The Top Neighborhoods in Ottawa for First-Time Homebuyers

The Top Neighborhoods in Ottawa for First-Time Homebuyers

Buying your first home is an exciting and daunting experience, especially when you’re not familiar with the area you’re considering. Ottawa is a beautiful city that offers a wide variety of neighborhoods with distinct features and attractions. Here are some of the top neighborhoods in Ottawa for first-time homebuyers. 

1.Westboro as one of The Top Neighborhoods in Ottawa 

Westboro is a trendy and vibrant neighborhood located just west of downtown Ottawa. It’s known for its trendy boutiques, restaurants, and coffee shops. Westboro has a mix of housing options, including condos, townhouses, and single-family homes. It’s an ideal neighborhood for those who want to live close to downtown but still enjoy a more relaxed and peaceful lifestyle. 

2.Centretown

Centretown is a downtown neighborhood that offers a mix of urban and suburban living. It’s an ideal location for young professionals who want to be close to the city’s entertainment and business districts. Centretown offers a variety of housing options, including apartments, condos, and townhouses. 

3.Sandy Hill

Sandy Hill is an upscale neighborhood located just east of downtown Ottawa. It’s a historic neighborhood that’s home to some of Ottawa’s most beautiful heritage buildings. Sandy Hill offers a mix of housing options, including single-family homes, townhouses, and condos. It’s an ideal neighborhood for those who want to live in a quiet and peaceful area close to the city’s entertainment and business districts. 

3.The Glebe as one of The Top Neighborhoods in Ottawa 

The Glebe is a popular and diverse neighborhood located just south of downtown Ottawa. It’s known for its charming homes, tree-lined streets, and community events. The Glebe offers a mix of housing options, including single-family homes, townhouses, and condos. It’s an ideal neighborhood for those who want to live in a vibrant community with easy access to the city’s amenities. 

4.Hintonburg

Hintonburg is a trendy and eclectic neighborhood located just west of downtown Ottawa. It’s known for its creative arts scene, funky shops, and restaurants. Hintonburg offers a mix of housing options, including single-family homes, townhouses, and condos. It’s an ideal neighborhood for those who want to live in a lively and artistic community close to downtown. 

5.Barrhaven as one of The Top Neighborhoods in Ottawa 

Barrhaven is a suburban neighborhood located in the southwest of Ottawa. It’s known for its family-friendly atmosphere, parks, and community events. Barrhaven offers a mix of housing options, including single-family homes, townhouses, and condos. It’s an ideal neighborhood for those who want to live in a peaceful and safe environment with easy access to the city’s amenities. 

6.Orleans

Orleans is a suburban neighborhood located in the east of Ottawa. It’s known for its beautiful parks, trails, and family-friendly activities. Orleans offers a mix of housing options, including single-family homes, townhouses, and condos. It’s an ideal neighborhood for those who want to live in a peaceful and safe environment with easy access to the city’s amenities. 

Conclusion

Ottawa is a city with many beautiful neighborhoods that offer a variety of housing options for first-time homebuyers. Whether you prefer urban or suburban living, there is a neighborhood in Ottawa that will meet your needs. By considering the factors that are most important to you, such as your lifestyle and budget, you can find the perfect neighborhood to call home. 

 

Contact Capital Mortgages today to learn more about refinancing and how we can help you save money on your mortgage. Our team of experienced mortgage professionals is here to help you navigate the process and to find the mortgage solution that best meets your needs. Whether you are looking to lower your monthly payments, pay off your mortgage faster, or access equity in your home, we can help you explore your options and find the best mortgage solution for your unique situation. So, if you are thinking about refinancing your mortgage in Canada, don’t hesitate to contact us today! 

 

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.

Ottawa Real Estate Market: Expert Advice from Capital Mortgages

Ottawa Real Estate Market: Expert Advice from Capital Mortgages

Navigating the Ottawa real estate market can be a daunting task, especially if you’re a first-time homebuyer or new to the area. Here’s some expert advice from Capital Mortgages, a leading mortgage broker in Canada, on how to navigate the Ottawa real estate market. 

1.Work with a reputable real estate agent

A reputable real estate agent can help you navigate the Ottawa real estate market and find the right property for your needs and budget. They can also provide valuable insights into the local market, including trends, pricing, and neighbourhoods. 

2.Get pre-approved for a mortgage

Before you start shopping for a home, get pre-approved for a mortgage. This can help you determine your budget and give you an edge in a competitive market. A mortgage broker like Capital Mortgage can help you find the best mortgage options and get pre-approved quickly and efficiently. 

3.Research neighbourhoods

Researching neighbourhoods is crucial when navigating the Ottawa real estate market. Look for neighbourhoods that fit your lifestyle and offer amenities that you need, such as schools, parks, shopping, and transit. Capital Mortgage can provide insights into neighbourhoods and help you find the right fit. 

4.Be flexible

Being flexible is key when navigating the Ottawa real estate market. Be open to different neighbourhoods, property types, and features. Also, be prepared to act quickly in a competitive market, as properties can sell fast. 

5.Get a home inspection

Getting a home inspection is important when purchasing a home in the Ottawa real estate market. It can uncover potential issues that may impact the value of the property and give you leverage in negotiations. 

6.Understand the closing process

Understanding the closing process is essential when navigating the Ottawa real estate market. Work with your real estate agent and mortgage broker to ensure that all the necessary paperwork and inspections are completed, and that you’re prepared for closing costs. 

7.Work with a mortgage broker

Working with a mortgage broker like Capital Mortgage can help you navigate the Ottawa real estate market and find the best mortgage options for your needs. They can also provide valuable insights into the local market and help you save money on your mortgage. 

Conclusion

navigating the Ottawa real estate market requires careful planning, research, and flexibility. Working with a reputable real estate agent, getting pre-approved for a mortgage, researching neighbourhoods, being flexible, getting a home inspection, understanding the closing process, and working with a mortgage broker can all help you navigate the market successfully. Contact Capital Mortgage for more expert advice on navigating the Ottawa real estate market. 

 

Contact Capital Mortgages today to learn more about refinancing and how we can help you save money on your mortgage. Our team of experienced mortgage professionals is here to help you navigate the process and to find the mortgage solution that best meets your needs. Whether you are looking to lower your monthly payments, pay off your mortgage faster, or access equity in your home, we can help you explore your options and find the best mortgage solution for your unique situation. So, if you are thinking about refinancing your mortgage in Canada, don’t hesitate to contact us today! 

 

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.

Common Mortgage Questions for Ottawa Homebuyers

Common Mortgage Questions for Ottawa Homebuyers

Buying a home can be a daunting experience, especially if you’re a first-time homebuyer. There are so many things to consider, from the location and type of home you want to the mortgage options available to you. To help ease your stress and make the process more manageable, we’ve compiled a list of common mortgage questions for Ottawa homebuyers. 

Mortgage Questions

1.What is a mortgage, and how does it work? 

 A mortgage is a loan that you take out to buy a home. You’ll pay back the loan over time, with interest. The amount of the loan and the interest rate you receive will depend on factors like your credit score, income, and down payment. 

2.What is the difference between a fixed-rate and a variable-rate mortgage? 

