When you purchase a home two of the most important decisions you will have to make is where to secure your financing and what type of financing you will require. Shopping around for financing on your own is time consuming, and you may not be able to access the best funding for your situation. But with the help of a mortgage broker in Brampton, you’ll be able to review your options and get expert advice on the best financing for you.

Our team at Brampton Mortgage Broker has put together this brief and informative article on how to choose the right mortgage broker in Brampton when it comes to finding the right mortgage for your situation. If after reading this article you have questions or you are ready to apply for a mortgage, just reach out to a member of our team and we will help find the best mortgage financing for your situation. Now let’s get int to the article below.

What are the benefits of working with a Mortgage Broker in Brampton?

While financial institutions are out to sell their own mortgage products (whether they are the best choice for you or not), a Mortgage Broker works for you. A Mortgage Broker will assess your situation and then use their network of dozens of lenders to find the mortgage that is right for you.

A good mortgage broker will:

• Help you find the best mortgage that aligns with your goals and financial situation.
• Explain the various financing options to you and answer your questions.
• Help you get preapproved for a mortgage.
• Complete the paperwork for your loan application.
• Review the final documents with you before you sign them.

What to look for when choosing a Mortgage Broker

If you have decided to work with a Mortgage Broker in Brampton, the next step is choosing one to work with. Here are a few tips to keep in mind when selecting a mortgage broker.

• 1. Research potential Mortgage Brokers.

  Start by researching some Mortgage Brokers in Brampton and get as much information as you can about them. Do they seem professional and experienced? Do they have online reviews and customer testimonials? Do they have a website and social media presence?
  You also want to make sure that they are licensed and registered with Financial Services Commission of Ontario’s website.

• 2. Meet them in person or over the phone

  If you have a Mortgage Broker in mind that you are interested in working with, it is best to meet them in person or over the phone. This will help to give you an idea of all the services that they will be able to provide you – both now and in the future. Meeting them in person or over the phone will also allow you to determine if you can build a rapport with them.

• 3. Ask questions

  Take the time to prepare a few important questions for any Mortgage Broker that you are meeting with as this will help you determine if they are a good fit for you. Questions may include:

  • Which lenders do they work with?
  • How does the application process work?
  • How are they compensated?

• 4. Check their references

  You want to work with a mortgage broker that has satisfied clients. If the Mortgage Broker has social media pages and/or a website, you should be able to find client reviews and find out what others are saying about them.
  Choosing the right Mortgage Broker in Brampton can be a daunting process but it can save you a lot of
  time and money in the long run.

Contact me today

If you are trying to decide on a Mortgage Broker in Brampton, we would love the opportunity to earn your business. Just give our team at Brampton Mortgage Broker a call today to make an appointment. We would be happy to share our process with you and answer any questions you may have.

Performing maintenance on your home or completing a home renovation is a great way to add value to your home. Many home renovations are really investments that can result in a significant return when the time comes to sell your home. That being said though, home renovations can be expensive upfront, and you will likely need some kind of financing to complete the renovation. One of the best ways to finance a home renovation is with a home equity loan.

Our team at Brampton Mortgage Broker has put this brief and informative article for you to help you with getting a better understanding of why a home equity loan is a great way to invest in your home. If after reading this article you have any questions or you are ready to apply for a home equity loan, just reach out to a member of our team and will work with you to find the best financing option for your home equity loan. Now let’s get into the article below.

What is a home equity loan?

A home equity loan (sometimes called a second mortgage) is a loan that you take out against the equity in your home. You pay back the loan the same way that you pay your mortgage for the term of the loan, after which time you’ll have the option to renew or to pay off the full amount.

Most lenders will allow you to get a home equity loan in Brampton of up to 80% of the amount of your home equity, which for most homeowners means they will be able to borrow a significant amount of money.

You can calculate the amount of equity you have in your home by subtracting what you owe on your mortgage from what your home is worth today. Depending on how much you want to borrow with your home equity loan in Brampton, you will need to get a home appraisal (this is something that our team at Brampton Mortgage Broker will help you with).

Why should you consider using a home equity loan in Brampton to finance your home renovation?

Using a home equity loan to finance your home renovation has a number of advantages. For starters, this type of loan will usually have a much lower interest rate than other options like credit cards or personal lines of credit.
Secondly, since Brampton home values have been rising dramatically in recent years, you will likely have a lot of equity that you will be able to borrow from, meaning you probably won’t have to worry about not having enough borrowing power to finance the renovation that you want.

