Mortgages Canada

Closing costs are unavoidable charges on all mortgages in Canada. Some costs are negotiable. In this article we’ll show you which.

There’s a difference in closing costs if you’re dealing with a mortgage broker or directly with the mortgage lender.

Closing Costs with a Mortgage Lender

- Lender Fees

- Lender Fees Paid to 3rd Parties

- Other 3rd Party Fees

Lender Fees

This is your biggest chance to cut mortgage closing costs. Lender fees include: processing, tax service, flood certification, underwriting, wire transfer, document preparation, courier, and lender inspection.

Those fees can be negotiated and waived with some lenders.

Lender Fees Paid to 3rd Parties

Fees guaranteed by lenders to third parties for various services. This may be title insurance, appraisal, home owners insurance and others. Since fees are guaranteed, lenders cannot waive them.

Other 3rd Party Fees

Fees not guaranteed by lender to third parties. Lenders must disclose them to borrowers. Look out for “too good to be true” offers, where closing costs are considerably lower than with other lenders. This usually means lender is trying to lure you in. Also look for disclosure of approximate mortgage closing costs on the lenders website.

Third Party Fees Include:

Taxes and government charges Hazard insurance, fire insurance, flood insurance and other types of home insurance.

In most cases lenders have prearranged deals on insurance and will try to pitch you their partners. You’re always better off shopping yourself.
Escrow Reserve – this is where your money for taxes and insurance is placed for 2-4 months ahead. For example, if your real estate taxes are $50 per month, plus $100 insurance, then lenders will require a prepayment worth 2-4 months ahead. This insures lenders in case borrowers miss monthly payments.

Negotiating Mortgage Closing Costs

Usually borrowers go through mortgage process and try to negotiate closing costs at the end. Challenging mortgage closing costs 2-3 weeks deep into the deal is ineffective. Lenders know that borrowers don’t generally want to go through the process again and are not as generous at cutting costs.

If you negotiate fees at the start, together with interest rates, you can pay less. Since you’re just entering the deal, lenders want to get you as a customer and will do more to achieve it. If it means cutting some costs, most lenders will do it.

Mortgage Closing Costs With Mortgage Brokers

Closing costs with brokers are both easier and more complicated. They are complicated due to mortgage broker fee charged for the services. It may be a percentage of the deal or a flat fee.

Closing costs are easier due to less lender related fees. For the most part brokers deal with wholesale lenders. Since brokers compete with major banks, wholesale lenders eliminate, or waive most the fees usually charged by high street lenders. The fees are processing, tax service, underwriting, wire transfer, document preparation and others.

Third party fees such as appraisal, lawyer fees, mortgage insurance are non negotioable, since they are standard.

The best way to lower closing costs with brokers is to talk to them directly at the start of the mortgage process.

Halifax Online Mortgage Brokers

If You’re Serious About Saving Money on Your Mortgage…

Then you must have the know-how, the sources and experience to get there. The truth is, your bank is after, what you’re after – money. Understand this first. As you do, you will begin to see why it pays to spend time, research and shop for your mortgage. Good things come to those who wait. You will not save a fortune here, no. You will save money, real, solid, red and green monthly dollars, the ones you can put towards furniture, car, education, savings or whatever it is youl want.

How?

Mortgage brokers who do their homework establish lender networks. The networks consist of Canadian Banks, American Banks, international banks, trusts, credit unions and insurance companies. Majority you’ve never encountered. Networks range from 10 to 70(if they really did the homework) financial institutions. This choice gives: up to 500 mortgage options per institution, below best bank interest rates and mortgage loan flexibility.

To you, the home buyer, this means savings from lower interest, less limitations on mortgage options due to broader choice, savings from lower closing costs, fees and royalties. It saves money in your wallet for better car, vacations, education, interior or whatever you have in mind. A subtle difference of 0.25% interest rate on a 300.000% is around $25.000. Numbers speak your language.