A fixed-rate mortgage has a set interest rate for the life of the loan, which can range from 10 to 30 years. A variable-rate mortgage has an interest rate that can fluctuate based on market conditions. 

3.How much down payment do I need to buy a home? 

In Canada, the minimum down payment required is 5% of the home’s purchase price. However, if you can put down a larger down payment, you may be able to get a better interest rate and lower your monthly payments. 

4.What is mortgage pre-approval, and why is it important? 

Mortgage pre-approval is when a lender reviews your financial information and determines how much money they are willing to lend you for a home purchase. This is important because it helps you know what price range of homes you can afford and gives you an advantage when making an offer on a home. 

5.What is mortgage insurance, and do I need it? 

Mortgage insurance is required if you have a down payment of less than 20% of the home’s purchase price. This insurance protects the lender in case you default on your loan. 

6.How do I choose the right mortgage for me? 

Choosing the right mortgage can be a complicated process. Consider your financial situation, how long you plan to stay in the home, and what type of interest rate you prefer. It’s also a good idea to talk to a mortgage broker who can help you understand your options and find the best mortgage for your needs. 

7.What is the maximum mortgage loan amount I can get approved for?  

The maximum mortgage loan amount you can get approved for will depend on several factors, including your income, credit score, and debt-to-income ratio. Typically, lenders will consider your income and debts to determine your affordability, and this will dictate the maximum mortgage loan amount you can get approved for. 

 8.What is a mortgage term, and how does it affect my mortgage? 

A mortgage term is the length of time that your mortgage loan contract will be in effect. It can range from a few months to several years, depending on your lender and your agreement. The mortgage term can affect your mortgage in several ways, such as the interest rate you’ll pay, your monthly payments, and whether you’ll face prepayment penalties if you pay off your mortgage early. 

9.Can I still qualify for a mortgage if I have bad credit?  

Having bad credit can make it more challenging to qualify for a mortgage loan. However, it’s not impossible. You may need to work on improving your credit score by paying off debts and making payments on time. You may also need to consider alternative mortgage options, such as a private mortgage or a government-insured mortgage, which may have more flexible credit requirements. It’s best to talk to a mortgage broker or lender to explore your options.  

10.What is a mortgage prepayment penalty, and how does it work? 

A mortgage prepayment penalty is a fee that you may have to pay if you pay off your mortgage loan early, such as by selling your home or refinancing your mortgage. This penalty is designed to compensate the lender for the interest they would have earned if you had continued to make payments for the full term of the loan. The penalty can vary depending on the lender and the terms of your mortgage agreement. Before signing a mortgage contract, it’s important to understand the prepayment penalty terms and factor this into your decision-making process. 

Conclusion: Asking the Right Mortgage Questions 

Buying a home is a big decision, but asking the right mortgage questions and having the right answers makes  the process can make it less overwhelming. Hopefully, this list of common mortgage questions for Ottawa homebuyers has helped answer some of your questions. Remember, if you have more questions or need help with the home buying process, don’t hesitate to reach out to a mortgage professional. 

Have Mortgage Questions? Ask us!

Contact Capital Mortgages today to learn more about refinancing and how we can help you save money on your mortgage. Our team of experienced mortgage professionals is here to help you navigate the process and to find the mortgage solution that best meets your needs. Whether you are looking to lower your monthly payments, pay off your mortgage faster, or access equity in your home, we can help you explore your options and find the best mortgage solution for your unique situation. So, if you are thinking about refinancing your mortgage in Canada, don’t hesitate to contact us today! 

 

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.

The Benefits of Pre-Approved Mortgages in Ottawa

The Benefits of Pre-Approved Mortgages in Ottawa

If you’re planning on buying a home in Ottawa, one of the best things you can do to simplify the home buying process is to get pre-approved for a mortgage. A pre-approved mortgage can give you the confidence and peace of mind you need to start house hunting, and can save you time, money, and stress in the long run. Here are some of the key benefits of pre-approved mortgages in Ottawa. 

Benefits of Pre-Approved Mortgages in Ottawa

1.Know your budget 

You will have a clear understanding of your budget before you start house hunting. This can help you narrow down your search to homes that you can afford, saving you time and frustration. 

2.Competitive interest rates 

When you get pre-approved for a mortgage, you’ll typically receive a competitive interest rate based on your credit history and financial situation. This can save you money over the life of the loan by reducing your interest costs. 

3.Faster home buying process 

When you’re pre-approved for a mortgage, you’ll be able to move quickly when you find the right home. This can be a significant advantage in a competitive housing market, where homes can sell quickly. By having your financing in place, you’ll be in a stronger position to make an offer and close the deal quickly. 

4.Negotiating power 

Having a pre-approved mortgage can give you negotiating power when it comes to making an offer on a home. Sellers are often more likely to accept an offer from a buyer who has financing in place, as it reduces the risk of the sale falling through due to financing issues. 

5.Reduced stress 

One of the biggest benefits of pre-approved mortgages is that they can significantly reduce the stress and uncertainty of the home buying process. By knowing how much you can afford and having financing in place, you can focus on finding the right home and making a successful offer, without worrying about financing issues or unexpected costs. 

Conclusion

If you’re planning on buying a home in Ottawa, getting pre-approved for a mortgage is a smart and practical step. By knowing your budget, having competitive interest rates, moving quickly, negotiating effectively, and reducing stress, you’ll be in a better position to find the right home and make it yours. 

Contact Capital Mortgages today to learn more about refinancing and how we can help you save money on your mortgage. Our team of experienced mortgage professionals is here to help you navigate the process and to find the mortgage solution that best meets your needs. Whether you are looking to lower your monthly payments, pay off your mortgage faster, or access equity in your home, we can help you explore your options and find the best mortgage solution for your unique situation. So, if you are thinking about refinancing your mortgage in Canada, don’t hesitate to contact us today! 

 

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.

The Pros and Cons of Refinancing Your Mortgage

The Pros and Cons of Refinancing Your Mortgage

Refinancing your mortgage can be a great way to save money on your monthly payments, pay off your mortgage faster, or access equity in your home. However, refinancing is not always the right choice for every borrower, and it’s important to carefully consider the pros and cons of refinancing before making a decision. 

Pros of Refinancing Your Mortgage

Here are some of the pros of refinancing your mortgage: 

1.Lower interest rate

One of the biggest advantages of refinancing your mortgage is the potential to lower your interest rate. By securing a lower interest rate, you can save money on your monthly mortgage payments and pay off your mortgage faster. A lower interest rate can also result in significant savings over the life of your mortgage. 

2.Shorter mortgage term

Another advantage of refinancing is the ability to switch to a shorter mortgage term. By opting for a shorter mortgage term, you can pay off your mortgage faster and save money on interest charges. However, it’s important to keep in mind that a shorter mortgage term may also result in higher monthly payments. 

3.Access equity in your home

Refinancing can also allow you to access equity in your home. If your home has appreciated in value since you first took out your mortgage, you may be able to refinance for a higher loan amount and use the extra funds for home renovations, debt consolidation, or other expenses. 

4.Change mortgage type

Refinancing can also give you the opportunity to change the type of mortgage you have. For example, you may be able to switch from a variable-rate mortgage to a fixed-rate mortgage, or vice versa. It’s important to carefully consider the pros and cons of different mortgage types before making a decision. 

