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Tuesday, 23 December 2014

Pay off your mortgage vs invest for profit a lesson for everybody

Smart investor retires early
The personal finance debate over whether you should pay off your mortgage or invest your savings, some take a firm stand.
"Eliminating debt, high interest debt is one thing and paying off mortgage debt, low interest obligation is another one" notes Konstanting Kuligin of
Kevin O’Leary says maximizing your mortgage payments will be the safest investment you’ll ever make, but again, he was only in the mortgage lender business for only a few months, so his statement might not been well funded.

Real experts don’t always agree. Many will tell you: “It is more complicated than that” What, for example, is your earnings, your risk tolerance or your level of discipline when it comes to save? Which direction will you go for greater tax advantage? Yes, tax advantages are one of the main components of every investor to consider.
If you use the $5,000 to pay down the mortgage principal over the next 16 years while (4% interest) maintaining the normal monthly payments, you will have the whole amount paid off in 16.4 years (shaving off almost 9 years) you save more than $56,000 in interest
$5,000 in a portfolio that returns 6% annually in a tax-free savings account, your portfolio would be worth $136,064.40 after 16 years. Than think about what can you make in a double digit return environment, when your investment funds create double digit return, tax free and the unpaid tax portion will also bring new profit.
 “Assuming mortgage rates will stay at 4%, what is for sure not guaranteed”  says Kuligin.
“Double digit return, though it carries some risk, can weather some fluctuations and still be better use of your RRSP funds than paying down your mortgage, the cheapest money you will every borrow” he says.
“The bottom line is that the pay down is the best option if you are the conservative type and/or don’t have a lot of investing acumen. If you are comfortable with investing into deals with protected capital and great return, secured by prime real estate– but be sure the money is tax-sheltered.” president of MortgagePRO Ltd. Zoltan M. Padar a mortgage brokerage head quartered in Calgary, Alberta, explains the ins and outs of investing into real estate backed mortgages, where you are the bank, "beatthe bank, be the bank, it is not a secret, banks most favorite investment vehicles are mortgages, as well as the most lucrative" he added.

Visit us and learn more on the best arm chair investment ever been invented, rather you using you own capital, you borrow to invest and write off the cost, how to retire earlier, as smart investor retires early. Are you one?

Wednesday, 10 December 2014

Market is healhty BMO says

BMO says there is no danger of overbuilding. That includes the hottest markets in Canada, Calgary, Toronto, Vancouver.
"All in line with demographic demands" Kavcic said.
“Multi-unit starts accounted for all of the rebound in November, a slight increase to help the low vacancy rate.
Increases in BC, QC, ON surpassed activities in Alberta as low oli prices are putting pressure on housing start up.
As for the Canada’s two hottest cities, Kavcic says they remain “well behaved.”
“Vancouver starts are holding steady, averaging 19k through November, a trend that has held for roughly 3 years,” he wrote. “Toronto starts have slowed in the past year, with the year-to-date average now sitting at 29k"

Brought to you by Mortgagepro Ltd. 
Not every Mortgage Broker has the same experience, connections or abilities to help the people with age, job and credit issues, get a mortgage to restore their credit. . We do and we can help. We have programs and solutions to help self employed, new to Canada and also people with less than perfect or bad credit. 

Tuesday, 14 October 2014

No housing bubble, CEO says...

The CEO of the Bank of Nova Scotiasays that concerns over a housing bubble are overblown and the word ‘bubble’ is overused. Brian Porter says that credit growth is modest and the job market is stable and he believes that the bank’s exposure to the market has been well monitored and stress-tested. Porter says that Bank of Nova Scotia’s mortgage book of $200 billion can withstand interest rate rises or large increases in unemployment. He says the biggest challenge to the Canadian economy is maintaining its exports by ensuring good networks and he warns against being complacent.Read the full story.

When You need a mortgage, you need a PRO: MortgagePRO. Here are the reasons to avoid traps, get the best possible rate and the product fits YOUR circumstances, needs and not of the lenders. Our very capable, seasoned professional team can help you even when you have issues with job, age or credit or you are new to Canada and or self employed. Claim you FREE consulting session today!

Monday, 1 September 2014

Mortgage Broker saves you money, time and effort to get the best rate and product

A Broker Works for You
Mortgage Brokers work for you. Period. They have all the institutional and conventional lender to look at to get a mortgage for you to shop for the best rate and the product. Bank employees have only one product: their own. We suggest to have a second opinion before you sign.

