Mortgage Renewal

Follow Us on Facebooktwittergoogle_pluspinterestlinkedinyoutubetumblrinstagramflickr

It’s Mortgage Renewal time

Is your mortgage coming up for renewal within the next several months? Don’t settle for less. If you don’t look around you’ll never know if your existing lender is offering you the best mortgage renewal package. This is where we come in. As a mortgage brokerage we shop around on behalf of our clients to make sure they get the best overall suited mortgage product for their mortgage renewal needs. And never compare yourself with another person’s mortgage as everyone’s personal situation could be different, which in turn will require customized approaches towards getting the right mortgage at mortgage renewal time.

mortgage renewal

 

 

 

 

 

 

 

 

 

Different Reasons for mortgage renewals

So you’ve been thinking lately about what to do with your mortgage. Contact us and lets think about it together. You’ve also heard that the lower your mortgage balance is the higher your home equity would be and the more money you can access from your home. That is true, as your mortgage balance decreases the percentage of the equity you can access from your home increases.

Here are some reasons why you should contact us:

  • You want to do a mortgage renewal for a better rate than what your current lender has offering you
  • You want to do a mortgage renewal to consolidate your debts and pay a lower interest rate on the new larger mortgage amount
  • You want to do a mortgage renewal with a new lender to add a home equity line of credit to your house
  • You want to do a mortgage renewal so you can change lenders to a new one because you’ve heard good things about them and like their offerings, or have other accounts with the new lender
  • You have other personal doing a mortgage renewal with a new lender

Perks to switch to a new lender

The lenders have internal perks, unadvertised for the general public for switching your mortgage that only the mortgage broker community knows about. For example, if we switch your mortgage the new lender could cover the legal, appraisal, and the discharge fees. Therefore not only are you benefiting with getting expert unbiased professional advice for your renewal from Trusterra Mortgage, you are also getting competitive mortgage rates, and are switching your mortgage at minimal cost to you.

 

If you recently got a new mortgage or renewed your existing one, you can always give us your details and let us know when to contact you for when the time comes to renew again by using our free Mortgage Renewal Reminder Service.

Ready to start or maybe you have some questions to ask first? Contact us and we’d be happy to help you.

Share on Facebooktwittergoogle_plusredditpinterestlinkedintumblrmail
Mortgage for Cottage

Mortgage for Cottage

Follow Us on Facebooktwittergoogle_pluspinterestlinkedinyoutubetumblrinstagramflickr

Getting a Mortgage for Cottage Could be Within Your Reach

Do you have a dream cottage that you plan to own one day? You’ve probably been doing the whole cottage rental thing every summer, paying a weekly or daily cottage rental fee to go up North to that amazing spot by the lake with the family and friends. Many people feel that cottage ownership is out of reach and reality for them due to high cottage prices. But it doesn’t have to be that way.

mortgage for cottage

Mortgage for Cottage is attainable for more people than you think

Planning is key to buying any real estate, cottage property included. What better time than when you’re young and just started your career to put money aside on a monthly basis. For those families who already own a house and are starting to build equity on their property and paying down the mortgage, it can be an opportunity to use it for a down payment on the cottage.  There are so many different case scenarios that each one should be looked at on its own merits.

How does getting a Mortgage for Cottage work?

Like any other mortgage application for purchasing real estate the same process is involved with getting a mortgage for cottage. Best is to work with a Mortgage Broker or Mortgage Agent as they have specialized experience and skills with mortgages and have access to multiple lenders who would entertain your cottage mortgage application.

There are three main areas that you have to consider when applying for a mortgage for cottage:

(1) Income / Employment

Like any other loan application the lender needs to make sure you can afford to pay the monthly principal and interest payments on their loan / mortgage. Whether you are employed or self-employed it is possible to apply for a mortgage for cottage. You just need to be able to show proof of income and employment or self-employment through such things as pay stub, and employment letters for those who are employed, and business licenses, articles of incorporation, Government tax filings showing self-employed declared income for those who are self-employed.

(2) Down Payment

There is no such thing as a free mortgage. In Canada you need to have at least 5% of the purchase price from your own resources. Meaning you can’t borrow money from individuals (excluding immediate family), or companies, or a lender to pay for your down payment. You must be able to show that you have that money in your bank accounts or other investments. Many people don’t realize that there are still a few lenders out there who will entertain a mortgage for cottage application with as low as 5% down. Remember that the less down payment you provide the more income you will need since the total mortgage amount will be higher than if you had more down payment.

