Reverse mortgage

Reverse Mortgage And Its Most Important Types And Features

Many economic terms have become widely circulated in daily life,
and ordinary people do not have any information about them, including the term reverse mortgage, which is one of the terms that many in Canada wonder about.

This is because it is one of the terms about which there is not much information available,
or due to the lack of awareness of what is included in the mortgage system, and given the importance of the reverse mortgage, you can learn about all the details related to it through this article.

Reverse Mortgage

Reverse mortgage

We can recognize the mortgage system in general as a type of loan that is linked to a property,
and it is granted in Canada to construct a property, purchase a property, or renew a property, for the person to invest through it, and it is usually a long-term loan 

It can be defined as a mortgage of real estate or a loan that relates to a mortgage of land in exchange for obtaining a loan, and it is considered one of the most popular guarantees used by creditor parties to be able to obtain the money that they lent to the debtor, and banks are following that way to be able to obtain funds in the form of assets or separate parts.

When the owner does not pay his debts, the creditor gets the property as a substitute for its money,
and the reverse mortgage allows the owner to borrow an amount of money equal to the value of the property to be mortgaged and obtains it from the bank in the form of payments or credit facilities

and the mortgage is prepared so that the amount is paid within a period Specifically imposed by the lender, with the owners of the property bearing all real estate taxes, in addition to the insurance due on the property.

Who is eligible for a Reverse Mortgage?

We can learn about a reverse mortgage that is implemented in Canada, to be able to know
who is entitled to obtain it, as it is a type of mortgage that helps the borrower to reach the actual value.

It is usually offered to elderly homeowners over the age of 62 and does not require them
to make monthly payments to be able to pay off the value of the mortgage loan,
as this type of loan allows homeowners to convert their ownership of homes into a form of cash income.

Without the need to pay the loan installments every month, they get the money
as a fixed monthly payment, or as a credit, meaning that the value of the property is converted into cash,
at rates starting at 3.5% during the year of the value of the property.


The difference between Reverse Mortgage and a Forward Mortgage

Reverse mortgage

There are clear differences between a reverse mortgage and a deferred mortgage so that people do not get confused. Through a deferred mortgage, a person obtains a loan to be able to buy a house, then pays the loan amount to the lender, unlike a reverse mortgage, where he owns The person has the house and does not need to buy it, and he borrows against this house.

Also, he can get the loan without having to pay it back to the lender,
and the balance in the reverse mortgage becomes due and payable in the event
that the owner of the property sells it or in the event of his death,
in which case the borrower gets the excess proceeds when the sale of the property is completed.

For this reason, when presenting a mortgage, the real estate agencies are keen that the lenders make a complete structure for the property to be mortgaged so that the loan does not exceed the amount offered in the property, and so that the borrower or his heirs do not have to bear amounts that excel the value of the house when obtaining a loan greater than the value of the property. This is when the value of the house decreases in the real estate market.

Requirements for a Reverse Mortgage

To be able to take out a reverse mortgage in Canada,
you must meet some of the following requirements:

  • Be a homeowner and be over the age of 62.
  • You are only required to repay the loan when you move out of a home or in the event of death.
  • Also, Prove annually that you are alive and living in the mortgaged house, for the lender to make sure that you are alive and so that the loan does not change to payable.
  • Maintaining the payment of real estate taxes regularly, and working on periodic maintenance of the house so that its market value does not decline, and the house continues to maintain its value, and the owner continues to maintain his ownership of the house without ceding it to anyone.

How to receive payments for a Reverse Mortgage Loan

There are many options available to you to get a reverse mortgage loan value in Canada,
you can get a loan amount that is equal to the value of the property in the form of one financial payment, and a fixed interest is charged on the amount, and the balance on the loan will grow over time with Interest must be accruing.

And you can also get periodic payments that are paid to you by the lender, and they are paid once every month, and this system sees period payments and continues throughout the life of the property owner, and there is a third option, which is known as term payments, through which the lender pays money to the property owner within a period Definite like getting it for 10 years.

Also, you can get a line of credit instead of getting cash in an instant form,
and that option allows you to withdraw money at the time you want,
it also enables you to pay interest only on the money you withdraw and not on the entire loan.

Is a Reverse Mortgage Required?

A reverse mortgage loan is paid when the house is sold, after the death of the property owner,
and the materials resulting from the sale are used to pay off the loan, and the loan amount is due in full,
and if the heirs refuse to sell the house

also, they must pay the loan amount in full, or get out of Reverse Mortgage Some reverse mortgages have certain conditions that do not allow the loan to exceed the actual home value.

Read more: Loan portfolios, how to manage them, and their best features

Pros of a Reverse Mortgage

Reverse mortgage

Among the advantages that you can obtain when you obtain a reverse mortgage in Canada are the following:

  • You can live in your own home for the duration of the loan,
    and also if you suffer hospitalization for 12 months, you will not invalidate the loan.
  • Also, The lender can allocate some of the proceeds from your loan
    so that you can cover the loan expenses when you are unable to do so
    if you are unable to pay real estate taxes or insurance.
  • Through reverse loans, you can get money for any purpose you want,
    you can use it for home improvement, or as a source of income every month.
  • By obtaining income, you can improve your lifestyle
    without having to make an effort at the age of over 62 who cannot work hard.

With the desire of countries and their endeavor to provide amenities for the elderly,
a reverse mortgage system was established so that they could obtain money
without the need to pay installments, so they could enjoy the money
and pay it at the end when the property is sold or death occurs

The Benefits of Taking Out a Second Mortgage

The Benefits of Taking Out a Second Mortgage

Are you considering taking out a second mortgage? If so, you’re not alone. Taking out a second mortgage has become increasingly popular in recent years as more and more homeowners look for ways to use their home’s equity to their advantage. From debt consolidation to home improvements, a second mortgage can give you access to funds that you can use for a variety of purposes. In this comprehensive guide, we’ll discuss the benefits of taking out a second mortgage, how to apply for one, and what to look out for when you’re making the decision. Whether you’re looking to pay off high-interest debt or finance a major renovation, a second mortgage can be a great way to make it happen. Read on to learn more about the advantages of taking out a second mortgage.

What is a Second Mortgage?

A second mortgage is a type of financing that allows you to borrow a specific amount of money against the equity of your home. It works similarly to a first mortgage, which is a loan that you take out with a bank to purchase a home. The difference is that a first mortgage is paid off using the sale of the home, while a second mortgage is paid off using the monthly payments made by the homeowner. A second mortgage is also known as a home equity loan, equity line of credit, or home equity line of credit (HELOC).

