Syndicate Mortgages Blog

Business for Self Mortgage – See Your Options

As the number of self employed Canadians grows, so do their options for obtaining a self employed mortgage. Traditionally, to obtain a no income verification mortgage, a virtually impossible down payment of 35% is required. Now there are other options with much more reasonable rates. Many times, business for self mortgages will require that you have at least two years of self employment tenure, but that is not always the case. Depending on how long you were employed and what kind of work you did before you became self employed, you may still qualify. Also, other options like an Alt-A mortgage, low doc mortgage, and stated income mortgage are all options for the self employed. If these options sound more manageable to you as a self employed Canadian looking for viable mortgage options, read on. The only way to avoid a huge down payment requirement is to become a borrower with CMHC self employed simplified. There is no need to fear high interest rates when using this option because rates are very competitive with the current market. Also, when you work through CMHC self employed simplified, you can obtain a mortgage with as little as 5% down. If you are looking for a business for self mortgage, CMHC self employed simplified could certainly be an option for you!

Another program for self employment mortgage options is Alt-A mortgage. There are certain things you must meet to qualify for this business for self mortgage. The two-years-in-business minimum is required here with a proof of income that is at a reasonable level of the industry you work in and the length of time you have been operating. Strong credit and no reports of bankruptcy are requirements here as well. If your income is based on commissions, since it can be so irregular and unpredictable, you are ineligible for this program. There are many other options other than an Alt-A mortgage, so if the restrictions exclude you, there are still ways you can obtain a self employed mortgage.

If you have a long history of maintaining great credit, you can skip a few steps in the mortgage process and get something called a low doc mortgage. As you can derive from the name, this kind of mortgage allows you to get a loan based on your great credit history without the requirement of showing all the traditional documentation. This is a perfect solution for self employed individuals. It is a form of no income verification mortgage because there is no need to show W-2s, pay stubs or any other form of income proof.

A stated income mortgage is a form of a low doc mortgage that requires lenders to have great credit and a reasonable income to debt ratio. This kind of loan has only recently been made available again. At the start of the economic crisis, many lenders discontinued approving stated income mortgage loans because the lack of documentation makes it a risky move for lenders. Under normal economic circumstances, it is manageable. During the lending crisis however, the only lenders who continued to hand out stated income mortgages lost a lot of money as thousands of people defaulted on their mortgages. Fortunately for the self employed, these are being offered again.

Anyone looking for a self employed mortgage will be satisfied with the option of no income verification mortgage loans. If you are a personal contractor, work with commissions, or get a high percentage of your income from tips, it can be difficult to prove your income. The best business for self mortgage options will not require income verification. Still, this option may only be possible if you have perfect credit and no history of bankruptcy.

It is clear that there are multiple options for you as a self employed resident of Canada to obtain a self employed mortgage. Hopefully, since you are a responsible entrepreneur with a drive to succeed, you have a clean credit score. It will help you be approved and receive the lowest interest rates possible. If not, you may be required to put more money in your down payment or pay a higher interest rate. Even if this is the case, your dreams of becoming a homeowner can become a reality with many options to receive a business for self mortgage.   

How to Recover from Bankruptcy in Canada – Chapter 11

With the global economy in a sore spot, many people in Canada and beyond are finding it difficult to get out from crushing debts and even getting a mortgage after bankruptcy in Canada. More and more Canadians are finding that their only choice is to declare bankruptcy, which at the very least offers some relief. The drawback is that credit is destroyed, making it difficult to obtain the funding needed for larger items such as cars or a mortgage. Fortunately, there are a series of steps that one can take to recover from bankruptcy in Canada after filing for Chapter 11, though it does of course take some time and effort. After declaring bankruptcy in Canada, a person will receive their discharge after a period of nine months. After this, the first step that should be taken is to focus on rebuilding credit. To do this, one needs to save a relatively small lump sum of money that can be used as a base. Save-up about $500-$1000 dollars, and then deposit it in a Closed GIC account for 1 or 2 years. Then apply for a secured Credit Card against this GIC account, for the same amount of money.

This is a two-year plan. In the first year, it's recommended to use as much as you can repay on the visa within three months. For instance, withdraw $1000 for your estimated living expenses, such as food, gas, or other daily expenses. Then, pay this off in three lump sums of $333.34. Repeat this step four times throughout the year, which will then give you a clean bill of credit repayment for a whole year. With this new clean record, take the next step of applying for a car loan or a Credit Card increase, which will allow you to continue payments for a second year, thereby giving yourself a solid two years of credit repair.

