Conventional Mortgages and Downpayment Requirements

Understanding Conventional Mortgages and Downpayment Requirements in Canada

Conventional mortgages are one of the most popular types of home loans available today. They are typically used by borrowers who have good credit and a steady income. But one of the most important factors in getting approved for a conventional mortgage is the downpayment, for that the understanding of conventional mortgages and downpayment requirements in Canada is very important.

Downpayments

A downpayment is the amount of money you need to put down in order to purchase a home. The size of the downpayment is determined by the lender, and it typically ranges from 5-20% of the purchase price of the home. The larger the downpayment, the less risk to the lender and the easier it is to get approved for the loan.

Downpayments in Conventional Mortgages

When it comes to conventional mortgages, the amount of the downpayment you need to make will depend on a few factors. These include your credit score, the size of the loan you are requesting, and the type of property you are purchasing.

Generally, if you have a higher credit score and are looking for a larger loan, you will need to make a larger downpayment.

For example, if you have a credit score of 700 or higher and are looking for a loan for $400,000, you may need to make a downpayment of at least 10%.

However, if you have a credit score of 700 or higher and are looking for a loan for $200,000, you may only need to make a downpayment of 5%.

Making a larger downpayment can make it easier to get approved for a conventional mortgage, but it is not always necessary. There are a few other ways to make the process easier. These include having a large amount of cash available or having a cosigner who is willing to back your loan.

No matter what type of mortgage you are looking for, it is important to understand the downpayment requirements and how they may affect your loan. With a conventional mortgage, the size of the downpayment is determined by the lender, and it generally ranges from 5-20% of the purchase price of the home. The larger the downpayment, the lower the risk to the lender, and the easier it is to get approved for the loan.

However, there are a few other factors to consider when it comes to conventional mortgages and downpayments in Canada.

Factors to Consider on Conventional Mortgages and Downpayments

The Difference Between High-Ratio Mortgage and Conventional Mortgage

First, it’s important to understand the difference between a high-ratio mortgage and a conventional mortgage. A high-ratio mortgage is one where the downpayment is less than 20% of the purchase price of the home. In this case, the lender will require mortgage default insurance, which is also known as CMHC insurance. This insurance protects the lender in the event that the borrower defaults on their mortgage.

On the other hand, a conventional mortgage is one where the downpayment is 20% or more of the purchase price of the home. In this case, the borrower is not required to purchase mortgage default insurance. This means that the lender is taking on more risk, and as a result, the borrower may be required to make a larger downpayment in order to offset this risk.

It’s also worth noting that in some cases, the lender may require a larger downpayment even if the borrower has a high credit score and is looking for a smaller loan. This may be the case if the borrower has a high debt-to-income ratio or if the property being purchased is in a less desirable location.

THE HBP

Another factor to consider when it comes to conventional mortgages and downpayments in Canada is the Home Buyers’ Plan (HBP). This is a program offered by the Government of Canada that allows first-time home buyers to withdraw up to $35,000 from their registered retirement savings plan (RRSP) to use as a downpayment on a home. This can be a useful way to come up with the necessary funds for a downpayment, especially for those who may not have a lot of cash available upfront.

Long Term Benefits of Larger Conventional Mortgage Downpayment

Finally, it’s worth considering the long-term benefits of making a larger downpayment on a conventional mortgage. While it may be tempting to put as little money down as possible in order to keep your monthly payments low, it’s important to remember that a larger downpayment can ultimately save you money in the long run. This is because a larger downpayment means you will have to borrow less money, which means you will pay less in interest over the life of the loan.

Conclusion

In conclusion, conventional mortgages are a popular choice for home buyers in Canada, and the size of the downpayment is an important factor in getting approved for a loan. While a larger downpayment may make it easier to get approved, there are other options such as having a cosigner or using the Home Buyers’ Plan to come up with the necessary funds. It’s important to carefully consider the long-term benefits of a larger downpayment and how it may affect your overall loan and financial situation.

Are you ready to take the first step towards securing a conventional mortgage for your dream home? Contact Capital Mortgages today! Our team of experienced mortgage brokers will work with you to find the best mortgage solution to meet your needs. Whether you have a high credit score and are looking for a large loan, or you are a first-time home buyer with questions about the Home Buyers’ Plan, we can help. Don’t wait any longer to start the process of becoming a homeowner. Contact Capital Mortgages today and let us help you make your dream a reality.

 

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.

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The Pros and Cons of Fixed vs. Variable Mortgage Rates

The Pros and Cons of Fixed vs. Variable Mortgage Rates

When it comes to choosing a mortgage, one of the first decisions you will need to make is whether to go with a fixed-rate mortgage or a variable-rate mortgage. Both types of mortgages have their own unique set of pros and cons, and it’s important to understand the differences in order to make an informed decision. Here is a breakdown of the pros and cons of fixed vs. variable mortgage rates.

Pros and Cons of Fixed vs. Variable Mortgage Rates

Pros of Fixed-Rate Mortgages

As the name suggests, a fixed-rate mortgage has an interest rate that remains fixed over the term of the loan. This means that the borrower will know exactly what their monthly payments will be for the duration of the mortgage. Some of the pros of a fixed-rate mortgage include:

  • Predictability: Because the interest rate remains fixed, the borrower knows exactly what their monthly payments will be and can budget accordingly. This can be especially beneficial for those who are on a fixed income or who have a strict budget.
  • Stability: A fixed-rate mortgage can provide stability and security, especially in times of economic uncertainty or when interest rates are volatile.
  • Potential for lower rates: Fixed-rate mortgages may offer lower interest rates compared to variable-rate mortgages, especially if the borrower is willing to commit to a longer term.

Cons of a fixed-rate mortgage include

  • Lack of flexibility: Because the interest rate remains fixed, the borrower is unable to take advantage of lower interest rates if they become available.
  • Potential for higher rates: Fixed-rate mortgages may offer higher interest rates compared to variable-rate mortgages, especially if the borrower is willing to commit to a shorter term.

Pros of Variable-Rate Mortgages

 A variable-rate mortgage, also known as a floating-rate or adjustable-rate mortgage, has an interest rate that can fluctuate over the term of the loan. The interest rate is typically tied to a benchmark such as the prime rate, and the lender has the right to adjust the rate based on changes in the benchmark. Some of the pros of a variable-rate mortgage include:

  • Potential for lower rates: If interest rates go down, the borrower may be able to take advantage of lower monthly payments with a variable-rate mortgage.
  • Flexibility: A variable-rate mortgage may offer more flexibility, as the borrower can choose to switch to a fixed-rate mortgage if interest rates become too volatile.

Cons of Variable-Rate Mortgages

  • Lack of predictability: Because the interest rate can fluctuate, the borrower may not know exactly what their monthly payments will be, which can make budgeting more challenging.
  • Potential for higher rates: If interest rates go up, the borrower may be faced with higher monthly payments with a variable-rate mortgage.
  • Risk of default: A variable-rate mortgage may be more risky, as the borrower could potentially default on their mortgage if the interest rate becomes too high.

It’s important to keep in mind that both fixed-rate and variable-rate mortgages come with their own set of risks and benefits. Choosing the right type of mortgage for your situation will depend on your individual financial needs and goals. If you are unsure which type of mortgage is best for you, consider seeking the advice of a mortgage broker or financial advisor. They can help you compare rates and terms from different lenders and find the mortgage solution that best meets your needs.

What to Choose?

When deciding between a fixed-rate and variable-rate mortgage, it’s important to consider your long-term financial goals and the stability of your income. If you are planning on staying in your home for a long time and have a stable income, a fixed-rate mortgage may be the right choice for you. This is because a fixed-rate mortgage provides predictability and stability, which can be beneficial for those who are on a fixed budget or who have a long-term financial plan.

On the other hand, if you are planning on staying in your home for a shorter period of time or if you have a variable income, a variable-rate mortgage may be a good option. This is because a variable-rate mortgage can offer lower interest rates and more flexibility, which can be beneficial for those who are looking to take advantage of lower rates or who may need to sell their home in the near future.

Conclusion

In conclusion, both fixed-rate and variable-rate mortgages have their own unique set of pros and cons. It’s important to consider your individual financial situation and needs when deciding which type of mortgage is right for you. If you are unsure which type of mortgage is best for you, consider seeking the advice of a mortgage broker or financial advisor. They can help you compare rates and terms from different lenders and find the mortgage solution that best meets your needs.

If you are considering a mortgage and are looking for guidance and support, contact Capital Mortgages today! Our team of experienced mortgage brokers can help you understand the differences between fixed and variable mortgage rates and find the best solution for your needs. Don’t miss out on the opportunity to make informed decisions about your home

 

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.

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First-Time Home Buyer in Canada: 5 Tips You Need to Know!

Buying a home for the first time can be an exciting and overwhelming experience. There are many factors to consider, from finding the right location and type of property to securing a mortgage and navigating the legal process. As a first-time home buyer in Canada, it’s important to be well-informed and prepared in order to make the best decisions for your financial future. Here are five tips to help you get started:

1. Determine your budget and get pre-approved for a mortgage

It’s important to have a clear idea of how much you can afford to spend before you start looking for a home. Take into account your income, debts, and any other financial obligations you may have. You may also want to consider seeking the advice of a financial planner to help you create a budget and plan for your home purchase. Once you have a good understanding of your budget, it’s a good idea to get pre-approved for a mortgage. This will give you a clear idea of the price range you can afford and will make you a more competitive buyer in the market. It will also help you avoid the disappointment of falling in love with a home that you can’t afford.

2. Research your mortgage options

There are many different mortgage products available in Canada, and it’s important to understand the pros and cons of each in order to find the one that best meets your needs as a first-time home buyer. Some options to consider include fixed-rate mortgages, variable-rate mortgages, and high-ratio mortgages. You may also want to consider working with a mortgage broker, who can help you compare rates and terms from different lenders and find the best mortgage solution for your situation.