(3) Historically strong and healthy Credit

And the third main item that the lenders look at when someone applies for a mortgage is how strong and healthy their credit report is. There should be at least a two year history of credit activity in your credit report from Equifax and Transunion, who are the two main credit reporting agencies in Canada. Lenders don’t like to see late payments, credit collections, or bankruptcy’s in your report. This is not a good sign that you are able to pay back money you borrow.

 

Trusterra Mortgage is here to Help

We’re here to help from the start to the finish, working along your side until all is done. Have you been considering the idea of cottage ownership? Not sure if you could afford to buy a cottage property? With any questions you have don’t hesitate to Contact Us.  And its no cost to you; a win-win situation!

Share on Facebooktwittergoogle_plusredditpinterestlinkedintumblrmail
Beginners Guide to Owning a Mortgage

Beginners Guide to Owning a Mortgage

Follow Us on Facebooktwittergoogle_pluspinterestlinkedinyoutubetumblrinstagramflickr

A Beginners Guide to Owning a Mortgage

Beginners Guide to Owning a MortgagePreviously we talked about the Beginners Guide to Getting a Mortgage. Now that you got your mortgage here is a beginner’s guide to owning a mortgage.

Well, technically you don’t “own” your mortgage. In fact as soon as you get the mortgage you “owe” money to the lender who gave it to you. In this article A Beginners Guide to Owning a Mortgage we will raise awareness about and the importance of managing one of the largest debt’s that you will ever have; a mortgage loan

Mortgage Payment Frequency Options

At the most basic and elementary level, you need to pay back your mortgage on an on-time and regular basis as per the payment frequency you agreed upon with the lender. The Canadian Chartered Banks, Credit Unions, Trust companies, monoline lenders, and others will normally give you the borrower several payment frequency options to choose from; monthly, bi-monthly, bi-weekly, accelerated bi-weekly, weekly, and accelerated weekly.

The shorter between the payment frequency’s the more you are paying the lender back and therefore helping reducing the overall life of your mortgage, called the amortization. As well, the more payments you make, the less interest you pay and more of your payments go towards the principal owing, which in turn, the less you owe in principal the less interest is calculated on the lower principal amount.

We recommend to our clients to consider something in the middle ground. This way they won’t feel the pressure of making weekly payments, and at the same time will be taking advantage of making a little more payments than just 12 a year; the bi-weekly accelerated payment frequency option . The accelerated part means that the lender will increase your bi-weekly payment amount a little more by a certain percentage. For example if your bi-weekly payments are $1,000, then your accelerated bi-weekly could be $1,095. This extra $95 every two weeks can go a long way towards helping you save on interest payments.

Mortgage Prepayment Options

In a beginners guide to owning a mortgage we don’t want to forget telling you about the mortgage prepayment options the lenders give you throughout the year. Depending on which lender your mortgage is with, you are allowed to increase your regular mortgage payments by up to 10%, 15%, 20%, or 25% of the original payment amount.

As well, you are given the option to make a lump sum deposit towards paying down your outstanding mortgage balance. Again, depending on which lender your mortgage is with, you can make a lump sum payment of up to 10%, 15%, 20%, or 25% of the original mortgage amount towards your outstanding mortgage balance. And most lenders permit multiple lump sum payments throughout the year, as long as you don’t exceed the maximum percentages each year.

Although people don’t want to worry about any extra money being paid to the bank during their term with the lender, it is a good idea and a wise one to be mindful of setting aside a set amount each month for making lump-sum payments in the year or at the end of each year. By sacrificing a small amount earlier on in the life of the mortgage you are helping to pay less interest to the lender in the total life of the mortgage. For many borrowers who normally buy their homes at the prime of their life and having job security with a steady flow of income, making extra payments towards reducing their mortgage amount is definitely part of ‘owning’ your mortgage.

Be Wise and Prudent

Beginners Guide to Owning a Mortgage

A beginners guide to owning a mortgage wouldn’t be complete without a mention about being a wise and prudent borrower. Never borrow in excess and beyond your means. You wouldn’t want to put yourself in a situation where in the middle of your mortgage term you are unable to make mortgage payments or the high payment amounts create undue stress on your personal finances. The lenders are flexible and accommodating to a certain extent when it comes to late payments, or missed payments, however, they don’t like to see it happen too often, and certainly not regularly. Otherwise, you could find yourself in a legal mess and at the worst case scenario losing your home.

There are many resources out there, and since this article is a beginners guide to owning a mortgage here is one for your reading. Visit the Financial and Consumer Services Commission of New Brunswick and check out their Saving Money tip, which can help you towards controlling your debts and saving more money towards paying down your mortgage balance.

