Mortgage Refinancing: What Should I Know?

What is Mortgage Refinancing?

As a mortgage broker and consultant in Vancouver Lending Experts offers services and advice across a whole range of areas. Some of the most common queries we receive are about mortgage refinancing.

Mortgage refinancing is when you pay off your current mortgage and create a new mortgage. This may or may not involve consolidating two mortgages into a single loan.

Why Should I Seek Mortgage Refinancing?

There are all kinds of reasons. Perhaps interest rates have decreased. Perhaps your credit situation has improved and you feel you may qualify for a lower-rate mortgage. Perhaps you want to switch to an entirely different type of mortgage.

You may want to increase the length of your mortgage in order to decrease the amounts you have to pay every month. You may want to decrease the length of your mortgage to avail of lower interest rates. You may want to change from a variable rate mortgage to a fixed term mortgage or vice versa. You may want to keep the type of mortgage you already have but adjust the terms. Sometimes people refinance their home for a sum larger than they owe. This allows them to claim the difference as a cash sum.

Where Should I Go For Mortgage Refinancing? 

Before you try to negotiate with your bank and definitely before you consider cash-out refinancing, you should seek advice from your mortgage broker and consultant in Vancouver. You will need to determine your eligibility before you seek refinancing. Many things will be taken into consideration, including your assets, your income, your credit score and any other outstanding depts. The current value of your house and the amount you want to borrow will also affect the terms you receive.

Lending Experts is a mortgage broker and consultant in Vancouver with your best interests at heart. 

You and Your Broker: A Complicated Relationship

Still remember that first consultation with your mortgage broker in Vancouver? Picture it again. Like any relationship it begins with initial hesitation and insecurity. You wonder if you really need this service. Couldn’t you take care of this mortgage on your own? But your friends all gave you the same advice. Maybe you feel awkward as the broker begins to assess your financial history. There are so many questions to answer. Your income… Your outgoings… Your personal debt… Everything is scrutinized and measured. Then bit by bit the conversation comes around to the future and you begin to create a plan. Using all this information, the broker begins to outline your priorities and draw a road-map. How much do you want to borrow? How soon will you require the funds? What are the costs of the transactions?

Then with all this information in hand, your mortgage broker in Vancouver sets out to negotiate with your bank for the best possible deal. Flash forward a few years and here you are again in the same office. There are three cups of coffee on the desk amongst files and folders and letters from your lender. This time your spouse is sitting next to you. You’re both thinking about the mortgage renewal, due later on this year. The relationship with your broker is more comfortable now. You’ve come to trust the firm over the years.  You’ve begun to see it as a long-term relationship playing out over the lifetime of your mortgage. Your credit repair issues are now cleared up. Things are looking brighter. You’re even thinking about purchasing another property. But not this year.

Lending Experts in a mortgage broker in Vancouver sensitive to your needs and aspirations. Our success is in the mutual trust we enjoy with our clients. Over the years we get to know you, just as you get to know us. 

Mortgage Advise for First-Time Buyers

Pre-approved mortgage

You may want to consider getting a pre-approved mortgage. A pre-approved mortgage is when your bank or lender approves the loan in advance of making the purchase. In this way, you’ll know how much you can really afford to spend. It’s also a good way of showing the seller that you’re serious about the purchase.  Your mortgage broker in Vancouver can be of assistance in getting you the best deal possible.

First-time buyer in Vancouver

Let’s face it. Vancouver isn’t a cheap place to buy a house. A great many people feel excluded from the market. But if you are planning to wade in, do so with caution. There are many aspects to buying a home and many potentially hidden costs such as mortgage insurance, transfer taxes and appraisal fees. Buying a house is a momentous decision and shouldn’t be undertaken unless you feel comfortable with your financial position. Be advised that buying a property is an ongoing financial responsibility involving continual dept-management. 

Mortgage consultant

When seeking a mortgage many people benefit from using a broker. Your mortgage broker in Vancouver can negotiate with the lender on your behalf and make sure you obtain the optimum benefits and the lowest possible interest rate. In order to get a pre-approved loan your credit must be in good standing, your dept-to-income ratio must be sustainable and ideally you should be able to cover much of the down-payment. Your mortgage broker in Vancouver will access your overall situation and isolate the correct strategy. 

You and Your Broker: A Complicated Relationship

Still remember that first consultation with your mortgage broker in Vancouver? Picture it again. Like any relationship it begins with initial hesitation and insecurity. You wonder if you really need this service. Couldn’t you take care of this mortgage on your own? But your friends all gave you the same advice. Maybe you feel awkward as the broker begins to assess your financial history. There are so many questions to answer. Your income… Your outgoings… Your personal dept… Everything is scrutinized and measured. Then bit by bit the conversation comes around to the future and you begin to create a plan. Using all this information, the broker begins to outline your priorities and draw a road-map. How much do you want to borrow? How soon will you require the funds? What are the costs of the transactions?