Cons Refinancing Your Mortgage

Now, let’s take a look at some of the cons of refinancing your mortgage: 

1.Closing costs

One of the biggest drawbacks of refinancing is the cost. Refinancing typically involves paying closing costs, such as legal fees and land transfer taxes, which can add up to thousands of dollars. It’s important to carefully consider whether the savings from refinancing will outweigh the costs of closing. 

2.Longer break-even point

Another disadvantage of refinancing is the longer break-even point. The break-even point is the point at which the savings from refinancing outweigh the costs of closing. It can take several years for the savings from refinancing to offset the costs, so it’s important to carefully consider whether you will be in your home long enough to benefit from the refinance. 

3.Prepayment penalty

Some mortgages come with a prepayment penalty, which means that you will have to pay a fee if you pay off your mortgage early. If you are considering refinancing, it’s important to check whether your mortgage has a prepayment penalty and to factor this into your decision. 

4.Impact on credit score

Refinancing can also have an impact on your credit score. Applying for a new mortgage involves a credit check, which can temporarily lower your credit score. It’s important to understand how refinancing will affect your credit score and to take steps to maintain a strong credit score. 

Is Refinancing Your Mortgage the Right Choice?

In order to determine whether refinancing is the right choice for you, it’s important to carefully consider your financial situation and long-term goals. Here are a few questions to consider when deciding whether to refinance your mortgage: 

1.How long do you plan to stay in your home?

If you don’t plan on staying in your home for a long period of time, refinancing may not be the best choice. It can take several years for the savings from refinancing to offset the closing costs, so it’s important to ensure that you will be in your home long enough to benefit from the refinance. 

2.How much will you save with a lower interest rate?

A lower interest rate is one of the biggest advantages of refinancing, but it’s important to carefully consider how much you will save with a lower rate. Calculate the difference between your current interest rate and the new rate you are considering, and determine whether the savings will be significant enough to justify the closing costs. 

3.What are the terms of your current mortgage?

Before you consider refinancing, it’s important to understand the terms of your current mortgage. This includes the interest rate, mortgage term, and any prepayment penalties or fees. Understanding the terms of your current mortgage will help you determine whether refinancing is a good financial decision. 

4.What are the fees and closing costs associated with refinancing?

Refinancing can be costly, with closing costs and other fees adding up to thousands of dollars. It’s important to understand the fees and closing costs associated with refinancing and to determine whether the savings from refinancing will outweigh the costs. 

5.Do you have the financial resources to refinance?

Refinancing can be a financial commitment, and it’s important to have the financial resources to cover the closing costs and any other fees associated with the refinance. Consider factors such as your income, debts, and monthly expenses when determining whether you have the financial resources to refinance. 

6.Do you have a solid credit score?

A good credit score is important when it comes to securing a lower interest rate on your mortgage. If you have a strong credit score, you may be more likely to qualify for a lower rate and to save money on your mortgage through refinancing. If you have a lower credit score, it may be more difficult to qualify for a lower rate, and refinancing may not be as financially beneficial. 

 Conclusion

In conclusion, refinancing your mortgage can be a great way to save money on your monthly payments, pay off your mortgage faster, or access equity in your home. However, it’s important to carefully consider the pros and cons of refinancing before making a decision. Some things to consider include your long-term plans for your home, the potential savings with a lower interest rate, the terms of your current mortgage, the fees and closing costs associated with refinancing, your financial resources, and your credit score. 

If you are considering refinancing, it’s a good idea to consult with a mortgage broker or financial advisor to discuss your options and to determine whether refinancing is the right choice for you. A mortgage broker can help you compare rates and terms from different lenders, and can assist you in finding the mortgage solution that best meets your needs. They can also provide you with expert advice and guidance to help you make informed decisions. 

Contact Us Today

Contact Capital Mortgages today to learn more about refinancing and how we can help you save money on your mortgage. Our team of experienced mortgage professionals is here to help you navigate the process and to find the mortgage solution that best meets your needs. Whether you are looking to lower your monthly payments, pay off your mortgage faster, or access equity in your home, we can help you explore your options and find the best mortgage solution for your unique situation. So, if you are thinking about refinancing your mortgage in Canada, don’t hesitate to contact us today! 

 

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.

How to Improve Your Credit Score for a Better Mortgage Rate

If you are planning on applying for a mortgage, one of the most important factors that lenders will consider is your credit score. Your credit score is a numerical representation of your creditworthiness, and it is used by lenders to determine your risk as a borrower. A higher credit score can lead to a lower interest rate on your mortgage, while a lower credit score can result in a higher interest rate or even a denial of your mortgage application. If you are looking to improve your credit score in order to qualify for a better mortgage rate, here are five tips to help you get started:

1. Check your credit report and score

The first step in improving your credit score is to check your credit report and score. You can get a free copy of your credit report from each of the three major credit bureaus (Equifax, TransUnion, and Experian) once a year by visiting annualcreditreport.com. In addition, there are also various websites and apps that can provide you with a free credit score. By checking your credit report and score, you can identify any errors or mistakes that may be negatively impacting your credit score and take steps to correct them.

2. Use credit responsibly

Building a good credit score takes time, so it’s important to use credit responsibly from the start. This means only borrowing what you can afford to pay back, paying your bills on time, and not maxing out your credit cards. By using credit responsibly, you can establish a good credit history and improve your credit score over time.

3. Pay your bills on time

Payment history is one of the most important factors that contributes to your credit score. By paying your bills on time, you can demonstrate to lenders that you are responsible and reliable when it comes to paying your debts. Set up automatic payments or reminders to ensure that you don’t miss any due dates.

4. Reduce your credit card balances

Credit utilization is another important factor that affects your credit score. This is the ratio of your credit card balances to your credit limits. A higher credit utilization ratio can indicate to lenders that you are using a large percentage of your available credit, which can be seen as a risk. To improve your credit utilization ratio, try to pay down your credit card balances as much as possible and aim to keep your balances below 30% of your credit limits.

5. Don’t close old credit cards

If you have credit cards that you no longer use, it may be tempting to close them in order to simplify your finances. However, closing an old credit card can actually have a negative impact on your credit score. This is because the credit card’s age is a factor in your credit score, and a longer credit history can help improve your score. Instead of closing old credit cards, consider keeping them open and using them sparingly to maintain a good credit history.

6. Dispute errors on your credit report:

If you find errors on your credit report, it’s important to take action to correct them as soon as possible. Credit report errors can occur for a variety of reasons, and they can have a significant impact on your credit score. By disputing errors on your credit report, you can help ensure that your credit score reflects your true creditworthiness.

7. Monitor your credit regularly

It’s important to monitor your credit regularly to ensure that your credit score is accurate and up-to-date. In addition to checking your credit report and score once a year, you can also consider signing up for a credit

monitoring service or setting up alerts to notify you of any changes to your credit. By monitoring your credit regularly, you can stay on top of any potential issues or mistakes and take action to correct them.

8. Don’t apply for too many credit cards at once

Every time you apply for a credit card, it results in a hard inquiry on your credit report, which can temporarily lower your credit score. To avoid too many hard inquiries, try to limit your credit card applications to only when you really need them.

