HW Advantage https://www.hwadvantage.com Your Mortgage Specialist Mon, 02 Dec 2019 20:42:41 +0000 en-CA hourly 1 https://www.hwadvantage.com/wp-content/uploads/2013/11/favicon-apple.png HW Advantage https://www.hwadvantage.com 32 32 The Advantage Beyond the Mortgage Close https://www.hwadvantage.com/mortgage-education/the-advantage-beyond-the-mortgage-close/ https://www.hwadvantage.com/mortgage-education/the-advantage-beyond-the-mortgage-close/#respond Mon, 02 Dec 2019 20:42:41 +0000 https://www.hwadvantage.com/?p=1216 How our team is committed to supporting our clients beyond the close of business As in any industry you will meet the good, the bad and the indifferent; and yes, that unfortunately does include the mortgage arena. However, when you meet a mortgage broker who truly cares and understands the value of working for the […]

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How our team is committed to supporting our clients beyond the close of business

As in any industry you will meet the good, the bad and the indifferent; and yes, that unfortunately does include the mortgage arena. However, when you meet a mortgage broker who truly cares and understands the value of working for the client, you will never go without one again.

HW Advantage isn’t just our name, it’s our way of thinking. We look to provide advantages to our clients from their very first email or call and well beyond signing the final mortgage papers. We believe that when you close on your mortgage, that is only the start of our relationship. Unlike the big banks, it is our mission to save you the most amount of money and frustration over the lifetime of the mortgage.

The HW Advantage Promise When It Comes to Your Mortgage Close and Beyond

Getting the best mortgage for you is step one. Step two is making sure that your mortgage is working for you and your financial future. Here’s where our HW Advantage team differs:

Ongoing Management: We manage your mortgage in the same way a good financial planner manages your assets… constantly looking at new ways to save you money. Whether we recommend taking advantage of pre-payment options, accelerating your payments to pay down more principal each year, or consolidating higher interest debt, our number one goal is your financial health.

Access. We are available for a consultation or mortgage check-ups for all clients at any time.
Invest in Your Future. We track changes to the market and recommend ways to save on interest and / or use equity for investments.

Support. Life happens and we are on your team. We help clients manage mortgages and debt through challenging times, including separation, health problems, job loss, credit problems, etc… We are here for you.

Credit Improvement Strategy. Credit scores are so important in many areas of your life. We provide the advice and strategy you need to improve credit and eventually qualify for better rates, mortgages and more.

My Thoughts: If your mortgage broker or team is simply helping you get the mortgage you want and then you never hear from them again, that’s a red-flag that they don’t have your best financial health in mind. Find a broker who values your business enough to put in the work after you’ve signed.
 
Want to investigate a new mortgage close or renewal strategies? Contact us by filling out the form below or by calling us at 905-541-6961
 

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Where Key Federal Parties Stand on Housing https://www.hwadvantage.com/mortgage-education/where-key-federal-parties-stand-on-housing/ Tue, 22 Oct 2019 18:02:08 +0000 https://www.hwadvantage.com/?p=1199 Know more before you vote on Monday, October 21st There is no argument that this Canadian Federal Election is one of the most contentious in recent history. With arguably two key parties vying for control, the key issues that Canadians care about most are often left unsaid, opting to attack character rather than discuss policy. […]

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Know more before you vote on Monday, October 21st

There is no argument that this Canadian Federal Election is one of the most contentious in recent history. With arguably two key parties vying for control, the key issues that Canadians care about most are often left unsaid, opting to attack character rather than discuss policy.