More lender, more choices
When you go to a bank to inquire about a mortgage loan, the bank specialist is only representing one financial institution. Mortgage Brokers, at least a good mortgage broker has not only institutional lenders, but also private lenders, like MortgagePRO, to enable you to get a mortgage even when you have issues with credit, job and you are self-employed and or new to Canada

Brokers are Highly Trained
Mortgage brokers only get paid when the mortgage funds. Therefore they must be successful to get you a mortgage. Most Provinces require mortgage brokers to meet a strict set of requirements, Furthermore, mortgage brokers must be licensed and must complete continuing education courses in order to remain licensed in most Provinces. As such, you can be sure the mortgage broker you work with is current on the latest real estate and mortgage financing rules and events.

Reducing Credit Report Inquiries
Each time your credit report is pulled by a lending institution, your credit score may take a hit. When you work with a broker, your credit report only needs to be pulled once in order to recommend the best options. When you inquire at different bank, they will all pull your credit, hence lowering your score and chance.

Convenience, time saving
After you have submitted all of the necessary information to your mortgage broker, he or she will pass all of the required information on to those mortgage lenders that might be a good fit for you. As such, you are able to submit your information to multiple lenders while only filling out the necessary paperwork one time.

Do not forget; an educated client can make far better decision. Visit us and learn about mortgages, you will be glad you did. Contact us for a FREE no obligation consultation, even when you just have a few question, we will be glad to address all of your questions and concerns.

Wednesday, 20 August 2014

First time home buyers, what it means really!

About the Initiative

The HBTC assists first-time home buyers with the costs associated with the purchase of a home, such as legal fees, disbursements and land transfer taxes, which are a particular burden for first-time home buyers, who must also save for a down payment. The $5,000 non-refundable HBTC amount applies to qualifying homes acquired after January 27, 2009, and provides up to $750 in federal tax relief. An individual is considered a first-time home buyer if neither the individual nor the individual’s spouse or common-law partner owned and lived in another home in the year of the home purchase or in any of the four preceding calendar years. 

Who Will Benefit

First-time home buyers purchasing a home may claim the HBTC on their income tax returns, starting with the 2009 taxation year.


Our ability to provide a combination of institutional and private mortgage funds enable us to creatively fund virtually any mortgage - first mortgage, second mortgage, commercial mortgages and more. This gives our clients more opportunity to establish home ownership regardless of their credit history. Mortgage Planning is the most important component for Mortgage Brokers and we are leaders in helping create practical plans that will build your financial future. Mortgage Brokers must have the ability to not only provide you with the best mortgage rates and products, but also they must have the ability to be creative and possess problem solving skills.

Find Out More

For more information, please visit the Department of Finance Canada website or the Canada Revenue Agency website.

Wednesday, 6 August 2014

Creative solutions: short on downpayment?

When the client does not fit traditional financing, you are forced to look up private lenders for the reason to get additional second mortgage to be able to close the sale. Sometimes it fits and you can get the requested amount, but what will happen when the first mortgage condition the amount and the size of the payments on second? Nothing, client walks.
There is a new way of dealing with this, however it requires a lot of skill to convince the vendor to provide a take back and complete the purchase. What are the stipulations? We, want to earn our fees, so send us the file and we will work on it to closing and give you a generous referral fee.
Giving up on a file will bring you zero. Never give up, before you give us a chance.

We provide financing for private mortgages and loans throughout Canada for residential and commercial property (first and second mortgages), raw land, developments, construction, renovations, hotel & motel purchases, refinancing, revenue-rental property, vacation/second homes, business financing, inventory loans, factoring, invoice advance loans, business ventures, business purchase loans, equipment and inventory loans, and any and all mortgages where the collateral is real estate property. Our head office in Calgary and we are licensed in BC and AB. We have investors and brokers in other jurisdictions, whom we are referring files too. We will need an application, an explanation, and a plan with an exit strategy to consider a request. If you have been turned down by banks or have credit issues, as long as you own your home, Private Lendercan help get the funds you need.

