Advice and Information from the Experts
Both first time home buyers and seasoned real estate investors should always consult a professional full time mortgage broker before making any assumptions regarding mortgages. The rules and regulations both federally and internally at each individual lender are constantly changing. So even if you closed a mortgage six months ago, a policy, rate or program could be drastically different now. Contact Assurance Mortgages to be sure you are working with the most recent information and advice.
Why should I use a mortgage broker instead of a bank?
- A mortgage broker is working, solely on your behalf, to find you the best possible rate and terms on your mortgage. We are full-service brokers that offer a comprehensive service to coordinate all the details between you and your lender, real estate agent, lawyer, and appraiser to ensure that your purchase, renewal, or refinancing moves forward smoothly.
- Our team has access to hundreds of mortgage products from a large suite of lenders, not just the products offered within any one particular financial institution. This wide selection of mortgage products allows us to find you a mortgage that includes not only the rate you want, but also the terms to fit your unique needs.
- Lending institutions are big businesses, and their primary source of revenues are generated from the interest they charge on all the loans funded. This means they are more profitable if you borrow at a higher rate. Mortgage brokers are primarily paid based on loan size, regardless of rate, so you can be sure we are working with your best interests in mind.
- An added service that we also offer our clients, is the ongoing management of your mortgage. As your mortgage expert, we continue to monitor any opportunities that may become available to you after your deal has closed. This way we can continue to save you money in the years to come. And best of all, we are free for the client! Mortgage brokers are generally compensated by the lender. This is how you can be sure that we are working on your behalf to get you into the mortgage that suits you best.
What closing costs should I expect?
- In general, it is advantageous to plan to have 1.5% of the purchase price in your account. Your Mortgage Broker, Real Estate Agent, or Lawyer can help you estimate these costs. As a first-time homebuyer, the amount will be less if your purchase price is under $475,000 as you will be exempt from having to pay the property transfer tax. Everyone’s case is unique so please don’t hesitate to contact us for a detailed breakdown of costs that may apply to you.
What’s the difference between fixed and variable?
- There are many differences between fixed rate mortgages and variable rate mortgages (VRM). The most obvious is that the VRM provides you with a greater discount but also leaves you exposed to rate changes. This exposure is good in a projected interest-rate-decreasing climate, however it is an added risk in an interest-rate-increasing climate. We have strategies that will help you take advantage of a VRM while mitigating your risk. However, the VRM isn’t the right choice for everyone.
- There are clear benefits to a fixed rate mortgage as well. Fixed rate mortgages offer you the comfort of securing a set rate and payment amount for a longer period of time. This protects you from rate fluctuations. We can help you identify how much risk you would like to take and therefore, which option is best suited for your needs.
How can I pay off my mortgage faster?
- There are many things you can do as a homebuyer to pay off your mortgage faster. One of the easiest things you can do is to make sure your mortgage payment frequency is bi-weekly or even weekly. Doing this will ensure you make an extra mortgage payment every year, and cut your interest cost over the life of your mortgage, saving you extra mortgage payments. A few other things you can do are to choose a mortgage with prepayment options that suit your needs, choose a shorter amortization period, increase your mortgage payment, and invest any money you receive (like a tax refund or Christmas bonus). Give us a call and we can help you strategize your repayment plan to get you mortgage-free faster!
