Understanding Construction Financing Mortgages in Canada: A Comprehensive Guide

Understanding Construction Financing Mortgages in Canada: A Comprehensive Guide

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

1.What is a Construction Financing Mortgage?  

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

2.Eligibility Criteria 

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

3.Benefits  

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

4.How to Apply for a Construction Financing Mortgage 

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

5.Tips for Success 

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

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

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

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

You can also click here.

Multi-Family Financing and Mortgages in Canada

Unlocking the Potential: Multi-Family Financing and Mortgages in Canada

Investing in multi-family properties can be a lucrative venture in Canada, with a thriving rental market and increasing demand for affordable housing. However, navigating the intricacies of multi-family financing and mortgages can be overwhelming for both seasoned investors and first-time buyers. In this blog, we will explore the key aspects of multi-family financing and mortgages in Canada, providing you with the knowledge and insights to make informed decisions and unlock the potential of this promising real estate sector. 

1.Understanding Multi-Family Financing – The Basics:  

  • Loan Types: Explore the various loan options available for multi-family properties, such as commercial loans, conventional mortgages, and government-backed programs like CMHC (Canada Mortgage and Housing Corporation).  
  • Eligibility Criteria: Learn about the factors lenders consider when evaluating multi-family financing applications, including creditworthiness, income potential, property location, and property condition. 

2.Types of Multi-Family Mortgages:  

  • Commercial Mortgages: Discover how commercial mortgages work, including their terms, interest rates, and repayment options.  
  • Residential Mortgages: Explore the differences between residential mortgages and commercial mortgages for multi-family properties, including their eligibility criteria and financing limits.  
  • CMHC Insured Mortgages: Learn about CMHC’s role in supporting multi-family financing, including their mortgage insurance programs and how they can benefit investors.  
  • Private Lenders: Understand the role of private lenders in multi-family financing, including alternative financing options and their benefits and considerations. 

3.Key Considerations for Multi-Family Financing – Property Evaluation:  

  • Discover the factors to consider when assessing a multi-family property’s investment potential, including location, rental demand, market trends, and property condition. 
  • Debt Service Coverage Ratio (DSCR): Understand the importance of DSCR in multi-family financing, including how it affects loan eligibility and profitability.  
  • Cash Flow Analysis: Learn how to analyze cash flow projections for multi-family properties, including income, expenses, vacancy rates, and property management costs.  
  • Due Diligence: Explore the essential steps to take before finalizing a multi-family financing deal, such as property inspections, appraisals, and legal considerations. 

4.Tips for Successful Multi-Family Financing – Building Relationships with Lenders: 

  • Discover how to establish strong connections with lenders and mortgage brokers to increase your chances of securing favorable financing terms.  
  • Professional Assistance: Understand the value of working with real estate professionals, including mortgage brokers, real estate agents, and lawyers specializing in multi-family properties.  
  • Market Research and Trends: Stay updated on the latest market trends and rental demand to identify promising investment opportunities and make informed decisions.  
  • Long-Term Planning: Learn how to create a comprehensive financial plan for your multi-family property investment, including contingency funds, property management strategies, and exit plans. 

Conclusion

Multi-family financing and mortgages in Canada offer tremendous potential for investors looking to capitalize on the rental market’s growth. By understanding the intricacies of multi-family financing, selecting the right mortgage option, and conducting thorough due diligence, you can pave the way for a successful investment journey. Remember, proper planning, market research, and professional guidance are essential for maximizing your returns and minimizing risks in this thriving sector of the Canadian real estate market. 

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

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

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

You can also click here.

The Top Neighborhoods in Ottawa for First-Time Homebuyers

The Top Neighborhoods in Ottawa for First-Time Homebuyers

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

1.Westboro as one of The Top Neighborhoods in Ottawa 

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

2.Centretown

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

3.Sandy Hill

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

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

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

4.Hintonburg

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

5.Barrhaven as one of The Top Neighborhoods in Ottawa 

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

6.Orleans

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

Conclusion

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

 

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

 

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

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

You can also click here.

Ottawa Real Estate Market: Expert Advice from Capital Mortgages

Ottawa Real Estate Market: Expert Advice from Capital Mortgages

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

1.Work with a reputable real estate agent

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

2.Get pre-approved for a mortgage

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

3.Research neighbourhoods

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

4.Be flexible

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

5.Get a home inspection

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

6.Understand the closing process

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

7.Work with a mortgage broker

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

Conclusion

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

 

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

 

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

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

You can also click here.

The Role of Mortgage Default Insurance in Canada

The Role of Mortgage Default Insurance in Canada

When you’re purchasing a home in Canada, you may be required to obtain mortgage default insurance, also known as mortgage insurance. The insurance is designed to protect lenders in the event that a borrower defaults on their mortgage payments. In this blog post, we’ll explore the role of mortgage default insurance in Canada. 

What is Mortgage Default Insurance? 

It is an insurance policy that protects lenders in the event that a borrower defaults on their mortgage payments.  Homebuyers who make a down payment of less than 20% of the purchase price of the property, are required to have one. The insurance is paid for by the borrower and is typically added to the mortgage payments. 

How Does Mortgage Default Insurance Work? 

It is designed to protect lenders in the event that a borrower defaults on their mortgage payments. If a borrower is unable to make their mortgage payments, the lender can file a claim with the insurer to recover any losses. The insurer will then work with the borrower to try to find a solution to the problem, which may include modifying the mortgage terms or arranging a repayment plan. 

Who Provides Mortgage Default Insurance? 

In Canada, mortgage default insurance is provided by three insurers: the Canada Mortgage and Housing Corporation (CMHC), Genworth Financial, and Canada Guaranty. These insurers are approved by the Canadian government and are regulated by the Office of the Superintendent of Financial Institutions (OSFI). 

What are the Benefits of Mortgage Default Insurance? 

