Survey Says-- You Want To Know More about Financing a Home

 

The #1 comment I get is -- I just want a simple mortgage !
Mortgages are far from simple mainly due to each mortgage being different because everyone has different circumstances. It is a big loan for a home, and Financial Institutions want to know they will get their money back. They are not interested in owning your home if a default should happen. It is more headaches for them.

1. So What Should You Do If You Want To Buy

Get your financial information in order.
- Make sure you have pay stubs, T4's, Assessment papers from your income tax
- Know what your savings are
- Got RRSP's - you may be able to use them for your down payment
- Know what you owe in credit cards, car payments, personal loans

2. Make an Appointment With a Mortgage Professional

A Mortgage Professional will help you get the needed information on financing a home for your circumstance. They cannot give you accurate advise without the accurate financial information. That is the main reason, they pull a credit score right away. It gives them the information needed on who you owe and how you have managed your credit in the past.

3.Your Credit and The Mortgage Professional Services

A home is a big investment. You will spend at least 15-25 years paying for your home. To predict if you are a good risk the Financial Institutions look at your ability to pay now and in the future, also by looking at your past in relation to your credit score and how you managed past credit.
Most people have had a rocky period when it comes to their past credit, due to unpaid cell phones, divorces, job loss, etc. That is just part of what happens in Life. The Financial Institutions understand that. That is why once you have had a hardship, you are able to build up your credit score once again.
Most clients I ask about their credit score, don't know what it is or how it applies to them. It is a huge mystery to most people. That is why it is so important to work with a mortgage professional, so they can guide you. If you go to a Bank, the conversation is yes or no. The mortgage professional on the other hand will advise you on what to do next. What can you do to get your home? A mortgage professional will let you know. The job of a mortgage professional in simple terms is to find you the best mortgage and to secure financing for your home.

4. What is Involved In Financing

-income -the ability to pay a monthly mortgage
-paperwork from the past 2 years-- Notice of Assessments, T4's, a record of savings or where the down payment will come from, bank statements, letter from your employer, credit report from your mortgage professional
-good credit score

5. Why Does It Say 5 Year Term/ 25 Year Amortization?

Is my mortgage paid off in 5 or 25 years?
A mortgage is usually long term so the correct answer would be 25 years. Because, the mortgage is so long in a time period, you have the ability to break it down into shorter terms to reflect the newer interest rates and the new options that have been put into place. A 5 year term is the most common term in a closed fixed mortgage.

Is That good?
It is nether good or bad. For right now the interest rates are low, when you renew in 5 years from now chances are you will be renewing at a higher interest rate. Although if you have had a mortgage previously and your mortgage is now coming due, you would be getting a lower interest rate then what you had previously. It is all about timing that no one can control.
For options that usually is better for you. We now have more liberal prepayment clauses then we did 5 years ago. It is always a good idea to talk to your mortgage professional about 3-6 months before your mortgage needs to be renewed. They will watch the market for you to time a better deal for renewing.


How Much Does A Mortgage Professional Cost?

The services of a mortgage professional is free. The financial institutions pay the mortgage professional when a mortgage is secured. So unless you have an extreme case, you will not pay for any of these great services. The mortgage professional will disclose to you at the start if they require payment for securing a mortgage for you.

When Buying a Home What Do I Pay For?

-Closing Costs-- lawyers, property transfer tax, home inspections
If needed-- home appraisal, well inspections, septic inspections
For closing cost a budget of 1.5% of the purchase price is usually enough to cover this expense.


Of course, if you should have a specific question please email or call me.

akroemer@mortgagegroup.com
1.250.650.4182

B-20 Mortgage Brokers will get Friendly With Their Credit Unions

B-20 Mortgage Brokers will get Friendly With Their Credit Unions

B-20 formally came into full-effect this week, but  mortgage brokers  have learned to live with the stricter underwriting guidelines from OSFI months ago and have even put a positive spin on it.

_{The guidelines cover banks that are federally regulated but we have access to many more lenders that are not under OSFI.}

 

_{Earlier this year, OSFI said it would compel federally regulated lenders to implement a series of lending changes by their fiscal year end (October 31 for most banks). Among those changes were: reduction of HELOC loan-to-value from 80 per cent to 65 per cent; the elimination of 100 per cent financing, aka 5-per-cent cash-back mortgages; and the requirement that variable rate mortgages and mortgages with fewer than 5 years, must now be qualified using the mortgage qualifying rate or contract rate.}

 

_{A few weeks from now, when more borrowers get turned down by the banks, brokers will probably see more business.}

 

_{Many federally regulated banks and some monolines began implementing the changes well before the October 31 deadline, other lenders like ING Direct have until the end of 2012 given fiscal years that end December 31.}

 

_{It’s getting harder for some borrowers to get a loan. The new rules affect maybe 10 % of clients looking for a mortgage, but Brokers can still get the loans from other lenders.}

_{The situation has led many brokers to take some of their deals to credit unions, which traditionally haven’t traditionally been a mortgage professionals first stop.}

 

 _{Previously credit unions were not very popular among many brokers because clients preferred to borrow from the better-known banks. Credit unions also typically require borrowers to appear personally at the lender’s office and become a member of the credit union before getting a loan.}

 

_{Credit unions are now ideal for borrowers seeking an 80 per cent LTV on a HELOC, require a 5-per-cent cash-back mortgage or need to qualify for a one- to four-year term mortgage at the posted rate.}

 

 

_{For more information on the new rules or to qualify for a mortgage , give me a call.}

 

 

 

 

Paying Your Mortgage Off Faster

Some people are happy with their mortgage payments and the terms in years for paying off their mortgages, and that is fine.

