Top reasons why you should get a second mortgage in 2021

Many people cringe when they hear Second Mortgage. There is no need to avoid Second Mortgages as they have their place in the important world of mortgages. When used correctly, Second Mortgages have many benefits. Let’s take a look at Second Mortgages and see if they are an option for you.

What is a Second Mortgage?

A second mortgage, also nicknamed a piggyback mortgage, is when you borrow against the value of your home. That means you use home equity. You still need to apply for this loan, just like you did for your original mortgage. These Second mortgages are very helpful when you use them to pay off debt, do major home renovations or pay education costs.

Second Mortgages Come in Different Forms

  • Line of Credit: a second mortgage that borrows money from a line of credit. You can take out money if you want to, but you don’t have to take out money. You have the option. There is a maximum borrowing limit, where you can borrow and repay up to that limit.
  • Lump-Sum: this second mortgage is a standard type where a home equity loan is given in a one-time lump sum of money. You use it for whatever you need and repay the loan over a set time with monthly payments.

Why A Second Mortgage

Most people use a second mortgage to pay off financial obligations, such as other loans and high-interest debts, tuition, fund home renovations, or make a large, but necessary, purchase. Other uses for a second mortgage are paying off things like student loans, credit cards, and medical bills. Often renovations are needed and just cost more than what we expected. A second mortgage gets you the funds you need quickly and easily so you can fix your house. This is a type of loan that works for people in certain circumstances. Most people who look at this loan like the lower interest, more time to repay debts, and affordable monthly payments.

A second mortgage can be used to consolidate or pay off debt you have been having trouble with or you just want to pay off. Our experienced and licensed team of mortgage brokers at Brampton Mortgage Broker can help arrange a second mortgage to bring several different payments you are making all together into a single, low and affordable monthly payment. Depending on the amount you are looking to borrow, you can count on our team to help get your second mortgage arranged and funded quick and easy. Our average time to get a second mortgage arranged and funded from start to finish is within a few days to a few weeks. So that means you use that second mortgage to pay off your credit card debt or pay off other obligations may have like renovations or tuition in a matter of days or a few short weeks all at low and affordable monthly payments.

When is a Good Time for a Second Mortgage?

There isn’t much of a waiting time when you apply for a second mortgage. You just need equity, as mortgage lenders want to know how much equity you have, as well as the amount of debt. As long as you have equity and are able to make regular payments, a second mortgage can be a good idea. Second mortgages can help you manage your expense better as you can lower your monthly payments and make them more affordable by saving money, which will allow you to have money available for other expenses.

The Benefits and Advantages of a Second Mortgage

  • Higher Loan amounts: second mortgages allow you to borrow larger amounts in a loan because your home is being used as collateral. For some loans, you can borrow up to 85% of the value of your home.
  • Lower Interest rates: you will notice this type of loan usually has lower interest rates than other loans. By securing your loan with your home, it is less risky for your mortgage lender, and they are more willing to work with you.
  • Rebuild your Credit Score: it is also good to know, if you use a second mortgage to pay off debts, you will be helping in rebuilding your credit score as the debt that is attached to your credit will be paid off in full. As long as you keep up with the new second mortgage payments and maintain your credit moving forward your credit score will start to increase over a few short months to a years time.

Note: keep in mind that a second mortgage is a loan, and the funds still need to be paid back in regular payments. The second mortgage is also tied to your home so if you don’t pay the money back or miss multiple payments, you can find yourself in a situation where you could look at the possibility of losing your home.

What do you need to qualify for A Second Mortgage?

When you decide to get a second mortgage, you will need to provide information on your income, equity, property, and credit score. Home Equity is important to have, and if you have home equity, you will have an easier time qualifying for a second mortgage. If you can prove you can make regular payments towards utilities, that will help you qualify easier as well. This is because you can show lenders your source of income is reliable and steady enough for you to make regular payments on the second mortgage loan. If you have a high credit score, it also helps your chances of securing a second mortgage quickly. It can also make your interest rates lower.

Why Should You Use Mortgage Brokers To Get a Second Mortgage?

It is important to know that our experienced and licensed team of mortgage brokers at Brampton Mortgage Broker have years of experience in arranging second mortgages for many clients and we know how to get our clients results they feel proud of. Our experienced and licensed team of mortgage brokers at Brampton Mortgage Broker are able to arrange you a second mortgage with low and affordable monthly payments, so you can stop stressing over your finances and start saving money each and every month.

But here are some more points you can read over to get a better understanding of how our Brampton Mortgage Broker team can help you with getting a second mortgage.