Homebuyers benefit from it by purchasing a home with a smaller down payment. Without mortgage default insurance, most lenders require a down payment of at least 20% of the purchase price of the property. For many Canadians, coming up with such a large sum of money can be challenging. Homebuyers can make a down payment of as little as 5% and still qualify for a mortgage with the mortgage default insurance. 

Additionally, it helps to promote a stable and secure housing market by ensuring that lenders are protected in the event of a borrower default. This reduces the risk of financial instability and ensures that lenders are able to continue to provide mortgages to Canadians. 

Conclusion 

The mortgage insurance plays a critical role in the Canadian housing market. It enables homebuyers to purchase a home with a smaller down payment and ensures that lenders are protected in the event of a borrower default. If you’re considering purchasing a home in Canada and have questions about mortgage default insurance, speak with a mortgage professional who can provide guidance and advice. 

Contact Us Today

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

 

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

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

You can also click here.

How to Choose the Right Mortgage Term for Your Needs

How to Choose the Right Mortgage Term for Your Needs

Choosing the right mortgage term is an important decision that can have a significant impact on your finances. The term of your mortgage is the length of time you have to repay your loan, and it can range from as little as one year to as long as 30 years. In this blog post, we’ll explore how to choose the right mortgage term for your needs. 

Steps to Consider when Choosing the Right Mortgage 

1.Consider Your Financial Goals to Choose the Right Mortgage

When choosing a mortgage term, it’s important to consider your financial goals. If you’re looking for the lowest monthly payment, a longer mortgage term may be the best option. However, if you’re looking to pay off your mortgage faster and save money on interest, a shorter mortgage term may be the better choice. 

2.Assess Your Budget 

It’s also important to assess your budget and determine how much you can afford to pay each month. A longer mortgage term will result in lower monthly payments, but you’ll end up paying more in interest over the life of the loan. On the other hand, a shorter mortgage term will result in higher monthly payments, but you’ll pay less in interest over time. 

3.Consider Your Future Plans to Choose the Right Mortgage

Your future plans can also play a role in determining the right mortgage term for your needs. If you plan to move in the next few years, a shorter mortgage term may be the better option. However, if you plan to stay in your home for a long period of time, a longer mortgage term may be more suitable. 

4.Factor in Interest Rates 

Interest rates can have a significant impact on your mortgage term decision. When interest rates are low, a longer mortgage term may be more attractive as you can lock in a lower rate for a longer period of time. However, when interest rates are high, a shorter mortgage term may be more favorable as you can pay off your loan faster and save on interest. 

5.Seek Professional Advice to Choose the Right Mortgage

Finally, it’s always a good idea to seek professional advice when choosing a mortgage term. A mortgage professional can help you assess your financial situation, budget, future plans, and other factors to determine the right mortgage term for your needs. 

Conclusion 

Choosing the right mortgage term requires careful consideration of your financial goals, budget, future plans, interest rates, and other factors. By taking the time to assess these factors and seeking professional advice, you can make an informed decision that aligns with your financial needs and goals.

Contact Us Today

Contact Capital Mortgages today to learn more about choosing the right mortgage and how we can help you through the each step of the way. 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.

Meet Paul Pepin


Putting YOUR Interest First!

We are living in challenging times. My goal is to make your mortgage financing process as easy and as thorough as possible.  Whether you are buying a new home, refinancing your existing home, or considering an investment property, I can help.  Communication is key so feel free to contact me as early as possible in the process with any mortgage and real estate questions you may have.

Why do I believe I can help find a mortgage solution for you.

I have been a licenced mortgage agent with Capital Mortgages since 2008.  Also, I have been a licenced Realtor (real estate sales representative) since 2015.   So, I have significant experience and knowledge of the Real Estate industry, in the key areas of Mortgage Financing and buying and selling of property.  Prior to 2008 I worked several years as a forensic accountant. So I am comfortable working with people, their goals, and their financial information.

I am also committed to Putting YOUR Interest First.  So, I have a personal interest in finding a mortgage solution that works for you.

Feel free to contact me with any mortgage or real estate questions you or your family and friends may have.  I will be happy to help.

You can call me direct at 613-795-7775 or email me at Paul@paulpepin.ca.

You can also Apply Now for a mortgage at www.paulpepin.ca.  Just click on Apply Now and start your application.

Back to the business…As Your Independent Mortgage Agent, I’m working for you, not the banks. I do business with over 60 lenders. Traditional institutions are concerned with selling only their own mortgage products. Dealing with a multitude of lenders means that I always shop the market on your behalf to find the right mortgage to best meet your particular requirements. Whether it’s a residential or commercial loan, I have access to a wide range of services and products to ensure your mortgage needs are met precisely at the most competitive terms and confidentiality and privacy is always assured.

Not convinced yet? Check out my Google reviews! I want to be a part of your next mortgage experience, we’ll make it awesome, together! Clients and referrals WANTED. Thanks as always for choosing the Brads Mortgages team.

Why Should You Choose to Use a Mortgage Agent?

My role as a mortgage agent is to act on your behalf. I have your best interests in mind and will find the best mortgage for you. As an independent mortgage agent, I do not work for an individual institution nor am I mandated by any one lending institution. I have a long list of lenders to choose from. My goal is to get you the best possible mortgage that you qualify for through fast, professional, and personal service. From first-time home buyers to seasoned real estate investors, I will take the time to work with you through your individual situation.

I have been working as an agent since 2003 and I have funded over $275 million in mortgages and counting. I fund not only low interest rate mortgages for residential homes; I also fund many different types of properties in the marketplace. I also fund mortgages across the country should you choose to purchase out-of-province. Residential or commercial, there is a mortgage for you!

Why Choose Capital Mortgages?

I work as a mortgage agent with Capital Mortgages. Capital Mortgages is one of the largest and most notable Mortgage Brokerage Firms in Ottawa. Capital Mortgages was established in 1999 and is proud to have served thousands and thousands of clients representing over one billion dollars in total mortgage volume.

