Posts in category: Housing Market

First-time homebuyers should conduct their homework before making a final decision. Even if you seek advice from family, friends, and coworkers or read a few articles on the subject, you may still make some mistakes along the way.

In fact, 80 percent of first-time homebuyers say they’d rather do it all over again if they could.

This article will run you through some common mistakes first-time homebuyers make.

Not Looking beyond the Staging

This is common knowledge. It’s a common adage, especially among those who say they can see past the dated wallpaper to the house’s true capabilities. When prospective buyers begin to notice the difference between staged properties and their real-life counterparts, reality sets in.

In its most basic form, home staging is the process of decluttering and rearranging the furnishings of a property to make it more desirable to potential buyers. A staging business may redecorate the entire house after the seller has removed practically all of their possessions. 

A huge concern is that this imagined manner of living and how we actually live in a home don’t match up very well. Stagers frequently remove items like coffeemakers and blenders off worktops to make them appear larger. 

Some people may even go so far as to remove doors to make older homes appear more open and breezy. Stagers can also use tiny furniture to amplify the appearance of a place.

Getting Distracted

Shopping for a home with children may be a real challenge. Parents may cancel a scheduled showing to take their cranky toddler back to their apartment for a much-needed nap and relaxation.

Viewing houses with children might make you overlook important details. It can also lead to resigned behaviour, such as bidding and finally settling on homes out of desperation instead of waiting for the one that best meets your needs.

Trusting the Floor Plans

It is common for people to think that if a room is described as being 12 feet by 10 feet, it is the same size. As a rule of thumb, though, the measurements can get slightly inaccurate. Several faults can be introduced without the seller or their representative intending to mislead.

Not Looking into the Neighborhood

A factor often overlooked in home purchasing is your home’s neighbourhood. Before you buy, make sure you do your homework about the area. You may want to look into the following amenities you may need:

• Schools
• Community centres
• Daycares
• Coffee shops
• Take-out places

You may also need to look out for the quality of residents in the area, especially if you have a family and kids.

Not Asking for Comparables

If you are buying a property, it is best to list other comparable properties in the area. If you hire a real estate agent, they can also come up with this list for you.

A good realtor will gladly accommodate these requests and provide context for the sale prices. This will ensure you get the best option within the area and your budget.

Likewise, a mortgage specialist can help you find the best mortgage prices to purchase your home.

Conclusion

These common mistakes first-time homebuyers make can turn into costly lessons. While there is no surefire way to avoid mistakes as a first-time homebuyer, you can at least lessen the chances of these mistakes.

It helps to do some homework and hire a reliable real estate agent.

Are you looking for local mortgage brokers in Ottawa to help you purchase your new home? Ottawa Mortgage Services helps first-time homebuyers, self-employed individuals, and commercial clients secure the properties they need.

Individuals dealing with a lot of outstanding debts can benefit a lot from debt consolidation. This method allows anyone with multiple debts to manage their liabilities better and get the chance to get more reasonable interest and terms. It is a recommended move to some, but whether it could benefit you or not depends on many factors.

Before you consider debt consolidation, you need to study how it can affect your overall credit score. This step is essential, especially if you plan to purchase a house. In case you do not know yet, consolidating your debts can lower or raise your credit score. This article will tell you all you need to know about debt consolidation.

What Is Debt Consolidation?

Debt consolidation is the process of combining all of your debts into one. You can get a better interest rate on this debt if you are lucky enough. But there is still a chance of getting a loan with a high-interest rate. In some situations, you will pay interest rates that are higher than the original ones. Before you grab this opportunity, you need to find a debt consolidation loan with good terms and conditions.

If you want to lower your debt, you need to consider charged-off debt consolidation. This type will lower your unpaid debts down to one debt. As long as the debt consolidation is done the right way, you could have an interest rate lower than your original one.

How Debt Consolidation Can Increase Your Credit Score

One factor that weighs into your credit score is your debt-to-income (DTI) ratio. This ratio is based on the amount of your debt compared with your income. If you are using a debt consolidation loan, you can lower your DTI ratio. 

It can increase your credit score in the long run. Once you combine all of your debts into one, the DTI ratio may be lower, and your credit score can improve.

Another one of the main reasons debt consolidation can get rid of your debts is that it can make payments easier for you. With this process, you won’t need to pay your debt at different times because everything will be under the same loan. This makes paying on time much simpler, and this can help raise your credit score.

