How to get emergency money with a second mortgage

At first, the idea of a second mortgage might not be tempting. You might be thinking that you already have a mortgage on your home and applying for a second mortgage would mean you would have to pay more in total mortgage payments then you are currently paying. However, this is not the whole picture of what getting a second mortgage is all about. In fact what you are not seeing is, by taking up a second mortgage you would be able access immediate cash for whatever you need or just simply be able to pay off high interest debts immediately. High interest debts such as credit card balances, car loans, pay day loan, personal loan and any other high interest debts that you are paying right now will be eliminated. By taking up a second mortgage you would benefit from being able to make a low monthly repayment at a low interest rate, allowing you to save more money every month. At Brampton Mortgage Broker, we offer you a wide range of flexible second mortgage options that you can choose from. You can discuss your requirements with our team and we can advise you on which plan would be perfect for you. Contact us and schedule an appointment today. We look forward to hearing from you.

 Let’s talk about second mortgage 
Don’t know much about second mortgages? Not to worry, let us fill you in. You should already know that over time as you pay off your primary mortgage, equity builds up on your property. It is an asset of sorts that is directly connected to the market value of your home. You can also increase it by carrying out renovation for your property. The higher your equity value, the more valuable your home is. What a second mortgage does is it allows you to tap into the equity of your home to access money for almost anything you need it for. As you take up a second mortgage, you forfeit a percentage of your home equity (it will be treated as collateral) and as you pay it back, you will get back your equity again. Just like your primary mortgage, you would be paying on a monthly basis. If you are worried about paying high rates of interests, you can rest assure we can help design a plan which is tailored as per your requirements so you can repay your mortgage without facing any type of financial strain. Our team members are always here to help, get in touch today!

Save yourself from any financial crisis during Covid-19 
One of the things we know about life is, that it is very uncertain. Right now, the world is going through a crisis. Covid-19 has halted our lives in our tracks. The economy has taken a severe hit and many industries are closing down. In our neighbouring country, the unemployment rate is at an all-time high. If you are amongst the many who are facing a financial crunch right now, a second mortgage can help you get out of that situation. With a second mortgage, you will get access to quick funds which will help you to pay off your bills, bad loans, your primary mortgage, even emergency medical expenses. You won’t need to worry about being late on your payments and paying extra. Just contact our Brampton Mortgage Broker team today and discuss your financial requirements with our team members. We are well-connected to many well-known mortgage lenders across the region and see to it that you get access to your funds as quickly as possible. We will also take care of any paperwork (which is next to none when getting a second mortgage). Call Brampton Mortgage broker today and schedule an appointment today.

Protect your family’s financial future
Being the sole earning person in a family means you take care of the financial aspects of your household. That’s a lot of responsibilities and if somehow you lose your job, if you have been laid off that can spell a financial disaster. Taking up a second mortgage can support you financially in this situation until you get back up on your feet again. You can use the loan amount for regular home expenses while you look for another job.

Here are some more scenarios where applying for a second mortgage is a perfect choice:

  • You check your mortgage balance and almost 2- years are remaining but you want to take a break. However, that would mean that you would have to pay a penalty amount. You also may lose the low mortgage rate you have. Taking up a second mortgage can resolve this issue.
  • You have missed some of your mortgage payments and now need a lump sum amount to pay off the balance and save your home from foreclosure.
  • You suddenly have a family emergency and need quick funds.
  • Your bank won’t give you more money because you have already qualified for the maximum mortgage amount.
  • You have a bad credit score or history of late or missed payments.

A second mortgage can help you with debt consolidation as well 
If you’re making multiple payments of debit card bills, loans, also your primary mortgage, you must have noticed that on all the payments are made on different interest rates. Some of them, generally credit cards are as high as 15-21%. This way, you are spending way more than you need to and by the end of the first week of the month, a large chunk of your paycheque may be gone. Do you really want to continue with that? Well, if you apply for a second mortgage, you won’t have to. You can consolidate all your debts and loans under a second mortgage and re-pay for everything by paying once a month at a low-interest rate. You can pay off the full balance amount in no time. Also, you will be saving on your expenses and you can use that money to start a savings account or invest it on anything, the choice is entirely up to you. For further details, get in touch with us.