I save you money by sourcing the best products at the best rates – not only on your first mortgage but through every subsequent renewal.

So whether you’re buying a home, renewing your mortgage, refinancing, renovating, investing, or consolidating your debts — I’m the Mortgage Centre mortgage advisor who can help you get the right financing, from the right lender, at the right rate.

Cell: 613.818.1477

The Pros and Cons of Fixed vs. Variable Mortgage Rates

The Pros and Cons of Fixed vs. Variable Mortgage Rates

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

Pros and Cons of Fixed vs. Variable Mortgage Rates

Pros of Fixed-Rate Mortgages

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

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

Cons of a fixed-rate mortgage include

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

Pros of Variable-Rate Mortgages

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

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

Cons of Variable-Rate Mortgages

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

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

What to Choose?

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

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

Conclusion

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

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

 

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

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

You can also click here.

Benefits of Working with a Mortgage Broker

The Benefits of Working with a Mortgage Broker for Your Home-Financing Needs

When it comes to buying a home, there is a big difference between working with a mortgage broker and a bank advisor. While both may offer similar services, the benefits of working with a mortgage broker are very important when it comes to getting the best rate and terms for your mortgage.

Mortgage Broker vs. Bank Advisor

A mortgage broker is a professional who is licensed to represent multiple lenders and provide access to a variety of mortgage products. The broker is able to compare rates, terms and programs offered by different lenders, and can serve as a liaison between the borrower and the lender. Because a broker is not tied to any one specific lender, they can often find better rates and better terms than what may be offered by a single bank. They also have access to many lenders and can help you find a loan that best fits your financial needs.

On the other hand, a bank advisor is an employee of a specific bank or lender and they are limited to offering the products and services of that particular lender. They typically have an incentive to push their own products, and may not be able to find the best rate or terms available on the market.

Benefits of Working with a Mortgage Broker

The benefit of working with a mortgage broker is that they are able to do the shopping around for you and save you time. They can help you compare rates and terms from different lenders, and provide you with advice and guidance that is tailored to your individual needs. They also have access to a wide range of lenders and can help you find the best loan for your unique situation.

 1. Access to a wider range of mortgage products

Mortgage brokers have access to a wide range of mortgage products from multiple lenders, including banks, credit unions, and other financial institutions. This means that you can compare a variety of options to find the one that best meets your needs.

 2. Expert advice

Mortgage brokers are experts in the field of home financing and can provide you with valuable advice on the best mortgage products and options for your situation.

 3. Time savings

Working with a mortgage broker can save you time because they can handle much of the legwork involved in obtaining a mortgage, such as submitting loan applications and gathering documentation.

 4. Potential cost savings

Because mortgage brokers have access to a wide range of products, they may be able to find you a mortgage with a lower interest rate or fees, which could save you money in the long run.

 5. Convenience:

Working with a mortgage broker can be convenient because they can often provide you with information and assistance remotely, such as over the phone or online.

 6. Personalized service

Mortgage brokers take the time to understand your unique financial situation and needs, and can provide personalized recommendations and guidance to help you find the right mortgage product.

In conclusion, working with a mortgage broker can offer a range of benefits when it comes to obtaining a mortgage. Mortgage brokers have access to a wide range of products from multiple lenders, which can give you a greater choice of options to find the one that best meets your needs. They are also experts in the field of home financing and can provide valuable advice and guidance to help you make informed decisions. Additionally, working with a mortgage broker can save you time and potentially money, and can be convenient and provide personalized service. Overall, going with a mortgage broker can be a helpful and efficient way to find the right mortgage for your situation.

Are you ready to take advantage of the benefits of working with a mortgage broker for your home financing needs? Contact Capital Mortgages today! Our team of experienced brokers will work with you to find the best mortgage solution to meet your needs. We have access to a wide range of products from multiple lenders, and can provide expert advice and personalized service to help you make informed decisions about your home financing. Don’t miss out on the opportunity to find the best mortgage for your unique situation. Contact Capital Mortgages today and let us help you make your dream of homeownership a reality.

 

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

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New to Canada mortgage

Making the Most of Your New to Canada Mortgage: 7 Tips for Success

Moving to a new country is an exciting experience, but it can also present a number of financial challenges. One of the most daunting tasks for newcomers to Canada is obtaining a mortgage. It can be difficult to navigate the system and understand the different mortgage options available to you. Fortunately, there are a few tips and tricks you can use to make the most of your new to Canada mortgage and ensure a successful transition into your new home. In this article, we will provide seven essential tips to help you get the most out of your new to Canada mortgage. From understanding the various mortgage options to choosing the best lender for your needs, these tips will help you secure a mortgage that works best for you and your family.

Understand the Different Mortgage Options Available to You

When comparing different mortgage options, you will quickly discover that there are a variety of different types available. Understanding what each type offers will help you to select the option that is the best fit for you and your financial situation. Some of the most common types of mortgages include:

Fixed-rate mortgage – With this type of mortgage, you will receive a fixed interest rate for the term of the loan. This means that you will know exactly what your mortgage payment will be and will not experience any surprising fluctuations in interest rates. However, if interest rates decrease and you are on a fixed-rate mortgage, you will not have the option of taking advantage of lower rates.

Variable-rate mortgage – With this type of mortgage, your interest rate will be determined by the market. This means that you will have the option of taking advantage of lower interest rates if they happen to decrease. However, if rates happen to rise and you are on a variable-rate mortgage, you may find that you are paying more each month.

Learn About the Important Mortgage Terms

Another important factor to consider is the difference between the terms “loan amount” and “loan amount to be paid”. The loan amount is the total amount of money that you are borrowing, including the interest. The loan amount to be paid is the total amount that you have to repay, including the principal and the interest. The difference between these numbers will be your down payment. A good rule of thumb is that your down payment should be at least 20% of the total value of the home.

