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 Benefits of Taking Out a Second Mortgage

The Benefits of Taking Out a Second Mortgage

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

What is a Second Mortgage?

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

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

Benefits of Taking Out a Second Mortgage

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

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

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

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

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

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

How to Qualify for a Second Mortgage

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

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

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

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

How to Apply for a Second Mortgage

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

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

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

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

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

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

Types of Second Mortgages

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

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

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

What to Look Out For

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

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

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

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

Conclusion

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

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

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

You can also click here.

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

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

You can also click here.

Tips for Buying a Home with a Mortgage Broker

What a Mortgage Broker Does

What a Mortgage Broker Does: Tips for Buying a Home

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

What a mortgage broker does

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

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

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

Mortgage brokers work with many lenders

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

Their greatest benefit: A higher approval rate

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

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

They understand your finances and will negotiate on your behalf.

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

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

A broker will explain your options

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

Choose the right mortgage broker

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

Choose the right mortgage for you

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

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

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

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

You can also click here.

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.

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.

Essential Cleaning Tools for Your Home

Whether you have just moved into your first home and need to put together a kit of cleaning supplies, or your existing tools need an update, we’ve put together a comprehensive list of the most important and essential cleaning tools to keep your home tip top and squeaky clean!

 

Microfiber cloths

This little cloths are fantastic in pretty much every room of the house! They are super soft so won’t scratch surfaces, and are great at picking up dust and leaving a streak-free finish. They work amazingly well on windows and mirrors.

 

Swedish dishcloths

Never heard of a Swedish dishcloth? You’ve been missing out! Swedish dishcloths are amazing multi-tasking tools that can take the place of your kitchen sponges and paper towels. Made from a blend of cellulose and cotton, they are natural, super absorbent, and can even be washed in the dishwasher or washing machine. Perfect for wiping down countertops and mopping up spills!

 

Rubber gloves

Protect your hands when using harsh cleaning supplies by wearing a pair of rubber gloves. Gloves are also good to wear when washing dishes!

 

A bucket

A large bucket can be used to store cleaning supplies when not in use, as well as for a multitude of other jobs around the house. Fill it up when cleaning floors, windows, or even scrubbing your back deck.

 

A squeegee

These handy little items work well in the bathroom for cleaning the shower after it’s been used! By wiping the water droplets away immediately you can prevent the appearance of mould. Squeegees are also great for cleaning windows.

 

Scrubbing brushes

Sometimes a cloth just won’t stand up to the task! In places such as the bathroom or kitchen, you may have to use a bit of elbow grease to shift stubborn stains from tiles or around the sink. For those smaller harder-to-reach spots, such as the grout between tiles or around the faucet, you can use an old toothbrush!

 

A dustpan and brush

Handy for tidying up crumbs on hard floor surfaces such as linoleum or hardwood, especially if you have children or pets! A full-size broom with a clip on dustpan will prevent you having to bend over or kneel when sweeping up.

 

A vacuum cleaner

A heavier duty items to keep floors clean, especially if you have rugs or carpets! By keeping your floors free of dust and hair, you can keep allergies at bay.

 

For more useful and important home tips, make sure to follow Capital Mortgages on Facebook, LinkedIn and Twitter! Looking for a mortgage? We offer step-by-step personal assistance from our team of knowledgeable mortgage brokers to make your life easier! Don’t hesitate to reach out to 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.

Tips for Downsizing to a Smaller Home

Are you downsizing to a smaller home this year? Perhaps your children have flown the nest, or maybe you’re finding it difficult to maintain such a large home — either physically or financially. Whatever the reason, there are a few things you should take into consideration when looking to downsize. Here are a few of our Capital Mortgages top tips for downsizing to a smaller home:

 

Make an inventory

Taking an inventory of existing items is a good way to see what you have and what you want to keep, discard, sell, or donate. You may find that you have a number of duplicate items: the kitchen is the worst area for this! Do you really need all three pairs of salad tongs?

 

Sell unwanted items

Selling off your large or unwanted items is a good way to make a little bit of extra money while you downsize. This extra cash could then be used towards new, more appropriate items, for your new space. Online marketplaces are a great place to list your unwanted items. You can also donate certain items, or ask family members if there is anything they would be interested in taking.

 

Measure, measure, measure!

Take note of the dimensions of your new smaller home as well as your existing furniture. Before you move, you should know which furniture items will easily fit into the new space which will just be too big.

