Home Buyer Tips Archives - OMJ Mortgage

Mortgage Broker Toronto Tips for Saving for A Down Payment

Morteza Sadeghi — Tue, 10 May 2022 22:36:00 +0000

As a mortgage broker in Toronto with credentials and experience, we can help you get the best mortgage rates. However, you need to start the process of getting a mortgage by saving for a down payment. Here are a few tips that can point you in the right direction.

Prioritizing is the first step in putting this kind of money together. Ask yourself if you can cut back on the number of times you go out to eat and take a vacation. Do you need to drive a newer car and buy all the latest items? Tightening your belt is the best way to save for a home. Besides, you’ll have new expenses to pay like utilities and property tax you will need to budget for when you get the keys.
Paying off your debts as much as possible is a good idea. Start with your credit cards. It’s hard to save money when you’re paying interest to someone else. Begin with the credit card that has the highest interest rate.
In Canada, you can use the Tax-Free Savings Account to put aside some money. You can put together a down payment tax-free using one of these. Get in touch with a financial planner or advisor to find out more about how these work.

As your mortgage broker Toronto, we understand how it can be overwhelming when you’re saving for a down payment. If you’re feeling stuck at any point, a credit counsellor is a professional who can help supply some ideas.

When you finally put together the money, we can help you by getting the best mortgage rates. OMJ Mortgage Capital has an excellent track record of proven results. What’s more, we take great pride in the fast turnaround times and very quick approvals that we provide to our clients.

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Steps For Getting Preapproved Before You Look At The Best Mortgage Rates

Morteza Sadeghi — Thu, 21 Apr 2022 15:03:38 +0000

Before you can start looking through the best mortgage rates, you’ll need to get preapproved. OMJ Mortgage Capital can help. Our residential team has experts on staff with over four decades of experience.

Here’s how the mortgage preapproval process works.

Basically, you need to submit some documents. These include:

Proof of a Down Payment

This money can come from a variety of different sources including:

Profits you’ve made on the sale of another property. If you’re going to include that kind of money, you need to have a Sale Agreement.
Your Savings. Any potential lender will want to see your investment o/r most recent bank statements.

Of course we are the mortgage broker in Toronto that can help you find the best mortgage rates when the time comes. However, there is more to putting together the right documentation to get preapproved.

Job Information

You’ll need to verify both your employment and income to any potential lender. Be ready to provide a combination of any of the following documents.

T4 Slips and /Recent Income.
Several of your most recent pay stubs.
Proof of any other kind of income you have like investments or the money made /of rental properties as well as any freelance work. This section needs to be complete.

You also need to provide some other information about your finances including current bank statements and a complete list of all your liabilities and assets.

Finally, before you come to us and we lend a hand looking for the best mortgage rates, you’ll need to supply some property details to any lending institution. These will include the complete address of the house or other type of property you want to buy.

The amount of the condo fees if applicable and property taxes as well as the anticipated heating costs will also need to be included.

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Tips For Your Mortgage Broker in Toronto Team on Avoiding These First Time Homebuyer Mistakes

Morteza Sadeghi — Wed, 30 Mar 2022 14:15:00 +0000

As a mortgage broker in Toronto, we’ve seen the kind of missteps that first-time homebuyers can make. We can help them get the best mortgage rates when they finally decide on a house. Plus, these friendly tips can help them stay on the right course when they venture into the real estate market as newbies.

Spending Everything You Qualify For

One big mistake occurs when first-time homebuyers use what they qualify for on the house. It’s a mistake because they need to factor in other items like food, transportation, maintenance, and utilities into their budget.

The amount a lending institution qualifies you for doesn’t take into account your overall financial picture. Don’t forget to factor in your other payments along with the mortgage numbers.

Another Mortgage Broker in Toronto Tip: Look Past The Staging

It’s important when you’re shopping for a house not to fall in love with the staging think that it’s the status quo. Keep in mind that some sellers remove personal belongings so staging companies can come in and redecorate rooms.

It’s important to keep in mind there’s a big gap between these perfect designs and the way you will actually live in the house. For example, stagers quite often take away appliances like blenders, microwaves, and coffeemakers to make a countertop look like it has more room.

Ask About The Bigger Components

Don’t be tricked by the staging company. It’s important to ask about the bigger components like AC units and furnaces as well as plumbing and the foundation. These are essential parts of any home you want to buy.

As an experienced mortgage broker in Toronto, we also like to suggest that you confirm floor plans for condos. It’s not uncommon for numbers to be copied from several building plans and need to undergo last-minute changes. Avoiding any surprises later on means measuring the rooms yourself.

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Mortgage Broker Toronto Advice on a Bridge Gap Loan

Morteza Sadeghi — Wed, 16 Feb 2022 00:08:00 +0000

As a mortgage broker in Toronto with years of experience, we can help our clients navigate different situations. For example, people who need a lot of money quickly might want to take a look at a bridge gap loan.