  • Mortgage brokers have expert resources to help them find the right lenders, banks, insurance companies, trust companies, and private funding to find the right mortgage for your financial situation.
  • Brokers have access to better rates and more access to a variety of loans. Mortgage brokers have ongoing training to help all people, even those with poor credit. Brokers have the experience, knowledge, and industry contacts to find the best loans.
  • Mortgage brokers are often smaller institutions than banks, and this allows them to give you flexible, more personal service, among other options.
  • Finally, mortgage brokers save you time, money, and energy. You just need to fill out one application with a broker, and then the broker takes it from there and sends them out on your behalf.

Second Mortgages may not be for everyone, but they could be just right for you. Speak to our experienced and licensed Brampton Mortgage Broker team and discover that qualifying is quick and easy. If you want any further information about second mortgages or what is available for your financial situation, please contact our Brampton Mortgage Broker team today.

What should you consider when refinancing your mortgage in Brampton?

Refinancing your mortgage can lower your loan payments and improve finances when you do it right. Our experienced and licensed team of mortgage brokers at Brampton Mortgage Broker has helped many homeowners get the most out of their mortgage refinance but here are a few things our team would like to share with you and what we think you should know when you refinance your mortgage in Brampton.

Refinancing Explained

Refinancing your mortgage is when you renegotiate your current mortgage terms and work on creating new ones. This newly ‘refinanced’ loan actually pays off and gets rid of the first loan, creating a new one. This new loan will have lower monthly loan payments.

Why Should I Refinance my Mortgage?

The reasons to refinance are endless, but you have to make sure they work for you.

  • Refinancing a mortgage lowers monthly interest payments. Refinancing also saves on interest.
  • Refinancing a mortgage can pay off high-interest loans and consolidate debts into a single, lower payment each month.
  • When you are refinancing, you can also use your home’s equity to take out funds. Using equity is helpful when you are faced with some much-needed repairs or tuition fees. Refinancing saves you money, builds equity, and pays off the mortgage quickly.
  • Mortgage refinancing at the right time would make the rates drop and will help you save on interest rates during the remaining time on the loan.
  • When you want to use equity, refinancing the mortgage can help. Some people plan on refinancing a mortgage when they have built up enough equity on their home to use.
  • Some people refinance their mortgage they are planning on changing mortgage companies.
  • Refinancing your mortgage can help you reach financial goals. If you are struggling with making mortgage payments, it may be time to refinance so you can reach those goals.

Different Types of Refinancing

When you are refinancing your mortgage in Brampton, there are three regular types of mortgage refinance loans available. Ask your mortgage broker for help if you need anything explained further or if you need more information.

Rate-and-Term Refinance Loan: When you want to change the interest rate, the loan term, or both, and you also want to make changes to the loan amount, you will want to use this type of loan.  The Rate and Term Refinance Loan is good if you want to change from a fixed rate to an adjustable rate, so you can save money on monthly payments.

Cash-In Refinance Loan: This Cash-In Refinance loan is not as common as the others but still has a job to do.  It’s a good choice when you are struggling with mortgage payments and need a loan. This loan is usually chosen when a homeowner refinances the mortgage loan contract and brings funds in an attempt to reduce the balance on the new mortgage.

Cash-Out Refinance Loan: The cash-out refinance loan will help homeowners take out the funds they need for sudden financial responsibilities. A cash-out loan uses the home’s equity and takes out a certain amount. By doing this, you will get a higher loan amount, usually, the amount you took out makes up the difference. Speak to your mortgage broker if you are interested in a Cash-out Refinance Loan. This type of loan usually results in monthly payments and interest rates being higher than the other loans.

The Method of Refinancing your Mortgage

How do you plan to refinance your mortgage? Perhaps the ideas below will help you as the time to refinance gets closer

  1. Create a goal: Decide on what you want to do. Whether it is to reduce your monthly payments or shorten the term of your loan, you will need to decide on which one works for you.
  2. Shop around for the best rates for mortgage refinancing:  Shop around for the best rates for you and don’t forget to look at fees, as well.
  3. When you have a selection of three to five lenders, apply for a mortgage: Within a two-week period, apply and submit all the applications possible. This will have a minimal impact on your credit score.
  4. Pick a mortgage lender you trust: Each mortgage lender should provide a Loan Estimate once you apply. When you have them all, compare then pick the best offer for you, as the estimates tell you how much you will need for closing costs.
  5. Lock in the Interest Rate: Locking in your interest rate makes sure your interest rate won’t be changed or altered during a set period of time.  You must work with the lender to close the loan before the expiration of the rate lock.
  6. Close on the loan: This is when you need to pay closing costs. Closing costs are listed in the Loan Estimate and the Closing Disclosure. Closing on a refinance is similar to closing on a purchase loan. Ask your Mortgage Broker if you need further explanation.

