How To Buy A House in Ottawa Capital Mortgages Ottawa

How To Buy A House in Ottawa

How To Buy A House in Ottawa: The Comprehensive Guide

Whether you’re starting a family, your career is taking off, or you just want to get out of the rental market, buying a house is a major step. There are many things to consider: how much can you afford? What kind of house are you looking for? How do you know if it’s the right time to buy?

Before we get into the nitty gritty, let’s answer some basic questions about buying a home in Ottawa. From understanding the mortgage process and making an offer on a house to getting pre-approved for a mortgage and everything in between, this guide is here to help!

Buying A House In Ottawa: The Basics

Before you start looking, it’s important to understand the basics.

  • Do I need a mortgage pre-approval?
  • What’s the difference between a fixed and variable mortgage?
  • What are my other housing options?

These are just some of the questions that we answer in this article. Read on for all the details!

Getting Pre-Approved For A Mortgage

If you’re a first-time home buyer, getting pre-approved for a mortgage is a good way to feel more confident about your purchase. Pre-approval means that you have gone through the process of getting approved for a mortgage from one or more lenders and have been given an estimated value of how much money you can spend on a house.

Benefits of pre-approval:

  • You are able to make an offer on a house with confidence
  • You are able to compare listings, knowing how much you can borrow
  • It may take less time to get approved as you already have most of the information they will need
  • You will know what allowance your bank has set aside for you

How do I find out if I’m pre-approved?

Your potential lender should be able to tell you whether or not you’ve been pre-approved for a mortgage as soon as you submit all of your documentation. Keep in mind that some lenders may require that your current income, assets and liabilities are still accurate at the time of application. If this is the case, make sure to update them before sending any documents in.

Home Inspection

A home inspection is a professional, independent examination of the house you’re considering buying. It will help you find any faults in the property, including hazardous materials and structural problems. You’ll also need to hire a home inspector if the seller won’t let you into the house or if you want to make sure that it’s been well maintained over the years.

What’s Next?

So, you’ve read this guide and you’re at the point where you’re ready to take your first step. If you want help with every aspect of buying a home in Ottawa, give us a call! We’ll make sure that your needs are met and get you into an Ottawa home that’s perfect for you.

Conclusion

Buying a house can be a daunting task and one that should not be taken lightly. After reading this article, you should have a better understanding of the process and a few of the considerations that need to be made when buying in the Ottawa region. There are many factors to consider, but armed with the right information, you will be confident in your purchase.

A comprehensive guide to buying a house in 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.

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Pre-Qualified & Pre-Approved Mortgages Capital Mortgages Ottawa

Pre-Qualified & Pre-Approved Mortgages

What’s The Difference Between Pre-Qualified and Pre-Approved Mortgages?

With all of the home buying trends and changes in the mortgage industry, it can be hard to understand if you’re pre-approved for a mortgage or if you’re pre-qualified. To make things easier, we’ve broken down the differences between these two terms and what they mean for your home buying process.

Pre-Qualified: When you apply for a loan with a lender, they will likely offer to pre-qualify you. This means that the lender has run some basic information through their system to see if they can give you an approximate interest rate. You may not know this exact number, but it will at least give you an idea of what range your budget would fall in.

Pre-Approved: If you are pre-approved for a loan, this means that the lender has looked at your entire loan application and determined that there is no reason why they can’t approve your application. They have done everything necessary to give you the best.

Pre-Qualified vs. Pre-Approved

At first glance, you might think that pre-qualified and pre-approved are one in the same. But there is a major difference between these two terms.

Pre-Qualified: When someone offers to pre-qualify you for a loan, they are giving you an approximate interest rate based on some basic information. You will not know this exact number, but it will give you an idea of what range your budget would fall in.

Pre-Approved: If you are pre-approved for a loan, this means that the lender has looked at your entire loan application and determined that there is no reason why they can’t approve your application. They have done everything necessary to give you the best.

What Are the Differences Between Pre-Qualified and Pre-Approved?

Essentially, pre-qualification is just a preliminary assessment of whether or not you would be eligible for a mortgage. It doesn’t actually mean that you are 100% approved for the loan you are requesting.

Pre-approval is when the lender has looked at your entire loan application and determined that there is no reason why they can’t approve your application. This means they have done everything necessary to give you the best rates and terms available on the market.