Another important term to become familiar with is amortization. Amortization is the process that allows you to repay your mortgage over a set period of time. The most common types of amortization periods include 25 years, 30 years, and 40 years. The higher the amortization period, the lower your monthly payments will be. However, it will take you a significantly longer period of time to repay the full amount of your loan.

Gather the Necessary Documentation

When applying for a mortgage, you will likely be required to provide a large amount of documentation to prove your employment history, income level, and creditworthiness. It is important to gather this documentation as soon as possible so that you can have it ready to submit with your application. Some of the most important documents that you will need include proof of employment, income tax forms, and a credit report. In order to obtain a good credit report, you may need to open a credit card in your own name even if you do not intend to use it. This may seem counterintuitive, but it will help establish a credit history. You will then be able to close the credit card after a few months in order to have your credit report closed.

Compare Different Mortgage Lenders

When comparing different mortgage lenders, you will want to select the one that is best suited to your needs. You can do this by carefully considering each lender’s rates and terms. You will also want to consider the reputation of the lender and whether or not they are a good fit for your financial situation. This will help you to select the lender that gives you the best chance of securing a mortgage with favorable terms and a low interest rate. You can also utilize online mortgage calculators to help you to compare different mortgages and get a better idea of what your monthly payments will look like.

Some online lenders are better suited to newcomers to Canada than others. Make sure to carefully select a lender that is willing to work with newcomers and does not have an overly stringent credit and income requirements. This will help to ensure that you are able to qualify for the mortgage you want and need.

Take Advantage of Government Programs

Many government agencies offer mortgage assistance programs that are designed to help first-time home buyers and people with low incomes. There are a number of different programs available, but they are often extremely competitive and have strict requirements and deadlines. Take advantage of these government programs if they are right for you. This will help to lower the amount of money you need for your down payment and make home ownership more attainable.

Utilize Mortgage Pre-Approval

If you are in a rush to secure a mortgage, you may be tempted to accept the first offer that comes your way. This can be a costly mistake, as it can be difficult to find a new mortgage if the lender you accepted an offer from ends up retracting it. To avoid this, you can utilize mortgage pre-approval. Pre-approval essentially lets the lender know that you qualify for a certain amount of money and will allow you to more easily find a lender once you find a home that you want to purchase. Select a mortgage broker to help you with your pre-approval, as they will be able to do this quickly and effectively. They will also be able to help you to navigate the mortgage process and come up with a strategy to ensure that you are able to secure the most favorable terms.

Find a Mortgage Broker Who Understands Your Needs

Finally, make sure to find a mortgage broker who is well-versed in the needs of new Canadians. This will help you to find the mortgage that works best for you and your situation. Your mortgage broker will likely have access to mortgage options that are not available to the general public. This can help you to find the best mortgage for your unique situation. A good mortgage broker will also be able to help you to navigate the often-confusing process of securing a mortgage and ensure that you are able to secure the most favorable terms available to you. This can help you to avoid unnecessary stress and anxiety and ensure that you are able to achieve your dream of homeownership quickly and efficiently.

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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multifamily financing

The 6 Essentials You Need to Know About Multifamily Financing

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

Basics of Multifamily Financing

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

Equity Financing

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

Debt Financing

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

Understanding VAN, IRR, and ROI

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

Finding the Right Property to Finance

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

Tax Advantaged Investments

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

Conclusion

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

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

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You can also click here.

firm mortgage

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

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

What is a Firm Mortgage?

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

Why Should You Care About a Firm Mortgage?

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

What Are the Requirements?

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

Strategies to Earn Approval

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

Bottom Line

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

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

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The Fundamentals of Construction Financing

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

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

What is Construction Financing?

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

Why Is Construction Financing Important?

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

Loans and Grants for Developers

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

Equity Investments for Developers

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

Bottom Line

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

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

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inspecting a new home

8 Things You Should Check When Inspecting a New Home

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

Licensed and Certified Inspectors

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

The Exterior of the Home

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

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

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

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

The Roof

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

Windows and Doors

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

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

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

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

The Foundation

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

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

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

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

Interior Walls and Ceilings

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

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

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

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

Electrical Systems

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

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

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

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

The Water Heating System

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

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

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

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

Summary

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

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

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5 Ways to Increase Your Property Value

5 Ways to Increase Your Property Value

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

Know the local market

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

Keep your home in great condition

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

Update your kitchen and bathrooms

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

Add fresh landscaping

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

Add value with small renovations and repairs

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

Conclusion

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

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

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Should You Renovate or Relocate Your Home

Should You Renovate or Relocate Your Home? What To Consider Before Making a Decision!

Do you feel like your house has lost its charm and looks old and outdated? If so, it’s time to consider either renovating your home or finding a new place to live. Both of these options can be overwhelming and require significant time, effort and money. However, with the right planning and advice, you can make the right choice for you and your family. Here are some things to think about when deciding whether to renovate or relocate your home:

Decide what you want to change about your home

If you’re planning on renovating your home, start by deciding what you want to change. Are you looking to add more space to your home? Do you want to change the layout? Do you want to add a new bathroom or kitchen? How much you’re able to change your home will depend on the type of renovation you’re doing. For example, if you’re looking to build a new addition to your home, you’ll be able to do whatever you want with the design and layout. However, if you’re looking to remodel your kitchen, you’ll have a lot less freedom. You’ll need to work within the existing layout of your home and the types of materials used in the construction.

Consider how much you’re willing to spend

As with any major project, you’ll need to consider how much it’ll cost. You’ll need to factor in costs like the price of materials and contractors’ rates. You’ll also need to consider the cost of moving if you’re looking to relocate. Where you live will also have an impact on how much it’ll cost to renovate or relocate your home. For example, it will cost significantly more to renovate or relocate in a major city than it will in a small town. Whatever you decide to do, it’s important to have a realistic budget in mind so you don’t end up spending more than you can afford.

