Newcomers’ Guide to Mortgages in Canada: Making Homeownership Possible

For newcomers to Canada, the dream of owning a home can feel distant and overwhelming. With a new country to explore and a plethora of financial options to navigate, it’s essential to have a reliable guide on the journey to homeownership. In this comprehensive guide, we will walk you through the ins and outs of mortgages in Canada, and how licensed mortgage brokers and mortgage experts can make your dream of homeownership a reality.

Understanding Mortgages in Canada

Before diving into the process, let’s start by understanding what mortgages are and how they work in Canada. A mortgage is a loan used to purchase a property, where the property itself serves as collateral for the loan. The lender provides the funds for the property purchase, and the borrower (homebuyer) makes regular mortgage payments to repay the loan over time, typically with interest.

Finding the Best Mortgage Brokers for First-Time Buyers

As a newcomer to Canada, navigating the vast mortgage market may seem daunting. However, with the right assistance, the process can be much smoother. Licensed mortgage brokers are professionals who act as intermediaries between lenders and borrowers, helping you find the best mortgage deals tailored to your needs. They have extensive knowledge of the market and can guide you through the various options available, ensuring you make an informed decision.

Benefits of Working with a Mortgage Expert

Mortgage experts are invaluable resources when it comes to making one of the most significant financial decisions of your life. They can provide personalised advice, taking into account your unique financial situation, credit history, and future goals. A mortgage expert will help you understand different mortgage types, interest rates, and prepayment options, ensuring you choose the best mortgage for your circumstances.

Types of Mortgages for Newcomers

As a newcomer, you have access to various mortgage options that cater specifically to your needs. These include programs designed to assist first-time buyers, such as the First-Time Home Buyer Incentive and flexible down payment options. A licensed mortgage broker or mortgage expert will guide you through the eligibility criteria and help you determine the most suitable mortgage type for your situation.

Preparing for Mortgage Approval

Before applying for a mortgage, it’s essential to get your financial house in order. As a newcomer, building a good credit history is crucial, as it will play a significant role in your mortgage approval process. Paying bills on time, keeping credit card balances low, and avoiding new credit applications will positively impact your credit score. Additionally, having a stable source of income and a healthy down payment will enhance your chances of mortgage approval.

Navigating the Mortgage Application Process

With the help of your licensed mortgage broker, you’ll be ready to embark on the mortgage application process. They will gather the necessary documents, submit your application to various lenders, and negotiate on your behalf to secure the best mortgage terms. Throughout the process, your mortgage expert will keep you informed, ensuring a smooth and stress-free experience.

Closing the Deal and Becoming a Homeowner

After your mortgage application is approved, you’re on the path to homeownership! Your licensed mortgage broker will assist you in finalising the details and arranging the closing of the deal. Once all the paperwork is complete, you’ll officially become a homeowner, ready to embark on a new chapter in your life.

In conclusion, the journey to home ownership in Canada can be made possible and enjoyable with the guidance of licensed mortgage brokers and mortgage experts, like Pankaj Aggarwal, the ace mortgage broker from MyMortgageConsultant. With their knowledge and expertise, you can find the best mortgage deals for first-time buyers and navigate the process with confidence. Remember, owning a home in Canada is not just a dream; it can be your reality!

Finding the Best Mortgage Broker in Mississauga: Your Key to Securing the Perfect Home Loan

Find a Mortgage Broker In Mississauga

Purchasing a home is a significant milestone in one’s life, and it often requires obtaining a mortgage to make this dream a reality. Navigating the complex world of mortgages can be overwhelming, but with the assistance of a knowledgeable mortgage broker, you can simplify the process and increase your chances of securing the best loan terms. In this article, we will explore the benefits of working with a mortgage broker, discuss the importance of finding the right broker in Mississauga, and provide you with valuable insights on how to choose the best mortgage brokerage for your needs.