A second mortgage requires you to have equity in your home. Because you have a lien on your property, it also means that you’ll need to pay off your second mortgage in full before you can sell your home. If you are planning to take out a second mortgage, make sure you understand how it works and the implications of having it on your property. A second mortgage is often used to pay off other debts, finance renovations, or make a large purchase such as college tuition payments.

Benefits of Taking Out a Second Mortgage

A second mortgage can be a valuable financial tool in many situations. Whether you’re looking to pay off high-interest debt or finance a major renovation, a second mortgage can help you gain access to funds that don’t have to be paid back for a long time. Here are some of the many benefits of taking out a second mortgage.

– Builds Equity – One of the biggest benefits of taking out a second mortgage is that it allows you to build equity in your home. This can come in handy if you’re having trouble saving for a down payment or if you’re looking to make home improvements.

– Eliminates High-Interest Debt – If you have high-interest debt such as credit card or student loan payments, you may wish to consider taking out a second mortgage to pay it off. This could save you thousands of dollars on interest payments over the long term.

– Additional Funding – A second mortgage could give you additional funds to help finance a major purchase such as a home improvement, college tuition payments, or a car repair.

– Repayment Flexibility – Unlike a first mortgage, second mortgages are known for having flexible repayment terms. This means you can often choose how and when to pay it back.

– Help Relatives – Additionally, a second mortgage could be a great way to help family members in need by giving them access to the equity in your home.

How to Qualify for a Second Mortgage

When you’re looking to take out a second mortgage, you’ll first want to make sure you qualify for one. Here are some things you can do to improve your odds. – Save for a Down Payment – While it may seem like a distant priority, the amount of equity you have in your home can impact your ability to qualify for a second mortgage. So if you’re looking to take out a second mortgage, make sure you’re saving up for a down payment.

– Have Good Credit – Your credit score is a major factor when it comes to qualifying for a second mortgage. If your credit score is low, it could impact your ability to qualify for a second mortgage. Make sure you check your credit report and consider working to improve your score before applying.

– Have Income – A second mortgage requires that you have steady income to repay the monthly payments. This means your income will have an impact on the amount of money you can borrow.

– Have Good Debt-to-Income Ratio – Your debt-to-income ratio is a major factor when it comes to qualifying for a second mortgage. The higher your debt-to-income ratio, the less you’ll be able to borrow.

How to Apply for a Second Mortgage

Applying for a second mortgage is similar to applying for a first mortgage. You’ll need to work with a lender to fill out an application and provide them with all the necessary documentation. There are a few things you’ll want to keep in mind when you’re applying for a second mortgage.

– Know Your Credit Score – Before you apply, make sure you know what your credit score is. Taking steps to improve your credit score before you apply may help you qualify for a larger amount.

– Find a Lender – When you’re ready to apply, you’ll want to find a lender that specializes in second mortgages. You can either go through your current mortgage lender or choose from a list of second mortgage lenders.

– Keep Track of Rates – While you can generally expect to pay higher interest rates with second mortgages, rates can vary widely. Make sure you compare interest rates from multiple lenders before choosing one.

– Understand Repayment Terms – Second mortgages have different repayment terms, so make sure you understand what your monthly payment will be. This will help you see how much money you can actually borrow.

– Think About Your Home Equity – You can also think about how much equity you have in your home when deciding how much to borrow. Borrowing too much against your home may put you at risk of losing it if you can’t pay back your loan.

Types of Second Mortgages

There are two types of second mortgages that you can take out.

– Second Mortgage with a Second Mortgage – A second mortgage with a second mortgage allows you to take out a new loan against your home while you have an existing loan. This works the same way as a first mortgage, with one major difference: you won’t be required to pay back the first mortgage until the second mortgage is paid off.

– Second Mortgage with a First Mortgage – A second mortgage with a first mortgage works similarly, except the first mortgage will be due immediately. This means you’ll need to include the first mortgage payment in your budget and you’ll have to pay off both loans at the same time.

What to Look Out For

While second mortgages have many benefits, they come with a few downsides as well. Here are some things to keep in mind when you’re considering taking out a second mortgage.

– It Affects Your Credit Score – As with any type of loan, taking out a second mortgage will affect your credit score. You can minimize the impact by paying off your debt on time and keeping your credit utilization low.

– It Comes with High Interest Rates – Second mortgages come with higher interest rates than a first mortgage. This can make it harder to pay off the loan in a timely manner.

– You May Be Required to Pay PMI – One thing to be aware of is that you may be required to pay private mortgage insurance (PMI) on your second mortgage if you take out a loan that exceeds 80% of the value of your home.

Conclusion

A second mortgage is a great way to access funds against the equity in your home without having to take out a first mortgage. If you have good credit, a large amount of equity in your home, and are willing to pay high interest rates, a second mortgage can be a great source of funds. It’s important to note that a second mortgage will affect your credit score, so it’s a good idea to take steps to improve your credit score before applying.

We here at Capital Mortgages in Ottawa look forward to assisting you with all your Ottawa mortgage needs. Contact us today by calling us at: 613-228-3888 or email us direct at: info@capitalmortgages.com

You can use these links to APPLY NOW or CONTACT US.

You can also click here.

Refinance Your Ottawa Mortgage with Capital Mortgages

How to Refinance Your Ottawa Mortgage

How to Refinance Your Ottawa Mortgage: The Complete Guide

Refinancing your mortgage is a great way to reduce your monthly payments and save money. In fact, it’s the most effective way of reducing the cost of your mortgage. Refinancing also offers a great opportunity to lower your interest rate and lock in for the long term. If you have another source of equity, refinancing can be an excellent way to pay off other debt and improve your financial situation in the process. Refinancing is not easy, but with the right preparation, it’s a lot simpler than you may think. This guide covers everything you need to know about refinancing your mortgage in Ottawa – including potential pitfalls to avoid along the way.

What is refinancing?

Refinancing is the process of getting a new mortgage for the same property you currently own. It allows you to pay off your current mortgage and use the equity in your home to finance a new, lower-cost mortgage. You can refinance for a number of reasons, including:

Lower interest rate – Whether interest rates are rising or falling, they always have the potential to go up. You can lock in a lower rate with a new mortgage and avoid future rate increases.