What are the qualification criteria for a second mortgage? 
Before you can apply for a second mortgage, there are some small things that we need to check before we can go ahead with the transaction. Nothing serious, this only helps in a seamless transaction of the entire process. Have a look at the following points to have a clear understanding of the details you have to provide for a second mortgage

  • You will have to provide pay stubs and bank statements. This is to check that if you will be able to pay off your second mortgage.
  • We will carry out a credit score check. (A high credit score can mean a low-interest rate)
  • We will ask you for a listing of the equity of your property. If you have more equity, the higher the chances of you being qualified for a second mortgage.
  • You will have to present proof that your property is worth the amount you want to claim. (This is done by having an appraisal done on your property, not to worry we will order the appraisal for you)

Once you provide us with all the necessary details, we will start with the paperwork and you will be one step closer to getting that second mortgage. Based on the information you would provide, further queries can be raised.

How much would be the mortgage fee?
This would depend on your primary mortgage balance amount, your credit score and a range of other factors. Some fees that are included are the legal fees, appraisal fees, title search fees, and insurance fees. The rate of interest would either be a fixed or a variable rate depending on the plan you are offered by one of our second mortgage lender. Rest assured though, we will offer you one of the best quotes available in the present market. We advise you to keep a high credit score to get a minimum rate of interest. If you have any queries, you can call us right now or book an appointment with us.

How much can I borrow?
As the second mortgage amount depends on the equity in your property, it is generally around 80% of your equity. Let’s take an example to have a better idea. If the market value of your property is $500,000 and your primary mortgage balance amount id $325,000 then your second mortgage can be up to $75,000 depending on your credit score and other factors. That would include questions such as if you are able to make regular payments for your primary mortgage.

Improve your credit score
You must be wondering how taking up a second mortgage can improve your credit score. Let us answer that question. After you get your second mortgage amount, you can clear off all your dues and loans using the lump sum cash. You will be able to make consistent re-payments as well which will eventually help you improve your credit scores. Better credit scores mean, if you are thinking of taking up another loan in the near future, you would be eligible for low-interest rates which makes applying for a second mortgage a sensible choice.

So what are you still waiting for? Contact Brampton Mortgage Broker and apply for a second mortgage today! Take that first step to get yourself out dues and debts. Call us!

Should you refinance your Mortgage during COVID -19 Pandemic

Should you refinance your Mortgage during COVID -19 Pandemic?

Whenever there is a global issue, be it a disease outbreak or war, it is never good for the global economy and we are seeing the same effect with the outbreak of the COVID-19 pandemic. Life as we know it has come to halt. Most to all business offices are closed, complete nations are under lockdown, which only means that many businesses are down and could be facing financial troubles. Many companies have laid off their employees and some have shut down altogether. 

But how does someone still paying a monthly mortgage make sense of the economy and their finances during this pandemic? Is it better to renew their mortgage or opt to refinance during these times? Not to worry, this is where a mortgage broker can help make sure you make the best choice for your situation. Read on know why, or contact Brampton Mortgage Broker. Our team members will be happy to assist you.

 A summary of mortgage renewal

As you take on a mortgage when you purchase a property, your plan is to pay off the mortgage before the end of the term. However, not everything happens according to plan. Generally, over the period the mortgage term, there might be other financial needs you might have to cater to which may lead to late payments or no payment for some months. Eventually, the missed payment will need to be paid in full before the end of the term, along with the regular scheduled payments to bring your mortgage up to date. If you are having a hard time making payments, then it is best to make sure to contact your mortgage lender or mortgage broker whenever you feel you are unable to make your regularly scheduled mortgage payment. This will allow you to work out a solution and payment plan to bring your mortgage payments up to date. 

When you mortgage is at the end of the term, your mortgage lender will send you a renewal letter by mail, letting you that your mortgage is up for renewal and a new offer is available for you. This mortgage renewal offer will contain the following in information:

  • Balance mortgage loan amount at the renewal date
  • Rate of interest for the premium
  • The term
  • Frequency of payments
  • Fees that may apply

The mail will generally be sent 21 days in advance or even earlier so you have the time to consider looking at your options before you sign the mortgage renewal.

Now, in a COVID-19 free world, you would think about terminating the contract if you are not happy with your lender and you want to have a look in the market so you can take advantage of a better mortgage rate and terms. Even then, first you would have to apply all over again and make sure you are financially capable to take on the new mortgage. That means you will need to show proof of income and repayment history and go through the entire approval process all over again. At present, most of the businesses are closed and if you are laid off then the choice of looking for a new mortgage lender is completely out. Not to worry you can always contact Brampton Mortgage Broker, we have many different types of financing options available and our team members will be happy to assist you if you choose to refinance your mortgage and switch lenders.