Think about where you’d like to live instead

Before you consider renovating or relocating your home, you should think about where you’d like to live instead. You need to consider factors like the quality of the neighborhood, your commute to work and the local school system. It’s important to find a place that is right for your family. If you’re planning on relocating, you’ll need to do some research to find places that might be right for you.

Find out how much renovating will cost

There are many factors that will impact the cost of renovating your home. Some of these include the type of renovation you’re doing, the materials you’re using and whether you need to hire contractors. If you’re doing a small renovation like adding a new bathroom or updating the kitchen, you could do it yourself or hire a contractor for a fairly reasonable price. However, if you’re doing a major renovation like adding a new floor or building an addition, it’s going to cost a lot more.

Discover the pros and cons of relocating

If you’re considering relocating, you should first explore the pros and cons of this decision. Some of the pros of relocating include:

– You’ll have more choice as to where you live: If you’re looking to relocate, you’ll have a lot more choice as to where you’d like to live.

– You may be able to find a larger home at a lower cost: If you’re looking to relocate, you’ll likely be able to find a larger home at a lower cost than if you’re renovating.

– You can avoid the hassle of a major renovation: If you’re planning to move, you won’t have to deal with the hassle of a major renovation.

The Bottom Line

When deciding whether to renovate or relocate your home, it’s important to consider all of your options. This will help you make the best decision for you and your family. Remember, it’s important to consider factors like the cost of renovations and the cost of moving as well.

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.

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.

Purchasing a Second Property

Purchasing a Second Property

Financing Options for Purchasing a Second Property: Use Your Home Equity to Land Your Dream House.

Did you know that many homeowners are paying off their mortgage early in order to use their home equity for purchasing a second property? It’s true. Depending on the property, it may be possible to purchase a new home without having to put any additional money down!

If you don’t have any cash on hand and want to buy a second property, then this is the article for you. We will go over: Your mortgage, how much is left on your mortgage, what kind of discounts you can get when refinancing your home, and the different ways of financing your next purchase.

Options for financing a second property

When purchasing a new property, there are two options for financing. There are loans that are backed by the government or private lenders.

If you get a loan through the government, you will need to put at least 20% down on the house. These loans are cheaper than private lenders but come with strict guidelines and have high monthly payments. They also have some strict qualifications that some people may not be able to meet. Private lenders, on the other hand, only require 5-10% down up front and have some more lenient requirements. But they typically have higher interest rates so monthly payments may be higher.

The type of loan depends on your personal preference and qualifications which is why it is important to do your due diligence before making any decisions.

Getting a mortgage

If you want to use your home equity for purchasing a second property, then you will need to refinance your current mortgage. The following are the steps to take:

1: Get prequalified for a mortgage and find out how much equity is left on your home.

2: Find out what the interest rates are and the monthly payments that you will be required to pay.

3: Calculate what you can afford for monthly payments and compare it to the monthly payment of the new loan.

4: Refinance your mortgage and make sure that your finances will allow you to make both payments every month without any financial hardship.

Using home equity to purchase a second property

A lot of people are using home equity to purchase a second property. There are many benefits to this, for example:

  • You don’t have to put any money down!
  • Refinance your mortgage and pay it off early so you can use the equity on your house for purchasing a new home.
  • Invest in real estate without having to go through the hassle of purchasing one with cash.

This is an excellent way of being able to purchase properties without having to spend any of your own money. Here are some steps you will want to take:

What can you do with the money from your first sale?

The first thing you need to do is determine how much money you have from the first sale of your property. You can use this as a down payment for your next purchase.

Here are some examples:

  • If you had $10,000 left on your mortgage and sold your house for $200,000, then you would have $190,000 left over.
  • If you had $50,000 left on your mortgage and sold your house for $500,000, then you would have $450,000 left over.
  • If you had $100,000 left on your mortgage and sold your house for $1 million dollars, then you would have $900,000 remaining in equity which is enough for a down payment or to cover closing costs on a new property.
Conclusion

The options for financing a second property are plentiful when you have equity in your home. You can use your home equity for a traditional mortgage or cash out the equity in your home to purchase a second property, all while leaving your primary residence fully intact.

But if you do decide to sell your home, you will want to plan for what you will do with the money that is left over.

Financing options for purchasing a second property are only one consideration when it comes to making this big decision.

For more information on what to consider when buying a second property, click the link below.

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

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

You can also click here.

Ottawa Ontario: Best Mortgage Brokers

Ottawa Housing Market

Tips for Local Buyers and Sellers.

The Ottawa housing market can be a difficult one to navigate. With a mix of different types of economies and a range in house prices, it’s important to know what you’re getting into. It can be easy for buyers to rush into a purchase without considering the consequences. Likewise, sellers need to make sure that they don’t overprice their home in order to sell quickly.

If you’re looking for tips on how to navigate this market, keep reading. Here are some strategies for both buyers and sellers so that they can get the best deal possible!

What is the Ottawa housing market like?

The Ottawa housing market is influenced by foreign investment, low interest rates, and a strong job market.

The housing market in Ottawa is currently experiencing a “soft landing”. This means that prices are still high but not at their peak value. There’s still an opportunity for buyers who want to purchase a home now.

Another factor that makes the Ottawa housing market unique is that it has one of the highest concentrations of millennials in Canada. With this demographic being so influential, it’s important to take their needs into account when selling your home.

Tips for buying a home in Ottawa

The first thing to do, before you even start searching for a new home, is consider your budget. This sounds obvious but it can be easy to get carried away in the excitement of buying a home and forget about the financial realities.

Next, when looking at homes, you need to know what you’re doing. It’s important that you have the right information in order to make an informed decision. You should have a solid knowledge of how much money can be borrowed from a lender in Ottawa and where in the city you might find good schools, daycares and public transportation options.

You also want to think about your commute. If you work in downtown Ottawa, for example, it’s going to take a long time if you live in rural areas with poor public transit options.