With these two years of credit repair that you have just undertaken, you will now be eligible to apply for credit cards, loans, mortgages, or anything else that you may need to obtain after bankruptcy in Canada. After seven years, the bankruptcy vanishes from a person's credit report entirely, allowing the entire transitional process to be completed. This comes as a great relief for those suffering from bankruptcy, thinking that they would never be able to take out a loan again. There is hope, by following a few simple steps to help rebuild fallen credit.

Furthermore, a mortgage professional can help clients purchase a home right after bankruptcy, once discharged. They can apply for a mortgage at a 1-3 year term which will of course be at a higher rate but help them move into a home sooner than later. Once the rebuilding of the credit has taken place, a mortgage professional would refinance you through an AAA lender (RBC, CIBC, BMO etc) with the lowest rate in the market.

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Mortgage Canada Bad Credit – Become The Owner Of Your Dream Home

There was a time when only people with good jobs, no loan payment issues, and expensive property as security could avail home loans from banks. Before lending you the money, the bank would run a thorough background check on you. If they found out that your credit history was poor, or you had payments pending on another loan, or you had a history of delayed repayments, you could say goodbye to the dream of owning your own home. Thanks to mortgage Canada bad credit options that you can now get loans even if your credit history is less than stellar. Eligibility And Conditions:

The terms and conditions for eligibility and interest depend on the following:
1. Whether you are opting for first mortgage or remortgage.
2. Your employment situation.
3. Your credit history (poor/very poor/bankruptcy).
4. Citizenship status.
5. Location of the property.

In general, people with a steady income are more likely to get better loan offers, covering up to 85% of the property value. Self employed people who have been earning steadily for at least three years also stand better chances that people without regular employment or income. If you merely defaulted in some payments and compensated for them later, you have better chances than people who filed for bankruptcy or have several bad debts to your name.

One of the major problems those with mortgage Canada bad credit is that they are unable to make the down payment. In general, lenders insist on a higher down payment for people with poor credit records. This payment can be as much as 20% the value of the property. The better your record, the less is the down payment.

While mortgage Canada bad credit makes it possible for you to own a dream house, it might be a little difficult to buy a property in a rural ranch as opposed to a busy urban area. Also, you stand a better chance of obtaining mortgage if the home is in good shape.

Some mortgage brokers and lenders might charge a prearranged fee for finding or providing loans to those with a poor credit record. The better your credit history the less is the fee. Therefore, it is always a good idea to make some attempt at redeeming your credit record before you approach lenders.

Repairing Credit History:

One of the best methods to increase your chances of getting loans for purchasing a home or for decreasing the down payment is to repair your credit history. Once lenders are convinced that you have been paying loans steadily and have no outstanding defaults, they might be willing to provide you money on lower security. One of the quickest ways to repair credit record is by opting for a credit card and repaying the bills on time. Regular banks might be reluctant to offer a credit card to someone who has been declared bankrupt once. However, there are specialized lenders who offer credit cards provided you have collateral to offer. These credit cards do not allow unlimited spending. If they do, the security on them is high.

Once you have paid off all outstanding debts, which are a precondition set by many lenders, you need to stay debt free for at least two years. This interval between the first and second debts helps in repairing your credit record. If you opt for loans during this time, make sure your repayment is timely and regular.

Whether you want a mortgage Canada bad credit or simply want to check your credit record, it is always a good idea to approach Equifax or TransUnion periodically to keep an eye on your credit history. Many people refuse to take loans for what appears to be for no reason - until they find out that they have been victims of an identity theft. The thief can impersonate you, opt for loans, never pay them back, and leave you to deal with the aftermath.

You don't have to give up your dreams of owning a fabulous home - or even a modest one - just because you were unable to repay debts in the past. There are many agencies offering mortgage Canada bad credit to someone who has taken steps to rectify their credit record. If your credit record is still bad, you should be willing to pay just a little more as down payment or fees.

