Understanding Construction Financing Mortgages in Canada: A Comprehensive Guide

Understanding Construction Financing Mortgages in Canada: A Comprehensive Guide

Construction financing mortgages are an essential tool for homeowners and investors looking to build new homes or renovate existing ones. In Canada, construction financing mortgages are becoming increasingly popular, allowing individuals to build their dream homes or develop real estate projects. In this blog, we will provide a comprehensive guide to construction financing mortgages in Canada, covering everything from eligibility criteria to the application process. 

1.What is a Construction Financing Mortgage?  

  • A construction financing mortgage is a type of mortgage that provides financing for the construction or renovation of a property. This type of mortgage is typically used by individuals or investors who are building a new home or developing a real estate project. 

2.Eligibility Criteria 

  • Credit Score: Applicants for construction financing mortgages must have a good credit score to qualify for the mortgage.  
  • Income: Lenders will assess the income and employment status of applicants to ensure they have the financial capacity to repay the loan.  
  • Down Payment: Applicants must be able to provide a significant down payment, typically ranging from 20-25% of the total project cost.  
  • Property Appraisal: Lenders will require a property appraisal to ensure the value of the property being built or renovated is adequate to secure the loan. 

3.Benefits  

  • Customization: Construction financing mortgages allow homeowners to build their dream homes or investors to develop real estate projects according to their specifications.  
  • Competitive Interest Rates: Construction financing mortgages typically have competitive interest rates, making them an attractive option for borrowers.  
  • Control: With construction financing mortgages, borrowers have greater control over the project and can ensure that it is built according to their standards and vision. 

4.How to Apply for a Construction Financing Mortgage 

  • Determine Project Budget: Before applying for a construction financing mortgage, it’s important to determine the total project cost and budget accordingly.  
  • Find a Lender: Research and compare lenders offering construction financing mortgages to find the best terms and rates for your circumstances.  
  • Gather Required Documents: To apply for a construction financing mortgage, you will need to provide proof of income, employment status, down payment, and property appraisal.  
  • Get Pre-Approved: Pre-approval for a construction financing mortgage can give you a better idea of how much you can afford and what your interest rate and monthly payments will be. 
  • Finalize the Application: Once you’ve found a suitable lender and property, you can finalize your construction financing mortgage application with the lender. 

5.Tips for Success 

  • Plan Ahead: Careful planning and budgeting can help ensure the success of your construction project and reduce the risk of cost overruns or delays.  
  • Work with Professionals: Seek the guidance of professionals such as architects, builders, and lawyers to ensure that your project is built to code and meets all legal requirements. 
  • Communicate with Your Lender: Keep your lender informed of any changes or issues that may arise during the construction process to avoid any misunderstandings or delays. 
  • Monitor Progress: Regularly monitor the progress of your construction project to ensure it is being built to your specifications and within budget. 

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.

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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.

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Open, Closed, and Convertible Mortgages

Open, Closed, and Convertible Mortgages: Pros and Cons

When it comes to getting a mortgage in Ottawa, there are a few different options to choose from, including open, closed, and convertible mortgages. Each type of mortgage has its own advantages and disadvantages, so it’s important to understand the differences before making a decision. 

Open, Closed, and Convertible Mortgages

Open Mortgages 

An open mortgage is a type of mortgage that allows you to pay off the loan at any time without penalty. This is a good option if you plan on paying off your mortgage quickly or if you want the flexibility to make large payments without penalty. However, open mortgages typically have higher interest rates than closed mortgages, so they may not be the best choice if you plan on taking a long time to pay off your loan. 

Closed Mortgages 

A closed mortgage is a type of mortgage that has a fixed term, typically anywhere from 1 to 10 years. During the term of the mortgage, you’ll make regular payments based on a fixed interest rate. While closed mortgages typically have lower interest rates than open mortgages, they come with restrictions on how much you can prepay or pay off during the term of the loan. If you want to pay off your mortgage early, you may face penalties. 