Why Banks Decline and Accept Your Application

You see, banks have mortgage options and qualification standards. Credit score, down payment and income are the biggest factors. When you submit your application to the bank, they run it though automatic system(MAUS) which determines your qualification limits. Mortgage officers call you and discuss the options you have within those limits. The next sentence is important, read it carefully.

Every bank, trust, lender, insurance company and credit union has different standards and limitations. Those limitations depend on investment portfolio specific bank wants to have.

Read through it carefully again.

Banks put standards not due to borrowers needs(not fully), but due to their investment objectives. The objectives must satisfy broader goals, shareholders and market share.

One bank is inclined to accept borrowers with best credit score. Another bank might be in the market for borrowers with less than perfect credit. Another lender is after no money down mortgages. A trust company is in for a mix. The options are selected internally and depend entirely on bank objectives. If you submit your application to the bank and they accept, you may fall into the category which they offer, but it is not their primary market. This means the rates and the options you get are not best.

This is why vast access to the lender network works so well. You application gets reviewed and then matched with a lender who offers best deals (according to your credit, income, down payment). You review the options. We explain everything in your language and you select the best option you see fit. A mortgage may have lower interest, but slightly higher closing costs. Another mortgage may have a penalty, but low closing costs and low interest. We consult you on the options, but you take the final call.

Here’s a small glimpse at what you get with MortgagesCanada.ca

• No mortgage fees, no obligation! Lenders pay us for sending in customers. It doesn’t affect your mortgage payments, nor the interest rates.
• Access to 71 Canadian mortgage lenders, banks, unions and trusts. Thousands of Halifax Mortgage Options.
• 9 out of 10 mortgage applicants approved, with number 10 going – I wish I could get on with them!
• Low cut mortgage interest rates!
• Professional mortgage brokers from east to west. Personal consultants in Halifax!\

And while you’re at it:

• Estimate monthly payments with mortgage calculator. Find out how much you can spend on Halifax mortgage per month.
• Learn out about credit score and its relationship with mortgage interest rates.
• Track daily interest rate updates.
• Learn, estimate and calculate mortgage closing costs(around 1,5% – 2,5% of the loan).
• Get your questions answered about first Halifax mortgages at our first time mortgage buyer FAQ.
• Read about mortgage down payment and different down payment options for your Halifax Mortgage.
• Explore first time homebuyer guide.

In an country with instant access to information there is no excuse to come unresearched to mortgage negotiations. Yes, you may be short for time, but… Your mortgage will take a large chunk of your pay. Every month, year after year. Decide wisely.

Read in-depth mortgage tutorials that will teach you on all mortgages. Unbiased, no selling. Designed to educate you on the topic.

If you know enough, consider 72 mortgage lenders. You will find a perfect Halifax mortgage, thats a promise. The savings, will not get you a fortune, but will give you more cash freedom. It will help you get to your desire, which we all hold inside, a little bit faster.

Once you submit the mortgage application it will be reviewed and our mortgage representative will get in touch with you within 24 hours. You will explain what exactly you want and we do the rest. Give us a call directly at 514-397-6832

Once through give a day to pull up all the mortgage options. We then email you or call you and explain what’s avalaible and how it fits. Ultimately, when you like what see, we come down and give you all the papers. You go through it carefully, we expain every thing on the way.

When you’re happy with the interest rates, terms and closing costs, we proceed. A mortgage gets sighed by the lender you selected and yourself.

You’re now a homeowner.

During your mortgage term, give us a call at any time. Ask any questions. We’ll take good care of you.

Wish you the best.

Apply for a mortgage. Explore Mortgage Options.

In this article we’ll discuss the difference in extra mortgage payments and shorter mortgage term. There are few advantages to both.

Example: a $300,000 mortgage loan at 5.5 % interest rate for 20 years and for 25 years.

Principal and interest monthly payments.

