It PAYS to shop around.
Many Canadian homeowners pay too much for their homes because they are not getting the best mortgage financing available in the market.
The mortgage process can be intimidating for homeowners, and some financial institutions don't make the process any easier.
But I’m here to help!
I’m a VERICO Mortgage Advisor and I’m an independent, unbiased, expert, here to help you move into a home you love.
I have access to mortgage products from over forty lenders at my fingertips and I work with you to determine the best product that will fit your immediate financial needs and future goals.
VERICO mortgage specialists are Canada’s Trusted Experts who will be with you through the life of your mortgage.
I save you money by sourcing the best products at the best rates – not only on your first mortgage but through every subsequent renewal. So whether you're buying a home, renewing your mortgage, refinancing, renovating, investing, or consolidating your debts — I’m the VERICO Mortgage Advisor who can help you get the right financing, from the right lender, at the right rate.
Keep it Simple
Keep it simple when buying a houseSpring is here, which means increased activity in the real estate market. If you are thinking of buying a house, keep these simple tips in mind.Decide whether the time is right for you to buy – “If you currently own a house, you should buy and sell at the same time, which will help ensure you don’t sell low and buy high,” explains Chartered Professional Accountant Eli Palachi, a partner with Crowe Soberman LLP in Toronto. “If you are a first-time purchaser, try to buy when you can secure low mortgage rates so that your monthly cash outflow is lower.”Determine what you can afford – “Establish a budget that includes the cost of the new house and then try living with that budget for a while to make sure you won’t become financially strapped and end up house rich and cash poor,” advises Chartered Professional Accountant Albert Yu, a sales representative with RE/MAX Hallmark Realty Ltd. in Toronto. “Mortgage rates are at historically low levels these days. But keep in mind that every one-per-cent increase in interest rates means you can buy 10-per-cent less house.” Yu says your budget should also include other costs, including a rainy day fund that covers three to six months’ worth of expenses, retirement savings and a children’s education fund. Your Chartered Accountant can help you set up a realistic budget and help with decisions on how to finance a house purchase.Don’t forget to factor in the hidden costs – “In addition to the price of the house itself, your other costs include legal fees associated with closing the sale, adjustments for property tax and utilities, the land transfer tax, mortgage fees, house appraisal fees and moving,” says Palachi. “If you are buying a bigger house, you may also have higher insurance costs.”Shop around for the best mortgage rate – “Speak to several banks to see what their rates are,” says Palachi. “It doesn’t hurt to get an idea of what competitive rates are, and banks don’t charge a fee or commission for securing financing. Your CA can also introduce you to mortgage officials at the bank.” If you are going to shop around for rates, Yu cautions against signing several applications that would result in a credit check. “Your credit score will decrease if too many checks are done at once,” he explains.Make the biggest down payment you can afford – “You must pay at least 20 per cent of the purchase price down to avoid a high-ratio mortgage and paying one-time Canada Mortgage and Housing Corporation premiums,” explains Yu. A larger down payment will also lower your monthly payments.
Variable vs Fixed Rates
Variable rate mortgages have historically been the better mortgage option for borrowers in Canada over the past 50 years and yet a little more than a quarter of mortgage borrowers in Canada choose a variable rate mortgage over a fixed rate mortgage. Why is that?Perhaps the biggest reason has to do with the inherent risks that comes with taking a variable rate mortgage. While they can be a great mortgage option it comes with a lot of uncertainty that most borrowers shy away from.If you are considering a variable rate mortgage for yourself there are 4 key features that you need to understand before deciding if it’s right for you.1. The Interest Rate You Pay Is Based On A Formula – When you are quoted a variable interest rate it will be based on a formula. The formula is prime plus or minus a certain percentage. For example consider that you are quoted P-.25% and the prime rate is currently 3.00% then your interest rate is 2.75%.3.00% – 0.25% = 2.75%When you are shopping for a variable rate mortgage you are looking for the deepest discount from prime so P-.80% is better than P-.25%. The formula doesn’t change during the term of your mortgage.2. The Prime Rate Can Fluctuate - What makes a variable rate mortgage vary is the fact that it is based on the prime rate. The prime rate is a rate that is established by the Bank of Canada. The Bank of Canada meets 8 times each calendar year to make policy decisions including what to do about the prime rate. Click here for the schedule of key interest rate announcements.The prime rate is an important monetary tool used by the Bank to curb inflation or encourage spending and growth in the economy. In a nutshell, when economic times are tough the bank keeps the prime rate low to encourage borrowing and spending in the economy. When the economy is running at full capacity the Bank of Canada will increase the prime rate to slow down borrowing and spending.3. Changes To The Prime Rate Mean Changes To Your Mortgage Payment- As the prime rate fluctuates up or down in your variable rate mortgage so do your monthly payments. Since 2009 the prime rate has fluctuated widely between 6.00% down to only 0.50% at it’s lowest point. It is very important to understand this and be prepared for the eventuality that your mortgage payments may increase during the term of your variable rate mortgage. Here is a graph showing the wild fluctuations of the prime rate from 2000 to 2009.4. Conversion- A really important feature about variable rate mortgages is the conversion feature. Conversion means that at any point during the term of your variable rate mortgage you can actually convert into a fixed rate mortgage. This is especially important when we are in an upwards rate market where the prime rate may increase over the long term and you’d like to lock in a fixed rate. Note the fixed rate offered to you will be the then current rate you won’t have the option of selecting the same rates available when you originally arranged your variable rate mortgage.Armed with these 4 points you now know the most defining features about variable rate mortgages.
Broker vs Bank
Today, about 30% of Canadian homeowners arrange their mortgages through mortgage brokers, independent specialists with extensive knowledge of mortgage lenders’ product offerings, their features and benefits, and contacts throughout the lender community to ensure competitive rates.Mortgage Brokers are experts dedicated to finding the right mortgage solution and simplifying the mortgage financing process. The Broker will take the time to understand your individual situation and tailor the best solution from among the hundreds of products available to today’s homebuyers. Brokers complete all the paperwork and keep up-to-date on industry issues and changes that could affect the decision you make about which mortgage solution isright for you.A Mortgage Broker will save you time. Comparison shopping involves going from lender to lender repeating your story, asking the same questions and analyzing the answers. That’s time most people don’t have. On top of that, home financing is highly competitive and each product can be complex, which is why you should have an expert on your side. A Mortgage Broker will also work with you on strategies to manage monthly payments or improve your credit rating.