It’s also worth considering whether or not you want/need a yard for children or pets – this will impact the type of house that makes sense for you from an investment perspective as well as from a lifestyle perspective.

Tips for selling your home in Ottawa.

If you’re a seller, it’s important to remember that the Ottawa housing market is a competitive one. With a lot of buyers on the market, sometimes sellers can fall into the trap of pricing their home too high in order to sell quickly. That’s a good way to end up with lost profits!

In order to ensure that your home sells for as much as it can, don’t price it too high or too low. The median price for homes in Ottawa is $408,000 and the average days on market is 101. This means that homes priced between $400,000 and $420,000 typically sell within 100 days. If you overprice your home by more than 10 percent, you could end up waiting months or even years before it sells.

So what should you do? Start by using recent comparables to estimate how much your home should be worth and then price accordingly. It’s also important to take into account any renovations or other upgrades that you’ve made to the home – those will help increase its value!

It’s also worth noting that homes closer to major transit lines or highways tend to sell faster than those further away from such amenities. So if you live close to such an amenity (or

Using a Mortgage Broker

A mortgage broker is a professional who can help you find the right mortgage. They’re experts in the industry and will know what kind of mortgage to recommend based on your needs, as well as whether it’s a good idea to use a variable or fixed-rate mortgage.

Mortgage brokers are paid by the bank they work for, which means they have an incentive to recommend a product from that bank. This is unlike realtors who are paid by your buyers and sellers commission, meaning they don’t have any incentive to recommend one product over another.

When you’re looking at lenders, it’s important that you compare their rates with those of other banks – not just the one that is paying your broker. You might be able to find a better deal with another lender!

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

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

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Tips for Buying a Home in Ottawa with Capital Mortgages

Buying a Home in Ottawa Tips

Tips for Buying a Home in Ottawa: What to Consider and How to Prepare

Capital Mortgages in Ottawa. We understand that today’s consumer is looking for optimum mortgages with minimum inconvenience, lower borrowing costs, sustainable peace of mind, and increased personal wealth by becoming mortgage free sooner. Let us help you with buying a home in the Ottawa area.

What to Consider when Buying a Home in Ottawa

Before buying a home, do some research, make a plan, and research the area.  In order to successfully buy a home in Ottawa, first consider what kind of home you want to buy. Different home types exist, from townhouses to detached homes, to condo apartments.

Investigate what all of these home types have in common, and the things you want to take into consideration when purchasing any of these home types. For example, many homes in Ottawa are attached to garages, and the location of the garage is not always the highest consideration in the purchase of a home, but it is vital to finding a home that suits your needs.

While selecting a home, many considerations come into play: location, home size, home style, monthly payments, number of bedrooms, and number of bathrooms.

How to Prepare for Buying a Home in Ottawa

You will find that buying a home in Ottawa is a complex process – like a building process, purchasing a home is a commitment. So, it’s very important to learn about the process from different perspectives and to be well-informed before making the final purchase.

Know what you are looking for, be realistic about your budget, and prepare to put together the documentation required before you commit to the purchase.  The above factors are vital to become a successful homebuyer in Ottawa and will ensure that you are giving yourself the best possible chance to purchase a property that is a good fit.

Getting the Lowdown on Ottawa. Buying a house is one of the most exhilarating feelings that you can ever have.

What to Consider when Buying a Home in Ottawa

Know the Difference Between a Buyer’s Market & a Tight Market. When purchasing a home in a strong real estate market, there is increased demand, higher prices and an increased number of buyers who can qualify. In a tight real estate market, it is very difficult to secure a mortgage and the competition is especially fierce. Sellers in a tight market will negotiate hard for a much higher selling price because there is a surplus of buyers willing to pay over asking price.

However, the opposite is true in a seller’s market. Factors to Consider when Buying a Home in Ottawa. Your income is relatively stable. If you aren’t sure if you have enough money to cover the down payment, keep an eye on your bank statements or income tax returns.

Location

We believe Ottawa will continue to attract successful people from all over the world, including highly educated professionals and highly skilled workers. More and more people are taking advantage of our educated workforce to live here, raising their families, buying homes, and investing. Ottawa’s transit system, in combination with amenities like our green spaces, trails, bike lanes and great amenities like schools, shopping, dining and entertainment, attract people to the Ottawa area.

Our area is also one of the best places to get away in the summer. It is perfect for camping, water sports, walking and outdoor activities.  Most people’s taxes are still among the lowest in Canada.

Neighborhood

Our mortgage experts understand that the value of a home often depends on the surrounding neighbourhood. This is one of the main reasons why the Federal Government introduced the National Housing Strategy that will support over 500,000 affordable housing units and repair and build 400,000 more over the next 10 years. At Capital Mortgages, we are ready to act now to provide mortgage financing to home buyers within our area.  Things to Consider Before Buying a Home in Ottawa.  With that being said, let’s explore some of the factors to consider before purchasing a home in Ottawa.

Proximity to schools

Since we are located right in the heart of Ottawa, we have the benefit of having many elementary schools right on our doorstep for the kindergarten to grade 12 classes. That said, there are also many private and other good quality high schools in close proximity for students that have aspirations to go to university. Some private schools are in downtown Ottawa as well.

However, there are many parents who opt to enroll their child in our extremely good local public school system and they feel confident that they will have good teachers, access to a good arts curriculum, and other benefits.  Vacation time.  We can also recommend travelling to a lot of vacation spots in the Ottawa area and other parts of Canada.

Proximity to work

When you’re not working, you’re probably travelling to and from your place of work (either by foot or public transportation), meaning you’re not paying for parking.  Finance a home in a more affordable area? Better still, is it near your place of employment, allowing you to make the most of your monthly wages?

This can save you lots of money every month, while offering additional peace of mind knowing that your payments are being made efficiently.  You may be tempted to go for a location close to Ottawa’s downtown core (such as Orléans or Kanata), but that’s not always the smartest move. Many believe the money you’ll save at the outset will allow you to make an investment into a better home for future growth. However, consider your time cost.

