Understanding the Mortgage Stress Test and its Implications for Ottawa Homebuyers 

Understanding the Mortgage Stress Test and its Implications for Ottawa Homebuyers 

 

The Mortgage Stress Test: it sounds like a rigorous physical examination, doesn’t it? However, it’s actually a financial benchmark designed to ensure Canadian homebuyers can afford their homes, even if interest rates rise. While this test affects homebuyers across the country, in the dynamic Ottawa market, it has its own unique implications. 

What is the Mortgage Stress Test? 

At its core, the Mortgage Stress Test (MST) was introduced by the Office of the Superintendent of Financial Institutions (OSFI) to safeguard the Canadian housing market from borrowers taking on more debt than they can handle. 

Before getting a loan, borrowers now need to qualify at a rate that’s higher than their contracted mortgage rate. This “stress test” rate is either the Bank of Canada’s five-year benchmark rate or the rate offered by your lender plus 2% – whichever is higher. 

Why was it Introduced? 

The primary purpose of the MST is risk management. With memories of the 2008 global housing crisis and subsequent recessions, Canadian policymakers wanted a buffer. They wanted to ensure that, even if rates rise or a borrower’s income decreases, homeowners wouldn’t default on their loans. 

Implications for Ottawa Homebuyers 

  • More Challenging Pre-approvals: With the stress test in place, some Ottawa homebuyers may find they qualify for a smaller loan than they anticipated. This might mean setting sights on a different neighborhood or considering a slightly smaller home. 
  • Competitive Market Adjustments: The Ottawa housing market, known for its steady growth, may experience a slower pace of price growth as some buyers are sidelined by the MST. This could lead to more balanced buying conditions. 
  • Potential for Alternative Lenders: Those who don’t pass the MST with traditional banks might seek alternative lenders, like credit unions, who aren’t always required to use the stress test. However, this often comes at the price of higher interest rates. 
  • Encouraging Financial Prudence: On the positive side, the test might encourage potential homeowners in Ottawa to save more for a down payment, reduce other debts, or reconsider their budget to ensure they can truly afford the home they’re interested in. 
  • Impact on Renewals and Refinancing: For those Ottawa homeowners looking to renew or refinance, they won’t need to pass the MST if they stay with their current lender. However, shopping around might become a bit more challenging. 

Conclusion 

The Mortgage Stress Test, while a source of frustration for some, is designed to protect Ottawa’s homeowners from potential future financial hardships. Homebuyers in the city should approach the test as an opportunity to critically evaluate their finances and ensure they’re making sustainable long-term decisions in one of Canada’s most vibrant real estate markets. As always, consulting with a knowledgeable mortgage broker in Ottawa can provide valuable insights and strategies for navigating the current landscape. 

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

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Ottawa's Future Infrastructure Projects and their Impact on Mortgages 

Ottawa’s Future Infrastructure Projects and their Impact on Mortgages 

 

Ottawa, the capital city of Canada, is in a state of perpetual growth and evolution. With its political significance, burgeoning tech industry, and cultural richness, the city witnesses continuous infrastructural development. These projects not only shape the city’s landscape but also influence the real estate market and, by extension, mortgages. Here’s how Ottawa’s future infrastructure projects may impact the mortgage landscape: 

  1. Improved Accessibility and Connectivity

Future Projects: Extensions of the Light Rail Transit (LRT) system, improvements to major highways, and the development of new transit hubs. 

Impact on Mortgages: As areas become more accessible and better connected to the city center, property values in those regions tend to rise. Higher property values can lead to larger mortgage loan amounts but can also promise higher returns on investment. 

  1. Sustainable and Green Infrastructure

Future Projects: Creation of more green spaces, parks, sustainable urban developments, and eco-friendly public buildings. 

Impact on Mortgages: Properties in neighborhoods prioritizing sustainability can attract environmentally-conscious buyers. Lenders might also introduce “green mortgages” or incentives for energy-efficient homes, potentially offering better rates or terms. 

  1. Redevelopment of Commercial Hubs

Future Projects: Revitalization of older commercial districts, establishment of new tech parks, and enhancement of shopping areas. 

Impact on Mortgages: With the promise of job opportunities and modern amenities, these areas might witness a surge in housing demand. Increased demand typically correlates with rising property values and, consequently, larger mortgage loans. 

  1. Upgrades to Public Facilities

Future Projects: Expansion of public libraries, renovation of community centers, and the construction of modern healthcare facilities. 

Impact on Mortgages: Areas with better public facilities can command higher property prices. Families prioritize these facilities, potentially leading to an upward shift in housing demand and mortgage applications in those areas. 

  1. Technological Infrastructure

Future Projects: Development of smart city solutions, better internet connectivity, and tech-driven public services. 

Impact on Mortgages: As Ottawa leans into a tech-friendly future, properties in areas boasting superior technological infrastructure may see increased values. Tech-driven amenities can appeal to a younger, tech-savvy demographic, potentially influencing the nature and size of mortgage loans. 

  1. Affordable Housing Initiatives

Future Projects: Development of affordable housing units, cooperative housing projects, and incentives for builders to include affordable housing options in their projects. 

Impact on Mortgages: With an emphasis on affordability, there might be a rise in first-time homebuyers. Lenders might offer specialized mortgage products or favorable terms to cater to this demographic. 

Conclusion 

Infrastructure projects play a critical role in determining a city’s real estate trajectory. In Ottawa, as new projects get underway, they will invariably influence property values and the mortgage landscape. Both homebuyers and investors should keep an eye on these developments, as they can offer clues on where the next hotspots might emerge and how mortgage products may evolve in response. 

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

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Interest-Only Mortgages

Interest-Only Mortgages: Are They a Good Fit for Ottawa Residents? 

 

Interest-only mortgages are a form of home financing where the borrower pays only the interest on the principal balance for a specific period, often 5-10 years. After this period, the loan often converts to a traditional mortgage where both principal and interest payments are made, or the borrower might need to refinance. 

The question is, with Ottawa’s unique housing market dynamics, are interest-only mortgages a good fit for its residents? Let’s weigh the pros and cons. 

