Mortgage products and services tailored to you
Whether you are getting into your first home, or you are looking for second mortgage solutions, the ins and outs of mortgages can be overwhelming. Our personal approach, knowledgeable professionals and skilled team can assist you in demystifying mortgage information and finding the products and solutions that best suit you. ShaCole knows mortgages and has solutions.
Once we learn what is important to you, what your goals are and assess your individual needs, we can assist you by tailoring the mortgage solution that is fitted to your lifestyle and changing needs. By building a relationship with you, we can build mortgage options that are you-specific. Contact ShaCole for the assistance and personal attention you need to make mortgages simpler.
The following are some different solutions available for people to manage a new or existing mortgage:
Reverse Mortgage1:
What’s a reverse mortgage?
A reverse mortgage, is a special loan for homeowners 55 +, that lets them borrow against the value of their home, without having to sell their home. And, unlike home equity loans for example, you never have to make a payment, until you choose to move or sell.
Why Are Reverse Mortgages so Popular?
After years of diligently paying their mortgages, many Canadians now have significant value locked up in their homes. But although they may be ‘house rich’, they often don’t have enough regular income to pay their other debts, cover monthly expenses or do important things like fix up their home. A reverse mortgage lets homeowners access the value in their home, without having to make any regular payments, until they choose to sell or move.
Refinancing2:
A mortgage doesn’t have to be a life sentence. Whether you’re interested in a lower rate, consolidating debt, or tapping into home equity, there may be good reasons for you to refinance. As of July 9th 2012, you can access up to 80% of your home’s value through a refinance. The following are the most common reasons homeowners may consider refinancing:
- To take advantage of low(er) interest rates
- To access equity (cash) in their homes for home repairs, medical or educational expenses
- To consolidate debt
There may be some costs associated with refinancing. The cost to refinance your mortgage depends on the strategy you use to access equity or lower your interest rate.
No matter which strategy you use you will always incur legal costs as a lawyer must change the financing on title. The good news is if your mortgage balance is greater than $200,000, many brokers and/or lenders will cover this cost.
Consolidating:
As mentioned above, many people choose to use the cash equity in their homes to consolidate debt. The bank essentially lends you money against the portion of your home that you actually own. If your home has a market value $400,000 and your mortgage is $325,000, you own $75,000 of your house or condo. This is known as ‘equity’. To consolidate debt, you can use up this amount of equity, based on approval for a second mortgage. You would then carry both a first and second mortgage. The first is for your home and the second for your debt consolidation. Mortgage rates for the second mortgage may or may not be the same as for the first as rates are determined by credit worthiness and market rates. A licensed mortgage specialist can provide you with more information.
First & Second Mortgages:
A first mortgage on a property is the amount used for the purchase of the house or condo. This is the initial amount borrowed from a lending institution to acquire the property.
Once you have paid down a first mortgage and have built up equity (based on the property value and remaining mortgage balance), you may be able to take out a second mortgage using the cash equity that has been built up. As previously mentioned, this equity can be used for a variety of reasons, including debt consolidation, home improvements/repairs or other expenses. Your first and second mortgage may or may not be eligible for the same interest rate, but the renewal dates can be coordinated so the interest rate on renewal can be equalized. A mortgage professional can provide more information on acquiring and paying down your first or second mortgage.
Equity Lending:
If you’ve owned your property for any length of time, you’ve established some equity.
Depending on how marketable your property is and how much equity you have, you may qualify for a home equity loan. You can put your home equity into home renovations, debt consolidation or to help achieve a future goal. Using your equity is also a way of lowering borrowing costs. Whatever you’d like to use your equity for, ShaCole can provide you with the right information, approach and advice on how you can put your home’s equity to work for you.
New to Canada Mortgage Program
For many new Canadians, the prospect of property ownership in their new country is an exciting prospect. Setting down roots, establishing oneself in the community and making a home for their family is a priority. It can also be a source of uncertainty as many people who are new to Canada are unsure of where to turn for a mortgage.
There is an exciting new mortgage program that makes home ownership a reality for new Canadians; The New to Canada Mortgage Program. This mortgage program allows people how have immigrated to Canada within the past 5 years to qualify for a mortgage based on specific income criteria with as little as 5% down.
To find out more about this program, eligibility and how to apply, Contact ShaCole today.
1 Author Unknown; “Understanding Your Home Loan Options”;http://www.chip.ca/reversemortgages; 2014-03-26
2 Author Unknown; “Mortgage Refinance”; http://www.ratehub.ca; 2014-03-26