We are here to help you look at each parties’ housing platform before you go into the voting booth on Monday. Here’s what the party leaders have released with regards to the Canadian housing market:
 

Liberal Platform

With a platform based on helping the middle class retain more of their money and climate change, the Liberal Platform, led by Justin Trudeau, has a combination of tax breaks and energy efficient bonuses for Canadian families. They pledge to:

  • Provide tax cuts that will save the average person another $292 / year
  • Expand the first-time home buyer incentive for people in Victoria, Vancouver and Toronto, expanding the value of a qualifying home from $500,000 to nearly $800,000
  • Increase first-time home buyers’ access to RRSPs for down payments up to $35,000
  • Crack down on property speculation with a consistent national tax on foreign-owned vacant properties, and a joint effort with provinces to combat financial crimes in real estate
  • Build 100,000 affordable homes over the next 10 years
  • Retrofit 1.5 million homes with energy efficient upgrades
  • Make Energy Star certification mandatory for all new home appliances, as of 2022
  • Give interested homeowners and landlords a free energy audit
  • Create a low-cost national flood insurance program
  • Offer interest free loans of up to $40,000 for Canadians looking to implement weather-based upgrades
  •  

    Conservative Platform

  • A little harder to pin down as they have not released their full platform, but this is what we know that Andrew Scheer is saying will benefit Canadian home buyers and home owners, specifically younger Canadians:
  • Remove federal GST from home heating fuels
  • Increase mortgage amortization from 25 years to 30 years for first time home buyers
  • Review the Liberal-introduced Stress Test and remove for renewals altogether
  • Combat money laundering in Real Estate
  • Implement 20% “Green-Homes” tax credit for up to $20,000 over two years for energy-saving home upgrades
  • Make federal real estate available for housing developments
  •  

    NDP Platform

    A party for the people, Jagmeet Singh has been vocal about advancing the needs of middle and lower-class families. In housing, they would look to:

  • Create 500,000 affordable housing units over 10 years and
  • Introduce 30-year amortization period for first-time home-buyers
  • Double the Home Buyer’s tax credit to $1,500 for first time buyers
  • Waive the federal portion of the GST/HST on new affordable rental units
  • Implement a national 15-per-cent tax on home purchases by those who aren’t citizens or permanent residents
  • Support communities to increase the building of co-ops, social and non-profit housing; amount not specified
  • Invest $40 million in the Shelter Enhancement Program over the four-year term
  •  

    Green Party Platform

    With a strong position on climate change and Canada’s role, the Green Party, led by Elizabeth May, is campaigning on a vision of Canada where homes are powered by renewable energy by 2030. Similar to the NDP, their families-first approach

  • Legislate housing as a legally protected fundamental right
  • Eliminate the recently introduced first-time home-buyer grant with a possible replacement
  • Restore tax incentive for the building rental housing
  • Build 25,000 affordable units and renovate 15,000 more every year
  • Create a dedicated federal housing minister position to tailor long-term affordable housing solutions within each province
  •  

    My Thoughts:

    There is a clear delineation between the left and the right when it comes to building affordable housing, green energy rebates/incentives, and the regulation or de-regulation of the mortgage/banking system. Depending on where you stand on these issues should help you determine which party to support. All sides seem to agree on wanting to make it a little easier for first-time home buyers to enter the market (likely after witnessing the results of the stress test), which I think is positive. However, what politicians say and what they do is any one’s guess. Don’t forget to VOTE!
     
    *Sources: BNN Bloomberg, CBC, Globe and Mail, Macleans.ca
     
    Want to investigate mortgage or renewal strategies? Contact us by filling out the form below or by calling us at 905-541-6961

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    New Government Shared Equity Plan… What is the Risk? https://www.hwadvantage.com/mortgage-education/new-government-shared-equity-plan-what-is-the-risk/ Thu, 19 Sep 2019 14:08:40 +0000 https://www.hwadvantage.com/?p=1190 The Government of Canada recently introduced an incentive program for first-time home buyers that has many people outside the industry wondering if it’s a good move to help the next generation get into a home, or if it doesn’t really quite fill the need. Essentially, the government is providing a first-time home buyer incentive in […]

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    The Government of Canada recently introduced an incentive program for first-time home buyers that has many people outside the industry wondering if it’s a good move to help the next generation get into a home, or if it doesn’t really quite fill the need.

    Essentially, the government is providing a first-time home buyer incentive in the form of a Shared Equity Plan. This means that the government will have a shared interest in your home and benefit from any increases in value or lose from any dips. They say this is to help first time buyers qualify for a home and reduce some of the expenses related to mortgage and closing costs.

