From: Joe Malek --
Dear Friend,
Are you searching the internet for mortgage refinancing tips or the best ways to refinance your existing mortgage?
Do you want to get the best rate for your situation and consolidate your credit card debt into one low monthly payment at the same time?
If you answered yes then use VERICO to achieve your goals…
The VERICO Network has grown to over 150 mortgage broker locations throughout Canada that employ over 1,000 mortgage agents who collectively originate in excess of seven billion in annualized mortgage loan volume.
At VERICO each member of the network values and continually supports the ongoing development of a winning culture that sets them apart from their competitors.
It's about professionalism, knowledge and ethics. It's about being experts in the field. Mortgage brokers are an important part of buying & owning a home.
Your VERICO mortgage broker is a knowledgeable advisor that can help you ensure you have the right mortgage at the best interest rate available.
Typically, you will not pay any fees when hiring a VERICO broker because VERICO charges lenders directly.
Over 40 Canadian Financial Institutions rely on VERICO mortgage brokers to help them manage the mortgage process and ensure that each customer is fully informed of their options.
VERICO Brokers have years of experience in the mortgage profession as either brokers or former bankers.
Whether you're buying a home, renewing your existing mortgage or thinking about taking out equity to renovate, invest, or consolidate debts - Trust the VERICO Experts.
Below you’ll find mortgage refinancing tips and industry secrets you should know about before you apply to refinance your mortgage.
Refinancing may be undertaken to reduce your mortgage interest rate by refinancing at a lower rate OR to shorten / extend your mortgage repayment time OR to pay off other loans and credit card debt OR to raise cash for your investments or for home improvements.
In essence, refinancing can alter your monthly payments either by changing the interest rate or by altering the term to maturity of the loan.
More favorable lending conditions may reduce your overall borrowing costs, and like in most cases, mortgage refinancing can be used to improve your overall cash flow.
Another use of refinancing is to reduce the risk associated with your existing mortgage.
Interest rates on variable mortgages shift up and down based on the movements in the prime rate.
By refinancing an adjustable or variable rate mortgage into a fixed rate mortgage, the risk of interest rates increasing dramatically is removed, thus ensuring a steady interest rate over time.
Mortgage refinancing can also assist in paying off high interest debt such as credit card debt.
As a general rule, refinancing home mortgages truly only works if the interest rates are lower than your current mortgage rate and/or if it saves you lots of money.
Check your credit score before you apply for your mortgage refinancing.
Your credit score is one of the most important factors mortgage lenders look at when approving you for a mortgage loan.
In today's lending market this is especially true because gone are the days of easy credit.
If you have a bad credit or very low credit score you may still be able to get a mortgage but be prepared to pay a higher interest rate.
The first thing a lender will want to do is to check your credit. If you have credit problems then why not correct them. Raise your credit score before you apply for a mortgage loan so you can get a mortgage with the interest rates you want.
If you have accounts at or over the limit then pay them down first and then wait at least 30 days for your creditor to update your credit file before you apply for a mortgage. This will have a positive impact on your credit score.
Today, you’ll need a credit score over 650 to qualify for mortgage refinancing over 90% of home value and up to 95% of home value. If your score is between 600 and 649 then you will be limited to 90% financing maximum.
Refinancing To 95% of Home Value
Previously, CMHC (Canada Mortgage Housing Corporation) would not insure the lenders mortgage if "the new money" was used for debt consolidation but in the spring of 2001 they finally made changes to this guideline and introduced CMHC Refinance Program.
Today, it is possible to refinance mortgage up to 95% home value (thanks to new programs) and use the new funds to pay off credit card balances, loans and existing mortgages.
This is good news for many homeowners, but unfortunately not all will qualify due to credit or debt service ratio restrictions.
Recently there were more enhancements and changes to refinance programs...
One of such improvements was the addition of mortgages for self-employed people without income verification.
Self-employed borrowers and commissioned sales people that cannot provide traditional income verification may now qualify for a high ratio mortgage to 90% of home value and enjoy discounted mortgage rates through selected lenders.