9. Consider a secured credit card

If you have a low credit score or a limited credit history, a secured credit card may be a good option. A secured credit card is a type of credit card that requires a deposit as collateral, which is used to secure the credit line. By using a secured credit card responsibly and paying your bills on time, you can build or improve your credit score.

In conclusion, improving your credit score can be a key factor in getting approved for a mortgage and securing a better interest rate. By checking your credit report and score, paying your bills on time, reducing your credit card balances, avoiding too many credit card applications, and considering a secured credit card, you can take steps to improve your credit score and increase your chances of getting approved for a mortgage.

If you are considering a mortgage and are looking for guidance and support in improving your credit score, contact Capital Mortgages today! Our team of experienced mortgage brokers can help you understand your credit score and provide you with tips and strategies for improving it. Don’t miss out on the opportunity to qualify for a better mortgage rate and achieve your dream of homeownership. 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.

multifamily financing

The 6 Essentials You Need to Know About Multifamily Financing

Did you know that there are several different types of financing available to real estate investors? If you’re interested in getting started with multifamily properties, you’ll need to find the right kind of financing for your situation and goals. It can be confusing when you first start looking at all the different options for financing real estate investments. Fortunately, we have created this guide to explain all the various types of financing and how they can help you reach your multifamily investing goals. If you’re just beginning your investing career or hoping to expand your portfolio with new properties soon, this article will give you an insider’s look at the world of multifamily financing. Let’s get started!

Basics of Multifamily Financing

Let’s start with some of the basics. What exactly is multifamily financing? What does it mean to finance a multifamily property? What’s the difference between financing and owning a property? When you finance a property, you’re taking out a loan to purchase the property’s equity. You’re using borrowed funds to purchase an asset, which means you have to pay back the loan with interest. This is a very common practice in the real estate industry and applies to every type of real estate investment, including single family houses, duplexes, triplexes, and four-plexes. The loan amount will be based on what you can afford to repay each month. This amount is often less than you would pay if you bought the property with cash. Many real estate investors use financing to purchase their properties because it allows them to expand their portfolios more easily.

Equity Financing

While this might sound like a financing option that only works well in minor emergencies, equity financing is actually a type of loan that real estate investors use frequently. It’s a great option if you already own a property and want to borrow against its equity. If you’re looking for equity financing for your multifamily property, you’ll need to find an equity investor. You can find these types of investors through real estate investment clubs and online peer-to-peer lending platforms. Equity financing can be a good option if you have equity in one of your properties and need to finance another property. Keep in mind that you will have to pay back the loan with interest, which means you will need to take that into account when determining how much equity financing is appropriate for your situation. If you’re considering equity financing, it’s a good idea to speak with a real estate attorney first. They can help you navigate the legal and financial issues of this type of financing.

Debt Financing

As with equity financing, debt financing is a type of loan used by many real estate investors. Debt financing is a great investment option if you don’t have any equity in your current properties and want to invest in new properties. Dealing with banks is a tedious process, but once you’ve found the right one and proven that you’re a reliable candidate, you’ll be able to borrow money more easily in the future. Banks usually require you to have a certain level of equity in your current properties before they’re willing to approve a loan for new properties. You can also work with a hard money lender if banks aren’t willing to finance your properties. Hard money lenders specialize in quickly funding real estate investments, including multifamily properties. If you’re looking for a quick turnaround, this might be the best option for you.

Understanding VAN, IRR, and ROI

Before you start searching for financing options, you’ll need to understand the basics of the terms VAN, IRR, and ROI. VAN stands for the “value-added net”, which is a metric used in commercial lending to determine how risky a loan is. The more complicated your deal and the less predictable the future is, the higher your VAN will be. What’s the ideal VAN for a commercial loan? The average commercial loan has a VAN of 132, which means that the lender expects to earn a 13% rate of return on the initial investment. IRR stands for “internal rate of return”. This is how much cash you will make on your investment. You should know what your IRR is on each potential property so that you can compare it to the VAN of the lender.

Finding the Right Property to Finance

If you’re considering financing a new property, you’ll need to find a good candidate for a loan. It’s important to find a property that will qualify for the loan and will be profitable once it’s fully operational. You can use the 8% rule to determine whether a property will be profitable. If you can’t find properties that meet both of these criteria, it might be time to consider buying a different property type. You can use the IRR formula to determine if a property will be profitable. IRR = ( VAN / purchase price ) – 1 You can also use the below chart to determine whether a property is a good investment.

Tax Advantaged Investments

Another important factor to consider when choosing a financing option is how beneficial the loan terms are to you. While you should always look at the interest rates of each loan type, you should also consider the tax advantages of that loan type. Debt financing and equity financing both come with tax advantages, but each type of loan is taxed differently. Debt financing is taxed as ordinary income at the same rate as your salary. Equity financing is treated as a capital gain and is taxed at a lower rate. Overall, equity financing has the highest tax advantages but is also the riskiest option. Debt financing is the safest option but also the least tax-advantaged. If you’re unsure which option to choose, it might be best to split your financing between debt and equity. This will give you the best of both worlds.

Conclusion

Now that you understand the basics of multifamily financing, it’s time to start exploring your options. There are several different types of financing available to real estate investors, and you’ll need to find the right loan for your situation and goals. You can use equity financing if you already own a property and want to borrow against its equity. Debt financing is a great investment option if you don’t have any equity in your current properties. Hard money lenders specialize in quickly funding real estate investments, including multifamily properties.

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.

inspecting a new home

8 Things You Should Check When Inspecting a New Home

When buying a new home, you’ll want to check for red flags that could indicate future problems. Your inspection is critical to finding anything that might be hidden or overlooked by less diligent buyers. However, with new technologies and home design strategies being used more frequently, the modern inspection process differs from what buyers have come to expect in previous years. Today’s inspectors are trained professionals who understand how various factors impact the home from both inside and out. No matter your inspector, there are some things you should check. This will help you make an informed decision about any issues that may need to be addressed before moving forward with your purchase. Check out these 8 things you should check when inspecting a new home…

Licensed and Certified Inspectors

All states require that home inspectors be licensed, but this is not a requirement for home builders or appraisers. A licensed inspector is held to a higher standard than an unlicensed person because they have demonstrated a commitment to quality and integrity in the profession. In addition, the inspector’s insurance company may require that he or she have a state license to inspect your home. For example, in Texas, an inspector must have a license to inspect new homes under construction, additions, or repairs that exceed $5,000. A certified inspector will have undergone extensive training, including instruction on the building codes and safety issues that affect the home and its inhabitants.

The Exterior of the Home

The exterior of the home can indicate a lot about its condition and its maintenance level. It can also give you insight into how well it was built. Some things to look for include:

– Curb appeal: A well-constructed home will have a good curb appeal, while a shoddily built one will not. Check for things like uneven levels, poor attention to detail, and other things that should be fixed.

– Excessive wear: If the siding is peeling, the windows are cracked, or the paint is old and cracked, the home may be due for replacement.

– Structural integrity: Make sure the walls are plumb, the roof is not sagging, and there are no signs of structural damage.

The Roof

Asphalt shingles can last up to 20 years. Wood shingles last about 15 years, depending on the quality and maintenance. Next, inspect the roof’s condition, including the type of roofing and any signs of damage. If the roof is nearing the end of its life span or there are other concerns, it may be a good time to negotiate with the seller to replace it.