Do you Need Another Reason to Refinance?

You can save money while refinancing your mortgage and here are a few tips to help explain and guide you:

  1. Pay Lender Costs – By paying costs and points, you can put more of your payment towards the principal reduction per month.
  2. You can Improve your Credit Score – You can improve your credit score in the time since you first got the loan. While you are refinancing your mortgage, stay away from using credit cards or opening new accounts.
  3. Prepare for an Appraisal – Although it is not always necessary for refinancing mortgages, an appraisal helps if the home is worth more than what the lender said it was.
  4. Have a plan for what you are going to do with the savings each month.
  5. Consider the Term of the Mortgage – do your research on the available terms of a mortgage, and find a term that works for you.

As you can see, there are different types of mortgages to choose from and a method for refinancing your mortgage. If you are still wondering if these are enough reasons to refinance your mortgage, our Brampton Mortgage Broker team can give you expert advice. Let our experienced and licensed team of mortgage brokers at Brampton Mortgage Broker discuss options for refinancing the mortgage that will work best for you, today.

$700k Mortgage Refinance for a Truck Driver from Brampton, ON

Here is how I (Brampton Mortgage Broker – Rumy Gill) was able to help a Truck Driver from Brampton, ON get his Mortgage Refinance of $700k Approved just be he was about to give up.

A Truck Driver from Brampton, ON had come to me 3 weeks before the renewal of his mortgage was about to start but he wanted to refinance his mortgage. He was getting a rate of 5.78% (which is outrageously high) on his renewal of his mortgage of $550k. The client did not want to renew his mortgage as he was looking to refinance his mortgage for $700k so he could get money to pay off debts (credit cards, lines of credit, loans) he had and complete his basement renovation which he had planned for months.

The problem the client had was he wasn’t able to show his income on paper, although he was earning more than $9k a month he was not able to qualify with a mortgage lender even after trying with a few Banks, and which and another Mortgage Broker, and since he was not getting what he wanted, he was considering renewing his mortgage at 5.78%, that’s until he spoke with me (Brampton Mortgage Broker – Rumy Gill).

Given his situation, I found his income not to be an issue to deal with and I was still able to provide him a Mortgage Refinance of $700k at a rate of 3.99% with fairly low Income documents needed. The Mortgage Refinance of $700k allowed him to pay off debts (credit cards, lines of credit, loans) and finally get to complete that basement renovation he had planned for months. All in all, the client was happy with the end result, given his short time frame and income situation.

If you are considering a Mortgage Refinance, then you should contact Brampton Mortgage Broker – Rumy Gill, to get the best mortgage options for your Mortgage Refinance.

With our Easy Approval process, Brampton Mortgage Broker – Rumy Gill can help you find Great Rates, and Low Affordable Low Monthly Payments that work best for your situation. Don’t wait any longer; contact Brampton Mortgage Broker – Rumy Gill Today, Apply Online or Call Now to get your Mortgage Refinance started.

How a $465k Private Mortgage saved Brampton Home Owners?

Here is how I (Rumy Gill – Brampton Mortgage Broker) was able to help finance a $465k Private Mortgage in Brampton to pay off mortgage arrears and credit card debt. Jack and Tracy found themselves in the biggest financial mess of their lives; due to the ongoing COVID-19 situation, Jack and Tracy were just barley getting by due to uncertain circumstances. Jack had just lost his job and he was trying to find new employment and Tracy had transitioned to working from home.

With the constant scare of COVID-19 and rising daily case numbers, Jack fell into a depressive state and wondered if even trying to find work was going to be worth it. Jack did not want to leave his home and be exposed to getting COVID-19. He was really afraid and just wanted to stay at home, or just find a job where he could work from home. Jack told Tracy that it would be best that they both not leave the house at all and just order any food or supplies from online until the situation of the COVID-19 would calm down.

For months Jack and Tracy did just that, they stayed home, and only went outside on the porch or their backyard to get some fresh air, although they were protecting their health and well-being. Their finances on the other hand were falling apart. Since Tracy was the only one working and bringing in income the finances started to fall apart as Tracy’s income was not enough to keep with all the expenses.

Even though, Jack had applied for the CERB and did receive money to help with the cost of expenses, it still wasn’t enough, they had racked up their credit cards, and they were behind on their property tax and started to miss some payments on their mortgage. Although they had deferred some payments with the lender, it was now time for them to make back those payments and Jack and Tracy were not able to make the mortgage payments and fell into arrears. Unfortunately, the situation got worse, due to all the stress, Tracy was unable to keep her job and now they needed help and fast.

