Ottawa Mortgage Brokers: Capital Mortgage

Moving to Ottawa

At Capital Mortgages we strive to be your personal mortgage broker for life. By focusing on great solutions, compassionate relationships, and honest ethics, we are proud to experience an ever-increasing number of satisfied clientele.

How to move to the Ottawa area?

As a successful independent mortgage broker for more than 20 years, I know all too well the challenges of relocating from our hometown of Mississauga to the Ottawa/Gatineau area. In fact, I am relocating to the Ottawa area with my family of four soon. I thought I’d use this opportunity to help other families facing a similar situation to save time and money and lower their risk of losing out on attractive buying opportunities. Let’s discuss options to help you to make your relocation move more successful. First, as I have discussed on previous blog posts, I strongly advise you to be in a position to put down a significantly larger deposit in order to show the bank your solid finances and commitment to the mortgage and their mortgage program.

What are the job opportunities in Ottawa?

In Ottawa, you can expect a healthy job market, with many government and government contractor positions available. The federal government is known to have some of the best benefits in the country, making Ottawa an ideal place for career-minded individuals. However, these positions can be found on any contract, usually requiring 2-3 years, often with no benefits. If you want a stable job, and in an industry where you will be paid and supported, with good benefits, find a government contractor position. If the employment field is not your top choice, Ottawa is a diverse and extremely diverse city. Finding a company that does not match your field of expertise may be difficult, but one you are passionate about. What is the cost of living in Ottawa compared to the rest of Ontario?

What are the housing options in Ottawa?

Home ownership in Ottawa has seen some major trends in recent years. A larger share of the housing is in detached and semi-detached homes compared to detached homes in 2001. Like most Canadian cities, the cost of real estate has been on the rise over the past few years. Over the past 20 years, real estate prices in Ottawa have increased by 68.2%. Are there any income requirements to get a mortgage? No, any Canadian Citizen can purchase a home in the Ottawa area with a down payment of less than 5%. A credit score of over 660 (FICO) and an annual income of at least $60,000 is acceptable.

Benefits of moving to Ottawa

Charm. Ottawa has a charming atmosphere where people can just live and not worry about worrying. The areas of Ottawa that are more secluded are where you will find the most life-charming places. Some examples are the Gatineau Hills, Rideau Canal, Arnprior, Pakenham, the Kemptville Hills, the Rockcliffe/Ravenscrag areas, and Ottawa’s own Glebe. Ease of traveling Transportation in Ottawa can be a breeze. As well, people tend to be more relaxed because everything is accessible by foot, bus, streetcar or car. The city is perfect for cyclists, and from there, those who wish to take a break and stretch their legs can cycle from one great area to another. For those who have a more adventurous side, they can also kayak, canoe or cross-country ski from one end of the city to the other.

Life after a move to Ottawa

A typical move from Toronto or Vancouver involves not only an effort to unpack boxes, but also negotiate a maze of moving companies, Home Depots, and endless phone calls. The overall goal, in most cases, is to reduce your stress level while maximizing the value of your assets. Some or all of these efforts will be successful in reducing your financial stress in the short-term, but the results in the long-term are variable. There are ways to improve the investment of your belongings or to maximize the enjoyment of your family’s new lifestyle in Ottawa. For many families, the move to Ottawa was their most difficult decision. Moving, by definition, is a stressful task. Especially if there is a family to consider.

Minor setbacks and how to overcome them

Moving to Ottawa, Canada could be challenging. Despite the vast array of cultural experiences, economical opportunities, and simple lifestyle life, moving to Ottawa is always an uncharted way. Moving to Canada takes place in a specific way that we need to know a bit more about. Ottawa is different from cities of other provinces and in a different way from the country as a whole. There are several things that we must consider when moving to Ottawa, and the good news is that they are not impossible. Having in mind the fact that Ottawa is a federal capital, a full-fledged university town, and a haven for parliamentarians, embassies, and other state institutions, moving to Ottawa is easy – just think of those six words. Ottawa is the capital of Canada.

In summary, Ottawa is a great city to move to.

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

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Renew your Mortgage with Ottawa Mortgage Broker: Capital Mortgages

Refinancing your mortgage?