Convertible Mortgages 

A convertible mortgage is a type of mortgage that allows you to convert from a variable rate mortgage to a fixed rate mortgage, or vice versa, during the term of the loan. This can be a good option if you’re not sure which type of mortgage is best for you. You can start with a variable rate mortgage and then switch to a fixed rate mortgage if interest rates start to rise. However, convertible mortgages typically have higher interest rates than closed mortgages. 

Which Type of Mortgage to Choose Between Open, Closed, and Convertible Mortgages?

Choosing the right type of mortgage depends on your personal financial situation and your long-term goals. If you want the flexibility to pay off your mortgage quickly or make large payments, an open mortgage may be the best choice. If you want a predictable payment schedule and a lower interest rate, a closed mortgage may be the better option. And if you’re not sure which type of mortgage is best for you, a convertible mortgage can give you the flexibility to switch between a fixed and variable rate mortgage as needed. 

When it comes to choosing a mortgage in Ottawa, it’s important to do your research and work with a reputable lender who can help you understand your options and make an informed decision. By understanding the differences between open, closed, and convertible mortgages, you can choose the one that best fits your needs and achieve your dream of homeownership. 

 

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.

the Mortgage Approval Process

What to Expect During the Mortgage Approval Process

The mortgage approval process can be overwhelming for first-time home buyers, especially if you are not familiar with the process. Understanding what to expect during the mortgage approval process can help you better prepare for the process and increase your chances of getting approved for a mortgage. 

Here is a step-by-step guide to what you can expect during the mortgage approval process: 

1.Check your credit score before the mortgage approval process

Before you start the mortgage approval process, it’s important to check 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. You can check your credit score for free through a credit reporting agency or by requesting a copy of your credit report from one of the two major credit bureaus in Canada: Equifax or TransUnion. 

2.Determine your budget and financial goals

It’s important to have a clear understanding of your budget and financial goals before you start the mortgage approval process. This will help you determine how much you can afford to borrow and will allow you to set realistic goals for your home purchase. Consider factors such as your income, debts, and monthly expenses when determining your budget. 

3.Research mortgage options

Once you have a good understanding of your budget and financial goals, it’s time to start researching mortgage options. There are many different types of mortgages available in Canada, including fixed-rate mortgages, variable-rate mortgages, and adjustable-rate mortgages. Each type of mortgage has its own unique set of terms and conditions, and it’s important to understand the differences between them in order to find the mortgage that best meets your needs. You can research mortgage options online, or you can work with a mortgage broker or financial advisor to compare your options. 

4.Get pre-approved during the mortgage approval process

Getting pre-approved for a mortgage can be a helpful step in the mortgage approval process. Pre-approval involves submitting a mortgage application and providing the lender with information about your credit history, income, and other financial details. The lender will then review your application and provide you with a pre-approval letter, which outlines the terms and conditions of your mortgage. Pre-approval is not a guarantee of mortgage approval, but it can give you a better idea of how much you can borrow and can help you shop for homes within your budget. 

5.Submit a mortgage application

Once you have found a home that you want to purchase, it’s time to submit a mortgage application. This involves providing the lender with detailed information about your credit history, income, debts, and other financial details. The lender will use this information to assess your creditworthiness and determine whether you are eligible for a mortgage. 

6.Wait for approval

After you have submitted your mortgage application, it’s time to wait for approval. The lender will review your application and may request additional documentation or information. This process can take anywhere from a few days to a few weeks, depending on the lender and the complexity of your application. 

7.Review and sign the mortgage documents during the mortgage approval process

If your mortgage application is approved, the lender will provide you with mortgage documents for you to review and sign. It’s important to carefully review these documents and understand the terms and conditions of your mortgage before signing. 

8.Close the mortgage

Once you have reviewed and signed the mortgage documents, it’s time to close the mortgage. This involves paying any closing costs, such as legal fees and land transfer the lender with the down payment on your home. The lender will then disburse the funds to the seller, and you will become the legal owner of the property. 

9.Make your mortgage payments 

Once your mortgage is closed, you will be required to make regular mortgage payments to your lender. These payments will typically include principal, interest, and any other fees or charges outlined in your mortgage documents. It’s important to make your mortgage payments on time in order to maintain a good credit score and avoid defaulting on your mortgage. 

