Monthly Archives: May 2021

There can be a lot of reasons as to why you need to undergo mortgage refinancing. For many, it can be a breath of fresh air to have a second opportunity to manage the loan you take out.

There are some homeowners who need to finance their current mortgage loan, while others have to consolidate debt in other areas of their lives. Some situations also use refinancing in order to purchase an additional home and other opportunities.

Although not for everyone, undergoing a refinancing transaction with a mortgage lender can have a lot of advantages. This is especially true in Ottawa where the market can slide in favour of the average homeowner. Here are just a couple of reasons why you should consider or get behind mortgage refinancing. 

Achieving Lower Rates

The whole goal of mortgage refinancing is to allow a homeowner to get lower interest rates. Even a percentage lower can make the biggest difference, though it’s important to consult with a financial advisor whether or not you’d benefit from refinancing at a certain period of time. There are days where the interest rates can go higher, making it more difficult.

Upon determining the interest rates and what benefit you’d have, get in contact with a trusted broker. They should be able to handle your mortgage refinancing at no cost to you so that you can manage a mortgage loan with a lower interest rate. 

Getting a Better Credit Score

Under a specific set of circumstances, it is possible for a homeowner to improve their credit score when mortgage refinancing. This is mostly because the mortgage refinance does increase an individual’s ability to borrow and put things on credit. Good borrowing power will usually entail a high credit score.

It’s important to keep in mind that it may not occur for everyone, though. There are cases when credit score can take a hit instead depending on your credit history. Be sure to discuss what a mortgage refinance means for you with a financial advisor before going ahead with it.

Being in a Better Financial Position

Mortgage refinancing can often give you the upper hand over your own finances rather than the other way around. It can bring a lot of relief to have the ability to pay your loan and have enough time to manage and deal with the second loan. Some homeowners also choose to forward their payments quicker to fully pay off and complete the initial mortgage loan.

Accessing Your Home’s Equity

Aside from redirecting your cash, another big benefit of taking on a mortgage refinance is that you can choose to access your home equity. It can be pretty significant in Ottawa, where homeowners can borrow up to 80% of their home’s equity. It’s a big deal, even with consideration of the amount left for the first mortgage and the determining property value. 

Conclusion

Understanding the solace and relief that mortgage refinancing can provide to homeowners can be enticing to undergo. There are so many opportunities that you’d be able to reach. Just remember to consult a financial expert along the way. 

Looking for the best mortgage refinance rates in Ottawa? Ottawa Mortgage Services’s mortgage agents offer refinancing and a range of other services to help you navigate the mortgage industry. Get a free assessment today!

The rate of self-employed Canadians is growing at a rapid pace, and as a result, the challenge of getting a mortgage for self-employed individuals is rising too.This is because income can be less predictable, unlike working with a steady employer. 

Additionally, some banks won’t recognize those who are self-employed or own a business because of an unclear history of steady earnings and tax filings. With that being said, getting a secure mortgage as a self-employed individual can be difficult. However, don’t feel disheartened because it’s not impossible. 

For this reason, many people will seek professional mortgage services to ensure they follow the right steps, and that will help them find the best deals based on their financial health.

If you’re thinking of getting a mortgage, but you’re self-employed, don’t fret. Below are some options that can help you apply for a mortgage. Let’s take a look!

What Documents Do I Need to Present?

When you’re applying for a mortgage, the documents you need to present may vary slightly. And with any application, you must provide all the necessary documents to help strengthen your application. 

Most of the time, self-employed individuals will need to show proof of income in order to obtain regular mortgage rates and products. However, some people may not provide evidence of income, so instead, they need to prove a strong credit history.

Here are some documents that self-employed individuals need to get a mortgage:

• Proof that your GST/HST is paid in full;
• Notices of Assessments;
• Contracts that provide proof of revenue and past revenue for the past few years;
• Business and personal credit scores;
• Proof of principal owner of a business;
• Business license;
• Proof that your down payment was not gifted;

What Factors Can Increase My Chances for Mortgage Approval?

