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Sunday, 29 April 2012

Must see video!

Private Mortgage Investments: The Smart Investor!

Most Canadians are not familiar with the concept of private mortgages. There is nothing inherently complicated about private mortgages - they're just unfamiliar territory for most of us. Private mortgages fill the gaps that institutional lenders, such as the banks, are unable or unwilling to fill. They offer an alternative source of financing to borrowers and a high yield investment opportunity for investors.

Institutional lenders are usually conservative by nature and like to deal with mortgage transactions that meet their normal lending criteria. When a deal is unique or doesn't fit their criteria a private mortgage can fit the needs of the borrower. Due to the higher risk, investors can usually generate a greater return on their investment in a private mortgage transaction. The difficult part in the whole process is finding a willing investor to meet the needs of the borrower.

Investors in private mortgages must be willing to take risks. They must be willing to become involved in the investment process and must know what their tolerance to risk is. They should not simply rely on the recommendation of a lawyer, a real estate agent, or a mortgage broker when entering into a transaction. They should fully understand what they are getting involved in before they agree to invest their money in any transaction.

Investors must choose what sort of real estate they are willing to finance because this real estate will be the security for their investment. For those unfamiliar with mortgage financing it would be prudent to invest only in residential or recreational properties. Making an investment in a commercial transaction can be much more complicated and much riskier. A good rule of thumb is to invest only in a geographical area that you are familiar with and visit the property before you decide to make your investment.

Yields on mortgage investments will be determined by risk. The higher the risk, the higher the yield. In today’s market you can expect a yield of 8% to 16% for a moderate level of risk. Minimum investments of $10,000 are required for private mortgages.

The typical borrower who needs private financing would be a self employed individual or someone who may have had a bad credit history in the past. They may have a substantial cash down payment available but don't meet the stringent underwriting criteria of the banks. Another area where private funds are used is for cottages. The banks shy away from properties that are not inhabitable year round but if you are familiar with the area you may have no problem making such an investment.

Private mortgages can also be held in a self-directed RRSP. Mortgages are an ideal RRSP investment because they earn interest income that can be sheltered within the RRSP. If you were to invest in a mortgage outside of your RRSP your interest income would be taxed at your full marginal tax rate, thus lessening the benefit of your investment.

In summary, private mortgages can be a very rewarding form of investment but they are very much a hands on investment. You must be willing to take the responsibility to choose the investment that meets your needs and your tolerance to risk.
If you are interested in making an investment in private mortgages, or would like more information, please contact Zoltan M Padar at www.myrrsp.com

Saturday, 21 April 2012

The right mortgage term can make you money!

Fixed rate mortgages gaining popularity

It wasn’t too long ago that the prevailing wisdom held that variable-rate mortgages were the way to go. Now, a recent poll reveals that fully half of all Canadians said they would choose a fixed rate mortgage if they had to decide today, a 10 per cent increase from a year ago. That’s a huge shift from the past five years, when people saved money by sticking with variable rates. Brokers can certainly attest to this trend, and say they are seeing clients choose longer term mortgages with rates at historic lows. They are also recommending that clients go with as long a term as possible, event 10-years, as rates haven’t been this low like never! Also tere are other opportunities can be brought to you by choosing the right term helps you to be mortgage free in only a couple of short years. do not underestimate the importance of your financial well being just by assuming the right way is to pay your mortgage make banks rich and there is no other way, you grandparents has done it this way and you parents too, and it is you way as well to get enslaved by your lender. Where there is a will, there is a way, get the best advice and you decide!

Maybe the ten year term alongside with ten year amortization

Questionable rate when it comes to you decision about what is important for you and these questions a not subsiding, till you have a home and no mortgage. It is even more in the focus when your home is making you money, you are in the enjoyable independent zone, you are set to retire at an age most thinks impossible, when life still enjoyable. How does it works. Think of your saving account, your return is what about 2% annual, what hardly cover inflation rate. At same time you mortgage is 3.55 if you lucky and got the best credit and job. Paying down a 10 years term with 10 years amortization gives you the best savings at currently 3.99% ensuring you principal reduces very fast and you paid the minimum possible to the lender in interest. Better yet, all the money you use to pay off your mortgage can be re-borrowed at 3% rate and invested at 10-16% making sure you make a profit with other people money. Even better, your borrowed capital is tax free. Few tricks, enhancing your financial health can put you ahead in life. Now there is another reason to call MortgagePRO and request a FREE CONSULTATION  in personal or by SKYPE (SKYPE name: padar.zoli) and start building today for your tomorrow. We know how to and will help you to set yourself up!  

Thursday, 12 April 2012

Mortgage Advisory! Number four: get a pre-approval!

