Thinking of buying your next home?

Thinking of buying your next home?

Your first move should be to talk to us!

Maybe you want to create the perfect house that fits your lifestyle. Or maybe your family needs more room to grow. Whatever your reason, when you are ready to sell your home and buy a new one, we’ll help you review your mortgage options. If you will need a bigger mortgage, your options will include bringing your mortgage with you if it is portable. You can often “blend” your current mortgage rate with the mortgage rate on the additional funds you need. Or, you might want to consider breaking your current mortgage and getting a new one for the total amount. To break your mortgage, your lender typically has the right to charge a penalty, which we can review with you. Of course, the exact terms and conditions of your current mortgage need to be examined closely to determine what factors need to be considered. That’s why it’s worth a professional mortgage analysis. There’s no cost or obligation.

 

We’re up-to-date on current rates and all of the new opportunities available – from a wide range of lenders  – so we can help you with all of the mortgage details for your next home.

 

 

 

 

Michelle Natareno

Mortgage Agent

michelle@4dfinancial.com

519-675-8798

 

http://mortgageintelligence.ca/brokers/Michelle-Natareno

 

 

Watch out for the Collateral Charge Mortgage

Watch out for the collateral charge mortgage.

It sounds like a good idea… and sometimes it is. A “collateral charge mortgage” is offered by several Canadian banks. Here’s how it works: the bank registers the mortgage for more than the value of the home at closing. The benefit: it can be easier to tap into your equity later. However, it also has the effect of, well, locking you in to the lender.

We’re not always big fans of the collateral charge mortgage – because we’re all about keeping your options open. Collateral charge mortgages are very difficult to transfer to another lender. So you might see a great rate or mortgage feature at another lender… but it’ll cost you; generally, you would need to start from the beginning and pay new legal fees.

The reason so many Canadians are choosing independent mortgage brokers is for choice and expertise. We don’t believe that lenders should tie the hands of homebuyers. Not sure what your lender has offered you, or want a second opinion? Give us a call. Maybe you’ve got a good deal. Or maybe knot!

 

 

Michelle Natareno

Mortgage Agent

michelle@4dfinancial.com

519-675-8798

http://mortgageintelligence.ca/brokers/Michelle-Natareno

Make an appointment today to get your pre-approval.

The ins and outs of pre-approvals

When you’re house hunting, it’s a great idea to know the amount of mortgage you qualify for, your monthly payments, and that your interest rate will be held for a specified period of time i.e. 120 days. This way you can shop within your price range, you don't have to worry about rates rising, and both realtors and sellers will know you're serious. Be realistic though and make sure you can afford that pre-approved amount; review all of your homeownership expenses and your monthly budget. 

                         

Keep in mind that not all pre-approvals are the same, and that a preapproval is not a mortgage approval. Some are just a simple rate guarantee subject to lots of conditions and a later approval.  For a full pre-approval you need to submit your application and documentation so the lender can qualify you, and even then it’s a good idea to have a financing condition in your purchase offer because your property will need to be assessed by your lender. Be sure to not make significant changes after getting the preapproval i.e. changing jobs, adding debt or missing payments, co-signing another loan, or using your down payment money. 

 

Contact us today and get off on the right foot in your home buying journey!

 

 

 

Michelle Natareno

Mortgage Agent

michelle@4dfinancial.com

519-675-8798

http://mortgageintelligence.ca/brokers/Michelle-Natareno

 

 

A peek behind deeply discounted 5-year rates.

 

 

 

 

 

A peek behind deeply discounted 5-year rates.

When considering a deeply discounted 5-year rate, keep in mind that cheapest isn’t always best. Strangely, we know that’s true when we’re shopping for anything else - but we still tend to believe that lowest rate is the one and only factor in choosing a mortgage. But, that low-rate mortgage could actually cost you more in the long run.

An amazing cut-rate mortgage could have you locked in to a very rigid contract filled with financial “trip lines” that could work against you down the road. That’s why it’s important to check the fine print. For instance, is the mortgage fully closed? That means you’re not leaving the lender unless you sell your house, so your options are limited and you have no negotiating power if your needs change in the next 5 years. Low or no prepayments: means you have no or limited ability to chip away at your principal to reduce your overall cost. Maximum 25-year amortization can take away flexibility you may need later. Many prudent homeowners take a 30-year amortization but set their payments higher using a 25-year or lower amortization. This gives them the option to reduce their payments should an emergency arise or a special need like maternity leave. For first-time buyers too, a 25-year amortization means higher payments than a 30-year amortization and could limit their entry into the market.