Windows and Doors

The windows and doors can tell you a lot about how well the home is insulated. If they are not up to modern standards, they could be a significant energy loss. Check the following:

– Are the windows and doors level? Evenly spaced? In good condition? If not, they will need to be replaced, which could be a costly project.

– What type of windows do you have? If you have older single-pane windows, you will likely want to replace them with newer, more energy-efficient models.

– Are the doors and frames insulated? What type of insulation do they have? Again, this could be an energy loss.

The Foundation

The biggest potential issue with the foundation is a structural defect that is not evident on the surface. Check for cracking and other signs of foundation issues.

– Are you on a hill or a slope? If that could affect the foundation, it could indicate a problem.

– What is the soil like? If it is loose soil, it could indicate a problem.

– Are there any indicators that the water table is close to the surface? If so, there could be a problem.

Interior Walls and Ceilings

While you can’t see the foundation, you can see inside walls. Check for the following to get an idea of the home’s condition and maintenance level.

– Do the walls have cracks? Are they uneven? Are they plumb? If so, you may need to have them repaired or repainted.

– Are the walls consistent in their finish? If not, it could indicate repairs that were done badly.

– How are the electrical outlets and light switches mounted? Are they level? If not, that could indicate a need to repaint.

Electrical Systems

The electrical system is the heart of the home. If there are excessive or loose wires, it indicates a potential problem. Check the following items:

– Is the electrical panel mounted level? If not, it could draw in pests and cause a potential fire hazard.

– Are there any loose wires? If so, that could indicate a problem.

– Are the breakers properly sized? Excessively large circuit breakers could indicate a problem.

The Water Heating System

The water heating system is another important component of the home. You can check the following:

– Is the water heater mounted level? If not, it can cause damage to the unit.

– Is the water pressure in the house consistent? If not, it could indicate a problem.

– Are there any loose connections? Loose connections can cause a variety of issues, including decreased flow.

Summary

These are just a few things you can check when inspecting a new home. It will help you make an informed decision about any issues that may need to be addressed before moving forward with your purchase.

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.

History 101: Ottawa

History 101: Ottawa – A Quick Guide to the History of Canada’s Capital City

From its humble beginnings as a frontier settlement to its role as the nation’s capital, Ottawa has come a long way. The city has grown from 10,000 residents in 1900 to well over one million today. Along the way, it has also acquired a rich history worth exploring. So if you find yourself visiting or living in Ottawa anytime soon, why not take some time to learn more about its past? From Victorian architecture to First Nations history and everything in between, this article will serve as your ultimate guide to everything you ever wanted to know about the city of Ottawa.

A Short History of Ottawa

Conveniently situated between the Great Lakes and the St. Lawrence River, Ottawa has been inhabited by humans for thousands of years. The Algonquin First Nation tribe lived in the area before Europeans arrived, making it one of the few Canadian cities with a significant amount of indigenous history. The Algonquins called the city “adawe,” meaning “to trade.” In the 19th century, much of the land was transferred to the British government, who built a new city there and named it after the nearby Ottawa River. The city became Canada’s capital in 1857, when it was still a frontier town. Since then, it has grown from a small collection of buildings to a bustling metropolis with a diverse and vibrant culture. Ottawa’s architecture, art, and festivals are some of the city’s most celebrated features.

The Origins of Ottawa

The Ottawa River has played an integral role in Ottawa’s history and development, and it’s no surprise that the city’s name is derived from this body of water. The Ottawa River is one of the largest in Canada, and it connects with the St. Lawrence River at the southern end of Lake Ontario. Today, this river is a tourist attraction in its own right, and thousands of people visit the famous Rideau Canal each year. In the past, the Ottawa River was also an important transportation route, used by loggers, fur traders, and other settlers. The area around the river was also strategically important, and Ottawa played a significant role in Canada’s early conflicts with other nations.

Types of Architecture in Ottawa

Visitors to Ottawa are likely to be struck by the city’s unique architectural style. Ottawa has more than 1,000 buildings that are listed as heritage buildings, and this gives the city a distinct charm unlike anywhere else in Canada. The most prominent architectural style in Ottawa is Victorian, and this can be seen in buildings such as the Parliament Buildings. However, there are many more architectural styles evident in the city, including Gothic Revival, Romanesque Revival, Neoclassical, and Modernist. All of these architectural styles are worth exploring, and you can also visit buildings under construction to see what the city will look like in the future.

The ByWard Market: A Brief History

One of the oldest and best-known districts in Ottawa is the ByWard Market, and it’s also one of the city’s top tourist attractions. The ByWard Market is a public market that has been operating since the early 19th century, when it was called the Upper Town Market. In the early 20th century, the market was renamed the ByWard Market and was officially designated as a public market. The ByWard Market has seen many changes over the years, but it is now one of Ottawa’s most popular destinations. The market has a wide variety of shops, restaurants, and other attractions, and it draws thousands of visitors each year.

Other Important Dates and Events in Ottawa’s Past

– 1867: The capital of Canada is officially moved to Ottawa.

– 1898: Ottawa hosts its first large exhibition, which has become a significant event in the city’s calendar.

– 1900: The Canadian government begins to construct the Parliament Buildings.

– 1905: The Chateau Laurier Hotel is built and becomes a popular attraction in the city.

– 1962: The National Arts Centre is completed after many years of construction.

– 2015: The Rideau Canal is declared a UNESCO World Heritage Site.

Where to Find Victorian Buildings in Ottawa

Ottawa is known for its wide variety of Victorian buildings, and many of these can be found in the ByWard Market area. However, Victorian architecture is also evident in other areas of the city, and you can find a wide range of buildings from this period all over Ottawa. You might also find buildings from other periods in Ottawa, as the city has many architectural styles that are represented. The Parliament Buildings, for example, are one of the best-known examples of neo-Gothic architecture.

More about the architecture and design in Ottawa

Ottawa is known for its wide variety of beautiful architecture, and this has given the city a distinct charm. The National Arts Centre and the Parliament Buildings are among the most famous examples of Ottawa’s architectural style, and these buildings have become iconic symbols of the city. There are several other famous buildings in Ottawa, such as the Chateau Laurier Hotel. The Parliament Buildings are Ottawa’s most famous buildings, and they were designed by architect Thomas Fuller. The buildings are made of limestone, sandstone, and marble, and they represent a wide variety of architectural styles. Even though Ottawa is a modern city, it still has links to its past. You can see these links in the architecture and design of the city’s buildings, many of which are beautiful examples of Victorian architecture.

Conclusion

If you love history, you will love Ottawa. This city has an incredibly rich history that dates all the way back to the very beginnings of Canada. Whether you want to learn about indigenous culture or about how the city became the capital of Canada, you can find out all about it in Ottawa. This city is a treasure trove of fascinating history, and it’s well worth exploring if you find yourself in Canada’s capital city.

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.

apply

Tips to Prepare and Maintain your Patio for Winter

Tips to Prepare and Maintain your Patio for Winter

Keeping your patio ready for the cooler months isn’t as simple as switching on the heater and adding a coat. In fact, with all the prep that goes into maintaining your outdoor space, you might question why you have one at all! But trust us on this: Keeping your patio in working order during the winter is worth it.You see, even though it can be harder to access than an indoor space, having a well-maintained outdoor area makes all the difference when you need to get out of the house. A tidy patio will also stay neat throughout winter thanks to these tips. Keep reading for helpful tricks to maintain your patio before winter arrives.