20 year mortgage - $ 2,053.17

25 year mortgage - $ 1,831.17

The difference between the two is $222,00 per month. That’s the only difference. You can pay off a 25 year mortgage in 20 years if you pay extra $222,00 every month. With 20 year mortgage you have to pay $2,053.17, with a 25 year mortgage you have to pay $ 1,831.17 and add $222,00 if you prefer to shorten it to 20 years.

The difference lies in flexibility and discipline. If you want to be flexible and occasionally miss the extra payment(at the cost of a longer mortgage), then a 25 year mortgage is for you.

If you want to be strict about it, go with 20 years where you can’t miss any payments.

This applies to any other mortgages such as 15 year vs 10, 20 vs 15 and so on.

A number of mortgage lenders have prepayment penalties, so make sure you don’t sign up for any if you want to make extra payments. Prepayment penalties can be negotiated. They are non-negotiable on bad credit mortgages, until you’ve reached a certain amount.

Interest Rate Updates

Bank of Canada left it’s key lending rate unchanged at 3%.

“The Bank of Canada today announced that it is maintaining its target for the overnight rate at 3 per cent. The operating band for the overnight rate is unchanged, and the Bank Rate remains at 3.25% per cent.” - Bank of Canada

Fixed Rate Mortgage Rate Rise at TD, RBC, Bank of Montreal, CIBC

TD, RBC, and Bank of Montreal rose their 5 year fixed mortgage rates from 6.65% to 7.15%

CIBC upped 5 year fixed mortgage from 6.65% to 6.95%

TD increased 2 year and 3 year fixed mortgages by from 6.15% to 7.00% by 0.85%. 1 year fixed mortgage rose from 6.15% to 6.95%, by 0.8%

Source

New Bank of Montreal Rates

TORONTO, June 12, 2008 – BMO Bank of Montreal today announced it is increasing its residential mortgage rates, effective June 13, 2008. The new rates are:

Source: Bank of Montreal

New RBC Mortgage Rates

Source: RBC

TD Canada Trust Interest Rates

Source: TD Canada Trust

CIBC Mortgage Rates

Source: CIBC

Scotia Bank Interest Rate Updates

6.60 per cent

8.45 per cent

8.70 per cent

6.55 per cent

6.65 per cent

6.65 per cent

6.99 per cent

7.15 per cent

7.60 per cent

8.25 per cent

Source: ScotiaBank

The Shocking Truth About Mortgage Renewal Banks Don’t Want You to Know

As you read every word of this report you will become aware of the fact your lender does not want you to know about mortgage renewal. You will find how you can save yourself real money in monthly payments, interest rates and fees.

We aren’t going to make you rich here, or cut your mortgage by half. You have good judgment to see through those offers. We’re going to show a real way to cut your monthly payments, and safe thousands over your mortgage term, at no cost to you.

Little by little you will begin to see that banks are after what everyone is after. Money! And to get as much money as possible, banks are willing to charge you more. Execs and shareholders, sit in large, dark boardrooms and discuss the moves on how to increase their share value and profits. One way is to charge their existing customers more than they could pay. This is regular business practice. If I can make you pay $1000 per month, instead of $800 why would I ever let you know? It makes all the sense for me to keep it quiet.

Cut Your Red Deer Monthly Mortgage Payments

So what’s the catch with Red Deer mortgage renewals? The catch is this.

Banks like borrowers like you. They love you. Because you pay on time, pay whatever you owe and take care of your home. They’d rather lend to you than to someone with messed up credit or no means to pay for the mortgage. They compete for your business.

You mortgage has a term 6 months, 1 year, 2 years, 5 years or whatever you have. Once the term expires you get a mortgage renewal letter from your lender, which offers you an interest rate and new terms. You might even get a call from the bank!

To continue using the same lender, you simply sign the letter and send it back. That’s where you make a mistake.