3. Save for a downpayment

The size of the downpayment you need to make on a home in Canada will depend on the type of mortgage you choose. For a conventional mortgage (one where the downpayment is 20% or more of the purchase price), you will typically need to save at least 5-20% of the purchase price for a downpayment. For a high-ratio mortgage (one where the downpayment is less than 20% of the purchase price), you may need to save as little as 5% of the purchase price, although you will be required to purchase mortgage default insurance in this case. It’s a good idea to start saving for a downpayment as early as possible, as this will not only help you secure a mortgage, but it can also save you money in the long run by reducing the amount of interest you pay on your loan.

4. Find a good real estate agent

A good real estate agent can be a valuable resource for a first-time home buyer. They can help you navigate the complex process of buying a home, from finding properties that meet your criteria to negotiating the purchase price and closing the deal. Look for an agent who has experience working with first-time home buyers and who understands your needs and budget.

5. Understand the legal process

Buying a home in Canada involves a complex legal process, and it’s important to understand what is involved in order to protect your interests. This includes reviewing the purchase and sale agreement, hiring a lawyer to handle the closing process, and obtaining mortgage insurance if required. It’s a good idea to seek the advice of a lawyer or other legal professional to help you understand your rights and responsibilities as a home buyer.

In conclusion, buying a home for the first time can be a daunting task, but it’s also a exciting and rewarding experience. By following these five tips, you can increase your chances of success and find the home of your dreams. If you are a first-time home buyer in Canada, be sure to determine your budget, research your mortgage options, save for a downpayment

If you are a first-time home buyer in Canada and are looking for guidance and support throughout the process, contact Capital Mortgages today! Our team of experienced mortgage brokers can help you navigate the complex world of home financing and find the best mortgage solution to meet your needs. We can help you compare rates and terms from different lenders, understand your budget, and find the right mortgage product for your situation. Don’t miss out on the opportunity to make your dream of homeownership a reality. Contact Capital Mortgages today and let us help you get started on the path to home ownership.

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.

shopping for a construction loan

Shopping for a Construction Loan? Here’s What You Need to Know

Shopping for a construction loan can be an overwhelming process, especially if you don’t know the ins and outs of the process. Construction loans are unique in that they are short-term loans used to finance the building of a home or other structure. As such, they have different criteria than traditional mortgages and require more of a financial commitment from the borrower. If you’re considering getting a construction loan, it’s important to understand the types of loans available, the requirements to qualify, and the repayment process. Knowing the answers to these questions can help you make an informed decision and secure the best loan for your needs. Here’s what you need to know when shopping for a construction loan.

Types of construction loans

There are three main types of construction loans: partial, draw, and full. A partial construction loan is a loan that is completely paid out during the construction period, while a draw construction loan is partially prepaid. A full construction loan, however, is a loan in which no portion of the principal is paid out. The type of construction loan you get will depend on a few things, including the size of the project, the amount of equity you have in the property, and the lender. When shopping for a construction loan, be sure to ask about the different types and determine which one is best for your financial situation.

Qualifying for a construction loan

Since construction loans are generally smaller loans that last for a shorter amount of time, the lender expects a higher risk than with a standard mortgage. As such, the criteria are more stringent, and you will likely need a larger down payment and more equity in the property than with a traditional mortgage. Generally, a construction loan is reserved for borrowers who: Have some equity in the property. This shows that they are financially secure enough to be able to finish the project and repay the loan as promised. Have the financial ability to complete the project. This means they have a reliable way to pay for the materials and labor needed to finish the job. Have the patience to endure a longer process. While traditional mortgages generally only take a few weeks to complete, construction loans often take longer. The average completion time is around four months, so be prepared for some extra waiting.

Construction loan repayment

Because construction loans are short-term loans, you will only have to pay interest on the amount borrowed during the construction period. This means you will likely have to make a larger down payment than with a traditional mortgage. Most construction loan repayment terms last from three months to one year, but you can sometimes negotiate a longer repayment period. Make sure you have a plan in place to pay off the loan as promised, however. Otherwise, you could end up hurting your credit score. If you have trouble making payments, speak with your lender immediately. They may be able to extend your repayment period or offer other options that make it easier to keep up with the loan.

Credit score and income requirements

Generally, a construction loan has a lower credit score and income requirement than a traditional mortgage. You may be able to get a construction loan with a credit score as low as 600 and a relatively low income. However, your ability to repay the loan will be greatly impacted by these lower requirements. In fact, many lenders may deny you a construction loan if your credit score is too low. Credit score and income requirements will vary by lender, so it’s important to talk with a few different ones to get a sense of what you can qualify for.

Closing costs and fees

Construction loans have a lot of fees because they are short-term loans, which are riskier for the lender. As such, you will likely pay fees for an appraisal, title search, and inspections. You may also have to pay for a contractor’s inspection to make sure your contractor is building according to code and with quality construction materials. Be sure to talk with your lender about closing costs, and negotiate if you have the ability to do so. These fees can be added to the loan to make it more profitable for the lender. They might also come in the form of a higher interest rate on the loan, which will make it even harder to pay off.

Applying for a construction loan

Before you apply for a construction loan, be sure you have a plan in place to pay off the loan. You can’t just apply for a construction loan and then decide what you are going to build. You need to know exactly how much you need and have a detailed plan on how to get it done. You’ll also need to have contractor bids and a construction timeline in place. This will help the lender determine how much they’ll lend you and for how long. You may also need to have financing for the materials and equipment needed for the construction project. Be sure to apply for a construction loan as soon as possible. The lender may require that you have financing in place before you break ground, so don’t put it off.

Differentiating between lenders

When shopping for a construction loan, compare the lenders’ terms and options to find the best one for your needs. There are many lenders available for construction loans, and each one has different terms and conditions. You can compare several construction loan lenders by looking at their rates, fees, and terms. It’s also important to consider the lender’s reputation, as you may want to work with someone you trust and respect. It’s also important to consider how the lender can help you. For example, you may want to work with a lender that can provide assistance with your contractor’s permit or inspections.

Working with a loan officer

During the process of applying for a construction loan, you may want to work with a loan officer. Loan officers are the people who work directly for a lender. They can help you determine what type of loan is best for your situation and walk you through the process of applying for one. They can also help you find a lender, compare rates, and negotiate a better deal with existing lenders. Loan officers work on commission, which means they get paid more when you get more. They also have access to a wider variety of lenders than you do as a borrower. This means they can get you better rates, terms, and deals than you’ll find on your own. Loan officers also know the ins and outs of construction loans, so they can help you navigate the process and get your loan approved. If a loan officer makes promises that seem too good to be true, it’s probably because they are. It’s best to work with someone who is straightforward and honest about the process and what you can expect.

Questions to ask the lender

Before you sign on the dotted line, make sure you understand the terms of the loan. This way, you can make an informed decision and know exactly what you’re getting into. Some suggestions for questions to ask the lender include: What is the total amount of the loan? What is the term of the loan? How much is the monthly payment? How much is the origination fee? Will you charge a prepayment penalty? What are the interest rates? Are there any other fees? What is the lender’s rating and reputation? These questions will give you a better idea of the loan terms, and they may help you identify the best lender for your needs.

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.

mortgage options for newcomers

The Best Mortgage Options for Newcomers to Canada

The mortgage process can be daunting for any homebuyer. But it’s even more complicated if you’re a newcomer to Canada. In addition to all the usual considerations like interest rates and amortization periods, new Canadians might also need to research whether they qualify for government-backed mortgage programs. Moreover, newcomers may not have the same credit history as someone who has lived in Canada for several years. Even if your credit is excellent, lenders will want to see that you have an established record of paying rent on time and making other financial obligations before granting you a mortgage. Luckily, there are a few different mortgage options available to new Canadians that make it easier than ever to buy a home. Read on to learn more about these great mortgages and see how much money you can save with the help

What is a Mortgage?

A mortgage is a loan granted by a financial institution to help you buy a house. The bank will provide you with a certain amount of money, which you’ll pay back over the course of several years, with interest. With a standard mortgage, you’ll have to make a down payment of at least 5% of the total house price. However, if you’re a first-time homebuyer and you don’t have a verifiable track record of steady income, you’ll likely have to make a down payment of at least 10%. The rest of the money you need to buy a house will be provided to you as a loan. When you purchase a house, you’ll sign a legal contract called a mortgage agreement. This agreement states that you promise to repay the amount borrowed from the bank plus interest. If you fail, your lender has the right to repossess your house.

CMHC Mortgage

The Canada Mortgage and Housing Corporation (CMHC) is a government-owned corporation that helps Canadian homebuyers finance their purchase. CMHC offers a variety of mortgage programs, including a mortgage designed for newcomers to Canada called the Immigrant Mortgage. This government-backed mortgage program is available to permanent residents, foreign nationals. Even though it’s designed primarily for new Canadians, this mortgage also makes sense for anyone who wants to keep their costs down. Why? Because the CMHC Immigrant Mortgage has one of the lowest interest rates available. Plus, it has a higher loan-to-value (LTV) ratio than other government-backed mortgages, which means a smaller down payment. Let’s say you’re a newcomer to Canada and you’re interested in this mortgage, you’ll need to prove that you make a decent income and have been employed for at least one year. You’ll also need to show that you have a good credit score.

RRSP Mortgage

Like the Immigrant Mortgage, the RRSP Mortgage was designed to help new Canadians get into the real estate market. It’s also a government-backed mortgage. But unlike the Immigrant Mortgage, the RRSP Mortgage is only available to a few select people. To be eligible for this mortgage, you must show that you have a strong credit history and a solid history of meeting financial obligations. Even though the RRSP Mortgage is available only to a select group of people, it’s still a good option to consider. Like the Immigrant Mortgage, it has a low interest rate and a higher LTV ratio than many other government-backed mortgages. Plus, the RRSP Mortgage is relatively easy to qualify for since it doesn’t require a down payment. However, you will have to pay for mortgage default insurance, though it won’t cost as much as the CMHC premium for the Immigrant Mortgage.

The Bank of Canada Option

The Bank of Canada Option gives newcomers to Canada a chance to purchase real estate using funds from their own savings. To do this, you’ll withdraw money from your personal savings account and put it towards the down payment on your home purchase. This is risky, though, because if the value of your savings account drops, you’ll have less money towards your mortgage payment each month. But if your savings account gain value, you’ll have to pay it back. How much money you can withdraw from your savings account depends on a few factors, including how long you’ve been a Canadian resident and your income level.