In conclusion, the mortgage approval process can be overwhelming for first-time home buyers but understanding what to expect can help you better prepare for the process and increase your chances of getting approved for a mortgage. The process typically involves checking your credit score, determining your budget and financial goals, researching mortgage options, getting pre-approved, submitting a mortgage application, waiting for approval, reviewing, and signing the mortgage documents, closing the mortgage, and making regular mortgage payments.  

If you are looking for guidance and support during the mortgage approval process, consider working with a mortgage broker or financial advisor. They can help you understand the process, as well as your mortgage options, and can assist you in finding the mortgage solution that best meets your needs. 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

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firm mortgage

Unlock Your Dream Home: Benefits of Acquiring a Firm Mortgage Approval

Unless you’re independently wealthy, buying a home will likely be the largest financial transaction of your life. It’s not surprising, then, that most mortgage applicants feel anxious about meeting lender criteria and qualifying for financing. But with the right information and strategy, even individuals with average credit can secure firm mortgage approval. Reduced interest rates, waived fees, and other incentives are standard features of firm mortgages. While these advantages aren’t available with every lender, they can substantially reduce the cost of borrowing. Firm mortgage terms also tend to have shorter repayment periods and lower monthly payments than typical loans. As a result, firm mortgages are almost always cheaper over the long term compared to variable rate loans. Whether you’re currently renting or hoping to buy in the near future, learning more about firm mortgages could lead to an improved financial outlook for your future home purchase.

What is a Firm Mortgage?

A firm mortgage is a type of financing that offers a specific rate and term. Unlike an adjustable rate mortgage (ARM), the interest rate and monthly payment on a firm mortgage won’t fluctuate over time based on the fluctuations of an external index. A firm mortgage is often used as a term to describe a loan that has been approved based on a borrower’s financial strength, not necessarily a specific type of loan. In other words, a homeowner with a firm mortgage might have a 30-year fixed rate mortgage loan, a 15-year fixed rate mortgage loan, or maybe even an ARM.

Why Should You Care About a Firm Mortgage?

Fixed-rate mortgages tend to be more stable than adjustable rate mortgages (ARMs), making it easier to forecast future home loan payments. ARMs can have high upfront fees, long application timeframes, and unsure future interest rates that make them a less desirable option. In addition to the convenience of knowing your monthly payment will remain the same for the life of your loan, a firm mortgage could qualify you for lower interest rates and reduced closing costs. If you’re in the market for a home loan, it could be the easiest path to securing firm mortgage approval.

What Are the Requirements?

Lenders may vary, but all reputable firms will conduct a credit check and review your current debt-to-income ratio (DTI). Your credit score may also be considered, but it’s not guaranteed that you’ll meet the minimum requirements for a firm mortgage. If your credit score and debt-to-income ratio are below average, you may still be able to secure approval by putting a down payment of at least 20 percent. Many lenders will also consider factors like your employment and length of residence in your area, so be sure to review your options carefully.

Strategies to Earn Approval

If your credit score is low or if you have high debt-to-income ratios, you may need to improve your financial standing before a mortgage lender will offer you a firm mortgage. Fortunately, there are a number of ways you can boost your credit standing and strengthen your application. Reduce Debt – The most obvious way to improve your debt-to-income ratio is to pay off as much debt as possible. Paying off high-interest credit cards and other unsecured debts will lower your debt-to-income ratio and improve your credit score. Getting a firm mortgage approval increases the likelihood that you’ll be approved for a higher loan amount, too. Increase Your Income – Another way to strengthen your application is to increase your income. If you’re working steadily, it’s possible to increase your income by applying for a promotion, getting a raise at your current job, or starting a side hustle.

Bottom Line

If you have average credit or have struggled to improve your credit score, you may be able to get approved for a firm mortgage. It is often a better choice anyway since it’s less risky than a variable rate mortgage. While it may take some time to improve your credit score, you can take steps now to improve your chances of getting approved for a firm mortgage. In most cases, lenders will also require a down payment of at least 20 percent to secure a firm mortgage.