Since lenders are after money and new customers, here’s how the situation looks. Your existing lender is aware that most borrowers simply sign the paper and send it back. It’s a fact and they have all the data to support it (from past and existing mortgages). It makes more money for lenders to charge you a higher rate than the best one on the market. It’s a business decision.

If a lender loses a smal percentage of customers to other banks, but recovers and exceeds lost customer value by charging higher interest then the best market rate to existing customers, they will do it. If I can make $1000 from higher interest on renewals, and risk loosing only $300 in lost accounts, that still makes a sound business decision, because $700 is going to be the profit.

On the other hand, when you’re a new borrower, lenders fight for you. You’ve seen the TV commercials, mail ads, banners and promotions at your local bank branch. Those costs money and lenders are willing to spend money in return for new customers.

A Real Way to Pay Less For Your Mortgage Now

It’s simple. Lenders who want more customers offer little or no charge renewals to borrowers who’s mortgage terms are up for renewal. They offer better interest rates then your current mortgage lender and more competitive mortgage terms in order to attract you.

As a result both win. You get better mortgage options, lower interest rates and lower monthly payments. Lenders get new customers.

The best thing, lenders take care of the costs associated with the transfer, because they want new, qualified customers, with clean mortgage payment history!

As you begin to see the whole picture, you begin to realize that the best option you can get is choice. And that’s exactly what we offer. MortgagesCanada.ca takes your application and looks at 60 Canadian Banks, Lenders, Trusts, International Banks, American Banks and Insurance Companies(view all). We then give you a pool of the best options and select the one you like. That’s it! No charges. We get flat commission from lenders, that has no impact on your mortgage principal, interest or monthly payments.

Here’s a small sample of what you’ll receive:

- Get a selection of mortgage renewal from vast network of Canadian mortgage lenders, so you have a choice

- Receive interest rate quotes.

- Receive monthly payment estimates, so you know up front what you payments are

- No service fees. Lenders pay us flat fee for your business.

- a 24 hour processing of your mortgage renewal application, so you spend minimum time on this issue and get back to your life, with less monthly payments
When you switch your mortgage you begin to save on monthly payments. The amount depends on current interest rates. Since you will be a new customer, you’ll be saving money on lowest rates, because those are the rates that banks offer to new customers!. As a result, you can spend more money on yourself, your family, or save up for whatever it is you want. There’s isn’t a good reason to turn down the offer. There’s no charge. You pick the lender and save money in years to come.

Once you begin the process we’ll answer any questions and concerns you have, either by phone or email(whichever you prefer). In order to apply for a mortgage, you will have to fill out the mortgage form or give us a call at 514 - 397 - 6832. The process takes a couple of minutes. Once we find you a mortgage you like, we prepare all the papers and documents. We talk to your bank, let them know you’re switching and prepare documents for your mortgage renewal.

The information you’ll need are some copies of past mortgage payments. That’s all. Our lenders will need to see past payment history. No credit, no income verification, just the past payment history.

Once all settled, you get your mortgage, cut your payments and stay with more cash in the wallet for years to come.

Apply now for a mortgage Renewal in Red Deer and slash the interest rate. Make yourself a small treat. It costs nothing.

Bank of Canada to lower interest rates

All of Canada’s primary securities dealers predicted Friday the Bank of Canada would cut its overnight interest rate by 25 basis points next week, and most said the bank would then move to the sidelines through September.

The 12 dealers, surveyed by Reuters, forecast that the central bank will cut its key rate to 2.75 per cent from three per cent at its next fixed announcement date on Tuesday.

But dealer forecasts for the central bank’s key rate at year’s end ranged from 2.25 per cent to 2.75 per cent, with one dealer expecting two cuts in the fourth quarter.

Source: Calgary Herald

Mortgage Insurance CMHC Mortgage

On every loan with less than 25% down payment you need mortgage insurance. Mortgage insurance is around 30$ - $60 per every $100,000 per month.

Mortgage insurance is provided by CMHC and GE Capital.