VA Loan

VA loans can help active and former military personnel, reservists, and their spouses buy a home. A VA loan is a mortgage loan that allows you to finance 100% of the purchase price of a home without any down payment or mortgage insurance. Because VA loans are guaranteed by the U.S. Department of Veterans Affairs, they are a type of government-backed mortgage. If you’re a veteran who served during a time of war or hostilities and you meet the eligibility requirements, you may be able to take advantage of this great mortgage option.

Conclusion

The mortgage process can be daunting for any homebuyer. But it’s even more complicated if you’re a newcomer to Canada. In addition to all the usual considerations like interest rates and amortization periods, new Canadians might also need to research whether they qualify for government-backed mortgage programs. Moreover, newcomers will likely have less credit history than someone who has lived in Canada for several years. Luckily, there are a few different mortgage options available to new Canadians that make it easier than ever to buy a home. The Bank of Canada Option, the VA Loan, and the RRSP Mortgage are all government-backed programs that provide low-cost financing for homebuyers.

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.

You can also click here.

tips for getting organized

7 Tips for Getting Organized When Moving Into a New Home

You’re super excited to move into a new home, but it comes with a catch. You need to pack up your old home and move into the new one in only a few days. So much for that plan of slowly moving things over time. If you have ever moved before, you know how stressful this can be. Packing everything, cleaning, sorting and unpacking are not exactly your favorite activities. But when you add all the other responsibilities of work and life, the situation becomes even more challenging. Fortunately, there are ways to ease the stress and get organized when moving into a new home so that you can enjoy your new space from day one and feel good about it from day one as well as long after that. Here are 7 tips how:

Plan Before You Start Packing

If you have ever been in a rush to pack, you know how chaotic the process can become. You might be tempted to just pack everything, but that simply isn’t a good idea. You need to plan out your packing strategy in a way that best suits your needs and the nature of your items. Here are some tips to get you started:

– Create categories of items – Decide what items go where in your house (e.g. kitchen items, bathroom items, etc.). This will help you create categories of items that you need to pack.

– Create a packing chart – This will help you know what you need to pack and in what order. Make sure you include all the items you need such as bedding and kitchen items.

– Pack like items together – There are many ways to pack your items when you move. If you decide to pack things yourself, it is best to pack like items together so you don’t have to unpack them later.

Start With the Most Important Rooms

Moving is always a great opportunity to make some changes in your home. If you start your packing and organizing with the rooms where you spend the most time, you will get a lot accomplished. In fact, we recommend that you start with your bedroom, bathroom and kitchen. These are rooms where you will spend a lot of time and want them organized to your liking as soon as possible. These rooms also tend to have a lot of stuff that you don’t need or use. These are great rooms to clear out old items and make room for new items that you will use more often. You can also start with the rooms that have the most items that need to be packed. You can pack these items first and be done with them. These rooms can include the kids’ rooms, the garage and the living room or den.

Hire Professional Help

Moving is hard work. There is no doubt about that. If you are in a hurry and/or live in a large home, you should consider hiring professional help. This will help you get done faster and more efficiently. You will also greatly reduce your risk of injury while saving time that you can spend on other important tasks. You can hire help for packing your items, hauling them to the new home and unpacking them. Also, you can hire a cleaning service to help you clean your old home. They will do a thorough job, and you will be free to do what you need to get done. You don’t need to spend a fortune on professional help. You can often find reliable helpers and cleaning service providers at discounted rates. Also, you can use discount services like Man with a Van or Handy.

Create a Moving Checklist

This is a common tip for those who love to be organized and efficient. You can create a checklist that includes all the tasks that need to get done before you move. This will ensure that you don’t miss anything and will make your life much easier. Here are some checklist items that you might want to consider: – Cleaning – Clean your old home thoroughly before you move out to ensure it is in good shape for the next tenants. This will also help you identify what needs to go.

– Packing – Pack your items and mark them clearly so you know what goes where. This will make unpacking a breeze.

– Moving logistics – Organize the moving logistics so that you know exactly when and how everything will happen. This will help you avoid stress and last-minute issues.

– Visiting your new home – Take some time to visit your new home and get familiar with it. This will help you plan how to unpack and organize your things.

– Hiring employees – If you own a business, you need to let your employees know that you are moving. This will help you keep your employees informed and make it easier for them to get to work.

Label Everything

Labeling your boxes and items can help you get things organized. You can also use this to identify areas of the new home where you should store things. This will help you avoid clutter and keep your new home clean and organized. If you have kids, consider labeling areas where they can keep their items. This will help them keep their spaces tidy and organized. You can also consider labeling cabinets and drawers in the new home for an easy way to get organized. If you have a lot of items that need to be labeled, you can use a labeling machine to save time. You can also consider hiring a professional organizer to help you get started with the labeling process.

Set Up a Workspace and Storage Area

You should set up a workspace in your old home where you can pack, organize and clean items. This will help you get things done in a timely manner and keep your house clean and tidy while you are busy with other things. You can set up a clean and safe space in a garage or a room where you can store boxes until it is time to move them to the new home. This will keep things out of sight and make the process much easier. You can also set up a storage space in your new home where you can store items that you don’t need often but that you don’t want to get rid of. This will make it easier for you to unpack the items when you need them. You can store these items in cabinets, on shelves or in boxes.

Only Bring What You Need and Will Use

You don’t need to keep every item that you have ever owned. In fact, it is better to get rid of excess items and only bring what you need and will use. This will help you de-clutter your new home and make it easier to keep tidy and organized. Start by going through all the items that you have packed and get rid of anything that you don’t need. You can also ask yourself if you will use the items in the future. If the answer is no, you don’t need to bring those items with you. You can trash them, donate them or sell them for some extra cash. This will help you declutter your new home and make it easier to get organized.

Conclusion

Moving into a new home is a great time to get organized. You can start with the rooms where you spend the most time and then work your way through the rest of the house. You can create a checklist of tasks to get done, hire professional help and label everything. Take the opportunity to only bring what you need and will use with you to the new home.

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.

You can also click here.

Capital Mortgages specializes as a service-oriented brokerage that prides itself on integrity and maintaining a service level second to none in the industry.

Five Tips For Your First Mortgage

Applying for your first mortgage can be a stressful time. You have got your sights set on your ideal first home, and the only thing that stands in the way of making it yours is the bank’s decision to approve your mortgage request. This can be especially nerve-wracking for those who feel like they might not meet a lender’s criteria or who don’t have a picture-perfect past on paper. To ease your worries, our team here at Capital Mortgages has put together a list of five tried and true tips for successfully securing your first mortgage approval.

Maintain A Positive Credit History

A bank wants to make sure that when they lend you money, you will pay it back. This is not to say that one financial mistake will ruin your chances of approval, but your overall credit history needs to be strong to convince a lender to trust you. Make sure that you’ve paid back or are up to date on all of your payments with your creditors before applying for your first mortgage.

Aim For a Home You Can Afford

A lender will look at your overall financial situation when deciding whether or not to approve your mortgage. Typically, the rule of thumb is that your housing cost shouldn’t exceed 39% of your gross income, and your total debts shouldn’t exceed 44% of your income. Take the time to make sure your financial picture is in line with these numbers before applying for your mortgage.

Work With A Mortgage Broker

Brokers specialize entirely in mortgages – they spend their days negotiating financials with lenders and are well versed in rate options and where to find the best lending source. Working with a broker as opposed to with a bank directly will be one of the best investments you make, both financially and time-wise.

Avoid Sudden Job Changes

Lenders might be wary of applicants who suddenly change jobs eight months or less before applying for a mortgage. If your career move involves a natural progression or promotion, that’s a different story.

Reconsider Borrowing The Maximum Amount

Sometimes you’ll be surprised at how much lenders will be willing to extend to you. Many people get excited by the number they are offered and use this as a gateway to buying a home that’s out of their financial reach. However, what these lenders have not considered when looking at your financials is whether you plan to have children, save for retirement, invest infrequent travel, or take on other investments shortly. Avoid putting a financial strain on yourself and determine exactly how much you can afford to spend on a house before seeing how much you’ve been approved for.

At Capital Mortgages, we’re passionate about helping first-time homeowners through the process of securing their first mortgage. Contact us to learn more about how we can help!

Capital Mortgages specializes as a service-oriented brokerage that prides itself on integrity and maintaining a service level second to none in the industry.

Are You Using Your Home As An ATM?

It’s a trend that’s becoming concerningly popular: Many homeowners are now opting to re-borrow all or part of what they have already paid off on their home mortgages in order to finance lifestyle purchases. While some people are extremely vigilant in managing the implications involved in refinancing their homes, there are still a number of risks to consider when using your most valuable asset as an ATM.

Firstly, pulling cash out of your account to pay for other purchases will only serve to push up your monthly repayments to a higher amount than they previously were. This is a slippery slope, as you never know what kinds of challenges you will face in life that might prevent you from affording these installments. If the payments become too much to handle, you’ll risk losing your most valuable asset: your home.

To paint a clearer picture, your monthly repayments would increase because of the extra costs involved in extending your mortgage. These include a valuation fee and legal fees. If you don’t have the extra finances to cover these costs and choose to add them to your overall debt, you will risk paying interest on them over the lifetime of your loan.

Of course, some of us will be extra responsible and will manage to pay back all the equity taken out on our homes within a short period to avoid interest charges. However, too many people end up viewing their home’s equity as a savings account and dip into it to pay for lavish purchases like vacations, aesthetic upgrades, or new cars. In this sense, they begin to treat their homes as an ATM and are unprepared for the onslaught of additional charges that comes along with doing so.

Always keep in mind that home equity is not a tangible concept until you sell your house. Until you do, equity is only a perception of your home’s current value. The only way to eventually monetize it is to either sell your property or take on additional debt and interest.