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

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The Fundamentals of Construction Financing

The Fundamentals of Construction Financing: A Guide For Non-Profits and Developers

Construction financing is a bit of a catch-22. It can seem unapproachable and inaccessible, especially if you’re new to the game. Developers and non-profits might not have the same access to lenders or investors as larger organizations do, but that doesn’t mean they should be discouraged from pursuing construction financing further. With the right advice and resources, you can learn more about this type of funding and how it can work for your organization. If you are currently working on an upcoming construction project or have plans to in the near future, it is important to understand how construction financing works. Construction financing comes in many forms, which makes it important for potential developers and non-profits to understand exactly what their options are before moving forward with any one particular plan. Read on to discover more about construction financing and which program will work best for your organization moving forward.

What is Construction Financing?

Construction financing is a type of funding that provides organizations with the money they need to start construction. Unlike regular lending options, construction financing is not meant to be repaid through interest but rather through the profits generated by the business or project on the site once it is completed. The construction period is the most critical time for developers, as they need to have the necessary funds to get the project up and running as quickly as possible. Construction financing is most often used to fund the construction of new buildings or renovations of existing structures. This type of funding is important for both developers and non-profits, as it gives them the capital they need to make sure the project moves forward and does so in an efficient way. Construction financing is time-sensitive and must be completed as quickly as possible.

Why Is Construction Financing Important?

The construction period is the most critical time for developers, as they need to have the necessary funds to get the project up and running as quickly as possible. Without construction financing, it can be difficult to obtain the funds needed to get a project off the ground. For non-profits, this financing can help make a construction project move forward that may have otherwise been indefinite. If construction financing is received, then the project can be completed and that money can be used to further the mission of the organization.

Loans and Grants for Developers

If you are a non-profit organization, you may be able to obtain a grant to fund construction. However, if you are a developer, you will likely need to obtain a loan to make the construction project happen. With loans, there can be several different types and options to choose from, which makes it important to do your research on the best option for your organization. Construction loans are common for development and are provided by financial institutions. There are also other options, such as bonds, that can be used as a form of construction financing. This is a type of loan with a larger amount that is issued by multiple people. Because this loan is from a larger group of individuals, it can be easier to obtain than a loan from a single financial institution.

Equity Investments for Developers

An equity investment is when an investor gives money to the developer in exchange for a percentage of the profits that will be made once the project is complete and operational. Equity investments can be beneficial for developers, especially those who may need a bit more money than they can obtain through more traditional construction financing options. Equity investments are common in the commercial real estate industry, but they can also be used to fund smaller construction projects. If you are a developer, it can be helpful to find an investor that wants to get involved in a construction project. It is important to get the word out about your project and who you are looking for. It can be helpful to work with a financial advisor who can help you to develop a pitch for investors and find the right people to approach.

Bottom Line

When searching for construction financing, it is important to understand what your options are. It can be helpful to get in touch with financial institutions to see what types of loans they offer and what they require in order to obtain one. It can also be helpful to talk with other developers and get their advice on the best way to approach construction financing. If you are a developer, it can be helpful to get the word out about your project as soon as possible so that you can start receiving interest from potential investors.

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

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5 Ways to Increase Your Property Value

5 Ways to Increase Your Property Value

When you buy a home, one of your primary goals is to make equity in that property and sell it for more than you bought it for someday. However, not everyone who buys a home does so with that intention from the start. In some cases, people buy homes because they need a place to live now and cannot wait to upgrade or resell at a later point. In other words, some people buy houses as an investment rather than a place to call home until they can afford something better. Some properties are worth more than others because they have certain amenities or are in a prime location. You may think you’re getting a good deal on your property right now, but if you plan on selling in the future, there may be things you can do right now to increase its value.

Know the local market

When you buy a home, it’s important to understand the local market. This will help you determine how much a comparable property in your area is worth. It will also help you to determine how much you should pay for a property. The amount of equity you’re able to build in your home is directly related to the amount others will be willing to pay for it. If you want to sell your home in the future, you need to know the current market value of your property. This will help you to determine what price you should list your home at so that you don’t end up with a lot more house than you can sell.

Keep your home in great condition

If you want to increase your property’s value, you need to maintain it in great condition. This means keeping your home clean inside and out. It also means that any small repairs need to be addressed as soon as they’re discovered. If you’re able to keep your home in good shape, potential buyers will be able to see the potential in your home. They’ll be able to imagine themselves living there and will be willing to pay a higher price for it.