They had thought about selling their home at one point but the thought having strangers come into their home during this pandemic scared them and they just didn’t want to sell. Without jobs, where would they move too?. It all just seemed overwhelming to them.

Not knowing what to do, Jack and Tracy contacted me, Rumy Gill – Brampton Mortgage Broker, to help them find a way to save their home and clean up their debts so they both could focus on trying to find new jobs so they could get back on track.

After getting a clear picture of their current situation, this is what I was looking at:

  1. Value of their home $700k
  2. Current Mortgage with Missed Payments $325k
  3. Credit Cards $35k
  4. Behind on their Property Tax for $10k

Even with their bad credit and no income situation, I was able to get them a new Private Mortgage on their Brampton home for $465k. The new Private Mortgage of $465k provided Jack and Tracy much needed breathing room and helped cleaned up their financial situation.

Here is what the new Private Mortgage of $465k was able to do:

  1. Pay off the Current Mortgage and Arrears of $325k
  2. Pay off the Credit Cards totaling $35k
  3. Cover the payments for one year for on the new Private Mortgage
  4. Give them $50k cash in hand for any Emergency or Savings
  5. Pay their property tax in full for $10k

This allowed Jack and Tracy to now start rebuilding and maintain their credit, start looking for jobs without the financial stress, and have cash available to them for any emergency that may come up.

Since the Private Mortgage was funded, Jack and Tracy have been successful in their new jobs, as they have both been able to land job interviews and it is only a matter of time before they land a job.

If you are looking for a Private Mortgage in Brampton, make sure to contact Brampton Mortgage Broker – Rumy Gill, today to get the Best Private Mortgage Options for your Mortgage Situation.

Also, if you are looking to change mortgage companies, it may be the right time to refinance your mortgage so you can get the best rate and monthly payments for your mortgage.

When Is The Best Time To Refinance Your Mortgage?

When Is The Best Time To Refinance Your Mortgage?

Are you thinking about refinancing your mortgage, but are wondering if it is the best time to do so? Well, this is not an easy question to answer, as everyone has their own situation and financial needs. You will need to consider your financial goals and what you want to achieve. If you are struggling with making mortgage payments, it may be time to refinance and get that much needed breathing room. Let’s take a look at what refinancing is, and when refinancing a mortgage is a good plan.

What is refinancing a mortgage? It is when a borrower renegotiates the current mortgage loan contract and selects new terms. You will want to make sure the new loan should have better terms so it improves your overall finances. A refinancing of your mortgage will pay it off and replaces with another loan. The new, refinance mortgage loan will usually have lower rate and monthly loan payments.

What can refinancing a mortgage do?

Refinancing a mortgage can reduce your monthly interest payments, saving on the interest you will pay. A refinanced mortgage can also quickly pay off other loans and consolidate your high interest debts. If you need to, you can use the equity built up in your home to take out money. This helps in the case of sudden needed repairs or renovation, or any other reason you may need the money for. Refinancing a mortgage can save you money, build equity, and pay off your high interest debts and also help with lowering your monthly mortgage payments.

When is the Best Time to Refinance?

Deciding when to refinance a mortgage depends on many things, how long you plan on keeping your home, if you and your home will even qualify for refinancing, and what you will get from refinancing at this time. Refinancing a mortgage is more beneficial when interest rates are low. If you refinance the loan at the right time, you can save on interest rates during the life of the loan since the rates would drop. You can usually lower the rate and shorten the term of the mortgage if you choose allowing you to pay off your mortgage much faster or you can choose to extend the term of you mortgage which will allow you to lower you monthly payments, giving you more flexibility in your monthly cash flow.

A good time to refinance would be when your mortgage has a higher interest rate than those on the market currently. Once you have a mortgage, you typically have to wait until the term is up on your current mortgage so you can refinance without any penalty. However, even by paying out a penalty to refinance early, you can actually benefit you greatly. If by refinancing early allows you to get access to money and help pay off and consolidate high interest debts you have outside of your mortgage such as credit card, car loans, or other debts you can consolidate all these payments into your mortgage and take advantage of a lower interest rate, which can result in overall lower monthly payments for you.

Some people refinance when they have built up equity on their home. Now you might be asking what exactly equity in my home is? Well, equity in your home is the difference between the worth of your home and what is owed to the mortgage lender. For example, your home is worth $700,000 and you owe $400,000 on your mortgage. The equity you have in your home is $300,000. However, it is important to note that when refinancing you will be able to get access up to 80% of the value of your home, so in the above value of $700,000 you will be able to get access to $560,000 for refinancing but since there is a mortgage for $400,000 in place owing on the mortgage, the actual amount you can get from the equity in your home from a refinance for will be $160,000. Don’t worry if this sounds confusing to you, you can always get in touch with us and our Brampton mortgage broker can work out the amount of equity you can access from your home for your particular situation.

