Toronto Mortgage Rates

How Mortgages Work
Any type of mortgage consists of two parts – the principal, which is the amount borrowed and the interest, which is the amount charged for the money borrowed and is calculated based on the principal amount.

For every mortgage you pay, the amount is first applied to the interest and the rest is used towards the principal. In the first years, most of the payments will pay off the interest and only a small amount goes to the principal. As you keep paying, the mortgage balance decreases over time and more of your payment goes towards paying off the principal amount. The goal, therefore, is to pay off the principal amount as fast as possible so that you reduce interest payments and save money in the long run.

Factors that May Affect Mortgage Interest Rates

Banks and lenders have very specific interest rates. These rates are influenced by many different factors, such as:

The type of bank or mortgage lender you deal with
How much your credit score is and your overall credit history
How much is your annual income and total net worth?
What type of property is being mortgaged?
How fast do you need a mortgage?
How long will you pay off the mortgage loan?
How long is your mortgage term?
Types of Mortgages
There are thousands of mortgage products in the market, but most lenders will offer these common types of mortgages to first time home buyers:

Conventional / Low Ratio Mortgages

A conventional mortgage loan amounts to no more than 80% of the appraised value or purchase price of the property, whichever is less. This means the borrower is required to provide down payment that is equal to 20% or more of the property’s value or purchase price, and is not required to pay for mortgage protection insurance.

High Ratio Mortgages

A high-ratio mortgage usually amounts to more than 80% of the appraised value or purchase price of the property. The borrower contributes a down payment of less than 20% of the value/purchase price, and is required to pay for mortgage protection insurance through any of the three mortgage insurance companies in Canada, which are Canada Mortgage and Housing Corporation (CMHC), Genworth Financial or Canada Guarantee.

Open Mortgages

An open mortgage offers you the flexibility to pay either in full or partial amounts toward your mortgage at any time throughout the term, without paying any penalty charge. The interest rates are typically higher than on a close mortgage loan, but most lenders will allow you to convert to a close mortgage with lower rates at any time. So if you’re planning to sell your home in the future or you are expecting a large sum of money that you can apply towards the loan, this type of mortgage is a good option.

Closed Mortgage

A closed mortgage requires you to pay a set amount at set times. If you want the assurance that your housing payments are going to be exactly the same at any given time, then this is a good choice for you. Keep in mind, though, that this type of mortgage is not flexible, so if you want to pay more or decide to pay out the amount in full, or refinance or renegotiate your loan before the end of the term, you will have to pay for any prepayment penalties that are stated on the terms.

Fixed Rate Mortgages

In this type of mortgages, the interest rate is calculated, agreed on and locked in for the term of the mortgage. This means your interest rate will remain the same throughout the entire term of your loan regardless of market fluctuations. Lenders will often allow prepayment options that offer quicker repayment of the mortgage and for partial or full repayment of the mortgage.

Variable Rate Mortgages (VRM) / Adjustable Rate Mortgages (ARM)

The interest rate in this loan may be changed from time to time during the term of the mortgage, depending on market conditions. This can mean changes to the interest rate on your mortgage every month. The mortgage is set up based on current interest rates and will be reviewed at specified periods. Normally, monthly payments will not be affected. The total you pay every month will remain the same, however the amount that goes towards the principal will vary as interest rates vary. So when interest rates go up, more will go towards paying off the interest and less on the principal amount. On the other hand, when interest rates go down, less will be applied to the interest and more towards the principal.

Hybrid Mortgages or 50/50 Mortgages

If you can’t decide between a fixed or variable mortgage, a hybrid allows you to get the best of both worlds. It’s an option that allows you to split your mortgage into two different rates, 50% at fixed rate and 50% at variable rate. This way you get the security of fixed repayments while still protecting yourself if rates climb.

If you’re considering buying a home or other type of property, it’s very important that you do some research and get all the information you need to help you understand all the options available to you. Clearly, the best choice is to go for a mortgage type that will fit well within your budget. If you can afford to make your mortgage payments without fail, then the best possible chance you have of owning your dream home.

We specialize in commercial mortgages and industrial mortgages in Toronto and anywhere in Southern Ontario.

Whether your looking to buy your first warehouse or retail outlet or build from the ground up, we will help you navigate through the process to get the financing that is right for your business.

At Toronto Mortgage Rates, we have access to major lenders as well as private lenders and other lenders that will only work directly with mortgage specialists.