These are short-term financing options that are offered by many major lenders as well as some private lending companies. Generally, the duration of the entire loan is six months to two years but this varies. These can be from 90 days to one year long as well.

The banks generally charge interest rates of 2% or 3%. Private lenders on the other hand can charge 7% to 12% with additional fees.

Your Mortgage Broker In Toronto Explains How These Work

It’s best to have a good credit rating so you can show lenders that you’ll be able to pay a bridge loan back. One of the only requirements is a sale agreement for your current residence and a purchase agreement for the new home you’re buying.

If you have a low credit score, it’s possible to apply for one of these loans from private lenders.

These loans are intended to pay off your primary mortgage when there are additional debts that are owed. Some lenders ask for monthly payments while others look for an end term or lump sum amount at the conclusion.

There are several different types of people who apply for these loans including:

homeowners who want to secure the purchase of a new property before they list their current house.
Other people who can’t afford a down payment without selling their current property first.

There are a few other requirements a mortgage broker in Toronto wants you to be aware of. Traditional lenders and banks, for example, require a concrete selling date.

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Great Tips From Your Mortgage Broker Toronto to Sell Over The Asking Price

Morteza Sadeghi — Fri, 31 Dec 2021 19:33:56 +0000

Your Mortgage Broker Toronto team here at OMJ understands that selling a house means having strangers invade your space. These people investigate all the crevices and corners in your house. You might even wind up getting offers that are lower than the asking price.

Here’s a few tips to avoid that situation and have prospects offer quotes higher than what you are asking for.

Pick The Right Time.

A little research can help you decide on the best time to put your house up for sale. The beginning of May is considered a great time to put that sign on your lawn. Properties that are listed at the beginning of summer or end of spring generally sell quicker and get higher prices.

We can get you the best mortgage rates on a new place after you’ve sold. What’s more, we don’t usually suggest that you list in the Winter. That is generally the time of the year when supply and demand are at the lowest. However there is one bright spot. Listing during the that time means that your house will have less competition.

Another Mortgage Broker Toronto Tip: Price That Property Right

The first step is to find out exactly what your property is worth. Then you should lower the price by 15 to 20 percent. That will usually cause a frenzy of buyers coming in with multiple bids. The end result will be your home will get bid up over the price it is worth.

Granted, it’s a risky strategy that’s not for everyone.

Here’s a final tip from your mortgage broker Toronto that’s less adventuresome. Every buyer is looking for storage. Take half of the close out of every closet and organize what you leave in there. Buyers tend to look in cabinets and closets so they should be kept clean and tidy.

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What You Need To Ask A Mortgage Broker in Toronto

Morteza Sadeghi — Tue, 21 Dec 2021 00:39:48 +0000

A good mortgage broker in Toronto is a valuable middleman between you and traditional lenders. Their job is to compare items like the best mortgage rates from lenders and find the product that fits your needs. They can make your life easier because they have groups of traditional contacts they work with.

These are regulated and licensed professionals . They do a lot of work for you like gathering documents as well as verifying income and employment and helping you with your credit history. Mortgage brokers use the information they put together to help make applications for loans and negotiate the terms involved.

They can also help on the closing day to keep the transaction running properly. These experts work with the bank’s underwriting department as well as the title company or closing agent and your agent.

How Is A Mortgage Broker Toronto Different From a Loan Officer?

If you’re wondering about the difference between a mortgage broker and loan officer, the answer is simple. Loan officers work for one lending institution. They get paid salaries plus bonuses.

A loan officer sells and writes only those loans the employer they work for offers the public.

Mortgage brokers, on the other hand, can work independently or with a firm. They can deal with many different lenders to find products specifically geared to their clients. In other words, mortgage brokers are able to give first-time homebuyers and other borrowers access to a wide range of loans.

A mortgage broker in Toronto saves you a lot of time. Applying for preapproval with different lending institutions can take hours. Choosing the right broker means learning all that you can about their approach to clients, the level of knowledge they have and their communication style. Get in touch with us today to learn what we can do for you.

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Toronto Mortgage Broker Tips for Getting The Most From Equity

Morteza Sadeghi — Sun, 21 Nov 2021 14:52:43 +0000

We are always happy to supply useful Toronto mortgage broker tips. Some of our clients asked us how to best use the equity they have built up in their homes. After years of getting the best mortgage rates, the chances are your equity is good.

There are several ways that you can turn this money into cash to better your financial situation.

Using a HELOC

These are also called a home equity line of credit. Like credit cards, lenders will give you an amount to use at your disposal and you can spend it as needed. One of the big bonuses here is you only need to pay interest on the amount you’ve taken out.

Keep in mind there are some administrative costs when you apply for one of these loans including a title search, appraisal fee, legal fees and title insurance.

One of the more common reasons that homeowners dip into their equity are home improvements. A HELOC is a good way to finance larger projects like kitchen renovations that actually increase the value of your place. If you’re careful and plan properly, you can use the money for renovations that will help to sell your home later on.