CMHC – Canadian Mortgage and Housing Corporation.

CMHC was founded in 1946, to make homes more accessible to Canadians. The reason why you’re required to have mortgage insurance with less than 25% downpayment is due to fluctuating real estate values. The higher the proportion of borrowed money, the higher the risk that the property wont cover the total amount of the loan. Property values fluctuate. If you put down 5% of the property value and it falls down 8%, then lender losses money in case you can’t repay.

Mortgage insurance insures lenders their loan will be repaid.

CMHC will insure 90% mortgages and 95% mortgages for first time home buyers.

You must meet basic requirements to get a mortgage insured by CMHC:

- Minimum 5% down payment.

- Maximum Gross Debt Service (GDS) ratio of 32%. GDS is the combination of mortgage payments, property tax payments, heat, and 50% condos fees(for condos). Total cannot exceed 32% of whatever you earn per month.

- Maximum Total Debt Service Ratio(TDS) of 40%. TDS is the combination of mortgage payments, property tax payments, heat, 50% condos fees(for condos) – PLUS all other debt payments, such a car payment or credit card payments.

- You must show CMHC you can pay 1,5% of the house purchase price in mortgage closing costs.

Other programs available with CHMC

RRAP - Residential Rehabilitation Assistance Program

For households with low income, government provides grants to make necessary repairs, such as leaks, cracks, etc.

RRAP also gives grants to landlords who want to make their housing accessible to disabled people. Landlords have to follow certain conditions as a result.

Home Buyers Plan.

With home buyers plan, house buyers can take out up to $20.000 from the Registered Retirement Savings Plan for down payment at no interest. The amount must be paid in full within 15 years and can repaid anytime borrower wants. Find out more about RRSP.

Visit CMHC website.

Levis Second Mortgage Loan

Imagine your home as a large ATM machine. Imagine it pays for your vacation, new car, education, renovation and day to day expenses without asking anything in return?

Really?

It’s called home equity loan or second mortgage in Levis. Second mortgage is loan against equity in your home. Your home grows in value with time. Whatever the amount it grows is called home equity. For example. You bought a house for $300.000.

With:

In 10 years you paid out $70,000 and your home price grew by $120,000

Whatever is your home equity – you can borrow as a second Levis mortgage. This is called home equity mortgage. Unlike all other mortgages, you borrow money against the house, while still living in it. Spend money on a new car, vacations, renovations or whatever you deem appropriate. Nice.

In order to qualify for a second mortgage in Levis, you don’t need to verify income, credit score or employment. In fact there is not need to verify anything, other than your ownership of the home.

Get a Home Equity Loan in Levis, QC

In order to apply for a second mortgage in Levis, Quebec, give us a call at 514 - 397 - 6832 or fill out online mortgage application. We’ll be in touch with you in a couple of hours(business days). You will explain the details and our representatives will guide you step by step through the process. You’ll get your questions answered and get a step closer to your second mortgage in Levis.

We then shop our 60 lenders, banks and credit trusts for a second mortgage. Qualification isn’t complicated, since mortgage lenders like borrowers who have equity and pay their mortgages on time, so you have nothing to worry about.

Once you are happy with the mortgage terms and interest rates, we sign the papers together and off you go – a second mortgage in Levis is yours! Lender, that you finally select, transfers the mortgage amount to your account and you are free to use the money as you like.

Every month you will receive statements with monthly Levis second mortgage payments. Take care of those payments well.

With MortgagesCanada.ca Levis second mortgages:

- No need to verify income, credit score and employment

- Instant mortgage approval

- Lower mortgage rates then other mortgages. Check our latest mortgage interest rates.

Education, health and good times cannot be bought with money. It is people that make them possible. Home equity is the back-end of attaining it. It is a step towards the goal. Your home equity can help you get accomplish your goal or rest from everyday routine in a peaceful gateway.