 

Look for storage solutions

Does your new home have a lot of storage space? If not, look to update the space with innovative storage solutions, such as under-bed storage, hanging racks and built-in shelves.

 

Pack as you go

Move through your house room by room, assessing items and packing as you go. It helps to start in a room that you don’t use very often, such as the basement or guest room. Once you’ve gone through one room, try and get rid of the items quickly — whether you are packing, donating, or selling them. This stops you from going back and changing your mind. For more tips, read our blog on the best packing tips when moving home!

 

Ask questions

Some good questions to ask yourself as you pack could include:

  • When was the last time I used this item?
  • Can I see it fitting into my new life at my new home?
  • Does this item have sentimental value that can’t be replaced?
  • Could I get by without this item?

 

Downsizing can seem like a daunting task, but hopefully these tips will make the job seem less overwhelming. For any information you may require regarding a new or existing mortgage, we can help! We work with over 35 lenders to secure the best financing for your needs. Don’t hesitate to contact Capital Mortgages today.

10 Brilliant & Decorative Home Organization Hacks

 

 

You can easily find gorgeous home décor and useful storage solutions (i.e., storage bins), but it’s harder to find a combination of the two. Areas where home organization solutions are needed are often areas that will also be on full display to guests so, ideally, they should function as tools to de-clutter while still adding to the attractiveness of your home.

 

 

If you cringe at the thought of hideous plastic storage crates and bland cardboard boxes, here are 10 simple, creative and functional home organization and storage ideas that will heighten your home’s aesthetic:

 

1) Display kitchen essentials on a tray

This easy hack can transform your kitchen: Round up your most-used kitchen items (i.e., olive oil, salt and pepper shakers) and place them on a decorative tray to help your kitchen counters look elegant and put-together.

 

2) Use a magnetic knife rack in your bathroom

Install a magnetic knife rack in your bathroom to ensure you always know where your nail clipper, bobby pins and tweezers are.

 

3) Display jewellery on your vanity

Instead of hiding away your stylish earrings and jewellery in a drawer, sort them into beautiful arrangements on a decorative catch-all dish, glass box, or by hanging them from a jewellery tree or cork board.

 

4) Buy matching hangers

If you often have visitors to your home, your entryway closet will see a lot of action. Buying matching hangers—especially good-quality wood hangers—will help your closet look tidy and uniform and save on space between hangers.

 

5) Keep boots looking their best

Do you hate the way your boots sag and lose their shape in your closet? Cut up a cheap pool noodle to pop in your boots and ensure they look their best, even when you’re not wearing them.

 

6) Pare down your linen closet

Give your linen closet a polished look by removing old, fraying or mismatched towels, extra sheet sets and other out-of-place items.

 

7) Group bathroom essentials together

Simply filling containers, such as a glass mason jar, with everyday items like cotton balls or Q-tips can beautify your counter while making things easier to reach for.

 

8) Upcycle tin cans

Wrap tin cans in colourful scrapbook paper to match your home’s decor. The colourful containers can then be used for anything from pens and pencils, to kitchen utensils or even flowers!

 

9) Tie linens and towel sets together with ribbon or twine

For a more coordinated look, sort and decorate your linen or towel sets with colorful ribbon, twine or yarn.

 

10) Organize pots and lids

Save yourself space (and headaches) by organizing pots and pot lids with a lid organizer or hardware store tension rod installed in a drawer.

 

Are you tired of searching around for the most favourable mortgage rates? We have an outstanding range of mortgages and lenders available to help you build the mortgage blueprint that best fits your financial future. Contact Capital Mortgages today and let us take care of you.

 

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

Why Do I Need a Mortgage Broker? 

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

 

What is a Mortgage Broker? 

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

 

They can save you time 

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

 

They can save you money 

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

 

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

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

 

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

 

Renew your Mortgage with Ottawa Mortgage Broker: Capital Mortgages

Capacity, Credit & Collateral. What Every Lender Examines Before Approving Your Mortgage

Anyone who needs to refinance their home or buy a new one must be ready to learn about the requirements for qualifying for a mortgage. Once you learn the basics and you are qualified for the home loan, you will be in a position to land the best deal available on the market.

As you prepare to go out and get the best mortgage deal available, you should keep in mind that the mortgage lenders will consider some factors before they can lend you the money. These factors are broken down to three C’s, and they include the following;
1. Capacity

What is your financial stability concerning the loan repayment?

Your financial status and if you can be able to repay the specified mortgage. Salaries and wages, where you work for someone as an employee, tend to be more stable that other types of income. Due to the fact, that the salary is usually the same on a monthly basis.

