Tuesday 29 January 2013

how to choose the RIGHT mortgage broker.

how to choose the RIGHT mortgage broker.

We already know the answer to this question.  It’s me.  Why? What’s the difference?

The majority of homebuyers start off by speaking with their banks when shopping for a mortgage.  Not a bad place to start.   They are the people that handle your day - to - day transactions, Visa’s, lines of credit, TFSA’s, safety deposit boxes, etc.   There in lies the problem.  Most of the bankers out there are “Jacks of all trades,” and masters of none.   As a matter of fact, they do not require a license to give advice to people on what is generally the largest purchase of their lives.  Coming from the Banking world, I experienced this first hand.  As a broker, we do need to be licensed.  We also need to renew our professional licenses and memberships annually.

EXPERTISE

You don’t go to a mechanic for a nice steak, and you don’t ask your butcher to change your alternator.  So why would you trust your mortgage to an institution that has limited options?  Choice is power.

EXPERIENCE

As a broker, we offer you options.  Our responsibility is to look at your entire financial situation and match you with the best lender.  We don’t try to put a square peg in a round hole.  Before I became a mortgage specialist with the banks, I was an insurance and investment broker.  I have the knowledge and experience to deliver the best advice for now and the future.

OPTIONS

We have access to more than 20 lenders including many of the Canadian Chartered Banks.  We have access to Credit Unions and companies called Mortgage Backed Security companies.  MBS’ specialize in mortgages and some offer Homeowner Lines of Credit. 

SAVINGS

How do we get great rates?  Easy.  The lenders do not pay for our location or expenses. They don’t pay us a salary.  Unlike the bank, we do not create overhead costs for the banks and lending institutions.  They reward us with great rates.  We often get rate specials that banks do not have access to.

PERSONALITY

Why not have a great time while getting a great mortgage?  Somehow I get invited to a lot of my client’s weddings…. Weird. Awesome.

CONVENIENCE

We have a convenient location or I can come to you.  We work around your schedule. You are not limited to the operating hours of the bank.

ACCESIBILITY

Cell – 519.630.5905
Office – 519.433.5013
Fax – 519.433.0402
Twitter - @Ayoungmortgages
In person – 259 Wellington Rd. London, Ontario N6C 4N7
Facebook – You can find me

COMMUNITY FOCUS

For every deal funded, I make a donation to the non-profit organization of your choice.  This directly affects your community and perhaps the people you care about the most.

When I am not working on getting people the best mortgages possible, I serve on the program board and centre board for Merrymount Children’s centre.  I have recently volunteered my time to the planning committee for the Comedy Night in support of Merrymount Children’s Centre coming up on November 7th, 2013.

So if you appreciate EXPERTISE.
Looking for someone with extensive EXPERIENCE.
Wishing to explore your OPTIONS.
Enjoy SAVING your money.
Understand the value of CONVENIENCE.
Admire ACCESIBILITY.
Appreciate someone that gives back to the COMMUNITY.

You don’t need to look any further. 

Thank you for your continued support through your referrals.

Thanks for visiting an AWESOME approach to MORTGAGES.

Monday 7 January 2013

For the younger buyer.....How to get prepared for your first home!

 
"Hey Andrew Young, I’m younger and I want to be prepared to buy a house in a couple of years, what do I need to do?"

There are usually four major components to getting you approved for a mortgage:

1. Employment - We need to prove that you have a source of regular income.  In general, after you start your new job, you will need to be employed by the same company for a minimum of 3 months or until you pass probation. 

2. Down payment - We need to see how much down payment you have and prove the source of the funds.  The minimum down payment amount is 5% of the purchase price of the home.  For down payment proof, we will need 90 days record of your bank account, RSP’s or TFSA.  Also, you can obtain your down payment as a non-repayable gift from a direct family member. 

3. Credit - We need to prove your identity and show that you repay your debts in a timely fashion.  We do this by collecting your name, address and Social Insurance Number.  We access your credit bureau via Equifax or Transunion.  These companies track your payments, balances and repayment history.

4. Affordability – We perform a calculation to discover your Total Debt Service Ratio (TDSR).  It’s a calculation that takes your monthly ‘must pay’ items (credit card, line of credit, car loan or student loan) and we divide that by your gross monthly income (income before taxes).  From that we have a ratio that indicates how much of a mortgage payment you can afford.

Here are some tips for you…

Manage your credit

Do yourself a favor - if you borrow it - pay it back!  Credit cards debt is not free money.  Pay more than the minimum balance on your credit card debt every month or it will cost you a fortune and take you many years to pay it back. 

Keep the correspondence from your student loan provider(s).  There are often mistakes on credit bureaus that can be cleared up with the proper paperwork. 

Don’t take on more than 2 credit cards.  It is redundant to have more than 2.  Beware of the ‘in-store’ credit cards.  If you don’t pay the balance off monthly, you could be charged 18-28% interest on the balance.  The less debt you have, the higher the mortgage amount you could be approved for.

Save your money

Set up an account (High interest savings or TFSA) and make regular contributions.  It may be easier to setup a regular deposit amount through your bank.  It is best to use the power of interest to help you save for a house.  You can use the Home Buyers Plan (HBP) where you can contribute into an RSP and use that money as down payment.  You do have to pay that money back into your RSP over a 15 year period.  You get a 2 year grace period where you don’t have to make payments.

In closing;

  1. Pay your debt on time and often
  2. Keep records of the debts you incur
  3. Don’t take on more credit than you truly need
  4. Set up a savings account and make regular deposits

If you follow these simple steps, you will be in great financial shape to buy a house.

Thanks for visiting an AWESOME approach to MORTGAGES. 

If you have any further questions, please feel free to contact me at:

Andrew.young@bemortgagewise.ca or directly at 519-630-5905.