The Role of a Mortgage Broker: A mortgage broker acts as an intermediary between borrowers and lenders, connecting individuals seeking a mortgage loan with the financial institutions that offer them. Unlike loan officers who work directly for a specific lender, mortgage brokers have access to a wide range of lenders and loan products. This gives borrowers the advantage of having multiple options to choose from, allowing them to find a mortgage that suits their specific needs and financial circumstances.

Mortgage brokers play a crucial role in guiding borrowers through the mortgage application process. They assess your financial situation, help you understand the various mortgage options available, and provide expert advice on the best loan terms and interest rates. By leveraging their industry knowledge and extensive network, brokers can negotiate with lenders on your behalf, potentially securing better terms than you could obtain on your own.

The Importance of Choosing the Right Mortgage Broker: Selecting the right mortgage broker is vital to ensure a smooth and successful home buying experience. When it comes to Mississauga, a thriving city in the Greater Toronto Area known for its real estate market, finding a knowledgeable and reputable broker is crucial.

First and foremost, a competent mortgage broker in Mississauga will have a deep understanding of the local real estate market and the specific lending practices and regulations in the area. This knowledge allows them to provide you with accurate and tailored advice based on the intricacies of the Mississauga housing market.

Furthermore, a reliable mortgage broker will take the time to understand your unique financial goals and circumstances. They will analyze your credit history, income, and debt-to-income ratio to assess your eligibility for various mortgage products. By comprehensively evaluating your situation, they can identify the most suitable lenders and loan options for you.

Additionally, a reputable mortgage broker will prioritize transparency and clear communication throughout the entire mortgage process. They will explain the terms and conditions of different loan options in plain language, ensuring you fully comprehend the details. They will also keep you informed about the progress of your application and any necessary documentation, making the experience less stressful and more manageable.

How to Choose the Best Mortgage Brokerage in Mississauga: To find the best mortgage brokerage in Mississauga, you should consider the following factors:

a) Reputation and Experience: Look for a brokerage with a solid reputation in the industry and positive customer reviews. Experience is key, as it indicates the broker’s ability to handle various scenarios and find solutions for different clients.

b) Lender Network: A brokerage with an extensive network of lenders increases your chances of finding the most favorable loan terms. Ensure the broker has access to a wide range of lenders, including major banks, credit unions, and alternative lenders.

c) Industry Knowledge: Choose a broker who stays up to date with the latest trends, regulations, and mortgage products in Mississauga. They should be knowledgeable about government incentive programs, interest rate fluctuations, and other relevant factors that can impact your mortgage options.

d) Personalized Service: A good mortgage brokerage will prioritize personalized service, taking the time to understand your specific needs and financial situation. They should be readily available to answer your questions and provide guidance throughout the process.

e) Transparent Fee Structure: Inquire about the broker’s fee structure upfront to avoid any surprises later. Reputable brokers will be transparent about their fees and disclose them clearly.

Conclusion

My Mortgage Consultant helps in Securing the best mortgage loan in Mississauga is made easier with the assistance of a knowledgeable and reputable mortgage broker. Their expertise, lender network, and personalized service can help you navigate the complex mortgage landscape, leading to better loan terms and increased chances of homeownership. By considering factors such as reputation, experience, lender network, industry knowledge, and personalized service, you can find the best mortgage brokerage in Mississauga to guide you on your path to owning your dream home.

Unlocking Opportunities: The Crucial Role of Mortgage Agents in Modern Business

Unlocking Opportunities The Crucial Role of Mortgage Agents in Modern Business

In the ever-evolving landscape of modern business, mortgage agents play a crucial role in facilitating financial transactions that drive growth and success. From private mortgages to commercial loans, these knowledgeable professionals act as trusted advisors, guiding individuals and businesses through the complex world of borrowing and lending. There are invaluable contributions made by mortgage consultants, in the way they unlock opportunities for individuals and businesses alike.

Private mortgages have gained popularity as an alternative lending option in recent years. Mortgage agents specialise in helping individuals secure these loans, leveraging their expertise to navigate the intricacies of private financing. By assessing clients’ financial situations, offering tailored solutions, and connecting them with suitable private lenders, mortgage agents empower individuals to fulfil their real estate aspirations, bridge financial gaps, or overcome credit challenges.