Most of the self-employed are less likely to get a mortgage loan, compared to the employed. The reason for this is that self-employment deliver varied income from month to month. Also, the owner of the business {self-employed} will have to put all their effort to generate income.

Loan applicants will be required to file their income with pay stubs & tax returns. Conversely, the self-employed applicants will only be needed to file their income with the tax returns.
2. Credit

Can you repay your debts? What is your credit worthiness?

This C majorly focuses on your credit score. The mortgage lender will want to know your score before they can grant you the home loan. Expect the lender to ask for credit reports from the major bureaus, which are TransUnion, Experian, and Equifax. The lender will also need to know all the related payment histories, which will help to determine the creditworthiness further. Ideally, your credit score from all the major bureaus should be above 720. Any score under 620 is considered risky.
3. Collateral

What will secure the loan you are about to borrow?

Even with income from either of the two employments, the lender will still need a security for your home loan. Usually, the property that you are financing will act as the security or collateral for your loan. For that, your lender will need to know about the type, condition, quality, as well as the value of your property.

The mortgage lender will mostly be concerned with the property’s value. This helps them calculate the risk via the LTV {Loan-To-Value} ratio. This ratio is the percentage of the property value you intend to borrow.

If the LTV or the percentage is low, then the borrower is less risky concerning the mortgage loan. Conversely, higher Loan-To-Value percentages are considered riskier.

Renew your Mortgage with Ottawa Mortgage Broker: Capital Mortgages

Debt In the Event of Death

Once death strikes you, you will have no other option other than to leave behind your family, incurred debts and your legacy to the bereaved. Whatever happens to the debts once you’re no longer remains a question in the minds of many. In general, all your acquired assets and debts will be part of the estate whereby now the estate will take responsibility of paying them. The money that remains is channeled to your heirs. In the case there is not sufficient money to repay back debts, they will remain unpaid.

It tends to be somehow technical, but with some fix, the family members will be able to maneuver on such technicalities. Here are a few things that you need to have at the back of your mind:

SETTLING THE ESTATE

A will draft by the deceased typically mentions an executor, who will stand responsible for the settlement of his related financial affairs. In case there is no written will, then someone will need to apply to the relevant court to be appointed the Estate Trustee. There is a pecking order that should be paid first. It is stated that secured debts like auto loans or mortgage ought to be considered first, and thereafter to be followed by unsecured debts, such as credit medical bills and credit card.

HOME

Banks expect payments for a mortgage because they will take action by giving penalties. There is assured protections to family members or other individuals living within the home. Financial institutions are prohibited from automatically foreclosing whenever a home owner meet his/her untimely death.

AUTO

Similar protection is assured to automobiles that go unpaid in full amount. However, lenders are not allowed to take back a car as long as it is being paid for. Rules differ from one area to another in the way in which assets are protected and which are not. So it will be wise enough to consult a lawyer.

CREDIT CARDS

If you claim the credit card alone, then you should also be ready to claim the debt even in death. In that case, therefore, the estate will take care of it. If it is a joint account or there is a co-signer, there is the likelihood of the other party being held responsible for the balance as well. But if you’re just an authorized user, you’re likely not to pay.

Renew your Mortgage with Ottawa Mortgage Broker: Capital Mortgages

These Numbers Are The Key To Understanding Your Finances

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

1. Net Worth

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

Assets

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

Debts (Liabilities)

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

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

* Increase assets* Lessen debts

2. Equity in the Home

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

To improve home equity, try these strategies:

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

3. Gross Earnings

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

4. Take Home Pay

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

5. Monthly Expenses

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

6. Rate of Inflation

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

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

 

Pre-Qualified, Pre-Approved Mortages Ottawa, Ontario

11 Simple Tips For A Great Open House

Open houses can create hype, meet potential clients, and improve offers. With these simple tips for a great open house you can rest assured that your listing will be viewed in the best possible light.

How to Host a Successful Open House

Refrain from the use of air fresheners, perfumes, and scented candles. Research shows 30 percent of people visiting houses found foreign scents distracting. Remove odors for carpets and furnishings with a thorough cleansing and ventilation.

Be Sure to Eliminate Clutter

Remove all unused items and clutter from the interiors and exteriors. Items that reflect personal preferences should be stored. Reduce the contents inside the cupboards as it may be examined by potential buyers.