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Fixed Rate Mortgage In Canada – To Go For It Or Not

Deciding to obtain a mortgage on your home is probably one of the most important decisions you will make in your life. The next important decision is to decide what type of mortgage will be suitable for you - the Fixed Mortgage Rate or the Variable Rate Mortgage. This is never an easy decision as there are no clear cut answers to the question. Home mortgages usually last for long terms such as 5 years or 10 years. Explaining Fixed Rate Mortgages

If you opt for a fixed rate mortgage Canada (FRM) your rate of interest gets locked for the entire duration of the loan. You negotiate with your mortgage lender and fix the rate of interest in advance. Opting for such a mortgage provides you with the knowledge of what your monthly outgo will be throughout the next 1 year, 5 years, or 10 years, depending on the duration of your mortgage.

If the mortgage interest rates are low at the time you are considering your loan, then going for a fixed mortgage rate Canada is the best option you have. Your payments remain fixed, even if the rates of interest hit the roof. You choose the term of the duration that suits you - either 1 year, or 5 years, or 10 years. You can opt to pay an additional payment each year - some mortgage lenders allow you to pay a maximum of 20% of your initial mortgage once a year. You also have the option of increasing your payments each year - by up to 15%-20% once a year. This will lead to paying off your loan much faster.

Fixed Mortgage Rate Canada is most popular, especially with the laymen; the first time home buyers; and those who are not comfortable with, or do not understand, fluctuations with mortgage interest rates. Moreover, as many as 75% of all home mortgages are available on fixed rates. As the interest rate will never change during the lifetime of the mortgage and nor will the monthly payments, it will allow you to budget your finances for your household and other expenses much easily.

Pricing Of FRMs

Being predictable, the fixed rate mortgages are popular despite the fact that the rate of interest charged for it is always higher than other types of mortgages, such as adjustable rate mortgages. This is because of the inherent risks in the rates of interest. The longer the term of mortgage, the higher will be the rate of interest. Just because the fixed rate mortgage has a higher rate of interest, it does not make a bad option at all.

If the rate of interest of mortgages rises, an adjustable rate mortgage will cost you higher, whereas the higher rate will have no effect on the interest rate of your Fixed Mortgage Rate Canada. Your interest rate and the monthly payment amount will remain unchanged. This is a risk your mortgage lender has agreed to take, and that is why you were charged a higher rate initially.

One advantage, if the rates fluctuate to very lower levels, is that you can go for refinancing of your mortgage. This will enable you to reduce your monthly payments. However, you need to keep in mind that it entails more closing costs.

Mortgage Terms

Though you have the option of choosing a 1 year, 5 year, or a 10 year mortgage for your home, you need to assess which may be the best for you.

Consider this: if you are considering mortgage when you are in your thirties, a 1 year mortgage term may not be suitable because of the higher monthly outgo. If you are considering a 10 year mortgage, you may still have loan on your hands as you approach your retirement age - an uncomfortable thought. In such a case, a 5 year mortgage may be appropriate for you.

A lot, of course depends on your individual circumstances.

What if your wife is pregnant and not in a position to contribute to the monthly payments? Possibly, a 5 year mortgage may be more appropriate, with lower monthly payments and cost of bringing up the baby?

You have a potential of saving on your Fixed Mortgage Rate Canada, and your decision to go for it will depend largely on the loan term, the current rate of interest, and the chances of the rate of interest on mortgages increasing or decreasing during the lifetime of your mortgage.

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Everything You Want To Know About GIC Canada Rate

GIC Canada Rate stands for guaranteed investment certificate, which is a popular type of investment in Canada. The best thing about this investment is that investors get a guaranteed rate of return over a certain period of time. The rate is fixed in the beginning - at the time you are making the investment. For example, you might be promised a return of two percent if you invest for three years. GIC rates do not change with the changing market conditions. No matter how the market behaves at the time of the return, you will get what you are promised. Because of this special feature of the GIC Canada rate, this type of investment has gained rapid popularity in the banking industry in Canada.

A Better Option Than Investing In Stocks Or Bonds

It is true that investing in stocks or bonds can lead to a much larger returns, but the investors have to take risks there. The return is not guaranteed as things change very quickly depending upon the varying conditions in the market. If the market is up, you can make big money, but if the market is down, you may have to suffer big losses as well. There are no such risks associated with guaranteed investment certificates. Whatever the rate is, it is not going to change throughout the life term of your investment. If you have invested for three years, the GIC Canada rates are going to be the same for three years. This way, stocks and bonds are high-risk investments but GIC is a no-risk investment.