Style of home

Whether you buy a new build or a resale, the style of home you select to live in has a strong influence on what you are able to purchase. The age of the home itself can also be a factor in the cost of a mortgage. A number of old homes in the downtown core are becoming available to buy, and for the right buyer the homes may well be relatively inexpensive.  Budget for a house you can live in.  You should budget for a house that you can easily fit your family in, but not so large that the mortgage is unaffordable.  Cash Flow.  Prepare your financial affairs to accommodate your needs for an affordable mortgage. For example, if you already have a rental property, perhaps you have another source of income.

How to Prepare for Buying a Home in Ottawa.

Choose a Mortgage Advisor.

Get your Credit Score

Obtain your Financial Records

Meet with a Mortgage Broker here at Capital Mortgages

Conclusion

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

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

You can also click here.

Ottawa Real Estate and Capital Mortgages. Best Ottawa Broker

Ottawa Real Estate

Ottawa Real Estate: Best Ottawa Houses and Condos to Buy

You want a mortgage broker to help you understand the ins and outs of purchase financing — whether it’s your first home or you are a repeat buyer.

Understanding the Ottawa Real Estate Market

Remember how I said it was a good idea to find a mortgage broker in your area? You need to find someone you can trust, who has the experience to find you the perfect mortgage and can talk your way out of a tricky situation. We recommend Capital Mortgages as a very trustworthy broker in Ottawa and you can find them on this website. Getting Approved for a Mortgage. You want to find a lender you can trust and feel comfortable talking to. When you first become a homeowner, you want to be your own independent lender. It’s your money!

How Do I Buy a Home?

Step 1: Find a House to Buy. The first step to buying your first home is to find a house to buy. Ensure it is within the budget you think you can afford.

The Process of Buying a House

The mortgage process starts with your loan application. If you are buying your first home, it’s typically a short, simple application, and with many lenders, your application is completed online and submitted by mail. With less than two weeks to go before closing, you’ll meet with your mortgage lender, or “servicer,” in person and sign the loan papers. The Mortgage Debt After you’ve signed the loan papers, you’ll be able to close on your mortgage loan, including the last few moving expenses and stamp duty you paid for the home, over the phone. You’ll be required to provide any additional paper work and pay the administration fees.

Tips for First-time Buyers

When to buy your first home? Buying your first home is a special event that has lots of considerations and should be handled in an organized way. As a first-time buyer, you have a lot of big decisions to make, and don’t want to make the wrong ones.

When to sell your first home? If you are getting ready to sell your home, you have a few more considerations to deal with. Before putting it on the market, make sure the place is in good condition and ready to go. A few fixes can help make sure you get the best price for the home you have worked hard to own.

Checklist for First-time Home Buyers. There are some important questions to consider before you start your first home search. We’ve asked four of our real estate experts to give us their advice for a good checklist.

Buying a Condo

Finding the best condo condos in Ottawa is a difficult task. It’s complex and you need an understanding of a variety of factors, including property taxes, unit fees and condo board meetings. Here’s how it breaks down: Condos priced below $300,000 are few and far between in the City of Ottawa and may need to be bought in a house or apartment complex or purchased in a multi-unit development, like an apartment or a townhouse. These houses or apartments are often near train stations, making access and commuting to work easy. Depending on your budget, there are many options.

A Mortgage Broker’s Role in Real Estate

Like a good parent, your mortgage broker will be your guide and your teacher. He/she will help you take advantage of the many benefits of having a mortgage. These benefits include: The income-earning potential of your mortgage. Freedom from monthly house-related expenses. Potential for growth in capital gain potential the power to customize your mortgage terms. How Much You’ll Pay in Mortgage Interest. Most experts agree that the mortgage interest rate is the most important factor in calculating your borrowing cost. The annual percentage rate (APR) is the amount you will pay annually on your mortgage payment. However, it’s important to note that there are several ways to calculate how much interest you will pay on your mortgage.

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

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

You can also click here.

 

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

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.

Home Renovations That Can Increase Your Property’s Value

Thinking of selling your home? Lucky for you, Ottawa is currently experiencing a resounding seller’s market, with the average price of homes sitting at a historical all-time high. To generate even more income from the sale of your property, why not consider some of the following renovations to increase its total value?

Finish your basement

This is a great way to add more heated square footage to your home and increase your home’s value by about $50,000 on average.

Open up your floor plan to create space

Today’s buyers prefer open concept living spaces that combine the kitchen, living room and dining room. Invest in knocking out the walls between these spaces to create a wide-open, inviting room that will attract potential buyers.

Increase closet space

Living in Canada with four seasons, extra closet space for seasonal wardrobes is always welcome! 

Modernize kitchens and bathrooms

You don’t necessarily have to completely overhaul your home’s kitchen and bathrooms, but a minor remodel that will modernize them by incorporating new cabinet fronts or hardware will instantly boost your home’s value.

Improve your home’s curb appeal

A new front door, clean landscaping and nice outdoor lighting fixtures are just some of the ways that you can wow potential buyers when they first see your home. These are quick, easy improvements that greatly boost your home’s physical appearance upon first glance.

Replace carpets with hardwood floors

Carpeted floors are a thing of the past! Modern buyers are interested in hardwood floors throughout the house and will add in their own accent rugs to warm up a space.

Redo the roof

If your home is due for a new roof, replacing yours can recover 107% of its cost at the time of resale and will set your property apart from similar homes for sale in the neighbourhood.

Install a smart thermostat

These types of thermostats can adjust your home’s energy consumption and lower your utilities costs. They’re currently ranked as one of the three most-wanted home technologies by prospective buyers.

 

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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.

Why is Buying Property More Financially Savvy Than Renting?

