We understand the various financial obstacles that our clients encounter, both on short-term and long-term scales. We work to find the best mortgage that not only meets and supports your goals, but also your lifestyle and needs. Whether a first time homebuyer, sophisticated real estate investor, or any step in between, let us help you create or continue building wealth.
Whether you are salaried or self-employed, have perfect or less-than-perfect credit; we find the best solution for every unique case.
Whatever your need—first/next home, second/vacation home, investment property, renewal, refinance, debt consolidation, equity take out, second mortgage, renovation financing, or cash back—give us a call today!
To get your mortgage questions answered right now call for your free consultation.
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What the Mortgage King can offer you:Finding the right mortgage for you is our business. We know which lenders have the best rates and we negotiate with multiple lenders at one time. Also, we know the system and have the industry knowledge required to present a proposal for financing to lenders to successfully obtain mortgage financing, and we do all the paperwork. Plus, the lenders compensate us, and in most cases we offer our services free of charge to our clients.
With the wide assortment of options and features available today for a mortgage, renewal, refinance, or debt consolidation, shopping around takes a lot of time and effort. The mortgage process can be intimidating to many Canadian homebuyers, thus it’s wise to begin with some advice from a professional that will represent you and ensure the mortgage you get is the one best suited to your needs. Simply talking with The Mortgage King can help you understand how much of a mortgage you can manage and allow you to explore both traditional and innovative mortgage options.
If you’re purchasing a home we have a wide variety of mortgage and financing solutions for you! We know that different people need different things in a mortgage. We offer homebuyers access to rate information and mortgage options from a wide range of lenders, including most of the major banks and lending institutions. We have an outstanding range of mortgages and lenders available to help you build a mortgage blueprint that fits your financial goals and future.
By getting a pre-approval, you eliminate a lot of complications that can make a deal or offer fall apart last minute. Not only does a pre-approval give you more leverage and negotiation power when sending in an offer, but it also provides you with the confidence you need to succeed. Avoid the stress of worrying about whether or not you are going to get approved, after you have invested all that time in finding the perfect home. There’s never an obligation to go forward with the mortgage after receiving a pre-approval. Additionally, lenders guarantee and secure you their best rate usually for a 120 days. By getting a pre-approval, you eliminate a lot of complications that can make a deal or offer fall apart last minute. Not only does a pre-approval give you more leverage and negotiation power when sending in an offer, but it also provides you with the confidence you need to succeed. Avoid the stress of worrying about whether or not you are going to get approved, after you have invested all that time in finding the perfect home. There’s never an obligation to go forward with the mortgage after receiving a pre-approval.
The mortgage environment is always changing – if you’re in the last year of your mortgage, it’s not too early to talk about what the next few months will bring. When a term is coming to a close, most banks will send a mortgage renewal notice in the mail usually one to two months prior to the term expiration. Unfortunately, the banks only tend to offer you their posted rate with very little or no discount and only have one financial product to sell: their own. Almost 60 percent of people renewing their mortgage sign this renewal without researching what the competition has to offer. The Mortgage King is here to offer you advice so you can take advantage of the competitive mortgage market.
By refinancing your mortgage to a lower interest rate you could potentially save yourself a lot of money! Imagine all the things you could do with all that extra interest saved! For this reason, it is important to get some professional advice at least once a year to consider your options. Refinancing your mortgage is an excellent way to liquidate some cash and put your equity to use, regardless of your need. Refinancing could help you buy investments, a new car(s), investment property, a vacation, finance education, renovations, or one of life’s largest milestones – such as a child’s wedding. A record number of Canadians have taken advantage of the historic low mortgage rates and rising real estate values to tap into their home equity. There has never been a better time to access the extra funds that can help bring your home to that next level of comfort.
Mortgages generally qualify as good debt; they are usually available at the lowest possible rates, represent a good investment and an appreciating asset. Bad debt saddles you with high interest rates – often on depreciating assets. High credit card debt is one of the worst kinds of debt and afflicts most Canadians at some point in their lives. But if you have equity in your home, then you have an opportunity to turn bad debt to good debt – by refinancing and rolling high-interest debt into your mortgage for big interest savings. A new mortgage may be the best way to manage all of your debt. Moving your high-interest debt into a lower-rate mortgage is a great way to save on your overall interest costs, improve your cash flow, and begin the process of improving your credit rating.
Real Estate Investments
Investing in real estate is often not possible without the right financing in place. Done correctly, real estate investments can serve as an excellent source of income, both on short-term and long-term scales. One key factor directly relating to a successful investment is positive cash flow. Without the right financing and leverage in place, a real estate investment can quickly become a financial burden. Whatever the type of investment – condo, long-term hold, flip, short-term hold, etc. – we have solutions and the experience to ensure your investment is a profitable one.
A mortgage is amortized over a period of years. The amortization period is the length of time it takes to pay off the mortgage in full. The usual amortization period is 25 years. However, this period is adjustable and can be accelerated to pay off the mortgage more quickly or, in some cases, can be stretched to 35 years to reduce the monthly payment.
Some mortgages are assumable, with the proper qualifications. This means that should you sell your house before the term of the mortgage is completed, the purchaser can take over your mortgage—if they qualify. This allows you to avoid paying a penalty when breaking your mortgage.
