Mortgage Renewal

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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.

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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.

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Mortgage Renewal

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Mortgage Renewal

Is your mortgage coming up for renewal? Are you thinking about a mortgage renewal option? Have you considered the option of shopping around for a better mortgage product or mortgage interest rate instead of just staying with your existing mortgagee? Unfortunately many Canadians who are mortgage holders renew their mortgage with their existing mortgage bank / lender. The matter of fact here is that if you work with a Mortgage Professional, such as a Mortgage Broker or Mortgage Agent they will shop around and check to see if there are any other products out there with a better rate for you, therefore greater savings in the long run as well.

mortgage renewalThe cost for you to change banks or lenders at renewal time is minimal. Many mortgage lenders have promotions to attract customers from their competitors. Lenders provide perks to bring in more renewal business such as covering your legal and appraisal fees and also paying for your discharge fee to switch your mortgage.

Usually the mortgage professional will not charge you a fee either. This is another saving and a win-win situation for you.

Canadian lenders can guaranty a mortgage rate up to 120 days before the closing or renewal date of your mortgage. That means that you should start shopping around at least several months before your renewal date to take advantage of any good mortgage rates or products that are out there in the Canadian market place.  At Trusterra Mortgage we work with our clients and do our best in providing exceptional and trustworthy service and honest advice for their best interest.

What are you waiting for? Contact us and let’s work together in helping you get the best mortgage out there suited for your needs.

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Private Mortgage

Private Mortgage

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private mortgageWhat is a private mortgage you ask? A private mortgage is a loan provided by individuals who wish to gain a higher return on their investment focused funds in comparison to depositing their money into a regular savings bank account, or an investment type of an account with low yields. A private mortgage is secured against the property that the borrower has requested the private mortgage for.

Private mortgages can be an accumulation of a large number of investors who have pooled their personal or business / investment related funds into a trust account, or single individuals with enough of their own money. These funds are managed by a mortgage brokerage company or a company solely created for the reason of lending out private funds for the purpose of real estate financing.

To get approved for a private mortgage is not as difficult as to get approved for a mortgage from a lender such as the chartered banks; there are less restrictions in comparison to the other extreme, which are the chartered banks that require detailed information from the borrower, such as employment / source of income, proof of down payment, and a healthy and strong credit score with no recent credit issues. In comparison, the most important item that a private lender looks at is the property that is being purchased; where is it located, what is its condition, and can it be sold if the borrower defaults on their mortgage payments and the private lender has to foreclose and sell the property.

A private mortgage comes with a much higher interest rate and there is a onetime lender fee that must be paid by the borrower of the private mortgage. Normally what happens is that the borrower cannot be approved for a regular mortgage from a bank or the other specialty mortgage lenders, and what is left is a private mortgage. These types of mortgages are contracted to be paid in full in a short period of time, such as one year or less, and they are used many times as a second mortgage to cover up the difference of the down payment that the borrower does not have.

For example, the borrower does not get approved by one of the big banks in Canada, and his or her mortgage broker or agent will take their client to the next available option, which are what we call the ‘B’ lenders who deal with special case scenarios, such as those who have had previous bankruptcy’s, self-employed individuals who can’t prove their income, those with bad credit, …etc. You get the picture. The ‘B’ lenders will potentially give the client a mortgage loan no more than 80 – 85% of the real estate value; otherwise known as LTV Loan To Value. That means if the borrower does not have enough of the remainder of the funds in the form of a down payment, then they are left with trying to get a private lender to give them a private 2nd mortgage which would cover part of the down payment and the borrower would provide the rest of it. No lender would ever go up to 100% financing on these special case scenario types of deals. Therefore, the 1st mortgage lender will go up to a maximum of 80 – 85%, then they will stipulate in their contract that the borrower can get a 2nd mortgage up to an additional 5 – 10% and the rest the borrower will have to provide from his or her own resources.

Pros

– Quick money

– Straight forward approval process

– Look at the property more than the applicant

Cons

– High interest rates

– Lender fees

– Short term borrowing solution; paid back usually by one year or less

– Because it’s short term, at the end you have to refinance mortgage to pay back the 2nd mortgage and costs occur again in a short period of time

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Debt Consolidation

Debt Consolidation

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Debt Consolidation

The holiday season is over and now is the time to start thinking about all that spending you made during the last month or two. Well, if you own real estate, then there is a better option of doing a debt consolidation. debt consolidation

Many people will be stacking up high interest rate credit cards or using their personal line of credit’s to pay off their high interest rate credit cards, but even the unsecured personal line of credits that the banks offer have high interest rates.

If you own your own home and have been paying down the mortgage there is a good chance that you have built up value or equity in your property.

Equity is the amount of money worth on your home, when you take the appraised market value and subtract it from your current outstanding mortgage balance. Financial institutions in Canada, such as chartered banks and trust companies offer secured lines of credit or otherwise known as Home Equity Line of Credit HELOC up to 80 percent of the appraised value. In the financial services industry it is called Loan to Value LTV.

With today’s current Canadian prime lending rate of 3% HELOC’s are rated at Prime plus a percentage point. On average the Home Equity Line of Credit interest rates as of the date of this blog post are Prime + .50%. Is not this interest rate better than the 18 and above percent that you would pay with your credit cards?

A Mortgage Brokerage company such as Trusterra Mortgage would be in the best position to offer you professional and unbiased advise in the context of real estate and mortgages on how to manage your holiday debts and to help you start saving money and interest.

What are you waiting for? Contact us and let us help you to consolidate your accumulated debt and save on high interest rates.

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Fixed Mortgage Rate

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For many, the thought of knowing that your mortgage interest rate is set and will not change for the contract term is a piece of mind. The fixed mortgage rate is guaranteed not to change until the end of its contractual term; at which point the borrower will have to renegotiate with the existing mortgage lender or shop around for a better interest rate and mortgage term. This is another great example of how a mortgage professional can help you find the best mortgage product and interest rate.

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Variable Mortgage Interest Rate

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Variable mortgage rates have for the most part remained low for the past several years, in part due to the fact that the Bank of Canada has not changed its lending rate in two years coming this September. Therefore, although there is a chance that within the next one to two years the variable rate could go up, it won’t change by a whole lot, and could still be a good option for those individuals who don’t mind a fluctuation of interest rates within the long term of their mortgage contract.

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