Author: cfcl_every

Homeownership requires very careful and proper preparation. Educating yourself about the key aspects of mortgages will show you what makes you a trustworthy borrower and how to improve your possibilities of getting approved for the best mortgage. To help you navigate the process, Expert Financial Corporation has put together five tips to ensure your mortgage application is approved.

Tip 1: You should consider hiring a mortgage broker.

It can be quite frustrating to go through the mortgage process and find the best deal. As a mortgage brokerage, we can help you find the right mortgage deal for your circumstances, and help you submit the best possible application.

Tip 2: Understand and calculate how much you can afford.

Before you even start house-hunting, it’s essential to work out how much you can actually afford. The higher the deposit you put down, the less you need to borrow. The lender will consider whether you can afford to meet your mortgage repayments, taking into account your current income and expenses.

Tip 3: Check your credit score.

Lenders also want to know how creditworthy you are, and one of the things they’ll check is your credit score. Your credit score can be affected by various factors, from the way you pay your bills to the amount you put on your credit card each month. Most people don’t think much about their credit score until they need to apply for their mortgage and might be in for an unpleasant surprise.

So, it’s worth checking your score well in advance before applying for a mortgage. If it’s worse than you thought, you may need to spend some time building up a good credit history before buying. We can show you how. It’s also worth checking your credit report for any errors and having those corrected. This way, you will be able to get a good interest rate, with an A lender.

Tip 4: Stay in your price range.

It’s one thing to do your homework before house-hunting, but with your dream home on the line, you may be tempted to make a higher offer just to beat out the competition. However, make sure you stay within the range of your mortgage.

Tip 5: Budget for your closing costs.

Buying real estate entails many costs in addition to the price of the house itself. Some expenses you need to consider are lawyer fees, title insurance, land transfer tax, and registration fees. You can do a bit of research on the closing costs while buying a house for approximate figures which you can prepare yourself for.

Expert Financial Corporation strives to find you the best options for your financial needs and goals. With our expert advice and professional services, you receive the mortgage that suits your needs. Our team of highly professional and qualified agents is always available to provide you with the best possible deals for your mortgage requirements.

Contact one of our experts at  Expert Financial Corporation today @ 416-302-5776 for a FREE consultation.

Most homeowners when they first sign on to a new mortgage don’t give a lot of thought to renewing or refinancing their mortgages. But eventually, when their mortgage term is up (most mortgage terms in Canada are five years although they may also be longer or shorter), the time will come for them to renew.

Because the words mortgage renewal and mortgage refinancing sound similar, some homeowners make the mistake of thinking that they are the same thing. This, however, is incorrect. While both mortgage renewal and mortgage refinancing involve getting a new mortgage, they have some very important
differences

What is mortgage renewal?

Mortgage renewal occurs when the term of your current mortgage is up but you still have money owing on your home. Usually, you will get a notice from your lender a few months or so before your term ends informing you that the term is up and offering to renew your mortgage for another term at a rate determined by the lender.

As a homeowner, you have the option to sign and send back your mortgage renewal letter or shop around to see if you can get a better rate or more favorable terms from another lender. It is strongly encouraged that you work with a mortgage broker at mortgage renewal time to ensure that you get the best rate and terms for your situation.

What is mortgage refinancing?

Mortgage refinancing happens when you decide to get a new mortgage before the term on your current mortgage expires. This means you will have to break your current mortgage early.

While mortgage refinancing in most cases will cause you to have a financial penalty by the lender for breaking your first mortgage, there are some good reasons why homeowners may choose to do this. Often people refinance their mortgages when interest rates have dropped significantly or when they wish to access money from their home equity (to consolidate debt, pay for a home renovation, etc)

It is strongly advised that if you are considering refinancing, you do so with the help of a mortgage professional who can determine whether you will be able to save enough in interest payments to offset the financial penalty for breaking your mortgage.

Are you interested in mortgage renewal or mortgage refinancing? Expert Financial Corporation can help you with both! Contact us today at 416-302-5776 for a FREE consultation.

Most people are unaware of the benefits when you use a Mortgage Broker, most people think they are only there for people with Bad Credit or if you have been declined by the Bank or of you need Private Financing. Well, let me just tell you that it is not true. I have been a Broker for many years and I have helped all types of clients in many situations with their Approval. But let me share with you three great benefits when you use a Mortgage Broker.

