House Mortgage
House Mortgage is a loan secured by real property. Today in Canada home ownership is available with as little as 5% of house value. We refer to that money as downpayment. Bank or independent mortgage lender will borrow you up to 95% of the house value in form of House Mortgage. When you have less than 20% of a downpayment your house mortgage has to be insured against default. House Mortgage insurance is the one time fee which can be added to your total loan amount and amortized over up to 30 years. For the exact amount of house mortgage insurance please consult your mortgage broker.
There are some basic stereotypes about problems with getting a house mortgage. Of course, if you're a new to Canada, self-employed and have a bruised credit history, it’s quite difficult to get a loan. But still there are ways to do it. The main thing is how to present yourself to a mortgage lender.
All lenders want their borrowers to meet certain requirements and criteria. Here are the basic ones:
- Capacity — a lender needs to know if your income is enough to pay the house mortgage even with all your other debts included.
- Capital — the size of your down payment should be sufficient and reduce the risk to your lender.
- Collateral — your property market value has to cover the amount borrowed.
- Character — a lender needs to be sure about your good reputation and reliability, which is based on your education, employment history and residence.
- Credit — your credit history shows your debt records in the credit-bureau for the past six years.
And, of course, if you are weak at even one of these items, a prime mortgage lender might reject your application for a house mortgage. Meanwhile, there are many other alternative financial institutions on the market. So you may get a short or mid-term house mortgage solution until you are ready to switch to prime lender.
The main thing is to present yourself in the best way, underlying your better sides.
All lenders want to be sure you are a responsible and reliable person, that’s why you need to show it as well as you can. For instance, if you are new to Canada, some lenders may consider you based on your steady employment, your down payment or alternative ways of credit history confirmation (e.g. timely rent payments, utilities bills).
If you’ve just become a self-employed and can't prove a regular income yet, the lender may look at your credit history and previous experience in the same field.
And even if you have a poor credit history, there are still ways to get a loan. Make sure you have reasonable explanation to the previous problems and do everything possible to get rid off debts and improve your credit. In this case your current stable income and solid down payment may be enough for a lender to see you can be trusted, then search for the right lender.
Every lender has its own requirements. That’s why a professional house mortgage broker can help you find the one that fits your situation. An experienced mortgage broker can also help you make all necessary preparations for presenting yourself to the lender.
As we all witnessing - economy in Canada is recovering from the Global Financial Crisis, people have spent a lot of their efforts looking to find ways to buy properties and arrange House Mortgages because the interest rates in Toronto are at a level that is very favorable for consumers.
Best option is to go with a mortgage brokerage firm in Toronto, and there are many of those to consider as well. The question now becomes, which lending institution is better suited to help, a bank or a mortgage broker? One mortgage brokerage firm in Toronto that has over 20 years of experience with it and has 2 very qualified mortgage brokers with them is Michael Tulchenetskiy & Denys Derzhavets, ready to assist you to do mortgage refinancing. They will be able to sit down with you, present with you the many different options when it comes to arranging Home Equity Loan. Whether you are new with Equity Loans origination and you are not sure where to turn, Mortgage Broker Michael Tulchenetskiy & Mortgage Broker Denys Derzhavets are here to help you. Conveniently located in Toronto, they service the GTA, including Richmond Hill, Thornhill, North York, Mississauga, Vaughan and Markham.
Offering very competitive rates including 10 Year Fixed Rate Specials, 5 Year Variable rates, mortgage rates at or below prime and 5 Year Fixed Mortgages with the option of cash back, you will be completely satisfied with there ability to provide you with great service and efficient Home Equity Loan, so you get back on track financially. As members of The Canadian Association of Accredited Mortgage Professionals (CAAMP), you have the assurance that you are dealing with recognized professionals in Toronto. Feel free to contact them either by phone, e-mail and they will get back to you to setup a time to come into the office so they can provide you with all the information you need to make a smart decision. You are not obligated to be pressured into any decision that is why, get all your facts straight before you decide what it is you need to do when it comes to originating Home Equity Loans.
