If you’ve got a mortgage – or plan to get one this year – you probably know that it’s more complicated than it used to be just a few short years ago. That said, I have many tips and strategies that can help you get the mortgage you need, tweak the one you have, or help you plan for renewal. Here are my top eight:

  1. To get the best deal, you need options. When you go to your bank, you’re talking to one lender. Their best deal might not be THE best deal. It’s also difficult to qualify at a bank if you are self-employed, have past credit issues or finding the stress test a challenge. Credit unions, alternative and private lenders are increasingly helping people get into new homes or refinance their mortgage.
  2. Best-rate quotes are often meaningless. Mortgage rule changes have thrown mortgage pricing up in the air. Your actual rate depends on a whole slate of factors, which is why you can only get an accurate rate quote after an in-depth assessment of your personal situation.
  3. The devil is in the details. People tend to focus on rate, but you can save thousands by making sure you get a mortgage that has fair penalties, allows you to prepay, and ensures you will also be treated fairly at renewal. Don’t end up paying exorbitant fees, or be forced to take a high rate at renewal.
  4. An insured mortgage might be a smart move. If your mortgage is “uninsured” and you want to switch to a new lender for a better rate at renewal, that lender will qualify you using a “stress test”, which may affect your ability to move your mortgage, and giving your lender no incentive to offer you the best rates. It’s possible that you can switch your mortgage to a lower-rate insurable mortgage that has more flexibility.
  5. A 30-year amortization can give you wiggle room on cash flow. A longer amortization (20% or more in equity required) allows you to minimize your mortgage payments and free up cash flow for uses like investing, business needs, post-secondary education, maternity leave, home maintenance, or other life situations. You can keep your payments at a shorter amortization and only use this flexibility if the need arises.
  6. Monitor your credit score. The best rates go to borrowers with the best credit scores. Lenders are also paying closer attention to any warning signals that clients may have trouble paying their mortgage. If your credit slips and your lender feels your risk has increased, you may be offered a higher rate at renewal.
  7. A rental suite can be a sweet mortgage helper. A home with a rental suite could help you buy a single-family home instead of a condo, get you into that neighbourhood you love, or help you offset mortgage payments in the house you’re in so you can become mortgage free sooner or have the freedom to channel money into other areas.
  8. Plug your biggest money leak. If debt is choking your cash flow and you have enough equity in your home, you may be able to move that debt to your lower-rate mortgage and save thousands. Using home equity to pay down debt is one of my specialties!

New year. New chance to make sure your mortgage strategy is working for you and helping you build wealth. Get in touch for a review of your situation.

RON LEFEBVRE, AMP
Mortgage Consultant
780.756.7457

Posted in Community

 

Learn more by visiting: https://www.theglobeandmail.com/business/article-a-real-estate-surprise-reits-deliver-stellar-returns-despite-rising/

 

Connect with me anytime to a chat!

Ron Lefebvre, AMP
Mortgage Consultant

780.756.7457

Posted in Uncategorized

Learn more by visiting: https://www.theglobeandmail.com/business/article-two-realty-firms-see-modest-growth-for-canadian-housing-prices-in-2019/

 

Connect with me anytime to a chat!

Ron Lefebvre, AMP
Mortgage Consultant

780.756.7457

Ron Lefebvre, AMP
Mortgage Consultant

780.756.7457

Your Home & Mortgage
Broker vs Banker

You want it all: the best available rate with exactly the right features you need to live comfortably with your mortgage and pay if off in record time. If you want the perfect mortgage, you need to shop around. And that’s my strength. I offer access to over 50 of Canada’s leading lenders, including major banks, credit unions, and national, regional and private lenders. I do the research for you, finding you the best mortgage across multiple lenders.

