How to Choose a Neighbourhood?
When you’re looking for a new home, you need to consider more than just the house itself. If you’re moving into a new neighbourhood entirely, then you need to determine whether or not it’s the safest and most convenient fit for you. Here are seven things to consider when choosing a new neighbourhood.
Inflating House Prices
Rising house prices aren’t the best thing for potential buyers, but it’s wonderful for homeowners looking to sell. As the housing market increases, it’s best to find a house in a neighbourhood when it’s rising faster than the national average.
Increasing Household Incomes
One advantage of living in a community with a healthy household income is that homeowners can comfortably renovate their homes. While this might seem obvious, an updated home will not only increase your home’s value but the homes surrounding it as well.
Diversity
If the diversity of a specific neighbourhood is important to you, then you can talk to potential neighbours to get their opinion. Real estate agents can’t disclose the demographics of the area, so you’ll have to do your own investigating.
Schooling
Whether you have children or not, buying a home in a neighbourhood with a school will definitely increase the home’s resale value. The convenience and short distance to a good school will urge parents to flock to that location.
A Job Influx
The local job market has a direct impact on housing prices, so it’s best to buy a home in an area with a low to average unemployment rate. Neighbourhoods with growing job centres will drive up the surrounding area prices.
Adequate Walkability
If you want to live in a lively, metropolitan area, then it’s best to choose a neighbourhood that has shops and eateries within walking distance, as well as public transportation. While busier neighbourhoods are typically more expensive, it might be worth the price if you’re in close proximity to several amenities.
Is it Safe?
One of the most important things to consider when choosing a new neighbourhood to move into is whether or not it’s a safe one. It doesn’t matter if you have kids or live alone, safety should be one of your top priorities. If your realtor can’t disclose the crime rate in the area, talk to other residents or local police if it’s a place you’re seriously considering.
New Home Development
The site of new homes being built may not look appealing to most, but it’s usually a sign of a hot neighbourhood. This also means an increase in housing prices once the development is complete, allowing you to make money if you decide to sell at the right time.
At Interfinance Mortgage Corporation, situated in North York, Toronto, Ontario, our dependable mortgage brokers strive to make lending a seamless and stress-free experience. We specialize in residential and commercial mortgages, refinancing, debt consolidation, home equity loans, private mortgage rates, and more. As leading performers in the finance industry, we provide swift approvals directly through our website. Pay us a visit today to begin your journey.
First time buyer tips
BlogFirst Time Buyer Tips. Buying a home for the first time is both an exciting and daunting prospect. On one hand, you are investing in your future and purchasing something that is wholly yours, while on the other hand, it will likely be one of the most significant decisions you ever make. With a little bit of preparation, you can be on your way to home ownership in no time with little to worry about. Here are some tips to consider:
Know your credit score
Before doing anything, you should know your credit score as a first time home buyer. It will dictate your interest rate and what mortgage products are available to you.
Get pre-approved
That way you will know how much you can actually afford. You will have a better idea of what your budget should be and have the opportunity to address any credit issues.
It is okay not to know everything
Mortgage professionals exist for a reason. Do not get too overwhelmed over the things you do not know. Find a trusted real estate agent and mortgage broker that will help walk you through the process.
Make a list
Viewing many listings at once can make you forget about the features you want the most. If you are house hunting with a partner, making a list can be especially helpful. You can each make your own and then compare them to pick out both of your top must-haves.
Buy a home you think you will need five years from now
If you only focus on your space requirements right now, you will just have to go through the house finding process again when your family expands. Save yourself some hassle and plan ahead by buying a home that will suit your future needs as well.
Your first home will likely not be your last
Even if you do plenty of planning, it is unlikely that your first home will be the last you live in. It is impossible to predict where our lives will take us in 10 or 20 years, which is why you should find a home that will work for you for the next few years. Choose a property that meets your needs now and allows you the ability to buy up as your needs progress.
Know your budget
In this market, you have to be decisive and be ready to move quickly to secure a home. Do not let the perfect house go because you did not consider all of the other fees that come with buying a home. Remember to factor in insurance, taxes, utilities, and additional fees so that you can confidently make an offer.
Find a lender you can trust
When it comes to locking in a mortgage loan, there are more options available than the ones your bank offers you. Contact Interfinance Mortgage Corporation to secure the best possible rate for your home.
For more First time buyer tips please contact us
Top reasons why you should use a mortgage broker
BlogIf you are a first time home buyer, it can be confusing whether to opt for a bank offered mortgage or to use a mortgage broker. There are many reasons why you may be tilting towards using a bank rather than a broker. Many new buyers associate a significant risk with a private mortgage and often choose to opt for banks even without checking rates with their local mortgage broker. Although it is understandable, in hindsight, you will realize that there are several reasons why you should use a mortgage broker to secure a favourable mortgage deal.
Bank and loyalty
When it comes to mortgages, it doesn’t matter how long you have been associated with a particular bank or how you have always had a credible credit history or any other factor. Banks have standard mortgage packages. You may not have any visible benefit for your mortgage as a result of being a loyal customer with any bank. At best, all they can do is waive your fees if you know a bank manager personally. But if you are thinking about lower interest rates, lower fees etc., no such benefit is given to borrowers by banks.
