collateral. The bank trusts you to make the repayments. However, because the loan is unsecured, interest rates are higher. 

Cash-out refinancing is a form of debt consolidation where the lender allows you to take out a new mortgage, larger than your existing mortgage. You receive the difference as a cash sum. The loan is secured by your home so the monthly payments are less. However, if you ever have difficulty making repayments your house becomes endangered. 

Home equity loans are also known as second mortgages. Similar to a cash-out repayments, you trade equity in your house for some quick cash. Debt consolidation occurs, merging your debts into one loan with a variable or fixed rate. Using your house to secure further debt however carries certain risks. 

Are You Seeking Debt Consolidation in Vancouver?

Are you seeking debt consolidation in Vancouver? Have you considered seeking advice from a licensed broker? Before committing to debt consolidation, take the time to fully understand the process. Never see it as a quick-fix! Always take a long term view of your finances.

Do You Need Debt Consolidation?

Debt consolidation loans have very specific merits and functions. They can be a way of managing overwhelming debt by combining all your debts into one loan. This effectively involves taking out new credit and using it to pay off your existing credit. By doing this you hope to reduce your monthly payments. Debt consolidation is not the same as debt management. The latter involves simply renegotiating the terms and features of a loan. It doesn’t involve taking out new credit.

There are pros and cons with any package. If you’re seeking debt consolidation in Vancouver, impartial consultation is available. There’s a lot to consider. You should be aware for instance that while consolidating your debt may lower your monthly payments it will also extend the period over which you pay back your debt. Debt consolidation is not a substitute for responsible budgeting. How well you manage your finances will affect the outcome of loan consolidation.

Do You Need Financial Consultancy?

Lending Experts are a licensed mortgage consultancy. They have extensive experience with mortgage consolidation in Vancouver. Their certified brokers will give you independent and impartial advice.  They will assess your overall financial situation and work with you to create viable targets and realistic strategies. Consolidation loans may be secured or unsecured. Some loans will require you to use your house as security. This may not be something you feel comfortable with. On this and other issues, your mortgage broker and consultant can best advise you as to the safest and most effective course of action.