Once you get a Levis second mortgage, feel free to call us and ask any questions. It’s even possible to get you a different option. Since mortgage rates change, you can refinance the second mortgage to different options or interest rates. We will be with you all along. Feel free to call us any time.

Apply for a second in Levis now. Call us at 514 - 397 - 6832 or fill out our mortgage application.

OTTAWA — A panel of nearly a dozen non-government economists Thursday urged the Bank of Canada not to go ahead with an expected further interest-rate cut next week, with some members actually voting for a rate hike instead

Those favouring a rate cut stressed recent weaker-than-expected indicators, such as the contraction in the economy in the first quarter and the impact of the sluggish U.S. economy. It noted that flagging global demand would bring down energy and food prices.

Those favouring a higher rate emphasized the strength in the job market, the economic boost from the increased global purchasing power of the Canadian dollar and accelerating global inflation.

You can read full article by Financial Post.

- Lower Mortgage Payment

There are numerous ways to lower your mortgage payment.

The more money you put down, the lower mortgage payments you will get, since you will borrow less money.

If putting more money down is not an option, refinance can be a good idea to lower mortgage payments. In the light of recent years, interest rates went down and many families took advantage of lower interest rates, which cleaned up the room for more cash on hands.

If you are paying private mortgage insurance(PMI), canceling it at 20% of the principal may lower mortgage payments as well.

Add extra cash to the principal. If you get extra money on hands, it is a good idea to channel some of that cash to pay the balance on the value of your house, since it can lower your mortgage payments long term.

In some cases too much debt on too many credit cards may be eating out essential income, so getting rid of plastic cards and getting debt consolidation loan(all in one mortgage) may help you with monthly payments. Though the mortgage payments will go up, you might free more cash on other fronts and pay less in overall monthly bills.

- Bi Weekly Mortgage Payment

Bi-Weekly mortgage payment plan is a great way to shorten mortgage life and pay less overall interest. Lenders split monthly payments into two equal chunks, which you are required to pay every two weeks. With bi weekly mortgage payment plan you end up paying 13 month worth of payments in total year, due to the number of weeks in a year.

There are 52 weeks in a 365 day year. 52 divided by 2(every two weeks) gives us 26, meaning that you will make twenty six bi weekly mortgage payments in a year, which is equal to 13 months(as opposed to 24 for 12 months). Lenders simply structure the initial start of the bi weekly mortgage plan to make sure you pay 26 times.

Every extra dollar that you pay on a bi weekly plan goes towards reducing principal (overall mortgage). As principal goes down, so does the length of a mortgage and the interest paid over time, meaning you save money. In a nutshell, you will make one more month of payments, reducing life span of a mortgage by an average of 7 years.

Many lenders require a nifty fee for setting up bi weekly mortgage payment plan, however you can save thousands of dollars long term.

- Mortgage Payment Protection

Mortgage payment protection, sometimes called mortgage insurance is a practical way of securing your monthly mortgage payments in case of an emergency. Mortgage payment protection is quite cheap, but it can provide piece of mind, since lenders are never hesitant to move to the foreclosure due to missed payments.

Mortgage payment protection is usually offered by lenders themselves, however, it is best to go to third party companies, since they provide better deals and better coverage on mortgage payment protection plans.

Basic coverage includes:

• Illness
• Accidents
• Involuntary unemployment

Factors such as age, smoker/non-smoker play a substantial role in determining rate of the mortgage payment protection insurance. Standard coverage ranges from 12 to 24 months, as insurance companies assume it is enough time to get back on feet. Mortgage payment protection covers full monthly payments, including interest, so you can take out a worry of loosing your house for missing monthly payments.

If you are to make a claim with mortgage payment protection, insurance companies are going to look for proof such as: doctors note, job application, police statement etc. – a common practice among insurance companies.

Unlike other insurances, mortgage payment protection is one of the most useful on the market, since layoffs by multinational corporations have become normal practice and accidents can happen too.