Pros of Interest-Only Mortgages for Ottawa Residents: 

  • Lower Initial Payments: The most obvious benefit is the reduced monthly payment during the interest-only period. This can be particularly appealing for individuals with variable income streams, such as self-employed professionals or those in the tech startups scene, which is burgeoning in Ottawa. 
  • Flexibility in Investment: The money saved from lower payments can be used for other investments. Considering Ottawa’s growing economy, residents might find other appealing local investment opportunities. 
  • Property Flipping: For those interested in short-term property investments in areas of Ottawa that are rapidly appreciating, interest-only mortgages might make sense. They can purchase a property, make only interest payments, and then sell the property (ideally at a profit) before the principal repayment phase kicks in. 

Cons of Interest-Only Mortgages for Ottawa Residents: 

  • Future Financial Burden: Once the interest-only period concludes, monthly payments can spike significantly when principal payments commence. Ottawa’s high property values can mean substantial principal amounts, leading to potentially challenging future payments. 
  • Home Equity Stagnation: During the interest-only period, homeowners aren’t building any equity unless the property value appreciates. In a stable market, or if there’s a downturn, Ottawa residents might find themselves in a position where they owe more than their home is worth. 
  • Potential for Higher Overall Costs: Over the lifespan of the loan, Ottawa residents might end up paying more in interest with an interest-only mortgage than they would with a traditional one. 
  • Market Volatility: If Ottawa’s property market experiences a downturn, homeowners with interest-only mortgages could be particularly vulnerable, especially if they’re nearing the end of their interest-only period and haven’t seen significant appreciation in their property’s value. 

So, are they a good fit? 

The answer largely depends on individual financial situations, risk tolerance, and future plans: 

  • Short-Term Residents: If someone plans to live in Ottawa for only a few years and believes in property appreciation, this type of mortgage might be suitable. 
  • Investors with Diversification Plans: For those using the mortgage as a strategy to free up cash for other investments, it might be a fit, provided they’re comfortable with the associated risks. 
  • Long-Term Residents with Stability: For individuals or families planning to stay in their Ottawa home for the long haul, especially if they have stable incomes, traditional mortgages might offer more peace of mind. 

Conclusion 

Interest-only mortgages can be a strategic tool, but they come with significant risks. Given Ottawa’s unique market dynamics and economic factors, residents should meticulously evaluate these pros and cons, ideally with the guidance of a financial advisor or mortgage specialist, before making a decision. 

 

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

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How Ottawa's Historic Sites Influence Property Values and Mortgages

How Ottawa’s Historic Sites Influence Property Values and Mortgages

Ottawa, as Canada’s capital, is steeped in history and home to numerous historic sites. From iconic landmarks like Parliament Hill and the Château Laurier to charming heritage districts, these sites play a pivotal role in shaping the city’s real estate landscape. But how exactly do they influence property values and, by extension, mortgages in Ottawa? Let’s delve into this intriguing interplay. 

  1. Cultural Significance and Prestige

Properties adjacent to or within the vicinity of historic sites often carry a mark of distinction. Living near a landmark isn’t just about convenience; it’s about the prestige and the unique character these properties boast. This cultural significance translates into higher property values, leading to potentially larger mortgages for those specific locations. 

  1. Enhanced Aesthetics and Neighborhood Ambiance

Historic sites and the neighborhoods surrounding them often come with beautifully preserved architecture, tree-lined streets, and scenic views. This setting significantly enhances the aesthetic value of a property, making it more appealing to potential buyers and, therefore, raising its market value. 

  1. Limited Supply and Increased Demand

Since historic areas have stringent regulations regarding construction and redevelopment, there’s a limited supply of properties. Limited supply coupled with the unique allure of these areas creates an increased demand. High demand in the face of limited supply naturally drives property values up. 

  1. Tourist Appeal and Economic Advantages

Many of Ottawa’s historic sites are major tourist attractions. This influx of visitors can boost local businesses, from quaint B&Bs and boutique stores to restaurants and coffee shops. Properties in such economically thriving areas can command higher prices due to the potential for commercial opportunities or the appeal of being in a lively area. 

  1. Stricter Renovation Regulations

Owning a property near a historic site may come with a set of regulations, especially if the property itself is of historical significance. While these properties may have higher values, potential buyers need to be aware of the additional costs associated with adhering to renovation standards. This factor can influence mortgage decisions, especially if renovations or upgrades are planned. 

  1. Stability in Market Fluctuations

Historically significant neighborhoods often show resilience in the face of real estate market downturns. Their timeless appeal can act as a buffer against sharp declines in property values. For mortgage considerations, this offers a layer of security to both lenders and borrowers. 

  1. Mortgage Premiums and Interest Rates

Due to the potentially higher values of properties near historic sites, buyers might encounter larger mortgage premiums. However, the stability and consistent appreciation of these properties can sometimes lead to favorable interest rates, as they’re considered lower risk. 

Conclusion 

Ottawa’s historic sites undeniably contribute to the fabric of the city’s real estate dynamics. While properties in or around these sites can demand higher prices, the unique charm, stability, and prestige they offer often make them worthwhile investments. As with any real estate decision, potential buyers should seek advice from professionals familiar with Ottawa’s market nuances to navigate the mortgage landscape effectively. 

 

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

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Navigating Financing for Canadian Entrepreneurs

Self-Employed? Yes, You Can Get a Mortgage: Navigating Financing for Canadian Entrepreneurs

As a self-employed entrepreneur in Canada, you’ve embarked on a rewarding journey of building your own business. Now, you’re ready to take the next step and invest in your dream home. Despite the common misconception that obtaining a mortgage is difficult for self-employed individuals, this blog will show you that it’s indeed possible. Let’s explore the ins and outs of securing a mortgage tailored to the unique financial situation of Canadian entrepreneurs. 

  • The Self-Employed Mortgage Landscape for Canadian Entrepreneurs: 

Understand the challenges self-employed individuals might face when applying for a mortgage and why some lenders might be hesitant. Uncover the reasons behind the misconceptions and learn how you can overcome them. 

  • Alternative Income Assessment for Canadian Entrepreneurs: 

Unlike traditional employed individuals, entrepreneurs may not have a consistent salary. Discover the various ways lenders can assess your income, taking into account business profits, tax returns, and other financial documents. 