Spot a deeply discounted 5-year rate? Talk to us first. We’ll always help you find the right combination of low rate with the options you need to achieve your goals for homeownership and the financial future you want.

 

 

Michelle Natareno

Mortgage Agent

michelle@4dfinancial.com

519-675-8798

http://mortgageintelligence.ca/brokers/Michelle-Natareno

 

GETTING THAT DOWNPAYMENT...Might be easier than you think!

GETTING THAT DOWNPAYMENT: It might be easier than you think!

For many first-time homebuyers, saving the 5 per cent downpayment is one of the big obstacles to home ownership, especially if you're paying rent, paying down student loans, and trying to live a life.  Here are some programs and tips that can give your downpayment a boost – to get you into your home faster:

1. The federal Home Buyers' Program (HBP) lets first-time homebuyers withdraw up to $25,000 each (or $50,000 for a couple) tax-free from their RRSPs.  You'll need to pay those funds back, of course, on a repayment plan.
2. A financial gift from a parent or blood relative can be used as a downpayment. You'll need to document in writing that the funds are a gift and that you are not required to pay the money back at any time.
3. A parent or grandparent could also provide a loan with a modest interest rate and reasonable expectations for loan repayment.  Or you could look at borrowing the downpayment through a loan or unsecured line of credit.
4. If your dream home is out of reach, look for a starter home. Use today's low interest rates to start hammering down your mortgage, then watch for the opportunity to get the home of your dreams – using the equity and credit rating you've been building!

Talk to us today – to ensure that you get off on the right foot in your home buying journey!

Michelle Natareno\
Mortgage Agent
michelle@4dfinancial.com
519-675-8798

http://mortgageintelligence.ca/brokers/Michelle-Natareno

Good debt vs Bad debt

Good Debt versus Bad Debt

 

Not all debt is created equal – and not all debt is bad. In fact, you need some debt to establish a good credit rating. Being a responsible borrower means knowing which types of debt can help you reach your financial goals and which types leave you further behind. So how do you distinguish between debt that’s good and maybe not so good?  Good debt includes any investment or purchase that helps improve your overall financial position:

 

Mortgage loans. We are benefiting from historically low mortgage rates, and over the long term, property has gained in value. You also build equity as you pay down your mortgage. This combination of low mortgage rates and increasing home equity creates smart debt.

 

Investments. Certain investments generate income and capital gains. Often, the interest expense on money borrowed for investments is tax deductible. Borrowing money to maximize your RRSP contributions is also good debt, since you’re investing in your future and benefiting from tax sheltered investment growth.

 

Bad debt involves purchases where the value becomes lower than the original cost, and which can carry a high rate of interest, making them harder to pay off:

 

Credit cards. Though you need to activate and use at least one credit card to generate credit history, irresponsible use can get you deep into debt. If you usually carry a balance on your card and make only the minimum payment each month, you’ll end up paying significantly more in the long run.

 

Buying a new vehicle. Before you start shopping for new wheels, keep in mind that cars start depreciating in value as soon as you drive them off the lot. Try not to buy more car than you need!

 

Deferred purchases. Be wary of advertisements for big purchases like furniture or home electronics at places where you “do not pay until 2015!” Sellers add financing charges to the cost of these items, and you could also be slapped with a steep interest rate until the item is paid off.

 

Preventing or reducing credit card or other bad debt may seem overwhelming at first, but it is manageable. Avoid cash advances, since these carry high interest penalties; use your debit card or cash instead. Only use your credit card to buy what you can afford, and pay off the balance in full each month. If you’re still unsure about your debt situation, set up a meeting with your mortgage broker. He or she can take you through your finances and advise you how you can use your home equity to trade bad debt for smart debt, and give you some financial breathing room. The right refinancing package can help put an end to the monthly squeeze of too much credit card debt or too many loans, and help you get back into your financial comfort zone. 

 

 

 

 

Michelle Natareno

Mortgage Agent

michelle@4dfinancial.com

519-675-8798

http://mortgageintelligence.ca/brokers/Michelle-Natareno

 

   

Should you give your child a boost to home ownership?

Should you give your child a boost to home ownership?

With the financial demands of school loans, living expenses, and finding a career path, many young people struggle to purchase their first home. Often, parents and grandparents are very sympathetic. They’ve enjoyed the financial benefits of long-term home ownership themselves, and see how hard it is today to make that important first step into the real estate market. So should you give them a boost?