Interested in learning more about the risks behind refinancing your home? Hop on a call with one of our Capital Mortgages brokers today. 613-223-3888

Capital Mortgages specializes as a service-oriented brokerage that prides itself on integrity and maintaining a service level second to none in the industry.

Meet the Founders of Capital

We believe that buying a home is one of life’s most memorable experiences. Everyone who works on the team at Capital Mortgages is here because we are passionate about helping people own their dream home! This week, we want to introduce you to the Partners at Capital Mortgages.

Stefan Krepski, Owner, Capital Mortgages

 

Stefan Krepski co-founded Capital Mortgages over 20 years ago! In January 1999, he and his partners united to provide strategic advice in arranging suitable mortgage financing for purchases, refinances, construction and switch mortgages. Today, they continue to help Ottawa residents with residential and commercial financing. Stefan’s stands by his motto: “We get you the right financing, from the right lender, at the right rate!” Stefan has a degree in History from Carleton University and lives with his family here in Ottawa.

 

Learn more about Stefan here: https://www.mortgageweb.ca/stefankrepski

 

 

Po Krepski, Owner, Capital Mortgages

 

Po co-founded Capital Mortgages after graduating from Carleton University with a Bachelors in Commerce and Finance. She works hard to make sure her clients get what they have come in for and is renowned in Ottawa for her incredibly strong work ethic, reliability, and honesty with clients. Po lives by her motto: “I save you money by sourcing the best products at the best rates – not only on your first mortgage but on every subsequent renewal”.

Learn more about Po here: https://www.mortgageweb.ca/pokrepski

 

 

Richard Morgan, Owner, Capital Mortgages

 

Richard Morgan has devoted 28 years to helping people from all walks of life with their mortgages. He co-founded Capital Mortgages with his partners over twenty years ago and has since represented thousands of clients surpassing billions of dollars in mortgages with a team of over fifty incredible mortgage agents in Ottawa. His motto is “to get our clients the Best Possible Mortgages that they qualify for through fast, professional and personal service”. Richard is a member of the IMBA, CIMBL, BBC and is a nationally recognized Accredited Mortgage Professional, the experts on call guest at CFRA and the recipient of the Chairman’s award in 2016 and 2017. He lives at home with his wife and two children, to whom he credits his success.

Learn more about Richard here: http://www.mortgageweb.ca/richardmorgan

 

Get to know our mortgage brokers more personally by scheduling an appointment with them to discuss your mortgage goals and learn how we can make them come true. Contact us now.

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.

How to Choose a Mortgage Broker

Mortgage brokers are independent, trained professionals licensed to represent you and provide you with honest unbiased mortgage advice. Due to their experience and connections within the mortgage industry, mortgage brokers have the knowledge required to present a proposal for financing to lenders in the best way possible to successfully obtain mortgage financing. Your mortgage broker represents you, not the mortgage lender, and will shop the market to help you secure the most favourable financing suited to your individual needs. This will save you both time and money! Here are some tips on how to choose a mortgage broker:

 

Start your search

Before meeting with a mortgage broker, do some research. Go online and search different websites for brokers in your area, ask friends and family for referrals, and check social media accounts to see which brokers are most active. You can also check the directory of licensed mortgage professionals on the Financial Services Commission of Ontario’s website to see which brokers are listed.

 

Set up a meeting

The best way for you to get a feel for a mortgage broker, and to see whether they’d be a good fit for you, is to meet them in person. This way, you have the opportunity to ask questions that pertain to your specific circumstances and to see if the broker is attentive to your needs and wants. At Capital Mortgages we place a strong focus on great solutions, compassionate service, and honest ethics, to form a reliable genuine working relationship with you.

 

Ask questions

When you meet with a mortgage broker for the first time, you should feel confident asking them questions about how they do business and how they can best help you. Asking questions will enable you to make the most informed decision about your financial future. You could start by asking how the application process works, and inquire about the different lenders they work with and why they have chosen to work with them.

 

Check references

Finally, you will want to check references to make sure that previous clients were satisfied with the service they received. You can look at social media pages, Google reviews, and the company website to read client testimonials and reviews. We have a number of testimonials on our website and Facebook page that you may read to give you a good idea of the high-level of service we provide to every client.

 

At Capital Mortgages, our mandate is to offer the best financing products available for all your mortgage needs. Ready to set up an appointment with one of our experienced mortgage brokers or agents? Contact us today!

Capital Mortgages specializes as a service-oriented brokerage that prides itself on integrity and maintaining a service level second to none in the industry.

5 First-Time Homebuyer Mistakes and How to Avoid Them

Congratulations! You’ve decided to take the plunge into homeownership and purchase your first home. Now, you have all the excitement of house-hunting and finding your perfect home to look forward to! However, there are some bumps you may encounter along the way if you aren’t properly prepared for them. To help you, here are 5 first-time homebuyer mistakes and how to avoid them:

 

Not doing your homework

Purchasing your first home is a huge step and not one to be made in a hurry. Make sure that you do your homework by researching different neighbourhoods and considering which are most suited to your needs now, as well as 5 or 10 years in the future. Things to consider include walkability, green space, nearby schools, and whether or not the city has any upcoming plans for development.

 

Maxing out your budget

It can be easy to get swept up into the excitement of house-hunting and to start looking at homes that are in the top-end, or even above, your budget. One of the best things you can do before you begin to look at homes is to obtain mortgage pre-approval. With mortgage pre-approval, not only will you demonstrate to sellers that you are a committed buyer, but you will know exactly how much you can afford and what your monthly mortgage payments will be.

 

Not taking other costs into account

There are more costs to take into consideration than simply your monthly mortgage payments. By purchasing a home you are also committing to pay utilities, insurance, maintenance, possible condo fees and property tax. A good way to gain an accurate idea of what costs you can expect is to ask your realtor. You should also factor closing costs, such as legal fees, property tax adjustments and the land transfer tax, into your final numbers.

 

Skipping the home inspection

A home inspection is vital in ensuring you know exactly what you’re getting in terms of the current state of your home. A professional home inspector will look carefully at your home’s foundations, windows and roof, and will tell you if there is any water damage, mould, or structural issues that you need to address. If possible, include a home inspection as part of your conditional offer.

 

Making assumptions

You think the previous owners are leaving behind their appliances, only to arrive on move in day to find they have taken them with them and you are now left to replace a costly washing machine and dryer. If you think the previous owners may leave items behind, or if you have even discussed this with them — make sure to get it in writing. Items such as window treatments, lighting fixtures, and appliances are most often left behind but just make sure you clarify first exactly what you’re getting without making an assumptions.

 

Feeling overwhelmed? Let our team guide you through the homebuying process with ease. Capital Mortgages offers step-by-step personal assistance from knowledgeable mortgage brokers and an easy online application process. We’ll be by your side each step of the way, from helping you understand your options and what to expect, to mortgage pre-approval, and all the way through finalizing your mortgage and the purchase of your home.

 

Ready to talk? We’d love to help!

Reach out to us by phone at 613-228-3888 or by email at info@capitalmortgages.com

 

If you found this information useful, make sure to like and follow us on Facebook, LinkedIn, Twitter and Instagram! We are constantly posting valuable home tips, pertinent news articles, and reliable mortgage advice to better educate and inform our clients.

 

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.

Making the Most of Your Mortgage Broker

Your relationship with your mortgage broker does not just cover the purchasing of your first home. If you have a good relationship with your mortgage broker, it should exist for the entirety of your adult home-buying life. Purchasing a home can be an overwhelming and confusing experience, and your mortgage broker can be one of your greatest allies in this process. Most mortgages will be up for renewal two or three times during their total term, so there will be plenty of opportunities for you to touch base with your mortgage broker, look at the best current interest rates, and reassess your current financial situation. Here are some ways in which you can make the most of your mortgage broker by forming a strong trustworthy business relationship with them:

 

Be honest

Your mortgage broker can only help you secure the best mortgage for your specific needs if you are completely honest with them about your financial situation. Make sure that you provide your mortgage broker with all of the facts at the very first meeting, otherwise it will just be time wasted further down the road when it all comes out during your application.

 

Keep them updated

Over time, your life goals and plans can change. It is worth keeping your mortgage broker updated of any change in your long-term plans, such as your plans to move to a different city, buy an investment property, or downsize. By knowing this information, your mortgage broker will be able to make the best and most accurate suggestions to achieve your short- and long-term financial goals.

 

Referrals

If you’re happy with your mortgage broker, the best way to show them your appreciation is to refer them to a friend or family member! You can feel confident that your friend or family member is getting the best mortgage advice and be happy in the fact that you helped your mortgage broker gain a new longtime client.

 

Having a good relationship with your mortgage broker will only benefit you in the long-term. At Capital Mortgages, our goal is to be your personal mortgage broker for life. We offer as many in-person meetings, phone communications or emails as required so that all your needs are met. Mortgage solutions are not one-size-fits-all scenarios. We get it right, for you! Contact us today to get started.

 

Capital Mortgages specializes as a service-oriented brokerage that prides itself on integrity and maintaining a service level second to none in the industry.

What is Mortgage Default Insurance and Do I Need it?

The mortgage world can be a tricky one to enter. As interest rates keep fluctuating and qualifying rules keep changing, you can be left feeling thoroughly confused and overwhelmed. Don’t worry! Our expert team of Capital Mortgages agents and brokers are here to help. Have you heard the term ‘mortgage default insurance’ and are not sure if it applies to you? To clear things up, here is some information to better explain the point of mortgage default insurance and when you may need to pay it:

 

What is mortgage default insurance?

Mortgage default insurance is coverage provided to a lender that protects them in the case that a borrower stops making payments and defaults on their mortgage. Like any other insurance, mortgage default insurance requires additional premium payments. The premium amount will vary depending how much of the purchase price is being financed by the mortgage. Your mortgage insurance premium is usually added to your mortgage amount and paid off over the life of your loan. However, you do also have the option of paying the premium upfront from your own resources.

 

Do I have to pay mortgage default insurance?

In Canada, the minimum down payment you can put towards a home is 5 per cent. Any down payments between 5 and 19.99 per cent require mortgage default insurance. By protecting lenders against borrower default, mortgage default insurance offers homebuyers in Canada the ability to purchase property that would otherwise be financially out of reach. Mortgage default insurance is not available on all property types and amounts. A member of our Capital Mortgages team would be happy to help you navigate this issue.