  • Building a Strong Financial Profile: 

Explore essential strategies to bolster your financial profile as a self-employed individual. From maintaining a healthy credit score to organizing financial records, these steps can increase your chances of mortgage approval. 

  • Specialized Mortgage Options for Canadian Entrepreneurs: 

Learn about specialized mortgage products designed specifically for self-employed individuals. These options cater to your unique needs and circumstances, offering flexibility and attractive terms. 

  • Engaging a Mortgage Advisor: 

Find out how working with a mortgage advisor experienced in handling self-employed clients can make a significant difference in the mortgage application process. Their expertise can help you navigate potential hurdles and secure the best mortgage option. 

Conclusion of Navigating Financing for Canadian Entrepreneurs 

Canadian entrepreneurs, rejoice! Securing a mortgage as a self-employed individual is entirely feasible. By understanding the nuances of self-employed mortgage financing and leveraging specialized options, you can turn your dream of homeownership into reality. Remember, working with a seasoned mortgage advisor can be a game-changer, ensuring you find the ideal mortgage that aligns perfectly with your entrepreneurial journey. 

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

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Mortgages for Non-Resident Canadians

Mortgages for Non-Resident Canadians: Homebuying from Afar Made Easy

Canada’s thriving real estate market has long attracted interest from non-resident Canadians who seek to invest in their home country or secure a second property. However, as a non-resident, obtaining a mortgage might seem like a daunting task. In this blog, we’ll unravel the process of acquiring a mortgage as a non-resident Canadian and provide you with the necessary insights to make homebuying from afar a smooth and straightforward experience. 

  • Mortgages for Non-Residents – The Basics: 

Understand the fundamental concepts of getting mortgages for non-resident, including eligibility criteria and the types of properties you can purchase. 

  • Down Payment Requirements and Currency Exchange: 

Explore the down payment requirements for non-resident mortgages and learn how to navigate currency exchange considerations when financing your Canadian property. 

  • Legal and Tax Implications for Mortgages for Non-Resident Canadians: 

Gain insights into the legal and tax implications that non-resident buyers should be aware of when acquiring Canadian real estate. 

  • Working with Mortgage Brokers: 

Discover the benefits of working with experienced mortgage brokers who specialize in non-resident mortgages. They can guide you through the process, ensuring you find the most suitable mortgage option for your unique situation. 

  • Building a Strong Mortgage Application: 

Learn how to strengthen your mortgage application as a non-resident. We’ll provide tips on preparing the necessary documentation and demonstrating your creditworthiness to lenders. 

  • Securing Your Investment for you Mortgage as a Non-Resident: 

Explore strategies to safeguard your Canadian real estate investment, such as property management services and insurance coverage. 

Conclusion of Mortgages for Non-Resident Canadians

As a non-resident Canadian, achieving homeownership or investing in Canadian real estate is a possibility within your reach. By understanding the intricacies of non-resident mortgages and partnering with knowledgeable mortgage professionals, you can make informed decisions that align with your financial goals. Homebuying from afar need not be a complex process – it can be a rewarding and straightforward journey toward owning a piece of the Canadian dream. 

 

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

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Exploring Mortgages for Rural Properties in Canada

Beyond the Big Cities: Exploring Mortgages for Rural Properties in Canada

In the vast and beautiful landscape of Canada, rural living has a unique appeal for those seeking tranquility and a closer connection to nature. If you’ve been envisioning your dream home in the countryside, this blog will be your comprehensive guide to understanding the nuances of securing a mortgage for rural properties. 

  • The Allure of Rural Properties in Canada: 

Discover the undeniable charm of rural properties, from picturesque landscapes to the strong sense of community. We explore why more Canadians are embracing the idea of owning a piece of paradise away from the urban bustle. 

  • Financing Challenges and Considerations: 

Rural properties often come with unique financing challenges, such as septic system assessments and water source verification. Gain insights into these considerations and learn how to navigate them effectively. 

  • Specialized Lenders for Rural Properties in Canada: 

Explore mortgage options from lenders who specialize in rural properties. These institutions offer tailored solutions to accommodate the distinct needs and characteristics of country living. 

  • Government Initiatives and Grants: 

Find out about government programs that promote and support rural homeownership. Learn how these initiatives can make your dream of owning a rural property more accessible and financially feasible. 

  • Expert Tips for a Smooth Purchase Process in Rural Properties in Canada: 

Gain valuable advice from real estate professionals and mortgage advisors who are well-versed in the intricacies of rural real estate transactions. Their insights will help you navigate the purchasing process with confidence. 

Conclusion

Embrace the tranquility and charm of rural living in Canada by understanding the ins and outs of securing a mortgage for your countryside retreat. Whether you seek a serene weekend getaway or a permanent residence away from the city, this blog equips you with the essential information to make your rural homeownership aspirations a reality. Join us as we explore the joys and challenges of rural living in Canada! 

 

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

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Breaking Down Mortgage Interest Rates

Breaking Down Mortgage Interest Rates: What Canadian Homebuyers Need to Know

For many Canadian homebuyers, a mortgage is the key to turning homeownership dreams into reality. Central to this financial commitment are mortgage interest rates, which play a significant role in determining the total cost of borrowing. In this blog, we’ll delve into the essential aspects of mortgage interest rates, empowering you with the knowledge needed to make informed decisions when securing your dream home. 

  • The Impact of Mortgage Interest Rates: 

Understand the crucial connection between interest rates and your mortgage payments. We’ll explain how even a slight variation in rates can affect your monthly expenses and the overall cost of homeownership. 

  • Factors Affecting Mortgage Interest Rates: 

Discover the various factors that influence mortgage interest rates in Canada. From economic indicators to lender policies, we’ll shed light on what drives the fluctuations in rates. 

  • Fixed vs. Variable Rates: Choosing the Right Option : 

Learn about the two primary types of mortgage interest rates – fixed and variable – and the advantages and drawbacks of each. We’ll help you decide which option aligns best with your financial goals and risk tolerance. 

  • Timing the Market: The Art of Rate Watching: 

Explore the concept of rate watching and how it can influence your decision-making process. Gain insights into market trends and strategies for securing favorable rates. 

  • The Role of Credit Score on : 

Uncover the significance of your credit score in securing a competitive mortgage interest rate. We’ll provide tips on how to improve your creditworthiness and access better rates. 