1. Great Rates

Did you know Brokers have access to Multiple Lenders who they send business to on a daily basis? Because of this volume, they send to the multiple Lenders they work with, Brokers can access and negotiate Great Rates and even get access to Special Limited-Time Rates not available to the public. These Rates are Exclusive to Brokers and their clients.

Brokers have great rates for all types of clients and their unique situations, even if you have excellent credit, bad credit, are self-employed or have been declined by the Bank. There is no need to worry a Broker can help you with finding the Best Rate for your situation from the many Lenders who they work with. The easiest way to get the Best Rate is to just contact a Broker.

2. Service

A Broker works for you, the client and it is the Broker’s job to represent you to the Lenders. It is important to remember that Brokers work for you and not the Lenders, so that means they will always look out for your best interest and put your needs first before anyone. Brokers go above and beyond for their clients to ensure they are getting the best service possible for their Financing. This means your Broker is available when you are, so if you work from 9am to 6 pm during the weekdays, a Broker can work around your schedule to get you Approved. If you live a fast-paced life or work the long hours then it makes perfect sense to work with and use a Mortgage Broker.

3. Options

Did you know that Brokers have access to up to over 50 Lenders, which include most of the Major Banks, Credit Unions, Alternate Lenders, and Private Lenders? With so many Lenders available to choose from, a Broker is ready to help with and find a Approval for almost any situation and provide you the Best Options that work for your situation. So that means if you are looking to Buy a Home, Refinancing, Renewal, looking for an Equity Take Out, Debt Consolidation or even a Home Renovation then it is in your best interest to work with a Broker for your Approval.

Mortgage refinancing is a common strategy that Canadians use to lower their interest payments, consolidate their debt, save money, or access their home equity. But is it really a good idea? The answer is, that it depends on a few factors. Refinancing could save you a lot of money over time, but then again it might not. Or there may be other mortgage strategies that make more sense in your situation.

To determine whether mortgage refinancing is a good idea for you, you should sit down with your mortgage broker and let them calculate a few scenarios for you. In general though, here are a few of the factors you will need to look at in making your decision.

How much interest can I save?

If interest rates have fallen since you applied for your current mortgage, then refinancing could save you thousands of dollars over the time you own your home. And if you are using your mortgage refinance to consolidate high-interest debt, then the savings will be even more substantial.

How much of a penalty will I pay?

In order to refinance your mortgage, you will have to break your current mortgage early which usually means you will have to pay a penalty. The farther away you are from your renewal date, the higher that penalty will be. If you are close to your renewal date, refinancing may make sense. If you recently renewed your mortgage, then another strategy such as a second mortgage may be a better option for you.

How disciplined am I?

If you are using mortgage refinancing to consolidate debt, then it is important that you can be disciplined enough not to run up your credit cards or line of credit again. If you do, you could be in a worse situation than before you refinanced. Consider putting a budget together to see if refinancing can really be the start of a long-term solution for you or if you should be seeking out other financial counseling.

If you think mortgage refinancing might be for you, you should sit down with an experienced mortgage broker to help you make your decision. To schedule a FREE consultation, contact one of our professionals at Expert Financial Corporation @ 416-302-5776

Most homeowners when they first sign on to a new mortgage don’t give a lot of thought to renewing or refinancing their mortgages. But eventually, when their mortgage term is up (most mortgage terms in Canada are five years although they may also be longer or shorter), the time will come for them to renew.

Because the words mortgage renewal and mortgage refinancing sound similar, some homeowners make the mistake of thinking that they are the same thing. This, however, is incorrect. While both mortgage renewal and mortgage refinancing involve getting a new mortgage, they have some very important differences.

What is mortgage renewal?

Mortgage renewal occurs when the term of your current mortgage is up but you still have money owing on your home. Usually, you will get a notice from your lender a few months or so before your term ends informing you that the term is up and offering to renew your mortgage for another term at a rate determined by the lender.

As a homeowner, you have the option to sign and send back your mortgage renewal letter or shop around to see if you can get a better rate or more favorable terms from another lender. It is strongly encouraged that you work with a mortgage broker at mortgage renewal time to ensure that you get the best rate and terms for your situation.

 What is mortgage refinancing?

