Don’t Ruin Your Mortgage

What is a holiday hangover? No, I’m not talking about New Year’s day waking up in the bathroom with the overwhelming smell of wine, champagne, and whiskey from a night of copious drinking with the feeling of weakness. A holiday hangover is the aftermath of the gifts, dinners, champagne, and traveling done on holidays which take a toll on your wallet causing a lot of people to fall behind on mortgage payments, car payments, and any other debts. Some symptoms of the holiday hangover are:

  • Regret
  • Stress
  • Feeling of emptiness (in your wallet)
  • Headaches
  • Buyers’ remorse

Everyone can agree that racking up the bills and spending money is easy; however, that’s when the buyers’ remorse comes around – along with the credit card statements.

The key thing you should remember during any holiday is to budget, budget, budget! I’m not saying that you should shop for gifts at the local Dollar World but did you have to spend $1200 on that coat, $700 on a purse, and a $500 pair of high heel shoes especially if you can’t afford them? Some of that money could have gone to your mortgage. Develop a spending plan. Figure out exactly how much money you owe, how much you earn, create a budget, and then determine how much money you have each month to pay down those high-interest debts, such as credit cards and mortgages.

If you’re already feeling the symptoms of the Holiday Hangover, here are a few steps you can take:

Consider any assets you have that you could sell to earn some more cash. Your car could be one source of money if you can live with taking the bus for a while.

Is there anyone that you live with who can work an extra job to bring in more of a total income?

Seek professional advice. Anyone who is licensed, experienced, and ready to help can assist you to get back on the wagon, budget your money and finish your mortgage in Ontario.

Personal loans from family or a friend can help you out a lot to pay off those larger bills like your mortgage. Make sure to make it a written agreement, including any interest rates, and treat it like a loan from the bank.

Re-build your mortgage. By capitalizing on lower interest rates, you may be able to gather up extra cash every month by reducing mortgage payments, but this all depends on getting qualified and how much debt you owe. Always talk to your mortgage lender; you may be surprised with the options available to you!

The only way around debt is to budget. Don’t overspend on the holidays (unless you have the money of course). Before taking any large steps, always consult an expert such as a mortgage broker who can help with rebuilding your mortgage with better terms. Since mortgage brokers are equipped with specialized resources, they can be your best bet in saving on your mortgage.

Have Tenants Pay the Mortgage When Buying Properties

So you’ve started thinking about buying your very first rental property in Ontario.

Look at you go, Mr. Investor!

The problem is that you have not a single clue about what it takes to finance your idea or where to start.

I’ll try my best to answer your problem on the subject, but just remember that this article is a guide only and every mortgage application should be reviewed and assessed separately.

After some time in the real estate market, I’ve realized (and it’s pretty obvious) that real estate can be the biggest investment of your life, you’re spending (a lot of) money on the house after all however, if it works out, you can benefit a lot from it. But what if you didn’t have to pay the mortgage at all? There are ways that you can actually buy a house – without actually paying more than a down payment and a few additional costs for it.

It’s obvious that a house in Ontario still needs a mortgage (unless you’ve got a few hundred grand saved). However, a house can also be used as an investment. The most common way to do this is with a rental property. It’s exactly what it sounds like, a mortgage you take out on a property you want to buy to have tenants renting it. These types of mortgages are calculated differently and interest rates of often slightly higher since it’s a higher risk for the lender than owner-occupied mortgages. But really, you’re not paying the mortgage for the most part so a slight increase in rates won’t do too much.

So you may or may not have already started to look for a property but what exactly are you looking for? When you buy a home as an investment, you want to consider the target market you’re renting it out to.

One of the first things you should consider is the bathroom. It’s one of a home’s biggest assets and should be a high priority in deciding whether or not to buy. If you’re planning to rent to students for example who are on the go, a stand-up shower would probably be favored – less water usage and less time spent showering. However, if you’re renting out to a family, they may want a full bathroom.

The kitchen is another thing to consider. Students or single occupants generally wouldn’t need a large kitchen but a large family would.

After the pre-approval process, you would talk with a mortgage broker to see your available options. Be sure that the option you choose is going to work with your situation since over the length of the mortgage there will be several tenants – some who have more income than others. You also need to have sufficient funds in case a time comes up where there are no tenants and you need to pay from pocket. Once you’ve found a house and have been approved for the mortgage, you would pay the down payment. The down payment is generally around 20% or higher on rental properties. Now it’s all up to you to find tenants so post ads at grocery stores, laundromats, bulletin boards, tell friends, contact colleges and universities! Once you find a tenant, you’ll only generally have to worry about their payments paying off the mortgage, the maintenance, and making sure everything is running smoothly – unless you hire a property manager of course.

Avoid Mortgage Problems

Whether you’re an experienced home buyer or mortgage virgin, you’ve probably come across the question “do I need a broker in Ontario?” If you plan on buying a home or remortgaging your current one in Ontario, there’s always the option to find a mortgage yourself. However, quite a bit of people quickly finds themselves in a jam after the first few years of their mortgage simply because they bought a loan that seemed good to them and didn’t take enough time to really understand its terms or shop around longer.

When you hear “mortgage” or “home buy” one of the first few things to come to mind should be “mortgage broker” for one reason – brokers are a necessity with mortgages or buying a home. Hiring a broker voids most possibilities of misunderstanding your mortgage; they’re experts and once you hire the right one, the process is that much easier. A broker has access to several dozen lenders, which allow them to sift through them and find you the best plan. Unless you’re a mortgage broker, or personally know one, chances are that you’ll only have access to a few lenders so there’s a greater chance that you’ll miss a better opportunity. Qualified brokers on the other hand have all that information at hand.

The utmost important thing to look for when hiring a mortgage broker in Ontario is if they are qualified. Finding a qualified mortgage broker usually means that they love what they do. They invested time and money into being qualified and know that they run the risk of losing their qualifications if they give bad advice. Since people don’t buy a house often, brokers strive to give you the best possible product they can. Brokers want to hear good feedback from you so you can almost be sure that the plan they provide you with is one that will suit you financially. This is where a brokers’ service comes in handy; they know all the possible choices that can work with you and your situation. They’re trained to recommend a mortgage specific to each client. The better recommendations they give, the better reputation they have.

Knowing a professional from a profession-not is important and a few key things to look for is in the meeting set by you and the broker. Now I wouldn’t hire a lawyer for example who didn’t ask me questions and didn’t communicate enough to understand my claim. A professional mortgage broker will take their time in finding out exactly what it is you want and to understand what exactly you need now and for the future.

Mortgage brokers in Ontario will bring you right to the front door of your mortgage. By this I mean that when you hire a broker, you have little to no legwork – the legwork is their job. All you have to do is sit back and wait. Without a broker you have to spend lots of time searching for rates, terms and mortgages, different lenders, different opportunities and you still run the risk of missing something better.

Mortgage brokers use sophisticated software in helping them find the best mortgages for you through literally hundreds of home loans. This will help them assess the products and find the best options for your situation. They will guarantee a perfect mortgage that will save you thousands and benefit you and your family.