  • Negotiating Your Mortgage Interest Rate: 

Learn about the art of mortgage rate negotiation and how to leverage your financial standing to secure favorable terms from lenders. 

Conclusion

Navigating mortgage interest rates is an essential aspect of the homebuying journey for Canadian buyers. By understanding the factors influencing rates, the types of rates available, and the importance of timing, you can make well-informed decisions that align with your financial goals. Remember, consulting with experienced mortgage professionals can be instrumental in securing the best mortgage interest rate for your dream home. 

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

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

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Green Mortgage Revolution

The Green Mortgage Revolution: Financing Sustainable Homes

In recent years, there has been a growing focus on sustainability and environmentally friendly practices. As more individuals prioritize eco-conscious living, the demand for sustainable homes has increased. To support this green movement, financial institutions have introduced innovative mortgage options specifically tailored to finance sustainable homes. In this blog post, we will explore the concept of the green mortgage revolution and how it enables homeowners to embrace sustainable living while providing financial benefits. 

1.Understanding Green Mortgages Revolution

Green mortgages are specialized loan products designed to encourage homeowners to invest in energy-efficient and environmentally friendly homes. These mortgages incentivize sustainable choices by offering financial benefits such as lower interest rates, reduced fees, or extended repayment terms. They serve as a win-win solution, benefiting both homeowners and the environment. 

2.Benefits of Green Mortgages

By opting for a green mortgage, homeowners can enjoy a range of benefits. Firstly, energy-efficient homes typically have lower utility bills, allowing homeowners to save money on monthly expenses. Moreover, investing in sustainable features like solar panels, energy-efficient appliances, and insulation can increase the home’s value over time. Additionally, homeowners contribute to reducing their carbon footprint, thus promoting a greener future. 

3.Financing Renewable Energy Systems

Green mortgages not only support energy-efficient homes but also provide financing options for renewable energy systems. Homeowners interested in installing solar panels, wind turbines, or geothermal systems can leverage these specialized mortgages to fund their renewable energy projects. The upfront costs associated with these systems can be offset by the long-term energy savings they provide. 

4.Green Home Certification and Appraisals

To qualify for a green mortgage, homeowners may need to obtain green home certifications, such as LEED (Leadership in Energy and Environmental Design) or ENERGY STAR ratings. These certifications ensure that the home meets specific environmental standards. Appraisers can also take into account the sustainable features of a home during the appraisal process, potentially increasing its value compared to conventional homes. 

Conclusion of Green Mortgage Revolution

The green mortgage revolution presents an exciting opportunity for homeowners to align their values with their housing choices. By embracing sustainable homes and leveraging specialized mortgage products, individuals can enjoy financial benefits while making a positive impact on the environment. Whether it’s energy-efficient features, renewable energy systems, or green certifications, the green mortgage revolution paves the way for a greener, more sustainable future. 

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

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Exploring Blockchain Technology

The Future of Mortgage Lending: Exploring Blockchain Technology

In recent years, blockchain technology has emerged as a disruptive force across various industries, revolutionizing the way we store, verify, and transact digital assets. While initially associated with cryptocurrencies like Bitcoin, blockchain has the potential to transform the mortgage lending landscape as well. In this blog post, we will explore the exciting possibilities that blockchain technology holds for the future of mortgage lending. 

1.Enhancing Transparency and Security in Blockchain Technology 

One of the key advantages of blockchain technology is its ability to provide transparency and security in transactions. In the context of mortgage lending, this can significantly streamline the process by removing the need for intermediaries and reducing the risk of fraud. Blockchain’s decentralized nature allows for tamper-proof and immutable records, ensuring data integrity throughout the mortgage lifecycle. 

2.Smart Contracts and Automated Processes

Smart contracts, self-executing agreements written on the blockchain, have the potential to automate various stages of the mortgage lending process. These contracts can enforce terms and conditions, automate payment schedules, and trigger actions based on predefined rules. By eliminating manual intervention and paperwork, smart contracts can reduce processing time, enhance efficiency, and minimize errors, leading to a smoother mortgage experience for borrowers. 

3.Simplified Identity Verification in Blockchain Technology 

Identity verification is a crucial aspect of mortgage lending, requiring borrowers to submit multiple documents and undergo rigorous checks. Blockchain technology offers a decentralized identity management system, enabling individuals to have control over their personal data while ensuring its security. By leveraging blockchain for identity verification, lenders can streamline the process, reduce the risk of identity theft, and potentially lower costs associated with KYC (Know Your Customer) compliance. 

4.Tokenization of Real Estate Assets

Blockchain’s tokenization capabilities can unlock new possibilities in real estate financing. Through fractional ownership, properties can be divided into digital tokens, allowing investors to own a portion of a property. This concept opens up avenues for peer-to-peer lending, crowdfunding, and secondary market trading of real estate assets. Tokenization can provide liquidity, accessibility, and diversification opportunities to both investors and homeowners. 

Conclusion of Blockchain Technology 

Blockchain technology has the potential to transform the mortgage lending industry by streamlining processes, enhancing transparency, and improving security. While there are still challenges and regulatory considerations to address, the benefits offered by blockchain in terms of efficiency, automation, and trust are promising. As the technology continues to mature and gain wider adoption, we can expect a future where blockchain-powered mortgage lending becomes a norm, revolutionizing the way people finance their homes. 

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

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Navigating Mortgages for Remote Workers

Navigating Mortgages for Remote Workers: What You Need to Know

The rise of remote work has transformed the traditional workplace and allowed individuals to work from anywhere, providing a new level of flexibility and freedom. However, remote workers often face unique challenges when it comes to obtaining a mortgage. In this blog post, we will explore the key considerations and tips for navigating mortgages for remote workers.

1.Income Verification for Navigating Mortgages for Remote Workers

One of the primary challenges for remote workers is providing verifiable income to lenders. Unlike salaried employees with regular pay stubs, remote workers may have income streams from multiple clients or platforms. It is crucial to maintain organized financial records, including contracts, invoices, and bank statements, to demonstrate a stable income source. Additionally, working with lenders experienced in dealing with remote workers can simplify the income verification process. 