 

How can I minimize my mortgage default insurance amount?

As the borrower, it benefits you to pay more money upfront: the greater the down payment, the smaller your mortgage and, in turn, the lesser your premium. Your down payment must come from your own cash resources. Financial gifts from an immediate family member are also allowable. If you are a first-time homebuyer, you may be eligible under the Home Buyers’ Plan to draw from your RRSP. Your mortgage broker will be able to discuss these options with you to help you determine which is best suited to your needs.

 

Are you still confused about mortgage default insurance and whether or not you need to pay it? We can help! Connect with one of our Capital Mortgages agents today and we will provide you with clear and concise advice, helping you to find the perfect mortgage solution to fit your needs.

 

Capital Mortgages specializes as a service-oriented brokerage that prides itself on integrity and maintaining a service level second to none in the industry.

4 Mortgage Pitfalls to Avoid as a First-Time Homebuyer

There are a lots of different factors to consider when purchasing your first home, such as which neighbourhood to buy in, what type of home you can afford, and securing the right type of financing. It is easy to get swept up in the excitement of making your first home purchase however, there are many mistakes to be made if you aren’t careful. Here are 4 mortgage pitfalls Capital Mortgages can help you avoid as a first-time homebuyer:

 

1) Not Getting Pre-Approved

Mortgage pre-approval should be your first point of call as a first-time homebuyer. Not only will a mortgage pre-approval help you understand your upper loan limit and the amount and type of loan you can afford, but it is the perfect time to discuss with your Capital Mortgages broker the whole process of purchasing your first home and arranging the mortgage best suited for you.

 

2) Taking On More Than You Can Afford

It’s normal to want to buy the biggest home you can afford, however, this may not be the wisest move. A larger home means larger mortgage payments, but it also means more expensive home ownership costs, such as property taxes, maintenance fees, and utility bills. Before purchasing a home, you should take all these costs into consideration and avoid taking on more than you need, even if it is affordable.

 

3) Longer Amortization Period

Your mortgage amortization period is the number of years you will need to pay off your mortgage. It is an important decision that can affect how much interest you pay over the life of your mortgage. The most common amortization period is 25 years, but you can choose a shorter or, if uninsured, a longer period of 30 years. A longer period means that your monthly mortgage payments will be lower, but it will take you that much longer to be mortgage-free. More interest will be paid over the life of the mortgage and you will build the equity in your home at a slower pace. It is also worth noting that if you choose an amortization over 25 years, you must have a down payment of at least 20%.

 

4) Not Reading the Fine Print

When applying for a mortgage, it is in your best interest to understand all the terms and conditions that apply to you and be clear in what you are committing to. Your Capital Mortgages broker will be able to go through all documentation with you, step-by-step, and clearly explain anything that you do not understand.

 

We understand that purchasing your first home can be an overwhelming and intimidating experience. With over 20 years experience in the mortgage industry, the team at Capital Mortgages has the necessary knowledge to help guide you effortlessly through finding your first mortgage and beyond. Contact us today to get started!

 

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.

10 Mortgage Terms Every First-Time Homebuyer Should Know

Buying your first home can be an overwhelming venture. If you are not financially-savvy, then terms such as ‘amortization period’ and ‘variable-rate mortgage’ may have you scratching your head in confusion. To help ease some of your worries, our expert team of brokers at Capital Mortgages have gathered together the top ten mortgage terms that every first-time homebuyer should know:

 

Amortization Period

The mortgage amortization period is the number of years it takes to repay the entire amount of the financing based on a set of fixed payments. Historically, the standard amortization period has been 25 years. However, shorter and, in some cases, longer time frames may be available depending on the amount of down payment you have available.

 

Mortgage Term

Not to be confused with the mortgage amortization period, the mortgage term describes the period of time your mortgage financing agreement covers. After the mortgage term has ended, you will have the choice to repay the remainder of the loan in full or renegotiate a new mortgage at current interest rates. The terms available are six months, or one, two, three, four, five, six, seven, and ten year terms, with the interest rates fixed for whichever length of term you choose.

 

Down Payment

When buying a home in Canada, a minimum down payment of 5 per cent of the purchase property value is required. In addition to the down payment, you must also be able to show that you have the capacity to cover other closing costs such as the legal fees and disbursements, appraisal fees and a survey certificate. At least 5 per cent of the down payment must be from your own cash resources and not a borrowed amount from a financial institution.

 

Principal

The principal describes the original amount borrowed in your mortgage loan, before interest. As you make regular mortgage payments, this number will decrease.

 

Gross Debt Service Ratio (GDS)

This is one of the mathematical calculations used by lenders to determine a borrower’s capacity to repay a mortgage. It takes into account the mortgage payments, property taxes, approximate heating costs, and a percentage of any condo maintenance fees, and this sum is then divided by the gross income of the applicants.  Maximum ratios based on your credit history range between 32 per cent and can go as high as 39 per cent.

 

Total Debt Service (TDS) Ratio

This is the other mathematical calculation used by lenders to determine a borrower’s capacity to repay a mortgage. It takes into account the mortgage payments, property taxes, approximate heating costs, and a percentage of any condo maintenance fees, and any other monthly obligations (i.e. personal loans, car payments, lines of credit, credit card debts, other mortgages, etc.) This sum is then divided by the gross income of the applicants. Ratios up to 40 per cent are acceptable.

 

Fixed Rate Mortgage

The interest rate for a fixed rate mortgage is locked in for the term of the mortgage. Payments are set in advance for the term, providing you with the security of knowing precisely how much your payments will be throughout the entire term. Fixed rate mortgages can be open (may be paid off at any time without breakage costs) or closed (breakage costs apply if paid off prior to maturity).

 

Variable Rate Mortgage

With a variable rate mortgage, mortgage payments and interest rates may fluctuate up and down during the term. Regarding variable rate mortgages with a fixed payment: if interest rates go down, more of the payment is applied to reduce the principal. If rates go up, more of the payment is applied to payment of interest. For variable rate mortgages with a variable payment: if interest rates go down, the payment goes down. If rates go up, the payment goes up. Variable rate mortgages may be open or closed. A variable rate mortgage provides you with the flexibility to take advantage of falling interest rates and to convert to a fixed rate mortgage at any time.

 

Conventional Mortgage

A mortgage up to 80 per cent of the purchase price or the value of the property. A mortgage exceeding 80 per cent is referred to as a “High-Ratio” mortgage and the lender will require insurance for that mortgage.

 

High-Ratio Mortgage

A mortgage that exceeds 80 per cent of the purchase price or appraised value of the property. This type of mortgage requires mortgage default insurance.

 

If you are still a little confused, or would prefer to talk to someone in person about securing your first mortgage, then do not hesitate to reach out to our team! With 20 years of experience in the mortgage business, we have the expert knowledge required to guide you effortlessly through getting your first mortgage and beyond.

 

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.

7 Financial New Year’s Resolutions for 2019

The beginning of every new year presents a blank page — a fresh start which offers you the chance to begin the year on the best foot. If you hope to become more financially savvy in 2019, then take a look at these top financial resolutions to help you save better and spend smarter in the new year:

 

Do an audit of last year’s spending

The best way to formulate an effective financial plan and to stick to it, is to know your spending habits. Do an audit of your spending and financial habits over the previous year. What were you spending the most amount of money on? Were all the purchases necessary? Identify any financial mistakes and make sure not to make them again.

 

Identify your financial goals and set a budget

Armed with the knowledge from your personal audit, decide on your financial goals for the years and set yourself a realistic monthly budget. Are you saving up for a down payment or a vacation? Perhaps you want to help your child pay for their education. Whatever your goals, be specific. Know how much money you need to save and budget accordingly. Whether you use a personal finance app, a spreadsheet, or a trusty notebook, track all your monthly outgoings and make sure you’re staying within your arranged budget.

 

Automate better financial habits

To get yourself started on a more secure financial path, start by automating some better money habits. For instance, set up a direct debit to send money directly into your savings account after you get paid every month. If you have debts to pay off, calculate those in your budget and automate those monthly payments too.

 

Commit to ‘no-spend’ days

One day a month, or even one day a week if you’re feeling ambitious, commit to having a ‘no-spend’ day where you don’t get your wallet out for any reason. Cook at home, watch a movie with your family, and don’t make any purchases. Think outside the box and find free activities to enjoy. You’ll feel all the better for it!

 

Cut back on bad money habits

What did you notice after looking back over last year’s finances? Perhaps you spent too much money on fancy coffee, or went shopping for new clothes too often. By recognizing your bad money habits, you can make more of an effort in the future to curb them.

 

Connect your resolutions

Bad habits can be hard to break and good ones difficult to form. To make things go a little smoother, try connecting your new year’s resolutions until the become second nature. Planning to get fit and exercise in the new year? For every successful workout you do, put $5 into your savings account. Seeing the money stack up will incentivize you to keep heading to the gym. Miss a workout? You have to pay $5 to a family member or friend instead.

 

Listen to a personal finance podcast or read a book

Knowledge is power and the more knowledge you have about your personal finances, the more power you will have to make smarter financial decisions. There are a huge number of personal finance podcasts available, whether your interest is in investing, frugality, or paying off debt. IF you’re not a podcast listener, pick up a book instead.

 

Looking to secure a mortgage in the new year? Capital Mortgages has been serving the community since 1999 with over 4 billion dollars in mortgages placed. We work to deliver unbiased mortgage advice from a vast choice of mortgage options with dozens of different lenders. For you, this means saving both time and money. Do not hesitate to contact us today!

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.

The Best Holiday Gifts for New Homeowners

It’s that time of year again! The holiday season is upon us. No doubt you have a long list of gifts to buy for all the important people in your life. If some of those people are new homeowners, they will likely be looking forward to spending their first Christmas in their new home. To commemorate this important milestone, here are some extra special gift ideas for new homeowners:

 

Key Holder

What’s one of the most frustrating things about being a homeowner? Losing your keys! Ensure this never happens by gifting the new homeowner with a stylish key holder that will take pride of place in their entryway.