Pets should not be Present Before a Viewing

Pets may cause destruction and introduce odors. Many people lose interest in a property that is frequented by pets. Damage caused by animals must be repaired beforehand.

Property Owners must not Remain During an Open House

Sellers should leave the viewing to the agent. Remaining within the home could reveal an emotional attachment for the property. It often makes buyers feel uncomfortable.

Address all Toilet Lids

Keep the toilet lids closed. It is not inviting for a buyer to look into the bowl. Place the lid down and keep it that way.

Create Attractive Entryways for Buyers

The entrance to a home can create a first and lasting impression. Clear dead plants and clean dust. Add neutral decorative items including a smart chair or wreath.

How to Add Light

When brighter light is introduced, creates a real sense of spaciousness. Provide this space with a thorough scrub and polish. Prior to the open house, change the curtains or blinds and move furniture around that will allow more natural light to enter the space.

Present Information Uniquely

Digital platforms are popular, but should be combined with traditional options. Conventional print remains a suitable means of advertising. Placing a printed note or card with a buyer provides something tangible to refer to.

How Slideshows can Improve Good offers

A laptop and photo boards reveal images of the home through seasonal changes. Photographs allow a buyer to determine what a house looks like at specific times of the year. Such measures are modern and innovative leaving a positive impression with the buyer.

Pre-Qualified, Pre-Approved Mortages Ottawa, Ontario

Low Cost Ways To Prepare Your Home For Winter

Heating a house during cold weather can be expensive. When you want to save money on the utility bills and enjoy a cozy, warm house, you may wonder what steps you can take now to prepare for the season. These low cost ways to prepare your home for winter could save you money and also make your home more energy efficient.

One of the first steps you may take involves installing weatherstripping. This can be either foam or felt. It is sold at most hardware stores and is effective in stopping drafts and cold air from coming in around the doorways, windows, and cracks in the walls.

Another remedy that might work is putting a door sweep on the front and back doors. This installation is a strip of rubber or plastic that is held in place at the base of a door with aluminum. It prevents cold air from coming in under the door and into a house and the room in which the door is located.

Along with filling in gaps and cracks in the doors, walls, and windows, you also could do well to seal up air gaps in the attic. Cold air can come in through the attic and cause the utility bills to rise substantially during this season. Your house also will be drafty and uncomfortable instead of warm and snug.

To find the gaps and leaks, you are advised to pull back the insulation and inspect the attic. If you find any cracks, you can seal them up with caulk or foam. This safeguarding the upper level of a home can keep the bills low and make the residence warmer. You also can add more insulation to the attic if you find that the old insulation has grown thin or has become damaged.

If you have a chimney in the residence, you likewise are advised to close the draft to it once the weather turns colder. Cold air can come in through the flue of the chimney. Closing it off keeps the colder air out of the house. When you use the chimney, however, you will need to open the flue again.

These tricks can go a long way in making the home warmer during the winter. They are relatively simple and do not take a long time to complete. They can make the utility bills more affordable as well during this time of the year.

 

Buying a New Home: Capital Mortgages Ottawa

Home Heating Safety

 

You should always expect your heating systems to always operate safely whether you are using natural gas, oil or propane. Heating equipment is a leading cause of home fire deaths so ensuring your systems are in great working order helps to safeguard you as well as your family.

Here are some simple steps to ensure your heating system stays up and running during the winter months.

Chimney and stovepipe checkup

Make sure your fireplaces and stoves are operating correctly to avoid potential hazards when you want to enjoy a crackling fire during the cold season.

Clean and inspect the chimney

The Ontario Fire Code requires all homeowners to maintain all their heating appliances in safe operating mode. This should include the inspection of the chimneys at least once every year.

Check connections and stovepipes

Make sure that all the screws used for every joint and every connection has a secure and tight fit. Look out for white powder or dark staining at the joints also referred to as leeching. Rust is normally a clear indication that its time the stove pipe was replaced.

Look out for creosote

This is a byproduct of the process of combustion something that forms pretty fast on the chimney’s interior walls. This should never be allowed to build up as it causes the majority of chimney fires.

Check the walls for excessive heat

If the wall above the wood stove or fireplace gets hot, it could be a sign that the chimney has not been installed properly and this is a potential fire hazard.

Protect floors and walls from sparks and heat

All combustible objects should be kept away from fireplace or wooden stove. A properly fitted screen should be used to cover the openings of the fireplace. Non combustible shields should also be used to protect the walls and floors.