2.Tax Implications

Remote workers often have complex tax situations, especially if they work across different states or countries. Lenders may require a comprehensive understanding of your tax filings to assess your financial stability and ability to repay a mortgage. It is advisable to work with a certified accountant or tax professional who specializes in remote work and can help navigate the complexities of your tax situation. 

3.Lender Considerations

Not all lenders are equally accommodating when it comes to remote workers. Some traditional lenders may have rigid criteria that do not align with the remote work lifestyle. It is crucial to research and connect with lenders who understand the unique circumstances of remote workers. Mortgage brokers can be valuable allies in this process, as they have access to a wide range of lenders and can help find suitable options tailored to your needs. 

4.Location and Property Type

Remote workers have the advantage of flexibility in choosing their work location. However, the location and type of property you intend to purchase can impact your mortgage eligibility. Lenders may have specific requirements or restrictions based on the property’s location, such as proximity to major cities or access to essential services. Additionally, certain property types, such as co-working spaces or properties in remote or rural areas, may present unique challenges when it comes to securing a mortgage. Researching local mortgage regulations and consulting with real estate professionals can provide valuable insights. 

Conclusion of Navigating Mortgages for Remote Workers

As remote work continues to gain popularity, navigating the mortgage process as a remote worker requires careful planning and consideration. By being proactive, maintaining accurate financial records, seeking professional guidance, and connecting with lenders who understand remote work dynamics, remote workers can increase their chances of securing a mortgage that aligns with their unique circumstances. Remember, every situation is different, and it is important to consult with professionals who can provide personalized advice based on your specific needs and goals. 

 

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.

Mortgage Options for Gig Economy Professionals in Ottawa

Mortgage Options for Gig Economy Professionals in Ottawa: Navigating Homeownership in the New World of Work

The gig economy has reshaped the way many professionals work, offering flexibility and independence. However, gig economy professionals often face unique challenges when it comes to securing a mortgage. In the vibrant city of Ottawa, where the gig economy is thriving, understanding the available mortgage options is essential for aspiring homeowners. In this blog post, we will explore specific mortgage options and strategies tailored to gig economy professionals in Ottawa. 

1.Stated Income Mortgages

Traditional mortgages typically rely on stable employment with consistent pay stubs for income verification. However, gig economy professionals often have variable income or multiple income sources. Stated income mortgages, also known as self-employed or non-traditional mortgages, provide an alternative solution. These mortgages allow applicants to state their income without extensive documentation, making it more accessible for gig economy professionals to qualify for a mortgage. 

2.Building a Strong Financial Profile to Explore Mortgage Options for Gig Economy Professionals

To increase your chances of securing a mortgage as a gig economy professional in Ottawa, it’s crucial to build a strong financial profile. Maintain organized records of income, contracts, and invoices to demonstrate your income stability and reliability. Additionally, maintaining a healthy credit score and managing debt responsibly will strengthen your financial profile and make you a more attractive candidate to lenders. 

3.Working with Mortgage Brokers 

Navigating the mortgage landscape can be complex, especially for gig economy professionals. Working with experienced mortgage brokers in Ottawa who specialize in assisting self-employed individuals can be immensely beneficial. They have extensive knowledge of the local market and access to a network of lenders who understand the nuances of the gig economy. Mortgage brokers can help you find mortgage options tailored to your unique situation, increasing your chances of securing favorable terms and rates. 

4.Alternative Down Payment Strategies for Gig Economy Professionals Exploring Mortgage Options

Saving for a down payment can be challenging, especially for gig economy professionals with irregular income. Exploring alternative down payment strategies can be a smart approach. For example, the Government of Canada’s Home Buyers’ Plan (HBP) allows first-time homebuyers to withdraw funds from their Registered Retirement Savings Plan (RRSP) for a down payment, subject to certain conditions. Another option is partnering with co-buyers or utilizing down payment assistance programs specific to Ottawa. 

 As the gig economy continues to thrive in Ottawa, gig economy professionals should be aware of the mortgage options available to them. Stated income mortgages, building a strong financial profile, working with mortgage brokers, and exploring alternative down payment strategies are all crucial elements for navigating the homeownership journey successfully. By understanding and leveraging these specific mortgage options and strategies, gig economy professionals in Ottawa can turn their homeownership dreams into reality. 

Conclusion of Mortgage Options for Gig Economy Professionals

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.

Understanding New to Canada Mortgages

Understanding New to Canada Mortgages: A Guide for Newcomers

For many newcomers to Canada, purchasing a home is an important milestone in settling down and building a life in their new country. However, navigating the Canadian mortgage system can be challenging, especially for those who are unfamiliar with the process. That’s where “New to Canada Mortgages” come in – a special type of mortgage designed to help newcomers buy a home and establish credit history in Canada. A New to Canada Mortgage is a special mortgage product designed to help newcomers who have been in Canada for less than five years to purchase a home. This type of mortgage takes into account the unique financial and credit circumstances of new immigrants, such as limited credit history and employment status.   

In this blog, we will explore the key aspects of New to Canada Mortgages, providing you with the knowledge and insights to make informed decisions and achieve your homeownership dreams. 

1.Eligibility Criteria for New to Canada Mortgages 

  • Residency Status: To be eligible for a New to Canada Mortgage, you must have obtained permanent residency status in Canada and have a valid work permit.  
  • Credit History: Newcomers with little or no credit history can still qualify for a New to Canada Mortgage, provided they can demonstrate their ability to make regular mortgage payments.  
  • Employment Status: Lenders will consider your employment history and income stability to assess your ability to make mortgage payments.  
  • Down Payment: Newcomers to Canada may be required to provide a larger down payment than Canadian citizens or permanent residents. 

2.Benefits of New to Canada Mortgages 

  • Establishing Credit History: A New to Canada Mortgage can help newcomers establish a credit history in Canada, which is essential for future financial transactions such as applying for credit cards and car loans. 
  • Flexible Eligibility: Newcomers with limited credit history or unconventional employment status can still qualify for a New to Canada Mortgage, making homeownership a more accessible goal.  
  • Competitive Interest Rates: New to Canada Mortgages often come with competitive interest rates, making them an attractive option for newcomers looking to purchase a home. 

