Purchasing a home is one of the financial decisions you'll make in your lifetime. It involves navigating complex financial processes, understanding mortgage options, and ultimately finding the right loan to suit your needs. While you could approach this journey on your own, enlisting the services of a mortgage broker offers several compelling advantages. In this article, we'll explore why hiring a mortgage broker is smart when embarking on your homeownership journey.

Expertise and Industry Knowledge:

Mortgage brokers are professionals with in-depth knowledge of the mortgage industry. They stay up-to-date with the interest rates, and lender policies which allows them to provide valuable insights and guidance tailored to your unique financial situation.

Access to a Wide Range of Lenders:

One of the primary benefits of working with a mortgage broker is their extensive network of lenders. They have access to multiple financial institutions, including banks, credit unions, and private lenders. This means they can shop around to find the most competitive rates and loan options on your behalf.

Personalized Advice:

They use this information to recommend mortgage products that align with your needs. Whether you're a first-time homebuyer, self-employed, or seeking to refinance, a mortgage broker can help you find the right solution.

Time and Convenience:

Searching for the perfect mortgage can be a time-consuming process. Mortgage brokers streamline this process by doing the legwork for you. They gather the necessary documentation, complete paperwork, and liaise with lenders, saving you valuable time and reducing stress.

Negotiation Skills:

Mortgage brokers are skilled negotiators. They can leverage their relationships with lenders to secure favorable terms and rates on your behalf. This often results in cost savings over the life of your loan.

Unbiased Advice:

Unlike bank loan officers who represent a single institution, mortgage brokers work independently. They don't have a vested interest in promoting a specific lender's products. This independence ensures that the advice they provide is impartial and focused solely on your best interests.

Tailored Solutions:

Every borrower's financial situation is unique. Mortgage brokers recognize this and tailor their recommendations to your specific needs. They consider factors such as your credit score, income, and long-term financial goals to find a mortgage that suits you.

Assistance with Complex Cases:

If you have a less conventional financial situation, such as being self-employed or having a lower credit score, securing a mortgage can be challenging. Mortgage brokers have experience working with a wide range of clients, including those with complex cases. They can help you navigate these challenges and find solutions.

Cost-Effective:

You might assume that hiring a mortgage broker comes with added fees, but in many cases, their services are free for borrowers. They are compensated by the lenders, meaning you can access their expertise at no additional cost.

Peace of Mind:

Perhaps the most significant advantage of working with a mortgage broker is the peace of mind it brings. You can trust that a dedicated professional is guiding you through the mortgage process, ensuring you make informed decisions and secure the best possible loan for your situation.

In conclusion, hiring a mortgage broker is a prudent choice when embarking on your homeownership journey. Their expertise, industry knowledge, and commitment to your best interests can save you time, money, and stress while helping you secure the ideal mortgage for your dream home. When it comes to something as significant as buying a house, enlisting the services of a mortgage broker can make all the difference in your financial well-being.

Looking for Your Dream Home in Burlington? Look no further! Our expert Mortgage Brokers in Burlington are here to help you turn your homeownership dreams into reality.

For many Canadians, homeownership is a significant achievement, but it also represents an opportunity for financial flexibility. One way to unlock the value of your home is by obtaining a second mortgage. Whether you are looking to consolidate debt, fund for home renovations, or invest in other opportunities, a second mortgage can be a valuable financial tool.

Let us explore everything you need to know about getting a second mortgage in Canada.

Understanding Second Mortgages

A second mortgage is a loan secured against the equity you have built in your home. It's called a "second" mortgage because it comes in addition to your primary mortgage, which is the initial loan you used to purchase your home.

Why Get a Second Mortgage?

There are various reasons why Canadians consider obtaining a second mortgage:

1. Debt Consolidation: If you have high-interest debts like credit card balances or personal loans, a second mortgage can be used to consolidate these debts into a single, lower-interest loan. This can save you money on interest payments and simplify your finances.
2. Home Renovations: Second mortgages are commonly used to finance home improvement projects. Whether it's a kitchen remodel, a new bathroom, or a basement renovation, tapping into your home's equity can fund these upgrades.
3. Education Expenses: Some homeowners use a second mortgage to cover the cost of their children's education, particularly when other financing options may not be as favorable.
4. Investment Opportunities: Real estate investments or other income-generating opportunities can be funded through a second mortgage. This allows you to leverage your home equity for potential financial growth.
5. Emergency Expenses: Unexpected medical bills, emergency repairs, or other urgent financial needs can be addressed by accessing a second mortgage.