Also, if you are looking to change mortgage companies, it may be the right time to refinance your mortgage so you can get the best rate and monthly payments for your mortgage.

Do not try to refinance if you are going to flip the house or plan on moving in the near future. This type of mortgage works well if you plan on staying in the home for at least the length of the mortgage term you have in place, whether it be a one ye, two year or even a five years term. Remember, when opting for a mortgage refinance you want to make sure your credit score and history is excellent standing in order for you to qualify for a refinancing loan. If your credit needs some work, maybe now is not the best time.

Can You save money when you Refinance your Mortgage?

The simple answer is, yes. Here are a few ideas:

  1. Pay the Fees and Lender Costs: do your homework on costs. Sometimes there are costs like private mortgage insurance, legal fees, and closing costs. By paying costs, fees and points, more of your payment can go to the principal reduction per month.
  2. Improve Your Credit Score: How is your credit score? Has your credit score improved since you first got the loan, and how have your savings and income been? If they are strong, the better. While you are in the process of refinancing your mortgage, try not to apply for new credit or open any new accounts. But you will want to check your credit score (using the Equifax websites to view your credit score can help you.) and make sure all is good. If there is something you notice, see if you can fix it or get help.
  3. Be Ready for an Appraisal: Not all mortgages being refinanced need an appraisal, but, an appraisal will help you if your home is worth more than what the lender said it was. When you have an appraisal, simple things like cleaning the interior of the house to make it comfortable and tidy the exterior to make the lawn presentable, helps in the overall presentation of your home.
  4. Make a Plan: Plan what you are going to do with the money you save each month. Be tough and stick to the plan. You don’t spend the savings you accumulate. There is a grace period between the old mortgage payments and the beginning of the new mortgage payments, so take advantage of that by paying off a credit card or renovation cost or any other debts you may have.
  5. Do your Research: Think about the mortgage term. Research what the available terms of a mortgage are, and get one that suits your situation. Take a look at a fixed-rate mortgage, as this type of mortgage will help you work finances and save money.

As with any mortgage, it is a good idea to talk things over with our trusted Brampton mortgage brokers. Everyone has a unique financial situation, and our Brampton mortgage brokers can work with you to find a solution. Ask if refinancing your mortgage now is the right thing to do for you.

Tips to Consider while Refinancing your Mortgage in 2021 ( post Covid era)

The past year has been a year of surprises, changes, and constantly adapting. It has been the same for mortgages too. Is your mortgage term ending? Is it time to think about refinancing, or are you wondering if that is the right choice for you? Let’s look at what refinancing can do for you and any tips for refinancing in 2021.

What is refinancing a mortgage?

Refinancing is still the same now, as it was before. It is when a borrower renegotiates the current loan and selects new or better terms. The new mortgage loan should improve the borrower’s finances. Mortgage refinancing pays off and replaces the first loan. The new, refinanced mortgage will usually have lower loan payments. You are allowed to refinance as often as you need to, but make sure it makes sense financially.

What can refinancing a mortgage do?

Refinancing a mortgage can reduce your monthly interest payments. A refinanced mortgage can also quickly pay off other loans and consolidate debts. If you need to, you can use the equity to cash out money. This helps in the case of sudden needed repairs, or education fees. However, digging into your equity is not recommended when applying for refinancing but it can provide much needed financial relief. Refinancing a mortgage can save you money, build equity, and pay off the mortgage faster. Refinancing a mortgage works well when interest rates are low. You can save on interest rates during the life of the loan as refinancing at the right time would make the rates drop.
What about refinancing in 2021? Is now the right time for refinancing for your home? Here are some tips if you are planning to refinance this year.

Tips for Refinancing in 2021

  • Find the best rate for you.It’s ok to shop around and compare fees instead of choosing the lowest rate. You can also ask each lender for a loan estimate to help with your choice. Lower interest rates simulate the economy through refinancing. So by doing this, you are not only helping you, you are helping the economy.
  • Try to find a lender who offers underwriting upfront. Underwriting is the verification process of the applicant’s financial information. The housing market is still competitive, and if a lender will offer underwriting upfront, it ensures the best rate available for the borrower.
  • Refinance to create lower monthly payments so you can create a financial cushion. Even the slightest reduction in rates can create significant savings.
  • Know why you are refinancing to the right loan for your situation. Do you need a lower payment, shortened term, replace current loan with a fixed-rate loan, or borrow from your equity? Those are just a few things to consider.
  • Refinance to lock in a low rate for longer, save money. Make sure this is possible by speaking to your mortgage lender, as there are some lenders who will not lock in until later in the underwriting process.
  • Keep in contact with your mortgage lender. Maintaining contact with your lender, and supplying any of the requested documents or information when needed, will keep the mortgage refinancing process moving smoothly. Consistent communication with the lender can help ensure your credit is protected and you aren’t charged with late fees, if Covid-19 has impacted your life in some way.
  • Check your credit score. Your credit score is a major factor lenders take into account with any mortgage. Check your score before asking about refinancing your mortgage. Make sure all of your accounts are up to date. Also, make sure your credit score stays solid until the refinanced mortgage process is finalized. It is a good idea to avoid taking on any new debts as this can slow the refinancing closing process. It can also cause a mortgage to fall through if it changes your financial standing.