Update your kitchen and bathrooms

A kitchen is one of the most important rooms in any home. If you’re updating your kitchen, you have a chance to make your home a lot more valuable. New appliances, new countertops, and new cabinets can make a big difference in the price of your home. If your bathroom is outdated, you can also increase your home’s value with a new bathroom. Replacing old fixtures, adding new tile, and installing new cabinets will make a big difference in the price of your home.

Add fresh landscaping

A fresh landscaping job can make a big difference in the price of your home. If your yard is lacking curb appeal, it’s easy to see how prospective buyers could be turned off. If you can make your home appealing to prospective buyers, they’ll be more likely to pay a higher price for it. A new landscaping job can add curb appeal and make your home more valuable.

Add value with small renovations and repairs

Newer homes are more valuable than older homes. If you have a house that has been on the market for a while, you may want to consider making some minor renovations. If your roof, heating and cooling system, or other major appliances are nearing the end of their lifespan, you may want to replace them with new ones. This may cost you a few thousand dollars, but it will add value to your home and make it more attractive to buyers.

Conclusion

Making improvements to your home can help you increase its value. However, you should make sure that any renovations or repairs you make are high-quality so that they will last for years to come. If you want to sell your home for the highest possible price, you may want to consider hiring a professional real estate agent. They can help you determine the best ways to increase your home’s value and make listing your home easier.

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

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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

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Ways to Qualify for a Home Line of Credit Capital Mortgages Ottawa

Qualify for a Home Line of Credit

3 Ways to Qualify for a Home Line of Credit

Mortgage loans and home equity lines of credit are two ways to borrow against your home. But, which is better?

Loans have a higher interest rate than lines of credit, but the money you get is usually in one lump sum. Lines of credit are often lower-interest and you can use the money every month. There are several factors to consider when it comes to deciding between a home loan or a residential line of credit. Here’s how to qualify for either type of line of credit.

Decide if you need a lump sum or monthly payments

Do you need a lump sum or monthly payments? This is one of the biggest factors in deciding between a home loan and line of credit. Home loans are for when you want to borrow money all at once, like for a down payment on another home or car. Lines of credit are meant for borrowing throughout the year.

A mortgage loan is also appropriate if you have good credit but not enough savings to cover your needs, whereas a home equity line of credit is appropriate if you have good or excellent credit and sufficient reserves.

Home equity lines of credit are often lower-interest than mortgages and it’s easier to qualify because they base qualifications on your general credit score, not your mortgage history. You can qualify for a line of credit with bad or little to no history just as easily as someone with a perfect mortgage history. Conversely, people who have bad or little to no history may not qualify for a home loan at all because they lack the required income needed by lenders.

Consider your debt-to-income ratio

When thinking about qualifying for a home line of credit, your debt-to-income ratio is one of the first things to think about. Debt-to-income ratio is the debt you owe divided by the gross income that you make from your job.

For instance, if you are making $40,000 per year and have $1,000 in monthly debt payments (including rent), your debt-to-income ratio would be 20 percent. It would be 15 percent if you had $500 in monthly debt payments and $25,000 in annual income.

If your debt-to-income ratio is too high, you might not qualify for a line of credit on your home. The best way to figure out if you will qualify when applying for a mortgage or a line of credit is to use an online calculator like this one: https://capitalmortgages.com/mortgage-calculators/

Choose the right lender for you

First, find a lender that is right for you and your needs. Explore local lenders as well as national lenders. Even if you’re not planning on moving soon, it pays to shop around. Your credit score is an important factor when qualifying for a line of credit. Some lines of credit require a high credit score while others will allow you to qualify with a lower score.

Capital Mortgage broker in Ottawa can assist you.

Home equity lines of credit are often preferable for many people because they can be used every month. But, there is no lump sum payout at the end like when you get a home mortgage loan. If you need money now, then choose a home equity line of credit. If you don’t need the money all at once but want it in one lump sum, get a home loan instead.