Pay off other debt – If you have high-interest debt like credit card or student loans, refinancing can help you pay it off quicker. You can also use the lower-cost of your new mortgage to make extra payments and pay off your debt even faster.

Use the equity in your home to fund other projects – Whether you want to start a business or add on to your house, you can tap into your home equity to finance these projects and more.

Why would you refinance your mortgage in Ottawa?

If you have a low-interest rate, you should refinance your mortgage as soon as possible because you’ll save a lot of money. This is particularly true if you have a variable-rate mortgage, as interest rates have been rising in recent months. If you have a high-interest rate, refinancing can save you a lot of money, especially if you’re paying a high interest rate. If you have equity in your home, you can use it to get a lower-cost mortgage.

How to refinance your mortgage in Ottawa

First, you’ll want to talk to your current lender to make sure you’re eligible for a refinance. If you are, the next step is to shop around for quotes and find the best deal for you. You’ll likely need to get pre-approved for a new mortgage before you start shopping for quotes. This is a simple process that usually only takes a few hours. There are lots of different factors that go into getting a mortgage pre-approval. You can also try an online pre-approval tool to speed up the process. Next, you’ll start shopping around for lenders. Many Ottawa mortgage brokers will help you with this process, and it’s a good idea to talk to a few so you can compare quotes. You can also use a mortgage comparison tool, like the one provided by Mortgage Centre, to get an estimate of your current mortgage rate and payment. Capital Mortgages in Ottawa is here to help with all the decision making process.

Who can benefit from refinancing?

Anyone who is currently paying off a mortgage can benefit from refinancing. If you have a low-interest rate and you’re confident it will remain low, refinancing is a good idea. And if you have a high-interest rate, refinancing can save you a lot of money. If you have equity in your home, refinancing can help you reduce your monthly payments and pay off your mortgage even sooner. If you have high-interest debt, you can use the equity in your home to help pay it off.

What are the benefits of refinancing?

Refinancing has a lot of benefits, including lower interest rates and reduced monthly payments. It’s important to remember that the terms of your new mortgage could be different from your current loan. If you have a fixed-rate mortgage, refinancing could lock you in at the same rate. If the rates are currently low and you have a variable-rate mortgage, refinancing can lock you in at a low rate so you won’t risk rising rates. However, if the rates are currently high, refinancing could lower your monthly payments. Do you have significant equity in your home? refinancing could allow you to take out a larger mortgage. And if you have high-interest debt, refinancing can help you pay it off quicker.

How much does refinancing cost?

The cost of refinancing will depend on your new mortgage terms. If you’re simply locking in a new, lower rate on your current mortgage, you shouldn’t have to pay any extra. If you’re extending the length of your mortgage, you may have to pay closing costs.

When should you refinance your mortgage?

Whenever you have the opportunity to refinance your mortgage, you should always at least consider the option. Factors like current interest rates and home equity will help you decide if now is the right time to refinance.

How to decide what type of refinance is right for you?

You’ll want to compare the costs of different types of refinancing to decide what’s best for you. If you want to lower your monthly payments, you can extend the length of your mortgage, but this will add to your total cost. If you’re looking to save on interest, you can refinance with a shorter length and a larger down payment. This will increase your monthly payments but save you money in the long run. If you have significant equity in your home, you can refinance with a larger mortgage, but you’ll likely have to pay closing costs.

Conclusion

In summary, refinancing your mortgage is a great way to lower your monthly payments and save money. It’s also a great opportunity to lock in at a lower rate and pay off other debt. To get the best deal on refinancing, start shopping around for quotes and pre-qualifying as soon as possible.

We here at Capital Mortgages in Ottawa look forward to assisting you with all your Ottawa mortgage refinancing needs. Contact us today by calling us at: 613-228-3888 or email us direct at: info@capitalmortgages.com

You can use these links to APPLY NOW or CONTACT US.

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How to Get a Mortgage in Ottawa: A Beginners Guide

How to Get a Mortgage in Ottawa

How to Get a Mortgage in Ottawa: A Beginners Guide

If you’re looking to buy a home in Ottawa, you may be wondering how to get a mortgage as a first-time home buyer. While the process can seem overwhelming at first, with some planning and research you can make it happen. Getting approved for an mortgage is not easy and will involve gathering lots of documentation and satisfying lender requirements. You will need to put together an application which shows your housing history, income, credit score, etc…

If this sounds like something you’re ready to take on, read on for our beginner’s guide on how to get a mortgage in Ottawa.

What you need to get a mortgage in Ottawa

There’s no one-size-fits-all mortgage, but there are some basic requirements most lenders will look for in an application. – You need to be a Canadian citizen or permanent resident: While immigration and refugee status are not factors in mortgage approval, your citizenship does matter. You can apply for a mortgage only if you’re a Canadian citizen or a permanent resident.

You need to be employed: Lenders will want to see proof of income in your application, such as pay stubs or employment letters. You’ll also need to show proof of income history for several months at minimum. This means you’ll have to show proof of employment for the last 12 months.

You need to have collateral: In the case of a default, the lender can take your house and sell it to recoup their losses. While you should always make your payments on time, you don’t want to leave your lender with no way to make up for a missed payment. If you have a down payment of less than 20 percent, you’ll likely need a collateral-backed mortgage.

You need to have savings: Lenders will want to see that you have savings set aside for housing costs, maintenance and repairs. You’ll need to show proof of funds in your application, such as a bank account statement.

You need to have good credit: Lenders will look at your credit history and score when reviewing your application. Make sure to pull your credit score at least 90 days before you start the mortgage application process, so you have time to improve it if it’s not at its best.

Meet with a mortgage broker

Many people only deal with a bank for a mortgage, but there are many different lenders in the market and each has different lending policies. By working with a mortgage broker, you can shop around for a lender offering the best terms and rates. A mortgage broker works with several banks and lenders, so they can help you navigate the process of applying for a mortgage. They can also advise you on which lenders are best suited for your credit history and financial situation. Working with a mortgage broker will allow you to compare different lenders, account for your credit score, and make sure you’re getting the best deal possible. There are many different types of mortgages out there, such as fixed-rate, variable-rate, open term, closed term, etc…

It’s important to know which type of mortgage you should be getting. A mortgage broker can help you make an informed decision on what type of mortgage is best for you. They will be able to help you decide on the best type of mortgage for your needs.

