Refinancing

Whether you intend to finance your renovation yourself or borrow money, you should talk to a financial adviser and to your lender before you make firm plans. They can help you understand your options and advise on how much you can borrow. This information will help you plan realistically.

EXPLORE YOUR OPTIONS

Your own resources: For smaller renovation projects, you may consider self-funding material costs, especially if you plan to do the work yourself.

Credit card: Likewise, you can use your credit card to pay for materials for smaller renovations. But be careful not to carry the balance for too long as credit card interest rates can exceed 18%.
Personal loan: With a personal loan, you pay regular payments of principal and interest for a set period, typically one to five years. You also have the option of a fixed or variable interest rate for the term of the loan. The interest rate on a personal loan is typically less than that of a credit card. Unlike a line of credit, once you pay off your loan you will have to reapply to borrow any new funds needed.
Personal line of credit: It is ideal for ongoing or long-term renovations since it lets you access your funds at any time and provides a monthly statement to help track expenses. A line of credit offers lower interest rates than credit cards, and charges interest only on funds used each month. And, as you pay off your balance, you can access remaining funds, up to the line of credit’s limit, without having to reapply.

Secured lines of credit and home equity loans: These options offer all the advantages of regular lines of credits or loans, but are secured by your home’s equity.

Mortgage refinancing: When funding major renovations, refinancing your mortgage lets you spread repayment over a long period at mortgage interest rates, which are usually much lower than credit card or personal loan rates. This type of financing can allow you to borrow up to 80% of your home’s appraised value (less any outstanding mortgage balance).

This provides an overview of financing options available to you. But also make sure to
research grants and rebates offered by the federal and provincial governments and local utilities to help fund your next renovation project.

(Source: CMHC)

Whether you intend to finance your renovation yourself or borrow money, talk to your Verico designer mortgage broker and to your lender before you make firm plans.

Paul Smith
1-866-RATE-033

Are you paying too much for your mortgage?  Why not take a look at your options?  Even if you are in a 5-year term and may be subject to a penalty to cancel your term with your current lender you may save money in the long run.  Let’s say for instance you have a $200,000 mortgage and your interest rate is 5% on a 5 year term amortized over 25 years.  In this example you would have a mortgage payment for $1,169.18.  Generally speaking, if you cancel your term early with your current lender you would have to pay the equivalent of 3 months interest as a penalty.  With that being said your penalty should be around $3000.  Now looking at your new rate with BestRateGuys.com we could offer a rate over 5 years for only 3.75% - WOW, that’s a pretty big difference in rates.  Your new 5 year term amortized over 25 years would make your mortgage payment $1,028.26.  On a monthly basis it may not seem like that big of a savings but remember you are paying this over 5 years.  Let’s break it down and see which way works out to be cheaper:

Concerned you can’t afford to pay your penalty all upfront?  No problem!  We can arrange your penalty is included with your new mortgage at the lower rate!  It is not a bad idea to take a look at your mortgage from time to time and see what your options are.  If your not sure contact BestRateGuys.com toll free @ 1-866-RATE-033.  We will take a look at your current situation and make every effort to save you some money.

Have we got you interested in saving some money? Apply now online. It is quick and secure. We will walk you through step by step in arranging your first home.

We guarantee to find you the lowest possible mortgage rate in terms of your situation. If we can’t at least match an offer made another financial institution we will give you a $50.00 gift card just for giving us a try. Really, what have you got to loose? Call us today to discuss your mortgage options. See terms and details of $50.00 give away offer.

Interested in learning more about mortgages? Subscribe to our news and articles blog on our website. This will give you up to date mortgage information brought directly to your email inbox. Call us toll free @ 1-866-RATE-033.

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Or Click to Call Us

Sincerest Regards,

Paul Smith

Mortgage Agent

VERICO Designer Mortgages

www.BestRateGuys.com

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On Tuesday, the Department of Finance announced three changes to the standards governing government-backed mortgages, that come into force April 19. Here are a summary of the changes.

QUALIFYING FOR A FIVE-YEAR RATE

The adjustments to the mortgage framework will require mortgage insurers to ensure that new borrowers qualify for a five-year fixed rate mortgage when calculating the gross debt service and total debt service ratios. The measure is intended to protect Canadians by providing them with additional flexibility to support mortgage payments at higher interest rates in the future.

LIMIT THE MAXIMUM REFINANCING

Borrowers seeking financial flexibility can currently refinance their mortgage and increase the amount they are borrowing on the security of their home up to a limit of 95% of the value of the property. The adjustment will lower the maximum amount of the mortgage loan in a refinancing of a government-backed high-ratio mortgage loan to 90% of the value of the property, consistent with the principle that home ownership is a tool for savings.