Factors That Determine The GIC Rate

There are several factors that are taken into account to determine the GIC Canada Rate. Some important factors include the length of time you are making the investment for and the type of the certificate you are investing in. The longer the investment period is, the higher the rates are. For example, if you invest for ten years instead of three, you are very much likely to be offered a significantly much higher rate. You can generally invest in GIC for a minimum period of six months while the maximum ceiling is ten years. It is up to the investor to decide how long a period they want to invest for. Another important factor that influences the GIC rates is the interest rate specified by the Bank of Canada (the central bank of the country). This interest rate has heavy influence on GIC return, and there is no way to change the rate once specified by the BOC.

How Does It Work?

When you invest in a guaranteed investment certificate from a financial institution, you actually lend a certain amount of money to them for a specific period of time. Once the GIC matures, it is up to you to decide whether you want to renew the investment for another period of time or just want to cash it in. You have to sign a contract with the financial institution when you buy this type of investment certificate. The contract explains all the terms and conditions that will be applicable for your investment, such as the period of time, the amount of money you are investing, the type of certificate, and the GIC Canada rates you have been promised. The institution you buy the GIC from invests your money to other bigger financial groups. No matter how much profit or loss they make from their investment, they are liable to pay the returns to you as per the GIC rates promised in the contract.

Options Other Than The Standard GIC

Besides the standard GIC, where the rates are fixed, there are some other options also that the investors may like to go for. For example, you can invest in stock-indexed or market growth guaranteed investment certificate, where the rates may change depending upon the growth of a specific stock in the market. As compared to the standard GIC, this type of investment carries risks. Though the risk is not very high, but it is there. You can expect huge returns if the stock makes big gains. But, in case the stock does not make any profit and goes in loss, you will not get any return. Another negative aspect about this low-risk GIC is that you cannot earn more than point twenty five percent (.25%) return in a period of 3 years - regardless of how big gains the stock is making.

Depending upon the GIC Canada rates promised to you on your investments, the returns might be paid to you on a monthly, quarterly, half-yearly, or yearly basis.

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Things You Should Consider While Doing Mortgage Rate Comparison

With so many lenders present in the home mortgage market, people often get perplexed while deciding which loan type to choose and from which lender. This confusion is obvious, as home mortgage is not a small loan amount that an individual pays back in a couple of years. Most people take these loans for 15 to 20 years' time frame. Therefore, your choice of a lender and loan type could have a huge impact on your finances. Most people depend on mortgage rate comparison for deciding the lender. However, this process is not as easy as it may sound. Simply, going through the comparison charts that indicate the interest rates or equated monthly installments will not help you to take the right decision. Your choice should be influenced by host of factors; not just the monthly installments or the interest rates' figures.

So, you must be thinking about the key factors you should look for while doing mortgage rate comparison. The first thing you should remember is that you should compare only same loan products offered by different lenders. There are different types of loans, like fixed and variable rate, available. You will get a clear picture only if you will compare the same type of loans. Comparing a fixed home loan mortgage of one lender with the variable home loan mortgage of another lender will not help you. It is best if you decide which type of loan you want to take before starting the mortgage rate comparison.

Most mortgage rate comparison indicates only interest rates. However, only interest rates do not indicate the cost of a loan. There are several other fees and charges that could affect the overall cost of home loan mortgage. Some of the fees or charges that you may have to pay while taking a home loan are loan processing fee, broker's fee, mortgage insurance, attorney's fee, surveyor's fee, and credit report fee. If you are looking for refinancing your home loan mortgage, then there will be closing costs that a lender will charge. It is best to take these costs in to consideration while deciding the best lender providing lowest mortgage rates.

Instead of comparing interest rates, compare APR of the home loans. Interest rates represent the rates charged by a lender on lending the money for a specific time period. APR represents the cost of loan, as it not only includes the interest rate but also other charges for getting credit.

The other important thing you should check while doing mortgage rate comparison is what is the minimum amount of down payment. You can even get 100 percent finance for your home these days, but still some lenders prefer at least 5 percent down payment. This helps them to reduce their risk in case the prices of real estate crashes.

