29 Sep

Paperwork You MUST Keep

General

Posted by: Lynn Nequest

Paperwork You MUST KeepAs a mortgage professional there are things I wish more people were aware of which is why we are going to take a look into the paperwork we all need to hold onto to avoid frustration or even a decline when applying for a mortgage. Each of the following is taken from real life observations of everyday folks just like you and I.
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28 Sep

Getting Pre-Approved For A Mortgage

General

Posted by: Lynn Nequest

Getting Pre-Approved For A MortgageYou’ve been squirreling away your bonus cheques, savings and reducing the amount of times you visit Starbucks so you can finally get into your own home to build solid equity for your future. Now that you know what you want and what you can afford, it’s time to visit your local Dominion Lending Centres mortgage specialist to get yourself pre-approved for a mortgage.
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26 Sep

Credit Scores: Here’s what you need to know

General

Posted by: Lynn Nequest

Credit Scores: Here’s what you need to know

Credit Scores: Here’s what you need to knowThe interest rate you pay on loans for every major purchase you make throughout your lifetime depends on various factors, and is dependent on your creditworthiness – everything from the mortgage on your home to your car loan or line of credit.
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25 Sep

Bridge Financing – How Does It Work?

General

Posted by: Lynn Nequest

Bridge Financing – How Does It Work?

Rarely in life do things go as planned, especially in real estate.
In a perfect world, when buying a new home, most people want to take possession of their new house before having to move out of the old one. This makes moving a lot easier and allows you time for painting or renovations prior to moving into your new home.

Where it gets complicated; most people need the money from the sale of their existing house to come up with the down payment for the new house!!
This is where bridge financing comes in.

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22 Sep

Mortgage Changes are coming—are you prepared?

General

Posted by: Lynn Nequest

Mortgage Changes are coming—are you prepared?We know – more changes?! How can that be! With this ever-changing landscape, mortgages continue to get more complicated. This next round of changes is predicted to take affect this coming October 2017 (date not yet available). These new rules contain three possible changes, the most prominent being the implementation of a stress test for all uninsured mortgages (those with a down payment of more than 20%). Under current banking rules, only insured mortgages, variable rates and fixed mortgages less than five years must be qualified at a higher rate. That rate, of course, is the Bank of Canada’s posted rate (currently 4.84%, higher than typical contract rates).
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21 Sep

Avoiding “Sticker Shock” When It Comes to Mortgage Renewal

General

Posted by: Lynn Nequest

Avoiding “Sticker Shock” When It Comes to Mortgage RenewalImagine that, a few years from now, the time has come to renew your mortgage.

Several years back, you got a $350,000 at the then great rate of 2.24%. Your mortgage payments are $1522 per month.

Because we are now in what the financial brainboxes call “ an escalating rate environment “ – normal people just say rates are going up – when you open your renewal notice you might encounter the same feeling you get when you look at the price of a car you like.

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20 Sep

Mortgage Basics- Mortgage Types and Penalties

General

Posted by: Lynn Nequest

Mortgage Basics- Mortgage Types and PenaltiesThis is part two of our mortgage basics series. It is a good idea to revisit the basics when looking at a complex thing like a mortgage. There can be misunderstandings which crop up. The mortgage process can be very stressful as you wait for some anonymous entity top decide whether or not you are able to buy the home of your dreams. It is no wonder that things can get missed. Fear not! We will take a look at some of the basics so you can avoid things best avoided.
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19 Sep

Mortgage Basics – Types of Insurance

General

Posted by: Lynn Nequest

Mortgage Basics - Types of InsuranceIn part one of this two-part series, we will look at the types of insurances you will hear about during the mortgage process. Sometimes it is a good idea to revisit the basics when looking at a complex thing like a mortgage. There can be misunderstandings which crop up. The mortgage process can be very stressful as you wait for some anonymous entity to decide whether or not you are able to buy the home of your dreams. It is no wonder that things can get missed. Fear not! We will take a look at some of the basics so you can avoid things best avoided.
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18 Sep

Fighting with your spouse? A 2nd mortgage might fix your marriage and your money

General

Posted by: Lynn Nequest

Fighting with your spouse? A 2nd mortgage might fix your marriage and your moneyDid you know that 30% – 40% of couples who get divorced so so over money. Divorce isn’t cheap either, so now is the time to fix your fighting and your finances!

Are second mortgages a good idea? Sure, as long as you have an exit strategy and how it will get paid off at the least amount of cost.

With any debt consolidation loan, second mortgage or other options; you want to ensure you can afford the payments, look at all debt repayment options and work with a debt or mortgage planner to ensure you are achieving your goal. Don’t just band aid a problem…

So let’s take a look at a real life household family situation…

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14 Sep

Pay your Mortgage off Faster

General

Posted by: Lynn Nequest

You’ve purchased your home, your other debt loads are under control or paid off, and you feel as if you’re sitting pretty for your financial and retirement goals…what next?  Most of the time a 25 year amortization is normal and a number of homeowners will take exactly that long to pay it off and be mortgage free.  A growing number of homeowners, however, are putting their thinking caps on and realizing some of the benefits that can be achieved by paying that debt off sooner and being mortgage free far faster than they’d first intended. 

So how are they doing it?  Below we’ve outlined some of the easiest ways that you can pay your mortgage off sooner than you thought you might.

Accelerated bi-weekly payments

Accelerated bi-weekly payments are probably the most common way of reducing your mortgage, and most people looking for a faster way out of their home debt do opt for this choice.  What it means is that instead of a once monthly payment (meaning you make 12 equal payments per year), you pay every 2 weeks which results in a total of 26 payments per year.  Not only does this shave a few years off of your payment schedule, but it also reduces your interest paid; sometimes by tens of thousands of dollars.

Rounding up

Rounding up is one way to increase the payment on your mortgage without much more taken from your monthly budget, in fact, most people hardly notice the difference.  How does it work?  Whatever your mortgage payment is currently, take that amount and round it up to the nearest hundred.  For example, if you pay $850 per month, try paying $900.  It’s only an extra $50 per month, but multiply that over the years and you shave plenty of time from your schedule. 

Throw extras at your mortgage

If you’re covering all of your bases right now with the income you’ve got, a raise is just icing on the cake.  Use that icing towards increasing payments on your principle and you’ll be pleasantly surprised at how much more quickly that debt comes down.  You can do the same with income from extra work on the side or even from windfalls from birthday money, Christmas money or even bonuses.  Think about this scenario when tax time comes around – if you’ve contributed to an RRSP and are expecting a nice sum back from the government, multiply your benefit by applying that money onto your mortgage payment.

Lump sum payments

Check with your bank, but most will allow for one extra mortgage payment on the anniversary of your loan.  This amount will be applied directly to your principle, reducing the interest you’ll be paying on the remainder.

Check the competition

Your bank probably sends you mortgage renewal papers or gives you a heads up in some other way to let you know that it’s time to sign papers again.  Why not check around for what other lenders have to offer before signing a deal?  If you find someone offering a better interest rate, at the very least take it to your bank to see if they’ll match it.