Check your credit score

One of the first steps of getting a mortgage is to check your credit score. This will give you an idea of how lenders will see you. Having a good credit score is key to getting a good interest rate on your mortgage. Most lenders will want to see a credit score of at least 680. There are a few ways you can go about checking your credit score, but the most reliable method is to sign up for a credit monitoring service. A credit monitoring service will give you a detailed report on your credit score, along with information on what factors are affecting it. You may have to pay for a credit monitoring service, but in the long run it’s worth it. Having a good credit score means you’ll have more options when it comes to lenders. You’ll also have a better chance of getting a lower interest rate with a better payment plan.

Get an appraisal

An appraisal is a process where a third party will assess the value of your home. Lenders will want to see an appraisal on your home, so they have an idea of what it’s worth. Appraisals vary in cost, so you may need to set aside some cash to cover the expense. Your mortgage broker can help you find a reputable appraiser who will accurately value your home. The appraisal process can take anywhere between a couple of weeks and a few months, so keep that in mind when getting an appraisal. Depending on the value of your home, lenders may require two appraisals. This is common when the value of the home is high, as it provides a level of assurance that the mortgage amount won’t be more than the value of the home.

Know your lender and the loan type

Not all lenders are created equal, and they will each have their own lending policies. So, it’s important to do your research and find a lender that best suits your needs. Make sure you pick a lender that offers the type of loan you’re looking for. If you’re in the process of getting a mortgage, you may want to jot down the name of the lender you’re working with. This way, you’ll have one lender to focus on instead of applying to as many lenders as you can. Different lenders will have different mortgage rates and terms, so do your research and make sure you apply for a mortgage that works best for you. You can start by taking our quick quiz to find out which lender is best for you.

Conclusion

Getting a mortgage can be a stressful experience, but it doesn’t have to be. By practicing good financial habits and making sure your credit history is in order, you can get the best mortgage terms possible. By following our beginner’s guide on how to get a mortgage in Ottawa, you can take the first steps towards owning your dream home. You will need to gather lots of documentation and satisfy lender requirements. And while it may seem like a daunting task, it’s one that can be accomplished with the right amount of preparation.

We here at Capital Mortgages in Ottawa look forward to assisting you with all your Ottawa mortgage broker needs. Contact us today by calling us at: 613-228-3888 or email us direct at: info@capitalmortgages.com

You can use these links to APPLY NOW or CONTACT US.

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Second Mortgage - Ottawa Mortgage Brokers

Pros and Cons of a Second Mortgage

Pros and Cons of a Second Mortgage: The Ultimate Guide to Understanding the Options

A second mortgage is a type of mortgage that is secured by the equity in your home. You use this money to make home improvements, pay for tuition, or refinance your mortgage and take advantage of better interest rates.

If you have equity in your home, you may be wondering if a second mortgage is something you should look into. This article will highlight the pros and cons of a second mortgage as well as help you understand the different types of second mortgages.

What is a Second Mortgage?

A second mortgage is a type of mortgage that is secured by the equity in your home. You use this money to make home improvements, pay for tuition, or refinance your mortgage and take advantage of better interest rates.

Pros of a Second Mortgage

As we’ve discussed, a second mortgage is a type of mortgage that is secured by the equity in your home. It is often a good option for people who have equity in their home and are able to increase their monthly mortgage payment. A second mortgage can also provide a safety net in case you lose your job or are unable to make your regular payments. If you’re able to increase your monthly payment and your equity is sufficient, this will help you avoid foreclosure. A second mortgage is not typically a long-term loan like a home equity loan. It is a short-term bridge loan to tide you over until you are able to sell your home. If you plan to stay in your home for a long period of time, a 30-year mortgage is typically a better option.

Cons of a Second Mortgage

As with any type of mortgage, there are some cons to a second mortgage. The biggest one is the high interest rate. If you have a low credit score, a high-interest second mortgage is likely to make your overall payments higher. Another downside to a second mortgage is that you are required to put more money down. If you can’t come up with enough money to cover the full purchase price of a home, this could lead to a cash-out refinance, which will result in much higher taxes. You also need to be diligent about making sure you pay off your second mortgage before the first one is paid off. This means you will be making regular payments even after you sell your home. If someone else is footing the bills, this can be a major pain.

Final Words: Should You Look Into a Second Mortgage?

If you have equity in your home and are able to increase your monthly mortgage payment, a second mortgage may be an option for you. A high-interest second mortgage is likely to make your overall payments higher and can increase your taxes if you cash out. If you do choose to go this route, you’ll need to be diligent about paying off your second mortgage before you sell your home.

The decision to look into a second mortgage is something only you can make. What we’ve discussed are the pros and cons of a second mortgage and what you need to know before you decide.

A second mortgage in Ontario can help you get rid of high-interest credit cards and improve your credit score. Mortgage brokers Ottawa.

We here at Capital Mortgages look forward to assisting you with Ottawa mortgage needs and approvals. Contact us today by calling us at: 613-228-3888 or email us direct at: info@capitalmortgages.com

You can use these links to APPLY NOW or CONTACT US.

You can also click here.

How To Get a Mortgage: Capital Mortgages

How To Get a Mortgage

How To Get a Mortgage: The Ultimate Guide to Buying a House

Buying a house is one of the biggest steps in your life, and it’s not something you want to rush into. From deciding on the right type of loan to finding the perfect house, there are many steps involved in this process. You may feel overwhelmed by all that you need to do before you can be approved for a mortgage.

But don’t worry! With this guide, you will learn everything you need to know about getting a mortgage. From understanding what makes up a mortgage to how much money you should make or save for the down payment, read on to find out more about buying a home for yourself!

The mortgage process

The mortgage process may seem daunting at first, but it can be broken down into just a few steps.

First , you’ll want to calculate your budget. Be sure to include all of your monthly expenses, including utilities, groceries, and other bills. Keep in mind that you may need to set some money aside for taxes, maintenance, and other unexpected costs.

Next, you’ll want to decide on the type of mortgage you want. There are many different types of mortgages to choose from, including fixed rate mortgages, adjustable rate mortgages, and balloon mortgages.

After deciding on the type of mortgage you want, you’ll need to start thinking about the down payment. The down payment is the amount that you are required to pay for your house upfront. This can be anywhere from 3% to 20%. The larger the down payment, the lower the monthly payments will be.