You should pay attention to the mortgage points. These points can help you lower the interest rates on your loan. They are best for people who have low credit score or who are not paying enough down payment. In both these cases, the lenders give loans at high interest rates. In order to lower the interest rates, you can pay points. Generally, one point is equal to one percent of the loan amount. It is best to ask the lender to convert points in to dollars for easy comparison.

While doing mortgage rate comparison, you should compare the features of the home loans. The lenders offer several benefits to the home loan borrowers to attract them. Some of the popular features are early repayment of home loan without any penalty or minimal penalty, offset account that helps to reduce the interest on the outstanding loan amount, if sufficient balance is maintained in it, and so forth. These features could also add or reduce the cost of borrowing.

If the mortgage rate comparison task seems overwhelming to you, you could take the help of a professional. There are several professional mortgage brokers that help their clients in getting the cheapest and best mortgage available that suits their requirements. They will not only find the lowest mortgage rates, but will also help you understand the mortgage terms and the process of comparing and getting home loan mortgage. Though, you can do all this through online tools available, such tools compare two or more loans based on only one or two factors. Often, such comparison does not help you completely in taking the final decision. Hence, hiring a broker may be perfect for you.

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The Roles And Responsibilities Of The Canada National Bank

Canada National Bank is the central bank of Canada. Although, it is important to know that it is not a government department. It is rather a crown corporation owned by the government. Though its activities are almost independent, its earnings go to the federal treasury and shares are directly held by the finance ministry. Besides that, it is not the federal public service agency but the bank itself that regulates the employees of this bank. It was after the introduction of the 1934 Bank of Canada Act that gave this bank the monopoly on the issuance of banknotes. The value of the Canadian dollar depends upon the actual amount of money created by this bank. Its main task is to promote the financial and economic well being of Canada. However, practically, a more narrow and specific objective is to print a certain amount of money in such a way that should keep the inflation stable between 1% and 3%. As per the reports, the average annual inflation rate of the Canadian currency has been 3.14% since the creation of the bank in 1934. Following is a brief overview on the roles and responsibilities of the Canada National Bank. Monetary Supply:

The Canada National Bank regulates the monetary supply in the country. They keep an eye on how much money is in circulation in the economy and how much their value is. The inflation control system is the cornerstone of the monetary policy framework. The bank uses this system to increase the predictability of inflation and keep the monetary policy effective as per certain measures as specified in the guidelines pertaining to the same. When demand is weak, the inflation decreases. So, to absorb the economic slack and to stimulate the economy, the bank reduces the interest rates. On the other hand, when the demand is strong, inflation tends to increase. So, to cool off the economy, the bank increases the interest rates. This way, it actually influences the short-term interest rates to maintain the effectiveness of the monetary policy.

Currency:

The Canada National Bank is the only authority in this country that can issue bank notes. It is their responsibility to design, produce, and distribute the Canadian dollar. They take many years of time to finalize a design for bank notes. There are two Security Printing companies - BA International Inc and Canadian Bank Note Limited Company that print the notes. The distribution is done by supplying bank notes to different financial institutions in a way to meet the public demand. There is a particular Bank Note Distribution System that regulates the distribution process.

Financial System:

The financial system of Canada consists of financial markets, financial institutions, and payments and settlement systems. The financial markets consist of foreign exchange, derivatives, equities, bonds, and money. The Canada National Bank plays a very important role in the financial markets. Some of its activities that influence these markets include management and marketing of government securities, its activities in the foreign exchange market, and many other such things. The bank also regulates the "payment clearing and settlement system" in a way to enable the financial institutions participating in the system to engage in large transactions in a safe and efficient manner. Overall, it is the responsibility of the bank to promote the efficiency and safety of the financial system of Canada.

Funds Management:

The Canada National Bank works as a fiscal agent for the Canadian Government, as they also engage in the activities pertaining to the management of public funds. For example, the government may seek advice from the bank on the efficient management of the public debt. The bank is also responsible for the management of the foreign exchange reserves of the Government. Besides that, they also manage the accounts of the Receiver General. It is their responsibility to ensure there is enough cash in these accounts to satisfy the daily requirements.

The headquarters of the Canada National Bank are located in Ottawa, Ontario, Canada. It is important to keep in mind that it is not a commercial institution. One cannot open a saving account here. It does not accept deposits from the general public and does not provide regular banking services. Its clientele are commercial banks, other central banks, and the federal government of Canada.

