Mortgage brokers in Ontario can offer you more choices for mortgages in Ontario than any single bank or financial institution. Equity in Real Estate makes up the largest piece of their life savings for most Canadians. Mortgage rates are low, but choosing the wrong mortgage can take a big chunk out of how much savings you end up with.
Ontario mortgage brokers have access to many mortgage lenders. We can offer you the best finance rates on a wide range of mortgage products, including renewing your mortgage, refinancing, home purchase loans, mortgages for self employed, debt consolidation and private mortgages. We can help you with mortgages, mortgage insurance, life insurance, critical illness insurance and even small group insurance.
We’ve helped many clients who thought it wasn’t possible for them to get a mortgage in Ontario. We have many years experience working in financial services and we know how to get results.
Are You Having Problems Getting Approved?
Jack and Jane (not their real names) came to us after being turned down for a mortgage renewal application for their home. After doing a bit of online research, they had decided to apply to a well-known and well-established mortgage broker. They were shocked at being declined. During 5 years with their current lender, they had never missed a payment or been late and they now have over 30% equity in the property. Their income levels were a bit lower than before, but so were their debts, so they expected clear sailing. Needless to say, they were quite surprised when this broker got back to them 5 days later and advised them he wouldn’t be able to help arrange financing because of their low income levels.
What We Did
We reviewed Jack and Jane’s income and debt information and we calculated their debt ratios to see if we could qualify them for a mortgage. Jack had pension income from a few different sources and Jane was self-employed. Theirs wasn’t the simplest mortgage application to process, but it was not unusual in any way. What we discovered was that the previous broker had not used all of the qualifying income and some Jack’s tax free income had not been grossed up as allowed by lender guidelines. As a result, their debt ratios were too high and Jack and Jane did not ‘qualify’ for a mortgage.
By including all of the appropriate income and then applying the proper gross up calculations, Jack and Jane did fit within the qualifying debt ratio guidelines for a mortgage. It was tight, but they fit. Not only were we able to qualify Jack and Jane for a mortgage, we were able to qualify them for a low rate variable mortgage with all the bells and whistles. Variable rate mortgages are more difficult to qualify for because a higher rate of interest is used for qualifying. Quite a stretch from being turned down!
Having a lot of experience does not automatically translate into being able to provide a better service. If the person is too busy or doesn’t pay enough attention to detail, all the experience in the world won’t make one bit of difference to the outcome.
Many brokers take the easy route and play it safe by using the income levels that are reported on the customer’s Notice of Assessment. But the NOAs don’t reflect proper income levels for non-taxable and self-employed earnings.
Luckily, Jack and Jane had the good sense to get a second opinion. Had they accepted the first broker’s opinion, they probably would have panicked and put their house up for sale giving up on their dream of home ownership.
If you feel you’ve been treated as Jack and Jane were, give us a call at (800) 722-7172 or use our 30 second form. We’ll be glad to review your information and we’ll make sure all your income gets the proper treatment.
There’s a lot of information about various mortgage products in our services section. Be sure to visit our FAQ section for reference material and our check into our blog regularly for recent articles of interest on mortgages, real estate and insurance products. If you have any questions, please call or email us; we’ll be glad to help you with any questions you might have.
BUYING REAL ESTATE IN ONTARIO
For people approaching retirement, real estate in Ontario has proven to be a wise investment over the years. Other investments have done well for some, but the value of property has enjoyed an enormous boom, especially in larger cities like Toronto. It’s common for people to lose money in the stock market, not so much with real estate investments.
If you’re thinking of moving to Ontario, you can learn more about Ontario here.
Call 800-722-7172 or use our 30 second form for a free consultation.
OWNING REAL ESTATE BUILDS WEALTH
Owning real estate has allowed many long-time homeowners to build wealth without really trying. No matter how you go about it, you will be spending a significant chunk of your earnings on a place to live.
The number of choices available to finance mortgages in Ontario is overwhelming. There are now more lenders than ever before and yet many borrowers either don’t know about them or only think of using banks when they need a mortgage. Please take a moment to review the information below to get a better understanding of collateral mortgages before you sign on the dotted line.
Did you know that many Canadian Banks no longer offer standard mortgages? Most major banks now only offer collateral mortgages.