However, if you don’t want to go through the mortgage approval process all over again, you may be able to renew your mortgage and renegotiate the terms and conditions with respect to the new contract with your current lender. 

  • Check if you can increase your premium payments so you can close your mortgage loan early
  • Think if you have any financial goals in the near future that may affect your mortgage payments

You can have a discussion with your broker beforehand. If you are happy with the old set of terms then you just have to sign the form and send it back and you will be set for another term.

You can also renew your mortgage early

Prior to COVID-19, the real estate industry was doing well with about a 27% increase in sales compared to 2019. It has almost come to a stalemate now. The situation speaks for itself, it is not a good time to go out in the market looking for a new lender. So you might want to renew your current mortgage.

Now if you are about to take on a mortgage, then you should know that some lenders offer an early renewal clause in the mortgage loan agreement. If you opt for this, at the end of a contract, your mortgage loan term will automatically renew at the same interest rate.

The advantage that you will get is, you won’t have to worry about any new clauses or new interest rates. You will be paying your monthly premiums like you used to, till the end of the second term. Also, when mortgage interest rates will rise, you will still payback at the same interest. The downside is, you will be locked in the same interest rate and cannot negotiate for something less if the market produces more favourable rates, you are stuck.

The CMHC COVID-19 mortgage payment deferral plan

If you have already signed your mortgage renewal plan but still struggling to pay your mortgage because of the present situation, the can also have a look at the mortgage payment deferral introduced by the CMHC. The plan allows you to pause your mortgage payment for a while for a specified amount of time. The interest amount is not cancelled and you will gave have to make the payments in full at a later time. You can find out more about this plan by visiting the CMHC website or getting in touch with us at Brampton Mortgage Broker. 

What to expect during a Mortgage Renewal?

What to expect during a Mortgage Renewal?

When you are applying for a mortgage on your house, chances are you are not thinking about renewing it but rather how can you quickly move through the process and get it approved. Like most Canadians you would probably want to pay your mortgage within the stipulated time and take complete ownership of your house. However, this may not be possible as life may alter your financial plans, so creating and having a mortgage renewal plans in place makes the most sense. A mortgage renewal plan can look at renewing the contract for an extended-term so you can pay back your balance mortgage amount and also assess future financial goals. Creating a mortgage renewal plan is a very easy process and Brampton Mortgage Broker can help you with obtaining a successful mortgage renewal process. Our team of professional mortgage brokers can help you with all details of the process. Just give us a call and discuss your requirements with us.

 What is mortgage renewal?

A mortgage renewal is simply an extension to your current mortgage with the current lender. At the end of your mortgage term, if you have an outstanding mortgage balance remaining you will need to pay it off, a mortgage renewal allows you to extend the contract term and gives you the option to pay off the balance amount at the end of the new renewal date.

So if you are opting to sign a mortgage renewal form, let us tell you that it is an excellent opportunity for you to renegotiate the terms of the contract with the current lender. This can mean that you can negotiate your premium interest rates, the term period and much more while renewing your mortgage. 

Also, if you have some plans in the future which would require some funds, you can also look at a mortgage refinance so you can gain access to the money you require. It gives you the flexibility to pay off your mortgage the best way you can without facing any financial constraints. Also, if you are planning to switch lenders, this is the perfect to time to exercise that option, as the renewal date allows you to switch lenders with incurring any hefty penalty and other lenders may be able to offer you more favourable rates and terms than the current lender you are with. It is always best to check with our team to see if switching lenders at the renewal date is really the best option for you.

The mortgage renewal statement

At the end of your present contract, your mortgage lender will send you the mortgage renewal offer in the mail. This generally happens around 21 days before the end of the term or even a few months prior. The renewal statement will have the same type of information that is in your present mortgage agreement.

  • The balance amount at the renewal date
  • The interest rate
  • Payment frequency
  • The term
  • Charges that may apply

The mortgage renewal offer would also mention that the interest rate offered in the renewal statement only be in effect after the current term is over.

Consider them carefully before acknowledging it and signing off on the dotted line. If you have any queries, feel free to contact Brampton Mortgage Broker. We will be more than glad to resolve them.