There’s no denying it – owning a home in today’s incredibly competitive real estate market can be daunting. From bidding wars to the highest property prices in history in Ottawa, it can seem like much more comfortable of a bet to rent. However, there are some undeniable benefits of buying property – read on to find out why it may be a better choice.

1. You’re building equity

Each payment you make towards your mortgage is putting money in YOUR pocket, not somebody else’s! Granted, the first few years of your mortgage payments will go in part towards interest, but at the end of the day you’re still building equity and increasing your net worth.

2. You gain privacy and the freedom of choice

Not a fan of your kitchen? You can renovate! Feel like painting your walls in a bright color? Nobody is stopping you. Owning a home means that you have the option to decorate and make changes to it as you please. You’ll also get to avoid visits from landlords, or having to play by anybody else’s rules (unless you live in a condo, in which case you’re required to follow the building’s guidelines). 

3. Your property will likely increase in value

At the rate that the Ottawa property market has been accelerating, the same home that you bought for $600,000 today will likely be worth more in even just a year. This means that if you choose to sell, you get to keep the capital gains on your property, minus any applicable tax.

4. Your monthly mortgage payments will sometimes be cheaper than renting

Depending on a variety of factors such as your neighborhood, the cost of your property, and the cost of your property taxes, your mortgage payments will sometimes be cheaper than renting the same home. Even if your monthly mortgage payments when factoring in additional costs ends up being higher than the cost of rent, know that you’re guaranteed to be paying a fixed amount per month for years to come – unlike renting, where a landlord can easily spike the price.

If you’d like to crunch the numbers and figure out if buying a home is worth it for you, don’t hesitate to give us a call today at 613-228-3888 to speak to a mortgage broker.

 

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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.

Best Ottawa Neighbourhoods To Buy In As A First-Time Homeowner

Property prices in Ottawa neighbourhoods have been on the rise for years, with the average price of home sitting at $677,197 at the time of writing. That is no small number, and one that can easily feel discouraging for a single person looking to buy their first home, or a young family just getting started in real estate. 

You can easily move further out from the city, but not everybody is open to that. There are also neighbourhoods where prices are still affordable, but that doesn’t necessarily mean that they’re areas you’d want to live in.

It’s a tricky market for sure, and one that requires lots of research when it comes to deciding what you’re willing to be flexible about, and what your non-negotiables are.

Here are ten Ottawa neighbourhoods you could consider as a first-time buyer, based on a mixture of affordability and a high standard of living.

1. Carleton Place

Located just 20 minutes past Kanata, this charming town offers a mix of natural beauty and most of the amenities you could need.

2. Kars

Right next to Manotick, this rural town is quickly developing and is right along highway 416.

3. Findlay Creek

This newer neighbourhood in Ottawa’s South end is incredibly popular with families. 

4. Kanata

If you don’t mind suburban life, this is an excellent choice. Prices are still relatively affordable, and Kanata is its own mini-city within Ottawa.

5. Stittsville

Similar to Kanata, and just slightly further out.

6. Carlington

Reasonable price points, with the convenience of being just a few minutes’ drive from the city center. 

7. Hintonburg

While prices are climbing due to its location, you can still find a great fixer-upper in this trendy neighbourhood.

8. Vanier

Yes, historically Vanier has been a rough neighbourhood. However, it’s gentrifying at an incredible pace and parts of it are surprisingly scenic due to its close proximity to New Edinburgh and Rockcliffe.

9. Hunt Club-Windsor Park

This will be quite a commute if you work downtown, but you can find beautiful, new single family homes here at an affordable price.

10. Gatineau

Ok, this isn’t necessarily an Ottawa neighbourhood – but hear us out! You can stumble upon some absolutely gorgeous properties right across the bridge at a fraction of the cost of what you’d pay on the other side of the border. It’s worth checking out.

Looking to buy a home in Ottawa? At Capital Mortgages, we will provide you with the right advice and make the application process lucid, simple, and tailored to your needs.

Connect with one of our experienced mortgage agents today!

 

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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.

Besides My Mortgage, What Other Costs Are Involved In Buying A House?

Congratulations! You’ve found your dream home, have been pre-approved for your mortgage and have all the funds ready for your down payment. Buying a house is a moment many people dream of, and it is one of the most important milestones in many of our lives. 

Not to be the bearer of sobering news, but there are quite a few other costs to consider before you collect your mortgage funds and get the keys to your new abode. Arming yourself with the facts and being prepared for the entire process are what will make it go smoothly, so here are some other costs you should anticipate:

A home inspection (optional)

Before purchasing your new home, you’ll want to make sure it’s in good condition. This cost is optional, but one that we recommend to many of our clients.

Property appraisal

Your lender may request an appraisal to get an idea of the property’s value for financing purposes.

Property survey

This looks at your property’s boundaries, potential setbacks and restrictions that can impact its value. The seller may have one they can give you, or you can hire a land surveyor to provide it.

Title insurance

Your lender may require you to provide this, which protects you from title fraud, municipal work orders, zoning violations and other property defects. This is usually included in the legal bill from your lawyer.

Property insurance

This one is a given! This type of insurance protects you from fire and other damaging disasters.

Mortgage life, critical illness, disability, or job less insurance (optional)

There are all sorts of unforeseen circumstances that could affect your ability to pay your mortgage. This is an optional decision that would protect you and your family’s financial future.

Land transfer tax

This tax is based on your home’s purchase price and other factors. Most provinces charge this, and some cities charge their own municipal land transfer tax.

GST or HST

New homes may be subject to GST or HST.

Property taxes, utilities, condo fees

The seller may have pre-paid these before you take ownership. You would reimburse them for a portion of the costs from your closing date. 

Mortgage default insurance

Mortgage default insurance is required if your down payment is less than 20%.

Legal fees 

Your lawyer’s legal fees and any other expenses your lawyer had to pay on your behalf are part of your closing costs.

Questions about the specifics of any of these costs? Don’t hesitate to give us a call at 613-228-3888 today!

 

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