And finally, it makes sense to use your home equity because with your home renovation, you will be increasing the value (adding to the equity) of your home.

Are there any drawbacks to getting a home equity loan in Brampton?

While home equity loans have many advantages, it is important to remember that you are using your home as collateral to guarantee the loan. If you are not able to make your payments, you will be putting your home at risk. Therefore, it is very important to work out a budget and make sure that you will be able to handle the payments. Our team at Brampton Mortgage Broker will be able to help you with this.

How can I get a home equity loan?

The best way to get a home equity loan in Brampton is to work with a professional mortgage broker, like our team at Brampton Mortgage Broker. Our team will be able to help you get the best interest rates and work out the most favourable terms.

Contact met today

Are you interested in learning more about how you can use a home equity loan to finance your home renovation and add to the value of your home? If so, give our team at Brampton Mortgage Broker a call today and let’s get started.

If you are struggling with high debt, you may be wondering whether it’s a good idea to consolidate that debt using the equity in your Brampton home. Maybe you even know someone who has done this, but you wonder if that’s the best decision for you.

Before making your decision, it is essential to consider what is involved and the pros and cons of consolidating your debt into your mortgage. Our team at Brampton Mortgage Broker has put this brief article for you to read so you can better understand if you should consolidate your debt with the equity from your home. If you have any questions after reading this article, get in touch with our team so we can help you. Now on to the article below.

What is a debt consolidation mortgage?

A debt consolidation mortgage can be utilized best to consolidate all your debts into one low affordable monthly payment. This is done by leveraging the equity you have in your home to bring all your debts into one mortgage payment. This will allow you to pay off all your debts in full and have the new loan in place at a much lower interest rate and with one lender at much more affordable monthly payments, which will allow you to save hundreds to thousands of dollars. This is because the interest rate you will receive for debt consolidation will be much cheaper than the interest rate on all your other debts, such as credit cards, personal lines of credit, car loans, personal loans, payday loans, etc.

This is where our Brampton Mortgage Broker team can help you get the best out of your debt consolidation mortgage in three easy-step processes. First, we will work with you to understand how much equity you have in your home. Secondly, we will work with you to review your finances to find out how much debt you have outstanding and what needs to be paid off. In the third and final step, we will work with you to secure a debt consolidation mortgage with low affordable monthly payments to pay off all your debts, resulting in huge monthly savings.

So how this works in real-time is as follows; you will need to have enough equity in your home to pay off your debts. Since most mortgage lenders will allow you to use up to 80% of your home equity, this is the maximum amount of equity you will need available.

Taking your home’s value multiplied by 80% minus any mortgage balance will equal the maximum amount of equity you can use to get a debt consolidation mortgage. So here is an example of a debt consolidation we did for a client to give you a real-life example.

Home Value $500,000 * 0.80% = $400,000 – Mortgage Balance remaining $200,000 = $200,000 Maximum amount of equity available for our client.

So, as you can see from the above numbers, our client had $200,000 in available equity for a debt consolidation mortgage, our client only needed to use $135,0000 to pay off all their debts, and that is what we arranged for our client. Just a word to the wise, just because you have access to all the equity in your home, like our client’s example above, doesn’t mean you should use all of it. It is important to remain responsible and only take the amount you need. After all, you will be the one to pay it back.

What are the pros and cons of a debt consolidation mortgage?

Using your home equity to consolidate your debt has pros and cons, and you need to be aware of both before you decide to get a debt consolidation mortgage. Here 3 points our team at Brampton Mortgage Broker came up with each pro and cons to consider when getting a debt consolidation mortgage.

Pros

• You have one monthly payment – instead of having multiple lenders that you’ll have to pay each month. You’ll only have one lender. This is more convenient and helps lessen the chance of missing a payment.
• Lower your interest rate – when you use your home equity to consolidate your debt, typically, you’ll be paying off accounts with higher interest rates, and the interest rate on your mortgage will be much lower. This could save you thousands of dollars.
• It can improve your credit score – As keeping up with your payments becomes more accessible and manageable, your credit score can improve as you pay down your debt consolidation mortgage.