How Debt Consolidation Can Lower Your Credit Score

There are also instances when your debt consolidation can lower your credit score. It will do so by decreasing your available credit limit. As you combine all of your debts into one, your available credit limit will also be lowered. 

A lower credit limit means you are using more than you can afford. If you use more than you can afford, you are more likely to be considered a risky borrower.

You need to watch out for the amount of credit you are using. If you have a lower credit limit, you need to make sure that you don’t use up all of it. Also, if you can avoid using up all of it and have a higher credit score, you can get better loan options.

Conclusion

Many people are afraid that debt consolidation can lower their credit score. But you need to know that the process can be done in a way that will not affect your credit at all or even improve it. Working with people who can get you the best debt consolidation loans for your home purchase is one way to make the most of this opportunity.

Ottawa Mortgage Services is an Ottawa-based mortgage agent that can help clients of all kinds find mortgage services that would best suit their needs. We also offer a debt consolidation service that can help you save your money, increase your cash flow, and fix your credit rating. Contact us to learn how we can help. 

Refinancing is an option that can be advantageous to some homeowners, but it will only be beneficial if it takes off a lot of interest in their current mortgage. That means finding the best offer available. 

While it is a loan program any homeowner can apply for, it will not be easy to find the most suitable refinancing offer on your own. Here are some valuable tips that could help ensure that you find the lowest refinance rates in Ottawa:

1. Be the Best Possible Borrower You Can Be

If you present your best self as the borrower, you could convince the lenders to give you their best possible offers. That means showing them that you are a low-risk borrower.

To do this, have your credit score evaluated several times a year and check it by major credit agencies such as Equifax, Transunion, and Experian.

The reason is simple: a good credit score translates to a reliable and trustworthy borrower. The current interest rates will not be as low as you want them to be if you want to find the lowest refinance rates in Ottawa.

2. Show Them That You Have Good Earnings

If you are a high earner, you are less likely to be a risky borrower. It does not matter if you are a full-time employee or a part-time employee. It is your income that matters.

The lenders will definitely take a look at your earnings. They will also look at the amount you earn from your job or jobs. The lenders could include your gross income and your net income. We suggest you add your net income, as it makes your income appear more realistic.

3. Pay More Money For Your Down Payment

The more money you put down, the more comfortable the lenders will be in lending you a larger mortgage amount. That also means that you will get a lower interest rate. You will be able to clinch a better deal because you have a lot of equity in your home.

4. Compare Rates From Different Lenders

When you start shopping around for the lowest refinance rates there are, you will want to compare mortgage rates from several lenders. There are many lenders to work with, so you will not restrict yourself to only a few. If you want to find the lowest refinance rates in Ottawa, you need to do some research. 

5. Apply As Soon As Possible

If you want to find the lowest refinance rates in Ottawa, you will want to apply as soon as possible. It would be better to apply the day you have been approved for mortgage insurance. If you do not have a lot of savings, the sooner you apply, the better.

6. Get In Touch With a Mortgage Agent

A mortgage agent will be able to help you find the best lender. They can get you the right mortgage, so you could use their help if you want to find the lowest refinance rates you can get.

These professionals have the best knowledge of the current mortgage market. They know about the hidden costs and fees in the current mortgage market. 

Conclusion

If you have a mortgage on your home, refinancing is worth considering. You will get a chance to get your mortgage fixed at a much lower interest rate. You could take advantage of these low rates and be able to pay your mortgage for a more extended period. That will give you more time and more peace of mind.

When finding the lowest refinance rates in Ottawa, you do not have to do it independently. You can seek help from trusted professionals who have the knowledge and expertise in this particular field. Contact us at Ottawa Mortgage Services, and we will help you find the best rates that suit your needs.

Are you considering buying a home in the Ottawa Glebe area? If so, here are some of the main reasons you might want to do that: 

For starters, the Glebe is ideal for families. This vibrant uptown neighbourhood offers everything from large, century-old houses with expansive front yards to modern, sleek condominiums on Bank Street. 

Located on the vibrant Wellington Street, you’ll find everything from waterfront homes to walkable neighbourhood stores and restaurants. The Glebe has something for everyone with great schools, a thriving arts community, and abundant real estate options. 

Why not consider one of the many houses for sale in Glebe, Ottawa?

1. Fantastic History and Character

Like much of Ottawa, the Glebe is an older neighbourhood with a history you’ll be proud to call home. The first settlers were farmers and trappers who farmed the land until the early 19th century. 