3.How to Apply for a New to Canada Mortgage 

  • Gather Required Documents: To apply for a New to Canada Mortgage, you will need to provide proof of your residency status, employment history, income, and down payment.  
  • Choose a Lender: Research and compare lenders offering New to Canada Mortgages to find the best terms and rates for your circumstances.  
  • Get Pre-Approved: Pre-approval for a New to Canada 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 New to Canada Mortgage application with the lender. 

4.Tips for Success with a New to Canada Mortgage 

  • Build Credit History: To increase your chances of qualifying for future financial products, make sure to establish a credit history in Canada by paying your mortgage and other bills on time 
  • Budget Wisely: Owning a home comes with additional expenses beyond your mortgage payment, such as property taxes and maintenance costs. Make sure to budget accordingly to avoid financial strain.  
  • Work with Professionals: Seek the guidance of professionals such as mortgage brokers, real estate agents, and lawyers to navigate the complex Canadian real estate market and mortgage system.  
  • Plan for the Future: Consider your long-term financial goals and how homeownership fits into them, such as building equity and creating a stable home environment for your family. 

New to Canada Mortgages offer a unique opportunity for newcomers to Canada to achieve their dream of homeownership and establish credit history in the country. By understanding the eligibility criteria, benefits, and application process of these mortgages, newcomers can make informed decisions and secure the best terms and rates available to them. However, it’s important to keep in mind that owning a home comes with additional expenses and responsibilities, and budgeting wisely and seeking the guidance of professionals can help ensure a successful homeownership journey. With careful planning and diligence, New to Canada Mortgages can be a valuable tool in building a stable and fulfilling life in Canada. 

 Conclusion

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.

shopping for a construction loan

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

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

Types of construction loans

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

Qualifying for a construction loan

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

Construction loan repayment

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

Credit score and income requirements

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

Closing costs and fees

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

Applying for a construction loan

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

Differentiating between lenders

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

Working with a loan officer

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

Questions to ask the lender

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

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

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

You can also click here.

conventional mortgage

Understanding the Conventional Mortgage Down Payment: All You Need to Know

A home is likely one of the most expensive purchases you will make in your lifetime and understanding the process of financing it is essential. One of the key factors in the financing process is the down payment, which is the amount of money that you pay up front to the lender when you take out a conventional mortgage loan. The down payment is usually a percentage of the total loan amount and is an important factor in determining the interest rate of the loan. Knowing the basics of the conventional mortgage down payment can help you make an informed decision when it comes to financing your home. In this article, we’ll discuss everything you need to know about conventional mortgage down payments, including the requirements, benefits, and risks.

What is a conventional mortgage down payment?

The conventional mortgage down payment is the amount of money that you pay for a home upfront, before you take out a mortgage loan. This down payment amount is usually a percentage of the total loan amount and is one of the factors in determining the interest rate of the loan. The conventional mortgage down payment is the standard minimum amount that you must pay towards the purchase of a home when you finance it. The amount of the down payment varies from lender to lender, and is usually about 20% of the purchase price of the home. The type of loan that you take out determines the down payment amount. Now that you know what a conventional mortgage down payment is, let’s see what the requirements are.

Requirements for a conventional mortgage down payment

There is no standard requirement for a down payment amount when you take out a conventional mortgage loan. In fact, some mortgage lenders will let you make a down payment as little as 3% of the purchase price of your home. However, you do need to be aware of the minimum down payment requirements set by Fannie Mae and Freddie Mac, otherwise known as the conventional mortgage down payment requirements. Fannie Mae and Freddie Mac are government-sponsored enterprises (GSEs) that buy a majority of the mortgages in the United States. Therefore, most conventional mortgage lenders will require you to meet the down payment requirements set by Fannie Mae and Freddie Mac.

– Credit score: You will need at least a mid-score of at least 680 to be eligible for a conventional mortgage loan. But, if you want to make a conventional mortgage down payment of less than 10%, you will likely need a higher credit score of at least 700.

– Debt-to-income ratio: This is the percentage of your monthly debt payments compared to your income. Lenders usually require a down payment of less than 10% for a debt-to-income ratio of less than 36%.

– Loan type: Fannie Mae and Freddie Mac have different minimum down payment requirements for each type of mortgage loan.

Benefits of making a conventional mortgage down payment

There are many benefits associated with making a conventional mortgage down payment, especially when it comes to your interest rate. With a larger down payment, you are less likely to be approved for a loan, and, therefore, you get a lower interest rate. Additionally, you can use the equity in your home to borrow money. This is often achieved through a home equity line of credit (HELOC), which is basically a second mortgage. Finally, making a larger down payment will allow you to get a fixed-rate loan sooner, since fixed-rate loans have lower interest rates than adjustable-rate loans.

Risks associated with a conventional mortgage down payment

If you make a large conventional mortgage down payment, the risks associated with it are low. On the other hand, if you make a small conventional mortgage down payment, the risks are much greater. You may find yourself having to make a larger monthly payment or extending the length of your home loan due to the higher interest rate on your loan. This could have a negative impact on your finances and credit score. Additionally, if you decide to sell your home in the future, you may have to come up with additional money to pay off the remainder of your conventional mortgage loan.

Finally, if the real estate market hits a decline, you may want to sell your home before it loses value. In this situation, you will face the difficult task of trying to find a buyer who is willing to pay the mortgage loan amount with a small down payment.

How to calculate a conventional mortgage down payment

Let’s say you are buying a $200,000 home. The lender requires a 20% down payment for this purchase. You have decided to make a $40,000 down payment, which is the minimum amount required by the lender. The amount of your down payment is equal to the purchase price of the home minus the loan amount. In this scenario, you would have to make a $40,000 down payment. You can also use a mortgage calculator to calculate your conventional mortgage down payment.

Factors that influence the amount of your down payment

There are many factors that influence the amount of your down payment, such as your income, your debt-to-income ratio, the type of loan you take out, and your credit score. Generally, the more you make and the less debt you have, the larger your down payment can be. Furthermore, the type of loan you take out will also influence the amount of your down payment. Let’s examine the minimum down payment requirements for each type of loan.

– Conventional mortgage: The minimum down payment for a conventional mortgage is 5% for most lenders. However, 10% is the minimum down payment for jumbo loans. Jumbo loans are those loans that exceed $484,350 in most parts of the country.