All Private Lender Inc. and it's investors mortgages are brokered by MortgagePRO Ltd. in Calgary, Alberta

Friday, 18 July 2014

B-21 is about self employed mortgages harder to insure

In short, mortgage insurance protects lenders against losses caused by a borrower’s default on a mortgage loan. Therefore, a mortgage insurer’s security is dependent on their underwriting policies and risk management.
OSFI’s release of the draft guidelines for B-21 outlines their expectations for prudent residential mortgage insurance underwriting. It targets all federally regulated mortgage insurers (FRMI) and sets criteria for insurers’ oversight of approved lenders.
B-20 outlined expectations for all federally regulated lenders; and B-21 (once finalized) will do the same for mortgage insurers. "The industry's adherence to these principles will contribute to the continued stability of the market," said Superintendent Julie Dickson in OSFI's press release.
The guidelines outline 6 principles for sound mortgage insurance underwriting including: implementing an underwriting plan, assessing mortgage lenders and their underwriting policies, and risk mitigation.

What (we think) you can expect:
•             With lenders’ underwriting becoming increasingly scrutinized, expect to see more rigorous underwriting practices for insured mortgage applications.
•             Potentially fewer underwriting exceptions. Particularly for borrowers who may not qualify based on insurer’s risk parameters.
For example, self-employed borrowers who may not be able to provide documentation proving their income consistency. Previously, that may have been overlooked given the borrower had a really high credit score or made a larger down payment. That may not be the case any longer. It will all depend how vigorously the insurers implement their policy. 

MortgagePRO is dedicated to provide mortgages for self employed and new to Canada with it's unique ability to provide a combination of institutional and private funds. Register for a FREE consultation today, to discuss your needs and create a plan to provide solution, where others fail. 

Wednesday, 25 June 2014

How a vendor take back can help when you short on down payment

When you find yourself being short on the down payment, due to bank wants you to put more down in order to approve your mortgage request, there is another possibility and the seller is the one who can help you. A VTB is when the seller offers financing on their own property they are selling, called the Vendor Take Back.  For instance you might have 75% LTV from the lender or bank; a 15% VTB from the seller and 10% from your own funds. Bank wants only give you a 75% mortgage when you have credit issue as well, allowing a VTB to 90% LTV of the property you are purchasing. We can structure a deal like that and help you to convince the vendor as well.
Also if the lender lived in the property he will not have to pay tax on the equity he has made, so for him it is no matter what the price is showing on the Offer to Purchase, if you know what I mean. Important part is the property to appraise to the value was indicated on the OTP
For the buyer, It’s a great way when you have a shortfall in funds.  The VTB acts as a second or third mortgage, depending on the financing structure.  However, you as the buyer must make sure that the seller agrees to subordinate the mortgage.  
This means that the VTB will agree to go in behind other lenders and will recoup funds in the event of a default in that position.  If for instance you have to get a Private Lender mortgage, they will always want to come in before the VTB – without a subordination clause, it would be difficult to do this and you would not get the Private Lender to lend to you.
More on this type of agreement you talk to our president, Zoltan M. Padar as he is not only a private mortgage lender, but also the mortgage broker of MortgagePRO, leader of a highly trained and very capable team of mortgage brokers.
The team has education not only to get you the lowest possible rate and the best product, but also able to combine institutional and private funds for approval. Able to provide a plan and a solution and will not live anybody behind!

Tuesday, 17 June 2014

CMHC cutbacks are the signs of market turbulence?

CMHC crown corporation’s most recent restructuring raises the question; is the insurer gearing up to leave the market, amidst speculations where the market is heading to reduce tax payers exposure to bad mortgage loans?
News on CMHC discontinuing to provide loan insurance for the financing of multi-unit condo construction, following late-April announcement from the crown corporation that it will no longer insure second homes and self-employed individuals who do not have third party income validation.
CMHC provided stability to the real estate market during the last decades, but now two private insurers Genworth & Canada Guaranty will fill the void of CMHC, can they do that?

You be the judge, observe and learn the latest news from the only information highway will always tell you how it is. The facts and the truth are wonderful tools to ready yourselves to the future and determine your moves.

Thursday, 15 May 2014

How does CMHC regulatory changes effects you?