Finally, once you’ve found a house that you’d like to buy, you’ll need to apply for a mortgage. There are many benefits to getting pre-approved first before looking for a house. You can find out what kind of mortgage you qualify for and what kind of monthly payments you can

What Is Required for a Mortgage

A mortgage is a type of loan that uses your home as collateral. You are given a certain amount of time to pay back the loan, before you are required to pay off the entire amount. This is done by paying installments.

The requirements for getting a mortgage are different for everyone. It all depends on what type of mortgage you are looking for, your credit rating, your income, and your down payment. Additionally, banks will also want to see your credit rating, your income, and your credit score before approving you for a mortgage.

If you are looking for a commercial mortgage, you will need to provide commercial property information. If you live in an apartment building, the bank will also want to see proof that you are the owner of that apartment.

Generally, before you are approved for a mortgage, the lender will want to know these things:

  • The amount of money you make
  • Your financial stability
  • What type of loan you want
  • How much money you can put towards your down payment
  • How much money you owe on any other loans
  • Your credit rating
  • The amount of money you owe on any other loans
  • How much debt is in your current balance

How Much Money Do You Need to Buy a House?

The amount of money you need to buy a house is much more than just your down payment. You also need to factor in all the other costs that go into the purchase. For example, you’ll need to pay for things like closing costs, fees, inspections, and other related items.

As a general rule, you will need at least $10,000 saved up for the down payment. The more you can save up, the better. You can read more about what to think about when determining how much money you need in our blog post.

Regardless of your down payment, it’s important to understand how much money you will need for your mortgage. The amount of money you need for a mortgage depends on factors like the type of loan you get, your income, and your credit score.

To get an idea of what you can afford, start by finding out how much your monthly mortgage payments will be with your existing income. If you don’t have a steady income, start by figuring out how much you make every month.

Who Can Apply for a Mortgage?

You may have heard that you need a certain amount of money to get a mortgage, but that’s not always the case. In fact, there are two types of mortgages: conventional and government-backed.

Conventional mortgages are for people who have a decent credit score and a high enough income or savings, while government-backed mortgages are for people with lower incomes or credit scores.

Government-backed mortgage programs help people who don’t have a lot of money but still want to own a home. It’s important to remember that government-backed mortgages require you to buy a home that is considered “affordable.”

This means that your mortgage payment will be less than 31% of your income, and it will be paid for by the government. If you make more than the max income, you’ll need to get a conventional mortgage.

What Kind of Loans Are There?

There are many different types of loans available to consumers. But before you can decide which loan you will need, it’s important that you understand what each loan entails.

A mortgage is the type of loan that allows an individual to purchase a house. Typically, there are two kinds of mortgages: purchase mortgages and refinance mortgages.

Purchase mortgages are the type of mortgage an individual will need if they are buying a new home or refinancing their home. The goal here is to buy a house for less than the value of the loan.

A refinance mortgage is necessary if an individual wants to change their current mortgage to a lower interest rate. The goal is to reduce the amount of money the homeowner has to pay every month.

There are many different types of mortgages available, but these are the two most common types. Understanding what each loan entails will make it easier for you to decide which one is right for you.

Conclusion

The best time to buy a house is when you don’t need one. That way, if the housing market falls and you can’t sell your house, you’ll be able to ride it out. The best way to do that is by saving or investing your money.

To sum up, there are many steps involved in the mortgage process. But don’t worry – with this guide, you will know what to do and be ready for the next step.

We here at Capital Mortgages look forward to assisting you with commercial Ottawa mortgage needs. Contact us today by calling us at: 613-228-3888 or email us direct at: info@capitalmortgages.com

You can use these links to APPLY NOW or CONTACT US.

You can also click here.

Tips for Working with a Mortgage Broker

10 Tips for Working with a Mortgage Broker

10 Tips for Working with a Mortgage Broker

Getting a mortgage is a major financial decision. It has the potential to change your life. A qualified and reputable mortgage broker will help make the process smoother and easier for you.

The cost of using a broker depends on what services they offer, but when it comes to getting a mortgage, it is worth every penny.

Here are some tips to work with a broker in order to get the best rates and service possible.

Get the right broker

Finding a mortgage broker is a task in itself. There are many factors to keep in mind so you can find the right one for you.

Your broker should be knowledgeable, licensed, and trustworthy. They need to understand your financial situation and credit score. They should also have a track record of closing a large number of deals in a short period of time.

The broker should also be available to answer your questions and provide resources to help you throughout the process.

In the end, it’s up to you to investigate and choose the broker that will work with you best.

Ask the right questions

When you’re working with a mortgage broker, the easiest way to ensure a great customer experience is to ask a lot of questions.

Mortgage brokers are professionals who work with banks and lenders to help clients achieve their financial goals. They have access to the best rates and terms from multiple lenders, so they can present you with the best options available for your particular situation.

However, there are many different types of mortgage brokers. The type of broker you want to work with will depend on what you’re looking for. Some brokers will focus on a certain type of mortgage, such as a FHA or VA mortgage. Others will focus on a certain type of borrower, such as someone who is self-employed or a first-time homebuyer.

Before you choose a mortgage broker, ask them what they specialize in and if they can help you with your specialized needs.

It’s also important to know what type of mortgage loan you want before you start the process. For example, if you want a conventional (non-government) loan, your lender will require your credit score and payment history as well as documentation of any assets you may have like an emergency fund.

Get pre-qualification

The first thing you should do is get pre-qualified. Some mortgage brokers will do this for free, while others will charge a small fee. It is worth the money to find out how much you can borrow before you even start looking at houses.

A pre-qualification letter from a mortgage broker will give you a ballpark figure on how much you can borrow and what interest rate you will likely get. It will also tell you what down payment, if any, you will need for a house and how much it will cost to insure the house.

Some brokers will try and sell you on the idea of buying a house that you cannot afford yet. They might tell you that if your credit improves or your income goes up, you can always refinance the loan later on. This is not true. If your family’s income changes, the balance of your loans might change as well.

Always get pre-qualified first. It is the best way to make sure that you are getting a loan that fits your budget and mortgage needs.

Find out what they do

A mortgage broker will shop for the best rates and terms for you. They help you find the right loan for your situation and help you through the paperwork. With a broker, you’ll have someone on your team who has your best interests at heart.

In order to find a great broker, consider these five things:

  • Do they have a lot of experience and knowledge in the field?
  • Do they offer different types of loans?
  • Do they help you get your credit report?
  • Do they offer services like closing and title insurance?
  • Do they have a good reputation?

