Canadian Mortgage Broker Launches a Mobile Mortgage App

Mortgage Brokers City has officially announced the launch of a free mortgage calculator app with access to live up-to-date mortgage rates, information and mortgage advice. Available on all Android, Blackberry and iPhone devices, the app allows users across Canada to have a seamless mortgage experience from start to finish.

One of the most valuable features of the app is the live rate feed, that gives users access to a real-time representation of the lowest mortgage rates available. Unlike other apps, which may post default rates or higher rates, the Mortgage Broker City app gives users a real representation of what their mortgage payments will cost, allowing them to plan accordingly and build a budget. Sheri Creese, Vice President of Sales and Service for Mortgage Brokers City said: "This app gives instant answers to the two questions we get most often from our clients; How much will my payments be, and how much will it cost up front, including my down payment?" In addition, the app provides province specific calculations that incorporate Land Transfer Tax and PST, some of the most commonly overlooked inclusions in the cost of a mortgage.

Users of the app that wish to have additional information or advice can contact Mortgage Brokers City at the touch of a button. Licensed representatives are able to assist clients in Alberta, British Columbia, Saskatchewan, Manitoba, Ontario and Quebec.

To download any version of the free app, visit www.mortgagebrokers.ca or click on the appropriate link below:

Mortgage Brokers City App for Blackberry: http://tinyurl.com/9slmex7

Mortgage Brokers City App for iPhone: http://tinyurl.com/94r2q4t

Mortgage Brokers City App for Android: http://tinyurl.com/8w3orpe

Click here for the full press release from Marketwire.

Mortgages for the self-employed

There are many challenges to being self-employed, but home ownership shouldn't be one of them. For self-employed individuals, the process of applying for a mortgage or refinancing is likely to be more complex than it is for salaried workers. Proof of income is an essential part of the qualification process, and obtaining this proof is not always easy for those who own a business and do not have the same income from week to week. This can be not only challenging when approaching a lender, but frustrating for the applicant. This article from the Globe and Mail provides readers with a helpful basis to better prepare for the application process.

When a lender deals with a client who is self-employed and cannot provide what is referred to as verified income, they instead must rely on stated income. Stated income can be proven to a lender through tax returns, notices of assessment, and financial statements. Although the mortgage is for the individual, the lender is examining the business in addition to the applicant. Simply put, the applicant must show the strength of the business to prove they will continue to have the income to pay the mortgage in the future. The more information an applicant can provide to their lender, the easier it is for the lender to make an objective decision to approve or decline the mortgage. Other information it may be prudent to provide can include: proof that HST or GST payments are up to date, business contracts to show expected revenue, personal and business credit scores, and proof of assets owned by the business.

An easy way to make the somewhat complicated process a little smoother is to consult a qualified Mortgage Broker, an individual who will not only cultivate a relationship with the client, but their business as well. A Mortgage Broker will navigate the process with the client, find out exactly which documents the lender will need, and handle any negotiations.

Click here to read the full article from the Globe and Mail.

Single home buyers face different challenges than couples

Recently released information from Statistics Canada shows that the percentage of Canadians purchasing homes alone is increasing. According to the recent statistics, 27.6% of all homes in Canada are occupied singly. A shift in lifestyles (including people choosing to marry later in life or not at all) combined with low mortgage rates, is believed to be a significant factor influencing this increase. In a recent Globe and Mail article, readers learn that along with the many rewards of home ownership, single home buyers will likely face challenges that differ from those couples face.

Budgeting methods are bound to change slightly when making the transition from renting to owning. Home owners are solely responsible for maintenance, repairs and emergencies that occur within a home, and saving for the unforeseen can be more difficult when there is only one income supporting the household. Mortgage payments will become the number one priority, meaning some will have to sacrifice other expenses. Experts suggest making small changes where possible, such as cutting down on evenings out or forgoing vehicle ownership in favour of public transit. Some home owners take advantage of their new property by renting out parking spots, spare rooms or basements to provide extra income.

Saving for a down payment can be one of the largest hurdles a new home buyer will face. Saving as much as possible will not only cut down on monthly mortgage payments, but will decrease the total amount of interest over the lifetime of the mortgage. One should also be mindful of the extra costs associated with purchasing a home, such as legal fees, closing costs, land transfer tax and moving expenses. When it comes to home ownership, saving as much as possible is key. For those who are still unsure if it's the right time for them to pursue home ownership, experts suggest making a detailed budget to see if they can realistically carry a mortgage. There are multiple resources available, such as online mortgage calculators and professional Mortgage Brokers, to assist in making this important financial decision.