    The parameters to qualify for this shared equity incentive are as follows:

  • Available for those with a combined income of $120,000 or less and who have never purchased a home before
  • It will provide first time home buyers with an additional 5% of purchase price for standard home or up to 10% from those purchasing new construction
  • Regardless of type of home, borrowers must have their own minimum 5% down payment
  • Total down payment amount (home buyers down payment + incentive) must be less than 20% of the value of the home
  • Maximum mortgage amount + incentive amount cannot exceed 4x income.
  • Must repay the loan at time of sale or at the end of the 25-year term
  • You can pay back this loan at any time, with no prepayment penalty
  • The repayment amount will be calculated based on the home value at time of repayment and an appraisal will be required
  •  

    The Numbers Behind the Shared Equity Plan:

    As enticing as this might sound to people struggling to get approved for a mortgage, a mortgage broker will give you the real numbers behind the incentive. Depending on your situation, what seems like a great short-term solution, may end up costing more than you’re willing to invest in the long term. While there is no interest on the loan, the government does get 5% of any increase in the value of your home when it’s time to repay the loan. On the other hand, they also share in any loss if the property’s value declines.

    Let’s look at this example… you decide to purchase a home priced at $400,000 and receive an incentive of $20,000. Let’s look at a few different pay-back scenarios:

    Scenario 1: You decide to repay the loan two years later. The home is now appraised at $500,000. That means that you have to pay the initial $20,000 with another $5,000 based on the increase in the value. So, you will have to repay $25,000. Not too bad.
    Scenario 2: You decide to repay the loan 2 years later, but the home has decreased in value, now appraised at $375,000. Rather than the $20,000 initial investment, you only are required to repay $18,750.
    Scenario 3: Congratulations on your growing family. That means you have outgrown your home and decide to move five years later. With your home now valued at $650,000, in addition to the $20,000 you owe another $12,500 for a total loan repayment of $32,500.
    Scenario 4: You decide to move 10 years later and your home value is now $900,000. What once seemed like a reasonable $20,000 interest-free loan, now costs you $45,000 to repay.

    My Tip: If you are certain that you can facilitate a quick turnaround on the loan payback, this might be worth-while to investigate. If you think that you won’t be able to pay for years, I would highly recommend working with a mortgage broker to find a financial institution who will approve your mortgage. If you are aiming too high, a mortgage broker can point you in the right direction to ensure you are getting in the home that is right for you.
     

    Want to get started? Contact us by filling out the form below or by calling us at 905-541-6961

     

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    The Pros & Cons of Co-Signing https://www.hwadvantage.com/mortgage-education/pros-cons-co-signing/ Thu, 04 Apr 2019 16:24:41 +0000 https://www.hwadvantage.com/?p=1123 When Qualifying for a Mortgage or Renewal is Just Out of Reach With stress tests and current home prices still out of reach, many Canadians are looking at co-signing in order to buy or re-finance their home. While this might not even be an option for some, for others there still seems to be a […]

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    When Qualifying for a Mortgage or Renewal is Just Out of Reach

    With stress tests and current home prices still out of reach, many Canadians are looking at co-signing in order to buy or re-finance their home. While this might not even be an option for some, for others there still seems to be a lot of mis-information out there on this topic, so let me set the record straight.

    Q. What is a co-signer?

    A. A co-signor is an individual who agrees to be named on both the mortgage and the title of a property to help another borrower qualify for the required mortgage financing.

    Q. What are the main reasons that I should consider a co-signer?

    A. Most often co-signers are engaged when a homebuyer can not qualify for a mortgage alone, typically based on income or job situation, such as those who have been self-employed for less than 2 years or those who don’t have enough tenure at their current job. The addition of a co-signer can help satisfy the income requirements needed to qualify for a mortgage or can also be enlisted for their strong credit, which can strengthen a mortgage application.

    Q. I have heard the terms Co-signer and Guarantor. What is the difference between the two and which makes the most sense for those looking to buy their first home?

    A. While adding a co-signer is the most common of the two, a guarantor, generally a spouse or immediate family member, is not named on the title of the property but is named on the mortgage. In most cases this person needs to occupy the property as their principal residence and have a valid reason for not being named on the title. For example, if one spouse is an owner of a corporation in an industry that is vulnerable to lawsuits, they will want to protect their home against future claims by omitting their name from the title. However, as a guarantor they are still recognized by the lender for their income and credit.