The area became a popular Ottawa suburb in the last decades, as the city grew from a small town to a bustling capital city. Homes in the Glebe Ottawa were hot property and people flocked to the neighbourhood.

Now one of the most sought-after neighbourhoods in the city, the Glebe has witnessed some incredible homes. The neighbourhood’s original character is still evident in the many historic homes for sale in the area, and the city has preserved many of these homes for the future.

The Glebe is also home to the oldest church in the city, St. James Catholic Church, which opened its doors to worshippers in 1819. The churches and other houses of worship in the area testify that religious diversity is a unique characteristic of the neighbourhood.

2. A Diverse Community

Many Glebe residents are immigrants, representing a wide range of cultures. Over 44 percent of the population is foreign-born. Along with the many churches, the neighbourhood is home to several different synagogues, temples, and mosques. 

Given how diverse the area is, it’s no surprise that the Glebe is a cultural hub with many festivals, galleries, and community centres.

3. Gorgeous Architecture

On top of everything else, the Glebe is also home to some beautiful homes. Several historic homes are for sale in the neighbourhood, and the architecture is stunning. 

If you’re interested in buying a condo, the Glebe has some new buildings with incredible architecture. These homes and buildings are a perfect blend of historic and contemporary architecture, and you’ll be proud to call them home.

4. Has Convenient Transportation

The Glebe is a great place to own a home with galore public transportation and bike routes. Car2Go has stationed several cars throughout the neighbourhood, making it a great place to rent a car on an as-needed basis. 

If you like the idea of getting around on a bicycle, the area has plenty of bike lanes, and there are bike paths that run throughout the city. Walking is also a great option because the neighbourhood is super walkable.

Conclusion

The Glebe is a great neighbourhood to consider if you’re looking to buy a home in the city. It’s one of the oldest and most culturally diverse neighbourhoods in the city, and it has a history that’s second to none. 

If you’re buying a home for the first time, you must take the time to get to know the neighbourhood and make sure that it’s a good fit for you.

Ottawa Mortgage Services provides mortgage agent services for first-time homebuyers, self-employed individuals, commercial clients, and more. We also help clients with refinancing, pre-approvals, and debt consolidation. If you’re a first-time home buyer in Ottawa, we can help you find the right mortgage in the right neighbourhood. Get in touch with us today and let us know how we can help!

Canada’s First Time Home Buyer Incentive (FTHBI) provides funding assistance and a down-payment assistance loan to middle-class homebuyers who have no experience availing their own property before. The program reduces monthly payments by decreasing the interest rate and extending the length of the mortgage. This allows first-time buyers to own homes with lower monthly payments than they could choose for themselves, and it also lowers property taxes by increasing the appraisal value.

The program is intended to level the playing field for first-time homeowners who could not otherwise afford it, allowing them to compete with other home buyers. It is expected to help at least 40,000 buyers over the coming years as it is designed to be long-lasting and sustainable.

The program was first launched in 2019 and has since garnered the support and inquiry of countless middle-class Canadians who are hoping to acquire their dream home without spending too much of their savings.

Eligibility

First Time Home Buyer Incentive was designed for first-time buyers who have no experience owning a residential property. Applicants must be 18 years of age or older and not be a member of a household that already owns a home in Canada.

They also need to be Canadian citizens or permanent residents. The property is expected to be purchased with funds from the applicant’s own resources or that of their spouse or common-law partner.

Buyers can be owner-occupiers or investors and must intend to occupy the property. It is expected that the applicants are not principal residence at the time of application too.

Keep in mind that applicants are not required to have a minimum amount of time in Canada, and they do not need to have been previously employed in Canada.

How To Apply

To apply for the program, the buyer must apply through a participating financial institution.

When applying, the buyer must provide the financial institution with several documents. These include:

• A copy of the applicant’s birth certificate (if applicable),
• A copy of their previous Canadian passport,
• A copy of their previous Canadian citizenship certificate,
• A copy of their previous Canadian Permanent Resident Card, or
• Proof of Canadian citizenship or permanent residence.

Applicants must have their income tax returns certified by an authorized representative of the Canada Revenue Agency, Canada Border Services Agency, or Citizenship and Immigration Canada.

Some applicants may also require additional documentation such as a Social Insurance Number, and they must verify their identity with a valid Driver’s License or a piece of photo identification.