In a commercial mortgage, the borrower most often is a business or company versus an individual. The company can be incorporated or unincorporated. The borrower in this case may be buying anyone of the following types of commercial mortgages from the lender:

Industrial Mortgage– This could be a warehouse, factory or similar.
Commercial Plaza Mortgage– Any type of retail or storefront.
Office Mortgage– Any type of office building or unit.
Multi-Residential Mortgage– Buying a building that houses multi-families or tenants as an investment property.
Construction Mortgage– Financing the costs to build or renovate an industrial or multi-res building.
The credit application process is more complicated with this type of mortgage as company financials are involved. As there is more risk, mortgage rates are usually higher than residential lending rates. You should also factor in that commercial mortgages take longer to process.

Lending institutions do not generally post commercial rates therefore it is difficult to compare one lender to another. With an independent mortgage broker working on your behalf, we have the expertise and relationships to determine where we can get the best rate and terms for your business.

Talk to us first. Call us for a no cost and no obligation call and pick our brain on the best course of action to get you the commercial mortgage funding you require.

SELECTING THE RIGHT MORTGAGE – How Do You Know Which Mortgage Is Right For You?
Knowing what you need is an important first step towards figuring out what the right mortgage is for you. Assess your needs based on these questions:

What kind of property are you buying?
Selecting the right property can be a great financial investment in the long-term. You can buy a house or condo using a combination of savings and mortgage financing to build a lot of equity and then rent out in future or sell and buy another home. You can also buy a house with suite income and use the rent to pay off your mortgage. If you buy a home that needs some renovation, a purchase plus improvement mortgage will allow you to pay for improvements and include all the costs in one mortgage. No matter what type of housing you choose, you must have a clear idea of how much you can afford for housing payment, including associated fees and property taxes.

How much down payment can you put on the property?
The amount of your mortgage loan equals the maximum home price minus the amount of your down payment. The larger the amount of your down payment, the smaller your mortgage loan, which will mean thousands of dollars of savings in interest charges. Pay as much as you can towards your down payment. If you pay less than 20% down payment, your home loan will be considered a high-ratio mortgage and you will be required to pay mortgage loan insurance.

How long do you plan to stay in this home?
If you plan to live in your home for 5 years or less, then you may want to keep options open for moving home. A portable mortgage may be a great flexible feature that may allow you to transfer your current mortgage to a new property. If you plan to settle in for the long haul, then portability is not an issue and you may want to consider a longer term fixed rate mortgage or a combination of fixed and variable terms.

How flexible are you in paying off your mortgage debt?
Is an open mortgage a better option for you or are you best suited for a close mortgage? Both definitely don’t give the option to pay your mortgage when you want to, but the difference between the two is the amount of flexibility they offer you in making prepayments, which can be making extra payments on the principal or paying off the full mortgage amount completely. These prepayments allow you to pay down your mortgage faster, saving you thousands of dollars in interest charges. An open mortgage can give you greater flexibility to make prepayments without any sort of restrictions or penalties. On the other hand, a close mortgage will offer lesser flexibility in that they can offer an option to make prepayments but only up to a certain amount and may include a prepayment charge which can amount to thousands of dollars.

What’s the best rate you can afford?
Is a fixed rate best or will a variable mortgage be a better option for the long term? When selecting an appropriate mortgage, it generally comes down to interest rates. Fixed and variable mortgages refer to how the interest rate is calculated and applied. If you want to play it safe, a fixed rate mortgage is the best choice. If you have reasons to want to take the risks involved with rates moving up and down, then you may find variable rate or adjustable-rate mortgages more advantageous to you.

What mortgage term is best?
Your mortgage payments and the amount of interest you pay will be determined to some extent by the term of your mortgage. If you want to own your home sooner, then you’ll want a short-term mortgage to pay off your mortgage the earliest time possible. A long-term mortgage may be a good choice if you do not expect to make any changes to your mortgage for more than a few years and you can lock in current interest rate for a longer period. Some lenders offer convertible mortgages, which lets you start out with a short term and then extend to a longer term with appropriate interest rates.

Keep in mind that the type of mortgage that offers the lowest rate may not necessarily be the best fit for your situation. Take the time to assess your needs and match them to the best possible option that offers a complete package of terms, conditions, rates and fees that fit your specific short- and long-term financial goals.

A debt consolidation mortgage is a type of mortgage refinance that allows you to use valuable equity that you have in your home to consolidate all of your high-interest debts into one low-rate mortgage loan. In essence, the process allows you to merge all types of debt, including mortgages, credit card debts, credit lines, car loans, student loans, tax arrears, etc. into one loan that is backed by the equity in your property and is payable in easy and manageable terms.

There are three ways you can use your home to consolidate your debt:

Refinancing

You could refinance your mortgage into a new loan that offers better terms and use the additional cash to pay off other debts. Through a refinance you will have to end your mortgage term early and consolidate your mortgage and other debts into one loan for up to 80% of your home’s value (Loan-to-Value ratio, LTV). Ending the mortgage term early means that you are breaking the terms of the contract, so you will be charged penalty fees. Charges will vary depending on the mortgage amount and terms, it can either amount to three months’ interest if it is a variable mortgage or it can add up to a hefty interest rate differential penalty with a fixed mortgage.