We always like to hear from our readers relevant feedback and information. What has been your experience with having a mortgage? Would you add anything else in a beginners guide to owning a mortgage?

Share on Facebooktwittergoogle_plusredditpinterestlinkedintumblrmail

Resources for Home Buyers and Sellers

Follow Us on Facebooktwittergoogle_pluspinterestlinkedinyoutubetumblrinstagramflickr

Resources for Home Buyers and Sellers

The Canadian Real Estate Association of Canada (CREA), one of Canada’s largest single-industry trade Associations has recently updated and relaunched a web site full of resources for home buyers and sellers.

The CREA resources for home buyers and sellers site is catered for families, individuals, and investors who are looking to buy or sell real estate in Canada. The resources for home buyers and sellers site is full of helpful, educational, informative, and fun tools for everyone of all real estate investment backgrounds.

Resources for Home Buyers and Sellers

To wet your appetite here are some of things you will find on the the CREA resources for home buyers and sellers site:

1.) Assess Financial Readiness

Assess your present household budget and your annual income to determine if you are eligible for a mortgage and how much you can comfortably afford.

2.) Consider Mortgage Options

A mortgage is a loan, generally used to buy a property. How much you pay depends on how much you borrow (the principal), the loan’s interest rate, and how long you take to pay it back (the amortization period).

3.) Mortgage Default Insurance

When you buy a home with less than a 20% down payment, the mortgage needs to be insured against default. This type of insurance protects the mortgage lender in case you are not able to make your mortgage payments. It does not protect you.

4.) Research Government Programs

The federal government has assistance programs to help homebuyers. Research government program requirements to see if you are eligible.

5.) Finding a Home

Finding your perfect home can be a long process. Your REALTOR® will help identify the right type of home for you and continually research new listings in neighbourhoods that meet your needs.

6.) Making an Offer

After seeing many different homes, you have finally found one worthy of an offer! What are the next steps?

7.) Closing and Related Costs

Closing costs are the legal, administrative and disbursement fees associated with buying a home. Understanding these fees will help you budget more accurately. Remember these are additional costs over and above the price of the home.

Share on Facebooktwittergoogle_plusredditpinterestlinkedintumblrmail

Mortgage Free

Follow Us on Facebooktwittergoogle_pluspinterestlinkedinyoutubetumblrinstagramflickr

Mortgage Free at a young age

Have you ever dreamed about the day when you will be mortgage free? Do you think it is possible to be mortgage free at a very young age? Well, “Sean Cooper, a 29-year-old pension analyst, is $130,000 away from paying off his $425,000 home in Toronto, without money from parents or the lotto.” Financial Post

In fact it could be more possible than not to be mortgage free at a younger age if you were to be very prudent in your spending and not purchasing a property way over your means. Also critical would be to take full advantage of the lenders lump sum payment privileges. Increasing your regular mortgage payments by the allowed percentage set by the lenders could help too. You may want to consider lowering your amortization down from 25 years, to the point where you are comfortable with making a larger monthly, or bi-weekly, or even weekly payments.

 

mortgage free
Picture courtesy of the Financial Post

 

Share on Facebooktwittergoogle_plusredditpinterestlinkedintumblrmail

Helping Realtors Close more Deals

Follow Us on Facebooktwittergoogle_pluspinterestlinkedinyoutubetumblrinstagramflickr

Real Estate agents and brokers work hard for their clients when it comes to selling or buying properties for them. That is why at Trusterra Mortgage we do our best in helping Realtors close deals. We work with Real Estate Agents and Brokers every step of their clients way towards buying or selling their homes.

Helping Realtors close more deals means that we provide mortgage options for their clients to make an informed decision about which mortgage product to get. Not only that, we make sure the client is at a right time in their lives to be able to afford to buy a home and pay for its mortgage. Helping Realtors close more deals sometimes means that their clients first need to get a mortgage pre-approval so they know exactly how much of a house they can afford to buy. Helping Realtors Close More Deals

By helping Realtors close deals even implies that when selling a home they can let the other real estate agent, the buying agent, know that they have a trustable and honest source for mortgage financing that can help their clients buy the house.

If you are a Real Estate agent in Canada and are reading this article, contact us to see how we can help you close more deals and have a satisfied customer who will for sure refer more of his or her family and friends to you.

Share on Facebooktwittergoogle_plusredditpinterestlinkedintumblrmail

Mortgage Happy

Follow Us on Facebooktwittergoogle_pluspinterestlinkedinyoutubetumblrinstagramflickr

Are you a Mortgage Happy person?