Another main requirement for the buyer, the first-time buyer’s spouse or common-law partner, and the first-time buyer’s co-applicant (if any) is to visit the financial institution together, as it is part of the primary application process.

The financial institution will fill out the necessary application forms to apply for the program, after which an application will be submitted to the local Canadian Mortgage and Housing Corporation office who will arrange for an appraisal.

Conclusion

Overall, these are just some of the most vital information about Canada’s First Time Home Buyer Incentive (FTHBI). If you happen to fit the eligibility criteria, feel free to inquire further about the other required paperwork. Not only will knowing them help you familiarize yourself with the appropriate deliverables, but you will also get a general idea of what to expect out of the process.

Be sure to know the essential details by heart, and you may just get that well-needed loan for your dream home in no time.

With that being said, if you are looking for the best mortgage specialist in Ottawa that would help you with your FTHBI, look no further than our expertise here at Ottawa Mortgage Services. We provide mortgage agent services for first-time homebuyers, self-employed individuals, and commercial clients. We also help with refinancing, pre-approvals, and debt consolidation. Contact us today and let us discuss all your available financing options.

If you are a first-time homebuyer in Ottawa, there are some things need to know before you find your new home. The real estate market in Ottawa is very active, and can be intimidating for any homebuyer. 

There are many misconceptions about the real estate market that need to be debunked. If you’re thinking about buying a home for yourself, here are some of the facts you need to get straight.

1. There Are a Myriad of Active Residential Listings in Ottawa

In today’s modern society, our knee-jerk reaction to buying homes is that “it’s expensive.” In Ottawa, this isn’t always the case. There are many affordable homes in the city that’s just a short 15-20 minute drive from the suburbs.

The best part? A majority of these listings can fall under $425,000, which is about 33 percent less than the average Ottawa home – listing at $639,000. While there has been a surge in prices over the last two years alone, there will always be a handful of affordable homes available for first time home-buyers.

2. The Value of Ottawa Homes Increases by $41,000

Home buying is more than just that. It is also an investment. If you’re just at the point in your life where you are getting out of student loans and building a savings fund, it’s only logical that you want to wait before you can get your bearings together.

The sad fact is, however, that the value of homes in Ottawa increases by at least $41,000 annually. This means that the longer you wait to buy, the higher the prices become when the time comes. Working with a mortgage agent can help you figure out the next financially wise step if you want to buy your home before this happens.

You may be intimidated by the fact that your parents could do all of these at roughly the same age you are now, but keep in mind that the economy has changed a lot since then. 

3. Your First Home Won’t Necessarily Be Your Last

Many people buy homes with the intention of living there forever. But as statistics go, people are becoming more and more inclined to reside in their homes for about 5-7 years before seeking other living arrangements.

Instead of planning for a “dream home,” people instead tend to think about how much they can afford instead. You might end up moving into a few houses before you can find one that perfectly fits your ever-changing lifestyle.

4. You Can Build Long-Term Wealth with Your Home

As mentioned earlier, home buying is an investment. Looking at all of your monthly costs, there is a lot to cover, from mortgage, utilities, insurance, and more. In cases like this, renting might be a better and easier option. However, you end up paying someone else’s mortgage and building their wealth rather than your own.

Mortgage payment is about building your own wealth and increasing the value of your home. With monthly mortgage payments, you can pay off the principal and make your home a more valuable asset.

Conclusion

Although the process can be intimidating for some, taking on the real estate market is not that difficult. As long as you bear in mind these important tips, you should be able to take on the home buying process with ease.

With a capable mortgage agent by your side, taking on real estate should be a breeze. At Ottawa Mortgage Services, we provide mortgage agent services for first-time homebuyers, self-employed individuals, and commercial clients. Consult with us today to learn more.

There is no better way to define success and stability than having a house of your own. Besides the shelter it provides, it is also a hard-earned investment that owners can be truly proud of. The tricky part of buying a home, apart from all the processes and requirements, is decision-making. Since the property is a big purchase, you have to think about your decisions well, including its long-term consequences. 

One of the most important decisions you have to make is whether or not you will buy a starter or a permanent home. If you are faced with this tough decision-making, let this article help you understand what they are and what you should choose. 

Starter or Permanent Home: What Is the Difference?

The main difference between a starter or a permanent home is how long you plan to stay in it. They may be the same house for the same purpose but might differ in structure and size. 