Home Equity Line of Credit (HELOC)

A HELOC is a line of credit that is backed by your home which you can access as needed until you reach your credit limit. A maximum loan balance is first established which is set up to 80% of your home’s value, minus any outstanding mortgage balance that the home still has. Once a credit limit is set, you can withdraw as much or as little on the line of credit at your discretion. All HELOCs are considered variable rate mortgages. Rates are usually based on current prime rates. Minimum monthly payment is an interest-only payment based on the amount you have withdrawn, so you are not required to pay a portion of the principal amount each month. There can be hefty legal fees associated with adding a HELOC on top of your first mortgage, but in some cases this can be a better option than incurring costly refinancing penalties.

Second mortgage

A second mortgage is another debt consolidation option that allows you to use the equity in your home to borrow money up to more than 80% of its value. This type of mortgage loan is considered a subordinate mortgage to the original mortgage, so the loan amount is usually lower and the interest rate is usually higher than the first mortgage. Although they come with higher interest rates, the rates are still significantly lower than those of credit cards and personal lines of credit.

Why consolidate debt?
Debt consolidation makes very good financial sense if you are in a situation where it is nearly impossible to make full monthly payments on time on your high interest debts such as credit cards, auto loans, or other consumer loans.

By consolidating your debt you are able to:

Lower your monthly payments – The extended amortization/repayment period that a debt consolidation mortgage may offer will allow you to pay less each month, leaving you with extra money left over which you can either use to make additional payments to your consolidated loan or add towards your monthly household budget.
Lower your interest rate – Because a debt consolidation mortgage is backed by the equity in your property, lenders can reduce the amount of interest you would have to pay. Additionally, mortgage loans in the finance world will always carry the lowest interest rates, as opposed to credit card charges for instance. This is because there is an asset to back up the loan. With your credit card debts, you pay about 15% interest charges, while the average on a mortgage loan is only about 3%. That’s an astonishing difference altogether.
Improve your credit score – With lower monthly payments and lower interest rates, you are more likely to make monthly payments on time and in full. This will allow you to rebuild your credit and eventually improve your credit score, which will give you better options to borrow money in the future.
If you’re a homeowner with equity available in your property, then a debt consolidation mortgage is another option to help you manage your debt and reorganize your finances.

Private mortgages are loans offered by individuals or private lending companies to people who do not qualify for a regular or traditional mortgage loan. These types of loans are not much different from regular mortgages except that funds come from a private source, which can be individual investors or groups of investors.

Private mortgage lenders have a higher risk tolerance for their borrowers, so documents to prove credit history and financial background are not given much weight when evaluating a potential loan. Lenders look mainly at asset values to assess a borrower’s ability to pay, and they treat mortgages as an investment opportunity in which they collect interest along the way.

Very simply, second mortgages are additional loans that are taken out against the same property. Let’s take for instance that your home has an existing mortgage on it, and you take out another loan on your home, the second loan is referred to as the second mortgage to the property.

In real estate, a property can have multiple loans or mortgages against it. A first mortgage can be followed by a second mortgage, then a third mortgage, and so on as necessary, although having more than two loans on the same property is very rare. The date on which the homeowner made the loan determines the order of the priority of the loan. This means that in case you default, your first mortgage has priority and it gets paid off first before any amount is put towards the second mortgage.

Types of Second Mortgages
The two main types of second mortgages are:

Home equity loans – You get a lump sum loan from a lender all at once, and repay it according to the agreed amount and time period. Interest for this type of loan are usually at fixed rates.
Home equity lines of credit –This works similar to a credit card, wherein you borrow the money as you need it up to a specified credit limit. Interests are typically set at adjustable rates.
How Much You Can Borrow
The amount that can be borrowed on a second mortgage is based on the equity in the home, which is equivalent to the current market value of the home or property less any remaining mortgage payments. Second mortgages and the subsequent loans on the same property have a higher risk of being paid out, depending on the equity. Hence, they often have a higher interest rate than first mortgages.

Loan Term
Terms for second mortgages are typically from as little as one year to up to 30 years. The shorter the loan term, the higher the monthly payment will be.

How to qualify for a second mortgage
A borrower must have over 20% of equity in the home or property and is able to pay the monthly payments on the second mortgage without exceeding current Total Debt Service Ratio (TDS), which should not be more than 40% of your gross monthly income.