The Canadian Mortgage and Housing Corporation (CMHC) appear to be conceding the death of its high-ratio refinancing.
“CMHC’s insured loan volumes are influenced  and not only by the economy;  housing markets, competitive pressures, regulations,”  2013 annual report says.  “Changes by the Government of Canada to the guarantee parameters specifying the types of mortgages that can be insured have reduced the size of the high ratio transactional homeowner mortgage loan insurance market while effectively eliminating the high ratio refinance market.”
The death knell of high ratio refinancing should come as no surprise, with the CMHC’s third quarter 2013 report quietly indicating a whopping 81 per cent drop in refinance business.
“Purchase volumes increased approximately 11 per cent while refinance volumes were approximately 81 per cent lower than in 2012,” according to the report in December.  “The latest mortgage insurance parameter changes that took effect in July 2012 effectively eliminated refinancing at loan-to-value over 80 per cent.”  Added Zoltan Padar of MortgagePRO.
And it’s a trend that has been taking place for some time, with market share between origination and refinances steadily shrinking: As recently as 2011 the limit was 90 per cent; it was reduced that year to 85 per cent and in 2012 was reduced five more percentage points to 80 per cent.
Overall the crown corporation insured 343,773 units last year, which was within the planned target range. Operating expense ratios were also one per cent better than planned.
“In 2013, CMHC’s mortgage loan insurance achieved an operating expense ratio of 12.8 per cent, one per cent better than plan due to lower OSFI, credit bureau and investment management fees, and up slightly from 11.7% in 2012,” information researched by MortgagePRO, your best choice when you are looking for a mortgage.

We believe, a well-informed client makes a better decision. Visit us online “ Everything Mortgages” will help you to be knowledgeable and save thousands on interest , after all it is your hard earned money!

Monday, 5 May 2014

New CMHC rules leave many behind, lucky for other insurers

CMHC or beloved mortgage insurer is changing course; raising mortgage insurance rate, cutting off self-employed clients and stop insuring second home. Other insurers like Genworth
Both private mortgage insurers opted out and have decided not to follow in CMHC’s footsteps and alter their programs for self-employed buyers. But is this only a temporary move?
“We will not be making any amendments to current product guidelines,” a Genworth stated Friday. “ NO amendment to the number of Genworth-insured properties for each borrower.”
Canada Guaranty business for self program also escaped changes, according to the Globe and Mail.
CMHC changes will be in effect  from May 30, 2014 the Crown Corporation will stop insuring second homes and self-employed people who do not have documented income source verification.
Mortgage brokers believe this opens up a competitive window for private insurers.
“If you really look at how many people are self-employed in the country they really are the backbone of the economy,”  Zoltan Padar of MortgagePRO Ltd.  “That’s a good product and it has been proven over time that the two (private) insurers can be very competitive.
“Cutting self-employed program will be a lesson to businesses – some lenders only work with CMHC but if I’m a first mortgage lender I would start supporting the other insurers as well." he added.

Genworth, however, has made one amendment to its vacation and secondary home programs. Now they will insure one home and one secondary home, vacation home if you pleased.
Our mission is to educate you, as we believe an informed home buyer makes a better decision.

Friday, 25 April 2014

Rates and products or how to save a bundle on mortgage interest

Mortgage brokers in love with variable rate mortgages, I am at least as I think they are the best products available, and they do save you. Thousands! Still most people chose to go into fixed rate products, wonder who is the professional here?
“We are in a very stable rate environment and it has been stable for many years and I believe it will continue for many more years to come" Zoltan M. Padar of MortgagePRO Ltd. “ Canadians are prudent, also the best lenders are not about to raise their rate overnight, endangering borrowers and affordability, resulting foreclosures. Many foreclosures”  He also said "With fixed rates near historic lows, Canadians see an opportunity to lock in for a number of years at any time they fill the rates are going out of hands. That is why so important your enlist the services of a Mortgage Brokerage, be secured, educated and get the right advice from them when you needed the most”
“Forty eight percent of people chose the fixed option” according to Karan Dhillon, a seasoned and trusted mortgage adviser at MortgagePRO “ thirty one percent loves variable products and the rest undecided. Now that is dangerous, you will not make a good decision without the facts. That is the reason we have providing our clients advice and information. Our web site is open to all, visit and get informed” she said as she believes smart home owner frequents this site and understand more!

Now, do not forget: most people still just walk in their bank and get a mortgage, without getting a second opinion and or without look other offers. Common mistake, however it is also costly mistake. A Mortgage Broker has all the newest product, rates and other information to be able to give you a choice when you purchase and or refinance your property. While your bank has only once choice; no matter how you look at it, however Mortgage Brokers will bring you plenty of choice, as they are dealing with all the lenders across not only in your neighborhood, but across Canada.

