Overcome the challenges of being a self-employed homebuyer.
Millions of Canadians are self-employed; many financially stable, wealthy and successful who enjoy the benefits of working for themselves. But, when they begin thinking about buying a house it doesn’t pay to be self-employed as it typically becomes more difficult to get approved for a home loan.
That’s because the major banks have a limited box they lend within. They look for secure, stable and long-term employment, typically requiring at least 2 years’ of income statements to qualify. Self-employment is considered an alternative to the norm, resulting in application denial or unfavourable lending terms. So, what’s a self-employed professional to do?
Being self-employed doesn’t mean that you can’t achieve your dream of homeownership. Or, that you should have to sacrifice favourable lending terms just because of your professional status. As your mortgage broker, we don’t discriminate. Your Everything Mortgages Broker will work with you to develop a self-employment strategy that will allow you to get the mortgage you actually want and deserve.
We work with lenders who understand the unique challenges self-employed Canadians face. They understand these individuals have tax write-offs creating significant reductions in their declared income. We can use your gross deposits and work with as little as 6 months of you being self-employed to qualify. If you think you don’t have options as a self-employed borrower, think again.
Resources to succeed as a first time homebuyer.
Buying your first home is one of the most exciting and possibly the biggest financial decisions you’ll ever make – and you want to do it right. Nearly half of first-time homebuyers in Canada are young professionals who simply want to “become a homeowner.”
But, many aspiring homeowners quickly realize how challenging it is to fulfil their dream of homeownership. Purchasing a home is a big financial commitment involving many tasks, steps and requirements. Challenges may pop-up along the way making the process difficult, confusing and complicated, leaving many aspiring homeowners feeling anxious about making an expensive mistake.
So, where do you go? Or, more importantly, who do you trust with such a significant financial decision?
With a deep understanding of your long-term financial goals and current financial status, your Everything Mortgages Broker will guide you through the homebuying journey, answering your most daunting questions and mitigating any challenges along the way.
Use your home loan to achieve your financial goals
Mortgage refinancing is renegotiating your existing mortgage loan and replacing it with a new one. Homeowners will often refinance to obtain a lower interest rate, shorten the term of their mortgage, reduce interest payments, consolidate debt, finance a large purchase or to raise funds to cover a financial emergency.
When you refinance your mortgage you get new terms on your existing home loan. Oftentimes, the savings earned from a new interest rate outweigh the prepayment costs associated with refinancing. In fact, many lenders say 1% savings is enough of an incentive to refinance.
When done strategically, mortgage refinancing can be a great financial tool to reduce your mortgage payment, shorten the term of your loan, help build equity quickly or combat high-interest debt.
Think you can’t get a mortgage with poor credit? Think again.
Many Canadians have experienced financial setbacks which may have affected their credit. Perhaps you were laid off or suffered an illness that forced you out of work. Maybe you went through a messy divorce or maybe you experienced a financial small business in your small business which forced you to default on loans and credit card payments.
If you have bruised credit don’t fret! There’s still hope yet. We take the time to understand your entire story and look beyond your credit rating to understand the “big picture.” We work with lenders who understand the challenges borrowers have with low or no credit and offer solutions to help them succeed. We help pave the way to homeownership with guidance that is unbiased and fair. And, we only disclose your financial information if you’re likely to be approved by that lender.
If you have poor or no credit but work with the right person and take the right steps, you can still fulfil the dream of home.
Ditch the high-interest debt and take control of your finances
High-interest debt such as credit cards and personal loans can be a headache to manage and a challenge to overcome. They are designed by the banks and credit card companies to keep you in debt longer. The interest payments can be difficult to pay every month, let alone the principal, especially if you have multiple payments to juggle.
If you have personal debt looming over your head every month the stress, anxiety and worry can be too much to bear. You may feel like you’re so far down the rabbit hole that you’ll never achieve the financial freedom that you desire. Luckily, there is a solution.
Why waste money paying the bank’s high-interest rates when you can add the debt to your mortgage at a much lower rate? If you own your home, tacking on high-interest debt to your mortgage principal can be a good way to shave down any outstanding balance while saving money and increasing cash-flow.
However, debt consolidation mortgages are not for everyone. A good Mortgage Broker will know the difference between “good debt” and “bad debt.” A well-planned mortgage can help you turn those bad debts into good debts, get them out of the way and help you achieve financial freedom sooner.
If you’re feeling held back by high-interest debt, want to take control of your finances and finally get ahead again, then let’s chat. We’ll help you decide if it’s a good option for you and develop a strategy to beat the big banks for good!
If you have multiple loans, the interest adds up quickly. We’ll work with you to consolidate all your loans into one single payment with one lower interest rate, allowing you to become debt-free sooner.
When you have 10 or more debt payments every month, you may feel stressed and overwhelmed. Not only does multiple interest payments add up, but it prevents you from making payments towards the principal loan amount, forcing you into more debt.
Stop trying to juggle multiple payments with different lenders. Instead, focus only on one single payment every month. With a more manageable and successful debt-repayment plan, you can breathe easy knowing that you’re consciously working towards achieving your financial goals.
Use the equity in your home to help conquer your goals.
Buying a home is likely one of the largest purchases and most lucrative investments you’ll ever make. But, it can also be the most powerful financial borrowing tool that you have.