Cons

• It may take you longer to pay off your debts – If your debts are rolled into a 30-year mortgage, they could take a long time to pay them off.
• Your home is collateral – Because your mortgage is a secured loan, you could risk your home if you cannot make the payments.
• Risk of getting into more debt – With your credit cards and other accounts now freed up, you risk racking up more debt. There may be a temptation to rack up more debt. But doing so could put you in a worse position than before. If you decide to get a debt consolidation mortgage, you need to be very disciplined with your spending and avoid going back into debt.

Contact Our Brampton Mortgage Broker Team Today

If you are considering using your home equity to consolidate your debt, you should get in touch with our team at Brampton Mortgage Broker. We can show you your options and help you determine if this is the best course of action for you to consolidate your debts and save money. Call us today to make an appointment.

Working with a Mortgage Broker can be the best decision you make when you are considering purchasing a home and are looking to get approved for a mortgage, or even if you are already a homeowner and are looking to refinance your current mortgage. When it comes to your mortgage financing, there are many advantages to using a mortgage broker that you may not even be aware of. Because of this, our team at Brampton Mortgage Broker decided to put this brief article together to help you give some insight into the benefits of using a Mortgage Broker. Here are the top 10 reasons why working with a Mortgage Broker is in your best interest when getting a mortgage.

1. It saves your time.

Yes, it is true our team at Brampton Mortgage Broker can help you save time when it comes time for you to look for a mortgage. We can look at many different offers from various lenders to see their best offers in a matter of a few minutes. Imagine if you had to do this on your own. You probably wouldn’t know where to start or which lenders to trust. Since our team works with an extensive network of lenders, they can match you with a lender that will be best suited for you once they have correctly assessed your situation, saving you hours of your precious time so you do more of what you enjoy.

2. It saves you money.

On your own, you may not be able to get the best possible interest rate available on the market, but did you know that our team at Brampton Mortgage Brokers will not only shop around on your behalf to help you get the most competitive rate, we can also negotiate for you to get better-than-advertised rates. We specialize in helping our clients obtain low affordable monthly payments so that you can save even more. Yes, our team has the advantage of finding you a mortgage rate that will be able to save you money.

3. It keeps you from getting stressed out.

Mortgage products can be confusing. Not only are there different lenders offering different rates, but there are different types of mortgages with different terms. If you go at it alone, it could become a headache to deal with. Our Brampton Mortgage Broker team has helped hundreds of clients make the mortgage process as relaxed as a walk in the park. We will help you find the best solution for you and help make the process as stress-free as possible.

4. It helps you access lenders you could not access on your own.

Did you know that you will not have access to all the mortgage lenders on the market? This is because some lenders will only work with you if you work with a mortgage broker. Luckily for you, when you work with our team at Brampton Mortgage Broker will have access to many of these lenders and have more choices for your mortgage financing.

5. 5-Star service customized for you.

Some people avoid working with a mortgage broker because they think it will cost them more, but it is essential to know that you pay for what you get. Getting 5-star service doesn’t have to cost you a fortune, especially if we are talking about the most considerable expense you will probably ever have. A mortgage is not something to take lightly. You want to know all the details as much as possible, which is where a Mortgage Broker shines. When working with our team at Brampton Mortgage Broker, you do not need to worry about the mortgage process as it is our primary responsibility. We will make sure everything is moving along in a timely fashion. The service our team at Brampton Mortgage Broker will provide you will be tailored to your needs. So say if you are a busy person, we can take care of everything for you. Or say if you’re one of those people who don’t like to deal with paperwork, we can complete all the paperwork for you. Or, if you are just one of those people who want an easy experience, you can kick back and take it easy. We’ll do all the heavy lifting for you. So, no matter your situation, working with our team at Brampton Mortgage Broker will benefit you greatly. Just read our 5-star Google reviews for yourself and see what our clients have to say after working with us for their mortgage.

6. They can help you get a specialty mortgage.

Because our Brampton Mortgage Broker team works with many different lenders, so we can help you in various circumstances. So, if you have a bad credit score, are self-employed, or are new to Canada, you could have difficulty getting a mortgage from a traditional lender, like a bank. But not to worry, our team can help you access a specialty mortgage using the vast network of alternative and specialty lenders we work with. Our team understands that no particular situation is perfect, and we need to have options beyond the simple solutions provided by the banks. We have helped hundreds of clients who traditional lenders or banks have turned down due to; having bad credit, being self-employed, being new to Canada, etc. It is essential to know that our team is here to help you out. You don’t need to settle for your mortgage being declined. We can find you a specialty mortgage that works for your situation.