Thursday, 17 April 2014

Agreement for Sale – A Great Selling Tool for Realtors, Home Owners and Buyers Alike!

An agreement for sale can be a fantastic way for homeowners to get MORE than the expected asking price for the sale of their homes and can also be a great way for Realtors to close more sales and really satisfy sellers.
What is an Agreement for Sale?
An Agreement for Sale is a contract where the final conditions of the agreement are held over for a specified period of time into the future. In Real Estate sales, this simply means that the property is sold now, the buyers move in now, make mortgage payments to the vendor while the vendor remains on title until of the terms of the sale are satisfied. From a vendor’s perspective it is a great way to get full asking price or even ABOVE asking price for your property, make positive monthly cash flow and have the security of remaining on title. For the buyer it is a great way to get a legally binding sale when experiencing short-term financing issues.
What should be your first step?
Enlisting the services of an experienced Mortgage Broker, will litigate your exposure to mistakes.  Your ability of qualify a mortgage at the time the Agreement for Sale calls for and avoid to lose your deposits and payments. 
  We will help you to understand the complete process and get you approved for a mortgage when you need one.

Agreements for Sale are more secure than Rent to Own deals for both the buyer and the seller. Contact Tom Manley at MortgagePRO for more information.

Tuesday, 1 April 2014

How mortgage refinancing works and what are the reasons

A home mortgage is a long term commitment. For most people it is a 30-year commitment. In this amount of time many things can change. Many people will outgrow their home and sell their house. Sometimes people also outgrow their mortgage. In this instance, mortgage refinancing can be useful.
Benefits of refinancing: There are many reasons why people decide to refinance their home. As you pay off your mortgage, the principle reduces while the value of your property increases. The difference between these two figures is known as equity. When you refinance your home, the bank may give you a home equity loan. You can use this money to improve or enlarge your home, pay for tuition, or even take a holiday.
Sometimes, as a mortgage decreases, home owners decide to refinance for a lower rate in order to lower their monthly repayments. This is a good option if you are struggling with difficult financial times or are just looking to free up cash flow for other projects.
Refinancing your home also gives you a chance to renegotiate your mortgage terms with your bank or lender. This means that you may be able to achieve a lower interest rate and also lessen the fees and charges which are attached to your home loan.
The Refinancing Process: When you refinance your mortgage, you can stay with your current lender or shop around for a new one. MortgagePRO will do the shopping for you, providing peace of mind and convenience. The refinancing process is similar to the one when
you originally bought your house and applied for a mortgage.
The bank or lender will most likely go ahead with the usual checks, such as employment and identity checks. They will also require a valuation of your home, which they will arrange. Once this has all been finalized, your old mortgage will be discharged and your new mortgage will come into effect.
There are usually some fees attached to a refinance loan. These can include a loan establishment fee, a valuation fee, and the possibility of ongoing fees. There is a chance that there may be a fee from your lender for the early discharge of your loan.
Search for a mortgage: Finding out as much mortgage information as possible before you sign up for any loan is a good idea. Being aware of not only the interest rate, but the fees and charges attached to the loan product, is essential. Reading the small print now can save a lot of heartache later.

Tuesday, 11 March 2014

Best Networking Group ever

You are invited!
I am the organizer and managing Private Mortgage Lenders Canada a Network of Realtors, Real Estate Investors, Mortgage Brokers and Private Mortgage Investors Have you ever added all the expenses your business requires to advertise, promote your business? You would wonder wouldn't be a better world if you keep all those hard earned dollars? Networking cost you nothing, our membership is free and when you sign up we will approve you in a short time. Join us 

Saturday, 8 March 2014

CMHC raising fees, might be an indication of a government conspiracy to...