Click here for the full article from the Globe and Mail.

Understanding your mortgage options

For many home buyers, the most important feature of their mortgage is the interest rate. As your mortgage is likely the largest debt you will acquire, paying the least amount of interest possible is important. Aside from a low mortgage rate, there are several other factors to take into account when shopping around for a first mortgage, or renewing for another term. Before settling in for five or ten years, be sure to look into the additional features of your new mortgage and whether they will fit your needs.

When deciding on a mortgage rate, it can be difficult to decide between fixed or variable. A fixed rate offers the security of always knowing what your interest rate is and what your monthly payments will be, while a variable rate offers the ability to take advantage of the lowest rate possible, depending on market conditions. Many will shy away from variable rate mortgages because of the uncertainty of fluctuating mortgage payments. However, many lenders offer the option to make fixed payments on a variable rate mortgage. If the interest rate decreases, a larger percentage of the monthly payment goes towards the principal and vice versa. This option offers the best of both worlds: the stability of the same mortgage payment each month with the benefit of the lowest possible mortgage rate.

An increasing number of Canadians are paying their mortgages off faster by periodically making lump-sum payments, also known as pre-payments. This is a fantastic way to reduce the debt, but it is important to note that lenders will normally set a limit to how much can be pre-paid. For most lenders, the limit is set at 15-20% of the mortgage balance per calendar year, but can differ from one lender to another, so find out for sure before diving in. Consulting a professional Mortgage Broker is an easy way to navigate the sea of mortgage questions. They will seek out lenders on your behalf to find not only the lowest possible mortgage rate, but also the most favourable mortgage terms based on your financial situation.

Click here to read the full article from Moneysense.

Personal Finance 101

For many, the month of September means back to school. Whether starting classes or setting kids up for their first year of college or university, this month is the time to start thinking about hitting the books. In this article from the Globe and Mail, we learn that the majority of students believe that money management should be among the subjects offered to students. On average, when students finish their tenure at a post-secondary institution, they will be in approximately $27,000 in debt, and among those surveyed, very few feel they will be prepared to manage their finances. The survey found that 69% of students polled believe personal finance should be brought to the classroom, an increase of 12% from 2009, when the survey was last conducted.

With tuition fees rising, and the issue of personal debt becoming more prevalent, students are becoming more aware of the importance of being prepared. However, the survey noted that only a quarter of respondents believe that their school supplied them with the necessary financial information. Students are saying their main financial concern is paying for post-secondary education, yet only 3 out of 10 are saving for school. Bigger financial steps like applying for a mortgage or saving for retirement may seem far off, but giving students the tools they need early on will give them a good foundation for financial success later in life. A non-profit financial literacy group, the Investor Education Fund, is assisting in the creation and implementation of a program that will introduce money management into the curriculum for grades 4-12. It is the hope that schools will begin to acknowledge that financial literacy is of significant importance for students.

Click here for the full article from the Globe and Mail.

Pros and cons of faster mortgage repayment

According to a recently released survey, the majority of Canadians who currently have a mortgage intend to have it fully paid by the time they reach 55. The thought of being mortgage-free by retirement is definitely a desirable option, and with mortgage rates at historic lows, this could be the best time to achieve this goal. Alternatively, low mortgage rates could prompt some to opt for carrying low interest debt over a longer period while using excess funds to invest. It can be argued that placing the majority of your net worth into your home is the best investment, as a home is the only investment you live in. Alternatively, the importance of investing in a more diversified way can be argued as well. Finding the balance is different in every case.

Canadians have been taking advantage of different repayment options to pay their mortgages off faster. These include accelerating payments from monthly to bi-weekly or weekly, making lump-sum payments toward their mortgage, and in many cases, both. Access to easy to use mortgage calculators allows you to easily fit accelerated payments into your budget. Each financial situation is different, so to find a repayment plan that works for you, talk to a qualified Mortgage Broker.

Click here for the full article from Moneyville.