DISCOURAGING SPECULATION

This measure will require a minimum down payment of 20% for government-backed mortgage insurance on non-owner-occupied properties purchased for speculation. At present, borrowers may purchase a residential property with a 5% down payment. The change will require a 20% down payment for small non-owner-occupied residential rental properties. Borrowers purchasing owner-occupied residential properties which also include some rental units (such as a duplex) will still be able to access government-backed mortgage insurance with a 5% down payment.

For more information please contact Verico Designer Mortgages Inc at 905-336-5997

Source:
Paul Vieira, Financial Post  Published: Tuesday, February 16, 2010  

If you are interested in learning more about mortgages please feel free to contact us or call us @ 1-866-RATE-033.  You can also learn more about mortgages on our social networking sites or subscribe to our newsletter:

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Is your mortgage up for renewal and your thinking about what your options are?  Did you just get a renewal statement from your bank or financial institution and you are shocked at their rates?  The BestRateGuys.com team will shop at over 50 lenders across Canada to get you the lowest possible rate that you are eligible for.  We guarantee to find you the lowest possible mortgage rate in terms of your situation.  If we can’t at least match an offer made another financial institution we will give you a $50.00 gift card just for giving us a try.  Really, what have you got to loose?  Call us today to discuss your mortgage options.  See terms and details of $50.00 give away offer.

Interested in learning more about mortgages?  Subscribe to our news and articles blog on our website.  This will give you up to date mortgage information brought directly to your email inbox.  You can also find us on other social networking sites:

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   With the onset of September some homeowners maybe thinking  that they have missed the boat on potential  home renovations.

This is not the case!

 September is an excellent time to consider doing some home renovations. As with most homeowners you may be looking to renovate you home to create a more comfortable living space.

September is a terrific time to plan for the winter Reno’s.  Perhaps a new kitchen is on the calendar, renovating that old bathroom, or renovating your basement into a games or tv room. With the worry of the colder weather just around the corner, these indoor activities are a good way to do something productive while staying out of the cold. Plus you are doing something good for you home, investing in it’s overall value!

 Although the weather in Ontario hasn’t taken a turn for the worst, now is the time for you to start to plan financially how to make these dreams reality. Once you have secured the money to do these projects, you can then plan these projects around your actual budget, and get a clearer idea of the supplies and planning needed, in accordance with how much you have allotted to spend.

If you would like to know more about he possibilities of home equity take out, or 2^nd mortgage solutions, contact us today!

It's about a choice The BestRateGuys.com provides Canadian homeowners with access to the hundreds of mortgage products available through Canada's many banks, trusts, credit unions and Mortgage Companies. Typically our services are free of charge, AND YOU, our customers can select from the best mortgages, at the best rates, available in the marketplace! You should insist on expert advice AND professional service. A typical Financial Institution will provide you with information on the mortgage products THEY sell; while we will help you decide which Financial Institution, and which mortgage OFFER, is the best one for you.

It's about making the right decision More and more Canadians are discovering that the best mortgage decision they can make is to choose to work with us.

Take the next step now and contact us to ensure you receive expert and unbiased advice - and the professional service you deserve.

Start now. Apply online, in person or by phone @ 1.866.RATE.033 and let us help get you into the home of your dreams.

The BestRateGuys.com lowest rate guarantee is our commitment to find you the lowest possible Canadian fixed mortgage rate in terms of your situation. If we can't at least match an offer made another financial institution we will give you a $50.00 gift card just for giving us a try. Really, what have you got to loose? Call us today to discuss your mortgage options. See terms and details of $50.00 give away offer. Interested in learning more about mortgages? Subscribe to our news and articles blog on our website. This will give you up to date mortgage information brought directly to your email inbox.

Check Us Out on Social Networking Sites

Or Click to Call Us

Sincerest Regards,

Paul Smith

Mortgage Agent

VERICO Designer Mortgages

www.BestRateGuys.com

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We guarantee you the lowest fixed rate mortgage on your Canadian mortgage. If you find a better fixed mortgage rate we’ll beat it or give you $50 Gift Card.

• Apply for a VERICO Designer Mortgage Inc. fixed rate mortgage. Apply either online, telephonically, fax an application to 1.866.978.9790
• Within 3 days of submitting your application, fax or deliver your renewal offer to our office.
• If we cannot offer you a lower rate on a similar fixed rate mortgage, we’ll give you $50 Gift Card.
• A similar mortgage must be for the same property, term, and loan amount with no penalties.