Keep in Mind

It isn’t the best idea to refinance if you are going to move in the near future or flip the house. Refinancing your mortgage will work well if you plan on staying in your house for at least five more years. Make sure your credit is good enough, or you can get it good enough, to qualify for a refinancing loan. If your credit needs some work, maybe now is not the best time and speak to your lender for options. Refinancing may be difficult if you are planning to use your home’s equity to take out cash.

It is a good idea to talk things over with a trusted mortgage broker, and our mortgage brokers are up to date with what is going on this year surrounding mortgage refinancing even during the Covid-19 era and can provide you the help you need in getting your mortgage refinance approved. You can rest assured that after speaking to one of our mortgage broker, they will have the most current insight into your financial situation and be able to find the best mortgage refinance option that would work best for you.

As everyone’s financial situation is unique, our mortgage brokers can provide you with advice and a solution that works best for you. Don’t wait contact one of our mortgage brokers today to discuss your refinance your mortgage options.

How can I get all my debt into one Payment with a Debt Consolidation Mortgage?

How can I get all my debt into one Payment with a Debt Consolidation Mortgage?

Getting out of debt can seem like a long road, but there is financial help out there. One option, when payments seem to be getting out of control, and debt keeps building, is getting a debt consolidation mortgage. Let’s take a look and see if it’s something for you.

About Debt Consolidation Mortgage

Debt consolidation mortgage is a way of combining multiple types of debt incurred by a person, into one monthly payment. Using this method, you can aim to pay off your debt in a much shorter time and save a lot of money in the process. Although debt consolidation is helpful for several reasons, you still can’t miss a payment. You should aim to stop using all but one credit card, which is only to be used in emergencies so you don’t rack up debt again.

Simply put, consolidating your debt will lower interest you pay so you can save money with lower monthly payments and pay down debt faster. You use money from your loan to pay off the debt, and then you pay back the loan in payments set over an agreed time frame, or term.

Which Debts can be Consolidated into a Mortgage?

  • mortgages
  • car loans
  • high interest loans
  • unsecured loans
  • credit cards (this is the most common type of debt)
  • utilities
  • medical
  • collection accounts
  • payday loans

Benefits of Debt a Consolidation Mortgage

There are a few benefits of a debt consolidation mortgage.

  • It helps you pay off your debts quickly. While paying a credit card with minimum payments can take up to twenty years or even longer. But by using debt consolidation, your debt will be paid off in a much faster period of time.
  • It comes with low interest rates. Lowering the interest rate will save you money and help you make bigger payments towards getting rid of your other debts.
  • You will only have one payment. Debt consolidation simplifies making payments. It combines multiple debt payments into one monthly payment. This makes it easy to remember, and easier to pay.

When Is It a Good to Consolidate Debt into a Mortgage?

If you are wondering if there is ever a good time to consolidate your debt into your mortgage, here are a few ideas to guide you.

  • When you have a plan set up to guide you and prevent you from falling into debt again.
  • Your cash flow is consistent and allows you to cover the loan payments.
  • Your credit score is good enough to get a low-interest debt consolidation loan.
  • Your total debt, not including the mortgage, does not exceed 40% of your gross income.

Should I Consolidate my Debt?

If you are in any of the following situations, consolidating debt into your mortgage may be a good idea.

  • Bad spending habits: If you are spending more money than you are making
  • Credit card troubles: The balance of your credit card is growing and not shrinking, as well as you having more than two to five credit cards with debt. Also, consider consolidation if you are close to, or at the end of, your credit card limits.
  • High interest rate: The interest rate of your credit cards are in excess of 9.99% or even as high as 18.99%
  • Getting turned down: If you have been turned down for an in-store loan, or turned down for a credit card, due to a high ratio of debt to income.
  • Minimum payments are doing it: If you are only making minimum payments and it isn’t paying down the debt.
  • Equity in your home: If you have built up equity in your home then you can use this equity to help you with consolidating your debt.

How Should I Start?