What should you consider before applying for mortgage renewal?

It is always better to think a bit about your future financial plans before you apply for mortgage renewal. Of course, renewing the mortgage contract does mean that you won’t have to run around looking for a new mortgage broker or lender and supply the documents all over again. Although this may does sound like an easy choice, however at the same time, you will be paying the same premiums where you could’ve paid less. Here’s a list of things to consider before you sign off on your mortgage renewal. 

  • Do you think that you can completely pay back your mortgage by the end of the term?

If you think you can then consider pre-payment penalties that go with variable and fixes rate mortgage rates

  • Do you have the budget to increase your mortgage payments?

If yes, the review monthly pre-payment options in terms and conditions

  • Will you be receiving any bonuses or inheritances which you can contribute towards the mortgage?

If yes, have a look at lump sum pre-payment options

  • Are you happy with your present mortgage lender?

If not, then look for better options in the market where you can find better interest rates

  • Would you be selling or moving home in the next 5 years?

If you are planning to do so, then consider a portable new mortgage plan.

Think about mortgage insurance as well

If you’re sticking with your current mortgage lender, think about mortgage insurance if you don’t have it already. Mortgage insurance safeguards you from penalty payments if you are not able to pay your monthly premiums. If you are facing a financial crisis, the insurance company will pay the mortgage premium on your behalf. Mortgage insurance can also play a role in lowering the premium interest rate and extending the amortization period.

Early mortgage renewal options

Some mortgage plans come with an early renewal option. The benefit to you is that you are locked at a certain interest rate for monthly premiums till the end of a term and you are safeguarded from rate increases. Also you may be able terminate your mortgage contract beforehand if you are not happy with the lender.

Make sure to carefully consider all aspects of your mortgage renewal and make sure you are prepared before you sign on the dotted line. For further details, contact Brampton Mortgage Broker.

 

Top 5 Great ways to save thousands of dollars

Top 5 Great ways to save thousands of dollars and increase your cash flow with the help of mortgage broker

Hire the right mortgage broker to make the right financial decision.The mortgage market is vast and can be extremely confusing, challenging and difficult to understand. Choosing the right mortgage in a sea of mortgage plans can be overwhelming and exhausting. That is why hiring a professional and fully qualified mortgage broker is essential. A qualified broker will be able to offer valuable and quality advice regarding a variety of mortgage plans. Whether you are looking for a private mortgage plan to help you buy your new home or refinance your current home or are looking to renovate or even just consolidate debt so you can better manage your finances; you can rely on our broker to help. 

Our mortgage broker will play the role of a mediator between the borrower and the lender. We will help you find a lender who will provide you a mortgage plan that caters to your financial needs at a low interest rate and affordable monthly payments. 

Our mortgage broker will always have your best interest in mind, and work towards getting you the best deal possible and help you save money in the long run. For more details, get in touch with our team now.

Get access to the best lenders in the market

Our professional mortgage broker has many years of experience in this line of business. We are familiar and work closely with the best lenders in the market. Our team is well versed about the market, the interest rates and more. When you hire us as your mortgage broker, you can rest assured that you are hiring the best. 

We will help you find the right lender to suit your financial needs. Our team will thoroughly read all the clauses mentioned in the lenders agreement and help you identify any hidden clauses that they may have. We will explain the plan in detail and help you make a wise and informed decision. Get in touch with us now to book an appointment with our trusted mortgage broker.

Reducing your financial burden

Our team understands that each of our customers have dreams and desires to achieve their financial goal, and we work hard to turn your dreams into reality. Whether it is owning a home, paying off debts, or getting your finances in order and unlocking savings, we have got you covered. Our experts offer a range of mortgage solutions at affordable and great prices. You can rely on us to offer second mortgages, mortgage refinancing, debt consolidation and much more. We also specialize in offering mortgages for individuals with bad credit score. All you have to do is discuss your needs with us and we will do the rest. For more information, please speak to our professional brokers today. 

Self-employed mortgages

More often than not self-employed individuals find it difficult to secure mortgages due to various reasons such as no steady income, low credit score, etc. Our professional mortgage broker is specialized in offering self-employed mortgage solutions. No matter what your financial need is, we have got a mortgage plan for you. Call our experts now.

Mortgage refinancing

Refinancing a mortgage refers to paying off your current loans and replacing it with a new one. You can rely on us to help you with mortgage refinancing solutions. Mortgage refinancing will help you obtain a new loan at a lower interest rate and will also help you shorten the term of your mortgage. 