Starter homes are usually smaller in size and are often purchased by first-time homebuyers who are just starting. Some examples of starter homes are semi-detached or fully detached houses, condos, and townhouses. They are also the more affordable option. 

Permanent homes are houses that you see yourself living in for ten or more years. There is no clear definition of its look and size. However, since it is the house that usually accommodates a big family for a long time, it may contain more rooms than the starter homes. 

So, before you decide, think about how long you plan to live in that place you are eyeing. Weigh the pros and cons of the two as well. Here is a good comparison of the two. 

Why a Starter Home Can Be a Good Purchase

Anyone looking for an affordable and small house would benefit a lot from a starter home. Since it is more affordable, it also means that you would pay for a much lower down payment. Perhaps, you could also get a lower monthly price and finish paying it in a few years. 

Just like other investments, it also has its flaws, such as the following:

• You have a growing family with changing needs.
• You have to finish its payment should you decide to live somewhere bigger or in a different location or lose your source of income.

What to Keep in Mind Before Buying a Starter Home

If you think a starter home is what you would need in the next few years, here are some things to consider before you make your purchase:

• The Cost of the Homes: Even if starter homes are not as expensive as permanent homes, they still require you to secure a mortgage. Make sure that the price you will be paying meets your budget. Looking for lenders who provide mortgage services and having your loan pre-approved would help you with your purchase.

• The Features and Amenities: Since you will be paying less than a permanent house, expect some of its features might not fit the dream house you have. See if you are willing to stay in a home that does not have a yard or miss a half-bath before you decide. 

Conclusion

Whichever you choose, whether a starter home or a permanent home, the house you would get will be an investment. What you need to consider now are other factors, such as your priorities, budget, and plan for the future. Once decided, look for someone who can help you find a quality home that meets your needs. 

Ottawa Mortgage Services is an Ottawa-based mortgage agent that can help you find lenders allowing self-employed Canadians with good records to qualify for the lowest mortgage rates. Contact us to learn how we can help. 

There are many advantages of getting a home equity line of credit. However, before even considering it, it pays to know exactly what you are getting into first. There are two main types of home equity lines of credit. One is combined with a mortgage, and another one is a standalone product. This blog post will shed light on these two types of home equity lines of credit, or HELOC, and how they may come in handy for you. 

Getting a Home Equity Line of Credit: What You Should Know

Home equity lines of credit may be used in a variety of different ways. These two types of HELOC are designed to meet different needs and financial goals. This blog post will help you understand the specifics that go into each type of HELOC. This way, you will be able to make a more informed decision about which one may work more effectively for your specific needs.

Home Equity Line of Credit Combined with a Mortgage

This type of HELOC is also often referred to as a readvanceable mortgage. Most lenders offer this type of product combined with a mortgage under their own specific brand name. This type of HELOC combines a revolving home equity line of credit and a fixed-term mortgage.

With this type of HELOC, you will be able to use a portion of your home equity line of credit and your fixed-term mortgage to finance the purchase of your home. Depending on your lender, you may be able to gain access to other banking products such as personal loans, car loans, and credit cards that all fall under a single line of credit. 

Standalone Home Equity Line of Credit

On the other hand, a standalone HELOC is a line of credit that is backed by the equity of your home. Unlike a home equity line of credit combined with a mortgage, it has nothing to do with your mortgage. It is treated as a separate product altogether.

The total amount that can be loaned under a standalone HELOC can go up to 65% of your home’s market value or purchase price. This type of HELOC may be used in place of a mortgage to buy a home. However, certain terms may apply to buying a home using a home equity line of credit instead of a traditional mortgage. Higher down payments may be required for this type of home buying method. However, you may also achieve more flexibility in contrast to a traditional mortgage scheme. It is best to inquire with your lender as to these terms before agreeing to push through with the HELOC.

Conclusion

There are many ways by which you may be able to take full advantage of your HELOC. It pays to know the specifics of how to use these mortgage products, especially if you are thinking about using them to purchase a home. If you have additional inquiries, it is best to take them up with an experienced mortgage agent. These professionals will be able to accurately provide answers and tell you if taking out a HELOC will be a good idea for you or not. 

Should you need the assistance of a skilled mortgage professional or have questions on home equity line of credit, come to Ottawa Mortgage Services. We make it a point to provide mortgage agent services for first-time homebuyers in Ottawa, self-employed individuals, and commercial clients. We also help with refinancing, pre-approvals, and debt consolidation.