7. Brokers are independent.

This is something really important you should know; if you go directly to a lender for your mortgage – such as your bank – they will only offer to sell you their products. This is very biased as you do not have options or have the ability to compare apples with apples. But our team at Brampton Mortgage Broker is independent and can arrange a mortgage for you from any lender, and we are not biased. We prefer the lender that is the best for your situation and addresses your financial needs. We want you to compare apples to apples and know you are getting the best mortgage for your situation.

8. Mortgage brokers must adhere to professional standards.

It is essential to know that no one can just become a Mortgage Broker; it is a process. You must be appropriately licensed and adhere to strict professional and ethical standards. The industry is overseen by governing bodies to help ensure that Mortgage Brokers work in their clients’ best interests. Rest assured, when you work with our team at Brampton Mortgage Broker. You are working with a licensed professional who always adheres to professional and ethical standards and operates in your best interest.

9. Mortgage Brokers have the best understanding of their products.

When you put hours of dedication into your craft, you can develop the knowledge and skills required to handle all situations that come your way. Whether this is your first mortgage or interested in another type of product, such as a Second Mortgage or Refinance, or even a Home Equity Line of Credit (HELOC). Our team at Brampton Mortgage Broker has the best knowledge of the mortgage products you need. Our team will work to match you with the best mortgage financing needed to help with your situation. Over the years, all of our clients have been happy with the mortgage products we have been able to provide them with, and we are confident we can do the same for you.

10. They can act as a coach.

Our team at Brampton Mortgage Broker can act as a coach for you as we help you find the right mortgage product for your situation. Our team will ensure you have all the necessary information and documents and give your complete answers to all your questions you may have so you can feel confident that you’ve made the right choice. Teamwork is necessary when you are trying to accomplish the goal of getting the best mortgage financing for your situation, and our team will ensure we do everything possible to help guide you so you can achieve the best results.

Final Thoughts on Top 10 Benefits of Using a Mortgage Broker

Using a Mortgage Broker will allow you to leverage the skills and knowledge of a trained professional whose job day in and day out is to find the best mortgage financing solution for various situations. It is important to know having the ability to choose options that are in your best interest will allow you to truly make an unbiased decision when it comes to your mortgage financing. Our Brampton Mortgage Broker team prides itself on always doing what is best for you and helping you in any way we can. We are not salesmen; we are service-oriented professionals with one goal in mind: to do the best job possible with your mortgage financing. It is no surprise that we have been able to do this for many years and that we have delighted clients that constantly refer their friends and family to work with us for their mortgage financing. We encourage you to read our Google Review yourself to see for yourself and read about all the experiences they had working with us on their mortgage financing that they have chosen to share. So if you are considering working with a Mortgage Broker for your mortgage, then make sure to get in touch and contact our team at Brampton Mortgage Broker today.

Are you ready to reap the benefits of working with a Brampton Mortgage Broker? Call us today to set up an appointment.

With inflation and rising interest rates, it’s no surprise that many people living in Brampton are struggling with high amounts of consumer debt. If you are one of those individuals who finds themselves in a similar situation, then debt consolidation can be a good idea. Don’t let your debt get out of control, take charge of your case, and leverage a debt consolidation to your advantage by erasing your high-interest debts. If you are wondering how you can do this, then you are in luck, our team at Brampton Mortgage Broker has put together this brief article piece for you, and we will provide insight into the question being, as asked, is debt consolidation? is a good idea If you have questions after giving this a read, please feel free to contact our team so we can answer any questions you may have about debt consolidation. We are always here to help you in any way we possibly can. Now, let’s get into this article.

What is a Debt Consolidation?

In its simplest terms, debt consolidation is when you get one large loan to pay off several smaller loans. With this loan, all your debts will be combined into one single debt, allowing you to get one lower interest rate for all your debts at one manageable payment. Instead of having multiple loans to make payments on, you’ll be able to focus on just one single loan at a much lower interest rate so that you’ll be able to pay off your debt faster and save a lot of money.

The overall concept of debt consolidation will allow you to save money and pay down and pay off your debt faster than you could have imagined. Debts like pay-day loans, personal loans, personal lines of credit, credit cards, student loans, car loans, or any high-interest debts can be converted into a debt consolidation at one monthly payment and one single interest rate rather than a wide range of interest rates. It is important to note that by paying off your smaller debts, you will also help positively impact your credit score by increasing your credit score rating.