Maintaining Outdoor Spaces Before the Cold Arrives

The best way to ensure your patio is safe to use during the colder months is to prep it before it gets cold. This means cleaning the area thoroughly and storing any furniture that might get ruined during the winter, as well as making sure the patio’s surface is working properly. Clearing away leaves, debris, and cobwebs will not only help to make your patio look cleaner and more inviting, but it will also make it easier to clean if rainwater pools there. Plus, by cleaning your patio and checking its surface now before the colder weather, you have a much better chance of identifying any issues that may arise before they become a major problem. This is also the best time to make any repairs that need to be done to the patio, like replacing old or broken tiles or painting over chipped or faded areas.

Repair Chipped and Flaking Paint

If your patio is painted, you’ll want to make repairs to chipped and flaking areas before the colder weather arrives. This is especially important for wooden patios, since chipped or peeling paint may cause splinters. When painting wood, use a two-part polyurethane coating to protect it from moisture and the elements. Make sure to apply a primer to chipped, damaged, or bare areas before applying paint to avoid flaking, bubbling, and peeling. You’ll also want to avoid painting directly onto synthetic or concrete surfaces, as paint can be difficult to remove later.

Add New Coats of Protective Sealant

If you’ve applied protective sealant to your patio before, you’ll want to reapply it again before the colder months. Sealant protects against stains, water damage, and other causes of damage, so it’s essential for keeping your patio in good shape during the winter months. Look for sealants that will be effective in cold weather, as some are better than others at handling the freezing and fluctuating temperatures of winter.

Check for Leaks and Watering Issues

Before the winter arrives, you also want to make sure your patio isn’t leaking or watering excessively. Look for any signs of water damage, such as discoloration or mildew, and repair any leaks as soon as possible. This is also a good time to check for any broken or worn-out sprinkler heads. You may want to switch to an automatic watering system if the weather is expected to be cold enough to freeze your lawn.

Maintain a Clean Environment

Finally, you should also try to maintain a clean environment for your patio. Reduce the risk of pests, like ants or other insects, by cleaning up any crumbs or debris that may be lying around. This will also help to keep your patio looking tidy and clean. Of course, you’ll also want to watch the forecast and plan around any incoming weather. If you know a snowstorm is on the way, try to sweep off any areas that might collect snow.

Conclusion

Keeping your outdoor spaces maintained and ready for the cooler months is essential. It’s also important to note that you’ll want to follow these tips any time you notice your patio isn’t in the best shape. Of course, certain areas like your patio are more susceptible to damage during the winter months, so it’s best to stay on top of any maintenance issues you can identify early on. With these tips, you’ll be well on your way to keeping your patio in good shape through the winter and beyond.

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 Questions You MUST Ask Your Mortgage Broker

As you navigate through the process of applying for a mortgage, you are going to encounter a multitude of steps, paperwork, and challenges along the way. Just when it seems like everything finally makes sense, boom – you come across a hidden charge, surprise component, or another tidbit of information that you had no idea would be involved in the process. To simplify things and gain a broader understanding of the journey you are about to embark on, here are five questions you should definitely be asking your mortgage broker.

 

What Types of Lenders are Available to You?

 

All lenders are not equal! Your mortgage broker will work with you to determine your overall financial situation before recommending a suitable lender based on your needs and constraints. They will do a great job of ensuring that you are opting for the least amount of risk and selecting a financial institution that’s right for you – which is probably not the same as it would be for your best friend or your neighbor. 

 

What Should I Keep In Mind For The Future?

 

In the immediate excitement of purchasing a home, many people can forget to consider what may be in store for the future. An amount you are able to afford today might not necessarily be the right choice for your future, given that you might soon become a parent or change jobs. Even if you are not planning to make any impending lifestyle changes, your mortgage broker will be able to explain rising interest rates to you and incorporate these variable future factors into their negotiations with your lender.

 

Which Interest Rate Do I Qualify For?

 

Your mortgage loan is one thing, but the interest on top of it is a completely different element to consider. The interest rate that you qualify for is dependent on your down payment amount, credit, and employment income. Ask your mortgage broker to explain which rate you qualify for, as this can impact you in two ways. For one, you will end up saving thousands of dollars in the long run if you qualify for a low-interest rate. However, if your rate is higher, your loan will be more expensive to pay back and could potentially become troublesome for you to manage financially. 

 

How Much Should My Down Payment Be?

 

Many people mistakenly assume that if they put a 20% down payment on their home, their mortgage’s interest rate will automatically be lower. However, this isn’t always the case. You can often put down as little as 5 percent and receive the same interest rate as you would if you put down 10, 15, 20 or even more. High ratio insured rates are currently lower than that of a 20% down payment. Your mortgage broker can shed more light on how much cash you should put down, which can be especially helpful if you are worried about cash flow throughout the purchase of your home and impending changes to your lifestyle.

 

Which Type Of Mortgage Should I Consider?

 

There are two types of mortgage interest rates: fixed and variable. Depending on your preferences and tolerance for risk, your broker will recommend that you either opt for a rate that doesn’t fluctuate or one that changes according to market trends. 

While these questions are simply just the tip of the iceberg when it comes to what you should be asking your mortgage broker, they’ll provide a solid foundation for getting started. Don’t forget to also factor in that there are several associated costs with applying for a mortgage – such as appraisals, credit reports, lender’s title policies, pest inspection reports, recording fees, taxes and more! Give Capital Mortgages a call today and we’d be happy to explain further.

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

What is a Purchase Plus Improvement Mortgage?

When you are preparing to purchase a new home, you will be introduced to plenty of new jargon related to your mortgage. Purchase Plus Improvement is one of the important ones – because understanding this term could end up saving you lots of money in the long run.  

Are you interested in purchasing a new home that requires renovations? Do you intend to do those renovations? Are these renovations capable of truly transforming the structure of your home (i.e. a new kitchen, bathroom, roof, flooring, windows or doors)? Do you need access to funds to complete those renovations right now? If you answered yes to any of these questions, then perhaps a Purchase Plus Improvement Mortgage is for you.  

 

How it Works: 

If you are certain that you will be fronting the bill for some home renovations in the new home you are purchasing, you can actually roll all of those dreaded renovation costs directly into your mortgage. The CMHC Purchase Plus Improvement Mortgage enables buyers to borrow as much as 10% of the estimated value of their home, post-renovation. If you believe you can renovate and improve the value of your home by $30,000, then you will be considered for a mortgage approval that tacks that amount onto your initial pre-approved mortgage amount. That means that all of those expenses are held and managed in one place.  

  • First off, you must outline what renovations are required and the estimated cost of these renovations. 
  • Next, you submit your mortgage application on the house as it currently is, and receive a pre-approval from your mortgage broker.  
  • Now is the hard work – you have to go and get specific quotes (with the exact renovation work that will be done).  
  • Present these quotes to your mortgage broker and your mortgage will be reassessed to include the cost of the quoted renovations. 
  • Now you have your new home and renovations can get underway immediately by a professional contractor or, yourself (but only material costs, not your labour, would be covered)! Do not go over the allotted maximum amount you were approved for. 
  • To confirm the completion of the renovations, a bank representative / appraiser will visit your home and cross reference the work with your initial documents.  
  • Your renovation funds will be released. 