If you want to know what you’re really getting into before signing on with a lender, it’s best to get pre-approved first!

What are the Advantages of Being Pre-Approved?

There are a few advantages to being pre-approved for a loan.

First, once you’re pre-approved, the lender will take care of most of the paperwork. This can be a huge time saver for you.

Second, once your application is approved, the lender will issue you an offer letter that includes all of the information about your loan application and interest rate. It’s important to have this information handy when you are ready to start looking at homes so that you know what you are able to afford.

Third, if your credit score has gone down or if there are any other changes in your financial situation, it may affect whether or not you are still eligible for a mortgage. If this happens, lenders can decide to “re-evaluate” your pre-approval status and see how it would affect the terms of your loan before issuing an approval or denial decision.

Ultimately, being pre-approved is beneficial because it allows for less paperwork on both sides and gives buyers time to find their dream home without worrying about how much they can afford upfront.

What are the Disadvantages of Being Pre-Approved?

It’s common to be pre-qualified for a mortgage before you can get pre-approved. This is because of the extra time, effort, and paperwork that goes into getting pre-approved.

The disadvantages of being just pre-qualified are that this isn’t always accurate. For example, if your credit score changes or you have new information on your income, this means your loan application may not be accepted when it is reviewed again by the lender.

On the other hand, there are advantages to being pre-approved over being just pre-qualified. When you are approved for a loan, the lender has already done everything they need to give you the best rate possible on your mortgage. You also know that the lender will definitely approve your application if all your information checks out.

With all of these home buying trends happening, don’t forget to contact Sligo Mortgage about whether you’re qualified for a mortgage!

Conclusion

Home ownership is everyone’s dream. But buying a home is not for everyone, and it’s important to understand what you’re getting yourself into before you sign on the dotted line.

Are you considering buying a house? Do you want to know more about pre-qualified vs. pre-approved mortgages?

Being pre-approved is a lot like being pre-qualified. It means a lender has looked at your credit history and income, and thinks you’re eligible for a loan. But there’s one major difference between pre-approved mortgages and pre-qualified mortgages: being pre-approved means you’ve been approved for a specific mortgage, while being pre-qualified means the lender is just interested in seeing your application.

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.

What's The Difference Between Good Credit and Bad Credit? Capital Mortgages Ottawa

Good Credit and Bad Credit

What’s The Difference Between Good Credit and Bad Credit?

Credit is essential for almost every aspect of life these days. It’s a way to borrow money from lenders in order to buy a home, get a loan to start your own business, or even try and fix your credit. In order for you to have the best possible chance at getting loans, it’s important that you have good credit. Here are some of the differences between good credit and bad credit.

What is good credit?

Good credit is defined as having an excellent history of paying back debts on time. You may have good credit if you never had any late payments or missed payments.

With this type of credit, you are able to secure loans for larger amounts of money and can be approved for a mortgage loan. You’ll also be able to get lower interest rates and sometimes even a better interest rate than someone with bad credit.

The best way to get good credit is by keeping track of your monthly statements and following the rules in them. Your bank will typically send you a statement every month that shows your balance, payment history, and when your next statement will be sent out. To ensure that you have zero late payments in the future, it’s best to keep up with these statements as often as possible.

If you’re worried about not being able to pay off all the debt in your name, don’t worry! There are other ways that you can improve your credit so that lenders will trust you more. If you’re struggling with debt issues, consider speaking to a financial advisor. They offer free counseling services for those who need help managing their finances.

What is bad credit?

Bad credit is a term used by banks to indicate that you have a history of missed payments which would make lenders hesitant to lend you money. Bad credit can happen for a variety of reasons, some of which are outside your control. If you’re having trouble repairing your bad credit, there are certain steps you can take to help improve the situation.

Ways to Improve Your Credit

In order to improve your credit, it’s important that you do what you can within your control. Some things include paying off debt, making on-time payments, and using your credit wisely.

First things first: Get rid of any bad debts that are hanging over your head. If there’s something like a medical bill or an old car payment that you’re still trying to pay off, work on getting it resolved before starting anything else. Paying off debt will increase your chances of getting loans in the future because it shows lenders that you’re responsible with money and have the ability to handle them responsibly.

The difference between good and bad credit

So what is good credit? Good credit means that you have positive “hard” and “soft” information in your credit report.