For businesses, access to capital is often essential for growth and expansion. Commercial loans serve as a lifeline, enabling entrepreneurs to launch new ventures, expand operations, or invest in innovation. Mortgage agents play a pivotal role in facilitating commercial loan transactions, connecting businesses with lenders who understand their industry-specific needs. Through careful analysis, negotiation, and structuring of commercial loans, mortgage consultants help businesses secure the funds they require to thrive in the competitive business landscape.

Applying for a mortgage can be a daunting task, especially for first-time homebuyers or entrepreneurs seeking commercial financing. Mortgage agents simplify this process by providing guidance, streamlining paperwork, and advocating for their clients’ best interests. With in-depth knowledge of lending criteria, mortgage agents assist clients in assembling comprehensive mortgage applications that increase the likelihood of approval. Their expertise extends to navigating complex documentation, ensuring compliance, and liaising with lenders on behalf of their clients, saving them time and effort.

Mortgage agents possess a deep understanding of market trends, interest rates, and financing options. Armed with this knowledge, they offer valuable insights to clients, helping them make informed decisions. Mortgage consultants like MyMortgageConsultant, the ones from Mississauga, negotiate with lenders to secure competitive interest rates, favourable terms, and flexible repayment options. By leveraging their network of financial institutions, mortgage agents ensure clients receive the best possible mortgage rates, ultimately saving them money and enhancing their financial well-being.

Mortgage agents are essential players in the world of modern business, providing expert guidance, unlocking financial opportunities, and streamlining the mortgage application process. From private mortgages to commercial loans, their knowledge, negotiation skills, and market insights empower individuals and businesses to achieve their goals. Whether it’s securing the dream of homeownership or fueling business expansion, mortgage consultants play a pivotal role in navigating the complex world of borrowing and lending. Their dedication to serving clients, coupled with their expertise, establishes them as invaluable partners in the pursuit of financial success.

Expert Guidance for First-Time Homebuyers: Navigating the Mortgage Market with Mortgage Consultants

Mortgage Consultant for First time buuer blog Image

Buying your first home is an exciting and significant milestone. However, navigating the complex world of mortgages can be daunting, especially for first-time homebuyers. This is where mortgage consultants can provide invaluable expertise and guidance. In this article, we will explore how mortgage consultants assist first-time homebuyers in navigating the mortgage market, including refinancing options, B-lender banks, and private commercial mortgage lenders. With their assistance, you can make informed decisions and secure the best financing options for your dream home.

The Role of Mortgage Consultants: Mortgage consultants are professionals who specialize in mortgage financing and work as intermediaries between borrowers and lenders. They have in-depth knowledge of the mortgage market, including various loan products, interest rates, and lending criteria. Mortgage consultants guide first-time homebuyers through the entire mortgage process, from pre-approval to closing, ensuring a smooth and informed experience.

Benefits of Mortgage Consultants for First Time Home buyers:

  1. Expert Advice: Mortgage consultants assess your financial situation, discuss your homeownership goals, and provide personalized advice. They help you understand the different mortgage options available and recommend the most suitable products based on your unique needs and financial capabilities.
  2. Access to Multiple Lenders: Mortgage consultants have access to a wide network of lenders, including traditional banks, credit unions, and alternative lending institutions. This enables them to present you with a range of mortgage options and help you compare rates, terms, and conditions to find the best fit.
  3. Refinancing Opportunities: Mortgage consultants can guide you through the process of refinancing your mortgage. They assess your current mortgage terms, evaluate your financial goals, and identify opportunities to reduce interest rates, lower monthly payments, or access equity for other purposes.
  4. B-Lender Banks: For first-time homebuyers who may not meet the strict requirements of traditional lenders, mortgage consultants can provide insights into B-lender banks. These lenders specialize in serving borrowers with lower credit scores or unique financial situations. Mortgage consultants can help you navigate the application process, explain the terms, and secure a mortgage that suits your needs.
  5. Private Commercial Mortgage Lenders: Mortgage consultants also have knowledge of private commercial mortgage lenders who offer alternative lending solutions. These lenders are typically individuals or organizations that invest in real estate by providing loans secured by the property. Mortgage consultants can guide you through the application process and help you explore these private lending options.

