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!