We offer a wide range of mortgage refinancing solutions, our services will help you reduce your monthly payments, lower your interest rate, and even change mortgage plan from an adjustable to a fixed-rate mortgage. For more information, call our experts now. We will be happy to help you.

Debt consolidation

Having multiple debts and mortgage plans can be extremely stressful and difficult to manage. Our team offers debt consolidation solutions. A debt consolidation helps you combine all your debts into one. This helps you concentrate on just one loan as opposed to juggling between multiple loans. 

A debt consolidation can help you consolidate all your finances, including credit card payments, car loan payments and much more. It will help you keep a track of your loan and plan your finances accordingly. It can also help you save money by avoiding paying steep interest rates which result in high monthly payments.

Our debt consolidation will help you manage your finances easily. In addition to debt consolidation, we also offer rental property mortgage, bad credit mortgage, home equity line of credit, commercial and private mortgage plans. We will assist you every step of the way. Speak to us now to know more about our services. 

If you are looking for a professional mortgage broker to offer valuable advice regarding mortgage plans or need guidance to choose the right plan, please get in touch with our mortgage broker today. 

Why you should use a mortgage broker to get a private mortgage

Why you should use a mortgage broker to get a private mortgage when you have bad credit?

A private mortgage can be a great option if you have been denied a mortgage due to your bad credit, it is always best to hire a mortgage broker to know what your options are. A mortgage broker will have all the necessary knowledge and experience to help you source the best mortgage plan even with your bad credit score and history. 

The mortgage market can be challenging and difficult to understand, more often than not, most lenders are hesitant to offer mortgage plans to individuals with bad credit score and history. As mortgage brokers, we are able to find clients mortgage solutions to their bad credit from the best private mortgage lenders in the market. Our team specializes in offering private mortgage solutions to individuals with bad credit score. We understand the impact and complication a denial of a mortgage can put your dreams. That is why our expert mortgage brokers work with you to provide you the best mortgage options for your bad credit situation. For more information about our services or to book an appointment to meet our mortgage brokers, please call us now.

Helping you with all your mortgage requirements

We have years of experience in this line of business and understand that it can be extremely difficult and challenging to find a lender to provide a mortgage plan under such circumstances. Our mortgage brokers are professional and fully qualified; we always aim to make it easier for individuals to find mortgage plans regardless of their credit score. All our services are made help our wide range of clients all while having an enjoyable and stress-free experience. Get in touch with us now for more details. 

Professional mortgage brokers

Our qualified and professional brokers specialize in non-conforming lending policies. We are renowned for helping borrowers with bad scores. Whether you need a mortgage plan to repair your home, renovate it or consolidate debt, we have got you covered. All you have to do is discuss your requirements with us and we will do the rest. Over the years we have helped hundreds of individuals fulfill their dreams by sourcing the perfect mortgage plans. Contact us now, we will be happy to help. 

Bad credit mortgage broker

If you have bad credit and have applied to get a mortgage, you have most likely have suffered the humiliation of rejection. It is no secret a bad credit score can make it extremely difficult and next to impossible to find and source a good mortgage plan. Even though there may be lenders who offer mortgage plans with bad credit score they are likely to charge a heavy interest rate. Not to worry, our team of professional brokers understands the challenges you face while trying to get a mortgage with bad credit and, we are here to help you with all aspects of your mortgage plan and find you a suitable private mortgage that works for you. 

In addition to helping find the perfect mortgage plan, we will also advice you on how you can get your financial situation back on track. Speak to a member of our team of mortgage brokers today. 

Simplifying mortgage plans for you

The choices that the mortgage market offers can be downright overwhelming and even confusing, but not to worry , when you work with us our bad credit mortgage brokers make things easier for you. We can help you even if you have experienced financial difficulties in the past or are currently experiencing financial difficulties, we will work to find the right mortgage plan for you. Over the years we have developed trusted relationship with a number of mortgage lenders who specialize in mortgage plans for clients with bad credit. We strive to offer a mortgage product tailored to meet your requirements and needs.

You can also rely on us to help you with finding and sort of the correct documentation you require to get your financing process started. We also offer ongoing customer support throughout the mortgage process, so you can feel assured your questions any concerns you have are addressed right away. Our relationship is not limited to the purchase of a mortgage plan, we will guide you on any mortgage related issues that you may have in the future. We can also provide you advice on how you can improve your credit score. In addition to this, we also offer mortgage refinancing, debt consolidation and much more.