Toronto Mortgage Broker Tips for Home Equity Loans

If you use this option, you will receive a lump sum. These are different from HELOCs because you need to start repaying the money right away. Your monthly payments stay the same because the interest rates don’t fluctuate with this type of loan.

You can even use your home equity to pay down debt. There are several good reasons for doing this. First off, you can consolidate what you owe at a lower interest rate.

Remember we are the Toronto mortgage broker that offers valued added service including quick closings and approvals.

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Mortgage Broker Toronto Advice on Taking Advantage of Covid-19 Low Rates.

Morteza Sadeghi — Wed, 21 Oct 2020 22:30:38 +0000

We’re always on the lookout for the best mortgage rates and terms as your mortgage broker Toronto. Given the pandemic, recently appointed Bank of Canada governor Tiff Macklem has even hinted at the possibility of negative interest rates.

Here’s what those kinds of low rates might mean to those of you who are looking for a mortgage.

For People Looking to Refinance

These are difficult economic times for millions of Canadians. If you’re looking to switch or refinance your mortgage these lower Bank of Canada numbers (currently 0.25%) are a good opportunity to find a lower rate at a financial institution.

Here’s a refinancing tip that will help you steer clear of trouble. It’s best to determine your goals before you start shopping for a new mortgage. For example, shortening the term of your loan is one of the things you can aim for. Of course, lowering your interest rate and corresponding monthly payments is another goal for many Canadians during these times.

You should also keep in mind that refinancing is about qualifying for a brand-new loan. That means you’ll need to have a good credit score in place and income stability. Lenders will still be watching to make sure you don’t present a big risk.

For Renters Looking to Break into the Market

With rates this low, it’s a good idea for people like renters looking to break into the market to consider some of the creative solutions available.

For example, you can look into the possibility of extending your amortization. By extending the amount of time it will take to pay your mortgage off, your monthly payments can be reduced.

We are always ready to help as your mortgage broker Toronto. Take a look at our team and then get in touch today.

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Your Mortgage Broker Toronto Supplies a List of Government Programs Homebuyers Should Look At

Morteza Sadeghi — Wed, 12 Aug 2020 22:02:13 +0000

OMJ Mortgage Capital is the Mortgage Broker in Toronto that wants to help you get the best mortgage rates. We know a home is the biggest investment most people will make in their lifetime. That’s why we use our expertise to help you with your specific financial needs.

We like to supply information you can use too. Here’s a few government programs homebuyers should know about.

The First-Time Home Buyers’ Tax Credit

You may be eligible to receive a income tax credit on closing costs of up to 15 percent. There is a maximum of $5,000 on costs relating to your home’s purchase. Still, these can help with legal fees, land transfer tax and some other closing costs you’ll incur.

Heritage Property Tax Rebate Program

This tax relief program has been on the books since 2001. It allows municipalities to give tax relief through by-laws to people who own heritage properties. You’ll need to check on the eligibility of your specific property since each municipality creates their own rules. However, the province has provided some guidelines. For example, there needs to be an existing heritage conservation agreement for the property. In Toronto, call the Heritage Prevention Services at 416.392.1975 to learn more.

The HST New Housing Rebate Details from Your Mortgage Broker Toronto

If you buy a newly constructed home, this rebate may be for you. As the name suggests, you can recover a portion of the HST you pay on the purchase price. You are also eligible if the home you buy is destroyed in a fire and later rebuilt. Adding on a major home addition is another way to qualify for this rebate.

Of course, resale homes are exempt from HST charges. OMJ Mortgage Capital is here to help you. We’re the Mortgage Broker in Toronto with a proven track record.

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Some great home buying tips from your mortgage broker Toronto

Morteza Sadeghi — Thu, 31 Aug 2017 15:52:17 +0000

When you’ve made the decision to buy a house, you want to make sure you’re making your money work for you. Here’s a few home buying tips from your mortgage broker Toronto that will help you accomplish that goal.

Stay small before you buy

Of course we can help you get the best rates for your mortgage, but you will still need to do your part to make everything go smoothly. That means you should leave your money where it is for several months before you look for a mortgage.

No big purchases for a suggested 3 to 6 months is the best plan. Lenders want to be able to see you are responsible and stable with credit.

Don’t try and out guess the market

As your mortgage broker Toronto, we can get you the best mortgage rates but we’re not magicians and neither are you. That means there’s really no way to figure out the best time to enter a real estate market. Trying to guess real estate cycles is next to impossible. If you find your dream home and can afford it, it’s time to make a move.

Big isn’t necessarily best

It’s only natural that you’d be drawn to the biggest most expensive house on the street. However, that might not be the right one for your budget and lifestyle. Keep in mind that the appreciation on your house is tied to the neighborhood. In other words if you pay $500,000 for a house and your neighbors only pay $425,000, you might wind up not making your money back in the end.

Mortgage broker Toronto final tip

Finally, as your mortgage broker Toronto we want you to be aware that the mortgage is only one cost of home ownership. Looking at the bigger picture means setting aside some money for utilities, property tax and maintenance and repairs. You’ll need to budget these costs in.

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