 

New Home Christmas Ornament

Give the gift of a happy reminder that will be brought out year after year to adorn the Christmas tree! A personalized ‘new home’ ornament is the perfect way for the new homeowner in your life to always look back fondly on the first Christmas in their new home.

 

Personalised Painting

Commission a local artist to paint or draw a picture of the new home, so that it can hang on the wall for many years to come. Even if the homeowners eventually move, the picture will serve as a joyful reminder of the home in which they shared many happy memories.

 

Engraved Cutting Board

If the new homeowner is a whiz in the kitchen, consider getting them a personalized cutting board that is not only practical, but looks great too. If they would prefer not to use it, they can display it in the kitchen instead.

 

Personalized Doormat

A doormat may seem like an uninteresting gift, but it is likely something the homeowner will not purchase for themselves! There are many options these days, from decorative to comedic, giving you the opportunity to pick the best doormat that fits the homeowner’s personality. For an extra special touch, get a personalized doormat with the homeowner’s name.

 

Champagne Flutes

Christmas means holiday parties, hosting friends, and celebrating the year that has just passed. Help the new homeowner see the holiday season through in style with some attractive champagne flutes that they can use to toast other important milestones in the years to come.

 

Scented Holiday Candle

Scents can evoke powerful memories, especially at certain times of the year. Do you have a favourite Christmas scent? Bring the wonder of the holiday season indoors by giving a beautiful scented candle this Christmas.

 

Are you excited for the holidays? At Capital Mortgages, we love this time of year as it gives us the chance to reflect back on all the wonderful times we have shared with our valued clients. If you are looking to buy a home in the new year and would like to learn more about the financing options available to you, do not hesitate to reach out to the experienced team at Capital Mortgages. Whatever your situation, we can help you find a solution that best fits your needs.

 

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. thank you

Talking Mortgages with Your Partner

Your relationship with your partner will experience many exciting milestones: your first kiss, moving in together, getting engaged, having children… But one of the most important steps in your relationship will be buying a home together and getting your first mortgage. A home will likely be the largest joint purchase you ever make, and you need to be sure you are making the best financial decision to fit your specific needs as a couple. Here are a few pointers on how to talk mortgages and finances with your partner:

 

Share your financial goals

The most important thing to remember when discussing your finances with your partner is to be open and honest. Share your financial situations and goals with one another and make sure that you are both on the same page. Are you looking for a home to start a family or are you looking for more of a centrally located condo or even an investment property? This may not be one specific discussion, but an ongoing series of conversations between you and your partner to best ensure a financially secure future together.

 

How to get the conversation started

Financial matters can be sensitive and personal topics to some people so make sure you approach this conversation seriously. Some items to consider and discuss:

  • Your credit ratings
  • Any outstanding debts (e.g. car or student loans that still need to be paid off)
  • Your salaries (if one of you is a significantly higher earner, will you still split the mortgage payments 50/50?)
  • Your savings (what are you both contributing to the down payment?)
  • Other unique obligations, such as supporting family members

 

Visit your mortgage broker together

After discussing your financial goals and plans, visit your mortgage broker. Having a goal in mind will help your mortgage broker ascertain what financing best suits your needs. Capital Mortgages offers step-by-step personal assistance from knowledgeable mortgage brokers and an easy online application process. We’ll be by your side each step of the way, from helping you understand your options and what to expect, to mortgage pre-approval, and all the way through finalizing your mortgage and the purchase of your home. We may even be able to help you discover other options to realize your goals sooner.  

 

Have a follow-up discussion and make a unified decision

Once you have confirmed your joint goals, met with your Capital Mortgages broker, and have all the information you need, have a follow-up discussion. You and your partner should reassess your joint situation before you make a final decision.

 

As you enter your house-hunt well-informed and prepared, remember it can take months to find your dream home, and financial situations can change in that time. For this reason it’s important to stay in touch with your Capital Mortgages broker to ensure you are always best positioned financially. Remember your pre-approval will only lock in that interest rate for 120 days!

 

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.

The Best Things To Do in Ottawa for Newcomers

Are you a newcomer to Ottawa? Welcome! We love this city, and are pretty certain you will love it too. Whether you enjoy adventuring outdoors or prefer to stay within city limits, Ottawa has something fun to offer everyone. If you haven’t visited our fair city before, there are a number of things that should be on your Ottawa to-do list. Here are a few of our favourites:

 

Parliament Hill

What’s a trip to the nation’s capital without a trip to Parliament Hill? Parliament is one of Ottawa’s top attractions and a must-see for any first time visitor to the city. There is always an interesting event happening on the Hill! In the summer months, make sure to catch Northern Lights, the stunning Sound and Light Show. This incredible show projects colourful visual displays onto the Parliament Buildings to the sound of music and spoken words.

 

Rideau Canal

Whether you visit in the summer or winter months, the Rideau Canal should definitely be on your list! In the winter, the Canal is turned into the longest ice skating rink in the world! Nothing beats a hot chocolate and a Beavertail on the frozen Canal after a refreshing icy skate. During summer, take a boat cruise along the Canal, which travels directly through Ottawa’s downtown core.

 

Museums

Ottawa has a number of world-class museums, whatever your interests may be! Learn all about Canadian military history at the Canadian War Museum, be amazed by the beautiful works of art at the National Gallery of Canada, and have fun learning something new at the Canada Science and Technology Museum!

 

Adventures on the Ottawa River

More of the outdoorsy type? Head for a whitewater adventure on the Ottawa River! There are options to raft or kayak, in both the city and further down the river about an hour’s drive from downtown Ottawa. Whether you’re a seasoned thrillseeker or are just looking to dip your toe (pun intended!) into something new, you’ll find the perfect whitewater experience for you.

 

Cycling

One of the most scenic ways to enjoy Ottawa’s sights is by bike! Ottawa has a number of bike paths running all over the city, making it a breeze to travel across the city. On Sunday mornings in the summer, the National Capital Commission (NCC) closes a number of roads to keep them free for cyclists, runners and pedestrians.

 

If you are looking to move to the Ottawa area and need help securing a mortgage, we would love to hear from you! Please do not hesitate to reach out a member of our experienced team today. Alternatively, you can apply directly on our website with our simple online application form.

 

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.

9 Packing Tips to Make Moving Home Easier

Congratulations on your beautiful new home! Now, you face the less-than-fun part: Packing all of your many belongings so they can safely arrive at your new place. This is easier said than done, but here are a few tips to ensure your move is streamlined and stress-free:

 

 

1) Purge as much as possible

 

Take this opportunity to de-clutter, donate and get rid of anything you don’t really use or need. That way, you’ll have a LOT less to move on moving day (and you won’t have the same unnecessary items attracting dust in your closet).

 

 

2) Hire movers at least a month out

 

Make sure to research and hire movers at least a month ahead of time so you can plan and take time off work, etc., as needed. Many movers get busy on weekends, especially in warmer months and peak moving seasons, so consider saving money by moving on a weekday.

 

 

3) Pack in shifts

 

Pace yourself when it comes to packing! Packing slowly over time will be much less stressful than packing it all last-minute.

 

 

4) Protect your delicate items

 

Pack delicate items and expensive electronics (like TVs) in their original packaging (if possible). Or, wrap these items in packing paper, bubble wrap or quilts to ensure they aren’t broken when jostled or moved.

 

 

5) Disconnect your services

 

Utilities are often one of the last things you think about when you move, but you’ll save money and confusion later if you contact your utility companies ahead of time to disconnect your services. Also file a change of address with the postal service and any other important companies a few days before you move.

 

 

6) Accurately label moving boxes

 

Being careful about labeling your moving boxes will help you to find and organize your household items once you start to unpack. Include details about where the items were found or which room the items should be placed in.

 

 

7) Use smaller boxes for heavier items

 

For heavier items—such as books—you’ll want to use smaller boxes. Heavier items in larger boxes will be harder to lift and to balance when moving.

 

 

8) Stack dishes vertically

 

Dishes will be safer and easier to move when stacked vertically versus horizontally. Place packing paper or bubble wrap between each plate for extra protection.

 

 

9) Set aside cleaning supplies

 

Rather than packing up all your cleaning supplies to use at your new place, leave some behind at your old place. That way, you can do a deeper clean of all the spots you couldn’t reach when your furniture was in the way.

 

For all your mortgage needs, including information on renewing your mortgage or refinancing your property, the experienced team at Capital Mortgages can help! Do not hesitate to reach out with any questions or concerns you may have — we look forward to hearing from you.

 

 

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.

5 Ways to Update Your Deck this Summer

After a long cold winter, we are finally slowly emerging into the sunshine like butterflies from a chrysalis. The past few days of warm weather and sunshine may have you looking out into your backyard with a critical eye. How did your deck manage through the harsh winter? If your yard is looking less than satisfactory, don’t fret — you may only need to make a few small updates to get your deck looking and feeling summer ready. Here are a few top expert tips:

 

1) Stain the wood

Is your deck looking a little tired and worn after the winter? Treat the wood to a fresh new stain and have it looking back to its old self in no time! A penetrating weatherproofing stain will also protect the wood from future bad weather.

 

2) Get an outdoor rug

Perhaps the snow and ice has your deck looking a little weathered. If you don’t have the time to treat or paint the wood, pick up a bright and colourful outdoor rug instead! It’s a quick and affordable update that really makes a difference.

 

3) Add some planter boxes

Want to add some lush colour to your deck? Get a couple of planter boxes to hang on the railing for an instant splash of colour. If you’re a keen chef, planter boxes are also great for growing herbs!

 

4) Create a shady spot

It’s fantastic if your deck gets a lot of sun, but sometimes the heat can be a bit much. Create a shaded spot for eating, reading, or relaxing by adding a gazebo, pergola or patio umbrella.

 

5) Update your outdoor furniture

Are you still using the same outdoor furniture that you’ve had for years? It may be time for a change! Update your deck with some relaxed seating, perhaps a couple of benches or some comfy chairs, complete with colourful outdoor cushions to make your deck a stylish and cosy place to hang out.