Then with all this information in hand, your mortgage broker in Vancouver sets out to negotiate with your bank for the best possible deal. Flash forward a few years and here you are again in the same office. There are three cups of coffee on the desk amongst files and folders and letters from your lender. This time your spouse is sitting next to you. You’re both thinking about the mortgage renewal, due later on this year. The relationship with your broker is more comfortable now. You’ve come to trust the firm over the years.  You’ve begun to see it as a long-term relationship playing out over the lifetime of your mortgage. Your credit repair issues are now cleared up. Things are looking brighter. You’re even thinking about purchasing another property. But not this year.

Lending Experts in a mortgage Consultant in Vancouver sensitive to your needs and aspirations. Our success is in the mutual trust we enjoy with our clients. Over the years we get to know you, just as you get to know us. 

Interesting Times Make Mortgage Brokers a Must

As a mortgage broker and consultant in Vancouver, it’s an interesting time to listen to the concerns of clients. Some of them are young couples trying to get on the housing ladder, others landlords or home movers. All of them have different levels of knowledge, different expectations, different certainties and uncertainties.

The market changes year on year. Every year is different but the principles remain. In March the Bank of Montreal created a stir when they dropped their fixed five year mortgage rates by 3%. Speculations immediately arose about a possible rates war. This may be of some comfort to those hoping to renew or apply for mortgages in the coming months.

With houses prices steadily rising, variable rate mortgages have become more tempting recently, especially with the falling thresholds created by weak yields in the bond market. The question has become a familiar part of the modern malaise. Do you take a variable mortgage at 2.35% or do you go for a fixed rate mortgage at 3.09%? If fixed rates drop below 3% the call will become tighter. With signs of interest rate rises on the way in 2015, the fixed rate is being trumpeted in some circles as the new best choice.

This is where your friendly mortgage broker and consultant in Vancouver enters the fray. There has never been a more important time to have cool informed technical assistance when exploring your mortgage options. When renewing a mortgage, many people still deal automatically with their existing lender, too busy or too complacent to seek a better deal elsewhere. Many people still maintain a paternal relationship with their bank. They trust the bank to look out for them. In reality however, it is not in a bank’s interest to provide you with the financial guidance you need. A bank hasn’t got the time, resources or motivation to put you on the trail of a better deal. For one thing, it might involve recommending a competitor. 

If you feel at sea in the debates over mortgage rates you do have the option of independent advice. A mortgage broker can steer you towards the best offers in the market. They can help you secure a better deal with your current bank or with a new lender. Lending Experts is a mortgage broker and consultant in Vancouver. Our team of senior brokers can offer you the support you need in negotiating the turbulent mortgage market. 

Wondering How to Get a Mortgage Even Without a Salary

Lending a fair mortgage is a difficult task. Everyone of us cannot secure an ideal mortgage without the expert assistance of a professional or a seasoned mortgage broker. If you are all alone in your quest, then your chances are pretty bleak. More so, if you are a self-employed individual, the chances of securing a profitable mortgage are next to impossible.

Most self-employed applicants find it hard to get a mortgage deal than their salaried counterparts. They are amongst the less preferred lot by the lenders. Lenders find it difficult to put their trust on individuals who do not draw a fair enough salary each month. Self-employed or small time business rings uncertainty bells in their mind.

The main hindrance for non-salaried individuals is that they have to face higher interest rates for securing a mortgage deal. They have CMHC mortgage insurance premiums as well that lead to further issues in the process. Therefore, they need a professional mortgage broker who has proper understanding of the market rates and helps you in securing a profitable deal without much hassle. It also helps in making a strong plan to securing a good mortgage.

Also, it is important you make a heavier down payment if you are self employed. They larger the down payment that you make, greater is the chance that the lender will trust you and offer you a profitable mortgage deal in the bargain. 

Why Is It Good to Choose Mortgage Broker Over a Bank?

So, you are scouting for a cracking mortgage deal in the market? Looking around to find the best deal possible around you? In some cases, your bank might well offer you the rate and terms that suit you the best. The product offered by your bank might actually fit in the bill and you can opt for it too! But in more often than not, banks do not present you the best deals that are available in the market.

A mortgage broker is an experienced and thorough professional who brings you a handful of the best deals from the top lenders in the market. You can be rest assured that the deals that are offered to you on the platter are presented only after a great deal of brainstorming and research. Your deal has to match your requirement and no readymade deal can suffice your requirement.

A good mortgage consultant is someone who has a fair idea of the market. He or she knows exactly what it takes to bring you the best possible profitable deal from a lender. The mortgage broker is widely connected to the network of top lenders in the region. He practically knows all the lenders in the entire BC province and what all they have to offer. If there is a suitable product that matches your requirement to the fullest then it would definitely be on the offering for you.

Since every individual has a different need of mortgage; therefore, they should be treated with the best possible mortgage that matches their situation. A mortgage has fair knowledge about the different mortgage products that are on offer by the lenders in the market. Hence, you do not have to worry about losing out on a great deal. They are scouted well and in good rhythm by the mortgage consultants.

A mortgage broker is in turn paid by the lenders in the form of a finder’s fee and you get the best mortgage deal as desired by you. Hiring the services of a qualified and highly experienced mortgage broker always pays well in the wrong run. He or she also offers you mortgage solutions along with credit corrections solutions that help in shaping your credit ratings again.