Know the differences between a home loan and a line of credit

A home loan is usually a lump sum of money you receive in one payment. A line of credit is when you pay interest on the money you borrow and can use it in increments over time.

The main difference between a home loan and a line of credit is the way that they are paid back. With a home loan, you’ll only need to pay one lump sum at the end of your repayment period. With a line of credit, you will need to pay both interest and your principal balance monthly until the term ends.

Another difference between these two types of borrowing is the interest rate. Home loans will typically have a higher interest rate than lines of credit because there are more risks associated with them. Lines of credit are less risky for lenders so they charge less for those loans. It’s important to know that there may be hidden costs with both types of borrowing, so make sure to read all the fine print before deciding which type to take out.

Qualify for a home line of credit
  • A home line of credit is an excellent alternative to a mortgage loan if you want to borrow money over the course of a year.
  • Home equity lines of credit work much like a credit card, but they are secured by your home. This means you won’t be able to borrow more than the current value of your house.
  • You qualify for a residential line of credit by meeting one of two conditions: (1) You need a home equity line on your primary residence or (2) You have at least 20 percent equity in another property that can serve as collateral.
Qualify for a mortgage loan

If you plan on borrowing a large sum of money, it’s best to qualify for a mortgage loan. This type of loan is also better if you have an event like marriage or the birth of a child that requires you to finance an expensive purchase.

When qualifying for a mortgage, your credit score is the most important factor. You might also need collateral in the form of stocks, bonds or other investment instruments. If you have enough equity in your home, then you can qualify for a home equity line of credit (HELOC).

Conclusion

There are a number of options for financing your home purchase, but a line of credit can be a great way to take advantage of lower interest rates and a more flexible repayment schedule. Make sure you know what you’re getting into before you apply.

This isn’t a loan — it’s a line of credit. When you apply for a home line of credit, you’re asking for permission to withdraw money from your account as you need it. You’ll have to provide your bank with details like your income, debt-to-income ratio, and cash on hand. It’s important to think carefully about whether you really need the money upfront or if monthly payments would work better for you.

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

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

You can also click here.

6 Myths and Facts of Reverse Mortgages

 

Over years of owning a home and making mortgage payments, you’ve built a nicely-sized nest egg of home equity. However, that portion of your net worth is essentially untouchable until you choose to move or sell your home. A reverse mortgage allows you to borrow against your home’s value to pay off existing debt, make home improvements or cover other expenses.

 

Reverse mortgages are considered “reverse” because instead of making mortgage payments, the loan provides payment to the borrower. Borrowers can receive funds in installments or one lump sum, and also have the flexibility to repay the principal and interest in full at any time. Here are some common “myths” and facts about reverse mortgages:

 

1) MYTH: Anyone can get a reverse mortgage.

FACT:  Only Canadian homeowners 55 or older can get a reverse mortgage. Other qualifications include your property type, location and market value.

 

2) MYTH: To get a reverse mortgage, your home must be completely mortgage-free.

FACT: You don’t need to be completely mortgage-free to get a reverse mortgage. In fact, some borrowers use reverse mortgages to pay off existing mortgages and debts.

 

3) MYTH: I will have to pay taxes on the money I receive.

FACT: All money you receive for a Canadian reverse mortgage is tax-free. These reverse mortgages don’t affect Old Age Security or other government benefits you may already be receiving.

 

4) MYTH: I will have to make monthly payments on what I borrow.

FACT: You don’t have to make monthly payments on the money you borrow (interest or principal payments alike) until you choose to move or sell your home.

 

5) MYTH: A reverse mortgage will allow me to borrow without limits.

FACT: A reverse mortgage allows you to borrow up to 55% of your home’s value. This protects a borrower from borrowing too heavily against a home’s value.

 

6) MYTH: I may be forced to move as a result of a reverse mortgage.

FACT: Because you aren’t required to make monthly payments, you’ll never be required to sell or move as a result of changing home values. The amount you will eventually have to repay won’t exceed the fair market value of your home when it’s sold (provided you properly maintain your property).

 

Interested in figuring out if a reverse mortgage is right for you? Contact Capital Mortgages today to learn more about reverse mortgages and get a free quote.