 

Are you looking to build the backyard deck of your dreams? A refinance of your current mortgage could be the way to make that happen. Refinancing is a strategic financial decision that is applicable in a variety of situations and may require an advisor to ensure the best solution is found to fit your specific needs. Don’t hesitate to contact the team at Capital Mortgages today!

 

Stories from our Brokers: Brad Nemes

When you’re in the market for home financing and are searching for the right mortgage to fit your needs, you want to be sure that you are in the best hands. Our team of experienced mortgage brokers and agents offer seamless solutions for all your mortgage needs — whether you’re looking to purchase a principal residence, a revenue producing property, or to refinance existing loans and mortgages.

 

Today we start an exciting new online series in order to help you get to know our team of brokers! By hearing stories from our brokers in their own words, we hope to give you an insight into the real people behind our dedicated team of staff — so that you’ll feel confident in choosing Capital Mortgages as your mortgage broker for life.

 

Name: Brad Nemes

Time with Capital Mortgages: 15 years

 

What do you love most about your job as a broker with Capital Mortgages?

For me, the best part of the job is saying the word ‘APPROVED’, making people happy and letting them enjoy their homes.

 

Tell us the most inspirational story from your work as a broker?

Recovering poor credit is always the best story. Having a client come in, helping them understand their credit score, having them fix it and then moving forward with a purchase.

 

Tell us the funniest or most embarrassing moment from your work as a broker?

Once a client texted me a photograph from their cell phone, of their computer screen showing their online banking balance… for a down payment!

 

What is your #1 piece of advice for first-time home buyers?

Be careful. There is a lot to be said for taking the time to understand the entire process and checking to make sure it’s correct. What you see on the Internet is not always true. When you search for mortgages online you get exposed to everyone’s marketing and you have to dig through the layers of that to understand the new rules of lending.

 

What is your favourite thing to do in Ottawa?

Finding the latest, greatest new (or old!) dinner spot with my wife. It doesn’t always have to be the most expensive but it does need to be creative and tasty. From BBQ, tacos or soup, to steak or sushi, I’m game for it all!

The Difference Between Fixed and Variable Mortgage Rates

 

Do you know the difference between fixed-rate mortgages or variable (sometimes called adjustable-rate) mortgages? Each mortgage type is affected by different market conditions and each offers its own advantages or disadvantages.  One of the most important steps in financing your home is choosing which type of mortgage suits your individual situation best.

 

Fixed-Rate Mortgages

In Canada most mortgages are 5-year “fixed-rate” terms.  A fixed-rate mortgage has an interest rate that is “fixed” for the term of your mortgage.  It does not change. As a result, the mortgage payment will not vary and the amount of principle and interest paid is completely predictable.

The largest advantage of a fixed-rate mortgage is the protection from rising interest rates (since your rate is “fixed”). At the end of the term you would renew your mortgage at the rates that are in place at that time.  Like most homeowners, if you need to keep your payment within a budget this is the choice for you.

The potential drawback of a fixed-rate mortgage is that if interest rates decline you cannot easily take advantage of that.  It is also potentially more expensive to break this mortgage before your term matures.

 

Variable / Adjustable-Rate Mortgages

A variable or adjustable-rate mortgage is exactly what it says.  The interest will change (increase or decrease) based on market conditions.  Specifically, on what the Bank of Canada does with the Prime Lending Rate.  If they increase it your rate (and mortgage payment) will increase at the same time.  The same with a decrease.  Your mortgage payment in most cases does not remain the same.  The Bank of Canada meets eight times a year to determine this rate.

One of the biggest advantages to a variable rate mortgage is the potential interest cost savings.  Your interest rate is set based on a discount from the Banks Prime rate.  Today, the prime rate is 3.45%.  The average discount below that is .80% for a rate of 2.65%.  This is lower than fixed rates.  Because of the lower rate, your mortgage payment may be smaller.

However, the drawback of a variable rate mortgage is that if rates rise so does your payment and interest cost.  It is not predictable like a fixed rate mortgage is.  If you have a fixed budget, this may not be the product for you.

 

Your choice will depend on your own personal finances, current interest rates and market trends. If you need assistance in choosing which mortgage is right for you, please don’t hesitate to contact Capital Mortgages today.

 

Bank Of Canada Announces Interest Rate Hike

 

The long awaited and anticipated interest rate announcement was released from the Bank of Canada this afternoon. As many expected, the Bank of Canada raised the interest rate to 1.25% – the highest level since 2009. A strong Canadian economy, as demonstrated by a positive job market, an ever increasing gross domestic product, and ongoing increases in the cost of living, were cited as some of the primary reasons behind today’s increase.

 

“Recent data have been strong, inflation is close to target, and the economy is operating roughly at capacity,” said the Bank of Canada in an official statement.

 

This interest rate hike will unquestionably have an impact on savings, GICs and mortgages, allowing savers to earn more money on their savings, while simultaneously causing borrowers to pay more on things like mortgages. Despite the small change in the interest rate, the impact will be felt across the country, particularly when it comes to mortgages. As a result, experts are predicting that the housing market will slow down.

 

CBC reported that, “A homeowner today with a $300,000 25-year mortgage can easily get a variable rate starting at 3%. But if a lender hikes their rate three times to keep pace with the Bank of Canada, that costs borrowers an extra $100 per month”

 

With new mortgage rules and regulations, plus the interest hike, Canada’s real estate market is predicted to experience a slow patch in 2018 while buyers wait out their home purchases and work hard to withstand the stress test.

 

Now is the right time to connect with a professional mortgage broker to understand where you stand in this new real estate marketplace. The team at Capital Mortgages happily extends our services to help you understand the new interest rate increase and how it will affect you, your family, and your finances. Contact our team and speak with one of our experienced mortgage brokers today.

 

New Mortgage Rules 2018: What You Need To Know

If you own a home in Canada, are currently house-hunting, or are looking to buy sometime in the near future, you’ve no doubt been following the news closely for the past few months. As soon as word hit that the Office of the Superintendent of Financial Institutions (OSFI) would be introducing new mortgage rules at the start of 2018, people started scrambling to understand what this would mean for them and their home purchases.

 

Now that January is here, and the new mortgage regulations have been implemented, you may be feeling more confused than ever. Read on to learn more about the new mortgage rules introduced on January 1, 2018, and how they might affect you this year:

 

What Are The New Rules?

There are a number of changes but the one garnering the most attention, and the one that will affect the most people, is the introduction of a stress test for all mortgage applicants. Now, regardless of the size of their down-payment, home buyers will have to show that they can afford their mortgage payments should interest rates increase. Under the new mortgage “stress test”, potential home buyers will need to qualify for a mortgage at a rate either 2% higher than the mortgage rate they qualified for, or at the Bank of Canada’s ‘benchmark’ rate.

 

Why Are The New Rules Being Introduced?

While taking into account the rapidly rising prices seen in the Canadian real estate in the past few years, the new rules are aimed at cooling the housing market and keeping things under control. In the past decade, Ottawa has made six regulatory changes to the mortgage market in an attempt to limit the amount of debt taken on by Canadians and financial institutions in Canada.

 

Who Will Be Most Affected?

The new mortgage rules will likely affect around 100,000 Canadian home buyers, as well as those looking to refinance their mortgages in 2018. Home buyers will have less purchasing power than they would have done before the rules were implemented on January 1st .This could mean that home buyers will have to settle for a less expensive home than they had originally anticipated, or will have to wait to save up a larger down-payment. Homeowners looking to refinance their mortgage in 2018 will have to qualify according to the higher stress-state rates rather than the actual mortgage rate. This means that homeowners may have to settle for a smaller mortgage.

 

The team at Capital Mortgages happily extends our services to help you understand the 2018 mortgage rules and how they will affect you, your family, and your finances. We have summarized the new rules as best we can in this blog post for you but, should you have any further questions, please do not hesitate to reach out and speak with one of our experienced mortgage brokers today.

 

Capital Mortgages specializes as a service-oriented brokerage that prides itself on integrity and maintaining a service level second to none in the industry.

Why Do I Need a Mortgage Broker? 

If you are buying your first home, congratulations! This is an exciting milestone in your life, but it can also be a stressful one. Buying a home will likely be the most expensive purchase you will ever make and securing financing to make the transaction happen can be both overwhelming and confusing. Enlisting the services of a mortgage professional can help simplify this process for you and ease the burden of stress many people suffer with when dealing with complicated financial paperwork 

 

What is a Mortgage Broker? 

First things first, let us explain what a Mortgage Broker does. A Mortgage Broker is an independent, experienced and trained professional, who is licensed to represent a client and provide them with the most up-to-date financial advice based on their requirements. A Mortgage Broker’s primary role is to find and secure funding for their client’s mortgage financing.  

 

They can save you time 

While you could do all the legwork yourself, using a trained professional will save you time (not to mention a huge headache!) Because of the vast range of mortgage products available on the market today, shopping around can be a time-consuming process. Your Mortgage Broker has  the expertise and knowledge required to find the best rates, will complete the paperwork for you, and will negotiate with lenders on your behalf to secure you the most desirable rates and the best financing option for your needs. 

 

They can save you money 

Choosing the wrong mortgage could prove to be a costly mistake. Mortgage rates can vary day to day, and because of their knowledge and their daily contact with lenders, a Mortgage Broker will know which lender to approach first to attract the most favourable rate. Additionally, using the services of a Mortgage Broker normally incurs no cost for the client – they are paid a finder fee by the lending institution once the loan is approved and closed, so their assistance and expertise will often cost you nothing.  

 

They can help if your finances are less-than-perfect 

Do you have a low household income, or perhaps a less-than-perfect credit report? A Mortgage Broker can help put together a favourable application for financing and negotiate a better rate for you than if you approach the lender yourself. Your Mortgage Broker is trained to present your mortgage proposal where and how it will get the most immediate, positive result. 

 

Whether you decide to work with a Mortgage Broker or do the work yourself, it is very important that you are well-informed about your decision. For more information about the services we offer and we how we can help you secure the best mortgage solution for your needs, please contact us today.  