Refinancing your mortgage may be great if you want a better interest rate, have extra cash or reduce your monthly payments. However, many people haven’t thought about refinancing or don’t know what it is. Before deciding to refinance, know all the facts first, so you know what you are getting into.

So, what is refinancing? When you refinance your mortgage, you pay off your current mortgage in exchange for a new mortgage and new terms. The application and procedure for refinancing are very similar as to when you first applied for a mortgage. When you do this, it is possible to get a new mortgage with different terms, interest rates, monthly payment amount, and payment time.

If you decide to go this route, there are a few things you may want to consider, like what would the benefit be? Some loan contracts have penalties if you finish your payments early, in full or in part.

By taking another look at your mortgage, you may discover that the current mortgage rate is lower now than what it was when you first applied for your loan. In this case, there may be a possibility that you can lower your monthly payment if you don’t shorten the payment term or the balance doesn’t have a drastic change. In the industry, the rule of thumb is that if the current interest rate is at least two points lower than your current rate, it is well worth your while to look at refinancing.

Many people choose to switch to a fixed rate mortgage versus staying with an adjustable rate. As the name suggests, an adjustable rate may cause your interest rate to fluctuate from time to time, and probably stay at a higher rate. Switching to a fixed-rate can help a person get a constant lower rate at that time. Some people choose to go for an adjustable rate because in the beginning the rates are low, but can increase or decrease at any given point in time. When deciding to refinance, you will want to examine these options.

There are reasons why someone would want to refinance a mortgage in the hope that it will help pay other debts or they will receive lower rates. Before you enter into any agreement, consult a mortgage broker to help in making the best decision possible. Do your research when you look at different rates and terms to ensure you are getting a good deal and understand all of the new terms. So, if your credit score has changed, the interest rates have changed, or you are wondering if you may be able to save money, you may want to look into refinancing your mortgage.

Renew your Mortgage with Ottawa Mortgage Broker: Capital Mortgages

3 Steps to Take Before Applying for a Mortgage

Do you think it’s time to contact your local mortgage broker for a new home purchase or a refinance on your current home? Here are three things to consider before filling out the loan application.

1. How is your credit?

Your credit score will impact your ability to get a loan more than anything else. The higher your score, the better interest rate and terms you can get on the loan. The best thing to do is to view your credit report from the three credit reporting agencies, Transunion, Equifax, and Experian. You can do this once a year for no charge. Once you have the reports, you should look them over carefully to make sure all the information is correct. Once you’ve verified that everything is accurate, you will then need to look at your overall score. If your scores are anywhere above 580, you should be able to get a loan. Ideally, you want to be above 700, but there are programs that work with credit scores lower than that.

2. Pay down your debt as low as possible

There are two main reasons to focus on paying off your debt before applying for a new loan.

If you have any bad debt or are behind on any payments, your credit score will be lower. If you can pay off debts that show up on your credit report, you will see your score go up. Also, if you have a high debt to credit ratio, your credit score will be lower as well. A high debt to credit ratio means that you have used up most of your available credit limit. For example, let’s say you have a credit card with a $5,000 limit and you owe $4,500 on it. You will show up as a higher credit risk because you’ve almost tapped out your limit. On the other hand, if you only owe $500 on the card you will show up as a lower risk, and your score will be higher.

The other reason to pay off debts is that it will increase how much you can borrow on your home loan. Your mortgage broker will look at your debt to income ratio which is how much you owe on debt every month in comparison to your income every month. The more cash flow you have in your budget, the higher your mortgage payment can be. The higher the mortgage payment, the nicer house you will be able to afford.

3. Fix up your home

If you are not looking to buy a new home but only wanting to refinance your current home you not only need to do the first two items on this list, you also need to make sure your house is spruced up and looking nice. The refinance is based on a home appraiser giving value to your home. The more repairs that are needed, the lower the value the appraiser will give your home. You want the home to appraise as high as possible to get the best loan options. If you have at least 20% equity in your home, you will have the best rates, and you won’t have to pay extra mortgage insurance.
Your mortgage is usually your largest monthly expense, taking these steps will help ensure that you get the best deal possible with the lowest out of pocket expenses. If you are unsure, feel free to give Capital Mortgages a call, and one of our Mortgage Professionals will be happy to answer any of your questions.