    Q. Who can co-sign? Does it have to be a parent?

    A. Most big banks and AAA lenders want immediate family members to be co-signers, however there are exceptions when friends and more distant relatives can be considered.

    Q. What is required of a co-signer?

    A. A co-signor has the same requirements as the main borrower(s), such as standard proof of income and credit. This will include the co-signer’s liabilities and other mortgages. Basically, the co-signer is not just another signature, but they have to be in good financial standing to help you improve your application.

    Q. If my financial situation changes, can the co-singer be removed from my mortgage and property title?

    A. This really depends on the lender, which is why we always recommend talking with a  knowledgeable mortgage broker when deciding whether to use a co-signer. Some lenders will allow the co-signer to be removed penalty-free within the mortgage term as soon as the main borrower(s) can show they can qualify on their own. There is typically a small legal fee (roughly $300-$500 depending on how expensive the art is in your lawyer’s office) to assume the co-signer off the title of the property. This is definitely something you’ll want to understand before signing on the bottom line.

    Q. Are there any drawbacks for the co-signer?

    A. Generally there is no financial burden to the co-signer unless the main borrower(s) defaults on mortgage or property tax payments. In this case the co-signers credit will be negatively impacted and the bank or municipality will go after the co-signer for payment. The other consideration is that if a co-signer is requiring credit of their own, the mortgage payment obligation, even if they are not the one actually responsible for making the payment, will be considered in qualification. There are ways to mitigate that impact but it requires further discussion.

    Q. Does getting a cosigner impact any first time home buyer incentives in Ontario

    A. Generally the lawyer registering the mortgage will set up first-time buyers as 99% owners of the property and co-signers as 1% owners. This has to be agreed upon by all parties involved but that way FTB will receive 99% of any rebates.

    My Tip: In today’s economic and housing climate, co-signers are becoming more of a reality for many first-time homebuyers. However, do not try to negotiate a mortgage, where a co-signer is involved, without the help of an experienced broker; there are too many details that could impact the parties involved, including the ones you read above. Plus, there may be some tips and tricks to getting that first mortgage approved without the need for a co-signer. Our HW Advantage team can talk you through your options and then you can weigh your options and make an informed decision.

     

    Want to get started? Contact us by filling out the form below or by calling us at 905-541-6961

    Contact Us
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    January Mortgage Forecast https://www.hwadvantage.com/mortgage-education/january-mortgage-forecast/ Tue, 12 Feb 2019 19:36:44 +0000 https://www.hwadvantage.com/?p=1005 January Mortgage Forecast – 2018 was Stressful, but 2019 will be Hopeful  Let’s just say it… last year sucked for those most vulnerable trying to get ahead in the home ownership game. Thanks to the newly introduced “stress test” and rising rates, both fixed and variable, the housing market cooled considerably. Even as we prepared […]

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    January Mortgage Forecast – 2018 was Stressful, but 2019 will be Hopeful 

    Let’s just say it… last year sucked for those most vulnerable trying to get ahead in the home ownership game. Thanks to the newly introduced “stress test” and rising rates, both fixed and variable, the housing market cooled considerably. Even as we prepared to welcome in a new year, with all the hope that it so often brings, we were hit with the reality of North American markets trending downwards and whispers of a recession. 

    As we head into 2019 and look at the mortgage forecast, we expect to see the conversation around consumer debt take centre stage. For the first time in a while, Canadian households are feeling weighed down by their debt as rising interest rates take them further down that slippery slope.

    In 2018, the Bank of Canada increased its benchmark rate three times ending at 1.75 percent. Another two or three hikes sounded all but confirmed for 2019, but recently the Bank of Canada has cooled discussions of rate hikes and we are now hearing whispers of potential rate stabilization or even (gasp) decreases. 

    For the first time in a while, households are having to renew their mortgages at higher rates than what they last renewed at. Mainly because rates in general are up, but also because of the Government “Stress test” rules which have made it more challenging to shop around and qualify for the best rate… So now, for some, it’s a struggle to renew altogether at a rate that is feasible for their family to afford.