Here are some of the different types of information in your credit report:

  • Credit score
  • Payment history
  • Credit inquiries
  • Debt-to-income ratio
  • Total revolving debt
  • Length of credit history

Soft information, like payment history, is a little more subjective than hard information, but it’s still an important part of your report. If you pay all your bills on time, then you’re likely to get better rates on loans. But if you’ve been late with a payment or had multiple late payments in the past six months, this will show up on your report as well. This information can also show up as negative soft info and could affect your credit score.

The differences between fair, excellent, and perfect credit

Credit is defined by the company that provides it, but generally speaking there are three different types: fair, excellent, and perfect.

Fair credit means you have a FICO score of less than 660. Excellent credit means you have a FICO score of more than 760. Perfect credit means you have a FICO score of 850 or higher.

There are some factors that will affect whether your credit is considered fair, excellent or perfect. The main difference between fair and excellent is how long you’ve been using credit–the longer the better. For example, using credit for six years would be considered excellent while using it for three years would be considered fair.

Some other factors that affect how good your credit is include:

  • Your payment history
  • Your SIN has been verified
  • Your income has been verified
  • Your employment history has been verified
  • Any liens on your property (mortgages) are clear and current
  • Any judgments on your behalf are clear and current

If you want to improve your chances at getting loans in the future, make sure that all of these factors have been completed properly before applying for any loans!

How to improve your credit.

While some people will be able to improve their credit by spending less and saving more, others may find that there are no feasible solutions. That said, there are still ways to improve your credit without going into debt.

Here are six tips for improving your credit score:

  • Pay your bills on time and in full
  • Keep the amount of debt you carry low
  • Never miss a payment
  • Don’t carry too many cards or open too many accounts
  • Close old accounts that you no longer need or use regularly
  • Pay down any high interest debt

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 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.

Commercial Mortgages Ottawa from Capital Mortgages

Commercial Mortgages: Ottawa

Commercial Mortgages Ottawa: The Basics

Small Commercial Mortgages are designed for small businesses or investors that would like to purchase or refinance commercial real estate. As one of Canada’s largest brokerages for commercial property, we can tailor a financing solution to meet your financing needs.

What is a commercial mortgage?

Firstly, a commercial mortgage is a loan taken out to purchase or refinance a commercial property. The type of commercial property is determined by the lender. Larger businesses will be covered by a mortgage that allows them to receive funds more easily.

What is a residential mortgage?

Secondly, a residential mortgage is a loan taken out to purchase or refinance a residence, such as a home or condo. The type of home is determined by the lender. Larger families and growing families will have a greater demand for a residential mortgage.

The Benefits of Commercial Mortgages in Ottawa

Why are commercial mortgages good?  Higher Returns for Income Portfolio.  The most significant advantage of commercial mortgages is the significant income potential. These can include between 5% to 12%+ of the mortgage profit from current interest rates, paid in addition to income from other forms of financing.

Some of the features of these deals include payment structures which allow you to “pay down” principal over a period of time or varying lengths of time and in some cases even earn a modest return on your investment. The amount of income earned is dependent on your credit score and debt service ratio, which are two factors you can reduce via repayment plans or loan modifications.

Key Considerations

Can a self-directed investor afford the required amount of equity?  Will property they are purchasing meet your desired risk appetite?  Are you able to meet your tax obligations on an annual basis?  Is it in a location you are comfortable with?  Where can you find more information?  Commercial property is not without its risks and liabilities.

Whether you are buying a commercial property or refinancing one, there are many factors to take into account and be aware of. There are some important factors that need to be addressed before a decision to buy a commercial property can be made. This post will explain some of these factors, including:  Evaluating the risks involved with buying or refinancing a commercial property.

Costs Associated with Commercial Mortgages

Most small commercial mortgages are issued by banks, which usually charge a premium of up to 5%. A large number of banks operate with a traditional mortgage format. For this reason, many lenders usually require borrowers to provide three to four years of security and their guarantor’s guarantee for the full amount of the loan.  Commercial property loans require a “qualification” process, which includes an assessment of your commercial properties, your cash flow, your credit history, and your income.

In summation, rates are on the way up and will be for some time. This will impact residential mortgage holders that rely on their credit rating. As credit conditions tighten, borrowers will need to show they are in a better position to make their mortgage payments. If rates continue to increase, this could impact our ability to lend money to our customers.

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.

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.