Pre-approvals! Way to go shopping for a home!

Helping you to obtain a mortgage, the best available for you under your personal circumstances; custom tailored to your financial abilities and needs do not stop only offering you our services. We are here to provide you with a plan, execute same precisely and come to positive conclusion.
MortgagePRO is not only administering your process, gets you a mortgage and job well done. The importance of sound financial advise is also one of the most important tool what we will provide you while we are working on to bring the best offer to the table. Many lenders, many strategies, many products, however your financial situation plays huge roll on to what is the final product along with lender you choose to go with. 

We strongly suggest you to heed our advice for your own good, however if you think it might not something you want to do, at least listen to us and read the benefits of  a pre-approved mortgage before you are going for property hunting:
  • confidence: with a pre-approved mortgage you are confident you are in the sopping of your life, you are not only looking but you are a real contender
  • limits: you know your limit, you know how much you can spend and you will not drag a realtor all over town looking at properties what you can not afford
  • negotiating power: now you know the money in the bank and you know you have access to it, you have the confidence of a real property buyer, negotiate the price; low balling is a form of negotiation, you will be surprised how many time your offer will be well received even it is a low one
  • certainty: when you have a mortgage pre-approved there are now worries about last minute turn down by a lender for the reason of that unpaid phone bill two years ago what you have completely forgot about.
  • convenient: like you put you valet in your inner packet, you are ready to spend
  • peace of mind: you can avoid disappointment looking at homes you can not afford, making the shopping experience a pleasureful one and will be happy when you find the right home for you and for your family... a stress-free experience, courtesy of MortgagePRO, your Trusted Adviser!
Most convenient way to get a pre-approved mortgage is to submit an application online and we will analyze your situation and get an approval in just 24 hrs. depending your circumstances.
Click here for a FREE CONSULTATION session and we will give you a FREE entry to WIN a PARIS getaway and spending money to shop.
MortgagePRO; where everybody is a winner!

Wednesday, 11 April 2012

Mortgage Advisory! Number three: mortgage types and options!

Mortgage Types and Options! Make it custom fit!
 
Are you sure your bank is giving you the best possible rate and product custom fitted to your circumstances and needs not of their own? Think Again!


Plain and simple: your mortgage broker must find you a mortgage product what fits your:
  • budget: to ensure you are able to maintain payments even if you have temporary job or health issues and or extra expenses what you have not foreseen at the time of your application
  • term: meaning if you are planning and or more likely will move in a year or two do not take a 5 year term closed mortgage as the penalties might be too high vs. the saving on the rate
  • high rate mortgage: in case you are not able to qualify at mainstream lenders an must deal with alternative lenders due to credit and other issues, make the term only a year or two and while already have ownership take time to clean up your credit
  • credit: sometimes you must take a high rate mortgage, make sure you are work diligently to repair your credit, or better eliminate your debt to get back to low rates and a good lender
  • personal: there are other personal circumstances to consider, everybody has their own, most assured the mortgage what your Mortgage Broker recommends you will be custom fitted to your needs and not of the lender
Mortgage Types:
  • conventional: when a borrower has a minimum 20% down payment when purchase or 20% equity at refinancing it is called conventional mortgage Under traditional mortgage financing the mortgage do not exceed 80% LTV of the home value! (you save a bundle on CMHC, Genworth etc. insurance cost)
  • insured or high ratio: allows the borrower to put 5% down when purchase or have 5% equity when refinance. Insurance required by lender, insuring the lender, paid by the borrower! Insurers guidelines apply. There are other insurers than CMHC, your mortgage broker will get the one approved by your lender and providing you the best policy along with suitable guidelines!
  • zero down payment: the true zero down payment is history as the government has eliminated it, like many other goodies from our lives, however no money down mortgage is available via "cash back" or "flex down" programs through the lenders insurer like Genworth, CMHC and Canada Guaranty! These programs are only available OAC.
Mortgage options:
  • open mortgage: allows borrower to repay all or portion of the mortgage at any time without penalty. These type of mortgages are typically has higher interest rate, but the flexibility is priceless.
  • closed mortgages: ideal for long term stability and budgeting. There are restricted options for prepayment, however they allow you to make lump sum payment every year without prepayment penalty! Must be negotiated at the time of applying for the mortgage or refinance a mortgage.
  • variable mortgage: volatility as you do not know when rates are changing and not a good option when rates are most likely will go up. It fluctuates with prime rate! When your Mortgage Broker advises you the rates are most likely will go down, you can ride out a term 1-5 years with huge savings on interest rates. Otherwise you must get a cap rate product. What is it? 
Contact us for a FREE CONSULTATION!


