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Thursday, 27 June 2013

Housing starts are up

Building permits are up. Housing starts are up. Rates will be up soon too. This is your last call for historical low rates. 
MortgagePRO still able to help you with our pull to get the vary low rates, however not too long, act now, get your home before rates and prices go up. 
Canadian Real Estate Association has improved its forecast for home re-sales. It sounds fairly upbeat but it is really just a slowdown in the sales retreat that has been underway since the new mortgage rules went into effect last July.

Nationally, May re-sales came in 2.6% lower than a year earlier. But what CREA finds encouraging is the 3.6% increase in May over April. It is the biggest month-over-month jump in nearly two and a half years and it has the association adjusting its annual forecast to a 2.5% decline. That is an improvement over the earlier projection for a 2.9% decline. It is the first upgrade following three consecutive downward revisions.

The national average price for a home in May came in at a little less than $389,000, up 3.7% from a year ago. CREA expects to see the average price for 2013 increase by 2.


Rate-hold and pre-approvals are popular at MortgagePRO, get you FREE consultation session to make a well informed decision.

All you need to know about mortgages, rules, regulations and all you need to get informed!

Friday, 21 June 2013

Private lender brings alternatives to bank mortgages

To say that the mortgage market has altered in the last year is a gigantic understatement! We have seen the end of very simple cash financing, and it will be some time before we see sub-prime borrowings, no-doc loans or hard money lending in numerous localities. Even traditional mortgage lending will require much higher borrowing measures and much larger down payments for the real estate investor as well us for home buyers.
So how are you going to finance your genuine estate deals in this new natural environment?  Individuals, have sufficient amount of their own money to buy a home and or real estate for investments, and those who do, usually understand better than to use their own money for the whole purchase price.
It is a widespread thing though, for investors to start out with limited money and little experience — only to misplace all their money in the learning method. Then they have to learn how to do things the right way the second time round.
Even if you have a flush bank account, or a huge equity line of borrowing, you'll finally run out of money and need a consistent and dependable source of new cash to purchase real estate.

So how do you get this money?
You can go to a bank and try to specify for a loan — then delay to be accepted. If approved, you will need to put up a 20% to 30% down payment for each and every deal, along with giving all the bank's closing cost charges. How long will your cash last doing that?
So what is the answer? The response is utilizing private lenders to finance your real estate investments. Private lending boasts a reliable source of funds to purchase real land parcel agreements that you can go back to afresh and afresh and afresh. In detail, the more you use, the more will become available as you evolve relationships with more Private Lenders.
What is Private lending and who are Private Lenders?
The definition of a Private Lender; an individual that you can negotiate directly with on an individual basis to borrow cash for real estate investments. The cash can be utilized to buy rental real estate investments or properties to renovate a flip, at 75% LTV, meaning you must come up with about 25% equity either as a down payment, sweat equity or simply buying under appraised value to show your equity required to secure a Private Lender a low risk, manageable equity position.
Private lenders come from all strolls of life and may not understand the first thing about the genuine estate enterprise. But what they do have is extra money or assets that they can invest in your deals. These individuals are usually middle class persons, who have some additional funds to lend. They can be retired enterprise people, corporate executives, professionals such as doctors, solicitors, or business owners or even azure collar employees. Better yet if they are using a Mortgage Broker’s services to provide them lending opportunities, as Mortgage Brokers have the knowledge and experience to ensure all segment of the process will be done securing both parties in their own rights.

Private lenders are looking for returns considerably above the 3% to 5% they get at the bank with CD's or cash markets. Most Private Lenders charge anywhere 10-18% depending the risk and the covenants associated with the deal.
So the concept of "private lending" can be defined as the method of borrowing investment funds from Private individuals at rates higher than what these lenders can commonly accomplish utilizing conventional buying into organisations like banks, or conventional investment vehicles like supplies, bonds, CDs, or money markets — secured by real estate.

If you are looking to secure funds to invest in real estate PrivateLender Inc. is your most trusted Private Lender, funding mortgages all across Canada out of his own capital base and also has a long list of private individuals lending on it’s broker Zoltan M padar recommendation.

MortgagePRO is the Broker providing licensing for deals under RECA guidelines.

Monday, 17 June 2013

Mortgage Broker services are more essential than ever

Now, more than ever, you must look for a mortgage professional to arrange a mortgage for you, shop for not only the best rate, but a product, fits your need.
What are the reasons? There are many, and if you have heard about the recent tightening of mortgage qualifying guidelines, you will understand the underlining reasons to seek a professional.
Dealing with your bank is becoming the old way to look for a mortgage, for reasons are evident. Your bank might delivers exceptional personal banking service to you, providing for fee services to hold your money and fees to get access to it, they might not be the best choice to get a mortgage product from them? Why? Simply because they only offer one product, their own. One would wonder, a second opinion would be of essence to get a chance to see what others offer. Most of us, purchasing a home is the biggest investment, the most expensive of a lifetime. Would you just trust the bank representative across the table and believe him or her is most concerned with YOUR best interest? They have intensive training how to improve the banks bottom line and believe me they are working on it diligently. Are you sure the best rate and the best product is being offered to you?
Change of the rules might simply put you in a bind, you do not qualify for also numerous reasons, TDS, GDS ratios as the amortizations are shortened, thus making monthly payments higher. Also if you self-employed, the end of self-declared income or no income qualifier product will all be history before you can realize you will not be able to purchase your home and or invest in real estate.
And this gets more complicated than you will be able to follow, unless you study mortgage products and you are updated daily of the changes, meaning you have to be a mortgage broker yourself.

We are your best bet to get a mortgage custom fitted to your circumstances, not only placing your best interest in rates and products, but ensuring the process will be convenient and easy.
FREE CONSULTATION!  Please contact us for a free assessment and advice.
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