How can one improve their bad credit score?

  • Avoid applying for new credit
  • Pay off your debts in full
  • Spend your income wisely
  • Review your accounts weekly and monthly basis
  • Use your credit wisely, by only using what you can pay back
  • Be patient and make your payments on time without fail

Fulfill your dreams

All of us dream of having our own home a space that we can call ours and share it with our family and dear ones. Unfortunately a bad credit score can ruin our dreams. That is why it is important to take proper care of your credit score and history and repair it so you can avoid any kind of financing disappointments.

But nonetheless, we understand not everyone is perfect and your credit score needs time to heal and repair. That is why we are able to offer quality and reliable private mortgage solutions for individuals with bad credit scores and history, so we can help in that process. We work closely with a number of mortgage lenders and can help you find an ideal mortgage plan even if you have a bad credit score.

Over the years our team has created a fantastic reputation for providing only quality services at all times. For more information, please get in touch with our professional mortgage brokers now. We will be happy to help you with all your requirements including bad credit and private mortgage needs.

Are you looking for a private mortgage to finance your home repairs, renovations or even consolidate debt? Look no further and get in touch with our knowledgeable and professional mortgage brokers now.

What are the requirements for a private mortgage?

Many Canadians have found it difficult to obtain a mortgage through a bank or other traditional mortgage lender. Whether due to high credit card debt, negative items reported on their credit report, a consumer proposal, self-employment income, or another reason that has led to a mortgage decline it no wonder why many Canadians are seeking a different path to home financing. 

Private mortgages are often the best choice for those who need alternative financing for their home purchase or refinance. 

what is a private mortgage lender? 

A private mortgage lender is an individual, group of individual investors, or mortgage investment corporation that offers loans to purchase or refinance a house, even if you do not meet the strict qualification guidelines of banks or traditional mortgage lenders. Although private mortgages have a higher interest rate, they also offer a great opportunity for homeowners who do not qualify for a loan through traditional means or for current homeowners who need to refinance their home to cover the cost of renovations or other expenses.

Documentation requirements

Private mortgage lenders will look at your financial situation differently than traditional mortgage lenders. For instance, the first consideration may be whether you have a down payment to purchase the home. Typically, you will need documentation that you have at least 20% of the value of the home available at the minimum as a down payment before being considered for a private mortgage. 

Private mortgage lenders will also consider your credit report, but they each use different criteria to determine your eligibility. For instance, most will look carefully at your pay stubs and monthly expenses to determine if you can afford the home you seek to purchase without defaulting on the loan. However, some private lenders will pay closer attention to other factors, such as income tax returns, and the type and value of the property you would like to purchase, and an exist strategy. The lender will require documentation that your financial status meets its unique criteria when evaluating whether to finance a home for you. 

Unlike traditional mortgages, there is little regulation on private mortgages. The terms of a private mortgage agreement are different for every lender, and some of those terms may have unexpected obligations and may cost you much more than expected. Private mortgage lenders are aware that most people who use their services have some kind of financial difficulty, so there it is important to partner with a reputable mortgage broker to help you find the right private lender. 

If you are interested in exploring options for a private mortgage, you will need a mortgage broker who is knowledge about which private lenders are reputable in order to protect your assets. Contact me today!

 

Is it better to get a mortgage at the bank or with a Brampton Mortgage broker?

It’s time to buy a home and you are completely lost when it comes to choosing the appropriate financing options for your upcoming mortgage. When it comes to finding the right mortgage, simply going to your bank is an easy option – but it may not be the best. 

Utilizing a mortgage broker in Brampton may be more feasible for your new homes mortgage. 

How Does a Mortgage Bank Work?

Mortgage financing banks have loan officers, underwriters and a whole slew of other team members working for them. They usually offer a set of loan types to specific customers based on qualifying factors and they complete your entire loan through their bank. This sounds great, right? For most, it is! 

There are many Pros to using a mortgaging financial institution like quick approval, quick processing and closing (usually within 30 days), and a more personable experience. If you are in the market for that sort of thing, a bank loan may be the best option for you. 