Mortgage refinancing happens when you decide to get a new mortgage before the term on your current mortgage expires. This means you will have to break your current mortgage early.

While mortgage refinancing in most cases will cause you to have a financial penalty by the lender for breaking your first mortgage, there are some good reasons why homeowners may choose to do this. Often people refinance their mortgages when interest rates have dropped significantly or when they wish to access money from their home equity (to consolidate debt, pay for a home renovation, etc)

It is strongly advised that if you are considering refinancing, you do so with the help of a mortgage professional who can determine whether you will be able to save enough in interest payments to offset the financial penalty for breaking your mortgage.

Are you interested in mortgage renewal or mortgage refinancing? Expert Financial Corporation can help you with both! Contact us today at 416-302-5776 to Book an appointment for a FREE consultation.

Many of us have started counting the weeks until summer is finally here. It is the time for homeowners to indulge themselves in the pleasure of home renovations. A Home Equity Line of Credit, or often known as HELOC is a loan where you use the equity in your home as security.

It is similar to taking a second mortgage, but the borrower doesn’t receive the total amount upfront. The lender lends you a certain amount that you use within a term, and spend as a line of credit. To many Canadians, it is the ideal financial tool for improvement projects of your home.

Below are some of the reasons why:

a) Ease of Access to Available credit

Depending on the equity you have in the property, you may be able to borrow a significant amount of money. In an ordinary home equity loan, you can get a lump sum. You then have to make monthly payments towards it, as you do for the mortgage.

You can borrow up to your limit or less than that. Monthly payments may vary depending on the money you owe.

b) Lower Interest Rates

The lender relies on your home as collateral. And so, it is willing to loan you the amount at a lower rate. It charges less than concerning interest, compared to a credit card. It is so because the lender faces lower risk as compared to an unsecured credit card.

Some lenders also offer introductory teaser rates that may apply for the first six months and thus make them, cheaper.

c) Debt Consolidation

A HELOC can be a great way for you to consolidate your debt. But you have to exercise discipline in making payments on your line of credit. You can use it to reduce the monthly outgoings that you have to pay on loans or credit card balances that charge higher rates.

d) Flexibility

It gives you the ability to borrow up to a certain amount, in a specified period. And you don’t have to use any of that money. Thus, it may serve as an emergency fund to cater for costly home repairs that are urgent or projects that run in stages.

First, review your financial situation before you choose to borrow against your home. It will help you avoid the pitfall of having to reload. Understand the terms of the loan and ensure that you will be comfortable repaying the amount before it is due.

Your home is an important investment. We all have different reasons as to why we want to renovate. If the family is growing, you want to make more room; it could be to improve the look of your home, or the need to conserve energy, among many other things.

Smart renovations will also improve the value and utility of the property. Now that you have determined the need to renovate, you have to consider your financing options. You will first have to determine the scope and scale of the project.

Don’t forget to consider your repayment plans. For Canadians, the following are the financing options for your home renovations:

1. Home Equity Line of Credit (HELOC)

It works in the same manner as a personal line of credit. It is more cost-effective as compared to using your credit card and drawing cash advances. You can borrow as much as your limit, and you will require mastering discipline to repay, and you pay as you wish.

2. Another Mortgage

This method provides you with upfront cash, and you will have a repayment plan that’s structured. It is a loan that you take in addition to the existing mortgage on your property. You will have to pay back the loan amount, on top of the payments required on the original mortgage.

3. Equity Take-Out

It could be an ideal option for a homeowner whose lease is due for renewal and has been putting off plans for renovations. If you have equity, you can access some of it by borrowing on the “as-if-improved” value of the home. You can also opt to replace the current mortgage with a new one that’s based on 80% of the appraised value of the house.

4. Financing Improvements Upon-Purchase

If you have found your dream home but still need to make a few renovations upon purchase, you can borrow more money as part of the mortgage financing for the purchase. It could be in undertaking repairs that add value to the property, e.g., getting new windows, roof, kitchen, etc.

Here, you add the estimated cost of the renovations to the mortgage. With a 5% down payment, you can get up to 95% of the value of the property after improvements, with a CMHC Mortgage Loan Insurance.

Before you break down your walls for renovations, it is advisable to get professional advice on your financing options. Reach out to Expert Financial Corp for your mortgage solutions.

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.