Tuesday, 10 April 2012

Mortgage Advisory! Number two: the right broker!


How to pick your Trusted Professional: Your Mortgage Broker!

The information that you are about to read will give you some insight into how the mortgage industry operates and help you avoid making decisions that are harmful to your own best interests. Before you even talk to a mortgage broker, you must have a clue if nothing else you can graduate your selected mortgage broker about the knowledge he or she possesses. It is important to pick a broker with experience and knowledge!
  
Before you get a nod, your lender wants to know certain thinks about you, like:

How much debt do you have? Too much you owe, you will not be able to keep up monthly obligations and it is the first red flag. We help to consolidate debts and even eliminate debts!
What is your credit rating? Your history on credit bureau report tell it all! Very important to have a high so called BEACON SCORE as many lenders are making decisions based on the score! 
What is your down payment or how much equity do you have in your home? Seriously important to see you ability to save and create equity and responsible spending!
What should your interest rate be? Your credit andyour history will determine the degree of risk, higher risk higher interest rate, it is only makes sense!
What is your home or the home you wish to purchase worth? DO not believe anybody, only professional Appraisers to determine the value of the property you are about to purchase. Realtors are not Appraisers keep in your mind!
What is your family income? Better your cash flow, lower is your interest will be as you are demonstrating your ability for repayment and therefore you are a lower risk, deserving better rate. There are many stipulations and a good mortgage broker can truly help you to present your employment track record to lenders make sense to them and look at your application with open mind when you self employed or just changed employment and or started a new venture.
What other debts do you have? TDS Total Debt Ratio is the amount of all monthly debt commitment including the proposed mortgage payment along with condo fees and or heating cost and can not be higher than about 40% of your total combined gross earning. Some lenders go higher, but charge higher interest as well.

Why are these things important to know? Because they will determine the best lender and the best program that will enable you to do what it is that you really want.

Don’t Assume that Your Bank is Necessarily Your Best Option!

Don't sign the Mortgage Renewal Statement before you consult a Mortgage Broker!

How to Choose the Best Mortgage Broker for Your Loan
This is where you must become the expert and where you must trust your instincts. Be prepared beforehand. Remember your list of objectives. Get your paperwork together. Now you are ready to actually speak with a broker.  
Request a FREE CONSULTATION SESSION!  
Avoid:
Someone who makes outlandish promises
A fast-talking person who pushes to set up an appointment
Someone who seems impatient or who does all the talking
Someone who seems evasive or avoids answering your questions directly
Someone who seems to make assumptions about you
Someone who offers no information that you find useful
Someone who doesn’t give you a distinct impression of professionalism
       You want:
 Someone who is courteous and friendly, yet businesslike
 Someone who takes the time to ask you about your objectives
 Someone who answers all your questions directly and completely
 Someone who seems sincerely interested in helping you meet those objectives
 Someone who asks hard questions and asks for supporting documentation
 Someone who demonstrates patience and does not seem in a hurry for you to make a decision but who is able to provide the information you need to make an informed decision
 In short, what you are looking for is a Trusted Professional. Who takes the time to determine your ultimate goals and use their expertise and experience to help you find the ultimate solutions to those goals. Their insights can provide you with answers that you had not previously considered, such as how to reduce your overall debt, and how to own your home sooner. They can help you decide whether a variable rate might be in your best interests, and whether or not some degree of debt consolidation might work in your favor.
Provide straight honest answers to get better representation!
Many of the questions your mortgage consultant will ask you may make you feel slightly uncomfortable because they involve private areas of your financial life. Questions about income, debts, and late payments may feel invasive, and you may feel put on the spot. You may even feel tempted to exaggerate your income or the value of your home, or to understate late payments or the number of debts you have.
Perhaps you have been turned down elsewhere, and you assume that omitting whatever detail kept you from getting the previous loan may help you slide through this time. However, we would like to caution you strongly. Never lie to your mortgage consultant. Don’t exaggerate, leave anything out, or minimize any negative aspects.
Why? Because everything you tell him or her will have to be documented and verified anyway. The truth will come out in the end, regardless, and you will merely have delayed the inevitable and wasted everyone’s time – including your own. It’s sort of like a smoker who is having chest pains telling his doctor he doesn’t smoke. Accept the reality of your situation, warts and all, and make it clear to the person attempting to get you a loan. Your mortgage consultant is essentially taking your application, making it into a nice, neat package and submitting it to the best lender for your situation based on the information that you’ve given them. This lender will still have to confirm all of the details provided so that they can confirm if your deal is best suited for them as a lender. Without accurate information, the mortgage consultant and the lender cannot do their jobs properly and the result is that you won’t get the loan. Give your mortgage consultant all of the information needed and then let them roll up their sleeves and go to work on getting your loan approved.
Some Financial Advice!
This is where your Trusted Professional can help. After all, for most of us, our home is our greatest financial asset. It is also a powerful financial resource that can be leveraged to help eliminate high-interest debt and free up large portions of you income to pay off your home sooner. Don’t forget to ask your mortgage professional for suggested scenarios that can help you achieve the ultimate objective – becoming totally free of debt.
Thank you for choosing us to be your Trusted Professionals!