Although, there are some downsides to securing a bank loan. With economical shifts and downtrends, it is becoming more and more difficult for the average “Joe” to secure a good-rate mortgage loan. Credit scores, work history, bank statements, spending reports, criminal history, and so much more can actually keep a more-than-deserving citizen from securing a home loan. 

How Does a Mortgage Broker work?

Mortgage brokers have a lot more freedom and flexibility than your typical bank loan officer. They don’t work for any specific bank. This means they can assist you with the shop-around process to find the best possible loan for your situation. 

There are a vast number of pros to using a mortgage broker like taking advantage of the flexibility they offer with a multitude of different loan packages. Many banks offer just a set few to specific customers. Because a mortgage broker doesn’t work for any specific bank, they get to shop around wholesale mortgage financiers for the best possible deal. You simply can’t go wrong with more options. 

Mortgage brokers in Brampton also do the negotiating for you. Whereas you may not know what to negotiate or when to negotiate, they know their market like the back of their hand and you can rest assured they are getting you the most bang for your buck. 

If you want to get the best deal you can on a mortgage, then working with a mortgage broker in Brampton is almost always your best bet. Contact me today to set up an appointment. 

How to Consolidate Debt with Poor Credit?

We hear the words “consolidated debt” all the time in commercials, radio advertisements, and even in digital marketing ads. There are so many people living with massive mountains of debt to their name and with interest rates growing exponentially each year, it can become difficult to even manage your debt. So before you decide to refinance your home, purchase a rental or investment property, purchase a vehicle, or other large purchase, it is always good practice to check your credit and maintain it. 

Things can show up from years ago that you thought were settled and taken care of. Been divorced? Your ex-spouse may have filed bankruptcy and those creditors don’t care who shows responsibility for the debt in the divorce decree. It is now your debt and your burden to bear. 

Consolidating your debt is a great way to increase your credit score quickly. This is because it shows many past accounts paid in full and just one (usually revolving) credit account on your credit. This is appealing to most lenders when it comes to getting a mortgage. 

So what if you already own a home? We have some great ways to consolidate your debt by leveraging your home and your home equity. 

Take Out a Second Mortgage

 A second mortgage is when you leverage the current equity you have in your home. In other words, if your home is $500,000 and you have already paid $300,000, you have roughly what you paid in equity. Don’t forget to take into consideration the market fluctuations and value in your neighborhood. This will affect how much equity you have as well as the starting interest rate you agreed upon in your first mortgage. 

People typically will take out a second mortgage to pay off other larger debt, purchase something really big (maybe an investment property), or make renovations on their current home. The bank is essentially giving you a second loan on the equity you have in your home and charging you interest on that as well as leveraging your home as collateral. Be sure to decide carefully with this choice because your home could be at risk if you are not responsible enough to pay the second mortgage. 

Home Equity Lines of Credit (HELOCs)

A HELOC is very similar to a home equity loan and a second mortgage in that it’s directly based on the equity you have in your home. The biggest difference is that a home equity loan gives you the entire loan in a lump sum so the interest rate is usually a fixed rate, whereas, a HELOC is a line of credit on the equity you have in your home. This means that it isn’t given to you in a lump sum rather it is taken out as you need it and the interest rate is directly impacted by the amount of debt you hold on the line of credit. 

HELOCs are a safer way to leverage your home equity for debts or renovations to your home. They can also be utilized for adding additions to your home or repairs to your home from emergencies like flooding or smoke damage.

Many people get HELOCs to pay for renovations and additions to their home, student loans, credit card debt consolidation, medical bills, and financial emergencies. Overall, a HELOC is a great way for current homeowners to consolidate their debt. 

Refinancing Your Home

Another option you have to consolidate your debt is refinancing your home. You may be asking yourself how this would even be possible. Typically people refinance their home just to save on the interest rate. What they don’t know, is there is more to the story than that. 

When you refinance your home, you use the equity you already have in your home and the difference of the lower interest rate to pay off other non-mortgage debt. Then you pay your lower mortgage rate. 

Be sure to account for closing costs on the refinance loan, and budget it into the mortgage so you don’t have any out pocket cost on closing. 

Let’s get started now! Contact Brampton Mortgage Broker today!

If you would like to learn more about how you can save money and get out of debt with a consolidation loan, contact me today for a meeting. 

How to Refinance Your Mortgage with Bad Credit?