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Choosing the Mortgage Term That’s Right for You – Helpful Hints

IF only there was a one-size-fits-all repayment plan for mortgage holders, the real estate and financial markets would be much easier places to understand. However, choosing the mortgage term that's right for you can be a perilous affair, with the difference in interest rates equaling thousands of dollars that you will be obligated to pay in some circumstances. The best way to lock in a sound interest rate that you will be capable of repaying over the long term is to seek the advice of a professional who can best advise you as to what to do. There are of course, some helpful hints to also keep in mind when it comes to mortgage terms.

Traditionally, it was recommended by most mortgage specialists to choose terms that were shorter and then just keep renewing those, in order to gain lower overall interest rates. This is not always the case anymore, and with the advent of fixed mortgage rates either open or closed, a homeowner can negotiate a lower interest rate even with a longer mortgage term. This is one of the reasons why choosing the mortgage term that's right for you is more difficult these days, because the rules of the game have changed a little bit.

At the moment, Mortgage Canada Rates are at the lowest they've been in decades. This is the time to start carefully planning your financial future, and locking in those low interest rates. Choosing the mortgage term that's right for you can be easily achieved with this in mind, but it's important to carefully analyze your current situation first, before signing any paperwork that carries with it long-term obligations. Think about how much money is in your budget for the mortgage payments, and how much you can afford to keep paying. Is there any extra that can be siphoned from elsewhere?

The problem here is that today's historic low interest rates may not sustain themselves, so if you decide to go with a short-term mortgage plan then when it's time to renew if the interest rates have raised a drastic amount, you may not be able to keep your home at that rate. This is why considering a longer term may be a good idea, in order to lock in those low interest rates. These are all merely factors to consider when choosing the mortgage term that's right for you, as there is no pat answer that works for every household.

Another benefit to choosing a longer mortgage term if your finances aren't as strong as you would like them to be at the moment is that you will have more refinancing options after, for example, a ten year term rather than a one or five-year term. This will give you greater flexibility for lowering interest rates in the future or having your home reassessed, to lower overall monthly payments. After ten years, a great portion of the mortgage will have already been paid off, if not all of it.

As has been stated above, when choosing the mortgage term that's right for you there are a number of pros and cons for both short and long term plans. Unfortunately, there is not going to be one situation that works for everyone's financial situation. This is why it can be extremely helpful to sit down with a financial advisor to go over your personal situation, including the household income, how much you have in your savings, and long-term financial goals. Will you need to put children through university in the near future? Will there be other big investments?

These are all things to keep in mind when choosing the mortgage term that's right for you. Sitting down and working out a budget is a good way to get started, and to start looking at the actual numbers that you have at your disposal. This helps paint the whole situation in a potentially more realistic light, to get you started and ready to go in purchasing the household of your dreams. With interest rates so low at the moment, there is no reason not to tap into this exciting real estate market. More people than ever before have been able to buy homes, at little interest.

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Bank Mortgage Canada – 70 Lenders And 5 Banks

The little secret is out: there are just 5 main banks in Canada. On the other hand, there are more than 70 lenders who can render you a variety of loans. So, if you're interested in bank mortgage Canada, look beyond the official banks. The good news is that through lenders you can get more competitive rates as compared to many major banks like RBC, BMO, CIBC, Scotia, and TD. Canadian brokers are a smart lot. They access lenders with just a few clicks, thus, getting a chance to research rates, services, and products.

For a common person, it'd be a tedious task to research all 70 lenders for getting a suitable bank mortgage Canada. If you contact a broker, you can get your work done in a few hours. This is because the brokers have online access to all the important information with regards to mortgage, its types, the current rates, and the procedure involved. This can save you a lot of expenses, time, and energy that would otherwise have been spent in scanning those 70 lenders.

Mortgage Types:

There are various types of bank mortgage Canada - reverse, zero down, fixed rates, variable rates, open, closed, and interest-only. In open mortgage, you can pay the entire amount or a portion of the mortgage at any time. There are no fines for paying before time. Such mortgage generally has tenure of 6 to 12 months. However, their interest rates are higher.
Closed mortgages have undergone a shift in the recent years. Earlier, you could not pay before time. Today, there is certain flexibility in such mortgages. Many lenders provide prepayment alternatives, which allow you to pay your loan earlier.