Additional costs of second mortgages
Just as with a first mortgage, you will also need to pay closing costs with a second mortgage. Approximate costs can be from 3% to 6% of the amount of your second mortgage. Some of these additional costs are:

Home appraisal fee
Legal fees
Title search
Title insurance
In some cases, the steep fees associated with securing a second mortgage may not be worth the actual loan. You will have to calculate carefully the loan amount, loan term and all additional costs involved to see if the principal amount can cover more than enough after interests and additional costs.

Why get a second mortgage
Many Canadians need to get a second mortgage to help achieve other financial goals that require big expenditures. Some ways to put a second mortgage to good use:

To consolidate multiple debts or a high interest debt into one low interest rate monthly payment.
Can be used towards home improvements and renovations.
To purchase additional homes or property
To finance a small business
To help pay for college or university education
As financial aid for emergency expenses
To avoid paying Private Mortgage Insurance (PMI) on their first mortgage
To create a home equity line of credit (HELOC)

It’s generally not a good idea to use second mortgages for trivial or inconsequential purposes such as to fund a vacation or to buy new clothes, because you are risking your home in the process.

Advantages of a Second Mortgage
You can get a large sum of money because the loan is tied to your home’s equity. Up to 90% of home value can be used to arrange a second mortgage.
Interest rates are usually much lower than other forms of financing, such as using a credit card or getting a personal loan. It would be more financially sensible, for instance, to pay 6% or 7% for a second mortgage as against 20% on a credit card.
Interest paid on second mortgage loans may be tax deductible.
Where to Get a Second Mortgage
Second mortgages may be obtained from any lender. If you have a first mortgage, you are not obligated to get your second mortgage from the same lender. The best thing is to get several quotes from different lenders so you can compare interest rates and total fees.

The very first step in obtaining a mortgage is to find out how much money you can borrow. It’s important that you know how much you can afford even before you begin looking for a house to help you stay on track and not get in over your head.

Are You Ready Financially?
Before going to any lender, take the initiative of evaluating your own financial situation first. You would be in the best position to determine how much debt you can take on. Take into account the following factors when evaluating your situation:

Total household income
Monthly expenses (car payments, bills, credit card payments)
Estimated monthly housing costs (mortgage payments, property taxes, property insurance, condominium fees, school taxes, utilities and maintenance costs)
Closing costs and other upfront costs (Legal/ notary fees, mortgage default insurance premium, appraisal fee, home inspection fee, title insurance) – Estimate closing costs to be about 1.5% to 4% of the price of your house.
Your down payment – If you pay down payment that is less than 20% you’ll be required to purchase mortgage default insurance which is added costs.
Cash reserves that can be put towards the house
Don’t forget to also factor in ‘planned expenses,’ which are any costs or payments that you know are on the horizon. For instance, you may be planning to have a baby soon so you will have to consider expenses related to having a baby as well as any adjustment that a maternity or paternity leave will have on your income.

After calculating the amount you are able to pay, think things through:

Are you comfortable with the amount you will be paying for years to come?
Can you afford to make payments and still be able to live the lifestyle that you want?
Can you afford payments and still be able to save up on other major concerns, such as college education, retirement, etc.
Will everyone be willing to change current spending habits, if necessary, to prioritize loan payments?
The process will help to mentally prepare you and your family for the huge financial responsibility ahead.

How Lenders Determine Your Affordability
Lending institutions have varying guidelines for approving loans that depend on the terms of each loan, although they follow standards set by Canadian government agencies. In general, loans are approved based on your ability to repay the loan and the value of the property. To look at this mathematically, lenders calculate your “debt service ratio.”

Lenders use two different debt service ratio calculations:

Gross Debt Service Ratio or GDSR – This is calculated based on your estimated housing costs (mortgage payments, taxes, heating costs, and condominium fees, if applicable) and gross monthly income. As a general rule, your GDS amount should not be more than 32% of your gross monthly income.
Total Debt Service Ratio or TDSR – This includes all your estimated housing costs plus all your current debt payments (car loans or leases, credit card payments, lines of credit payments, etc.). This number indicates your entire monthly debt load and should not be more than 40% of your gross monthly income.
Calculating your Mortgage
Mortgages are not simple to calculate at all. It involves a lot of compounding that’s worked out semi-annually according to the law, with the exception of variable rate mortgages. Working out the formulas can really leave you feeling nauseated. However, you can do this quite easily using a Mortgage Calculator which allows you to compare mortgages using different interest rates, principal amounts, amortization terms, etc.

Your mortgage specialist should be able to guide you through the entire mortgage process. He can help you understand terms and related costs, as well as calculate exactly how much you can afford to borrow, and recommend the best type that is right for your budget to keep your payments low and manageable.

A mortgage specialist in Toronto is a licensed professional who has contact with multiple lenders who offer different mortgage rates. His job is to help buyers who need a mortgage to finance their purchase of a home or other properties to find the best rate, terms and conditions that is suitable for their particular needs.