First, consider your own financial situation. Your first responsibility is to your own financial security, so you need to consider what kind of help you can afford. If you loan the money and it is never repaid, will it affect your own financial security?  Can you afford to gift the money, and if so, how much?

Take some time to think about family dynamics.  Are there siblings or other family members to consider? Will there be an issue of fairness that you need to manage? Some families work well with a structured loan arrangement with a modest interest rate that gives the young family member an opportunity to buy the home – but also sets out the expectations for loan repayment. It can foster good borrowing habits and minimize family friction later.

Home ownership is a big financial responsibility. You know there are more costs to homeownership than just paying the monthly mortgage payment:  like heat, hydro, insurance, cable, taxes, and of course repairs and upkeep. Before you offer your child a boost to home ownership, consider whether they’re ready for the financial responsibility. Sometimes, the best advice is to keep renting for a while and take more time to get ready for the responsibility of a large mortgage.

If your child is married or living with a partner, consider property law. Experts advise parents to structure a loan to a child if there is a spouse or partner to consider. Should a marriage break up, for example, you may discover that 50 per cent of the money went free and clear to your child’s partner as part of a settlement of family property. A fairly simple fix is to structure a loan – even with 0% interest or with no regular payments – but with the ability to call the loan at any time.  In that way, the loan would be subtracted from the family property before being divided.

Always put it in writing. If it’s a loan, you’ll want a written record of your shared expectations. If it’s a gift, you must put it in writing for the lender that the child is not required to pay the money back at any time.

Talk to us! Your child is preparing to embark on an important financial journey, and you want to do your best to help get them on the right path. The best place to begin is with sound, expert advice.  Start them on a good financial habit and send them to us for access to the most mortgage options and clear-eyed, common sense advice.

 

 

 

Michelle Natareno
Mortgage Agent
519-675-8798
michelle@4dfinancial.com

http://mortgageintelligence.ca/brokers/Michelle-Natareno

Appraisal or Home Inspection...what's the difference?

Appraisal or Home Inspection… what’s the difference?

Often in a home purchase, home inspections and appraisals are both common practice. So what’s the difference?

A home inspection is often a condition of a purchase and is usually done to protect the homebuyer. A qualified home inspector will assess the physical condition of the home and all of its major systems to help you determine if everything is in good working order. You typically receive a schedule outlining what repairs are needed and by when.  

An appraisal is an objective assessment of the home’s value to confirm that the property is suitable as security for the mortgage. This is rarely a problem, but lenders and insurers take on their own financial risk, and they want to feel confident in the property before they approve the mortgage.

 

 

 

Michelle Natareno
Mortgage Agent
London, ON
michelle@4dfinancial.com
519-675-8798

http://mortgageintelligence.ca/brokers/Michelle-Natareno

How much home could your rent buy?

 

 

 

 

 

 

How much home could your rent buy?

Mortgage rates continue to be wonderfully low and, in fact, homeowners are locking in some of the lowest rates in history.  This Great Canadian Mortgage Sale is a good time to take a look at how much mortgage you could afford given your current rent.  Your dream home may be more affordable than you think!

 

Rent Today                Mortgage Tomorrow*           Home Purchase

$1,250                                $254,363                             $254,363

$1,500                                $297,600                             $305,135

$1,750                                $347,200                             $355,908

$2,000                                $396,800                             $406,680

 

Your monthly rent cheque doesn’t have to be money out the window. It could be building equity in your own home. 

 

Keep in mind that home ownership involves costs beyond the monthly mortgage payment like utility bills, insurance, and property taxes. We can help you determine what you can comfortably afford. 

 

Get pre-approved today and have your rate held for 120 days! This way you don't have to worry about rates rising while you are house hunting, and both realtors and sellers will know you're serious, which means you'll be in a good position to get the home you want.  

 

Don't miss out on the Great Canadian Mortgage Sale!

 

*Assumes 25-year amortization, 5% downpayment, 2.75% mortgage insurance premium, 5-year term, 3.59%, OAC,

subject to change. For illustration purposes only.

 

 

Michelle Nataren

Mortgage Agent

519-675-8798

michelle@4dfinancial.com

 

http://mortgageintelligence.ca/brokers/Michelle-Natareno

 

 

 

 

Apply for your Mortgage NOW

 

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Seperation or Divorce? Your home can be an asset that gives both parters a fresh start.

Going through a separation or divorce? Your home can be the asset that gives both partners a fresh start.

If you have a final separation agreement, then talk to your mortgage broker about how the value in your home and the power of your mortgage can help you both move forward on firm footing. Your broker will start by asking some key questions:

1)      Are you hoping to stay in the existing home?