Mortgage insurer raising rates, also raising a question in me as well. Are they gearing up to spike profit and boost the money bag? Does the government has secret agenda to download the taxpayer owned institutional giant, before it is too late? I am not about to speculate of what would be the extend of the damages in case the American style crash would happen in our beloved Canada, particularly in the housing industry, however one have to be thinking of what the hell is up with the market. I have listed a condominium in downtown Friday at about 4 pm. and was  sold on Saturday at 12:03 pm. Wow. I am extremely happy, but also worried too. Are the days of the 2006 April are on our doorstep again? That means affordability suffered a setback again. Toronto churning out huge growth numbers, while some of my friends in the industry are reporting there are many high-rise condominiums are empty, seemingly unsold and other projects are just breaking ground and looking forward to complete in a short few months. Is this a balanced market? Is this an overheated market? Is time to reconsider buying or wait till the market cools? Nobody wants to own a mortgage of a property worth half. 
And now, mortgage rates are heading down. Insane or am I a naysayer? You be the judge. make sure you will look up the services of a mortgage broker an experienced one, one understands the ins and outs not only the market, rates but also the mortgage products you are about to take on in order to own a home. You should make an appointment for a free consultation, demand clarification of rates, mortgage products, amortization and term length at the time you are buying a home and also most importantly as well at the time when your mortgage term is up and you have to renew. You will be glad you did, so you can sleep well, without worry of what is your government up to.
Don't mind me if I keep eye on every angle of the market as an investor, real estate owner, mortgage broker and as a private mortgage investor.  

Thursday, 13 February 2014

Looking for a mortgage with bad credit?

If you are looking for mortgage loans from banks in Canada and if your credit rating is not good, you will hardly find any bank willing to lend to you. Banks earn on the money they lend and have stringent rules of qualification for mortgages. Your other choice is approaching private lenders. Before you approach lenders, you must consult experts who can present your case on your behalf and help you secure a loan on easy terms.

Poor Credit Mortgage Loans
Banks would shy away from offering a loan or a mortgage to applicants with poor credit. Even if your credit was bad many years ago, it can come in the way of securing a loan. The stringent lending policies make it difficult for many to borrow money though they are fully capable of repaying. It is possible for you buy a house even if your credit is bad if you approach private lenders or investors. Such poor credit mortgage facilitators can help you buy a home and also help find financial stability by lending when you need the most like in case of bankruptcy or foreclosure. In such situations banks will refuse to lend. Even bankers who have known for years would at best offer to restructure your existing loans but would not lend you money.

Self employment mortgage
If you are self-employed and are looking for a mortgage on your property it is advisable to approach private lenders. Banks view self-employed individuals as a risk even if they can pay the instalments on the mortgage. A private lender on the other will evaluate your earning potential to help you avail the right mortgage loan. seek the services of experts to approach private lenders who can present your application to lenders to secure the best terms.
Before you mortgage your property to buy a new property it is important that you have an appraisal of the new property to assess its value. This appraisal will form an important part of your application. It is also advisable to

Seek investment experts
Most Canadians find the process of application for loans daunting. Lacking expertise, they often fail to convince the lender about their cause at the first go. The second application costs more. To avoid additional costs and to secure the best terms on your loans contact experts who provide investment services. The websites of such service providers will have tools like Canadian Mortgage Calculator which will help you learn of the amount you can secure and prepare your application accordingly

Wednesday, 12 February 2014

First time home buyers tax credit

The fees associated with purchasing a first home can really add up. To help Canadians with these costs, our Conservative Government introduced the First Time Home Buyer's Tax Credit. The Credit allows Canadians to save up to $750 on qualifying home purchased after January.27.2009.
The First Time Home Buyers Tax Credit is also available to existing homeowners who are eligible for the Disability Tax Credit (DTC) who purchase a more accessible or functional home, or for the benefit of a DTC-eligible person who is related to the individual purchasing the home by blood, marriage, common-law partnership or adaption.
We at MortgagePRO firm believer of the well educated client makes better decision. Better decisions leads to savings and that is what exactly we would like to help you with. FREE consultation on low mortgage rates, zero down mortgages and a lot more. Call us today.

Tuesday, 21 January 2014

What is a Private Mortgage Lender is good for?