How Does a Second Mortgage Work?

Getting a second mortgage involves several key steps:

1. Equity Assessment: Lenders will assess the current market value of your home and subtract your outstanding mortgage balance to determine the available equity. The amount of equity you have will influence the size of the second mortgage you can obtain.
2. Loan Terms: You'll need to decide between a home equity loan (where you receive a lump sum) or a HELOC (which provides a revolving line of credit). Loan terms, interest rates, and repayment schedules will also be determined.
3. Application and Approval: Once you apply for s second mortgage the lender will review your credit history, and other financial factors to check your eligibility and interest rate.
4. Legal Process: Legal documentation and registration against your property are part of the second mortgage process. These legal steps protect both you and the lender.
5. Funding: Once approved, you'll receive the funds from your second mortgage. You can then use these funds for your intended purpose.
6. Repayment: You'll make regular payments on the second mortgage, which will include both principal and interest. The terms of your loan will dictate the repayment schedule.

Interest Rates and Costs

Interest rates for second mortgages can vary depending on factors like your credit score, the loan-to-value ratio, and the lender. Generally, second mortgage interest rates are higher than those for primary mortgages but lower than unsecured loans or credit card rates. Additionally, there may be closing costs, legal fees, and appraisal expenses associated with obtaining a second mortgage.

Managing Risks and Responsibilities

It's crucial to understand that with a second mortgage, your home is used as collateral. This means that if you fail to make the required payments, you risk losing your home through foreclosure. Before obtaining a second mortgage, carefully assess your financial situation, including your ability to meet the repayment terms.

Why Work with a Circle Mortgage

Navigating the complexities of obtaining a second mortgage can be challenging, but you don't have to do it alone. We at Circle Mortgage, can simplifying the process and ensuring you make informed decisions. 

Here's how we can help:

1. Access to Multiple Lenders: We have access to a vast network of lenders, which allows us to shop around for the best rates and terms on your behalf.
2. Tailored Solutions: We take the time to understand your financial goals and match you with the lender and services that aligns with your needs.
3. Expert Guidance: We provide expert advice and guide you through the application process, helping you avoid potential pitfalls.
4. Time Savings: We handle the paperwork, documentation, and communication with lenders, saving you valuable time and reducing stress and negotiate favorable terms, potentially saving you money.
5. Ongoing Support: Even after your mortgage is obtained, we can provide ongoing support and advice.

Conclusion

Getting a second mortgage in Canada can be a strategic financial move, offering access to funds for various purposes. However, it's essential to approach it with careful consideration and expert guidance. By working with trusted professionals like Circle Mortgage, you can make informed decisions and leverage the equity in your home to meet your financial goals while minimizing risks.

For many homeowners, the equity they have built in their homes represents a valuable financial asset. It's a testament to their investment and responsible financial management. But did you know that you can leverage this equity to achieve various financial goals? One way to do so is by considering a Home Equity Line of Credit, commonly known as a HELOC. 

In this article, we will explore what a HELOC is, how it works, and whether it might be the right financial tool for you.

Understanding the Basics of a HELOC

A Home Equity Line of Credit (HELOC) is a type of revolving credit that allows homeowners to borrow against the equity in their homes. Equity, in this context, is the difference between the current market value of your home and the outstanding balance on your mortgage.

HELOCs are considered "revolving" because, similar to a credit card, they provide a maximum credit limit, but you only borrow and pay interest on the amount you use. This flexibility makes HELOCs a versatile financial tool for various purposes.

Is a HELOC Right for You?

Determining whether a HELOC is suitable for your financial needs requires careful consideration of your goals, financial situation, and risk tolerance.

Here are some factors to weigh when deciding if a HELOC is right for you:

1. Financial Goals:

• Debt Consolidation: If you have high-interest debts, like credit card balances or personal loans, consolidating them into a HELOC can help you save on interest payments and simplify your debt management.
• Home Improvements: Many homeowners use HELOCs to fund home renovation projects, increasing the value of their property.
• Education Expenses: HELOCs can be a financing option for education expenses, offering competitive interest rates compared to other forms of borrowing.
• Investment Opportunities: Some individuals use HELOCs to invest in opportunities like real estate or stocks, potentially earning a higher return than the cost of borrowing.