    A survey last fall by Ipsos Canada on behalf of insolvency trustee MNP found one in three Canadians worry that rising rates could push them into bankruptcy.

    There Are Options

    While many banks and lenders continue to make life difficult for many of my clients (they still don’t like you if you are self-employed), based on the property types they’ll lend on, and pricing according to the loan-to-value of the mortgage, there are still a number of options out there. Banks, credit unions, mono-line lenders and private lenders all have different pro’s and con’s so be sure to work with a trusted mortgage broker as you consider all your options for you and your family.

    We, as brokers, can help Canadians navigate this changing home ownership landscape. We know that households don’t have to play by the rules set by the big banks and can start to push back and get the mortgage that meets their needs. 

    My Tip: Continue to be optimistic. We are hearing rumblings of lower than expected Bank of Canada interest rate changes. We are also seeing provinces push back on the stringent rules surrounding the Stress Test altogether. The conversations are continuing and the stress test has already become a topic for this years federal election so stay tuned and informed! 

    Want to get started? Contact us by filling out the form below or by calling us at 905-541-6961. 

    Contact Us
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    Changes to HELOC Rules Now In Effect https://www.hwadvantage.com/mortgage-education/changes-heloc-rules/ Wed, 05 Dec 2018 11:50:18 +0000 https://www.hwadvantage.com/?p=985 HELOC Home Equity Line of Credit The big banks have slowly and quietly introduced new regulations that could affect some 3.1 million Canadians with home equity line of credits. So what changes are we talking about here and how can it impact you? Well, for those looking to qualify for a mortgage – new or […]

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    HELOC Home Equity Line of Credit

    The big banks have slowly and quietly introduced new regulations that could affect some 3.1 million Canadians with home equity line of credits.

    So what changes are we talking about here and how can it impact you?

    Well, for those looking to qualify for a mortgage – new or renewal – you may now be asked to prove that you can pay your debt based on your mortgage amount, plus your FULL line of credit available balance amount. In past years if you had a $100,000 line of credit and you owed zero dollars, it wouldn’t even be taken into consideration. If you owed, $10,000, that amount would be added onto your mortgage amount to determine the total amount of debt to be re-paid. Today, that full $100,000, regardless of how much you have used, will be added to your mortgage to determine eligibility.

    Let’s look at a scenario with some basic numbers added in:

    2017: You were applying for a mortgage of $375,000 and had a HELOC of $200,000, but have only used $10,000, so you would be applying for a mortgage based on your ability to pay back $375,000 at a rate of 2.99% and a HELOC of $10,000 at a rate of 5.34% over a 25-year amortization period. You would proving you could afford roughly $1830.86/month.

    2019: Same scenario looking ahead to January 2019. You now are looking at proving you can pay back the $375,000 at 5.34% and a HELOC limit of $200,000 at a rate of 5.34% over that same amortization period. You would now be looking at proving you could afford roughly $3,456.38/month.

    Pretty significant when you put numbers to it. This is another rule change making it harder for Canadians to be able to purchase additional properties (rental or vacation homes) and will hinder many peoples ability to “shop around” for the best mortgage option/rate at their renewal dates or for refinancing. Keep in mind, banks are well aware of this fact and we’ve already seen banks offering high rates to their renewal customers because they know a large number of their clients will be unable to qualify elsewhere.

    On the surface, these changes are being introduced to help Canadians manage their debt-load; especially in times of financial flux. TD Canada Trust announced their new approach on November 5th stating that the changes were “prudent underwriting guidelines that reflects concerns around consumers’ abilities to manage debt.” However, these changes indirectly give Banks a considerable amount of power over their existing borrowers and hope that the government considers this as they roll out future regulations. Options and competition are always a good thing and this change may be pushing our country in the wrong direction if not handled carefully.

    For those who have been turned down for a mortgage under these new regulations, or expect to be rejected, there are some workarounds:
    1. Cancel your HELOC all together and take it out of the equation
    2. Lower your HELOC if you are close to qualifying, but just out of reach
    3. Find a co-signer to help you qualify
    4. Work with a broker to find another lender… never settle for the first answer

    My Tip: Working with a broker can help you identify risk-reduction strategies before you apply. If you can’t qualify for a mortgage with your current line of credit, consider lowering your limit rather than cancelling all together. You still might want that safety net for life’s mishaps.