 

Example:

Here is a real-life example of a purchase plus improvement mortgage situation after a 5% down payment is paid (which includes the renovation cost):
  

Home Purchase Cost: $350,000 

Cost of Renovations: $35,000 

Revised Purchase Price: $385,000 

Mortgage Amount: $365,750  

CMHC: $13,167 

Total Mortgage Amount: $378,917 
  

It is without a doubt that this Purchase Plus improvement Mortgage is the most effective and affordable way to finance big home renovations. If you are interested in learning more about this mortgage option, contact our team at Capital Mortgages today for more information. 

 

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.

How to Become Mortgage-Free Faster

If you have recently bought your first home — congratulations! It is a milestone worth celebrating and one that may have been a number of years in the making while you saved up your down payment and searched for the perfect place. Now that you are settled in your home, your mind may have wandered back to your finances and the monthly mortgage payments that you have committed to. Looking to become mortgage-free faster? There are benefits to paying off your mortgage off quicker, with the main one being that you will pay less interest in the long run. Take a look at our expert tips below:

 

Accelerate your payments

You are currently likely making monthly mortgage payments. However, if you switch to a bi-weekly schedule, you could pay down your mortgage faster while incurring less interest and also shortening your amortization period. With monthly payments, you are making 12 payments per year. On an accelerated bi-weekly payment schedule you would be making the equivalent of 13 full-size payments per year. This may not seem like a lot but it will certainly help you to pay off your loan earlier.

 

Increase your payments

Once you have been living in your home for a while and have a good handle on your monthly finances, you may find that you have some additional cash per month that you would like to contribute to your mortgage. Increasing your regular payments, even by $50 a month, will help you pay down your mortgage that much quicker. Make sure to discuss this option with your mortgage broker. Your mortgage may have restrictions on when you can make changes and how much you can raise your payments by.

 

Make additional payments

Though your mortgage payments are often fixed, you may be able to make additional payments towards your principal. For instance, when you come into larger sums of money, such as a work bonus or inheritance. This would depend on the nature of your mortgage and the prepayment privileges. By making additional lump-sum payments to your mortgage, you will be able to pay it down quicker and shorten the amortization period.

 

Shorten your amortization schedule

The amortization schedule of your mortgage is the time frame in which you have to pay the entire amount of the financing based on a set of fixed payments. Often the amortization period is set at 25 years, but shorter schedules are available depending on qualifications and your desire to do so. A shorter period means that your payments would be higher over that term, but your interest will be less.

 

The most important thing to remember is not to overstretch yourself financially, and to only commit to payments that you are able to make. Talk to your Capital Mortgages broker or agent to discuss your current financial situation and your future financial plans, to determine what is best for you long term and how you might be able to become mortgage free-faster.

 

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.

The Most Romantic Things to Do in Ottawa this Valentine’s Day

It’s almost February, and you know what that means — Valentine’s Day is just around the corner. Whether you like to shower your loved one with gifts or prefer a more low-key celebration, there are lots of romantic places in Ottawa to visit on this special day. Here are a few of our top suggestions of what to do in Ottawa this Valentine’s Day:

 

Go for a skate on the canal

Choose a mild winter evening to go for a romantic skate on the ice with your loved one. Hold hands and cuddle together for warmth as you travel along the longest ice skating rink in the world, right through the heart of the city. End your evening with a hot chocolate and a Beavertail, surrounded by the twinkling lights of downtown Ottawa.

 

Enjoy a spa day

Treat your partner to some well-deserved pampering at one of the wonderful spas in the Ottawa-Gatineau region. Our favourites are Le Nordik in Chelsea and the Amerispa in Cantley! Take the time to relax, reconnect and enjoy one another’s company.

 

See a show at the NAC

Does your loved one adore the theatre? Take them to enjoy a show at the newly-renovated National Arts Centre. The NAC hosts the best music, dance, and theatre shows in the country, with plenty to choose from! With the NAC’s prime downtown location, you can enjoy a stunning pre- or post-show meal at one of Ottawa’s top restaurants, such as Riviera on Sparks Street or e18hteen in the Byward Market.

 

Take a cooking class together

Do you and your partner enjoy eating out? Learn how to treat yourselves to restaurant-quality meals in the comfort of your own home by taking a cooking class. The Urban Element has a variety of impressive cooking classes to choose from hosted by some of Ottawa’s top chefs. Whether you’d like to try Moroccan or Mediterranean cuisine, or simply learn some cooking fundamentals, The Urban Element has something for everyone.

 

Dinner and drinks with a view

One of Ottawa’s hottest new drinks spots is the rooftop bar at the Andaz Ottawa in the Byward Market. Head up to Copper Spirits & Sights on the 16th floor to enjoy unparalleled sights of the beautiful city of Ottawa, while enjoying a classic cocktail. The hotel’s restaurant, Feast + Revel, boasts innovative and sophisticated Canadian cuisine guaranteed to tantalize your taste buds.

 

However you are celebrating this Valentine’s Day, we hope you enjoy yourselves! Are you and your loved one looking to secure a mortgage? At Capital Mortgages, we work to deliver unbiased mortgage advice from a vast choice of mortgage options with dozens of different lenders, saving you both time and money. 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.

Ottawa’s Coolest Outdoor Activities this Winter

Every year, winter seems to last longer and longer in Ottawa, so the best thing you can do is make the most of it! There is lots of outdoor fun to be had in Ottawa during the winter months, whether you want to get active, try something new, or spend time with family. If you’re looking to enjoy the splendour of winter this year, here are a few outdoor activities in Ottawa and the surrounding area that you should really try!

 

Winterlude

Winterlude is Ottawa’s annual wintertime festival and is always a huge hit with the entire family! Discover the joys of winter by skating on the Rideau Canal Skateway, viewing the stunning snow sculptures, and watching the ice carving competition. Winterlude events are held at various locations in Ottawa including Confederation Park and Jacques-Cartier Park in Gatineau.

 

Ice Dragon Boat Festival

Take the family out to Dow’s Lake this winter for an enjoyable and thrilling experience on the ice! The Ice Dragon Boat Festival will see 100 teams race down the Rideau Canal Skateway in boats equipped with skate-like blades, using spiked ice-picks to propel themselves along the ice. In addition to the racing, there will be free concerts, fun activities, and traditional Aboriginal and Chinese lion dancers. An event surely not to be missed!

 

Patinage en Foret

Take a road trip north of Ottawa to skate the stunning winter woodland trail at Patinage en Foret. The immaculately maintained outdoor skating trail is three kilometres long and offers a thrilling natural skating experience among the trees. After your skate, enjoy a rest with warm drink in the chalet!

 

Escapade Eskimo

Just an hour outside of Ottawa, enjoy the winter experience of a lifetime with Escapade Eskimo’s dogsledding adventures! How better to explore the beauty of winter than by sitting in a sled pulled by a number of excitable husky dogs? In addition to their dogsledding packages, Escapade Eskimo also offer opportunities for snowshoeing, sledding, and relaxing at the spa.