Insurers will usually determine your property value by comparing your home to their database of the most recent comparable sales in your area but sometimes home appraisal is required.
Mortgage default insurance premium is calculated on actual LTV % and your amortization length (LTV = Loan-to-Value).
If you keep your amortization unchanged then the insurer will charge insurance premium only on "the new money".
This is called a “top-up” premium.
If you change your amortization then mortgage insurance premium will be calculated on the total loan amount.
Longer amortization periods will provide you with lower monthly payments but extending your amortization beyond the traditional 25 years will result in 0.20% insurance premium surcharge for every 5 years.
Maximum amortization for insured high ratio mortgages is 35 years to 95% LTV and 40 years for uninsured mortgages to 80% LTV.
Mortgages for self-employed or commissioned people will have slightly higher insurance premium then mortgages with confirmed or proven income.
You will also have a penalty to break your current mortgage which is usually 3 months interest or interest differential penalty.
This penalty is paid from the new mortgage proceeds so normally you don’t need to come up with that cash up front.
CMHC mortgage default insurance is added on top of the basic loan and so your only other cost is legal fee which is deducted from loan proceeds.
Mortgage rates are at historic lows and if you have two mortgages and other credit card debt then this may be the perfect time for you to combine them into one payment.
You maybe able to refinance your mortgage to lower your interest rate, monthly payments or get cash out for debt consolidation, renovations or investments plus pay off your mortgage faster.
With lower mortgage rates, you could be saving thousands and possibly gain cash in hand by refinancing your existing mortgage right now!
What is mortgage refinancing?
Mortgage refinancing replaces your existing mortgage loan with a new mortgage at lower interest rate.
Refinancing can save you lots of money when market interest rates drop one or more percentage points below your present rate.
Mortgage refinancing can be used to reduce your interest rate, change the term and amortization of your loan or consolidate your other debt in order to improve your monthly cash flow.
Maybe you have been dreaming about a new pool or a hot tub, finished basement or purchasing another property.
Whatever your needs... tapping into your available home equity may be the best way to achieve your goals faster.
Interest rates are very low so don't hesitate to take advantage of my services to refinance your mortgage today!
Fixed Rates VS Variable Rates
In a FIXED RATE MORTGAGE the interest rate is determined and stays the same for the term of the mortgage. The fixed rate mortgage was once the standard type of mortgage product that was available in Canada.
Typically, fixed rate mortgages for longer terms are popular when interest rates are low, but are expected to rise in the future. In this way you can “lock-in” your mortgage at existing, presumably lower than future, interest rates.
In a VARIABLE RATE MORTGAGE (VRM) the interest rate charged on the mortgage loan will fluctuate as market interest rates move.
This type of loan differs from a fixed rate mortgage in that the interest rate charged on the loan may be changed during the term of the mortgage.
Generally, these loans are initially set up like a standard loan, based on the current interest rate.
The loan is reviewed at specified intervals over the term of the mortgage loan (usually monthly). If the market interest rate has changed, so will the interest charged on the mortgage.
Changing either the size of the payments or the length of the amortization period (or a combination of both) at this time will alter the mortgage repayment plan.
CAPPED RATE VARIABLE MORTGAGES are variable rate mortgages on which the lending institution has set a limit to interest rate increases or decreases.
This means that the interest rate of the mortgage will fluctuate but the lender has set a rate and guarantees that you will not have to pay interest rate at higher than that limit.
Variable rate mortgages may offer a CONVERTIBLE RATE feature, allowing you to lock in to a longer term (not less than 3 years) fixed rate mortgage at any time without penalty.
Mortgage lenders are continuously creating new features to differentiate their mortgage products to attract your business.
Mortgages For Self-Employed Without Income Verification
There are many benefits to being self-employed and one of them is writing off as many expenses as possible to reduce your taxes.
This is a great tax reduction strategy but as you know this also makes it more difficult for you to qualify for a traditional mortgage.