2. Financial Situation:

• Equity: To qualify for a HELOC, you'll need to have a sufficient amount of equity in your home. Lenders typically require a minimum of 20% to 30% equity.
• Credit Score: Your credit score will impact your ability to secure a HELOC and the interest rate you receive. Higher credit scores usually result in better terms.

3. Risk Tolerance:

• Variable Interest Rates: HELOCs often come with variable interest rates, which means your monthly payments can fluctuate with market rates. If you prefer fixed-rate stability, a HELOC may not be the best choice.

4. Repayment Plan:

• Interest-Only or Amortizing: HELOCs typically offer interest-only payments during the draw period (the initial period when you can borrow from the credit line). Afterward, you'll enter the repayment phase, where you'll start repaying both principal and interest. Ensure you have a plan for how you'll handle this transition.

5. Responsible Use:

• Discipline: A HELOC gives you access to a significant amount of credit. Responsible use is essential to avoid overextending yourself and putting your home at risk.

6. Alternatives:

• Consider Other Financing Options: Depending on your needs, alternatives like personal loans, refinancing your primary mortgage, or a traditional home equity loan might be more suitable.

7. Consultation:

• Talk to a Mortgage Professional: Before making a decision, consult with a trusted mortgage professional, such as Circle Mortgage, who can assess your specific situation and provide expert guidance.

In Conclusion

A Home Equity Line of Credit (HELOC) can be a valuable financial tool when used wisely. It offers flexibility, competitive interest rates, and the ability to access funds for various purposes. However, it's crucial to evaluate your financial goals, situation, and risk tolerance before pursuing a HELOC. 

Circle Mortgage can provide you with the insights and guidance needed to make an informed decision. A HELOC might be the right choice to help you achieve your financial aspirations, but it's essential to do your due diligence and consider all factors carefully.

In January the Teranet–National Bank National Composite House Price IndexTM rose 0.3% from the previous month, a tic higher than the historical average for January and a second consecutive monthly increase. However, only four of the 11 metropolitan markets surveyed showed gains – the first time since January 2016 that a rise in the Composite Index has had so little breadth. It was due mainly to a second straight monthly jump of the index for the important Vancouver market (1.2% in January on the heels of 1.3% in December). The Toronto index rose 0.2%, the Victoria index 1.0% and the Montreal index edged up 0.1%. All the other component indexes were down on the month: Hamilton (−0.2%), Ottawa-Gatineau ( 0.2%), Edmonton (−0.3%), Calgary (−0.3%), Halifax (-1.0%), Winnipeg (−1.1%) and Quebec City (−2.0%). For Montreal, it was a 13th monthly increase, and for Hamilton it was a fifth decrease in a row. The rise of the Toronto index was the first in six months. The raw (unsmoothed) Toronto index [1] on which it is based was up for a third consecutive month. The firming of the smoothed index is due entirely to condo dwellings. The smoothed index for non-condo units fell in January for a sixth straight month, bringing its cumulative decline to 9.6%.
Click here for full release. https://housepriceindex.ca/2018/02/toronto-index-stopped-trending-down-in-january/

In October 2017, CMHC surveyed 2,507 prospective home buyers on-line. Respondents were all prime household decision-makers who intend to purchase a new home within the next two years, including approximately 1,500 First-Time Buyers, 500 current owners, and 500 previous owners.
The survey results highlight that:
• First-Time Buyers and Previous Owners share the same top motivator to purchase a home: they want to stop renting. Improved accessibility (physical obstacles and barriers) and investment opportunity were also noted as top motivators across all groups. Changes to mortgage regulations and concerns about possible future interest rate increases were not among the top motivators.
• Over four-in-ten First-Time Buyers and Previous Owners say they would delay their home purchase if they were not able to find their ideal home, with a fairly similar proportion saying they would be willing to compromise on the size of the home and location.
• The majority of future home buyers intend to obtain a mortgage to finance their home purchase, with First-Time Buyers showing higher incidence compared to Previous Owners and Current Owners.
• Across all future home buyers groups, more than six-in-ten say they are likely to have a financial buffer in case their expenses change in the future. Furthermore, the majority of future home buyers, especially Current Owners, agree that they feel confident they have the necessary tools and information to manage their mortgage and debt load.
• Among all groups, the two most common actions completed one to two years prior to the purchase of a home were saving for a down payment and determining what type of home to buy. On the other hand, in the last three months before purchasing, about two-in ten of prospective buyers pre-qualify for a mortgage.
• About one-in-four prospective home buyers stated that they would be very likely to consider delaying their purchase in the event of an increase in interest rates.