– FHA mortgage: The minimum down payment for an FHA loan is 3.5% for the first-time homebuyer. Otherwise, the minimum down payment is 5%.

– VA mortgage: The minimum down payment for a VA loan is 0%. In other words, you don’t have to make a down payment.

Strategies for making a larger down payment

One of the best ways to make a larger conventional mortgage down payment is to save the money. However, you don’t have to save the entire amount. You can also use a home equity line of credit (HELOC) to make a larger down payment. One of the best ways to do this is to take advantage of your tax savings. – Open a tax-advantaged savings account: This is one of the best ways to save money. You can open an account such as a Roth IRA or a traditional IRA to make a payment towards your home. – Increase your monthly savings: If you can increase the amount you are saving towards your home, you will be able to make a larger down payment.

Tips for saving for a down payment

If you want to make a larger down payment, you will need to start saving money as soon as possible. You can use a savings account, a money market account, or a stocks account to save money towards your down payment. Make sure that the account is easily accessible and that you can get to the money quickly when the time comes.

– Pay off your high-interest debt: You should also work to pay off your high-interest debt before you start putting money towards your down payment. You can do this by increasing your monthly payments or engaging in some extra part-time work.

– Get help from family and friends: You have many people around you who can help you make a larger down payment, including your family and friends.

– Shop around for a lower interest rate: You should also shop around for a lower interest rate on your mortgage loan before you start putting money towards your down payment. This will help reduce the amount of money you need to save.

Advice for making the right down payment decision

If you are wondering how much money you need for a down payment, the first thing you should do is get pre-approved for a mortgage loan. A mortgage lender will help you estimate the amount of money you need for a down payment and the interest rate on your loan. When you know how much money you need for a down payment, you can start saving for it. If you don’t have the money to make a larger down payment, don’t worry. You can always make a smaller down payment and pay a higher monthly mortgage loan payment.

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

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

You can also click here.

Ottawa Housing Market Trends: For Buyers and Sellers Capital Mortgages

Ottawa Housing Market Trends

Ottawa Housing Market Trends: For Buyers and Sellers

The Ottawa real estate market is in a constant state of change and is always adapting to new market factors. For buyers and sellers, this can make navigating the housing market more challenging than usual. This blog post will address some of the unique challenges in the Ottawa housing market, and how you can overcome them. Let’s dive in!

Changes in the Ottawa Real Estate Market

By almost every metric, the Ottawa real estate market is on a hot streak. If you’re in the market to buy, or if you’re a homeowner looking to sell, you’re in luck. There are a few reasons why the Ottawa housing market is excelling.

The First Time Buyer Tax Credit is Running Out – Time is running out for First Time Buyers to claim the $5,000 First Time Buyer Tax Credit. In Ottawa, this tax credit has led to a surge of First Time Buyer activity, pushing prices up and inventory down. It’s likely that many FHBs will want to get into the market before the end of 2022, so it may be a good time to take action.

Low Interest Rates – Interest rates have been at record lows for almost a decade, making home ownership much more affordable. This has led to a rush of first time buyers into the market, as well as people buying their next home, rather than staying put. This has pushed the Ottawa housing market beyond the point of balanced demand and supply, and into an environment of high demand and low supply.

Immigration and New Job Creation – Canada is seeing record numbers of new immigrants annually. In fact, in 2018, Ottawa saw a record number of newcomers, with nearly 45,000 new residents settling in the capital city. As newcomers are often looking for housing, this has led to higher demand in the Ottawa real estate market. New job creation, particularly in the tech sector, has also contributed to higher demand for housing.

High Demand and Low Supply

The Ottawa real estate market is showing signs of overheating. This is evidenced by a high demand for homes, and low supply of homes on the market. This is a trend that will likely continue throughout the rest of 2022, and into 2023. As the First Time Buyer Tax Credit is may eventually end, it’s likely that demand for housing will drop off, and supply will increase. It’s a good idea to keep an eye on the market, and be prepared to take action based on market conditions.

Finding Your Perfect Match

Finding a home that meets your needs is a challenge in any market. However, in a competitive market like Ottawa, it can be much more difficult. For example, let’s say you’re looking to buy a house in Ottawa. The average price for a house in Ottawa is currently just over $420,000. If you’re a First Time Buyer, your budget is likely less than this.

This means you’ll be looking at less expensive neighbourhoods, where there is less demand. This can make it difficult to find a home that meets your needs. It’s a good idea to be flexible when looking for a home. This will help you find a home that meets your needs, while also being in a neighbourhood that has less demand.

The Competition Is Heating Up

When you’re buying a home, or selling a home, it’s always important to have a competitive edge. That’s even more true in a high demand market like Ottawa. For example, if you’re buying a home in Ottawa, you’ll want to make sure you have a strong offer. The higher your offer, the more likely it is to be accepted. You’ll also want to make sure that your financing is in order. Some buyers try to secure financing after they’ve entered into a purchase contract, which leads to a drawn out and stressful process. Let Capital Mortgages help you with a pre-approved mortgage before you start your Ottawa search.

Conclusion

We’ve explored what is happening in the Ottawa real estate market, how these changes impact buyers and sellers, and what you can do to navigate these changes successfully. There are a few key points to keep in mind throughout this process. First, it’s important to understand the current state of the market. This will help you adapt your strategy and navigate the market successfully. Next, make sure to have a realistic view of the market. You’ll want to know what you can afford, and what properties are currently selling for. Last but not least, don’t get discouraged. The Ottawa real estate market can be challenging, but with the right strategy, it can be fun and rewarding.

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

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

You can also click here.

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

How Do Capital Gains Work On Property Sales?

When entering today’s red hot real estate market, it’s easy to feel excited by the prospect of how much your home will grow in value in ten, five or even just two years. We’ve all heard stories of people who have bought a home for $400,000, only to sell it just a few years later for 50% more than what they paid.

While the prospect is exciting, it’s important to keep in mind that in Canada, 50% of capital gains are taxed. This is good news for those who own a single primary residence, but understandably an unfortunate factor for those who are looking to invest in more than one property at a time.

To put it simply, capital gains are the increase in the value of an investment – this term can be used when it comes to stocks, shares, exchange traded funds and in this case – real estate. A capital gain can be realized or unrealized, meaning that you either received this gain as a result of selling your investment, or your investment increased in value, but you did not sell it.