The most popular choice in mortgages is fixed rate. Your interest rate gets locked up. Such mortgages can stretch for as long as 35 years. The interest rate is a bit lower than that of open mortgages.

If you want an alternative to the conventional bank mortgage Canada, opt for home equity line of credit. You get to fix your monthly payments and can access a portion of the appraised value of your home. As your mortgage balance reduces, your line of credit goes up.

Banks V/S Brokers:

Banks usually provide around 5-6 products and rates, which include Fix rates, New to Canada, Open mortgages, Closed mortgages, Variable Rate mortgages, and No Income mortgages. On the other hand, the 70 lenders offer around 10-15 products. This is to keep pace with the stiff competition prevalent in the mortgaging market. But, not all products are suitable for all clients. There are conditions and criteria attached to each product. You cannot simply ask a product and get it. You need to fulfill the set criteria to be eligible for the products. Brokers can give you sound advice on what product is best for you.
Now, not all brokers are saintly enough to give you genuine advice on bank mortgage Canada. Some of them do not believe in making the efforts in researching thoroughly about the intricacies involved in mortgaging. They hurriedly provide solutions and take their money. Therefore, it's important to choose the broker with care. You must never pick a strange name. Always go for brokers who are well known for their reliability, knowledge, and way of dealing with clients.

There is software that provides speedy and accurate information on bank mortgage Canada. Besides, another advantage of taking the service of private lender is that you can contact them with a hope of getting a loan even with bad credit. These lenders are willing to take the risk, although they might charge more. But, banks simply refuse to give loans as soon as they learn that you're a bad credit holder. In addition to this, there are many lenders that provide free services. You cannot expect a bank to do this.

Irrespective of your credit score, the lenders assist their clients eagerly and help them save dollars. This, in turn, develops good and long-lasting bond between the lenders and their clients. It's a win-win situation. The lenders build a strong clientele and increase their referrals. On the other hand, the client, that means you, get bank mortgage Canada with ease.

A 7-Step Guide To Choosing The Best Bank Mortgage Rate In Canada

If you are looking for the best bank mortgage rate in Canada, there are several things that you need to take into your careful consideration. Considering the overwhelming range of options out there, you may find it a difficult task to make an informed decision on which option is going to be the best possible choice for you. So, a thorough comparison-shopping is must. You need to take a systematic approach while you are researching the different options available out there. Following is a brief rundown on some of the important steps that you should follow in this regard. Check Your Credit Report:

The first thing that you have to do is check your credit report. There are credit agencies that maintain this record for consumers. You can contact these agencies and request for a free copy of the report. Check these reports thoroughly for errors and mistakes. If there are any issues with them, get them fixed properly before you start your research for the best bank mortgage rate. Sometimes, the reports show a bad credit score just because of certain errors. Therefore, it is important for you to make sure that there are no mistakes and that the score reflected by the report is 100% correct. Always remember, a good credit score is the key to getting the best deal in mortgage rates.

Determine The Amount Of Money You Need:

The actual amount of money that you need to borrow depends upon an array of factors, such as the amount of money you are capable to pay as down payment, the kind of house you are buying, and where exactly the property is located. You must also be willing to pay at least 20% down payment because otherwise you may be asked to pay additionally for private mortgage insurance.

Evaluate The Fees And Mortgage Points:

Most banks in Canada charge the fees for underwriting a mortgage in the form of points. Therefore, it is important for you to review and compare the points offered by different banks. Remember, just because a quote reflects a very low mortgage rate, it does not necessarily mean it is the best choice for you. You must also study the applicable points and fees to get the true picture.

Calculate The Mortgage Payment:

The actual mortgage payment may vary significantly depending upon whether you are opting for fixed or adjustable rates. Both the options have their own pros and cons. Fixed rates are fixed for the complete loan term. ARMs on the other hand offer a low rate in the beginning, which can further go up or down in the following years depending upon market conditions.

Shortlist 3-4 Banks And Request For Free Quotes:

The next step is to shortlist at least 3-4 banks that are well reputed in the industry. Contact each of them and request them to send free mortgage quotes to you. You can place this request online through their official website, on phone, or by paying a personal visit to their office. Do not pay anything to obtain the quotes. Reputed banks in Canada must provide you no-obligation quotes free of cost.