Vancouver the main driver of the Composite in December says Teranet and National Bank of Canada
Without Vancouver, the Composite index would have declined for a fourth month in a row. The strength of Vancouver’s index is consistent with continued tight home resale market conditions. Toronto’s index declined for a fifth consecutive month, but the unsmoothed index (see note on methodology on next page) rose for a second month in a row (middle chart). Unless the unsmoothed index relapses in January, the sequence of declines in the smoothed index should then be interrupted. However this improvement is likely to prove temporary, as it might have resulted from buyers rushing to avoid the new bylaws on qualification for an uninsured mortgage (implemented in January 2018). This view is supported by the increase in Toronto home sales in November and December compared to previous months (bottom chart). Therefore, a resumption of the downward price trend early this year cannot be excluded.
Please click on the link below to access the full report:
201712 TNB monthly commentary

The Bank of Canada today increased its target for the overnight rate to 1 1/4 per cent. The Bank Rate is correspondingly 1 1/2 per cent and the deposit rate is 1 per cent. Recent data have been strong, inflation is close to target, and the economy is operating roughly at capacity. However, uncertainty surrounding the future of the North American Free Trade Agreement (NAFTA) is clouding the economic outlook.
The global economy continues to strengthen, with growth expected to average 3 1/2 per cent over the projection horizon. Growth in advanced economies is projected to be stronger than in the Bank’s October Monetary Policy Report(MPR). In particular, there are signs of increasing momentum in the US economy, which will be boosted further by recent tax changes. Global commodity prices are higher, although the benefits to Canada are being diluted by wider spreads between benchmark world and Canadian oil prices.
In Canada, real GDP growth is expected to slow to 2.2 per cent in 2018 and 1.6 per cent in 2019, following an estimated 3.0 per cent in 2017. Growth is expected to remain above potential through the first quarter of 2018 and then slow to a rate close to potential for the rest of the projection horizon.

According to the Royal LePage House Price Survey, Canada’s residential real estate market saw strong, but slowing year-over-year price growth in the fourth quarter of 2017. While year-over-year aggregate appreciation remained high in the Greater Toronto Area (GTA) and Greater Vancouver, two-storey and bungalow home values softened in the GTA, slightly declining on a quarter-over-quarter basis. Meanwhile, in both Greater Vancouver and the GTA, condominium prices continued to outpace all other property types, primarily due to growing affordability constraints within these markets.
The Royal LePage National House Price Composite, compiled from proprietary property data in 53 of the nation’s largest real estate markets, showed that the price of a home in Canada increased 10.8 per cent year-over-year to $626,042 in the fourth quarter of 2017. When broken out by housing type, the median price of a two-storey home rose 11.1 per cent year-over-year to $741,924, and the median price of a bungalow climbed 7.1 per cent to $522,963.
During the same period, the median price of a condominium appreciated faster than any other housing type studied, rising 14.3 per cent to $420,823 on a year-over-year basis. This trend was predominantly driven by the significant price gains witnessed in many of the country’s largest condominium markets. In the GTA, the median price of a condominium increased 19.5 per cent year-over-year to $476,421, while in the City of Toronto, the segment saw a similar gain of 19.6 per cent year-over-year to $515,578. In Greater Vancouver, condominiums also followed a similar price trajectory during the quarter, rising 20.2 per cent to $651,885, while the median price of a condominium unit in the City of Vancouver rose 18.7 per cent to $775,806. Many suburban markets across the GTA and Lower Mainland of British Columbia posted strong year-over-year condominium price gains of 20 per cent or more as well, with the segment appreciating at a faster rate than detached homes, which had previously led the charge.
“To prospective homeowners in our largest cities, condominiums represent the last bastion of affordability,” said Phil Soper, president and CEO, Royal LePage. “This is especially true for first-time buyers whose purchasing power has been reduced by tightening mortgage regulations.” Click here for more.
https://www.royallepage.ca/en/realestate/news/fourth-quarter-housing-market-trends-seal-2017-as-the-year-of-the-condo/