An individual or a little business that funds private mortgages is mentioned to as a private mortgage lender. A private lender generally works with borrowers who have problems getting mortgage borrowings through conventional channels.
Interest Rates for Private Mortgages:
Private mortgage borrowings are suggested at higher interest rates as contrasted to banks, because of the added risk engaged with these loans. Even though private borrowings arrive with higher interest rates, many high-risk borrowers favor them because of the adversities involved in protecting conventional borrowings. 
Reasons to use the borrowed funds:
A borrower can use the private mortgage funds for numerous reasons. He or she might refinance an existing mortgage, use funds for down payment for other properties, or construct improvements on existing property. One of the most common reason is to pay off high interest rate and bad debts. The result is higher credit score, better risk as a borrower resulting the borrower turns to be bankable once again. The loans can also be used to decrease the contradictory influence of a borrower's foreclosure or bankruptcy proceedings. Generally private lenders are looking to better the financial position and or well-being of clients.
Characteristics of personal Mortgage Deals
A Private mortgage deal is founded mainly on the lender's investigation of the hard assets of the borrower -- mainly the underlying property utilized as collateral. They are usually carried out with a much quicker turnaround time than a financial institute funded mortgage. Private mortgage money is accessible for both primary mortgages and second mortgages, although the second mortgage interest rates will be substantially higher.
The Importance of exit Strategy
Another characteristic important to a private mortgage lender is the borrower's exit strategy. The borrower should have a comprehensive and well-thought-out design in place to repay the whole allowance of the loan in one year or as agreed. Occasionally this means sale or refinance of the whole house, or occasionally just a part of the house. Private mortgage loans are very significant sources of cash for borrowers facing dire circumstances or laboring with poor credit profiles.
For a confidential assessment of your situation please request a FREE consultation session with MortgagePRO, you will be glad you did!
MortgagePRO is a Calgary, Alberta based brokerage and mortgage lender, funding bank and private mortgages for improving your mortgage rate to a low mortgage rate. We also provide mortgages for self employed, new to Canada and mortgages for people with age, job, credit and other issues. 
If we can't do it, most likely nobody else will!

Thursday, 2 January 2014

Calgary home prices, interest rates on the rise, act now

Your need to be informed to make a better decision. FREE Consulting on pre approvals and issues need to be addressed!

 December’s eight per cent year-over-year increase in sales volume in the city of Calgary capped a year that saw an 11 per cent growth in sales volume for the entire 12 months.
City residential sales totaled 1,172 units in December, bringing total sold units for 2013 to 23,489. Prices for the year were up by 8.6 per cent over 2012.
MortgagePRO Ltd. 
“Sales growth exceeded expectations in 2013, pushing above long-term trends,” said Ann-Marie Lurie, CREB®’s chief economist. “Two consecutive years of elevated levels of net migration, combined with an improving job outlook and confidence surrounding long-term economic prospects, supported the demand growth.”
As expected, both new listings and transactions in December eased over the previous months because it is typically a slower time of the year for sales. However, sales activity for the month was in line with long-term averages, despite poor weather conditions just before the holiday season.
“Typically, fewer sellers list their homes in December,” said Becky Walters, CREB® president. “There were more new listings this year than in 2012 because some sellers saw the continued price gains and decided it was the right time to list.”
Market conditions favored the seller for much of 2013, causing price gains in both the single-family and condominium sectors in the city.
The single family benchmark price was $472,200 in December, a 0.3 per cent increase over the previous month and an 8.6 per cent increase over the previous year. On an annual basis, un-adjusted single family prices grew by more than seven per cent in 2013, exceeding previous highs.
“Prices have recovered in the single-family market, but sellers need to keep in mind there are differences between communities and types of homes,” said Walters. “Higher-end homes (priced above $500,000) have recorded slower price growth than those in the lower-price segment. And there are many communities where prices have not surpassed previous highs.”
There were 16,302 single-family homes sold in 2013, an 8 per cent increase over the previous year. Meanwhile, the 22,569 new listings were nearly one per cent higher than in 2012.
Condominium apartment sales totaled 4,007 units in 2013, more than 14 per cent higher than in 2012. Condominium townhouse sales totaled 3,180 units a 22 per cent increase over 2012.
“The condominium market is more affordable than single family, and that is attractive to first-time buyers who are weighing rising rental costs against ownership costs,” said Walters. “Investors are also attracted to condos, because prices have not yet fully recovered to their previous highs.”
Condominium apartment and townhouse prices totaled $278,600 and $307,100 respectively in December. On average, annual benchmark price growth in the townhouse market totaled just more than six per cent, compared to the apartment sector increase of nearly nine per cent.
“In 2014, both sales activity and prices are expected to improve, but not at the same pace recorded this year,” said Lurie “While factors influencing demand will support growth in 2014, rising listings and increased competition from the new home sector should alleviate some of the supply pressure in the market.”

Those factors, combined with potential increases in long-term lending rates, should take some of the steam off the exceptionally strong price growth recorded in 2013, said Lurie.