Using a mortgage specialist can be very advantageous to you as a buyer:

1 – They can present you with more choices

Mortgage specialists typically have a list of lenders that they regularly use or have access to. Having a variety of lenders means that you have multiple home loan options to compare with that offer the best rates, the lowest fees and the most competent services. Some will also have exclusive access to some lenders that buyers won’t be able to contact directly and they will have to go through a specialist who acts as the link between these exclusive lenders.

2 – They can inform you of better rates

Mortgage specialists work with various lending partners so they can negotiate a better interest rate for you or ask for lower application fees from the lender in some cases. They can also give access to exclusive deals and special rates that are not available on the retail market. They may also be given wholesale interest rates by lenders because of the high volume of business they provide, and they can in turn pass these volume discounts on to you. On the whole, interest rates through a mortgage specialist can be lower than bank interest rates.

3 – They help individuals with non-conforming lending situations to secure a loan

Mortgage specialists are particularly useful for people with problematic credit ratings such as a bankruptcy or consumer proposal, those who are self-employed or have income that is unverifiable, those who need funding for different property types, or those who have been turned down by the banks for whatever reason. They are well-connected with alternative lenders offering specialty products, such as refinancing a consumer proposal or stopping a power of sale for those who are behind in their mortgage payments.

4 – They help you save time

Researching for mortgage products and comparing rates and terms on your own can be time consuming and complicated. You may not understand many of the financial jargon or calculate rates and terms correctly. A mortgage specialist can help narrow down your choices and recommend mortgage products that are the best fit for your budget. They can take one look at your application and credit report and immediately identify the most appropriate lender for your specific circumstances. They can also help speed up the application process by completing the required paperwork and interacting directly with lenders.

5 – They can save you money on fees

A mortgage can include different types of fees, including origination fees, application fees, and appraisal fees. A mortgage specialist will be able to negotiate with lenders and get them to waive some or all of the associated fees which can save you several hundreds or thousands of dollars.

6 – They provide ongoing support

Mortgage specialists can assist you during the entire course of your mortgage application, from pre-approval, home appraisal to closing. Some will even make themselves available to you even after the mortgage closes to provide advice and recommend opportunities throughout the term of your loan.

An increasing number of home buyers have used a mortgage specialist in Toronto and the GTA in recent years for advice and consultation during the home buying process. If you are a first time home buyer, you’ll definitely need these professionals to help you negotiate the complicated world of mortgages and make the process of finding the best mortgage easy and hassle-free for you.

If you’re buying a home for the first time, you may not be entirely clear on the difference between fixed rate and variable rate mortgages. Both have benefits and the choice that’s right for you will depend on your situation and your personal preferences. Here’s what you need to know.

The benefits of a fixed rate
With a fixed rate mortgage, your interest rate and your payments are locked in for the length of term that you choose. Even if interest rates rise, your mortgage rate won’t change and your payment will stay the same. For many homeowners, this protection against rising rates is important for their peace of mind.

The benefits of a variable rate
With a variable rate, your mortgage rate fluctuates along with the bank’s prime rate. In most cases, your payment won’t change, but what will change is the amount of each payment that goes towards principal rather than interest. when rates go up, more of each payment will be used to pay interest, so you,ll be paying less principal.

So why would you want to go variable? Historically, variable mortgage rates have almost always been lower than comparable fixed rates. In addition, you can switch to fixed rate at any time, without charge.

Factors to consider
A number of factors may influence your decision between fixed and variable. currently, interest rates are near historic lows but many industry experts anticipate that they may rise around the middle of 2011. As a result, this may be an opportunity to lock in a fixed rate at the lowest level for some time.

On the other hand, if you choose a variable rate, you’ll get a lower rate now and you,ll have the flexibility to lock in to a fixed rate if you think rates might start to rise.

For more valuable tips on financing your first home, consider getting the BMO First Home Essentials kit. lt comes with valuable offers and has a wealth of information, tools, and resources to help you enter the market with confidence. you can order it online at www.bmo.com/firsthome.

We handle 1st & 2nd mortgages, Residential & Commercial, Land, Construction, Self Employed, Credit Issues, Private Money Available. Ask about Investing in Mortgages

You worked hard to get your business off the ground and finally you’re making money. Congratulations, it took years in the making. One of the benefits of being self employed — you have legitimate tax write offs. No-one is suggesting you would ever want to avoid paying taxes altogether, but it’s a perfectly legitimate goal to minimize the taxes you pay — and if your accountant is any good, s/he will help you find legitimate tax savings strategies.

Now that you’ve written down your income, there’s only one problem — when you go to the bank to apply for a mortgage, they tell you you don’t make enough money!

When it comes to lending money, banks are very strict, and if you don’t have a permanent, full time job with a steady paycheck, you could be in for a rough ride at the bank.

