Is your Mortgage Renewing Soon?... What else is out there?

These are interesting times we are living in, with a record inflation that has not been this high since August 1991.  Many clients out of fear of the unknown are simply signing their mortgage renewal agreements without looking at what else is out there.  

The Trudeau government provided many people during Covid 19, particularly those who were self employed, with monetary relief so they could stay afloat. It also resulted in them taking on more debt as they were forced to close shop, but still had to maintain payments on their leases, mortgages and other financial obligations tied to their businesses.

 

There is a huge growth in alternative lending in this sector. Having one payment to consolidate all your debts is the credo under how this lending operates. One can argue you are further ahead with a higher mortgage rate with one payment vs  your low rate mortgage at the bank that keeps you with balances on your unsecured debt. This is because your reported net income on your tax return does not debt service at the mortgage stress test. This rate is currently 5.25% as of April 14/2022.  So what good is low rate on your mortgage when you still have unsecured debt at 2 to 3 times higher. 

 

There is a better way. Want to know more...

 

Please connect with me 

https://RenewYourMortgage.ca 

via email at lindsay@mountainviewmortgage.ca or 

by phone/text @ 416 464 6423

Lindsay Doke Mountainview Mortgage,

Mortgage Agent lic M18001723 

*Photo Mirabella  1926 Lake Shore Blvd W. Toronto 

Docs you need to Renew Your Mortgage

Get these documents together before you start the refinance process.  Identification 0   Photo ID of two pieces plus / Passport if available.  Citizenship Docs not required. 

The stress test does apply when you change lenders but in today's rate environment that should not slow you down. 

Think back to your original mortgage and all of the documents that you had to gather. For a refinance, the documentation for your refinance is pretty much the same. The overall purpose is to prove different aspects of your finances to your lender.

All lenders have slightly different requirements, but you can bet that they'll probably ask for documents in the following seven categories:

1) Proof of income: Proving your income generally requires the following documents.

The last 30 days of pay stubs

Your current tax returns

Tax forms like T4's and Notice of Assessment ( NOA ) 

2) Insurance: You'll probably need to produce documentation for two kinds of insurance:

Homeowners insurance, to verify that you have enough current coverage for your home.

Title insurance, to help your lender to check the taxes, the names on the title, and the legal description of the property.

3) Credit information: You'll need a recent credit score and credit reports.

4) Monthly debt load: While your lender will be able to see your debts during a credit check, you will still have to account for those debts. That means pulling together documents for things like:

Your current mortgage

Home equity loans

Credit cards

Auto loans / Lease Details

Student loans

5) Total assets: You need to document all of your financial assets other than your home. This means documenting things like:

Savings accounts

Stocks

Bonds

Mutual funds

CDs

Retirement accounts like RRSP's and TSFA's 

Other real estate

6) Appraisal: Your lender will probably also ask for a current appraisal of the house.

7) Loan to Value appraisal: The lender will usually also ask for some kind of appraisal (perhaps informal) of how much your house is worth compared to what you owe on the existing loan.

Once you've got all of this information together, it should be smooth sailing, right? In a perfect world, yes. Expect plenty of delays regardless of how well organized things are on your end. Not that this is a reason not to do a refinance-but knowing what to expect can make the process seem a little less frustrating.


Further information or Direct Answers are available from Veronica Thompson 647 628 7007 or VThompson@MortgageAlliance.com

Call today!

Working towards your best interests - Renew your Mortgage Toronto

“What will really save clients money is finding someone who will take the time to meet with you and understand your wants and needs,” Maguire said. “My opinion is clients should deal with someone who has their best interest at heart.”

http://www.mortgagebrokernews.ca/news/broker-miffed-by-rate-shopping-advice-201753.aspx


http://RenewyourMortgage.com

Toronto Real Estate