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What is Home Equity? Home Equity is the current market value of your property (home) minus the remaining mortgage balance. How You Can Use the Equity in Your Home to Save On Hefty Interest Charges People have been using home equity for a variety of reasons such as renovation, investing in other real estate property, refinance and even to consolidate debt. In order to facilitate homeowners, lenders have introduced a number of flexible home equity products. The option you choose depends on the amount of equity that you have presently built in your home as well as your own personal reasons for acquiring the extra cash. HELOC or Home Equity Line Of Credit Home Equity Line Of Credit, also known as HELOC is becoming a [...]

What does the new stress test mean? Based on the new regulation, a stress test is now required for all insured mortgage seekers. This means that everyone looking to purchase a new home must undergo these tests to prove that they are capable of continuing their payments even if the interest rates  go up by a significant factor. Up until now, stress tests were not required for fixed-rate mortgages longer than 5 year term. However, with the new Department of Finance regulations in place, all insured mortgages, regardless of fixed or variable term will have to undergo and qualify the stress test.   How does the latest mortgage lending rule affect you? The federal government introduced a new mortgage rate stress test for all insured mortgages [...]

Buying a new home is probably the most arduous process most Canadians will ever undertake. When choosing a mortgage, you need to consider many factors. If you get the wrong combination, you may have to suffer the consequences for many years or pay a penalty. We meet people seeking to change their closed mortgages all the time. Usually, this is because they have realized they are getting a raw deal. How can you avoid such a scenario before you even sign on the dotted line? Knowing how a mortgage term affects your mortgage is one of the ways. Why does the term matter? In Canada, mortgages are available in almost any amortization period-5, 7, 10, 15, 20 and 25 years. In your search escapades, you will [...]

Are you thinking if a Lowest Mortgage Rate is always the Best Rate for you? At Oakville Mortgage Solutions, a great mortgage rate is just the beginning. Mortgage Rates are usually the first thing to cross your mind when looking for a mortgage. That's normal as mortgage rates have been a subject of rivalry among lenders in Canada. This war has continued this year with a leading Credit Union announcing a 1.69% fixed rate mortgage a couple of months ago. According to experts, this could be the lowest one-year fixed rate available. You can expect other players to follow suit in a bid to get a slice of the vibrant mortgage market. Are such low rates necessarily the best for you? We do not think so. You [...]

With mortgage rates still on record lows in Canada, it might be the perfect time to get a good deal on your mortgage. Many Canadians believe that only banks can offer sound advice on mortgage matters. Although banks have different mortgage products, they may not suit everyone, and mortgage brokers always offer an ideal alternative. A recent survey by the Canadian Association of Accredited Mortgage Professionals (CAAMP) showed that most first time home buyers and young Canadians use brokers when getting a mortgage. Here are a few ways in which your broker could play a crucial role in your home purchase. Best Rates in the Market Brokers are your best bet if you are looking for a good rate in the market. Mortgage brokers deal with [...]

Mortgage rates are dipping and homeowners in Ontario are seriously thinking about the relationship between a new mortgage and savings. For those who are working with adjustable rate mortgages, the allure for the certainty offered by the fixed rate option has never been stronger. If your fixed rate dates back to 2010 or earlier, I am almost certain the current mortgage rates in Ontario are much lower than your rate. This alone should motivate you to refinance. Definitely, there are other benefits too as we will see.   Reasons to Refinance and how much you can potentially save Interest Rates Do you have a five-year mortgage with a few years, say three, to go? Refinancing the mortgage can save you thousands of dollars and reduce [...]

If you are feeling the pinch of Financial Debt, take heart, you are not alone. In Canada, Consumer debt is on the rise and about 80 to 87 percent of that is mortgage debt. Homeowners that are most affected are in Ontario, British Columbia and Alberta where house prices have escalated. Are feeling overwhelmed by debt? Sometimes we don’t consciously recognize we have debt problems, but at times can feel a gnawing feeling of being afraid or a general angst.   Even if we are aware of an issue with debt, it can be a tough thing to admit, let alone get help. At times it’s due to knowing something needs to change, we are embarrassed, acknowledging it makes it real or at times just have [...]

If you are a newcomer and immigrated/relocated to Canada within last 60 months, let a professional Mortgage Broker at Oakville Mortgage Team help you realize your dream of homeownership.  Qualified homebuyers who have immigrated or relocated to Canada within the last 5 years are eligible, under the New to Canada program, to purchase a property with as little as a 5-10% down payment.  The Oakville Mortgage Team knows how you can increase your chances of success and will help you realize your dream of homeownership in Canada.  Some important guidelines to qualify for a mortgage are: 3 months minimum full time employment in Canada (borrowers being transferred under a corporate relocation program are exempt).  Standard income and employment verification requirements apply. Note:  If you have [...]

Decisions you make on your mortgage should not just be about getting best mortgage rates.  Make an Informed Decision on your Mortgage and find out more about a Conventional Mortgage versus a Standard Mortgage.  There are advantages and disadvantages to both mortgages, depending on your mortgage needs. Standard Mortgage –  Standard charge mortgages are offered by the majority of lenders, although some offer both – standard charge mortgages and HELOCs, which are a collateral charge. The mortgage is registered for the amount borrowed giving you the option to access your equity at a later date either through a second mortgage, a secured line of credit or by renegotiating with your existing lender to adjust your mortgage amount.  With a standard charge mortgage you are not as [...]

CMHC's Homebuying Step by Step guide walks you through five key steps to buying a home. Step 1: Is Homeownership Right for You? Take a moment to think through the advantages and disadvantages of both owning and renting. Spend the time to educate yourself about the process of home buying and the responsibilities of homeownership. Step 2: Are You Financially Ready? Before you begin shopping for a home, know how much you can afford to spend. Start by evaluating your financial readiness with the help of CMHC’s Household Budget, Mortgage Payment, Debt Service and Mortgage Affordability Calculators. These tools will help you establish your financial situation, determine how much you can afford and the maximum price that you should be considering. It is a good [...]