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Wednesday, 21 March 2012

To buy or not to buy, that is the question!

Is this the right time to buy a home?
Plunging real estate values are allowing many Canadian renters to breathe a big fat sigh of relief. That’s because, prior to the recent price collapse triggered by the U.S. sub-prime crisis, those who had hoped to buy at some point in their lives were forced to sit on the sidelines, agonizing, as their dreams of home ownership seemingly evaporated in the face of skyrocketing home values.
Not anymore. Real estate prices are down across the country and interest rates are at an all-time low. So is now the time to buy?
It depends on your situation, says Joe Czentye of MortgagePRO “renting offers advantages, including a great deal of flexibility. If you’re not sure you’ll be living in a particular city for any length of time, for example, then you don’t have to worry about fluctuations in the real estate market or the headaches and costs of selling.” And renting is a lot less expensive than being a homeowner. Renters don’t have to come up with down payments (a minimum five per cent these days), insurance costs are lower due to insuring contents-only as opposed to contents and structure, and there are no property taxes or maintenance costs. Plus, with fewer homes now selling, an increasing number of properties already on the market are likely to wind up offered as rentals – driving rental suite availability up and prices down.
However, there has been – and always will be – one big knock when it comes to renting. The money paid in rent is gone forever. Owning a home, on the other hand, allows buyers to build equity and enjoy a place they can call their own while remodeling it to suit personal preferences. And while home prices may now be on the way down, in the long term, says Joe, real estate has proven to be a good investment. The economy may be reeling at the moment, he notes, but eventually it will recover. When it does, home prices will stabilize and the price pendulum will start swinging the other way again.

Five Tips for Buyers
You’re a first-time buyer ready to take the plunge? Keep in mind:
• On a monthly basis, it typically costs more to buy than rent a home of equal value. In addition to a mortgage, homeowners must factor in property taxes, ongoing maintenance, legal fees (such as closing costs) and higher insurance premiums. And with down payments of less than 20 per cent, mortgage insurance is required.
• It’s important to set aside a nest egg for emergencies – the lack of which is behind many of the foreclosures currently taking place in North America. A temporary loss of income or the need for a new furnace shouldn’t sink the ship.
• Those buying condos also have monthly condo fees to pay. Potentially, monies to cover assessments for repairs and upgrades are also needed. Buyers are strongly advised to carefully examine strata council minutes for indications of upcoming expenditures.
• A home inspection is strongly recommended prior to buying; it’s the best $400 a prospective homeowner can ever spend.
• The importance of shopping around for the best mortgage rates and terms.(Obvious, but sometimes overlooked.)
• A final cautionary math note: mortgage sellers frequently use mortgage calculators to illustrate the advantages of buying over renting. But, as noted, such calculations frequently omit many relevant costs – and almost never emphasize the need to have contingency funds set aside for emergencies.
We Canadians are getting used to the media telling us that the sub-prime mortgage issue causing so much havoc south of the border can’t happen here. But is it true? Maybe. Despite the fact that Canadian banks are typically more assiduous at vetting borrowers’ income and asset statements, and the fact that the mortgage default rate in Canada is a manageable 0.33 per cent, declining house prices and mounting job losses could drive this number into the one- to two-per-cent range. “That may not sound like much, but for the banks it would be a concern,” says Joe. As for Canadians, it could lead to increased credit restrictions and a further drop in both consumer spending and house prices.

Wednesday, 7 March 2012

Mortgage Renewal: What the banks do not want You to Know!

The truth in renewals; from the Experts:

So your renewal notice from the bank showed up a few weeks before the due date, offering you convenient, just check here, initial here and sign there options, too convenient to pass by, you are set, right? WRONG! You do not sign anything till you know their offer is a competitive one or they are offering you the best rate and product you deserve.  Sometimes they are sending renewal notice just a few days prior to the due date, hoping you have forgotten about your renewal, what you most likely did, assuming you will just sign to get it over with as you panic, thinking of no time left to shop the offer. Now, do you trust the bank playing this cheap trick on you? NO? There is one more reason to get a second opinion! RIGHT!