    Want to get started? Contact us by filling out the form below or by calling us at 905-541-6961.
    Please call me with any questions.
     

    Contact Us
    Sending

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    Is a Reverse Mortgage Right for You? https://www.hwadvantage.com/mortgage-education/reverse-mortgage-right/ Wed, 24 Oct 2018 09:07:29 +0000 https://www.hwadvantage.com/?p=960 By retirement, often the largest asset our clients own is their home and that often plays into their retirement strategy. Early in our relationship, we ask specific questions surrounding retirement and work with our clients to ensure we understand their short and long-term financial goals as it pertains to home ownership. Life happens and we […]

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    By retirement, often the largest asset our clients own is their home and that often plays into their retirement strategy. Early in our relationship, we ask specific questions surrounding retirement and work with our clients to ensure we understand their short and long-term financial goals as it pertains to home ownership.

    Life happens and we know that not everything goes according to plan, so by retirement, sometimes there may be a need for additional revenue. A little extra boost to help you live the retirement you have always wanted.

    The concept behind a reverse mortgage is simple – it allows homeowners to borrow against their home while maintaining ownership. However, the actual decision to pursue a reverse mortgage is anything but simple. It requires concentrated thought and careful weighing of the pros and cons as it relates to your overall goals.

    For those looking to subsidize their retirement with additional finances, either short or long term, a reverse mortgage may be a viable option. The premise is that the lender makes payments to you, the borrower, either as a lump sum or in monthly payments. The borrower, if aged 55+, can qualify for a reverse mortgage and access up to 50 per cent of the home’s value (lender depending). Considerations for qualification:

  • Your Age (Also spouses age)
  • Value of Home
  • Current Interest Rates
  • Other assets
  • Credit
  •  
    A key benefit is that the borrower only pays interest on the amount that has been withdrawn rather then on the full amount like you’d see in a standard refinance. A lower interest rate is what can make this option so tempting, despite the higher rates.

    While a reverse mortgage is enticing because it provides tax-free income as a short-term solution, there are those that fall into the trap of going into a reverse mortgage unprepared and uneducated. Our HW Advantage team won’t let that happen. We will take time to make sure you understand:

    Fees: Often the fees associated with a reverse mortgage leave people experiencing “sticker shock.” The lender fees and the interest rates are typically higher than standard mortgage rates/fees. It is important to balance the long-term cost with your long-term financial goals. This might not be worth the price.

    Payback: Clients have to be aware that if they decide to leave the home, for whatever reason, they are responsible for paying back the mortgage borrowed.

    Impact on Your Estate: In the case of death, you will be leaving your loved ones with less total equity in the home than you might like.

    If, after understanding the financial and emotional implications, you are considering a reverse mortgage, ask yourself:

  • Have I considered all my options?
  • Have I talked with my spouse / children about what this could mean?
  • Are you open to selling your home and moving to a less expensive property?
  • What do you want to leave behind for your loved ones?
  •  
    My Tip: If you can find other revenues to help you manage your retirement funding let’s talk about those first. Using the equity in your home as a retirement strategy does have its drawbacks and we always recommend talking with your family prior to making any decisions.

    If you have thought through all the options and want to discuss strategy, our HW Advantage team should be your first call. We have the expertise to handle the most complicated scenarios and the compassion to walk you through this, often emotional, process.

    Want to get started? Contact us by filling out the form below or by calling us at 905-541-6961.
    Please call me with any questions.
     

    Contact Us
    Sending

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    Home Equity: Handling Life’s Unexpected Expenses https://www.hwadvantage.com/mortgage-education/home-equity/ Thu, 27 Sep 2018 10:07:26 +0000 https://www.hwadvantage.com/?p=944 You have a savings account, have contributed to RESPs for your child’s education and have life insurance. Sometimes all the planning in the world can’t account for those unexpected major life costs. Let’s look at the pros and cons of using equity in your home can help you manage those financial burdens. Old fashioned savings, […]

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    You have a savings account, have contributed to RESPs for your child’s education and have life insurance. Sometimes all the planning in the world can’t account for those unexpected major life costs. Let’s look at the pros and cons of using equity in your home can help you manage those financial burdens.