If you are self-employed and are looking to refinance your mortgage then most lenders will ask you to provide the last 2 years Revenue Canada Notices of Assessment (NOA’s) to average your income from line 150.
This is fine when you don’t have many write offs but it will work against you if your net taxable income is too low and it may result in automatic decline of your application.
NOT HERE…
Did you know that my lenders offers up to 95% financing for self-employed clients who have difficulty providing third party verification of their income?
They will consider less than 2 years business-for-self if you have been working for an extended period of time in the same field, performing essentially the same function with the same skill requirements.
- All you need to do is sign statutory declaration at the solicitor’s office confirming the following:
- Your income is declared as on application
- You’ve been self employed for a minimum of two years or in the same line of work for a minimum of two years
- You do not have Federal or Provincial income tax owing
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EXAMPLE: If your home value is $300,000 and your current mortgage balance is $185,000 then your home equity is $115,000.
You could tap into your home equity and pay off some or all of your credit cards and loans to make your life easier.
Now, let’s say you also owe $10,000 on line of credit... $25,000 on a bank loan and... $50,000 on 7 credit cards.
In total you are spending $3,488.99 while you could be paying only $1,681.02 and reduce your monthly obligations by 51.82%.
Creditor |
Balance |
Payment |
Creditor |
Balance |
Payment |
Mortgage |
$185,000 |
$1,183.64 |
Mortgage |
$275,400 |
$1,681.02 |
Credit Line |
$10,000 |
$300.00 |
Credit Line |
0 |
0 |
Bank Loan |
$25,000 |
$505.35 |
Bank Loan |
0 |
0 |
Credit Cards |
$50,000 |
$1,500.00 |
Credit Cards |
0 |
0 |
Total Owing |
$270,000 |
$3,488.99 |
Total Owing |
$275,000 |
$1,681.02 |
|
|
|
Your Savings |
|
$1,807.97 |
|
|
This example is for illustration purposes only and it was based on the following assumptions: Before mortgage rate of 6% calculated semi-annually based on 25 year amortization; Bank loan 8% rate and payments spread over 5 year term; Line of credit and credit card payments equal to 3% of outstanding balances. After mortgage rate of 5.5% calculated semi-annually amortized over 25 years, insured at 2% with one time insurance premium. Annual Percentage Rate (APR) is 5.576%
APPLY NOW FOR THE SAME DAY SERVICE
If you answered "YES" and you want to take advantage of our proven mortgage services -- HERE ARE THREE EASY WAYS FOR YOU TO GET STARTED:
- CLICK HERE TO APPLY ONLINE ON THE SECURE SERVER
Use the online secure server mortgage application form for faster service. We will receive it instantly and you could get your approval in less than a day.
- CLICK HERE TO USE .PDF FORM
The online application is on a securer server but if you are concerned about giving your information over the internet then you can use multi-purpose .PDF form. Save it to your computer so you can complete it when you have more time and then simply fax it toll free or scan & email it.
- SEND YOUR COMPLETED .PDF APPLICATION BY SNAIL MAIL
If you prefer using "SNAIL MAIL" then mail the .PDF form to our office address: VERICO Mortgage Network London Inc. Attn: Joe Malek, 321 Springbank Drive, London, Ontario, N6J 1G6
REMEMBER: It costs you NOTHING to get started and most of all there are NO obligations. If you are not satisfied with the offer then you can cancel at anytime and you'll still get to keep my credit guide -- no matter what you decide!
Sincerely,
Joe Malek, Mortgage Agent Lic. #M08004649
P.S. That's all it's to it... no running around... no time consuming appointments... no office visits... and the lowest rates around GUARANTEED! I know you have many other questions for us and we will take time to answer all of them. Just complete the online form and you'll get fast answers including our answers to frequently asked questions in less than 1 hour!
P.P.S. We work for you and not the lender. Our goal is to arrange the most suitable mortgage financing for your situation and of course at the best rates on the market so you have nothing to lose and much to gain by applying online for your mortgage at this website. If your credit is bruised then I'll even give you a FREE copy of my "How To Re-Establish Your Credit" E-Book! |