If you can answer yes to all of these questions, you might be working with a good broker. For more tips and tricks on how to find the best broker for you, read on!

Know who they work with

Mortgage brokers exist to help you get the mortgage you need. They will work with a variety of financial institutions, including banks, credit unions, and other mortgage lenders. Mortgage brokers are incentivized by the financial institutions they work with. They are paid a commission for every mortgage they close.

As a result, it’s important to know who your mortgage broker is working with. Your broker should be able to tell you which financial institutions they work with and what sorts of rates they can offer on each institution.

Additionally, many brokers will work with multiple financial institutions to help you find the best fit for your needs. For example, some brokers might work with both banks and credit unions because they offer different rates on different services. A broker will be able to help you decide which type of institution is best for your needs.

Understand their process

A qualified mortgage broker will be a committed partner in your mortgage journey. Find out what services they offer and which you need to engage them. Ask about their process and how you will work together.

Another important thing to understand is how your broker can help with your mortgage. A broker might offer you a free consultation, access to the latest mortgage campaigns, and personal attention from start to finish.

After you have an understanding of what services you need from your broker, ask about their commitment to you as a client. Mortgage brokers work with many clients at once, but you want to make sure that they are invested in your case and will be there for you every step of the way.

It’s also important to think about what type of mortgage broker you need. Do you need someone who specializes in short-term mortgages or someone who can help with long-term mortgages? You want to make sure that you are working with the right type of broker for your needs.

Understand the costs

When it comes to mortgages, the upfront costs can vary widely depending on the broker and the services you need. Some brokers may charge a flat fee while others charge a percentage of the mortgage amount. But a mortgage broker is worth the cost if you are getting a mortgage.

You should be willing to pay a reasonable fee for a qualified broker who will make sure you get the best service available. In most cases, the broker will be able to save you money down the line. For example, if you are dealing with a mortgage from a company that doesn’t offer competitive rates, the broker will be able to find you a better deal from another company.

In addition, a mortgage broker can also help with closing costs and other charges related to your loan. A qualified broker will have a variety of lenders, rates, and services at their disposal to help you get the best deal possible.

The cost of mortgage brokers varies depending on what type of service they offer and what company they work for. Many offer one-time flat-rate service while others charge a percentage of your loan amount. Whichever type of service you choose, it is worth every penny when it comes to mortgages. You want to work with someone who has qualifications and

Conclusion

There you have it! 10 tips to work with a mortgage broker. Remember that a broker is there to help and advise you through the process and to make sure you understand everything before signing any documents.

It is advisable to work with a broker who is certified and has a proven track record. Not only will they be able to find you the best available rates, they will also be able to help with down payments, insurance, and closing costs. A broker will be able to provide you with a list of lenders that they’ve had success with.

After meeting with a few mortgage brokers, you should be able to find one that suits your needs. And once you’ve found the perfect one, they can help guide you through any questions or concerns and find the best mortgage for you and your needs.

We here at Capital Mortgages look forward to assisting you with commercial Ottawa mortgage needs. Contact us today by calling us at: 613-228-3888 or email us direct at: info@capitalmortgages.com

You can use these links to APPLY NOW or CONTACT US.

You can also click here.

Investment Property Mortgage: Capital Mortgages Ottawa

Investment Property Mortgage

Important Information You Should Know about Investment Property Mortgages

At Capital Mortgages we strive to be your personal mortgage broker for life. By focusing on great solutions, compassionate relationships, and honest ethics, we are proud to experience an ever-increasing number of satisfied clientele. Let Capital Mortgage help you with your investment property mortgage.

What is an Investment Property Mortgage?

Investment property mortgages are loans that are made against the value of a single asset, such as a single or multiple unit property or entire development. This is similar to a traditional purchase or refinancing mortgage, but in this case, the lender takes a stake in the property as collateral.  If you have an investment property, you may be able to acquire an investment property mortgage.  Investment property mortgages are offered by mortgage brokers who focus on Investment Property Mortgages.  Most major financial institutions offer investment property mortgages, and these investments can provide additional returns, liquidity, and lower the cost of the mortgage. Here at Capital Mortgages we can help you get a mortgage for your future investment property.

Important Information You Should Know About Investment Property Mortgages

Please note: This mortgage rate is based on a one-year contract. The rate can change on or after the expiration of the one-year contract, if a rate at which you like the deal better becomes available.  Does this Mortgage Rate Pay Your Property Taxes?  To take advantage of the 30-year interest rate, your mortgage contract requires a sufficient down payment of at least 20% of the sales price. Alternatively, if you wish to pay your property taxes on an installment basis, you should contact your local tax collector.  Capital Mortgage has a reputation for helping people find mortgages that best suit their needs.

Why a Home Equity Line of Credit Isn’t a Good Idea

A HELOC (Home Equity Line of Credit) has many benefits. For instance, it can be used as a last resort, helping you keep the money that you were planning on paying into the bank and avoid paying the bank higher interest rates. As with any borrowing, it’s important that you do your homework and thoroughly investigate whether the HELOC will benefit your situation and will pay off. Some things to consider:  While a HELOC may give you some cash to deal with unexpected financial emergencies or unexpected expenses, the debt has to be paid back before you have any option to borrow from the money.  HELOCs usually have a high interest rate, which is charged every month. This can seriously hurt your finances if you let it go on for too long.

What Is a Home Equity Loan?

What is an equity loan? According to the National Association of Realtors, an equity loan is a loan funded by your house. If you borrowed against your house when you bought it, the bank lent you the money to buy the house and the house was valued at the time of purchase. Because the house was purchased with the loan, the bank gives you the money that you can use to buy other real estate (such as another home or investment property) or to cover operating expenses like property taxes, insurance, etc. If the house’s value has increased since the loan was issued (because, for example, your house is worth more or your family has grown) the bank will give you more money back, so the loan balance will go down.

Homeowners Insurance vs. Renters Insurance

Homeowners insurance typically includes damage to property from fire, natural disasters, theft, and so forth. Renters insurance typically covers loss of property, liability, and medical expenses for people who rent your home. In some states, your landlord will have to provide some sort of renters insurance as well.