 

What is a Home Equity Line of Credit (HELOC)?

Did you know you can easily finance purchases related to home ownership (i.e., renovations or home repairs) by using your home as a borrowing tool?

 

A Home Equity Line of Credit (HELOC) is a loan secured against the equity of your home. Because you’re using your home as collateral, this often means a lower interest rate on your loan. Additionally, borrowing to improve a home may result in increased home value.

 

How does a HELOC work?

 

Home equity is the difference between the value of a home and the unpaid balance of its mortgage. This value increases over time as a homeowner pays off a mortgage and the value of a home increases. HELOC loans can be distributed for up to 65% of a home’s appraised value, and can be combined with a regular mortgage for a maximum of 80% of a home’s appraised value.

 

A HELOC is set up as a line of credit with a set maximum draw, rather than a fixed dollar amount. Once a HELOC is negotiated, you can borrow up to your limit at any time. Much like a mortgage or credit card payment, you make minimum monthly payments on the borrowed balance. You would have a draw period during which you can use your line of credit, and a repayment period during which is must be repaid.

 

How is interest calculated?

 

HELOC interest is often calculated on a daily basis, since balances may change at any time depending on draws and payments. Your rate of interest is divided by 365, and then multiplied by the average daily balance during the month. For instance, a 28-day month may mean less interest than a 31-day month.

 

Are you interested in funding a temporary home project or other expense by using the equity in your home? To see if a HELOC would be suitable for your needs, contact Capital Mortgages 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.

Refinancing Your Mortgage – What You Need To Know

There are a number of reasons why you might consider refinancing your property. One of these could be to capitalize on the equity you’ve built up in your home. For example, using the equity in your home can be a lower cost way of accessing funds than taking out a traditional loan. To learn more about whether refinancing could benefit you, we’ve gathered together some important information on the ways in which a refinance can be used:

 

Take advantage of low interest rates

Over the years interest rates can fluctuate and, since the time you took out your original mortgage, the interest may have moved. Through refinancing, you are able to take advantage of these new, potentially lower, rates and lower your payments.

 

Consolidate debt

If you are burdened by large monthly payments on multiple high interest credit card debt, you can refinance your mortgage to consolidate your debt into your mortgage at a lower interest rate, thus allowing you to save money and increase your cash flow.

 

Combine multiple mortgages into one

Paying various installments for multiple mortgages can be stressful. With refinancing, you are able to consolidate these mortgages into one with a fixed interest rate and possibly a longer repayment duration.

 

Access the equity in your home

An added bonus of home ownership is that you have access to financing at more competitive rates than unsecured loans or lines of credit. You can use the equity in your home to pay off debts, free up an amount of cash to do some home renovations, buy an additional property, invest in stocks, or for university tuitions. Since a mortgage is a secured loan, the interest applied is considerably lower than that of an unsecured loan.

 

If you would like to learn more about mortgage refinancing, please give the team at Capital Mortgages a call today. By carefully studying the status of your current mortgage and comparing it to your income and other debts, we can help you pick the refinance solution that best suits your current financial status.

Renew your Mortgage with Ottawa Mortgage Broker: Capital Mortgages

How Does a Reverse Mortgage Work – What You Need To Know

Of all the different age groups that are eligible to take out some form of financial aid, it is the senior citizen age group that requires the most financial assistance yet have the least amount of options. This is because a majority of those within this age group have already retired and only rely on their savings and pension as a source of funds to help them live out their remaining years. Through the introduction of the reverse mortgage, senior citizens have now been given the opportunity to get the financial aid that they need for medical care, home improvement among other financial aids.Still unknown to many, this retirement method is helping senior citizens by eliminating their monthly mortgage payments and putting money in their bank account

This has been made possible because unlike traditional forms of mortgages and loans available in the market, reverse mortgages are exempted from any tax obligations, and the responsibility of the payment falls on the financial institution or creditor. Senior citizens who have been granted a reverse mortgage are not required to make any form of repayments to the financial institution or creditor for as long as one or both senior citizens remain to live in the home whose equity has been used.

If you are considering taking out a reverse mortgage, there are a few requirements you would need to present when you go to a creditor or financial institution. Here are the requirements that you would need.