Start with listing all the debts you need to have consolidated. Next to each debt, write the total amount you owe, what the monthly payment is, and when it is due. Also, record the interest rate you are paying for each debt. This will help you figure out the total amount you will need to ask for when getting a consolidation loan.

You need to develop a monthly spending plan, and stick to it. Learn to budget your money and don’t be afraid to ask for help.

Our mortgage brokers offer the best type of debt consolidation loans and help organize your finances to create a plan that allows you to get back on the right track. It is important to remember that a debt consolidation uses your home as security so you want to have a plan that helps you achieve your goals of saving money and be able to make your monthly payments.

Is There Another Option?

If you feel all other options will not work for your debt situation, you can look into a debt management program.

Debt Management Program: A debt management program consolidates all debt into one lower monthly payment with a lower interest rate. This is a program to help people like you to consolidate all their debts into one monthly payment, just like a consolidation loan. However, once in this program, creditors usually reduce their interest rates. This will help you get the debt paid off in good time. A debt management program often benefits those involved by helping the people discover why the debts became that bad, developing skills to manage money better in the future.

No one ever plans to get into debt. It often seems to sneak up on us during the hardest times, making things harder when we don’t see a way out of the problem. Debt doesn’t make you a bad person. You are actually doing the right thing by addressing the situation. Take charge today, and ask if debt consolidation is right for your financial situation.

Home Equity Loan or Mortgage Refinance

Can you believe your house is more than just a home? It is an investment, and also a source of money ready to help with repairs, upgrade and emergencies or any cash shortages you may have. You can get this money through refinancing a mortgage or through a home equity loan. Are you wondering what the difference is, and which would be better for your financial situation? Let’s take a look at each of these options.

What is Home Equity and What does Home Equity do?

First, what is home equity? Home equity is the market value of a person’s home, excluding any liens that may be attached to it. It is the personal wealth you hold in your home, the accumulated value. Home equity is an asset you can use to borrow against. Home equity, simply put, is a second mortgage secured by your house, where you borrow money using your home as collateral.

To figure out how much equity you have, see what you still owe on your mortgage. Then find out what your home’s value is. The resulting difference is the equity amount of your home.

Home equity builds from paying down your home’s mortgage loan, as well as the buildup of property appreciation over time. You can always sell your home to get equity turned into cash, but there are alternatives to get the funds without selling.

What is Refinancing a Mortgage?

Refinancing is when you renegotiate the old mortgage loan and select new terms. The new loan usually has better terms so it improves your finances greatly. Refinancing pays off and replaces the old loan. The new, refinanced mortgage loan will usually have lower monthly loan payments. You can refinance your mortgage as often as you need to, however, make sure it makes sense for your financial situation.

What can Refinancing a Mortgage do?

Refinancing a mortgage is often used to lower your monthly interest payments. This will save you paying on interest. A refinanced mortgage can also be used to pay off other loans faster, and can also consolidate debts. Refinancing a mortgage will save you money, build equity, and pay off your mortgage faster.

What Is a Home Equity Loan?

In a home equity loan, you receive a one-time lump sum from your lender. Once you receive the money, you need to start repaying at a fixed rate. If you need to, you can use the equity to take out money. This helps in the case of sudden needed repairs, or education fees.

Comparing Home Equity Loans and Refinancing

Refinancing your mortgage and home equity loans both give homeowners the ability to get cash based on their home’s equity. For both, refinancing your mortgage and home equity loans, you can use the money you get for any purpose you want or need. Usually, it is recommended to use the funds for home improvements that add value to the house, or for much needed debt consolidation. Remember, for both, your home is collateral, so if you fail to make payments, it could lead you to foreclosure.

A home equity loan may be the better choice if you need to borrow a large amount of the home’s value, or when you can’t get a lower rate when refinancing. Monthly payments can turn out to be higher, but you will pay less interest. Home equity loans are great for people in need of a substantial amount for a particular purpose. Remember, with a home equity loan, you will make monthly payments on top of your usual mortgage payment. Home equity loans are fast and easy process than that compared to a refinancing of your mortgage, and have a shorter repayment period.

Refinancing can be a better idea if you plan on staying in your home for many years. This will allow you to take advantage of lower monthly payments. Refinancing your mortgage allows you to get access to your home’s equity at the same rate as your mortgage. Be aware, refinancing replaces the old loan for a new one that is great that what you had. Refinancing usually has lower interest rates, and can have a repayment period of around 30 years. You get to choose the length of the term when you refinance the mortgage.

When trying to decide if you should refinance your mortgage or use a home equity loan, it is always best to discuss with a mortgage broker. Our mortgage brokers can see what would be more beneficial to you and your financial situation at this time. Make sure to get in touch with us today to discuss whether a mortgage refinance or a home equity loan is the best for you.