In conclusion, we can assist you with your needs moving forward. An investment property mortgage is a type of mortgage that is used by investors to purchase real estate for the purpose of renting it out. Most investors who take on this type of mortgage do so with the intention of making a profit, rather than to live in the property themselves. This means that the investor receives a monthly income from rent and any other taxable benefits or perks connected to ownership, such as tax deductions for depreciation and capital gains. One of the most common reasons that people purchase investment properties is because they believe they can make more money from renting them out, rather than keeping them as their own personal residence.

We here at Capital Mortgages look forward to assisting you with Ottawa mortgage needs. Contact us today by calling us at: 613-228-3888 or email us direct at: info@capitalmortgages.com

You can use these links to APPLY NOW or CONTACT US.

You can also click here.

Tips for Buying a Home in Ottawa with Capital Mortgages

Buying a Home in Ottawa Tips

Tips for Buying a Home in Ottawa: What to Consider and How to Prepare

Capital Mortgages in Ottawa. We understand that today’s consumer is looking for optimum mortgages with minimum inconvenience, lower borrowing costs, sustainable peace of mind, and increased personal wealth by becoming mortgage free sooner. Let us help you with buying a home in the Ottawa area.

What to Consider when Buying a Home in Ottawa

Before buying a home, do some research, make a plan, and research the area.  In order to successfully buy a home in Ottawa, first consider what kind of home you want to buy. Different home types exist, from townhouses to detached homes, to condo apartments.

Investigate what all of these home types have in common, and the things you want to take into consideration when purchasing any of these home types. For example, many homes in Ottawa are attached to garages, and the location of the garage is not always the highest consideration in the purchase of a home, but it is vital to finding a home that suits your needs.

While selecting a home, many considerations come into play: location, home size, home style, monthly payments, number of bedrooms, and number of bathrooms.

How to Prepare for Buying a Home in Ottawa

You will find that buying a home in Ottawa is a complex process – like a building process, purchasing a home is a commitment. So, it’s very important to learn about the process from different perspectives and to be well-informed before making the final purchase.

Know what you are looking for, be realistic about your budget, and prepare to put together the documentation required before you commit to the purchase.  The above factors are vital to become a successful homebuyer in Ottawa and will ensure that you are giving yourself the best possible chance to purchase a property that is a good fit.

Getting the Lowdown on Ottawa. Buying a house is one of the most exhilarating feelings that you can ever have.

What to Consider when Buying a Home in Ottawa

Know the Difference Between a Buyer’s Market & a Tight Market. When purchasing a home in a strong real estate market, there is increased demand, higher prices and an increased number of buyers who can qualify. In a tight real estate market, it is very difficult to secure a mortgage and the competition is especially fierce. Sellers in a tight market will negotiate hard for a much higher selling price because there is a surplus of buyers willing to pay over asking price.

However, the opposite is true in a seller’s market. Factors to Consider when Buying a Home in Ottawa. Your income is relatively stable. If you aren’t sure if you have enough money to cover the down payment, keep an eye on your bank statements or income tax returns.

Location

We believe Ottawa will continue to attract successful people from all over the world, including highly educated professionals and highly skilled workers. More and more people are taking advantage of our educated workforce to live here, raising their families, buying homes, and investing. Ottawa’s transit system, in combination with amenities like our green spaces, trails, bike lanes and great amenities like schools, shopping, dining and entertainment, attract people to the Ottawa area.

Our area is also one of the best places to get away in the summer. It is perfect for camping, water sports, walking and outdoor activities.  Most people’s taxes are still among the lowest in Canada.

Neighborhood

Our mortgage experts understand that the value of a home often depends on the surrounding neighbourhood. This is one of the main reasons why the Federal Government introduced the National Housing Strategy that will support over 500,000 affordable housing units and repair and build 400,000 more over the next 10 years. At Capital Mortgages, we are ready to act now to provide mortgage financing to home buyers within our area.  Things to Consider Before Buying a Home in Ottawa.  With that being said, let’s explore some of the factors to consider before purchasing a home in Ottawa.

Proximity to schools

Since we are located right in the heart of Ottawa, we have the benefit of having many elementary schools right on our doorstep for the kindergarten to grade 12 classes. That said, there are also many private and other good quality high schools in close proximity for students that have aspirations to go to university. Some private schools are in downtown Ottawa as well.

However, there are many parents who opt to enroll their child in our extremely good local public school system and they feel confident that they will have good teachers, access to a good arts curriculum, and other benefits.  Vacation time.  We can also recommend travelling to a lot of vacation spots in the Ottawa area and other parts of Canada.

Proximity to work

When you’re not working, you’re probably travelling to and from your place of work (either by foot or public transportation), meaning you’re not paying for parking.  Finance a home in a more affordable area? Better still, is it near your place of employment, allowing you to make the most of your monthly wages?

This can save you lots of money every month, while offering additional peace of mind knowing that your payments are being made efficiently.  You may be tempted to go for a location close to Ottawa’s downtown core (such as Orléans or Kanata), but that’s not always the smartest move. Many believe the money you’ll save at the outset will allow you to make an investment into a better home for future growth. However, consider your time cost.

Style of home

Whether you buy a new build or a resale, the style of home you select to live in has a strong influence on what you are able to purchase. The age of the home itself can also be a factor in the cost of a mortgage. A number of old homes in the downtown core are becoming available to buy, and for the right buyer the homes may well be relatively inexpensive.  Budget for a house you can live in.  You should budget for a house that you can easily fit your family in, but not so large that the mortgage is unaffordable.  Cash Flow.  Prepare your financial affairs to accommodate your needs for an affordable mortgage. For example, if you already have a rental property, perhaps you have another source of income.

How to Prepare for Buying a Home in Ottawa.

Choose a Mortgage Advisor.

Get your Credit Score

Obtain your Financial Records

Meet with a Mortgage Broker here at Capital Mortgages

Conclusion

We here at Capital Mortgages look forward to assisting you with Ottawa mortgage needs. Contact us today by calling us at: 613-228-3888 or email us direct at: info@capitalmortgages.com

You can use these links to APPLY NOW or CONTACT US.

You can also click here.

Tips for Buying a Home with a Mortgage Broker

What a Mortgage Broker Does

What a Mortgage Broker Does: Tips for Buying a Home

Capital Mortgages Inc is an independent brokerage in the Mortgage Centre Canada Network and one of Ontario’s leading real estate mortgage brokerages with offices in Ottawa and the valley.

What a mortgage broker does

The role of a mortgage broker is to find and guide you to the mortgage loan that best suits your needs and goals.