 

Renew your Mortgage with Ottawa Mortgage Broker: Capital Mortgages

Questions to Ask Before Selling Your House

Answers to some fundamental questions that most home owners want to sell a house usually ask.

Selling a home? There are many questions to be answered before you sell home. The first thought that comes to you is that you can do it yourself. You could save a considerable amount by selling the house on your own. You also think about the commission that you have to pay. When you have to do this, you have to be realistic and assess for yourself what is involved. Most of the cost in trying to sell a house goes towards advertisement.

It is advisable to work with realtors & of course mortgage brokers as they have an enormous amount of information at their disposal to answer your questions when you decide to sell a home. This information can be handy and helps you sell your house faster. These professionals know the market vibe and are trained to screen potential buyer and negotiate with them. Moreover, you could find them working on weekends and also answering phone calls at all hours.

Before you sell the house or take the help of a realtor, certain questions need to be answered. One of the commonly asked questions is “What makes a house sell? One has to concentrate on six considerations when you decide to sell the house. Your sale price, terms of sale, the condition of your house, its location, its accessibility, and the extent of marketing you give to sell your house. The other key question will be when is the best time to list a house for sale?

The other question when you sell a home will be “Is there any seasonality in the market?” Late spring and early fall are the main listing seasons in many areas. During this time, people do their shopping as the weather is pleasant. The same is applicable when you sell home. There will be numerous homes which will be on sale. This means other competition. Will market conditions such as price trends, interest rates, and the economy, in general, affect my ability to sell the house? Waiting for better market conditions will not likely increase your profit as numerous factors affect the final sale.

 

Renew your Mortgage with Ottawa Mortgage Broker: Capital Mortgages

7 Ways to Get Your Car Ready for Winter Weather

Get Your Car Ready for Winter Weather

Whether you are ready for it or not, the winter season is knocking and if you want your car giving you full service then preparing it for cold weather is an MUST-DO. In cases of nasty weather, especially the winter, proper preparation will guarantee your safety.

With proper preparation to your vehicle, you are sure to avoid being stranded when snowstorms or unexpected cold snaps come your way. Herein are seven distinct ways you can prepare your car for winter weather:

# 1 WINTER TIRES
Do not let the name fool you; these tires do not just come in handy on snow conditions alone. If you are looking for tires that will guarantee you good road grip and a smooth driving experience, then winter tires are what you need to have during the winter period.

Their soft rubber component facilitates good grip on icy or cold pavements, and they guarantee better results on temperature drops even to below 7C than all-season tires. Moreover, they can prevent sliding since their aggressive tread characteristic allows them to effectively channel away snow and slush.

# 2 BATTERY
In comparison to summer conditions, cold weather poses difficulties when starting the battery and one that has given you service for quite a period may not be fully efficient during the winter conditions.

You can take it to a service technician who will check it for any corrosion around the terminals and ensure that the cables are in good operational condition and are also well attached. Nonetheless, it is still proper to replace it before ensure you avoid getting stranded later.

# 3 OIL CHANGE
To prevent wear and damage, oil needs to smoothly flow through the vehicle’s engine. Nonetheless, not all car-oils are suited for winter conditions and those that do not have a tendency of thickening in the cold. For such conditions, ensure you have replaced your vehicle-oil with one that is characterized by low-viscosity which will quickly flow and safeguard your engine.

Moreover, low-viscosity can economize your fuel since it reduces friction. Adhering to recommended Oil changing times will guarantee a clean and durable engine.

# 4 WIPER BLADES
Clear vision when driving particularly into winter sunshine glare is one thing every driver requires but with streaks on the windshield, the driving experience can turn chaotic. Get wiper blade replacement any time they are not fully effective such as when they fail to clear the glass when they get torn or crack or even when they chatter or bump.

Exposure to sun and weather eventually hardens them, and it is only sensible to replace them at least twice on a yearly basis. For SUVs and hatchbacks, do not forget to replace the rear wipers also.

# 5 WINTER WASHER FLUID:
In winter conditions, using plain water will give you problems since it freezes. Nonetheless, with a winter-specific fluid particularly designed to resist freezing and wash away winter grime like road salt ensures a smooth running. Ensure that you also have a spare incase the fixed one depletes.

# 6 COOLANT
Cold temperatures may pose problems to your coolant, and as such it is essential, you ensure it can properly operate in winter conditions. Moreover, adhere to the maintenance schedule of your car so that you flush the cooling system and fill it up with new fluid when required.

The fact that the coolant gradually deteriorates means that at some point it can fail to protect both the cooling system and your engine. Ensure that your cooling system is well-adapted for winter conditions.

# 7 EMERGENCY KIT
In a bad snowstorm help may not come immediately, and as such it is appropriate to ensure that your emergency kit is in proper condition and is well stocked. Among the essential items that should be in the kit are blankets, matches, candles, folding towels and energy snacks.

Renew your Mortgage with Ottawa Mortgage Broker: Capital Mortgages

How To Sell Your Home With The Fewest Hassles

Selling a house can be a daunting task. Maybe this is your first time, or you have been through this before. No matter what, you could have several questions about what to do, and here are some helpful tips on how to sell your home with the least amount of headaches.

Before Listing a Property

Preparation is critical and here are some things to consider before putting a house on the market.

Get Professional Assistance

There are a lot of legal matters to consider when selling a property. In fact, it’s not hard to get confused about these issues, and a real estate professional is there to help you through the entire process.

Consider talking to several real estate agents before making your decision. Don’t let anyone rush you. Ask about experience and use your “gut feelings” when interviewing agents. Choose the person you feel is best suited for the job.

Determine the Asking Price

Be realistic in your expectations and remember you cannot put a price on sentimental value. It’s best to go by the fair market value of the home today if you want to sell the property.

Marketing

How you market the house, will determine how fast it sells and how much you will receive. Here are things to remember.

The Value of Curb Appeal

If someone drives by and doesn’t like what they see, they probably won’t even call and inquire. A house needs to look it’s very best from the street. Here are tips for improving curb appeal:

* Keep the lawn mowed and in good condition* Have adequate outdoor lighting* Consider painting the house exterior or, at least, the entry door, and adding a lovely welcome mat.

* If you have maintenance free siding, you might want to pressure wash the exterior.

Rearrange Home Interior

Get rid of all clutter and consider painting the walls white. White is neutral and can assist in making the rooms look bigger. If it is too crowded, rent a storage locker and remove excess furniture and possessions.

The Showing

The less you leave in the house, the easier it is for prospective buyers to visualize it as their own. Let your real estate professional show the house, as you might be in the way. Home shoppers are much more comfortable when they can check out a house without the owners present.

Negotiation

Just because someone makes an offer does not mean you have to accept it. Here are tips for sale negotiation.

Read the Offer Carefully

If someone wants to buy the home, they will submit a contract called “agreement of sale.” It will include the price they are willing to pay, financing, inspections, closing date, and other legal matters.

Sometimes both buyer and seller may need to make concessions to finalize a sale. For instance, the buyer may want you to repair something, or you might want more money. The bottom line is if you feel comfortable with the deal then go ahead. If not, you are not obligated to sell.

Once buyer and seller have signed an agreement of sale, it is legally binding. However, you can walk away from the deal if the buyer reneges on the agreement. Plus, if you do not live up to your end of the agreement, the buyer may be able to terminate the sale and sue you for damages.

Closing

After the home title has been cleared, appraisal and final inspections are completed, it’s time to close. Make sure to have everything out of the house by the closing date, except things you agreed to leave behind.

It’s not easy selling a house, but with the right help and knowing a few important things, you can make it much easier on yourself. Keep these tips handy and refer to them when needed, and you may be moving into your new home before you know it.

 

 

Renew your Mortgage with Ottawa Mortgage Broker: Capital Mortgages

These Numbers Are The Key To Understanding Your Finances

If you are interested in improving your financial well-being, it can be as easy as understanding some basic numbers. In fact, just a few sets of numbers are the key to understanding your finances today and in the future. Let’s take a closer look those numbers.

1. Net Worth

It’s simple to determine net worth. All you need to do is subtract debt from assets. For instance:

Assets

* Autos* Home* Home furnishings* Personal belongings* Savings account* Checking account* Investments (stocks, bonds, etc.)

Debts (Liabilities)

* Car loans* Home mortgage* Credit card debt* Student loans* Balance of any loans that remains unpaid

Once you discover net worth, it might be a negative number, and this is not good. To improve net worth you have two basic options:

* Increase assets* Lessen debts

2. Equity in the Home

Equity is one of the most important assets you can have. To determine equity, subtract the home’s current value (including appreciation and home improvements) from the mortgage balance. Here is an example. You owe $68,000 on a home and today it would sell for $145,000 (present market value). Subtract 68K from 145K and you get 77K. The home’s equity is an asset of $77,000. In some cases, you could have an “underwater mortgage” and this means you owe more than the property is worth.

To improve home equity, try these strategies:

* Upgrade the kitchen* Upgrade the bathrooms* Do your own improvement work to help increase greatly a home’s value.

3. Gross Earnings

If you receive a regular paycheck, gross income is the amount you’re paid before all payroll deductions. This is the number you must enter on your income tax forms each year. It is not the number to use when you make out a household budget. Instead, you will need to use another number.

4. Take Home Pay

This is also called net income and is the amount you end up with each payday. This is the amount you have to pay bills and all other expenses, and the figure you need for determining the household budget.

5. Monthly Expenses

Everything you must pay out each month is your total monthly expenses. It includes food, utilities, clothes, transportation, housing, and entertainment. This number is so important because you have direct control over personal spending, and it’s a good place to start when it comes to improving your financial picture.

6. Rate of Inflation

Inflation rates today have a huge effect on the future. You need to account for this number when you figure out a plan for the future and retirement. Remember, as inflation goes up, buying power goes down. The average inflation rate has been about three percent annually, but this can vary all the way from ten percent to almost zero.

When you plan for retirement, be sure to include an estimate of inflation over a period of years. Perhaps the best strategy is to overestimate, to ensure you’ll have enough for those golden years.