How to refinance a mortgage with bad credit

How to refinance a mortgage with bad credit?

Refinancing a mortgage refers to the process of replacing your existing mortgage with a new single new mortgage. Refinance can help you reduce your monthly payments, provides you the flexibility to repay your loan at your own pace and may also help you get a mortgage loan at a lower interest rate. It also enables you to change your type of mortgage rate from an adjustable rate mortgage to a fixed-rate mortgage.

However owing and financing a home when you have a poor credit score can be daunting. If you are carrying multiple debts and are looking for a mortgage refinancing to lower your overall monthly payments, we can help. Refinancing your home can be an ideal way to save money and free up hundreds of dollars each month and bring you up to a positive monthly cash flow. For more details contact us now. 

What is bad credit?

If you have a history of failing to pay bills on time then it shouldn’t be any surprise that you will end with a bad credit score. A person with bad credit will find it challenging and difficult to borrow money from traditional loan providers such as banks and other financial institution. It also makes it very difficult and almost impossible to get a loan at competitive interest rates, as the lenders will considered individuals with bad credit score as risky when compared to other borrowers. 

Refinancing with a bad credit score

Our team understands that when you have bad credit, it can difficult to refinance your mortgage. If you are serious about refinancing your mortgage, it is essential to make wise decisions around your credit and payment history and avoid missing payments. Some of the things to keep in mind while looking to get a refinancing solution are:

Ensure your application is engaging

It is important to understand that refinancing with a bad credit score is difficult. However, with a bad application or an application which is not engaging can make your chances of getting a mortgage refinance even more challenging. It is important to ensure that you have all the necessary documents before you apply for a mortgage refinance. Your bills, tax documents and other documents supporting the claim that you are financially responsible is essential to apply for a mortgage refinance.  

Have realistic expectations

It is important to understand that when you are refinancing your mortgage you must have realistic expectations. If you credit score is bad then there are chances that and you may not be offered the low interest rate. 

Ensure you have equity in your property

It is essential to ensure that your home has equity before planning to invest in a mortgage refinance solution. In addition to this once must ensure that he or she has a good payment record.

How can one improve their bad credit score?

  • Review your accounts
  • Use your credit wisely
  • Avoid applying for credit
  • Try and pay off your debts
  • Spend your income wisely
  • Pay your interest on time without fail

What are the benefits of investing in a mortgage refinance?

  • Mortgage refinancing will help you lower your monthly payments. It provides you flexibility to repay your loan at your own pace thus resulting in lower interest rates and more monthly cash flow.
  • With lower interest to pay and lower payments you can save better. It will enable you to decrease the length of your mortgage term. 
  • It also enables you to choose another lender and decide your own terms of the mortgage.
  • It can help you switch from a fixed rate to an adjustable rate mortgage.
  • It eases the burden of debt and may help you clear your debts faster.
  • It can help you access the equity in your home. This amount can be used to pay for other expenses that you may have.
  • It can help you curb your loans and plan your expenses accordingly.

Ensure you get the best interest rate

When you are refinancing a mortgage it is essential that you aim to get it at a lower interest rate, In addition to this one must also try to cash out a portion of your equity and to a fixed-rate loan, or a shorter loan term. Refinancing your mortgage can help ease the pressure you may feel from dealing with multiple mortgages. Depending on your income and your expenses you may be able to pay off your mortgage earlier. 

Helping you start with a clean slate

We understand that all of us wish to start fresh in terms of our loans, we hope that we had planned our finances better. A mortgage refinance is a second opportunity to rectify the errors we have made regarding our mortgage and loans.

 Mortgage refinance will help you get rid of the burden of handling all your current mortgages and start fresh. Our team of professional and qualified mortgage brokers can help you every step of the way. You can rely on us to help you find a suitable lender. We strive to find a lender who will offer refinancing solutions at a lower interest rate. We also provide you advice regarding all aspects of the mortgage refinancing. Please get in touch with us now, we will be glad to help you with all your requirements. 

Qualified mortgage brokers

Finding the right mortgage plan and the perfect lender can not only be difficult but also challenging.  Please note that the mortgage market has several lenders who offer different rates and charge different fees. Some of the factors that influence the fees and interest rates are your credit score, employment status and more. It is important to find the right lender to ensure that you get the right mortgage refinancing plan. Our team of professional and qualified experts have many years of experience and can guide you every step of the way. We will provide you options and help you make a wise and informed decision. Over the years our team has gained a reputation for offering quality services. For more information about the mortgage refinancing, call us now.

Looking for mortgage refinancing solutions, get in touch with us now. Our team will be happy to help you. 

 

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!