1. Credit Score

When applying for a mortgage, your credit score plays a vital role in approval. When you pay off your credit card debt, don’t surpass your credit limit, consistently pay off bills, and ensure debts don’t go to collections in order to increase your credit score. 

When you have a high credit score, you will look more attractive to a lender, allowing you to qualify for lower interest rates. 

2. Down Payment

When you have more equity in your home, you are less likely to become delinquent when going through financial hardships. Putting down a hefty down payment for your home will make the bank see you as less risky. Additionally, a bigger down payment may also give you lower, more affordable monthly mortgage payments. 

For this reason, it’s best to seek mortgage advice to ensure that you’re getting the best deals and that you can negotiate a better rate for both your downpayment and monthly mortgage payments. 

3. Present Self-Employment History and Records

Having accurate records of your self-employment will give you a strong and effective track record. This way, banks will most likely lend to you after seeing that your self-employment is a success. 

With that being said, ensure that you have at least two years of self-employment history before applying for a mortgage. Also make sure to keep an eye on interest rates because when it’s low, it’s worth applying for a mortgage, even if you don’t have all your self-employment history documented. 

The Bottom Line: Getting a Mortgage When Self-Employed Is a Different Ball Game

Although getting a mortgage can be difficult for some self-employed individuals, know that it’s still possible, especially when you prepare yourself financially, get your documents ready, and seek out mortgage advice to help you secure the best mortgage deal. 

Seeing as mortgages are huge financial commitments, it’s best to ensure that, as a self-employed individual, you get to keep your finances in check and ensure steady cash flow to avoid any obstacles along the way. 

How Can Ottawa Mortgage Service Help You?

Are You looking for mortgage services in Ottawa? If so, you’ve come to the right place. 

I am Ghummaz Bhatti, and I offer a wide variety of mortgage related services that can help you land the perfect mortgage loan. I help first-time homebuyers, assist in pre-approval letters, provide support to self-employed individuals, refinancing, and more. 

Get a free assessment today!

For many, owning their first home is a lifelong dream and a significant milestone. However, like any new experience, being a first-time homebuyer can come with waves of uncertainty and you may catch yourself second-guessing your decisions at some point. 

That’s why it helps to follow a proper guide and process so you can gain confidence when going through the process of securing the home of your dreams. In that regard, proper planning comes with interviewing realtor options, looking at houses, negotiating bids, and of course, qualifying for a mortgage. 

What It Means to Plan for Your Home Buying Journey 

When it comes to buying a home, getting pre-approved is one of the best ways to simplify your buying process and gives you buying power confidence. With a pre-approval, you get to know how much you can borrow with minimal risk, allowing you to remain financially stable throughout this home buying journey. 

For this reason, it’s best to work with a reliable mortgage agent to ensure that your financial status is considered; you’re choosing the right deal that can help you in your buying process. 

If you’re thinking of getting a mortgage pre-approval, there are a number of things you need to consider. To make things easier for you, we’ve listed the dos and don’ts of the mortgage pre-approval process. Let’s get to it!

The Dos: Mortgage Pre-Approval Tips You Should Know

• Apply for Mortgage Pre-Approval: Some people think that contacting a realtor is the first step in buying a home. But in reality, the first thing you need to do is to get your mortgage pre-approved. This is because when you find a home you like, you need to move fast. Being approved removes the extra steps in the mortgage process and lets you know how much you can afford when buying a home. 

• Window Shop for Pre-Approval Rates: Just like hunting for different homes before finding the perfect one, you should do the same when dealing with mortgage rates. Proper research, comparing rates, and speaking to a mortgage agent can help you find a mortgage rate that will work for you based on your financial capabilities.

• Compile All Your Documents: There are a bunch of documents required when you apply for a mortgage pre-approval. For these reasons, it’s best to gather all your documents and keep them organized in a folder. Ensure you have all identification documents, bank statements, insurance and investment accounts, proof of assets, proof of income, and more. 

The Don’ts: Mortgage Pre-Approval Mistakes to Avoid

• Don’t Get Pre-Approved Over Your Budget: One of the biggest mistakes first-time homebuyers make is getting their pre-approval up to their maximum purchasing price. Ideally, you want to calculate how much you can afford monthly and go from there. 