Conclusion: When embarking on the journey of homeownership as a first-time homebuyer, having the support and expertise of a mortgage consultant is invaluable. Their guidance through the mortgage market, including refinancing options, B-lender banks, and private commercial mortgage lenders, ensures you make informed decisions that align with your financial goals. By working with a mortgage consultant, you can navigate the complexities of mortgage financing, secure favorable terms, and embark on the exciting path of homeownership with confidence.

Reviving Your Slumping Business: The Power of Refinancing

best refinance Mortgage consultants in canada

In the ever-evolving landscape of business, slumps and challenges are inevitable. As a business owner, you may have found yourself in a slump, struggling to meet financial obligations, or facing mounting debt. But fear not! There’s a powerful financial tool that can help breathe new life into your struggling business—refinancing. In this blog, we’ll explore how refinancing can be a game-changer, bringing a breath of fresh air to your enterprise. We’ll delve into the benefits, discuss options such as best refinance mortgage consultant in Canada and no credit check business loans and shed light on the average refinance closing costs.

The Benefits of Refinancing:

Refinancing offers a myriad of benefits that can significantly impact your business’s financial health and long-term success. Here are some key advantages to consider:

a. Improved Cash Flow: Refinancing allows you to renegotiate your existing loan terms, potentially lowering interest rates and extending the repayment period. This results in reduced monthly payments, freeing up valuable cash flow that can be redirected towards business operations, expansion, or debt consolidation.

b. Debt Consolidation: If your business is burdened with multiple high-interest loans or credit card debts, refinancing provides an opportunity to consolidate these obligations into a single loan. This simplifies your financial management and may result in lower interest rates, saving you money in the long run.

c. Lower Interest Rates: As market conditions change, interest rates fluctuate. By refinancing, you can take advantage of favourable interest rate environments, potentially securing a lower rate than what you initially agreed upon. This can translate into substantial savings over the life of your loan.

Exploring Refinancing Options:

When considering refinancing for your slumping business, it’s crucial to explore the various options available. Here are two popular avenues worth considering:

a. Refinance My Mortgage: If you own the property where your business operates, refinancing your mortgage can be a wise move. By leveraging the equity in your property, you can access additional funds that can be reinvested into your business. This can provide much-needed capital to address immediate financial challenges or fund growth initiatives.

b. No Credit Check Business Loans: Traditional lenders often rely heavily on credit scores to determine loan eligibility. However, for businesses with less-than-ideal credit histories, no credit check business loans offer an alternative solution. These loans focus more on your business’s cash flow and potential for future success, making them accessible to a wider range of businesses.

Understanding Average Refinance Closing Costs:

When considering refinancing, it’s essential to factor in the average refinance closing costs. These costs typically include appraisal fees, loan origination fees, title search and insurance fees, and other administrative expenses. While the exact figures vary depending on the size and complexity of your loan, it’s crucial to budget for these costs upfront. Working closely with your lender and conducting thorough research will help you determine the average refinance closing costs associated with your specific situation. When your business is in a slump, refinancing can be the breath of fresh air it needs to regain momentum and thrive. By improving cash flow, consolidating debt, and potentially securing lower interest rates, refinancing can provide the financial boost necessary for your business’s revival. Use the brilliant opportunities provided by exceptional private mortgage firms like My Mortgage Consultant to be where you want to be.

Here’s where mortgage rates and home prices may be headed in 2023

On The 1st of January 2023, Canada passed a law that essentially stops foreigners from buying any residential property in Canada for the next two years. This all has its beginning in the early days of the COVID-19 pandemic when the world was pushed into lockdowns and the Canadian government brought down the interest rates to appease everyone into starting spending again.