Need a mortgage, need a pro, MortgagePRO!
Our job is to know banks; credit unions, trust companies, MIC's and private lenders alongside lenders only available to brokers, products and rates. You must know, mortgage lenders are competing for your business. It is true when the market is hyped and it is even more true when it is slow.  Who do you choose?

Branch offer vs. MortgagePRO offer!
Every branch is independently responsible to sell mortgage and other financial products to you. They only have one rate fitted to your needs, that is all. They will not be able to be flexible on rates and or terms, you are getting only one contender to offer what they have. Most of the time they will offer you their posted rate and or just a rate what can be beaten by our sophisticated operation by bringing you other lenders offers to the table.We can beet your bank's posted rate, matter of fact we can save an average $15,000 on a $300,000 mortgage over a five years term. You just visit us online and get hold of us, we will be glad to provide you with a FREE no obligation consultation session to assess your situation.

Click on picture to claim your free entry to show my appreciation for reading my article!

Don’t forget, our goal is to provide you the best possible rate on the market on any given day and a mortgage product not only will save you money, but gives you a peace of mind, because our existence depends on you, our most precious asset, our respected client. Without you we do not exist.  

Mortgage refinence! What the Banks do not want you to Know!

The most common reasons to Refinance:

Renewal: Your mortgage amortization years are divided into 1-2-3-4-5 and even 10 years term at a time, enabling your lender to adjust interest rate to current market conditions and or simply reclaim the loan from you for various reasons, what they do not even have to disclose to you. Make sure you are using a mortgage broker to shop the lenders for best rates and products along with the most suitable term custom fitted to your needs and not of the lenders.

Lower rate: You should or have your broker time to time check the rates! Refinance only when your broker can provide you a calculation showing you save money for the long term and or your needs have changed and need another product to adjust to changes. Nothing wrong with to cross the floor to another lender to save money, it is your money. Send us an email with: "I want my free entry" in the subject line. No obligations!

Need money: You will never find cheaper money than mortgage money. As it is secured with the equity in your home you are able to borrow the funds needed against that equity without excruciating qualification process. Your equity is the value between the appraised value and the existing mortgage amount.

You might have reasons to refinance when you need money for business, repair your credit, debt consolidation or simply you want to get your hands on some cash. Investing for a higher rate than is cost you a HELOC is the best way to go; you only pay interest on the portion what you are using and as added value you make your mortgage payment interest portion tax deductible.
To ensure, you are making the right move, you to use an experienced mortgage broker services, because you can make more damage than good if you are not an expert. A good broker will provide you with a plan, help you the precise execution of that plan and will be there for support and advise all the way along. 

Sunday, 4 March 2012

Private Mortgages aka Saving the day...

What is a private mortgage?A private mortgage is essential the same as a bank mortgage except the lender is a private individual or company. The terms and conditions of private mortgages are similar to that of bank mortgages, however costs related obtaining one and the rates are higher. The rate is negotiated for you by a Mortgage Broker!
Factors affecting rate and fees include:
    Credit Report, history- Down Payment- Net Worth-
    Loan to Value- Type of Property- Location, age of PropertyIncomeTypical first mortgages range between 9% and 13%. Second mortgages range between 12% and 16%

What fees are involved?You will be required to pay an appraisal fee (approximately $350.00), legal fees (approximately $1,500.00) and a mortgage broker fee (approximatley minimum $3,000.00 maximum 5%-15% of mortgage transaction). Other fees, such as a building inspection fee are rare but also may be applicable.
There are a number of reasons why borrowers require private mortgages:
Speed of closing the transaction!

Bank mortgages generally take 20 to 30 days to close. Private mortgage transactions can close in as little as 4 to 10 days.

Short term or bridge financing needed!
Banks generally are not interested in short term or bridge financing no matter what the rate. For a rate premium, private mortgage lenders/investors will finance these transactions.