Are you a mortgage happy person or not a mortgage happy person?  We want to hear about what was your good and bad experiences when going through the mortgage application process when you were buying a home whether as a first time home buyer or an existing home owner.

Share with us and the world why you are a happy person, or not when it comes to the mortgage application process.

If you were to go through the mortgage application process what changes do you want to see in the mortgage industry, what can be improved on?

people that are mortgage happy

 

 

 

 

 

 

 

 

 

Share on Facebooktwittergoogle_plusredditpinterestlinkedintumblrmail

How to Select Mortgage Broker

Follow Us on Facebooktwittergoogle_pluspinterestlinkedinyoutubetumblrinstagramflickr

How to Select Mortgage Broker

Are you planning to buy your first home, or refinance your existing home? Maybe you have been thinking about purchasing an investment property. Whatever your plans are, you should know how to select mortgage broker.

In the mortgage industry, these professionals are called mainly Mortgage Brokers, or Agents. There are many reasons why you should know how to select mortgage broker and we will provide a few here, and invite you to also share your points and experiences on how to select mortgage broker in the comments section below.

An experienced and licensed mortgage broker or agent specializes in helping you get a mortgage to purchase real estate. Mortgage brokers or agents for the most part do not sell other products as part of their mortgage services and they are here to work on your behalf and for your benefit in applying for a mortgage with one of the lending institutions in Canada.

First you need to make sure when selecting a mortgage broker or agent that they are licensed with the provincial governing body of the province they reside in. You can go onto the Governments web site and check to see if their name is on their approved list. Or you can call in and check that way.

Another way on how to select mortgage broker would be to see how many years of experience they have in the field. Being a member of the Canadian Association of Accredited Mortgage Professionals CAAMP www.caamp.org  is a bonus and a good sign as well of the mortgage broker or agents level of professionalism, and commitment to the industry.

As part of how to select mortgage broker you should also make sure that you interview the mortgage broker or agent over the phone or in person. This will allow you to gauge their sincerity and personal demeanor and respect for their clients by way of their tone of voice and body language; are they showing interest in you and listening to all your questions and concerns?

Referrals from a close friend or family member are another method in which you can funnel out the mortgage broker s or agents. These are individuals who would have worked with a mortgage broker or agent in the past and will have your best interest in mind.

Don’t be fooled or swayed towards advertisement promoting best and lowest rates around, but not knowing who the company is or person advertising the rate. You might be promised a low rate, but how will the service and trust factor be?

These are just a few suggestions, and we hope to hear your comments as well below.

Share on Facebooktwittergoogle_plusredditpinterestlinkedintumblrmail

How to select a Realtor

Follow Us on Facebooktwittergoogle_pluspinterestlinkedinyoutubetumblrinstagramflickr

Whether you are a first time home buyer or an existing home owner looking to buy or sell,  it is very important for the consumer to know how to select a Realtor, and you can do this in several ways; research online, and in person by way of speaking with their family members, friends, and colleagues about their personal experiences of working with a Realtor when they bought their first home or sold it. Many times, our clients are referred to their Realtors through their trusted network of friends.

Most importantly, you should be interviewing the real estate professional so you know how to select a Realtor.

 

Some questions that can be asked from your potential Realtor are:

1) How many years have you been working in the real estate industry as a licensed Realtor?

2) What is your area of specialty in real estate?

3) What is your geographical coverage? You want to make sure you work with someone who knows the city, town, neighbourhood, or village that you are looking to buy in.

4) Ask the Realtor if they can provide you with any references from past clients.

5) You can also ask to see the Realtors portfolio of homes he or she had sold in the past.

6) How are you planning to advertise and sell my home in the market place?

7) Why should I work with you instead of your competitor?

8) Are there any fee’s in working with you?

9) Do I have to sign a contract to exclusively work with you, or can I go somewhere else if I am not satisfied with your service?

6) [you can ask yourself the following questions]

(a) How many listings does the Realtor have currently?

(b) Does the Realtor have a professional presence online, such as a web site, and social media feeds?

(c) When meeting in person with the Realtor what is her or his attitude and demeanor towards your interest in buying a home?

(d) Perform an online search of the Realtors name to see if any positive or negative results in the way of good or bad reviews / comments are said about the individual.

(e) Call the Real Estate Board in which the Realtor is part of and check with them to see if the Realtor is in good standing or not.

Share on Facebooktwittergoogle_plusredditpinterestlinkedintumblrmail