What line of credit mortgage means and how it can be beneficial for you

You can experience unexpected expenses in your life. You may need money for maintenance or to complete a home project. In such cases, you need to access the assistance of a trusted financial partner who can offer the right suggestion to get you out of the financial need. Canada Innovative Financial is one such mortgage service that offers you timely assistance to manage your financial difficulties with ease. Mortgage brokers can offer you a line of credit mortgage that is better than a regular unsecured loan. You can access money on demand for a set period. Line of credit mortgages offer you flexibility.  You can borrow the money, pay it back, and repeat the process as necessary. When you access the assistance from the best mortgage experts in Canada, you can experience the following benefits with a line of credit:

Access To Instant Cash

You are gain access to credit immediately as required. You never have to wait a long time for processing. Without a delay in getting the funding, you can manage your financial needs without undue stress.

Lower Interest Rate

When you access the line of credit loan from the financial experts like Canada Innovative Financial, the interest rates are low. You pay less interest in this type of loan compared to others. Another important feature is that you pay interest only for the amount you use and not the entire amount available to you. The less expensive loans help you deal with your financial difficulties without the fear of huge interest charges.

Tax-Deductible Interest

The line of credit loan can be tax-deductible if you are borrowing for the purposes of a qualifying investment. So, when you pay the interest, you can add your income tax savings. You need to talk to your tax advisor for more details.

Use Funds for Any Purpose

When you take a line of credit mortgage, it is not limited to buying or completing projects for your home. You can use it for any purpose that requires immediate financial attention. If you have a secure job and can meet your financial obligations, and enough equity in your home, you have a good chance of approval.

To access the advantages offered, you need the assistance of the best mortgage broker like Canada Innovative Financial. The financial experts update you with the market changes and ensure you get the best deals without any hassles. Click on bc-mortgage-broker.ca to get assistance from experts to manage your financial problem with ease.

Is a debt consolidation mortgage a good choice help become debt-free?

Leading a life with overwhelming debt is difficult. An overpowering debt in retirement with restricted salary can be significantly harder. If you have previously investigated various approaches to deal with debt, you may have run across information regarding debt consolidation, which combines different debts into one payment. It will work if the debt isn’t inordinate and you have great credit and an arrangement to hold debt under tight restraints. Debt consolidation moves debts with high interests, for example, bills of credit cards, into one payment of lower interest. It can pay off your all out debt and rearrange it so you pay it off quicker.

In case you’re managing a reasonable measure of debt and simply need to rearrange numerous bills with various loan costs, installments and due dates, debt consolidation is an excellent strategy to achieve this.

What is working mechanism of debt consolidation?

Working mechanism debt consolidation

There are two essential approaches to merge debt, the two of which concentrate the debt installments into one month to month bill:

1. A credit card balance transfer feature and no interest:

Transfer every one of your debts onto this card and cover the equalization during the limited time frame. Some credit card companies will offer promotions such as this.

2. A debt consolidation loan with a fixed interest rate:

Use the cash from the loan to clear off your debt, at that point repay the loan in regular installments over a pre-decided term.

There is a wide range of ways that you can opt for debt consolidation. You can get a home equity line of credit (HELOC), home refinancing to get money out of that equity, or get an approval of a personal loan from any bank or comparative monetary institution. The best choice for an individual relies upon his credit rating and profile, just as the ratio of debt to-income.

Is debt consolidation a good idea?

Debt Consolidation choice

A debt consolidation loan generally must meet the below criteria:

  • Your debt payments including mortgage payments doesn’t surpass 42% of your gross income.
  • Your credit is strong to obtain a low interest card, line of credit or debt consolidation loan of low interest.

Here’s a situation when debt consolidation will be helpful Suppose you have 4 credit cards that have a rate of interest ranging from 18.99% to 24.99%. You generally make your installments on a  scheduled date, so your credit is great. You may fit the bill for an unsecured debt consolidation loan at a much lower rate of interest, for example an interest rate of 7% — a much lower rate of interest.

For some individuals, debt consolidation uncovers a promising finish to your current circumstances and a fresh start to the future. If you obtain a loan that has a term of 3 years, you realize it will get cleared off in 3 years — provided that you make your installments on schedule and control your spending. On the other hand, making minimum installments on your credit cards will create months or years before you pay the dues.

Consolidating debt is an excellent idea that you should investigate. Find out all the choices that are available to you and pick the one that bodes well for your circumstance.  If you own a home and have some equity in it, we can help you with consolidating your debt to increase your cashflow and save you money.  Call us today at 604-318-1292.

Retain Financial Stability with Line Of Credit Mortgages

If you are thinking of a line of credit that is secured by a mortgage against your home then consider HELOC (A home equity line of credit) mortgage. A HELOC similar to home equity loans can allow homeowners to borrow money against the built up equity in their home. Such mortgages depend on a varying rate that fluctuates with the prime rate of the Bank of Canada. On the other hand, the rate of interest is usually higher than a variable rate mortgage. However there is no need to select between them. HELOCs may offer you the borrowing flexibility but they also come with some risks, mainly financial discipline.

Home Equity Loan Rates

Is A HELOC A Savior In Emergency Financial Situations?

Irrespective of if you require to enhance your kitchen or get your leaky roof fixed, any home improvement or repairing project will never come cheap. For instance, remodeling of an average kitchen will cost almost $19,450 and the average roof replacement can be around $6000. If you do not have that much money in your bank account, you will require to borrow the find for remodeling or repairing.

HELOCs will give you flexibility to borrow and repay the money that you borrow. But you must be well disciplined when you borrow funds and repay the lenders. Also remember that to qualify for a HELOC you require to have the ratio of your debt to income in the lower 40s or less than that, a credit rating of 620 or more and a home value which is at least 20% greater than you actually owe.