In the context of real estate, you do not have to pay capital gains on the sale of your primary residence. That means that if you bought your primary residence for $400,000 and sold it for $600,000, that $200,000 capital gain is yours to keep.

However, if you currently have a primary residence and purchased an additional home as an investment property, 50% of the value of any capital gains on the additional home will be taxable. This 50% in capital gains will be added to your annual income, meaning that the additional tax you pay that year will vary depending on how much you earned in a year.

Let’s say that the same $400,000 home that sold for $600,000 was your investment property and not your primary residence. 50% of the $200,000 you earned on it is $100,000 – which will be added to your annual taxable earnings. So if you earned $120,000 that year as a salary (with no other income sources), your taxable income for the year would now be $220,000.

While this can be disheartening for many, note that you can offset your capital gains for the year with any capital losses you had that year (realized or unrealized), until you reach zero. If you only have capital losses in a given year, the Canada Revenue Agency will allow you to offset a capital gain that you declared in the previous 3 years. You can also carry a capital loss forward into the future.

More questions about how capital gains work on property sales? Give us a call today at 613-228-3888.  

 

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Capital Mortgages opened in January 1999 and has since serviced thousands of clients and arranged several billion dollars in mortgages in Ottawa area.

The Benefit of Rate Holds

The term “rate hold” may be something you are familiar with if you have worked with us in the past. If not, it is a term that all prospective buyers should know!
 
A rate hold is offered by the majority of lenders to clients who are purchasing a new home and need a mortgage. The purpose of the rate hold is to secure the interest rate on your mortgage application for a certain time period. Often, these holds range from 90-120 days. Bear in mind, these are typically not provided for anyone refinancing their mortgage or looking to transfer it from one lender to another. Only those looking to purchase a home or establish a brand-new mortgage.
 
Once you have created an application with us, We can submit it to an available lender who is offering a rate hold on an interest rate you want to take advantage of – all without a property attached.
 
For an example of how a rate hold works, consider this. On day one you submit your application to a lender for a fixed interest rate of 2.64% for five-years. On day 60, that interest rate moves to 3.12%. As long as your mortgage closes in the next 60 days, you are protected and can keep your lower rate of 2.64%. Plus, if rates happen to trend downward, you can also take advantage of the lower interest rate.
 
This rate hold does not commit you to working with that particular lending institution, nor does it commit you to working with us. It also does not hurt your chances of receiving an approval down the road! All it does is protect the agreed upon interest rate for you while you shop the market, so you don’t have to worry about it increasing while you are hunting for your perfect home!
 
Once the 120 days expires, if you have not found that perfect home fit or want to take advantage of different interest rates, there is nothing stopping you from submitting another rate hold! It will just be subject to the current rates on the day of submission.
 
If you are looking to purchase a new or secondary home this summer, please don’t hesitate to reach out to Capital Mortgages to get started on the pre-approval process and put your rate hold in place!

 

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

Five Questions You MUST Ask Your Mortgage Broker

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

 

What Types of Lenders are Available to You?

 

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

 

What Should I Keep In Mind For The Future?

 

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

 

Which Interest Rate Do I Qualify For?

 

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

 

How Much Should My Down Payment Be?

 

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

 

Which Type Of Mortgage Should I Consider?

 

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

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

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

Five Tips For Your First Mortgage

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

Maintain A Positive Credit History

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

Aim For a Home You Can Afford

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

Work With A Mortgage Broker

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

Avoid Sudden Job Changes

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

Reconsider Borrowing The Maximum Amount

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

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

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

Meet the Founders of Capital

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

Stefan Krepski, Owner, Capital Mortgages

 

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

 

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

 

 

Po Krepski, Owner, Capital Mortgages

 

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

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

 

 

Richard Morgan, Owner, Capital Mortgages

 

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

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

 

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

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

What is a Purchase Plus Improvement Mortgage?

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

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

 

How it Works: 

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

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

 

Example:

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

Home Purchase Cost: $350,000 

Cost of Renovations: $35,000 

Revised Purchase Price: $385,000 

Mortgage Amount: $365,750  

CMHC: $13,167 

Total Mortgage Amount: $378,917 
  

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

 

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

How to Choose a Mortgage Broker

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

 

Start your search

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

 

Set up a meeting

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

 

Ask questions

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

 

Check references

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

 

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

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

How to Become Mortgage-Free Faster

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

 

Accelerate your payments

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

 

Increase your payments

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

 

Make additional payments

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

 

Shorten your amortization schedule

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

 

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

 

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

Making the Most of Your Mortgage Broker

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

 

Be honest

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

 

Keep them updated

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

 

Referrals

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

 

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

 

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

What is Mortgage Default Insurance and Do I Need it?

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

 

What is mortgage default insurance?

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

 

Do I have to pay mortgage default insurance?

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

 

How can I minimize my mortgage default insurance amount?

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

 

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

 

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

4 Mortgage Pitfalls to Avoid as a First-Time Homebuyer

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

 

1) Not Getting Pre-Approved

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

 

2) Taking On More Than You Can Afford

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

 

3) Longer Amortization Period

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

 

4) Not Reading the Fine Print

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

 

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

 

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

10 Mortgage Terms Every First-Time Homebuyer Should Know

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

 

Amortization Period

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

 

Mortgage Term

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

 

Down Payment

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

 

Principal

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

 

Gross Debt Service Ratio (GDS)

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

 

Total Debt Service (TDS) Ratio

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

 

Fixed Rate Mortgage

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

 

Variable Rate Mortgage

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

 

Conventional Mortgage

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

 

High-Ratio Mortgage

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

 

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

 

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

The Best Holiday Gifts for New Homeowners

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

 

Key Holder

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

 

New Home Christmas Ornament

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

 

Personalised Painting

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

 

Engraved Cutting Board

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

 

Personalized Doormat

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

 

Champagne Flutes

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

 

Scented Holiday Candle

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

 

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

 

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

Ottawa’s Coolest Outdoor Activities this Winter

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

 

Winterlude

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

 

Ice Dragon Boat Festival

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

 

Patinage en Foret

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

 

Escapade Eskimo

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

 

Alight at Night in Upper Canada Village

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

 

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