Is a Debt Consolidation a Good Idea?

Before we can answer this question, you will need to remember that debt consolidation is a loan like any other loan, and you need to be financially responsible in making payments on time.

Now to answer the question being asked, is debt consolidation a good idea? If done correctly, the answer is yes; debt consolidation is a good idea, as it comes with many positive benefits. These benefits include lower monthly payments, more money saved each month, having your high-interest debts being paid off, increasing your credit score rating, and being better able to manage your overall debt with one payment.

It’s no big secret that having too much debt can cause anyone to become uncomfortable and lead you down a path of debt spiraling out of control. If you are not disciplined with managing your debt, you could find yourself in a worse situation than you started. It is essential to know that you don’t need to feel overwhelmed by the debt you are facing; you need to have a solid debt consolidation strategy to overcome it. In some cases, debt consolidation is a tactic that can be used when facing a serious problem such as bankruptcy or a consumer proposal. We have many years of experience helping hundreds of clients with consolidating their debts, and we can do the same for you. If you are unsure how to do this to your benefit, then you can reach out to our team at Brampton Mortgage Broker, and we can help you create a debt consolidation plan that will work best for you.

How a Mortgage Broker Can Help You with Debt Consolidation

One of the best ways to find a debt consolidation loan is to work with a Mortgage Broker. Luckily for you, our team at Brampton Mortgage Broker has outlined two of the most beneficial options that we can work with you to consolidate your debt. Here are the options below:

Mortgage Refinance Option :

A Mortgage Refinance will allow you to borrow the money you need against your home’s equity to consolidate your debts into one mortgage up to 80% of your home’s appraised value. As long as your credit score is in great shape, you will have access to low-interest rates to consolidate your debts. Furthermore, this option will allow for great savings as you can extend your amortization on your mortgage for up to 30 years and take advantage of extremely low affordable payments. However, it is essential to note that a Mortgage Refinance option will require you to break your current mortgage and get a new one. To see if a Mortgage Refinance is the right option for your debt consolidation, please contact our Brampton Mortgage Broker team to go over all the details surrounding your situation.

Second Mortgage Option :

A Second Mortgage option will allow you to borrow the money you need against your home’s equity to consolidate your debts into a mortgage of up to 85% of your home’s appraised value. Getting a Second Mortgage may be the right financing option if your credit score is not great. This is because, with a Second Mortgage, your credit score does not play a major role in your approval, and even if you have a low or bad credit score, you can still be approved as long as you have the required equity in your property. A Second Mortgage option will allow you to consolidate all your high-interest debts into one low affordable monthly payment. Luckily, you will not be required to break your current mortgage to get a Second Mortgage. You can keep your existing mortgage and get a Second Mortgage for the amount you need to consolidate your high-interest debts. To see if a Second Mortgage option is a suitable solution for your debt consolidation, don’t hesitate to contact our Brampton Mortgage Broker team to go over all the details surrounding your situation.

Advantages and Disadvantages of a Debt Consolidation

Advantages of debt consolidation

With a Debt Consolidation, there are many advantages to look forward to, and some of these include the following:

• All your debts can be managed in one payment at one interest rate
• Being able to get out of debt faster
• Increasing your credit score rating
• Lowering the overall interest rate you are paying on your outstanding debts
• Free up monthly cash flow
• Pay off all your small or large debts and only have one single loan to manage

Disadvantages of Debt Consolidation

With a Debt consolidation, there are also some disadvantages, and here are a few of them:

• Once your credit cards are cleared up, if you are not disciplined, you could be tempted to go back into debt
• If you cannot manage your payments on time, your credit score will be negatively impacted
• A co-signer may be required if your credit score is not up to the level of comfort for the lender
• Your co-signer will become responsible for your debt if you cannot pay
• If your home was used as collateral to secure a loan, then you may risk the chance of losing your home if you are not able to make the payments

Is a Debt Consolidation Right for You?

If you feel that debt consolidation may be the right option for your situation, or you are still unsure about getting a debt consolidation, then feel free to reach out to our team at Brampton Mortgage Broker. We can help properly access your situation, help you better understand your financial picture, and provide you with the best debt consolidation options for your situation. To explore your options, call or apply online today! Our team at Brampton Mortgage Broker has years of experience and many success stories of clients we have helped over the years. You can count on our team to help you in any way possible to provide you with a debt consolidation that you can be satisfied with.

