Month: November 2016
1. What is the penalty to break my mortgage, if I want to upgrade, refinance or sell?
Just how flexible is your mortgage? A no frills approach would be along the lines of a 12-month principle and interest penalty to break the mortgage —which means you may be stuck with the Lender and the terms that they give!
2. What are my prepayment privileges?
You will want to know how much extra you can put toward your mortgage principle-be it monthly or annually. This could mean a basic 0-20% monthly payment with or without an anniversary or lump sum payments. But this begs the question: How much do you REALLY need? Statistics show that 17% make lump sum payments, and 23% of us make additional monthly payments. Statistics show us that most BUT not all of us do not need more than 10% when looking for prepayment privileges but it’s always important to have the additional room when needed.
3. Is my mortgage portable?
This may seem like an odd question, but you will want to be able to bring your mortgage with you with NO penalty and keep your interest rate intact if you sell your current residence and buy another (portable). Often the case may be with a “no frills” mortgage, that you either can’t or you have restrictions placed on it. Also, it’s important to know that if you are in a Variable Rate Mortgage (AVRM) most lenders will not allow you to have a portable mortgage at all.
4. Can I Blend & Extend or Assume my mortgage?
You will want to ask your broker/lender if your rate can be blended or if the additional monies that you want to borrow for purchase can be extended. In addition, finding out if you sell your home, and someone can take over the remaining terms is a key question to ask—with a “no frills” you are out of luck with that one!
5. How long can my Amortization be?
We all want to know: how long will it take to pay off my mortgage (amortization) at the contract rate?? This question is an important one to ask as this impacts debt servicing and monthly payment. With your no frills you have a max of 25 years!
6. Does the mortgage that I am looking for apply to an investment property?
Looking to get into the real estate investment biz? Make sure you get a good broker/lender on your side! A no-frills mortgage won’t let the mortgage you are looking at apply to investment property’s (rental) – leaving you with a higher rate and unlikable terms.
7. What will my rate be if I go from a Variable Rate Mortgage (AVRM) to a Fixed Rate?
Asking this simple question at the start of your mortgage product search, can save you a lot of heartache. With a no frills mortgage you get the Standard Rate, not the best rate—which means you may be paying a lot more than necessary!
8. How is my mortgage going to be registered? Standard or Collateral charge?
A mortgage that is being registered as a standard charge can be transferred/switched at no costs at the time of renewal. A mortgage that is being registered as a Collateral Charge will typically incur a cost in renewing your mortgage that you must pay for.
These 8 questions are the ones you should always ask before signing on the dotted line of a mortgage. They make up the mortgage personality, and help to establish your future! All Dominion Lending Centres mortgage brokers are committed to finding you the best product to meet your unique circumstances. So remember, before you sign make a date with your mortgage and get to know each other a bit better!
There are many reasons people refinance their mortgage, especially before the holiday season. With interest rates at a record low, it may be to shorten the term of their mortgage, lower their interest rate, use home equity to renovate, consolidate debt, or simply for extra cash for the holiday season!
So in the spirit of giving, someone will win both of these Tim Horton’s Gift cards to share with a friend or family member!
To qualify, LIKE both my page AND this post, then tag the person who you’d give the second gift card to! I will draw a name randomly on Dec 1st at noon.
Have you considered leasing your business-related equipment as opposed to buying it outright? Leasing enables business owners to pay for the product as it is being used while the revenue generated by the equipment ‘pays’ for itself. Virtually any other financing demands a substantial down payment, deposit or compensating bank balance. By leasing, business owners can quickly acquire use of the required equipment without major cash outlay.
Leasing can be an especially attractive option given that lease payments can be 100% tax-deductible, which may mean a more rapid write-off for business owners. And because the lease term is generally shorter than the depreciable life of the equipment, payments can be expensed in a shorter duration.
National mortgage brokerage firm Dominion Lending Centres has a leasing division – Dominion Lending Centres Leasing – that offers leasing programs providing 100% financing and requiring minimal investment for the ‘purchase’ of the equipment. Business owners can immediately take advantage of the benefits of the new equipment without using existing capital or credit, and continue growing their businesses. As an alternate credit source, leases don’t interfere with established credit lines, which, in turn, expands available working capital.
Leasing options include new equipment leasing; used equipment and vehicle leasing; customized solutions through vendor finance programs; and lease-backs – where the lender buys equipment from a business owner and the owner leases it back.
Technology, heavy equipment and trailers, furniture and hospitality equipment, and manufacturing and industrial equipment are just a few examples of leasing options available to business owners.
Vendor finance allows equipment vendors to offer customers another financing option besides cash-on-delivery or 30-day terms. On high-ticket items, this can be a major benefit, since it may not be possible for some customers to meet immediate payment terms. By extending the financing option through a Dominion Lending Centres Leasing professional, the vendor provides a choice that allows customers to better maintain their own cash flow.
With access to multiple lending sources, lease professionals can cater to leasing deals for a variety of credit scenarios ranging from A to C credit quality. Leasing provides known payments over a specified period – helping take the guesswork out of budgeting.
As with any licensed mortgage agent who is also a leasing professional, they work for business owners and consumers – not lenders – ensuring all efforts are made to acquire the best available products and rates with their clients’ interests front and centre.