MORTGAGES IN ONTARIO ARE NOT ALL THE SAME
Most consumers assume that a mortgage is a mortgage. That was a fair assumption, until about 2010. In the past, mortgages in Ontario were always registered as standard charge mortgages unless one was applying for a Home Equity Line of Credit (HELOC).
But in 2010, a few banks started to register mortgages as collateral mortgages rather than standard mortgages. In fact, a number of banks in Canada no longer offer standard mortgages at all.
WHAT IS A COLLATERAL MORTGAGE?
With a standard mortgage, only the amount being borrowed is registered as a loan. So, if you borrow $200,000 on a $250,000 home, a mortgage is registered in the amount of $200,000 and you have $50,000 of ‘free’ equity in your property.
If you decide to apply for credit or another loan somewhere else, you have this $50,000 of equity to show on your balance sheet.
Collateral mortgages register the loans at up to 125% of the total value of your home, regardless of the amount being borrowed. That same $200,000 loan is registered as a collateral charge of up to $312,500. Yet, you only borrowed $200,000.
In effect, this collateral charge mortgage is tying up your existing $50,000 of equity and any potential increase in equity, should the value of your home value go up.
Do you see where this could be a problem? Find out more about collateral mortgages here.
Call (800) 722-7172 or use our 30 second form for a free consultation.
Be an informed consumer. Mortgage brokers in Ontario can ‘shop’ for the best mortgage to meet your needs so you don’t have to. No matter where you live in Ontario, we can process most applications by phone and email for your convenience, or we can meet if you prefer.
Option1 Mortgages is part of the Verico Mortgage Brokers Network. We don’t work for any bank or financal institution. We work for you.
Whether you are renewing a mortgage in Ontario, purchasing a home or refinancing your mortgage, we have access to many lenders and the best mortgage rates and products in Ontario.
Our mission is to simplify the process for you and help you make the best choice for mortgages and mortgage insurance. We can help you with life insurance policies or critical illness insurance as well. If you are a small business and you need group insurance benefits for your company, we’d be glad to help.
Whatever your financial product needs, we promise to keep it simple and get you the best available products.
Call (800) 722-7172 or use our 30 second form for a free consultation.
THE BEST SOLUTIONS FOR MORTGAGES IN ONTARIO
Our team approach gives you the best results for mortgages in Ontario:
- a local agent or broker to give you personalized service and expert advice;
- a team of managers and support staff to speed up the process and minimize Your wait time;
- a wealth of knowledge and experience to draw upon for even the toughest to place mortgages;
ONTARIO REAL ESTATE BUILDS WEALTH
TORONTO REAL ESTATE MARKET
Many people approaching retirement may not have done so well with many investments in the past decade. But real estate in Toronto has enjoyed an enormous boom. Anyone who bought property in the city 10 or 20 years ago has made a great deal of profit on that investment.
Owning real estate has allowed many long-time homeowners to build significant wealth without really trying. That can give you more options in retirement.
BARRIE REAL ESTATE MARKET
Even in medium sized cities like Barrie, real estate has increased in value considerably compared to other safe investments. Once your home has gone up in value, you can add to your cash savings by downsizing or relocating. Many retirees are selling their homes in cities like Barrie and Toronto to move into lower cost communities in Central Ontario.
MIDLAND REAL ESTATE MARKET
For example, you can buy a brand new 1,800 sq. ft. bungalow on the outskirts of Midland for about $320,000. Compare this to what that same home would cost anywhere in the GTA and you can see where home ownership can be a huge advantage during your retirement.
RETIREMENT OPTIONS FROM OWNING REAL ESTATE
The equity in your home can also serve as a back-up plan in case you run low on savings in your retirement years. If you stay in your home, you can cover essential expenses by borrowing against it with a reverse mortgage or home equity line of credit. Obviously, this should only be considered as a last resort.
If the time comes that you can no longer stay in your house and you need to move into a retirement home, the proceeds from selling your house can foot the bill for years.
And, if you don’t need to touch the equity in your home, it can provide a great legacy for your kids or be a wonderful donation to some charity of your choice.
RATES ARE STILL LOW FOR MORTGAGES IN ONTARIO
- If you’re thinking of buying a home or refinancing your home in Ontario, it’s still a good time to get financing.
- Canadian rates are still very low and the housing market in Canada is resilient, comparatively speaking.
Call (800) 722-7172 use our 30 second form for a free consultation.
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