The main function of a mortgage broker is to market a variety of mortgage products, including fixed-rate mortgages, variable-rate mortgages, and home equity lines of credit. The mortgage broker is an independent individual who acts as the middleman between you and your lender.

You can choose to pay someone to help you find the best mortgage and real estate agent for you or you can do it yourself. The difference in cost is about $20 – $30 for every service. However, there is also a cost associated with navigating your mortgage. For example, you might not be familiar with all the terms and may need help understanding certain nuances.

Mortgage brokers work with many lenders

By working directly with many lenders in your specific field, your mortgage broker has a better chance of getting you the lowest mortgage rate and avoiding unnecessary fees.

Their greatest benefit: A higher approval rate

In Canada, 97 per cent of Canadians are approved for mortgage loans. The conventional industry average is 84 per cent.

Think of the mortgage broker as your personal ambassador to your lender.

They understand your finances and will negotiate on your behalf.

Here are the top factors your mortgage broker should take into consideration before giving you a quote:

  • Lender portfolio
  • Your credit score
  • Payment history
  • Income
  • Debt to income
  • Pensions and savings
  • Home value

A broker will explain your options

A good broker will not only explain the choices you have but also ask you questions, both to inform you of the best option and to get to know you better. A good broker will listen to your concerns, and needs, and tell you where you’re wrong. It is important that you feel comfortable with your broker, so make sure you ask him or her questions that you may not otherwise bring up with a vendor.

Choose the right mortgage broker

There are a number of factors to consider when looking for the right mortgage broker. For example, the time of the year when you need a mortgage can affect how quickly they can get you the paperwork done, so a summer month will give you more time for when you’ll need the funds.

Choose the right mortgage for you

As your mortgage broker, we are able to help you navigate the mortgage lending process to help you get the most for your money. Our expert team of mortgage brokers are trained to meet your needs and guide you through all aspects of the home buying process, so you can quickly and easily buy your dream home or business, purchase or refinance your mortgage and be on your way to home ownership.

Life is all about choice – When it comes to mortgages, you have the freedom to choose a mortgage that fits your current financial situation. We can help you find the mortgage that best suits your needs. Our mortgage brokers are here to guide you through the entire process – from meeting with lenders to finalizing the purchase or refinance your mortgage.

We here at Capital Mortgages look forward to assisting you with Ottawa mortgage needs. Contact us today by calling us at: 613-228-3888 or email us direct at: info@capitalmortgages.com

You can use these links to APPLY NOW or CONTACT US.

You can also click here.

Ottawa Mortgages: Best Options

Ottawa Mortgages: A Guide To The Best Mortgages in Ottawa

Capital Mortgages Inc is an independent brokerage in the Mortgage Centre Canada Network. Is one of Ontario’s leading real estate mortgage brokerages with offices in Ottawa and the valley.

What is a mortgage?

Mortgage is a long-term financial obligation for borrowing money to fund the purchase or construction of a home. It is a contract between the lender and the borrower, involving the payment of a lump sum that is then repaid over time with monthly instalments. The way mortgages work is that a mortgage provides a short-term loan (for example, 3 months), and an obligation for a payment each month, which can be paid back in full (cash) or be repaid with a combination of property taxes, interest, property insurance, property management fees and any property maintenance charges. The term of the mortgage is either 15, 20, 25 or 30 years.

How does a mortgage work?

Every mortgage is different, but most Canadian mortgages come in three forms.

1. the home-equity line of credit (HELOC)

2. a traditional mortgage (loan)

3. a government loan

1. the home-equity line of credit (HELOC) This is the most common form of mortgage and is also known as an equity line of credit (ELC). Most home owners use a HELOC to bridge the gap between paying off high-interest debts and buying a house. Often, homeowners use an ELOC to save for retirement. Your HELOC is most commonly used to pay off credit cards, high-interest debt such as car payments, or low-interest debts such as education loans. Most HELOCs have a fixed interest rate and will roll over from month to month.

How much do I need for a down payment?

The first step in applying for a mortgage is determining how much you will need for a down payment. To determine how much down payment you need, use the Bank of Canada’s formula of 3.34% of the home value up to a maximum of 20%. For example, if the home is worth $300,000, and you want a mortgage for $275,000, you’ll need to save $12,500 to make that possible.

When deciding what down payment to put down on a home, consider these three factors:

  • Can I afford it?
  • If you are unemployed and looking for a job, can you afford to save up for a home?
  • If you need to save for your family’s future needs, a large down payment may not be best for you. How long will I need it?

The number of years that you will need your mortgage will be calculated based on your income and personal circumstances.

What kind of mortgage should I get?

The mortgage should be the first mortgage you take out. This is the best option to establish credit history, especially if you have a history of paying your credit card bills in full every month. This kind of mortgage requires no cosigner, just you and your bank. While cosigners are great for establishing credit, they may put a strain on your finances. Home owners may also opt to take out a mortgage with their spouse or partner, in which case there is no need for a cosigner. However, because the credit and the debt should be the same, a cosigner is still preferred. The other option is to take out a mortgage by yourself with the help of a trusted and trustworthy cosigner. What kind of mortgage can I get?

Which Ottawa Mortgages are the best?

It is an impossible question to answer definitively as there are so many great Ottawa Mortgages that offer different features. We offer great service and a nice variety of mortgages with different rates and down payment amounts. Our goal here is to get you the best overall solution for your Ottawa home purchase.

Mortgage rates and fees

When it comes to assessing a mortgage for a client, it is always worth taking into account the various fees associated with taking out a loan. In the end, the lender’s view of the fees and interest rate must take both into account to arrive at a fair agreement for the client and the lender. According to a report by the Bank of Canada, people who are planning to buy a home need to brace themselves for a sharp rise in interest rates. That means homebuyers will have to make some tough choices when it comes to choosing a mortgage. Prices have been skyrocketing in the Greater Toronto Area and across the country.

Conclusion for Ottawa Mortgages

The list provided here are only a few of the many qualified real estate professionals in Ottawa, Canada. Knowing the right real estate professional to help you through the mortgage process can make all the difference. With that in mind, contact Capital Mortgages Brokers to get a free initial consultation. For more information, contact us today!

We here at Capital Mortgages look forward to assisting you with Ottawa mortgage needs. Contact us today by calling us at: 613-228-3888 or email us direct at: info@capitalmortgages.com

You can use these links to APPLY NOW or CONTACT US.

You can also click here.