Install rain cap

When placed on top of a masonry or metal chimney it normally prevents moisture from seeping through to cause corrosion and rust. Inspect the spark screen on a regular basis to check for blockages.

Be on the lookout for warning signs

Check the outer shell of the metal chimney for rust and corrosion. Look out for corrosion and bulges on the liner. White powder, loose bricks, dark stains and crumbling mortar indicate that the chimney has some problems that should be immediately rectified.

Always contact a professional to handle the inspection process to be on the safe side and remember to test smoke alarms monthly.

At Capital Mortgages in Ottawa we strive to be your personal mortgage broker for life.

Why a home inspection is essential before buying

The purchase of one’s new home is often one of the largest investments made by
an individual during the lifetime. You want the purchase and the aftermath to be a
satisfactory experience. A wise action that should be taken before making the
home choice is to arrange for a home inspection. Not checking for defects can
cause costly and unpleasant surprises on closing and move-in day. Here are
some reasons why a home inspection is essential before buying.

The legal system has determined that two rules apply. In Canada, a seller
doesn’t have to point out defects that are visible to a prospective buyer. On the
other hand, the seller cannot make any effort to conceal obvious defects from
the buyer. To a prospective buyer, this conflict between the two side of this
issue can be confusing at best. It is particularly problematic if the buyer is
unfamiliar with the codes and regulation that apply in many locales.

When looking at a potential purchase, it is the buyer’s responsibility to perform
due diligence on the property before making an offer. The windows should open
and the artwork moved to check the walls behind. The rugs should be lifted and
any items on the counters should be moved to check for defects. Appliances
should work properly, electrical outlets should be live and the faucets
operational.

The list goes on and on. Many things which should be checked require
knowledge that a homebuyer would be unlikely to have. Even a contractor
brought in to look over the premises may be well qualified in one area such as
electrical wiring, but know nothing about roofing or foundations. For this reason,
a reliable and knowledgeable inspector is a must for protection against
extensive and costly problems with the property.

An inspector goes over every inch of the property. Compliance with health and
safety standards is checked and approved. Each of the results are shown to
potential buyers so that they are fully informed before the offer to purchase is
made.

When a buyer doesn’t see potential problems they can be costly. If the courts
determine that they should have seen the problems, there is an expensive
series of repairs or renovations that might be necessary. Conversely, if a legal
battle is settled in favor of the buyer, the seller may be responsible for extensive
damages and even criminal charges. These are some of the reasons why a
home inspection is essential before buying.

Just as your Capital Mortgage Broker for a referral of a Home Inspector in Ottawa. We would be glad to assist you.

At Capital Mortgages in Ottawa we strive to be your personal mortgage broker for life.

Solutions for getting through tough financial times

Economic stresses can happen to the most careful individuals. You may think
you are prepared by planning, budgeting and saving, but unexpected issues can
arise for various reasons. Identifying areas where you are the most vulnerable
and making contingency plans is one aspect of the solution, but sometimes
these efforts are inadequate. You need to know what to do if there is a loss of
employment, health issues or a divorce. Here are some solutions for getting
through tough financial times.

Even before you try to find solutions, you must have the knowledge about what
your economic picture is under normal times and whether or not you are over-
extended in the event of a fiscal emergency. Good record-keeping is always a
smart approach to financial issues. If you can avoid the tough times, it is better
than finding a solution after the fact. However, here are some pointers for when
you have financial problems on the horizon.

Ask for help as early in the process as possible. Don’t let yourself be stopped
by embarrassment or nervousness about approaching your mortgage company
or insurer. Delay can affect your credit rating and can cause negative balances
to grow quickly. Mortgage lenders understand that helping the borrower to get
through the stressful situation is preferable to having a defaulted property on
their books.

When you reach out to the lender, be sure you have the entire picture of your
financial situation. You should be prepared to explain what event(s) have created
the crisis. Have a detailed budget that shows your income and expenses,
assets and a current credit report. If you have alternative income sources, they
can be important. You should also explore any insurance coverage that might be
available on credit cards or mortgages.

Bring any documentation that applies to your situation. You might have a letter of
dismissal, insurance policies, fees on the property or documentation about your
home ownership. Save time by having these available for the lender or insurer.

Be brave about asking questions. You may not know all the options available to
you, but you can ask questions of the lender or insurer. You can ask for solutions
such as deferring payments, capitalization of past due amounts or increasing
the mortgage amortization term. There are many ideas which may apply in your
particular situation. Finding the best solutions for getting through tough financial
times will require some determination on your part.