Take advantage of your TFSA

A recently released survey shows that 47% of Canadians have opened a Tax Free Savings Account (TFSA.) Out of that 47%, only half stated they have made a contribution to their account this year. Evidence from other surveys conducted over the past few years suggests that the reason for the lack of participation stems from many Canadians not understanding exactly how a tax free savings account works.

TFSAs were introduced in 2009 by the Government of Canada. Savings in the account can be invested multiple ways, from mutual funds to Guaranteed Investment Certificates (GICs.) The account allows contributions up to $5,000 per calendar year. Any unused contribution room carries over to the following year. For example, if you only contribute $2,000 this year, you will be able to contribute the remaining $3,000 next year, in addition to the regular $5,000. This rule also applies if you require access to your savings. Any funds withdrawn during the calendar year are re-payable in the next calendar year. These are important rules to take into consideration, as those who over-contribute are subject to tax penalties.

Another reason Canadians are not taking advantage of TFSAs is believed to be they simply don't have a savings plan. From saving for a family vacation, to building a larger down payment when you apply for a mortgage, the possibilities are truly endless.

Click here for more information on TFSAs.

Making moving day stress-free

Moving day is an exciting step in the process of purchasing a home. It can also prove stressful, especially if you don't do the necessary research beforehand. This article from the Globe and Mail recommends some steps to take to make your moving day as smooth as possible.

The summer months tend to be the busiest month for moving, so ensure you start calling companies early to secure a date. Call several companies for quotes, making sure not to simply choose the company with the lowest rates. Ask family or friends about their experiences, or contact your Mortgage Broker or Real Estate Agent for recommendations. It is also important to make sure the company you choose is insured, and complies with the good practice guidelines for movers, set forth by Industry Canada, who also provide a Consumer Checklist for choosing a moving company. Don't be afraid to ask your company to provide references, a common practice when shopping for movers.

If you do have a bad experience with a moving company, there are services available to assist you. Some have found it helpful to contact their local Better Business Bureau. You can also find assistance through the Consumers' Association of Canada.

Click here for the full article from the Globe and Mail.

Financial tips for recent graduates

After completing the years of schooling it takes to get a diploma, and a job, many recent graduates fall into a heavy spending pattern, simply because they have never been able to do so previously. However, in an age of rising home prices, it has never been more important to start out on a well-planned financial track. This article from the Financial Post provides helpful tips for recent graduates.

The most recently released national average home price sits at $353,147, according to the Canadian Real Estate Association. With recent mortgage regulation changes, if an applicant wishes to amortize their mortgage over more than 25 years, a down payment of 20% or more (almost $71,000) must be accumulated. This combined with the other benefits of a larger down payment, such as paying less overall interest on your mortgage, make saving early vitally important. Making a detailed budget should be the first step in the process, as budgeting is often new territory for those just starting out in the work force. The article also suggests researching how to get the best possible return on accumulated savings, as not all savings accounts are created equal.

Saving for a down payment may seem like a daunting task, but the long-term benefits are well worth the time and effort involved. For more information on purchasing a first home, contact a qualified Mortgage Broker.

Click here for the full article from the Financial Post.

The importance of a thorough home inspection

Before settling on a home, and finalizing mortgage funding, a home inspection is an absolute necessity. One of the most important issues explored in a home inspection is potential water damage. A thorough home inspection can save time, and costly repairs, in the future. This article from the Toronto Star's Moneyville gives a list of items home inspectors and potential owners alike should be aware of to prevent water damage.

Ensuring the roof is in good shape is of extreme importance in a home inspection. Necessary roof repairs can go unnoticed, and will tend to be expensive to fix, so ensure the home inspector looks at the roof. Asking the approximate age of the roof can be helpful as well, as most roofs are not meant to last more than 15 years.

Water in the basement is another potential issue no home owner wants to encounter. Check for cracks in the foundation, the slope of the ground around the house, rust stains, mould and water marks. Recent basement renovations are also something to keep an eye on. Some sellers may be trying to inexpensively cover damage.

Finally, a detailed inspection of the plumbing is a must, including checking for sewer backups. In this article, we learn that clients can have a video made of their sewer system to check for future issues. It is important to remember that not every home inspector will have the same checklist, so buyers are encouraged to do their own research and ask for referrals from mortgage brokers, Real Estate Agents or Lawyers.

Click here for the full article from Moneyville.