Borrower wishes to avoid CMHC fees CMHC fees on bank mortgages can be massive!
Private second mortgage financing to avoid expensive prepayment penalties on a refinance of an existing first mortgage.
Borrowers with an existing first mortgage may wish to make renovations and upgrades to their property. Funding these renovations and upgrades through a refinance of the first mortgage could cost the borrower thousands of dollars in prepayment penalties. A short-term private second mortgage to finance these renovations and upgrades could save the borrower thousands of dollars in prepayment penalties. Also there are numerous reasons, like invest in revenue generating properties, start up business venture and likes.

Second mortgages for debt consolidations!
In society today, it is easy for credit card debt to get out of hand. Property owners, who have equity in their home, may wish to consolidate expensive 18% to 28% credit card debt into a second mortgage at 12-16%, repair credit and get back to regular low rate bank mortgage financing thus saving thousands on the long term.

Borrower may not qualify for traditional bank financing!
Private lenders will finance what the banks won’t. Banks generally have a strict protocol they must follow. Bankers may not be allowed leeway for personal judgment and assessment, even if the deal makes sense. For example, many borrowers are self-employed and generate large sums of revenue but show minimal income on their tax return. Borrowers may also be on a fixed income or asset rich and income poor so they do not meet the banks strict debt servicing ratios. Bank assessments of borrowers are generally heavily based on their credit report. Many borrowers may have a one time nonrecurring credit problem that can be explained. The banks generally will not take this into consideration.

Property may not qualify for traditional bank financing!
Banks generally shy away from financing commercial and income properties unless they are located in major cities. Private lenders/investors individually assess these properties and will provide financing if the transaction is deemed to be secure.

Using the services of selected Mortgage Brokerages involved in Private Lenders funded mortgages is allways your best bet. They are experienced in to secure you the best rate, fees and provide you with a Solution and a plan along with advices will guide you in this sometimes hard to follow process.
Before you go about to look for a private mortgage, please consider to get a FREE Advise!!!

Thursday, 1 March 2012

Tax deductible mortgage? Strategic planning!

Make your mortgage tax deductible!

For most of us buying a house is our biggest investment and the mortgage will be the biggest monthly obligation we will have to keep up religiously. Given the importance of a mortgage plays in our personal finances, there a few very important things you should know to save money and to use your mortgage as a financial tool, says mortgage expert Monica Mcleod of MortgagePRO the mortgage company provides mortgages for clients across Canada since way before the turn of the century.

Consider your mortgage as a debt. Generally, as a rule, when approaching a debt, it is important to evaluate every option to determine how to reduce its interest cost, higher the principal repayment and or regular payment, thus basically paying the principal down as quickly as possible and saving on interest payment as much as it is possible.

Get the best rate possible. Are you sure your bank is offering the best rate it is out there, what you are not only deserved but also entitled to? Are you sure they have your best interest at heart? Most assured, the mortgage product they are offering you at the branch is one and only they have, and while others are available out there can be brought to you by your mortgage broker ensuring you are well served by choosing the one with the best repayment options besides the best available interest rate, serving your needs and not of the lenders. Shopping for rates and product can be done conveniently, let you mortgage broker do the task for you. Brokers are experienced to package your request to the liking of the mortgage lender.

Squeeze play. There are ways to optimize your mortgage payments the way you are paying most for the principal and not to the bank to enhance their bottom line and profitability. You can consider for example the amortization period, thus paying less interest. Making weekly or by weekly payments; good way to shorten amortization. Lump sum payments are also considered strategy. When your saving account only yields 2% and you pay 3% on your mortgage, best to pay your mortgage down, the math is easy.

Mortgages as a financial tool. The rich have been using their homes and investment properties as a tool to maximize their return besides to ensure to pay less tax. Accumulated equity in your real estate, home can also be used as a source for home improvement, continued education, investments or just taking a vacation. You can also borrow tax free against you property and make yourself virtually mortgage free with efficient equity. Little strategic planning can take you to huge saving an we can help you with it, says Zoltan Padar of MortgagePRO.

When you need a mortgage, you need a pro; MortgagePRO. We can show you how can you save over $15,000 on a 5 year $300,000 mortgage, we can also help to make your mortgage tax deductible, pay your mortgage down faster and use proven technics to make your equity to work for you.
visit us at you will be glad you did
Put your ducks in a row, get a HELOC today, we know how, let us help.