Blend & Increase
These terms pertain to the ability to increase your existing mortgage or the term of the mortgage, with only the increased amount or term at today’s interest rate. The interest rate for an existing mortgage is integrated with the interest rate of the increased amount. This is advantageous if you have a good rate on your existing mortgage or if you want to avoid a penalty to pay out an existing mortgage.
This is the document that your lender will confirm as the basic terms and conditions, upon which the lender will provide the mortgage and indicate the conditions that must be met before funding. The standard conditions include—but are not limited to—receipt of an appraisal, income verification by way of employment letters and income tax returns, as well as verification that the purchasers’ down payment has not been borrowed.
For reasons, planned or unplanned, the borrower may need to sell before the end of the mortgage term. Discharge fees vary widely between lenders which may result in thousands of dollars in penalties. Worse yet, if the discharge policy is “No Discharge,” the borrower may be locked in for the entire term of the mortgage.
Early Pay-out Penalty
Many people don’t think about breaking their mortgage when they are in the midst of arranging it, however, this possibility cannot be overlooked. An individual’s circumstances can change—transfer of employment, marriage breakdown, etc. Some mortgages are fully closed and cannot be broken under any circumstance. Other mortgages have a sales clause that allows early payout of the mortgage upon an arms-length sale of the property, subject to a penalty (for example, 3-month interest). Some mortgages allow the borrower to break the mortgage, for any reason, upon payment of a penalty.
Interest Adjustment Date
This may apply to mortgages that close on any day other than the requested day of payment. For instance, as some lenders want monthly payments to be made on the first day of the month, they will adjust the interest due on closing so that interest on your mortgage is paid up until the first of the coming month. If you close on the 20th of the month (and the month has 30 days), you will have to pay interest for 10 days so that you are paid up until the first of the coming month. Then, your first full mortgage payment will be due on the first of the following month.
The rate of interest is a key consideration when arranging your mortgage. The interest is the payment to the lender for the use of the mortgage money. The interest rate can be fixed (where the rate remains constant for the term) or floating (where the rate changes at regular intervals). Short-term or convertible terms usually have lower interest rates and can be used to a borrower’s advantage in an unstable market. These mortgages allow you to ride out a fluctuating or falling rate market until rates reach a level where you wish to “lock-in” to a longer term. On the other hand, long-term rates offer stability and eliminate the need to monitor rates daily.
When the purchase of your new home closes in 60 days, but the sale of your current home closes in 90 days, you will need interim or bridge financing. This is because for 30 days, you will own both properties, and not receive the equity out of your old property. If your chosen lender cannot provide you with interim financing, you may find that getting it from other lenders will be very expensive.
This key term is a contract made between a borrower and a lender, where the borrower pledges a property to a creditor as security for the payment of a debt. “Charge” is another word for mortgage.
Mortgage Life Insurance
Life insurance that pays off the balance of the mortgage in the case of the borrowers death (i.e., if a spouse dies, the remaining spouse would not have to worry about mortgage payments—it would be paid in full). The monthly cost of getting this insurance through the lender is typically less costly than obtaining a similar coverage directly from an insurance company.
Payment frequency options
You will often have the choice of making payments on your mortgage on a monthly, semi-monthly, bi-weekly, or weekly basis. Increasing the payment frequency, i.e., bi-weekly instead of monthly, can shorten the amortization of your mortgage and save you a considerable amount of interest.
By law, all mortgages in Ontario are registered as having monthly payments. Any change to this is done by an amendment to the mortgage. This amendment is a privilege and can be revoked in the event of failure to make payments.
In this computer age, mortgage payments are normally made by pre-authorized chequing or debit where the lender takes your regular monthly, semi-monthly, bi-weekly, or weekly payment out of a predetermined bank account automatically.
These prepayment privileges allow you to make extra lump sum payments, double your payments, or increase your regular payments. Prepayment privileges vary from lender to lender. If you want to be able to pay your mortgage off quickly, check the flexibility of your prepayment privileges.
If you have a good mortgage rate and a number of years remaining on your term, you may want to take your mortgage with you to a new home when you move. This can be done if the mortgage is portable. The property you are moving into will have to be reviewed and approved by the lender before you can shift the mortgage to the new property.
Rate Guarantee pertains to the period of time, prior to closing of your house purchase (“the completion date”) that a lender will guarantee that the interest rate they have offered will not rise. This is usually for a period between 60 and 90 days, although longer rate holds are available under special conditions. The commitment letter will also state under what conditions (if any) that they will decrease the interest rate if and when rates in general drop prior to your completion date.
Standard mortgage fees
All mortgages have standard fees associated with them such as renewal fees, discharge fees, NSF fees, etc. These vary from lender to lender and should be considered carefully.
When property taxes are included with mortgage payments, the lender will hold back funds from mortgage proceeds to cover interim or final property taxes payable to the municipality. The amount depends on the month the mortgage was funded, and on the dates when interim and final taxes are due. Holdbacks are used to pay for the current year’s taxes, while monthly tax installments are accumulated in the account to pay for next year’s taxes.
This is the period of time that the interest rate and the loan is contracted for. Terms can vary from 3 months to 35 years (although the standard term is still 25 years).