It worked! In fact, it worked a bit too well, and soon the markets were flooded with people wanting to buy properties left right, and center. This frenzy caused a deficit in availability resulting in the prices going up exponentially quite quickly. The government tried to intervene by raising the interest rates gradually resulting in steep interest rates within a year.

Some speculated that this was all due to foreigners also interested in Canada’s growth and buying properties in Canada just for the sake of investments, robbing Canadians of their right to buy a home at affordable prices. The law restricting foreigners from buying a property comes across as a shock. Canada’simplementation of a ban on foreigners purchasing property could potentially have a negative impact on the country’s image internationally.

For one, such a ban may be perceived as discriminatory and unwelcoming to foreigners, which could deter people from wanting to visit or invest in the country. This could have a negative effect on tourism and foreign investment, both of which are important drivers of the Canadian economy. Additionally, a ban on foreign property purchases may be seen as protectionist and inward-
looking, which could damage Canada’s reputation as an open and inclusive society. This could lead to a decrease in international goodwill and cooperation, as other countries may view Canada as less friendly and welcoming. It’s worth noting that there are already some restrictions in place on foreign property purchases in Canada, such as the requirement for foreign buyers to obtain government approval before purchasing real estate. However, a complete ban on foreign property purchases would likely be seen as a significant escalation of these measures and could have much more significant consequences. Even Canadians buy property in other countries as vacation homes and winter homes to get away from the frigid cold of Canada. Canadians also buy property in other countries as an investment. Isn’t it a bit too narrow-minded to think only Canadians should be able to buy in other places while Canada bans foreigners from buying property in Canada.

Ultimately, the decision to implement a ban on foreign property purchases in Canada would need to be carefully weighed against the potential negative impacts on the country’s image and economy. The impact that the policymakers are hoping for, in the form of providing affordable housing, might still be out of reach or modest in reality. Canada truly needs to retrace its steps a bit and take a long hard look at what it wants to achieve and how to do it in a manner that does not hurt its reputation.

Reasons to get private mortgages, the mortgage broker


Have you ever felt helpless financially? Want to make your dream home a reality but your financial situation does not allow it? Everyone in their lives has had to get a mortgage loan, be it for any reason. Mortgage loans allow people to make their dreams come true, all while staying in their financial limits and also not compromising on their day to day lifestyle.
Most of the people, when they want to buy a new property, home, look forward to taking out a mortgage loan but getting a mortgage loan from traditional banks and other financial services is not as straight forward as it seems. They have strict regulations and require you to jump through various hoops, just to be eligible for their services. The requirements of having a good credit history, a stable income and others make it quite impossible for some people to get loans. If a person is, say new to a country, he/ she is not going to have a credit history there or if a person is self employed and hence cannot show a regular stable income or if for some reason a person has a low credit score, then their application for a mortgage loan is sure to be rejected by the traditional financial institutions. They have set rules and regulations which do not allow them to make any exceptions. This is where private mortgages step in. Private mortgages do not have any of the above mentioned restrictions. As they are privately run businesses, all they care about is profitability. This makes them much more approachable and accessible. They generally offer easy mortgages to people with less than ideal credit scores and cannot wait for credit repair or if the duration of required mortgage is unusually short or long as well. They are usually not worried about how and how much you earn or if you have a stable income to show. For people with such shortcomings, private mortgages prove to be incredibly helpful.
Moreover the time it takes in traditional financial institutions to approve a mortgage loan is incomparable to time taken by private mortgages. Traditional financial institutions require a long time before they can get anywhere close to approving a mortgage, not to mention the hard work one has to put in to complete their paper work requirements and the daily trouble of following through with them. Private mortgages are usually quick to go through an application and approval process. They require much less paper work and minimum effort from the applicant.
When one applies for a mortgage loan from the traditional financial institutions, they are usually not given the full amount required as these institutions want the applicants to pay at least 20% of the amount up-front. Private mortgages do not have any such requirements and are happy to approve the full amount as quick cash required by the applicant.
All of the above mentioned points make private mortgages a lot more lucrative, especially if you are in a situation where the traditional financial institutions won’t offer you any mortgage loans. Private mortgage loan brokers help you get timely help without the hassle. If can find a mortgage broker that is experienced and dedicated, half of the work is done.
For such an accessible and easily approved private mortgage loan you can contact Pankaj Agarwal from Mortgage Alliance. Pankaj Agarwal has been a mortgage broker who has been in the business for a long time now and has made a name for him-self by providing incredibly fast and efficient mortgage loan service.