• Say No to Big Purchases: Once you’ve submitted documentation to your loan officer, your financial situation should change from pre-approval until your loan’s finalization. This means you should avoid major purchases that can change your debt service ratios. 

• Hold Off from Applying for New Credit: When you’re getting your mortgage pre-approved, don’t apply for new forms of credit, such as a personal loan or credit card. Your debt level and available credit play a huge role in mortgage approval, so when this increases, it can affect your pre-approval. 

• Don’t Quit or Change Jobs: As much as possible, you want to ensure you have a steady flow of income. With that being said, avoid changes in your employment status after you’ve been pre-approved. 

The Bottom Line: Planning Ahead Promises a Worry-Free Home Buying Process

Planning can change the way your home buying process pans out. Doing proper research, speaking to a mortgage agent, and following the right steps can help you get pre-approved quicker, helping you move forward into planning your home buying process. 

How Can We Help You?

Finding and buying a home can be tricky, especially when you put your finances into the picture. Fortunately, with the help of Ottawa Mortgage Services, buying your home for the first time won’t be such a pain. 

Our expert mortgage agent in Ottawa Mortgage Services helps first-time homebuyers discover the different possibilities in home buying, get pre-approval letters, obtain assistance for refinancing, debt consolidation, and more. Looking for a mortgage? Apply online today!

Whether you’re faced with debts and expenses that you want to pay off, or you’re just looking to have some extra money to improve your day-to-day life, consider all your options. A Canadian Home Income Plan reverse mortgage, or shortly known as CHIP, may be able to help you reach your financial objectives.

A CHIP reverse mortgage is a loan secured at the cost of one’s home’s value. A borrower essentially gets tax-free money without the need to actually sell their property. The loan is paid back when the borrower chooses to do so or is no longer residing in the home associated with the deal. 

If you’re interested in getting a CHIP reverse mortgage, keep reading to learn the requirements, purpose, and benefits of applying for one. 

CHIP Reverse Mortgage Requirements in Canada 

The Chip reverse mortgage was designed for Canadian homeowners who use their home equity to get some extra cash for their expenses. A borrower can get up to 55% of their home’s value and can be split into monthly or annual payments. Borrowers can also get the money in one go. 

In order to get this mortgage loan, there are two sets of requirements to be eligible. One pertains to the home involved in the transaction, while another relates to the borrower.

The home used in the CHIP reverse mortgage should be the primary residence of the borrower. Along with that, the property value should be a minimum of $150,000. This is often determined by the location, the type of home, and its appraised value. 

Meanwhile, the borrower must be a Canadian resident who is 55 and older. If the property is owned by two people, both need to meet that age requirement to take out a CHIP Reverse Mortgage. Along with that, both are also required to stay on top of their regular property taxes and fees. 

CHIP Reverse Mortgage Purposes

The CHIP reverse mortgage was designed for a borrower to take out money while maintaining their current home. Discuss with your family and a mortgage agent moving forward to understand whether a CHIP Reverse mortgage is the best option for you.

Ideally, the money from this mortgage loan is used by retirees who want to enjoy retirement life, but it can fulfill a variety of purposes. The money can be used to cover debt, medical expenses, leisure expenses, and more. 

CHIP Reverse Mortgage Perks

Applying for a CHIP reverse mortgage goes smoothly because of the minimal requirements it asks for compared to other mortgage loans. Borrowers have the ability to keep the money from their loan and their home at the same time.

This can really help to provide a lot of financial freedom and security at an older age. Without any deductions or the need to consider payments or restrictions, a CHIP reverse mortgage can be a good source of money. 

Conclusion

CHIP reverse mortgage can be a really attractive loan to apply for. You get money from a little over half of the value of your own home to fund whatever you deem fit with seemingly few consequences. 

Need to discuss whether a CHIP reverse mortgage is good for you? Ottawa Mortgage Services can provide mortgage advice to home buyers and owners in Canada. Get a free assessment today!