Month: March 2018

Ever heard people speaking about an unregulated mortgage market? It is a market that comprises of lenders who are not within the purview of the banking regulators of Canada. They include private lenders who could be individuals or companies.

On the other hand, in a regulated mortgage market, lenders are regulated federally, and in Canada, by the OFSI (Office of the Superintendent of Financial Institutions). In that, the monoline lenders and banks follow the rules as set out by the OFSI. The changes made to the mortgage rules in the regulated market has caused many Canadians to turn to the unregulated market.

What are the characteristics of an Unregulated Mortgage?

• Operates Without Rules

When a private company or individual lends money to fund a mortgage, no, body governs the transactions. If a borrower defaults, then, the lender forecloses. However, the standard law applies, and if a dispute arises between the parties, it becomes a civil matter.

• Operates for a Short-term

Private mortgages often last over a short span. Typically, between 1 to 3 years. Such lenders don’t focus solely on the credit history of the borrower. Several others factors matter when reviewing your application. That includes marketability and the overall value of your property.

• Higher Interest Rates

Due to the risk of lending money to a borrower, these mortgages are usually offered at a higher interest rate than a typical mortgage. As the borrower, you will have to make monthly payments on the interest. It is so because private mortgages are interest-only loans.

Nevertheless, you will still owe the lender the full principal amount, at the end of the term of the mortgage contract.

The general guidelines that govern lending may exclude many potential borrowers who can pay back their loans. That’s where private lenders come in. Suffice to say; the unregulated market is growing.
And as it becomes more difficult to qualify for a traditional mortgage, many Canadians are opting for the unregulated market. Feel free to reach out to us at Expert Financial Corp, for your mortgage needs or consultation.

How does climate change and owning a home relate? You may wonder. Well, in Ontario, a quarter of the greenhouse gas pollution is by buildings. It includes both business and homes.

As the Ontario Government tries to reduce pollution, it launched the Green Ontario Fund, last year. It is a program that will incentivize property owners to make their homes energy efficient through offering rebates. It applies to homeowners and tenants alike.

If you own a home and believe in going green, the next probable question is how the program works? For owners, in particular, you need to work with an approved contractor, as listed on GreenON.ca. They then apply to the program.

Once the work is completed and you have paid for it, you will have to send proof of the job done. In two to three months you will get a rebate cheque in your mail. Easy peasy. As for renters, you will first need to get consent from your landlord.

The program will make it easy for you to make energy-efficient home renovations, and at an affordable cost.
Green Ontario Fund Rebates Outlined
• $100 smart thermostat rebate

You don’t need to leave your air conditioning on when you go to work if you have a smart thermostat. You just need to program it to meet your needs. Find a reliable manufacturer, Ecobee or Nest.
And submit the rebate application through their rebate online portal. It is a natural option for renters, too.

• Up to $5,000 to replace windows

The glass and panes of our windows are the principal avenues where heat can escape from our houses to the environment. Upgrade your regular windows to those of high performance at $500 per window. It gives you room to buy up to 10 windows, to sum up to $5000.
High-performance windows help in minimizing condensation, loss of energy and noise from the outside.

• Up to $5,800 off air source heat pumps that are Energy Star-certified

Depending on the season, you will want the inside of your home to cool or be warm. Air-source heat pumps do just that. They use heat exchangers, in that, during Summer, it draws heat from your home, to keep it cool, and vice versa, when it’s cold.
It only applies to pumps that meet the requirements of the program.

• $7,200 off on new insulation

Control the temperatures inside your home with proper insulation. Older homes especially, are under-insulated. There’s also a $100 rebate if you do air sealing renovations to your home.

• A maximum of $20,000 for ground source heat pumps that are Energy Star-certified

Such pumps draw heat from mother earth. It reduces one’s cost of heating their homes by half. It will keep your home ventilated during summer by reversing the cycle. If you already have a heat pump, there’s a rebate of up to $4,500 for repairing a heat pump that exists.

As you shop around for houses, factor in costs to make your new home energy efficient. If you already own a home, nothing is stopping you from joining the Going Green movement.