Fixed V/s Variable Mortgage Rate ?

2 mins read

My Mortgage Consultant Advice –

Canada’s economy is only expected to recover fully by 2022, with vaccination rollout permitting and people completely getting back to their work. So 2021 is going to be a financially challenging year, with Canadians struggling with their sinking financial health.

Mortgage rates are all-time low, it is time for Canadians to decide whether 2021 is good for locking in fixed rates or go for variable rates or simply save, get out of debt or invest.

Since 2020, mortgage rates have been continuously dropping due to the Covid crisis but since the beginning of 2021, five-year fixed mortgage rates have been showing an ascent while variable mortgage rates are still lower.

Fortunately, if you are currently in the market, you are lucky as despite the increase, rates still remain historically low. Currently, you can easily get a five-year fixed mortgage for as low as 1.5-2%.

Historically, people who have always opted for variable rates in the past decade have saved the money and increased their savings. But this might not continue, as rates are already remarkably low and can only see a rise in the coming months.

With fixed rates rising, is it time for changing the game plan?

Well, it depends. It is essential to choose a mortgage plan that suits your needs. 

The decision of selecting variable vs fixed mortgage rate is one of the major choices that a borrower has to make. These rates can affect them for years to come and could lead to a difference of thousands of dollars.

The sudden rise in the rates has led to the widening of the gap between these two options. This makes it a good time to re-think and re-analyse on the age-old question of fixed vs. variable.

FIXED-RATE VS VARIABLE RATE

Fixed-rate mortgages:

  • In this type of mortgage, the interest rates remain the same over the term of the mortgage. The rate is locked for a period of time, usually 5 years.
  • The rate is a bit higher but offers a sense of stability, consistency in mortgage payment for years to come.
  • However, there is a volatile and dangerous penalty for breaking the mortgage term called Interest Rate Differential Penalty.
  • It is not possible to switch a fixed rate into a variable rate without breaking the mortgage.
  • Lastly, due to less risk, this type of mortgage is predictable, can be easily budgeted for and is convenient.

VARIABLE-RATE MORTGAGES:

These can be of two types where rates can vary with market interest rate generally known as “Prime rate”

1.Adjustable-rate mortgage – In this, the rate automatically adjusts with changes in prime rate, maintaining the original amortization schedule.

2.Variable-rate mortgage – In this total payment amount remains fixed and increasing or decreasing of the prime rate leads to either payment of mortgage interest or principal amount.

In this type of mortgage;

  • The rates float or change with time, due to decisions from the Bank of Canada.
  • The rate is often set using a discount off of the Prime Rate (ex. Prime minus .50%).
  • Mostly the variable rate is lower than the fixed-rate but can involve the risk of being higher anytime.
  • The penalty is lower and precise, unlike in a fixed-rate mortgage for breaking the mortgage.
  • Variable-rate mortgage can be easily switched to a fixed-rate any time without breaking the mortgage.

However, breaking the fixed mortgage can have brutal results leading to costs of thousands of dollars. Many Canadians either break or adjust their five-year mortgage before the term is up due to, i.e. sell the house, refinance it to get equity, etc.

With warnings about rising inflationary pressures, bond yields have surged, which has led to a spike in fixed rates too. While variable rates are still nailed to the floor, a lot of people are planning to convert their variable mortgage into a fixed-rate. As the cost parachute may rise higher.

As variable rates despite the benefits come with the risk of rising or changing anytime.