I will never forget the time a self employed client of mine was repeatedly assured by his bank that he would not have a problem qualifying for a mortgage. After an exhaustive search for just the right property, and four days into a five day financing condition, his bank finally gave him the bad news. They could not help him. Although he had been earning a steady paycheck for a time, he was not a permanent employee, and he did not qualify for bank financing. He was shocked to learn he was rejected by the bank at the eleventh hour. Fortunately, we were able to get the applicant approved in one day and he was delighted.

An experienced mortgage broker will know where to take your loan application to, to find you the best available mortgage given in the shortest period of time. We were able to get the client’s approved in one day.

What Do Self Employed People Need to Qualify for a Mortgage?

Income:

If you are incorporated, we need two years financial statements
Two years tax returns and 2 years Notice of Assessments
Twelve months bank statements
If you cannot prove income at all, it may still be possible to arrange a mortgage, depending on your net worth/equity in the property/down payment.
Credit:
It helps you have good credit, but it’s not essential to borrowing if you a substantial down payment and/or equity in a property. To have good credit, you should have at least two or three trade lines for at least two years. A trade line is a credit card, a line of credit or an installment loan where you have a fixed monthly payment, like a car loan, for example.

Down Payment/ Equity
When purchasing a property, a 20-25% down payment is considered substantial. With less than 20% down, you should have provable income and great credit, otherwise the borrowing costs will be very high.

If you are self-employed, you know the challenges in getting approved for a mortgage through most of the major banks. There are strict parameters the banks use to determine if you qualify for a mortgage. Unfortunately, many self-employed individuals do not qualify for mortgages as their earned income falls outside of the banks guidelines.
Although being self-employed and running your own business has many perks, getting approved for a loan or a mortgage is not one of them. The application process can be extremely stressful. I know that many entrepreneurs stress over going to their bank even for a mortgage renewal. What if they look at my finances and determine based on the new numbers they do not want to renew my mortgage? Even worse, what if they decide to lower my line of credit or credit cards as they feel I am more at risk.

When the renewal notice comes through from the bank, many self-employed individuals just accept the offered rate as they do not want to provide their financials. All the while knowing that they are likely paying a premium rate to stick with the status quo. Many are happy just to have the mortgage renewed.

I suggest that before you mortgage is due, call one of our mortgage specialists. They can give you the advice you need and get quotes from many lenders and likely get you a better rate than you are currently paying. We also have access to many lenders that understand the challenges of entrepreneurs and that not everything is going to show on a T4 like most banks would prefer. Maybe your reinvesting earnings into your company or taking money out as a dividend or similar.

In a worst case scenario, if the rate we offer is similar to your bank offer, at least you know you’re paying a competitive rate at your current banking institution. You owe it to yourself to check out all your options before you commit to a mortgage that may not be the best rate for you.

If your self-employed, call us and let us find you the best mortgage possible.

Buying a house is one of the biggest decisions that you will ever make in your life, which is why taking the time to do it right is imperative. It’s easy to get caught up in the excitement of the buying process, which often means settling on the first mortgage rate that your bank offers you. This is a mistake that many people make, as they simply don’t take the time to go shopping for a better rate. It can be a time-consuming hassle to do alone, but one that could potentially save you thousands of dollars once you sign on the dotted line. This is where a mortgage broker can quickly become your biggest ally.

Simply put, a mortgage broker serves as the middleman in your dealings with potential mortgage lenders. Rather than you having to call each lender individually to get their rates, the broker will do it all for you. If you live in a major metropolitan city like Toronto, then you are looking at a ton of different potential lender options. Brokers also have access to extra options from private investors that banks won’t offer. Going to them all individually could prove to be a Herculean task, but it’s something that mortgage brokers do for a relatively small fee. That fee will more than pay for itself if they can land you a rate that is a well below what your bank is offering.

Getting the best rate is not the only reason to use a mortgage broker, though, as there are some other benefits worth considering. If you were to do the rate shopping yourself, it’s possible that your credit score could take a hit with every application that you submit. Those rules do not apply when using a broker. Your credit score will not be affected, and the broker will do all the time-consuming legwork, using your current financial situation to shop for the best deal possible.

If you have ever tried to get a loan through your bank, you are probably aware that getting in touch with your loan officer can be like jumping through hoops. These people work for the bank, not for you, which is most certainly not the case with a broker. They only get paid if they find you a good deal, so you can bet that they are going to be on call whenever you need them. They are a lot like real estate agents in this way, so expect a similar sort of relationship.

Many mortgage brokers will have relationships in place with specific lenders, and that could well be good news for you. In order to forge that bond and maintain the partnership, some lenders will be willing to waive certain fees if the broker brings them a reliable mortgage candidate. Not only do you get a great rate, you also save some money even before you sign a single document. The ability to save money is there, and why would you not want to do that when buying a big ticket item like a house?