Your bank, as great as they are with your day-to-day banking, may not be the best choice for your mortgage because they represent just one available lender. Access to lender choice is one difference between getting a mortgage from a Bank vs a Broker, here are more:

YOUR MORTGAGE BROKER YOUR BANK
MORTGAGE RATES Mortgage brokerages negotiate discounted rates with lenders, and have access to rate promotions and specials. Rates are set by the Bank. If there’s a better deal in the marketplace, you’ll have to find it yourself.
OBJECTIVITY Your Mortgage Broker works for you, not any one lender. Mortgage specialists are there to build business for the Bank.
SOLUTIONS Brokers have access to mortgages for the self-employed and those with past credit issues. It is difficult to get a mortgage for certain client situations.
COST The winning lender pays your Broker for the services and solution provided. Mortgage specialists are paid and incented by the Bank.
ONGOING SERVICE Brokers offer ongoing advice after your mortgage closes i.e. how to pay off your mortgage faster, power down debt, finance renovations or invest in property. There have been many regulatory changes, so it’s important to have access to a mortgage expert. No proactive ongoing advice is typically provided. You will get an annual mortgage statement.
AT RENEWAL Your Broker will go to bat for you again to make sure you have the best deal possible. You may not be offered the best deal initially, requiring you to proactively contact the Bank to negotiate.

Getting a mortgage is a very significant financial event. That’s why you want someone who is highly specialized in the mortgage marketplace and focused solely on your needs. Get in touch for advice that is relevant to your situation.

30-year amortizations can be a smart financial strategy

If you have 20 per cent equity or more, you can choose a 30-year amortization mortgage. Homeowners with less than 20 per cent down are not eligible for an amortization over 25 years. A longer amortization allows you to minimize your mortgage payments and free up cash flow for uses like investing, business needs, post-secondary education, maternity leave, home maintenance, or other life situations. You can keep your payments at a shorter amortization and only use this flexibility if the need arises. Having a mortgage that gives you room to breathe may be worth the extra cost in interest, and I can help you determine if this is right for you.

RON LEFEBVRE, AMP
Mortgage Consultant
780.756.7457

 

Ron Lefebvre, AMP
Mortgage Consultant
780.756.7457
Economic Update
Prime rate stays steady

The Bank of Canada announced today that it is keeping the overnight rate unchanged. The Bank continues to believe that increases will be required to achieve their inflation target, but that the pace of increases depends on many factors, including the effect of higher interest rates on consumption and housing, global trade developments, the persistent oil price shock, and the evolution of business investment. The next rate-setting day is Wednesday, January 9th.

Get in touch if you have questions about your mortgage plan, or if you need a new mortgage, are renewing, or are looking to refinance for debt consolidation, renovations or other large expenditures. If you or anyone you know is cash poor but house rich, now may be the time to consider a reverse mortgage. A reverse mortgage allows access to home equity without any mortgage payments on those funds. Ownership is always maintained and the homeowner is never required to move or sell. It’s a brilliant way to help children or grandchildren with their downpayment, buy a second property, start a business, or complete renovations.

It’s so important to work with an experienced professional who knows the right questions to ask to assess your situation and provide the direction you need to achieve your goals for homeownership and wealth building. Good advice early saves time, money, and stress!

We regularly receive short-term rate promotions that are not posted online, which means our rates change frequently. Please contact us for these unpublished rate specials.

Terms Posted Rates Our Rates
6 MONTHS 3.34% 3.10%
1 YEAR 3.59% 3.19%
2 YEARS 3.74% 3.19%
3 YEARS 3.89% 3.39%
4 YEARS 3.94% 3.64%
5 YEARS 5.59% 3.59%
7 YEARS 5.80% 3.74%
10 YEARS 6.10% 4.04%

Insured mortgage rates, subject to change. Conventional and refinance rates may be higher.
Some rates may not be available in all provinces. Consult a local Invis professional for more information. OAC. E&EO

Prime Rate 3.95%
5 yr variable 2.85%

Crunch the numbers and explore different scenarios with our website calculators.

RON LEFEBVRE, AMP
Mortgage Consultant
780.756.7457

Invis Inc. 600 – 5770 Hurontario St., Mississauga, ON L5R 3G5

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