Mortgage with five-year fixed rates come with risk as well and anyone choosing a five years fixed mortgage today may end up locking in a temporary rise. With inflation fears on the rise, if rates fall back , fixed rates will be more expensive than variables.

So, people who can tolerate some uncertainty and still sleep well can go for variable rates. Whereas, those looking for certainty and cannot worry about the rising costs should prefer a fixed rate.

As the impact and effects of COVID-19 sweep through the Canadian economy, we will witness that even though fixed rates are now considerably low and are a perfect solution for many, the answer for many, would still be variable.

So for figuring out how to pivot, adjust mortgages in 2021, it is highly desirable to consult a qualified and experienced mortgage mentor like My Mortgage Consultant who can run through your calculations and advise on the best-suited mortgage solution.

5 Super Tips to Qualify for the Purchase

2 min read.

Purchasing a home in 2021 is not like the same during pre-covid times. With fuming and
blazing pandemic, instead of open houses, galore people chose to use a virtual listing of the
houses and panoramic 3d tours and this is to continue in 2021 too.
A global pandemic has ignited the Canadian Housing market with pent-up demand and all-
time low supply.
Unfortunately, things don’t end here, there are more aspects to tussle with, like finding the
correct home in your price range and much more. Despite seeing a surge in mortgage rates
in early 2021, it has been predicted that the rates will still be comparatively low. However,
the situation is getting better, as per the economists the disposable income has increased
from 2019, as people constrained their spending and benefited from government plans.
Buying a home is one of the biggest purchases of life. It can be an exciting, thrilling and
nerve-racking experience.
However, getting a mortgage to purchase a home is easier if you pay attention to some
crucial aspects.
If you are planning or preparing to pull the trigger of a home purchase, be sure to employ the
following tips that will help you to stay organized and be prepared to navigate the tricky
market and qualify for the purchase;
1.Keep your Credit Score in Check and make necessary improvements to enhance it:
Credit history and credit score can help in determining your mortgage future. A credit score
above 680 is considered a good and accepted credit score. Mortgage lenders look into your
payment history of bills, credit cards, and your score before qualifying for the home
purchase.
Make sure to pay your bills on time, avoid late payments, conflicts with the creditors, etc.

  1. Job Stability
    Having a stable, consistent job and income are major factors that increase your chances of
    eligibility for the mortgage. Having a constant and unfluctuating job for more than 2 years is
    beneficial, whereas in the case of non-salaried or self-employed income of 2 years is
    considered by the lenders.
  2. Pre-Approval
    With a pre-approval, you will be in a better position to qualify. It makes you more confident,
    gives you the ability to negotiate for a better offer on the home. With pre-approval in hand,
    you will be better equipped and fit to commence your house search. Get Pre-approval today,
    with MMC. 
    4.Know your limits with Calculator
    Too high mortgage leads to dwindling incomes, thereby late payment of bills and bad credit
    score. It is wise to find out your affordability using MMC’s mortgage calculators to estimate
    your monthly costs, down payment etc. Make sure you are comfortable with the costs and
    numbers. Borrowing capacity is a priority of the lenders during qualifying for the mortgage;
    this can be determined with income, assets and liabilities and mortgage calculators can help
    you make the right decision.
  3. Don’t rush the Process

There is a spike in eagerness to purchase homes in 2021 due to historically low mortgage
rates, but that doesn’t mean that you have to rush through the process and make a decision
in haste.
Take ample time, analyse the pros and cons, and then make the decision that is right and
appropriate for you. As purchasing a home is a life-changing decision, don’t settle for
something that is not for you in the rush of finalising things.
Buying a home is likely to be complicated and tricky in 2021. 
With COVID-19, uncertainties have multiplied for the homeowners and buyers like housing
prices, income, tight market and much more. Follow these tips, guidelines that can help you
soften the process and end up with a home you enjoy and can afford with ease.
Contact MMC today for advice from a qualified and experienced agent. With our help, you
can utilise a historic opportunity of record-low rates to save thousands on your mortgage, as
low-interest rates are not going to be low for decades.