How Will A HELOC Work?

In simple terms, a HELOC will appear to work almost like a credit card. You can borrow money up to a specific credit limit that is approved by the lender beforehand. As a homeowner, you need to repay the borrowed funds as well as the interest. Such an option can come with more flexibility i.e.; you can withdraw and make repayments on daily or weekly basis if needed.

A HELOC may act similar to a credit card and give you constant access to the equity of your home, but it has a big difference when it is related to your credit rating. Some credit bureaus will treat HELOCs of a specific size such as installment loans instead of revolving lines of credit. It means that if you borrow the total limit of your HELOC, it won’t create the same negative impact that maxing out a credit card would have. Similar to a line of credit, taking a new HELOC will affect your credit score.

Is the First-Time Home Buyer Incentive helpful at all?

On September 2nd, the federal government implemented the First-Time Home Buyer Incentive, which is a program they had announced in the federal budget this spring.   It’s aim is supposed to be to help first-time home buyers to get into their first home.

It is curious timing that they would call an election 9 days later, but I will get to that later.  For now, more about this new program. (more…)

The age-old question “Is it a good time to buy a home?”

In my time as a mortgage broker, there have been many instances when I have been asked “Is it a good time to buy a home?”  If you were to hear the words of many Realtors, you would hear the words “Its a great time to buy a home”.  This may sound self serving, and to some extent, that may be correct.  The subject of this post is to dig deeper as to when it is a good time to buy, and what constitutes a good time to buy a home.


First Time Home Buyers Mortgage Broker Tips And Tricks

Among the services I provide to my clients, I consider myself to be a “first-time home buyer mortgage broker“.  As a first time home buyer mortgage broker, I know how difficult it is to get into the real estate market, particularly in Vancouver, and it brings me a particular amount of job to help someone get past the challenges if being a first time home buyer.

I have recently completed an e-book and will be launching it soon.  I believe it will be very helpful for not just first-time home buyers, but for anyone who is not as knowledgeable in residential mortgage lending, about how to make your home buyer mortgage broker application appealing to a mortgage lender.

As a sneak preview, here are three tips on improving your mortgage application as a first-time home buyer.

3 Home Buyer Mortgage Broker Tips

  1. Take advantage of the home-buyers plan to fund your down-payment.  This program is not technically ONLY for first-time home buyers, but all first-time home buyers are eligible.  Under the plan, you can borrow up to $25,000 from your RRSP for the purchase of an owner-occupied residence.  If you and your spouse are both applying, then you can withdraw $25,000 each. It is a loan, so it has to be paid back over 15 years (or 1/15th of the loan will be added to income for that year).  However, there is no withholding when you withdraw it, it does not have to all be declared as income on any given year, and you don’t even have to use all of it for down-payment!  You can use it for any purpose that you need it for. A good mortgage broker, like myself, can help you with some of the finer details and complex situations that often arise from these situations.
  2. Make sure you pay your bills on time. If you have a high balance on your loan, or you have a lot of debt, those also have a significant negative impact on your credit score, but you can get the bills down and there is no record of your high debt levels.  However, when you miss a bill payment, it stays on your credit bureau for 6-7 YEARS.  This not just negatively impacts your credit score, but lenders look at this when assessing risk, and they have been particularly uncompromising and (unreasonable, paranoid, strict…and other words that I cannot put in print) in the last few years.  While you likely do not have to wait 6-7 years to become bankable if you have had gone through a period of bad credit, the less negative credit on the bureau, the better. At least make the minimum required payments and you will go a long way to making yourself appealing to them.
  3. Having no credit is just as bad as having bad credit. Many people feel that not requiring credit should prove your ability to pay your bills and should be good evidence of credit-worthiness.  This is not how mortgage lenders think.  If you currently do not have any credit, then you do not have any documentation that you are an acceptable credit risk, and no matter how strong your income is, you will have difficulty obtaining a prime mortgage approval.  Make sure you have at least 3 different credit facilities in your name.  (Secondary credit cards in a spouses name are not considered acceptable for establishing your credit).

I am excited to launch my home buyer mortgage broker e-book soon, in which I go into much greater detail and give many different ideas to help home buyers prepare for home ownership, but as a mortgage broker in Vancouver, you are welcome to contact me in the meantime to discuss your circumstances and see if there are any options for you.

OSFI B20 mortgage guideline changes 2017 – Part 2

This is a continuation of the article published here about the OSFI B20 morgage guidline changes for 2017.

If you are familiar with mortgage brokers at all (which you probably aren’t) you would know that we also have alternative sources of lending for situations where a mortgage borrower will not qualify with a prime institution.  We have what we call “B” lenders, who have higher rates but more flexible lending criteria, and we have private lenders, which are individuals and corporations who can lend money on on anything that suits them. (more…)

Bank of Canada announces increase to the prime lending rate.

I am just sending a quick note out to let you know about today’s announcement by the Bank of Canada to increase the prime lending rate. The increase is .25% and is applicable to variable and adjustable rate mortgages.

If you are one of the people on a fixed rate mortgage, then this will not affect you at this time. If you are on a variable rate, most lenders adjust the payment to reflect the interest rate change. A couple lenders will keep your payment the same but you will be paying less principal and more interest with each payment. (more…)

Another reason Vancouver home prices will not increase as quickly this year

The Greater Vancouver real estate market is getting hit from all angles at the moment.  There is the foreign buyers tax, the empty home property tax and the most recent draconian mortgage lending rule changes.  The foreign buyers tax has been scaled back somewhat to make it more reasonable for those with work permits, but it is still a major deterrent to property speculators looking to park their money. (more…)