Compare Quotes From Different Banks:

Once you get the quotes, the next thing that you have to do is compare the terms and conditions thoroughly. Some important factors that you must take into account in this regard include fees, points, rates, and mortgage payments. You also need to compare the offers based on the type of rates offered. The adjustable rates may prove to be a good choice for those who are looking for low monthly mortgage payments for the initial few years, but they must also be ready to deal with the uncertainties of the future. On the other hand, if you are one of those who do not want to take any risk, you had better go for a fixed rate mortgage.

Obtain Estimate Of The Costs Associated With Loan Origination:

Many people often forget to look into this aspect when they sign up for a mortgage program. Therefore, make sure you ask your bank to provide you an accurate estimate on the overall costs associated with the mortgage loan origination.

Overall, if you follow these seven steps thoroughly, you should not have much difficulty in choosing the best bank mortgage rate in Canada.

Know More about Interest Rates Mortgage Canada

If you are planning to buy your first home, then you definitely need to get a solid understanding of the mortgage financial options available in the market. Various mortgage options are already there and more keep getting introduced all the time.

The first and foremost step for you would be to get a pre-approval for your mortgage. And mortgage professional would be able to help you with this. Once you get the pre-approval, you'll have the required knowledge of the price range of the properties, also the interest rates mortgage Canada that you can secure for the mortgage rate-hold period, which is usually 90-120 days. You also need to consider the mortgage payments that you can afford monthly or bi-weekly. The biggest hurdle that most first time owners face is the down payment that needs to be made. Generally, the down payment is 5% of the actual property value. If the down payment you are making is less than 20% of the purchase price of the particular property, high ratio mortgage insurance fee will be added to the total mortgage amount.

With the help of the federal home buyer's plan you can in fact use funds in your RRSP for making the down payment. You can access around $20,000 to buy or build a home without facing any tax penalties. But you'll need to pay back this amount in to your RRSP within 15 years.

Planning A Renewal Of Your Mortgage?

So are you planning to renew your mortgage? Look upon it as an opportunity to secure a competitive interest rates mortgage Canada. You'll also be able to get a mortgage option that is more suitable for your particular requirements.

If your present mortgage lender has sent you the papers for a mortgage renewal don't sign it blindly. Find out about all the mortgage options available. Most probably you'll find that you are paying a much higher interest rates mortgage Canada and are probably using a plan that is not best suited to your needs.

The best option available would be to hire a mortgage professional. He/she will be able to tell you about the options available and also the mortgage interest rates. He'll also be able to arrange for a mortgage rate hold for you. He'll also be able you find a customized mortgage plan suited to your particular requirements. The fact remains that your financial position might have changed since you first obtained the mortgage, then why shouldn't your present mortgage plan be more according to your present financial state.

The mortgage renewal is in fact the best time to gain utmost out of your mortgage financing. Your mortgage advisor will be able to discuss with you about the various options available in detail, the rates, and the trends of the interest rates mortgage Canada that will help you gain more from the situation.

Restructuring Your Debt With The Help From Your Mortgage Finance?

Many people in Canada are now trying to deal with various debts accumulated from the various sources like credit cards, car loans, etc., and in most cases they end up paying more interest than they should. You can easily pay off the higher interest debts by re-financing your mortgage.

Restructuring debt helps in managing the borrowing costs. You can try to pay off your mortgage amount in a short time, thus saving thousands of dollars in interest rates mortgage Canada every month. Or you can make smaller mortgage payments and have extra cash available to pay off other debts.

Refinancing your mortgage can help you in your various requirements. But make sure you thoroughly understand the conditions of your present mortgage option so that you know what if any penalties you might acquire by refinancing the property.

Buy A Property And Rent It Out:

Buying a property whether it is a luxurious condo or a simple apartment can help in steadily building your wealth. It is more like an investment, but before you start doing it, you need to understand the mortgage options and also the interest rates mortgage Canada that you would have to pay. There are some unique aspects of financial plans dealing with rental properties. Typically mortgage lenders demand a down payment of 5% of the actual property value if the mortgage is insured and otherwise is around 20%. You need to gather all the required information you would need before you venture out in to buying more property.

It can't be emphasized enough that before you plan to buy your first home, second one, or third property, make sure you find out in detail about the mortgage plans and the interest rates mortgage Canada best suited to your present financial condition and your particular requirements.