Is paying higher mortgage payments to be debt free the right move?

My Mortgage Consultant

1 minute read!

When you purchase a house, the idea of a mortgage or debt dangling over your head for decades can certainly be dreadful and appalling for many of us, and it is common to desire to get rid of the mortgage, the soonest possible.

If you are one of those estate owners who have fortunately achieved few initial steps on the road to financial stability. You have sufficient emergency funds, savings for retirement, or finished your high-interest debt, you are likely to dream of living mortgage-free and owning your home free and clear.

Some people relish the contentedness and tranquility of mind that comes with a financially stable and debt-free retirement. But it is essential to contemplate these warm, comforting feelings against the financial facts and reality. 

But before you determine paying off your mortgage early using your accumulated funds, or significant monthly payments or frequent payments, it is imperative to step back and ascertain if it really makes sense to you financially?

As in certain cases paying off the mortgage early won’t be much beneficial as the savings on interest are not that much. Sometimes, it’s more about peacefulness and freeing up the funds for other options and not about investment returns.

A 30-year mortgage is the most common and has the longest payoff time, but one can choose a short payment term of 15 or 20 years as these come with shorter payoff time and reduced interest rates. Or one can even pay more each month to pay off the mortgage faster.

With record-low mortgage interest rates, it is tempting for some to refinance than to pay off the mortgage as they argue there is no point in paying off the mortgage early. In contrast, others assert that getting rid of debt is always a great idea in an uncertain economy.

It is highly essential to assess the risk tolerance before you make a decision.

So, ask the big question to yourself by weighing the options: is it worth paying more to become debt-free soon?

The benefits of high monthly mortgage payments;

Becoming a free and clear homeowner by getting rid of mortgage debt has several advantages;

1.Saved interest costs: When you pay off your debt early, you pay interest for less time, so ultimately, you will save more money on your interest costs in the long run. So that’s more money for you than for the mortgage lender.

2.More financial flexibility: Paying off the debt in full will free up your cash flow. When you don’t have a mortgage payment to make, your financial strain on the household will be reduced and give you more options and resources to invest or save, and you can do what you like with your funds. Once your mortgage is paid off, it can help you retire smoothly, reduce monthly expenses, minimise your obligations, burden, and expand your retirement dollars further.

3.Peace of mind: Being a homeowner outright eliminates stress and can be a rewarding experience. You don’t have to fret about the bank foreclosing or managing the budget every month. For some, even if it is not making financially much sense to pay off the entire mortgage, you can’t put a price tag on the happiness and serenity you get after being free of debts.

Unfortunately, there are drawbacks of paying off the debt too, and sometimes paying the mortgage early can come at a hefty cost;

When you pay extra bucks each month to repay your debt early, you won’t always be able to do things with those funds like;

1.You’re confining your funds: The extra money you paid on your house is not easy to access. You would have to opt for a cash-out refinance, home equity loan, or home equity line of credit to get those funds back, in case you require or need them.

2.You’re missing out on other opportunities: Mortgage interest rates are still relatively low. The interest you save while paying off the mortgage is only ROI (return on investment), which means seeing the current scenario, you are getting a low return rate.

To get a better ROI, you can invest in the stock market; if your contribution is not sufficient to 401(k), IRA, or other retirement accounts as you are paying high monthly mortgage payments, you are missing out on the tax breaks. As savings in these accounts increase, tax-deferred until withdrawal.

Though there are benefits and drawbacks to both options, you need to cautiously determine the best approach for you.

You could either invest the extra money you would have paid towards monthly mortgage payments to be financially stable or may decide to pay off the debt for peace of mind.

As per your choice, be aware and careful of the downsides so that you can decide after consideration.

It is crucial to take action today, as it is a historic chance to save thousands of dollars that won’t last for decades.

With record-low interest rates, we at MMC can help you make an appropriate decision whether you need to refinance to lower mortgage payments or pull the trigger on a new property purchase! Contact us today!