Purchasing a home is one of the best ways that you can start to build wealth, as home values in Brampton have been steadily on the rise over the past several years. Finding a lender who will give you a mortgage can prove challenging if you have bad credit. Not to worry, though; our team at Brampton Mortgage Broker has put together this short and easy-to-read article to help you with some tips you can use to improve your chances of getting a mortgage in Brampton, even if you have bad credit. If you have questions after giving this a read, feel free to reach out and get in touch with our team so we can answer any questions you may have. We are always here to help; now, let’s get into the article.

5 tips you can use to get a mortgage in Brampton with bad credit:

1. When purchasing a home, you must have heard by now that all you will need is a 5% down payment. Although this is true, this will not apply to you if you have bad credit. If you have bad credit, getting a mortgage for a home purchase will require you to save up for a larger down payment. You will need to have a down payment of 20% or even more in some cases if you have really bad credit. If you are unsure exactly how much of a down payment you will need for your situation due to your bad credit, you don’t need to stress out; you can always reach out to our team. We can examine your credit situation in more detail and help determine how much of a down payment you will need. Just remember, having bad credit doesn’t mean you won’t be able to purchase a home. It means you will need to come up with more than just the minimum requirements.

2. It is no secret that the major banks and credit unions will most likely not be willing to give you a mortgage if you have bad credit. This means that you will need to consider alternative mortgage lenders on the market to help get your mortgage approved. To get access to these alternative lenders, you will need to work with a licensed mortgage broker, and our team at Brampton Mortgage Broker is licensed to help find the suitable alternative mortgage lender. These alternative lenders can act as steppingstones helping to give you the time needed to help repair, fix and heal your credit so that you can transition to a major bank or credit union. However, this may take a year or two, depending on how bad your credit situation is. This will allow you ample time to address all your credit issues and get back on track with your credit score once and for all. Our team has helped hundreds of clients, and we can also help you create a plan to address all your credit problems and put you back on the right side of your credit score, where you belong. We know what it takes to help fix bad credit, and we understand how to create a plan that will work for you so we can move your mortgage from an alternative lender to a major bank or credit union.

3. Getting help with a co-signer can help you get a mortgage approved from a major bank or credit union, even with bad credit. Depending on your credit score, you may want to consider getting a co-signer to help improve your chances of getting a mortgage. To strengthen your mortgage approval when you have bad credit, your co-signer will need good to excellent credit and will be responsible for making any payments themselves if you cannot. However, and this is very important to make a note of, if your credit score is really bad, then even with the help of a co-signer, you may not still be able to get approved from a major bank or credit union. But this is where our team can help you understand if a co-signer will work for your situation. We can help determine if adding on a co-signer can help your chances of getting a mortgage with a major bank or credit union. We have years of experience working with clients utilizing co-signers for their mortgage, and we can help make sure the co-signer is the right fit for your situation.

4. Don’t add on more debt. This needs to go without saying and avoid going further into debt. Yes, you are going to get offers from credit card companies to get a new credit card or get an amazing price and deal on a car on a regular basis. This is their business; they want to sell you something, but you must be disciplined. Taking on too much debt can cause a lot of damage to your credit score and is not worth it at the end. Especially if you are in the process of buying a home and are looking to get a mortgage with bad credit, then you need to avoid taking on more debt. You don’t want your credit score getting worse or increasing your debt when you already have bad credit. Instead, you will want to do the opposite and pay off as much of your debt as possible, so you can help increase your credit score. It is important to note that even if you don’t have bad credit, taking on too much debt can cause damage to your credit score, and if you’re not careful, you can end up with bad credit before you know it, and our team has seen it happened to clients one too many times. But this is where we have helped our clients with understanding how to manage debt. If you are struggling with managing your debt, we have tools in place that can help you. Contact us today so our team can help put a plan in place that works for your situation and help clean up your debit and credit.

5. Working with a Mortgage Broker is your best option if you have bad credit. Working with a Mortgage Broker will give you many options given your bad credit situation. Mortgage Brokers work with a wide range of specialist lenders and can help you find the right bad credit lender. But how do you find the right Mortgage Broker to work with? While looking for a mortgage in Brampton, hundreds of clients have chosen to work with our team at Brampton Mortgage Broker and have referred their friends and family to work with us as well. With so many 5-star Google reviews left by our clients, you can read about all the wonderful and amazing experiences our clients have had working with us to help get their mortgage approved. We are always here to help all of our new and returning clients with their mortgage approval, and we are happy to help you with your situation.