 

Alight at Night in Upper Canada Village

The beautiful Alight at Night experience is Eastern Ontario’s biggest outdoor light festival! See the splendour of Upper Canada Village’s heritage buildings and trees draped in thousands of twinkling lights. Enjoy a scenic wagon ride with a hot beverage, or take a ride on the vintage merry-go-round.

 

Are you looking to secure a mortgage? At Capital Mortgages, we work to deliver unbiased mortgage advice from a vast choice of mortgage options with dozens of different lenders, saving you both time and money. 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.

Why Getting Mortgage Pre-Approval is so Important

Searching for a home can be an exciting but overwhelming task. To make things go as smoothly as possible when hunting for your dream home, consider getting pre-approved for a mortgage first. Mortgage pre-approval can save you time and hassle when you finally find the perfect home! Here are a few things you should know about obtaining a pre-approved mortgage:

 

What is mortgage pre-approval?

A mortgage pre-approval will help you to determine certain financial factors before you start looking for a home, such as the maximum amount you can afford to spend on a home and the expected monthly mortgage payments associated with that price. Applying for mortgage pre-approval is free of charge and doesn’t commit you to one specific lender.

 

Why should I get mortgage pre-approval?

  • The information you receive in obtaining a pre-approved mortgage will aid you in your home search. You will be able to budget accordingly and only look at homes within your financial range of affordability.

 

  • Mortgage pre-approval also allows you to ‘lock in’ a mortgage rate for a 120 day period. This means that even if interest rates go up while you are searching for a home, you are protected and guaranteed a mortgage at the agreed upon rate provided you purchase and close on a home within the 120 day period. If your mortgage lender’s rate falls during this time, the lender will honour the lower rate.

 

  • Being approved for a mortgage also signals to real estate agents that you are a serious buyer. When it comes to placing an offer on a home, your mortgage pre-approval shows the seller that you are stable in regards to financing. It could also help bolster your chances in a multiple offer scenario.

 

How can I get pre-approved for a mortgage?

The first step in getting mortgage pre-approval is to meet with an experienced mortgage agent who will be able to help you determine the best mortgage for your individual needs. They will ask you a series of questions and request specific documentation to get a thorough overview of your financial situation.

 

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 mortgage pre-approval to finalizing your mortgage and the purchase of your home. Don’t hesitate — 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.

Important Home Maintenance Tasks for Fall

Ottawa is truly beautiful in the fall. The leaves on the trees turn from green to breathtaking shades of russet, ochre and crimson, while the crisp fall air provides a refreshing change from the humidity of summer. Fall is a time of transition, and this transition should also apply to our homes as we get ready for the coming winter months. By undertaking a few small home maintenance projects now, we can ensure the health of our homes throughout the colder weather. Our team has gathered together a few important fall home exterior maintenance tips for you:

 

Rake leaves

Taking care of your lawn is not just something to consider during the summer months, you should continue to do so during the fall and winter months as well. Make sure to rake up any leaves before the first snow falls. Leaves left under a layer of snow can rot and smother the grass, meaning you won’t have a lovely green lawn to show off when spring arrives.

 

Mow the lawn

Once you have raked up any fallen leaves, mow your lawn. Mowing the lawn is something that should be done regularly. Frequent mowing keeps your lawn under control and stops the long grass from becoming a hiding place for rodents and other small creatures, who may scurry into your home given half the chance.

 

Clean the gutters

Cleaning out gutters is far from an enjoyable outdoor task, but it is an important one! Clear your gutters of any rotten leaves, sticks or other debris to prevent them from overflowing with water in the case of a heavy rainfall this fall or winter.

 

Fix driveway cracks

If left untreated, any cracks in your driveway could pose a huge problem this winter. When snow falls and settles into the cracks, it could cause the concrete to freeze and then expand, making the cracks even bigger. Depending on the material of your driveway, find an appropriate product to fix cracks in the fall and avoid winter damage altogether.

 

Touch up chipped paint

Paint protects the exterior of your home. If paint is flaking or chipped, it means the protective layer is compromised. Chips and cracks could let in moisture, which cause mould and rot. To avoid this issue, make sure to touch up any chipped or flaking paint on the exterior of your home this fall.

 

Remove moss

Moss may look attractive covering your home but it can actually cause huge problems for both your home’s exterior and interior. Moss holds a lot of water, which can seep into your roof and, if left untreated, eventually inside your home. To avoid water damage or mould issues caused by moss, remove it before it has a chance to spread.

 

Are you looking to purchase a home this fall? At Capital Mortgages, we have the knowledge, experience and network to find you the most favourable financing now and for future terms. Do not hesitate – 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.

6 Reasons to be Thankful for Living in Ottawa

As we look forward to a wonderful Thanksgiving weekend in the beautiful city of Ottawa, we decided to put together a list of all the reasons we are thankful to be living in our Nation’s Capital. Ranked the best place to live in Canada by MoneySense in both 2016 and 2017, Ottawa blends city living with a small town feel — making it a popular choice of residence for many people. Here are just a few of the reasons why we love living in Ottawa!

 

Nature

Ottawa boasts an abundance of beautiful green space. With its many hiking and biking trails, you can explore everything the city has to offer without driving a car. Ottawa is also not far from the stunning vistas of Gatineau Park, a popular destination for outdoor lovers — any season!

 

Restaurants

In recent years, Ottawa’s culinary scene has exploded. From haute cuisine to hidden hole-in-the-wall eateries, this growing foodie movement means that whatever your taste, you’ll find something to satisfy it in Ottawa.

 

History

The city of Ottawa has a rich and interesting history, and there are a number of places to go to learn more about the city and its past. You can stroll along the Rideau Canal —  the oldest continuously operated canal system in North America and, during the winter, the longest ice skating rink in the world. Or you could take a stroll around Parliament Hill and learn about Canada’s political past. The bustling Byward Market is also filled with historical treasures just waiting to be explored!

 

Culture

One of Ottawa’s cultural hubs is the NAC, where you can experience the best in music, theatre, comedy and dance. If you’re a fan of music festivals, Ottawa can scratch that itch too — the city plays host to a number of festivals throughout the year, such as Bluesfest, CityFolk, Escapade and the Ottawa Jazz Festival. If world-class museums and art galleries are more your thing, visit the Museum of History, the War Museum, the National Gallery of Canada, or the recently renovated Ottawa Art Gallery.

 

Family

There’s no denying that Ottawa is a fantastic city in which to raise a family. It boasts great schools and healthcare, and is economically stable. As many homebuyers are getting priced out of bigger cities, such as Toronto and Vancouver, Ottawa has remained affordable.

 

Shopping

The recent expansion of the Rideau Centre has brought many popular high-end stores to Ottawa, turning the mall into a shopaholic’s dream. For those shoppers looking for something a little more unique, there are plenty of fantastic local businesses and boutiques in the Byward Market, Westboro and Hintonburg.

 

We hope that you enjoy a wonderful Thanksgiving with friends and family. If you are looking to secure a mortgage — consider choosing Capital Mortgages. We work to deliver unbiased mortgage advice from a vast choice of mortgage options with dozens of different lenders, saving you both time and money. Contact us today to get started!