We specialize in commercial mortgages and industrial mortgages in Toronto and anywhere in Southern Ontario.

Whether your looking to buy your first warehouse or retail outlet or build from the ground up, we will help you navigate through the process to get the financing that is right for your business.

At Toronto Mortgage Rates, we have access to major lenders as well as private lenders and other lenders that will only work directly with mortgage specialists.

In a commercial mortgage, the borrower most often is a business or company versus an individual. The company can be incorporated or unincorporated. The borrower in this case may be buying anyone of the following types of commercial mortgages from the lender:

Industrial Mortgage– This could be a warehouse, factory or similar.
Commercial Plaza Mortgage– Any type of retail or storefront.
Office Mortgage– Any type of office building or unit.
Multi-Residential Mortgage– Buying a building that houses multi-families or tenants as an investment property.
Construction Mortgage– Financing the costs to build or renovate an industrial or multi-res building.

The credit application process is more complicated with this type of mortgage as company financials are involved. As there is more risk, mortgage rates are usually higher than residential lending rates. You should also factor in that commercial mortgages take longer to process.

Lending institutions do not generally post commercial rates therefore it is difficult to compare one lender to another. With an independent mortgage broker working on your behalf, we have the expertise and relationships to determine where we can get the best rate and terms for your business.

Talk to us first. Call us for a no cost and no obligation call and pick our brain on the best course of action to get you the commercial mortgage funding you require.

Our Current Best Rates
A low mortgage rate helps you manage your monthly payments and pay off your property faster. In order to find the best mortgage rate, however, you need to work with an experienced broker.

Richmond Lending Group offers:

Competitive fixed and variable mortgage rates.
Special mortgage interest rates for self-employed home buyers.
Lowest mortgage rates from over 50 of Toronto’s most trusted lenders.

CURRENT VARIABLE MORTGAGE RATE IS 2.25%
CURRENT PRIME RATE IS 2.70%
Some conditions may apply. Rates may vary from Province to Province. Rates subject to change without notice. *O.A.C. E.& O.E.

Contact me today to get the best mortgage rate, and cut your mortgage payments by 50-75%!

If we are to look at the current housing rental market in Canada, a real estate reporter of The Globe and Mail, Tamsin McMahon published a report in December 2015 that a lot of Canadian condominium buildings are being purchased by foreign investors.

According to McMahon, based on the figures released by Canada Mortgage and Housing Corporation, six cities including Vancouver, Winnipeg and Toronto had shown a substantial increase in unit ownership by foreign investors.

What this tells us is that investors are buying multi-residential properties and are counting on the property to generate income for them.

Having said this, if you are planning to purchase an investment property such as a condominium building, you are to check a couple of things including your budget and your financial plan. How are you going to put this purchase plan into reality?

The first step is to find a reputable mortgage specialist who will help you in the assessment of the financial aspects of your investment purchase plan. It is vital that you choose one with unquestionable experience and expertise in the field as not all banks or financial institutions are easy to deal with especially on construction loans. You will require someone who can provide you with essential information that will make it easier for lenders to approve your application.

If your target investment property is in Toronto, your best bet would be a mortgage consultant specializing in Toronto properties, the advantage being, your consultant knows the area so well that they – your mortgage consultant, would be able to give you good advice on not just the financial aspects but also on housing trends and real estate market statistics.

Your mortgage consultant is likely to tell you that your best financing option when buying an investment property is the Multi-Residential Mortgage. The mortgage specialist will start by assessing the required funding for the investment property against your financial profile. This would help them match your profile and project funding requirements with lenders that cater to multi-residential mortgages. This way, no time is wasted in negotiating with various lenders that only approve certain types of mortgages.

Getting approved for an optimal funding option for your investment property will require the following considerations from your end:

Your investment property is expected to generate an income equivalent to approximately 30% for every dollar of debt
You should be able to show that your financial profile equates to 25% of the funding availed
Income generated by the investment property should be enough to cover mortgage payments and the property’s operating expenses
With proper advice from your mortgage consultant, you are bound to get approved for a multi-residential mortgage at a competitive and viable rate, giving you access to funds that will also allow you to do improvements on the property to increase its value and income.

You need to remember that the key to obtaining a viable funding for your investment property is working with someone who is experienced and has built long years of relationships with banks, financial institutions or lenders in the area where your property is located. Their local presence and experience will prove valuable to you throughout the financing process.

This is the right way to do it, if you’re planning to snap up an investment property in Canada.