Age Requirement

The reverse mortgage is available only for individuals who are at least 55 years and above. Once it is proven that both spouses are at least 55 years of age and above, both will become eligible to take out a reverse mortgage.

Home Equity

The equity value of your home is its fair market value minus any existing loans that you may have taken out. To get the home equity value of your property, you would need to attain the services of an appraiser. For your home equity to also be eligible, you must be in ownership of a permanent type of property such as a single house, an apartment or condominium. If you live in a mobile home or a trailer, you would not be able to qualify for a reverse mortgage.

Home Equity to be Applied Must be Primary Place of Residence

If you have been fortunate enough to be able to purchase a vacation home, you would not be able to use this towards the reverse mortgage. This is because the reverse mortgage can only utilize the home equity of the house that you have stayed most of your life with, which is your primary place of residence.

Downsides Of A Reverse Mortgage

Even though this method seems like an easy way out, there are still some factors that you may need to consider.Let us look at a few:

Interest: A reverse mortgage is still a loan so that it will accumulate interest over time. However, there are no monthly payments on a reverse mortgage. The amount you have to pay back grows as time goes by, but the loan will not be due until both you and your partner have died or you have decided to sell your home. Even though the amount you have to pay grows, the loan repayment money never exceeds the value of your home.

Complicated: Too many senior citizens, reverse mortgage loans may seem like a complicated process.

Estate Value: The estate value may lower as days go by. This is something that you may need to consider if you plan to leave your property to children.

There is Not Enough Cash To Be Tapped: You may be disappointed to learn that you can only use some your home equity, even if you have a lot of home equity. Even though your home may be worth more, rules evaluate your equity by a maximum home value. However; the actual loan amount will be determined by a calculation using current interest rates, the amount you owe on the home, your age and the appraised value of your home.

How Can You Get A Reverse Mortgage?

It can take you just a few hours to speak to a qualified mortgage broker at Capital Mortgages to request a quote. We can help you understand how Reverse Mortgages work and calculate how much you can get.

As with any major financial decision, securing a reverse mortgage is not to be entered into lightly. All reverse mortgages require you to seek professional counseling to make sure you understand all the risks and rewards of this mortgage product.

 

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Should You Use Your House Equity To Consolidate Your Debts

Given high credit card interest rates and associated fees, debts can build quickly. Given the overwhelming pressure and stress that these financial problems can create, many people are looking for a fast and effective way out. If this sounds familiar, you may be wondering should you use your house equity to consolidate your debts. This will give you the opportunity to turn all of your monthly payments into one easy manageable payment. It can also significantly reduce the amount of money that you are paying in interest. There are, however, a number of factors that you should consider before making this major decision.

Before making any decisions of your options in debt relief, you have to make an in-depth assessment of your current financial circumstances in order to determine whether or not outside assistance is really necessary. You may have the ability to pay down your debt within a fairly short period of time by simply reducing your spending a building a tighter budget.

There are, however, some signs that indicate a dire need for help. For instance, if credit cards have become essential rather than a mere luxury, you probably need assistance. You also have to account for regular borrowing with a regular inability to repay and the ability to only make the minimum payments on your past due accounts. If your wages are being garnished or if creditors have begun to stalk you, taking fast action is likely essential.

Debt consolidation is a loan that will allow you to consolidate or group a number of accounts into a single, monthly payment. If you own money to three credit card companies, you would be able to pay each of these cards off. The only obligation that you would have would be to pay down the loan that you used to consolidate these accounts. You would be paying the same amount of money, but it would be paid in a single payment rather than three.

These loans are tied directly to the home mortgage of borrowers. These loans can be obtained by taking out a second mortgage or refinancing. The funding you receive will be backed by your home equity and it will probably have a much lower interest rate.

Lower interest rates are the result of the debt being secured by collateral. This is different from unsecured debt which is not tied to any collateral and therefore comes with significantly higher interest. Unsecured accounts invariably entail higher risk and thus, lenders charge more for them. Although having a lower interest rate can be beneficial, there is also the risk of losing any collateral that you’ve used to secure your loan. This is why it is important to consider all factors before applying for this funding.