How much will a bad credit mortgage in Brampton cost me?

If you are looking to get a mortgage with bad credit, then it is very important to understand that in the beginning, you will be paying higher interest rates than someone with good credit. Unfortunately, that is the reality of the situation, but the extra cost, however, may be well worth it if it helps get you into a home of your own.

Current rates for alternative lenders (if you have a credit score of 550-700) are between 3%-5%, while rates for private lenders (if you have a credit score of less than 600) can range between 6% and 12%.

Final thoughts on Bad Credit Mortgage in Brampton

If you are looking for a bad credit mortgage in Brampton, contact our team at Brampton Mortgage Broker. Our team will help you explore your mortgage options and find the best fit for your situation. To explore your options, call or apply online today! Our team at Brampton Mortgage Broker has years of experience and many success stories of the clients we have helped over the years. You can count on our team to help in any way to get your bad credit mortgage in Brampton.

In recent years, home values in Brampton and the GTA have been going up significantly and has allowed homeowners see the equity in their home build up. Now, with home prices reaching levels never before seen, this maybe a great time for you to extract the cash from your home that was built up from your home. One great way to get access to your home’s equity is through the financing of a second mortgage. A second mortgage can be a powerful financial tool and can benefit you in a number of ways, but first you have to understand exactly what it is and how it can be used.

Luckily for you, our team at Brampton Mortgage Broker has put this short but informative article piece to give you overview of what is a second mortgage, and how you can use it. Now, without any further a do, let’s dive into informative article piece.

What is a second mortgage?

Simply put, a second mortgage is a secured loan against your home’s equity that is taken out behind your current mortgage. Equity is referred to the value of your home minus how much you still owe on your mortgage. You gain equity in two ways: by paying down your mortgage, and as your home increases in value.

In most cases, you will be able to get a second mortgage up to 85% of your home value. It is important to note that you don’t need to break your existing mortgage for you to obtain a second mortgage.

So, to understand how this works, we will use an example to give you a better understanding.

Brampton Home Value $1,000,000 ($1 Million)
Current First Mortgage $400,000

Maximum Second Mortgage that can be obtained 85% of your Homes Value minus the Current Mortgage you hold.

$1,000,00 * 0.85 -$400,000 = $450,000

So based on the above scenario you will be able to get a maximum second mortgage with most lender for up to $450,000. But of course, you may take a lower amount than 85% of your homes value if you don’t require that full amount of money. So, if you need only $100,000 for example, then based on the above scenario, then you will be able to obtain that amount because you will be borrowing well below 85% of your homes value.

In terms of repayment, a second mortgage works similarly to your first mortgage. You make regular monthly or bi-weekly payments for a set term at a predetermined interest rate. At the end of your term, you’ve got the option to either pay off the loan in full or renew it for another term.

How can I use a second mortgage?

The money that you get from a second mortgage may be used in any way that you decide, but since you are borrowing against your home it is ill-advised to use it just to blow it all on a spending spree and rack up even more debt. However, below are three common reasons why most of our clients have obtain a second mortgage with our help over the years:

Consolidating debt:

Second mortgages do have slightly higher interest rates than first mortgages, but the interest rates still are usually much lower than other types of loans such as credit cards, payday loans, or even car loans. This fact makes second mortgages a great tool for consolidating debt. If you find that you’ve gotten in over your head with high-interest consumer debt, a second mortgage can help you lower the amount of interest that you are paying so that you can pay down your principal more quickly.

Home renovations:

Making the right upgrades to your home can increase its value meaning that home renovations are an investment that you can see a return on when its time to sell. Other renovations, such as major repairs may be necessary to prevent further damage that could possibly devalue your home. Using a second mortgage for such renovations and repairs makes sense because of the high amount of money usually needed combined with the low interest rate of this type of loan.

Investment:

Of course, there are other types of investments that you might require cash for as well. If you are starting a business for example, a second mortgage is usually much easier to qualify for than a business loan. Or if you wish to purchase a rental property and need money for a down payment, using a second mortgage can be a great solution.

Contact our team at Brampton Mortgage Broker today!

A second mortgage can be a great option if you are looking for a large and low interest loan. To learn more and see if this is the right solution for you, contact me today.