While other people want to get their mortgage payments done with and their home paid off.
There are a variety of ways of getting your mortgage paid off faster and by paying off the mortgage faster, you are saving a ton on interest payments.

 Look at your mortgage, what is the interest rate you are paying?  Are there better interest rates on the market?

Next,  look at the terms of your mortgage. Does it allow you to prepay an amount monthly, yearly? Are the prepayment terms too high of an amount you would never prepay, anyway.

If you are paying too high of an interest rate and your prepayment terms are too impossible, your next step may be to switch your mortgage to a different Lender to have the flexibility to prepay and to get a lower rate. Just getting a lower rate will take off a few years of your mortgage payments.

So now, you have taken the necessary steps to make paying off your mortgage a reality.
Now What?

There are different ways you can pay off your mortgage faster. You can do it all or in part and you will still get your mortgage paid off faster.

1. Switch from monthly to accelerated bi-weekly or accelerated weekly payments.

2. Pay an extra $100.00 bi-weekly or weekly.

3. Make a lump-sum payment of just $1000.00 or more per year for the life of the mortgage.

If you combine all 3 steps by the minimum amounts you could be mortgage-free as much as 8 years faster based on a $200,000.00 mortgage.



The difference Accelerated Bi-weekly
payments make











Need more information?  Be sure to contact me.

Angela Kroemer, AMP

Mortgage Professional

TMG The Mortgage Group Canada Inc.

TMG Sharie Marie Mortgage Team

Local: 1.250.650.4182

TFP: 1.888.679.0190

Fax: 1.888.679.0192

akroemer@mortgagegroup.com

www.KROEMERmortgages.com

 

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Business Financing? Yes, We have It With TMG Merchant Capital Program

TMG Merchant Capital Group

I am excited and pleased to announce a new division that The Mortgage Group Canada Inc has opened up and it is TMG Merchant Capital Group, powered by Merchant Advance Capital (MAC) is a Canadian owned and operated company headquartered in Vancouver, British Columbia. The founders of the company have significant financial and business experience, including owning and operating a variety of businesses.

TMG Merchant Capital Program is a purchase of your future debit/credit card sales for a discount today. The obligation is paid back through a small percentage of all of your debit/credit card transactions (this percentage ranges between 5-15% for the TMG Merchant Capital Program).

Since day one, Merchant Advance Capital (MAC) have been providing easy access to capital to Canadian small and medium sized businesses by:

• Advancing capital based on future debit/credit card sales;
• Being able to work with any payment processing company;
• Saying 'yes' to more businesses; and
• Using a consultative approach and providing exceptional customer service!
 

Merchant Advance:
A Merchant Advance is not a loan; it is a discounted purchase of future debit/credit card receivables for cash now. It has been designed to provide growth capital to small-medium sized businesses with no collateral required.

How It Works
The advance is a lump sum of cash in exchange of a lump repayment amount. The repayment amount is paid down a little bit each day through sales made on your credit card machine. Each day a percentage of your card sales automatically go towards chipping away at your balance until the repayment amount is $0.00.

A TMG Merchant Capital Program can be used for any business purpose, such as purchasing inventory, renovations, acquisitions, advertising & marketing, expenses etc.

Example:

An owner of a restaurant which processes approximately $30,000 of debit/credit card sales per month receives a TMG Merchant Capital advance of $24,500 in exchange for $32,400 of future debit/credit card sales collected using a 12% withholding. TMG Merchant Capital withholds 12% of all debit/credit card transactions until it receives $32,400 which in this example would take approximately 9 months. Once the restaurant owner has repaid the majority of the payback amount, he is eligible for a renewal.

The Benefits-There is no interest rate – the amount owed will never grow, so you know exactly how much the funds will cost from day one.

 -No fixed payments -repayment is made on a daily basis, through a percentage of your debit & credit card sales. If you sell $200 one day in debit & credit sales, and your daily withholding is 10.0 % then $20 will automatically go to chipping away at your balance.
- No collateral required – Merchant Advances have been designed for fund small- medium sized businesses, no collateral is needed to qualify.
- No changes to your existing hardware – Merchant Advances are compatible with any Merchant Service provider. You do not have to change who you process your debit & credit cards with.
- No delay on your sales – the no-delay debiting system ensures that you receive your sales right away so you never have to wait.
- Receive funding quickly – your business is able to receive funding in 7 business days. In comparison a bank could take 4-8 weeks.
- Repaid quickly – Merchant Advances are modeled to be repaid within a year so your business does not become burdened with long term debt.
-Does not report on your credit bureau – as a Merchant Advance is not a loan, it does not report to the credit bureau.

Our differentiator: TMG Merchant Capital, we want to be a part of your success. Many merchant cash advance companies offer larger up-front advances, but their programs have high withholding percentages which can severely impact a your cash flow. They also increase the discount at which the future sales are purchased in order to cover the increased risk of having merchants that are not as healthy during their program.

 We believe in offering a cost effective service that makes financial sense for you, our clients, and we wish to build long-standing relationships for your financing needs.

The Process:Day 1:

 Application forms and merchant processing statements submitted.
Day 3: 
 Conditional offer is made to the applicant, subject to satisfactory review of remaining documents.
Day 5:
  Final agreement sent out and executed after one day of review of remaining documents.
Day 7:
 Account is funded after banking environment is set up.

 
Contact me and see how much you qualify for today!

Angela Kroemer, AMP
Mortgage Professional
TMG The Mortgage Group Canada Inc.
Local : 1.250.650.4182
T.F.P:  1.888.679.0190
T.F.F:  1.888.679.0192
Email :akroemer@mortgagegroup.com
Website : www.KROEMERmortgages.com


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