    Old fashioned savings, especially with regards to post-secondary education through RESPs, is usually the best way to handle many of life’s major costs but often these expenses turn out to be more than expected and require more money than you might have. Or, sometimes expenses come at you when you are least expecting them. Think broken car, unexpected engagement, pregnancy, illness… sadly, the list goes on.

    Using equity in your home is often the least expensive way to borrow money, at least from an interest rate perspective. Banks have the security in the property you own, which limits their risk, enabling them to often offer a loan at lower rates then you would see with credit cards, instalment loans or unsecured lines of credit.

    Pulling from investments is another way to cover these costs, however many financial experts argue that if you are making 6 to 9% on your investments and only paying 3 to 5% on your secured mortgage or line of credit, plus factoring in the tax benefits from your investments, it makes financial sense to borrow the money required and keep your investments intact.

    Important factors when considering borrowing against the equity in your home:

  • Repayment schedule
  • Current mortgage vs current value in your home
  • Credit worthiness / credit score
  • Required loan flexibility
  • Urgency of loan
  • Identifying other higher interest debts or upcoming expenses to consider including in the loan
  •  
    Determining whether to refinance your existing mortgage, add a second mortgage or a secured line of credit is something you should work out with your trusted mortgage broker before committing or signing on the bottom line. There are many long-term factors that could come into play and working with someone who understands your long-term goals is key to ensuring you are making the right decision at this time.

    My Tip: If you can, try to put money aside to help finance those unexpected expenses that come up. Even a little bit can alleviate some of the stress that having to refinance or borrow against your mortgage can cause. However, if you do have to borrow against the equity in your home, make sure you are working with your mortgage broker to ensure the rates and the terms are the best for you.

    Want to get started? Contact us by filling out the form below or by calling us at 905-541-6961.
    Please call me with any questions.
     

    Contact Us
    Sending

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    The Mortgage Process: What exactly can you expect https://www.hwadvantage.com/mortgage-education/mortgage-process-expectations/ Tue, 17 Jul 2018 11:29:06 +0000 https://www.hwadvantage.com/?p=922 The mortgage process can be stressful… ask anybody who’s gone through it once, twice or twelve times. It never gets easier, and now with the new financial rules and regulations in place, it seems to be even more daunting for people. Let’s change that! As a mortgage broker, I get questions sent to me every […]

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    The mortgage process can be stressful… ask anybody who’s gone through it once, twice or twelve times. It never gets easier, and now with the new financial rules and regulations in place, it seems to be even more daunting for people. Let’s change that!

    As a mortgage broker, I get questions sent to me every day from new homeowners or those looking to renew or refinance. What is the best rate? Variable or fixed? Which lender and why? Those are just the tip of the iceberg. Below I have created a “What You Can Expect” guide to help you better understand the mortgage process, enabling you to make more informed decisions. That is the HW Advantage!

    Let’s take a look at what to expect, who’s involved, and how the process typically works.

    The Mortgage Process – Find your broker:

    Every mortgage process should begin by contacting a trusted mortgage broker (in my non-biased opinion of course). They will be able to answer all of your questions up front, set expectations and deadlines, and act as a resource throughout the entire process. They will coordinate with your realtor, lawyer, bank/lender, and accountant (if necessary) to ensure a successful and timely closing experience. 

My Tip: Be upfront and honest with your broker (they are on your side), especially regarding any credit or income issues. This will help you avoid most last-minute complications.

    The Mortgage Process – Completing your application form:

    While the application forms can be lengthy, it is critical to fill out all of the information requested properly for the broker so they can provide you with multiple options and ultimately secure you a mortgage that will best suit your needs now and into the future looking at rate / term / lender / strategy.

My Tip: As you are completing your application form, organize and provide income documents that you have handy (current pay stub, recent T4, NOA) along with your application to your broker.

