Sometimes you just have to get back to basics. With all the noise in the media and seemingly constant and significant changes to the mortgage industry in Canada, it is easy to forget what is and is not possible these days. I am going to keep it simple here and cover off what you still can do as a Mississauga mortgage holder or someone considering purchasing today.
New Recruit – First Time Home Purchase in Mississauga
First up in our bootcamp training is the new recruit. These fresh faced, green eared young Mississaugans are looking to join the ranks of home owners. Now I have heard a suprising amount of feedback from this demographic with comments like “Do I now have to put down 20% to buy a home?” The reality is that Home Purchase Loans are the least affected by all the new mortgage rules out there. The minimum downpayment on a home purchase is still 5% as stipulated by CMHC and I have access to lenders who will provide 5% cashback on closing making your mortgage effectively 100% financed. It is comforting knowing that there is still the first time HBP (Home Buyer’s Plan) where you can borrow up to 25K from your RSPs toward the down payment available today. And for those recruits brave enough to make the move further north, I am proud to announce the Simcoe County Homeownership Program where the government will provide a forgiveable loan up to 10% of the purchase price to make the transition to ownership easier.
Mortgage Renewal – First Class Private
Next up is our Mississauga mortgage holder who has survived the first five year term of their mortgage or is there in the next little while. Did you know that by CMHC statistics say the average Canadian mortgage holder makes changes to their mortgage at year 3.8 of a 5 year term? This is reflected in our society today as we are more mobile and need to be able to move where economic growth is occurring to ensure our family’s prosperity. This is an area where things have become tougher as the potential to refinance your mortgage to a new lender with better terms and conditions is less like to occur if you purchased at 95% LTV five years ago and you are at 85% today considering mortgage reduction and market appreciation inclusive. My most important piece of advice for this demographic is to stay clear of the Collateral Charge Mortgage where the assumption and portability of your mortgage is restricted. You will have to pay a hefty penalty if you decide to move to take advantage of opportunities abroad. On the other hand, if you find yourself deep in debt and the only option you see is to renew your mortgage at the bank’s posted interest rate…DON”T – it is imperative that we take the time to go over your whole situation and determine if a new arrangement of a refinance to 80% plus a private 2nd mortgage or even an RSP mortgage would make more sense to your bottom line over the next five years.
Seasoned Mississauga Veteran – Mortgage Refinance
Finally is our seasoned veteran who has either paid off that mortgage years ago or is looking at a Reverse Mortgage as a way to enjoy some lifestyle in their golden years. Unfortunately, this demographic is one of the fastest growing debt categories out there. With the advent of unsecured credit card and line of credit debt being made available to the masses, this sometimes becomes the vehicle of choice to pay for our lifestyle. The problem here is that the interest rates and repayment terms are quite unsustainable. The good news is that there is still available Mortgage Refinance up to 80% of the value of the home depending on how you qualify and up to 65% for even those who are income or credit challenged. In a surprising amount of cases, putting off a debt consolidation can be harmful as the high balances carried on your credit cards will hurt your credit rating for a long time to come if left unattended.
It doesn’t matter at what stage of this battle called life you are at…you can still win. From our brand new home owner to the seasoned veteran who has seen it all, there is still a mortgage product available to meet your needs. Although the pace of life seems to continue to increase and more demands of our time and energy are a constant companion, take hope in the fact that there is someone there to advocate for you in your mortgage and financing needs. Me. I will always have an unbiased approach as your Mississauga Mortgage Broker as I only represent you throughout the process and not the lender we eventually bring your business to. Your questions and comments are always appreciated.