While both a home loan and a home equity line gives you access to the equity in your home, a home equity loan gives you a one-time lump sum of money. Whereas a home equity line of credit (HELOC) provides convenient, ongoing access to funds when and as you need it.
The more equity available in your home the more funds you have available to borrow. The home equity line of credit (HELOC) is a revolving line of credit that’s secured against your home loan. And, with it, you have the freedom and flexibility to use the funds as you need and will benefit from repaying the line of credit with interest-only payments on the funds you actually use.
A HELOC can be used to cover current or future expenses or help you achieve financial goals. Canadians will often use a home equity line to consolidate high-interest debt, finance large expenses such as a home renovation project, pay down their mortgage principal or, save it as an emergency fund for a rainy day.
With access to cash at a lower price point than a traditional home loan and the flexibility to use the funds as you wish, the home equity line of credit can be a tool that gives you incredible buying power. Talk to us today to see if a home equity line is right for you.
Access the equity in your home without being forced to sell
When people think of a second mortgage, they usually think of high-interest rates, large fees and a big loan shark preying on their property. But, in reality, a second mortgage can be a great way for homeowners to fulfil other endeavours without having to sell their home.
A second mortgage is a type of loan that allows you to borrow against your existing home loan. It is an additional loan taken out on a property that is already mortgaged. And, yes, they do come with a slightly higher interest rate but only because it’s considered a riskier investment than a first mortgage.
However, these rates are still significantly lower than high-interest credit cards, car lease payments or unsecured lines of credit. Your home is possibly your biggest asset, and over time that asset becomes more valuable. The value gained is equity that you can utilize to fulfil other financial goals or projects.
A second mortgage can help you consolidate your debt and improve your credit score, allowing you to qualify with a prime lender sooner than you would otherwise. Beyond debt consolidation, a second mortgage can be used to finance other life events such as higher education, vacations or home improvements.
At Everything Mortgages, we have access to a network of second mortgage lenders, both institutional and private. Our mortgage specialists can match you with a lender in as little as 48 hours regardless of your credit, income and employment history.
Lenders offer more lenient qualification requirements.
Lending is short-term ranging from 6 months to 1 year.
Closing can be as quick as 48 hours.
Lending rates typically start at 5.99%, which are lower than other high-interest credit options.
You may pay a lender fee of 1.5% to 2%.
Build wealth and prepare for the future
If you invested in Ontario residential real estate in the past 20 years, chances are your property is worth substantially more than when you originally purchased it. You may have already owned your home for the past 5-10 years and seen your equity skyrocket. Perhaps you have even thought about how you can own a rental property to generate a steady passive income stream, or, wondered how you can better prepare yourself for retirement.
Residential real estate in Ontario has outperformed many other investments. This, along with an increasing demand for rentals in urban areas, makes buying an investment property a financially savvy move.
As a homeowner, you’ve already built up equity in your home. An investment property mortgage leverages that equity, allowing you to purchase a rental property without putting down the cash. Using your existing home equity is a strategy that can be used to create a passive monthly income stream that covers the rental property mortgage and then some. This means that not only will your tenants completely cover your rental property, but with the right investment property mortgage, you’ll also be growing your wealth and increasing its value over time.
When you’re ready to take the next step towards your investment property purchase, we’re here to help. Our team of mortgage advisors specialize in investment property financing throughout Ontario. The best part is you can sit back and relax and while we handle all the “busy work.”
Get the funds you need to transform your house into a home.
You’re likely here because you’ve decided that it’s much more beneficial to make your house suit your needs rather than selling and buying new. Why deal with the stress, costly fees and adjustments of moving to a new neighborhood?
Maybe some new landscaping, an extra wing for your growing family, an expanded kitchen, or a swimming pool in the backyard is just the thing to make your home better suit your needs. Or, perhaps you’re ready to move-up and want to upgrade your home’s features to make it more appealing to potential homebuyers.
In any case, a record number of Canadians have tapped into their home equity for improvement projects. There’s never been a better time to access the extra funds that can help bring your home to that next level of comfort. Consider accessing the cash you need to complete the home renovations and improvements you’ve been dreaming of.
Our simple, stress-free guide to mortgage renewals.
When the term on your current mortgage expires, it’s time to renew your mortgage. A mortgage renewal is an opportunity to negotiate a better interest rate, better terms or consolidate debt.
The bank or financial institution you currently have your mortgage with will offer you an automatic renewal. Typically, they will send you written notice a few weeks before your renewal date. The easiest solution may be to just sign on the dotted line. By doing so, you forfeit the opportunity to explore additional options, potentially costing you thousands on your future loan.
Over half of Canadian mortgage holders will re-sign with their existing lender under the same terms. Borrowers rarely ask questions about their mortgage as they don’t want the hassle of renegotiating with the lender. Lenders know this and therefore won’t offer the lowest rate or best terms available come renewal.
That’s where we come in. When it’s time, we’ll take care of your mortgage renewal so you don’t have to. We will assess your existing mortgage, compare it to the current market conditions and negotiate with lenders on your behalf. We specialize in mortgage renewals for homeowners in all situations including standard renewals, homeowners seeking advanced pre-approvals and early renewals, regardless of debt, income or credit.
A mortgage is probably the largest expense you will ever have and making this mistake could cost you thousands! If you want to get a renewal reminder simply let us know here and three months before your renewal date we’ll send you an email with more information on how to get started.