    The Mortgage Process – Mortgage approval:

    Once your broker has obtained a mortgage approval, which typically takes between 1 and 3 days after your application is submitted, you will be issued a mortgage commitment along with a personalized checklist. The Mortgage Commitment will outline rate, term, payment options, and mortgage conditions, and your checklist itemizes the conditional documents that are required in order to satisfy the conditions of your mortgage commitment (ie pay stub, T4, void cheque etc). 

My Tip: When purchasing a new property make sure you review the entire mortgage commitment with your broker and get all your questions answered first before waiving your condition of financing in your purchase agreement.

    The Mortgage Process – Satisfying your mortgage approval:

    Once you’ve provided all required documentation to your broker they will review and forward to your selected mortgage bank/lender and confirm all conditions from your mortgage commitment are satisfied. At that time they will coordinate with your lawyer to ensure they have been instructed by the lender and are prepared to complete the purchase, refinance or mortgage renewal.

My Tip: Follow-up with your lawyer directly to assume they have received what they need on your behalf. Never assume!

    The Mortgage Process – Closing:

    Finally your lawyer will contact you to set up a signing appointment. They handle all the legal aspects of registering your new mortgage and manage all the money coming in (ie down payment) and going out (ie funds to seller) for the transaction to be completed. They will also sign and review the conditions of the mortgage with you one last time to ensure your understanding of the mortgage details. 

My Tip: Do your research and go in with any questions you might have. Don’t assume that you will have time to ask later.

    Overwhelmed yet? Good thing you completed Step 1 of this process and you have your trusted mortgage broker by your side for all the questions you’ll have along the way.

    Purchasing a new home, renewing or refinancing are big decisions and a lot goes in to obtaining and securing a great mortgage. It’s important to feel comfortable and informed throughout the entire process. Our HW Advantage team wants to work with you to ensure you understand your options and are confident in the decision you ultimately make.

    Want to get started? Contact us by filling out the form below or by calling us at 905-541-6961.
    Please call me with any questions.
     

    Contact Us
    Sending

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    Required Documents Checklist https://www.hwadvantage.com/mortgage-education/required-documents-checklist/ Thu, 12 Jul 2018 11:26:32 +0000 https://www.hwadvantage.com/?p=918 Satisfying the terms of your mortgage approval can be a daunting task and often stressful. Our team at HW Advantage provides you with the guidance you need to ensure you have everything in order to close without delay (as much as possible). That is the advantage of working with a broker… we know what you […]

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    Satisfying the terms of your mortgage approval can be a daunting task and often stressful. Our team at HW Advantage provides you with the guidance you need to ensure you have everything in order to close without delay (as much as possible). That is the advantage of working with a broker… we know what you need and take the guesswork out of the process.

    In order to satisfy the conditions of your mortgage, so your mortgage funds properly on your closing date, you’ll receive a checklist from us, like the one below that shares what documents you specifically need to close your mortgage on time and with as little hassle as possible. This is just a sample… the individual points and needs will depend on your unique mortgage situation.

    SAMPLE OF REQUIRED CLOSING DOCUMENTS CHECKLIST:

    Dear Name,

    This is your customized list to help you understand exactly what documents are required to meet the conditions of your mortgage. All documents can be in hard copy, photocopy or electronic (pdf) form.

    • Signed [Bank/Lender] Mortgage Commitment
    • Purchase & Sale Agreement for the sale of [EXISTING HOME ADDRESS]
    • Purchase & Sale Agreement for [NEW HOME ADDRESS]
    • Void cheque
    • Letter of Employment
    • Recent Pay Stub (within last 30 days)
    • Down payment verification

    Note: [Bank/Lender] has the right to request additional documentation if what is provided is deemed to be insufficient.

    Please ensure all documents are submitted AT LEAST 10 business days prior to closing to ensure a wonderful and comfortable experience.

    Please call me with any questions.

    Harrison White
    Licence # M12000299
    HW Advantage – Expert Mortgage Services
    905-541-6961

    It’s as simple as that… If you are looking at securing a new mortgage or renewing your mortgage, give our HW Advantage team a call or contact us using the form below.
     

    Contact Us
    Sending

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