Program Rules - Lowest Rate Guarantee

VERICO Designer Mortgages Inc. will provide you with the lowest fixed rate mortgage of any licensed lender or pay you $50 Gift Card. Your renewal must be for the same property, term and mortgage loan amount. To receive a competitive mortgage rate either fax or deliver to VERICO Designer Mortgages Inc. a copy of your renewal letter from your existing financial institution. Your renewal date must be within the next 120 days. Your renewal letter must be received within 3 days of your application otherwise the offer is considered null and void.

Eligibility

Guarantee applies to VERICO Designer Mortgages Inc. fixed rate mortgage application written between November 1, 2008 and March 31, 2009. When compared to another lender’s Renewal Offer (as defined below), our fixed rate mortgage will have a lower interest rate or VERICO Designer Mortgage Inc. will either beat the other lender’s rate or pay you $50 Gift Card. VERICO Designer Mortgage Inc. and the competitor’s mortgage must have the same subject property, term, discount points, loan amount. Lowest Rate Guarantee applies to first lien products only. The guarantee does not apply to second lien products. The Guarantee only applies to properties within VERICO Designer Mortgage’s Inc. designated lending areas. The offer does not apply to private mortgages.

How Does This Guarantee Work

You must apply with VERICO Designer Mortgages Inc. then you have three calendar days to return to us proof of your mortgage renewal fixed rate mortgage (same subject property, term, loan amount - the “Renewal Offer”). VERICO Designer Mortgages Inc. reserves the right to verify that the other lender’s offer is accurate.

If VERICO Designer Mortgages Inc. is unable to provide you with the lower fixed rate mortgage and you close the loan with your existing lender on the quoted terms, VERICO Designer Mortgages Inc. will pay you $50 Gift Card. To be eligible for the $50 Gift Card you must mail to VERICO Designer Mortgages Inc. a certified copy of the Mortgage Statement. The documents must be accurate and disclose that the loan closed on the terms and conditions, including rate as previously disclosed in the Renewal offer and proof of product similarity. VERICO Designer Mortgages Inc., in its sole discretion, will make all determinations of eligibility and qualification for payment of this Guarantee. The Guarantee is subject to revision or revocation by VERICO Designer Mortgages Inc. at any time without notice. VERICO Designer Mortgages Inc. is not responsible for system failures, communication problems or connection and server problems, natural or man-made, failed, incomplete or delayed transmissions, technical malfunctions of telephone networks, computer equipment, system or software, computer time and date stamp mechanism, or any combination thereof, or other unforeseeable events beyond the control of VERICO Designer Mortgages Inc.

VERICO Designer Mortgages Inc.’s own fixed rate cannot be considered as competitive. We reserve the right to cancel or change program rules without notice.

Economic forecasting seems to be getting more and more difficult. Who would have thought a year ago that interest rates would fall to the current level? We had an increase in fixed rates that started in 2007 and pretty much continued to December 2008. During this time many buyers thinking this was the trend decided to lock into fixed rates. Home buyers locked in their mortgage at the 5 year fixed rate which was around 5.75%. Today we can get a 5 year rate as low as 4.29%. If you have a fixed rate mortgage it makes sense to re-evaluate whether it would be worthwhile to switch to a lower interest rate mortgage.

Breaking your mortgage will result in a prepayment penalty payable to your current lender. The question is whether the savings from the lower interest rate is enough to cover the penalties and any closing costs on the new mortgage. Each situation would have to be addressed on an individual basis. I have run into several cases where there has been significant benefits to switching to a lower rate.

Here is one such scenario:

• Mortgage amount - $188,393
• Term - 5 yr term with 2 yrs remaining on mortgage, - 22 year amortization
• Interest rate at 5.75% - interest payable over next two years - $20,923
• Interest rate of 4.29% - interest payable over next two years - $15,587
• Difference equals $5336
• Prepayment penalty of $1,865 – 3 months interest penalty

Difference in monthly payment: $153.95
The other huge benefit is that you are now in a 5 year mortgage at a rate of 4.29%, imagine the additional savings you will receive from the remaining 3 years.
What if you are only 1 year into a 5 year term, most lenders would charge you interest rate differential!

• Mortgage Amount - $230,615
• 1 year into a 5 year term
• Interest rate at 5.75%
• New interest rate 4.29%
• Remaining interest on current mortgage $50,250
• Interest on new mortgage $37,274
• Penalty would be Interest rate differential =

Difference in monthly payment: $189.85

The borrower had 2 options in this case - switch to a 4 yr term mortgage at 4.39% or get a variable rate at 3.8%. Here is the total interest he would pay over the remaining 4 years of his mortgage based on these terms:

• 4 yr term - $59,263
• Variable rate mortgage - $50,037
• Stay at the current mortgage for the next 4 years - $75,500

The client saves $25,463 (or $75,500 less $50,037) by switching to a variable rate mortgage. The net savings is $15,463 (or $25,463 less $10,000 penalty).