Thursday, 5 April 2012

Mortgage Advisory! Number one: hire a broker!

Hire an experienced Mortgage Broker is step number one!

Request a free no obligation consultation before you decide who is the best to represent your best interest. Broker who is not afraid to give you his time free, will be the best to represent your best interest!
The very first tip is to make sure you are not paying a rate you were offered by your bank. When you sign for a mortgage, either at purchase, refinance and or remortgage, make sure you are getting the best deal it is available to you. There are circumstances makes your mortgage interest rate higher and there are remedies you can push them lower.
For a start, do not believe your providing you the best possible solution. They are in for the money and only offering you one mortgage product, their own. And believe; no matter how long you are with them, they will not give you the most discounted rate as they know you will not check up on them. One option is no option, it is simply giving in as you think they are your best bet as you bank at their branch for 15 years. Wrong! they have a bottom line of return to meet with their investment goals and they will not think for a minute to stick it to you as most likely you are oblivious. Don't be quick to sign the renewal comes from you current lender, they are counting on it you will just sign up to their offer as it is very convenient. Most likely there is a better alternative out there for you. Let your mortgage broker check it out, cost you nothing but a second opinion always handy, after all it can be thousands in unnecessary wasted money you can put for better use.
Claim your free entry!
When it comes to interest rates, you most likely able to save thousands of your hard earned money by getting a mortgage broker review your request and help you to get the best possible rate custom fitted to your circumstances and needs and not of the lenders.
There are many tricks to shorten the amortization period, play with rates, terms and different lenders product, but do not forget, there are well qualified mortgage brokers and having them in your corner will save you a bundle.
I will provide you more information on how to save interest on your mortgage, as your interest payments are nothing but the profit you pay to the lender, regardless it is a bank, trust company or a private lender.
Keep on coming back to look for more tips, you need them if nobody cares, we do.
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Wednesday, 4 April 2012

Get Your First-Time Home Buyers’ Tax Credit!


What is the first-time home buyers' tax credit (HBTC)? MortgagePRO has the answer!
The HBTC is a non-refundable tax credit for certain homebuyers who acquire a qualifying home after January 27, 2009, that is - closing after this date.

How is the HBTC calculated?
The HBTC is calculated by multiplying the lowest personal income tax rate for the year (15% in 2009) by $5,000. For 2009, the credit will be $750. However, if the total of your non-refundable tax credits is more than your federal income tax, you will not receive a refund for the HBTC.

Who is eligible for the HBTC?
You will qualify for the HBTC if:
  • You or your spouse or common-law partner acquired a qualifying home; and
  • You did not live in another home owned by you or your spouse or common-law partner in the year of acquisition or in any of the four preceding years.
If you are a person with a disability or are buying a home for a related person with a disability, you do not have to be a first-time home buyer to get the HBTC. However, the home must be acquired to enable the person with a disability to live in a more accessible dwelling or in an environment better suited to the personal needs and care of that person.
For the purposes of the HBTC, a person with a disability is an individual who is eligible to claim a disability amount for the year in which the home is acquired, or would be eligible to claim a disability amount if we ignore the costs for attendant care or care in a nursing home were claimed as medical expenses on lines 330 or 331.

What is a qualifying home? More about this from MortgagePRO!
A qualifying home is a housing unit located in Canada. This includes existing homes and those being constructed. Single-family homes, semi-detached homes, townhouses, mobile homes, condominium units, as well as apartments in duplexes, triplexes, fourplexes, and apartment buildings all qualify. A share in a co-operative housing corporation that entitles you to possess, and gives you an equity interest in, a housing unit located in Canada also qualifies. However, a share that only provides you with a right to tenancy in the housing unit does not qualify.
Also, you must intend to occupy the home or you must intend that the related person with a disability occupy the home as a principal place of residence no later than one year after it is acquired.

Important things to remember
The home must be registered in your or your spouse's or common-law partner's name in accordance with the applicable land registration system.
You do not have to submit documents supporting your purchase transaction with your income tax and benefit return. However, you have to make sure that this information is available if the Canada Revenue Agency asks for it. For more information, visit www.cra.gc.ca/hbtc.