Toronto Mortgage Rates realizes that Canadian residential mortgages in our current sellers market are a hot topic right now. As much as we love providing the financing to put people into the home of their dreams, Toronto Mortgage Rates also has a passion for Canadian entrepreneurs. Through our access to major and private lenders, we will help you get the financing that is right for your business.

Wondering if these services fit your needs? We offer the following types of commercial mortgages to get you a step closer to achieving your dream:

Industrial Mortgage – This could be a warehouse, factory, or similar.
Commercial Plaza Mortgage– Any time of retail or storefront.
Office Mortgage– Any type of office building or unit.
Multi-Residential Mortgage– Buying a building that houses multi-families or tenants as an investment property.
Construction Mortgage– Financing the costs to build or renovate an industrial or multi-residential buildings.
So whether you’re an established business looking for the appropriate financing to expand, or are starting from the ground up, Toronto Mortgage Rates has you covered.

Unlike residential mortgages, commercial mortgage rates generally aren’t posted at large lending institutions. Due to the lack of transparency and comparability between lenders for commercial mortgages, a mortgage broker is more important than ever during this process. As your independent mortgage broker, we have the expertise and relationships to determine where we can get the best rate and terms for your business. Contact us today to start your journey.

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Ask for a Pre-approved Mortgage!

Important Benefits

Know what amount to plan for in your budget
Know what amount you need for your downpayment
Be in a better negotiating position
Be protected from interest rate increases if you choose a fixed rate
Speeds up the final approval process

For more information, please contact us.

If you fall into one of the following scenarios, you may be able to take advantage of the Home Buyer’s Plan and benefit from significant tax breaks:

You do not have enough cash for a down payment but have money in a Registered Retirement Savings plan (RSp).
You have enough money for a down payment and have unused RSp contribution room.
In both cases you may be able to take advantage of the Home Buyers’ Plan – a government program that lets you withdraw from your RSp savings (even if you don’t currently have any), towards the down payment on your first home, tax-free and without paying a penalty.

If you have been thinking about mortgage refinancing Toronto options,  but you can’t ascertain to yourself that you are indeed on the right track if you should take this action or not, then you will need a mortgage professional by your side to help affirm your decision. Regardless if it is beneficial to you or…

Is it really possible that given the right condition and resources needed, anyone can learn how to predict upcoming trends in mortgage rates Toronto?

There are a plethora of finance companies in Toronto and they all offer us a wide assortment of financial services, in an effort to fill up almost every financial concern we may have when it comes to acquiring and owning a home. However, you can’t afford to just have a haphazard or a half-thought of decision when it comes to financial products and services. It is important that prior to availing or enlisting the help and services of mortgage brokers Toronto Ontario, we must somehow have an understanding of how they work, be familiar with their intricacies and underlying implications so that we can determine exactly if any of them will really work out for our best interest. It is also very important that we know how these financing firms are taking charge and managing their money, as it may have a direct and indirect impact on the services they offer.

You may want to compare mortgage rates Toronto to those of other cities or provinces here in Canada, and by doing so you will have a good idea which among in those regions you will be able to get good value from your hard earned money. After all, you are not going to make a property acquisition project like buying a house of your own all the time, considering the fact that it involves a significant amount of money making it a major financial investment. For this reason, you need to make careful, calculated steps so you can veer yourself away from making wrong choices and instead arrive at a decision that you will not later on regret. With respect to the total property cost, this will help give you a good idea if proceeding with a planned property purchase would be a viable long-term decision to make, and wouldn’t compromise your other financial obligations, or if availing a mortgage arrangement would put you in a better position instead.

Buying a home is one of the biggest financial investments that anyone will have to make when they hit the property buying age which is 25-40 years, not just here in Canada, but anywhere you may be on the globe. However, not many of us are actually aware of the rudiments of the Toronto mortgage loan processing. Awareness and understanding of this phase are vital for us to know because it will be helpful to us and prepare us somehow to take on the responsibility entailed in property ownership, regardless if it is a commercial or residential type. And since there is a manifold of available mortgage options in the market today, a first time homebuyer will feel confused and challenged by which option he should take, most especially when they realized that they are faced with the prospect of decades-long commitment and thousands of dollars of hard-earned money is at stake which necessitates them to make wise and well-thought of decision. This is the only way they can ensure to get the value for their money.

If you are a first-time property buyer in Canada, your natural tendency is to look for and grab the cheap Toronto mortgage rates that will come your way. Often these happen to people who are in the habit of making haphazard decisions.

It will always work to your advantage if you will have a Toronto mortgage broker by your side if you have plans of buying yourself a house or refinancing your mortgage. It is because these professionals have relevant access to the big banks and many other similar financial institutions. Aside from that, they have connections to local brokers, too. The rule of thumb in finding the right and suitable mortgage program for your specific needs is to find first the right and experienced mortgage professional.