Many couples assume that the house must be sold – but that’s not always the case. Your mortgage broker has resources that can help one partner remain in the home. The home can be refinanced up to 80 per cent of its value. You’ll need to determine if this equity can pay off joint debt and provide a payout if it’s required. Or one spouse can purchase the home outright from the other spouse who then comes off title. A Spousal Separation Mortgage allows a buyout to 95 per cent, which can provide a fair buyout and possibly pay off any other joint debt. 

2)      Do you want to buy a new home?

Your mortgage broker can let you know what you can qualify for and what is affordable for you in your current financial situation. 

3)      Will you need to boost your credit rating?

A less-than-stellar credit rating can affect your ability to get the best mortgage rates. Your broker has some quick strategies to help you polish your credit, and to build (or rebuild) your credit over time.

For many separating couples, their home is their most important asset. That’s why seeking the advice of a mortgage professional very early in the process can help set the stage for a successful separation – so the two of you can each make the best possible start on a new path.

Feeling overwhelmed? That’s normal. Your mortgage broker can help make a challenging time a little more hopeful: with personalized mortgage financing advice. Brokers have helped many individuals in these same situations. Divorce or separation doesn’t need to spell the end of financial hope. Contact your mortgage broker to take a look at your options – as an individual or as a couple.

 

Michelle Natareno

Mortgage Agent

519-675-8798

michelle@4dfinancial.com
http://mortgageintelligence.ca/brokers/Michelle-Natareno

 

Apply for your Mortgage NOW

 

Ten Steps To Home.

Ten steps to home.

Dreaming of celebrating the holidays in your very own home? Maybe it’s not as far away as you think. In fact, you might be just ten steps away!

1.      Start off on the right foot and talk to a professional mortgage broker: that’s me! I can help you determine if you’re ready to buy, or give you some tips on how to get ready!

2.      I’ll let you know how much home you can comfortably afford.

3.      Work with an experienced realtor to find your home.

4.      Find your perfect home and make an Offer to Purchase that is subject to financing.

5.      Gather up the documents to support your mortgage request.

6.      Get your mortgage approval, waive your financing condition, and sign your mortgage commitment.

7.      Don’t make any significant changes to your income or debts before getting possession of your home.

8.      Meet with your lawyer approximately a week before the house becomes yours to finalize everything.

9.      Arrange for home insurance.

10.  Walk in your very own front door!

 

Now that you’re home, I will help you make the most of your home ownership with tips to help you manage your mortgage, and power down your debt as quickly as possible.  Call today! You’re probably just ten steps from home!

Michelle Natareno
Mortgage Agent
London, ON
519-675-8798
michelle@4dfinancial.com
http://mortgageintelligence.ca/brokers/Michelle-Natareno

Apply for your Mortgage Now!

 

What is Your Credit Score?

 

 

 

 

 

What is your credit score?

Credit scores can range from 300 to 900 and are used by lenders to determine what kind of a risk you are likely to be as a borrower. Your score is based on several attributes -

Payment history

The single biggest factor in your credit score is having a timely bill payment history. Recent late payments are factored more heavily than old ones so start today and never let a bill get past due.

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Amounts owed

Keeping your accounts near their maximum limit can signal that you don’t manage credit responsibly, and that you may have trouble making payments in the future.

Length of credit history

The longer you have had credit in good standing, the better. Keep your oldest cards; that good history will help you, and don’t regularly take out new credit accounts.

Pursuit of new credit

Opening several credit accounts in a short period of time is a risk factor.  How many enquiries done on your behalf can also have an effect on your score. 

 

Types of credit
A healthy mix of credit i.e. car loan, mortgage and credit card is more positive than a concentration of debt in only credit cards.

 

With an excellent credit score (750 and over), lenders will give you a quick mortgage approval at the best possible rates. This score says you are reliable and responsible with debt. At a lower score (below 620), you likely won’t get the best mortgage rates, you may require a larger downpayment, there could be extra fees, and you may even find it difficult to qualify. 

Your credit score can change from month to month, which means you can boost your score relatively quickly with the right credit behaviours. We can review your situation and discuss how your score will be viewed by lenders and, if necessary, outline your best options for credit improvement. If you want to get a mortgage while you work on bettering your score, we can also advise how that may be possible. 

http://mortgageintelligence.ca/brokers/Michelle-Natareno

michelle@4dfinancial.com

519-675-8798

Apply for a mortgage NOW