Brenda Joynson
A little bit of my advice could save you thousands and doesn't cost you a nickel!
Whether you're buying a home for the first time, using the equity in your home for investment or pleasure, or your current mortgage is simply up for renewal, it is important that you are making an educated decision with professional unbiased advice.
Dealing directly with large financial corporations leaves many people feeling a bit uncomfortable. It's hard to know whether a bank is giving advice to serve your best interests or their own. I work with a wide variety of Banks, credits unions and large mortgage companies and it's my job to negotiate the right mortgage. I can help you sort through the options and focus on the lender that best meets your goals. Best of all, in most cases, there is no charge for my services.
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Costs Associated with Buying a Home
If you’re looking to buy your first house or your next house, it’s a good idea to plan ahead and consider all the costs associated with buying.
Your closing costs represent the things you will have to pay for out of your pocket, and the amount of money necessary to finalize the purchase of your new property.
The best time to work through the costs associated with closing your mortgage is before you even start looking for a place to buy. Closing costs should be part of the pre-approval conversation; they are just as important as saving for your downpayment.
Here is a list of the things that will cost you money:
Home Inspection or Appraisal
A home inspection is when you hire a professional to assess the condition of the property to make sure that you won’t be surprised by unexpected issues.
An appraisal is when you hire a professional to compare the value of the property against other properties that have recently sold in the area.
The cost of a home inspection is yours, while the cost of the appraisal can be covered by high-ratio insurance, or sometimes your responsibility depending on your specific circumstances.
Lawyer or Notary Fees
To handle all the legal paperwork, you will be required to hire a real estate lawyer. Chances are, this will be one of your most significant expenses.
Taxes
Depending on which province you live in, and the purchase price of the property you are buying, you might have to pay a property transfer tax or land transfer tax.
Insurance
Before any financial institution lends you money, they will want to see that you already have property/home insurance in place for the purchase.
Unlike property insurance, which is mandatory, you might also consider mortgage insurance, life insurance, or a disability insurance policy that protects you in case of unforeseen events. Not necessary, but worth a conversation.
Moving Expenses
Congratulations, you have a home, now you have to get all your stuff there! Don’t underestimate the cost of moving your stuff.
Utilities
Hooking up new services to a property is more time consuming than costly. However, if you’re moving to a new province or don’t have a history of paying utilities, you might be required to come up with a deposit for services.
So there you have it, this most of the costs associated with buying a new property. However, this list is by no means exhaustive, so if you have any questions about your closing costs, or anything else mortgage-related, contact me anytime, I’d love to hear from you!
The Ins and Outs of Refinancing Your Mortgage
Mortgage refinancing is a financial strategy that allows homeowners in Canada to adjust their existing mortgage terms to better suit their needs.
I.What is Mortgage Refinancing?
Mortgage refinancing refers to the process of replacing your current mortgage with a new one, often with different terms and conditions. This can be done with your existing lender or by switching to a new lender. Homeowners choose to refinance their mortgage for various reasons, including lowering monthly payments, accessing home equity, securing a better interest rate, or changing the mortgage type (from variable to fixed-rate or vice versa).
II. Benefits of Mortgage Refinancing:
Lowering monthly mortgage payments: Refinancing can help reduce your monthly mortgage payments by obtaining a lower interest rate or extending the loan term. Accessing home equity: Refinancing allows homeowners to tap into their home equity for purposes such as home improvements, debt consolidation, or funding other investments. Securing a lower interest rate: If interest rates have dropped since you initially obtained your mortgage, refinancing can help you lock in a more favorable rate. Switching mortgage types: Refinancing provides an opportunity to change from a variable-rate mortgage to a fixed-rate mortgage or vice versa, based on your financial goals and market conditions.
III. The Process of Mortgage Refinancing:
The mortgage refinancing process involves several steps:
Assessing financial goals and needs: Determine your objectives and evaluate how refinancing aligns with your long-term financial plans. Evaluating current mortgage terms and conditions: Review your existing mortgage details, including interest rate, loan term, and penalties for early repayment.
Researching and comparing mortgage lenders and offers: Shop around for different lenders and compare their terms, rates, and fees to find the best refinancing option for your situation.
Gathering required documentation: Prepare the necessary documents, such as income verification, credit history, and property appraisal.
Submitting the mortgage refinance application: Complete the application process, providing all the required information and documentation.
Appraisal and property evaluation: A new appraisal may be required to assess the current value of your property.
Approval and closing the new mortgage: Once approved, review the terms and conditions of the new mortgage and close the refinancing transaction.
Paying off the existing mortgage: The proceeds from the new mortgage are used to pay off the remaining balance of the original mortgage.
IV. Considerations and Potential Costs:
Before proceeding with mortgage refinancing, it's important to consider the following factors:
Applicable penalties and fees: Be aware of any penalties or fees associated with early mortgage repayment and refinancing.
Long-term financial implications: Evaluate the long-term financial impact of refinancing, including the total cost of the new mortgage and its alignment with your financial goals.
Common costs associated with mortgage refinancing include appraisal fees, legal fees, and discharge fees for your current mortgage.
V. Eligibility and Qualifications:
To qualify for mortgage refinancing in Canada, lenders consider factors such as credit history, income stability, property value, and loan-to-value ratio. It's important to meet the lender's eligibility criteria and provide the necessary documentation to support your application. If you face challenges in meeting traditional criteria, alternative options may be available through alternative lenders or specialized mortgage programs.
VI. Working with a Mortgage Professional:
Seeking guidance from a mortgage broker can greatly assist you throughout the mortgage refinancing process. They will provide expert advice, help you navigate the various options available, and negotiate on your behalf to secure the best possible terms and rates.
Mortgage refinancing can be a powerful financial tool for homeowners in Canada. By understanding the process, benefits, considerations, and eligibility criteria, you can make informed decisions and take advantage of the opportunities refinancing offers. However, it's crucial to carefully evaluate your financial goals, assess the costs involved, and work with professionals who can guide you through the process.
With the right strategy and proper planning, mortgage refinancing can help you achieve your financial objectives and improve your overall financial well-being.
Mortgage Options Into Retirement
There’s a chance you read the title to this article and thought “I’m a long way off from retirement”, and that’s okay, chances are you know someone (maybe parents or relatives) who could use this information, feel free to pass it along.
But if you find yourself in the position where you’re thinking about retirement and what options you have with your mortgage, you’ve come to the right place. As an independent mortgage broker, I can provide you with many more options than a traditional bank. You might be closer to retirement than you think, and a good mortgage can certainly help you along the way.
Although it’s ideal to have your mortgage paid off by the time you retire, in today’s economy, that isn’t always possible. More and more Canadians are carrying mortgage debt into retirement, how well they do it relies on the options they have!
Let me outline some options you have:
Standard Mortgage Financing
If you’ve got a steady income, decent credit, and equity in your home, there is no reason you shouldn’t qualify for standard mortgage financing which usually comes at the lowest interest rates and best terms. Even if you’ve already retired, some lenders use pension and retirement income to support your mortgage application.
Reverse Mortgage Financing
A reverse mortgage allows Canadian homeowners 55 years and older to borrow money from their home with no proof of income, no credit check, and no health questions. A reverse mortgage is a fabulous mortgage solution that has helped thousands of older Canadians to enhance their lifestyle.
Home Equity Line of Credit (HELOC)
A line of credit secured to the equity you have in your home is an excellent tool to allow you to access money when you need it, but not pay interest if you don’t. A lot of Canadians like the idea of rolling all their expenses and income into one account.
To figure out which option is best suited to you, contact me directly. Together we can assess your financial situation, put together a mortgage plan, and then see it through.
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