Did you know carrying too much debt can lead to a poor credit score rating? Yes, it is true. If you are carrying too much debt your credit score will be impacted greatly. Especially, if you maintain high balances on your outstanding debts. Having your debt utilization close to 100 percent or over of the limit you have on your outstanding debt will result in a low credit rating. 

So if you are drowning in debt, then consolidating your debt with a mortgage refinancing will help increase your credit score rating and provide overall savings in your monthly payments. But a common question as by clients is; how can you refinance your mortgage if you have bad credit? The simple answer is that it can be done, but there are a few things you need to understand first. 

What is a mortgage refinance?

Refinancing your mortgage simply means breaking your first mortgage and then getting a new one. When a mortgage refinance is done for the purpose of debt consolidation, the new mortgage will be for the amount still owing on your home, plus the amount of debt that you are paying off with your mortgage. Technically, your total debt does not go down when you consolidate with a mortgage refinance but the amount of interest you have to pay does, which results in lower monthly payments and monthly savings. This will help you to be able to pay off your debt more quickly, which in turn will help to repair your credit. 

How much debt can I consolidate with a mortgage refinance?

That depends on how much equity you have in your home. Your home equity is the value of your home minus how much you owe on it. Most lenders will allow you to use up to 80% of your homes appraised value when you refinance. That means if your home is worth $500,000 and you still owe $200,000, you will be able to pay off up to $160,000 with a mortgage refinance.  However it 80% is not enough to help with your refinance amount then we have access to special lenders who are able to go up to 85% and even 90% of your homes appraised value. Even if that doesn’t work for you then we can look at a customizable refinance plan for you to help with consolidating your debt.

Are there any drawbacks to this? 

Before you decide to pay off debt with a mortgage refinance, it is important to understand that you are guaranteeing the loan with the equity in your home. That means, if you become unable to make the payments, you risk losing your house and putting yourself in further financial stress. 

If however, you can commit to making regular payments (and not taking on new debt), not only will you get out of debt faster, but you’ll be repairing your credit at the same time. There is risk – but only you can always discuss with us to understand if it is worth the risk. 

How can I refinance my mortgage if I have bad credit?

The truth is that with a traditional lender like a bank or a credit union, you may not be able to. But as a Mortgage Broker in Brampton, I have access to many reputable alternative lenders that specialize in helping those with bad credit. 

If you are ready to take control of your credit, getting a mortgage refinance may be the way to do that. Call me today to set up an appointment. 

How Home equity line of credit works in Brampton?

A home equity line of credit, which is also referred to as a HELOC is a kind of mortgage that uses an individual home as collateral and allows them to borrow the equity in there in a form of a line of credit.

A home equity line of credit works similar to revolving loans such as a personal line of credit or a credit card but instead without the high-interest rates that are charged with credit cards and personal lines of credit, a home equity line of credit offers you a much lower interest rate.

Unlike other loans that offer a one-time lump sum amount immediately, a HELOC allows you to borrow in a way you see fit. That means you want in or as little as you want in one or many transactions. It can be done in one day or over a course of a few months to even a few years. Because you are using your home’s equity as collateral for borrowing money, you are able to get access money in a fast and easy process. There is no need to re-apply over again, simply borrow what you need and pay it back and then borrow again and repeat. It’s really that simple.

Financial solutions

Our team understands that your home is one of your most prized possessions and a valuable asset, and to your benefit, your home can be used to get a home equity line of credit. This amount can be used to fund your child’s education, undertake renovations to your existing home or office, pay medical bills and much more. All you have to do is discuss your needs with us and our team will provide you a suitable solution. 

Lower interest rates 

An important benefit of choosing a home equity line of credit is that the interest rates are lower than other types of loans such as private mortgages or second mortgages. Since the amount of the HELOC is provided to you over a period of time, you can repay the amount in a time frame that is suitable for you.

 

Uses of a home equity line of credit

  • Your home equity line of credit can be used for an array for purposes including renovating your existing home, undertaking repairs, painting and much more.
  • If you have an unexpected medical bill, this can help you pay for hospitalization, aftercare and more. 
  • If you have lost your job and need to provide for your family HELOC can be the perfect solution.
  • This amount can be used to fund your child’s higher education.

Are you looking for a home equity line of credit? Get in touch with us now. 

Our team of experts offers home equity line of credit on a regular basis to homeowners and we can help you get to access your home’s equity with a simple approval process. All you need to do is get in touch with us now, we serve homeowners across Brampton.