Business model
It is extremely rare for a bank employee to remain with a particular bank in the same position for a long duration. With regular training and continuous transfer, it is not really useful even if you may have established a friendly relationship with your bank mortgage guy because there is no assurance that they will be in the same place and post for a long time. On the contrary, having a mortgage broker on your side can help since it is their business and they will always be available for you every time you need a mortgage. Loyal customers often enjoy privileges in the form of reduced interest rates with mortgage brokers.
Brokers represent you
Many people do not realize that you can negotiate with your local bank for better rates. Most people simply walk in and agree to whatever rate the bank offers. Remember that a bank will not offer you a low rate nor will they ask you to negotiate for one because it doesn’t serve their interest. On the contrary, a mortgage broker will negotiate a lower rate for you. They can also ask for specific terms and conditions for you and additionally help you to stay clear of high-penalty mortgages. In fact, your mortgage broker can help you get a better rate at your own bank too.
Expertise
This one is a no brainer. A bank mortgage person only deals with bank customers and prescribe a standard rate for mortgages that have been defined by the bank. However, they lack the experience and expertise needed to help you find a better rate, negotiate your case and bring the best deal for you. Your mortgage broker directs their years of experience and expertise to prepare your case first. They evaluate your employment, assets, risk tolerance, credit history and other parameters to deduce what is the best possible rate that you can have based on your circumstances. Your mortgage broker then proceeds to get you a mortgage at that rate making the deal as favourable as possible for you. Their incentive? A life-long loyal client for mortgages and earnings behind every closed mortgage deal.
If you are thinking about getting a mortgage, speak to Interfinance Mortgage Corporation and understand the merits of involving a licensed, experienced and qualified mortgage broker for your mortgage needs.
What not to do when refinancing a mortgage in Canada
BlogWhen it comes to mortgages, several things can go wrong, especially when you are a first-time home buyer. Refinancing your mortgage through a qualified and licensed mortgage broker makes a lot of sense when you are looking to decrease your interest rate or reduce your monthly mortgage payments. However, even when you are refinancing your mortgage, there are a few things you need to keep in mind. These include:
Refinancing at the wrong time
You should only consider refinancing the mortgage on your home if you notice a visible gain from doing so. For instance, if the interest rate of your refinanced mortgage happens to exceed your current mortgage it will hardly make any sense to switch to a new mortgage and you will end up spending more instead of really saving anything. It is advisable to only refinance if you have more than 20% equity of property or have bruised credit. Before you approach any lender, you must increase your credit score.
Refinancing shopping
Just like you will not settle for the first mortgage offer that your bank or broker gave you, you must also not settle for the first refinancing offer that you get. Try to look around and find the best offer that works for you and your needs. Use a licensed and qualified mortgage broker to get the best rates on refinancing.
Background check
Before you decide to choose a mortgage company to refinance, you must conduct a background check to be certain the company you are dealing with is authentic and they are licensed and authorized to process mortgages. Many lenders will try to entice you by giving exceptionally low mortgage rates. If something is too good to be true, it probably is. The best way to make sure that your mortgage broker is licensed and certified is to do a thorough background check. Ask for references, go through their websites and ask to see their license, look them up on the FSRA’s website.
No cost financing
You may come across many mortgage lenders who are ready to refinance your mortgage offering “no-cost” financing. Although this may lead you to believe that your mortgage is free, technically many lenders will add it in the mortgage amount. Although you may not have to pay right away, you may still end up paying. Your interest rate can also increase because of this.
Failing to lock your interest rate
Interest rates are pretty dynamic. You may be surprised how often they can keep changing. It is recommended that you must lock your interest rates as soon as possible so that if the market rates go higher, you will still be able to get a mortgage at the previous lower rate. This can potentially save you a lot of money and disappointment in the future.
Interfinance Mortgage Corporation is a brokerage who work as licensed and qualified lenders offering the best mortgage rates for many mortgage seekers across Ontario. If you are looking at refinancing your property or getting a mortgage, talk to our mortgage specialists and get the best deals for your requirements.
Things Canadians Don’t Know About Second Mortgages
BlogTalk about misleading and confusion and mortgages, especially second mortgages are one of the prime victims of misinformation. Although second mortgages are becoming increasingly common, many Canadians, even those who have second mortgages, seem to be quite confused when it comes to facts about second mortgages. Here are the top second mortgage facts revealed by mortgage expert from Ontario’s best brokerage, Interfinance Mortgage Corporation.
There are different kinds of second mortgages
Home Equity Line of Credit (HELOC) and Closed Second Mortgage are two types of a second mortgages available in the market. The revolving HELOC offers the borrower continuous access to equity as they continue to pay the principal amount. It is akin to how credit cards work. On the contrary, a Closed Second Mortgage means that borrower gets a lump sum cash from the equity and can gradually pay it down, just like an auto loan.
Two most common uses of a second mortgage
The second mortgage is most commonly used either to pay off high-interest consumer debt or to finance a home renovation or upgrade. As average credit card interest rates can be as high as 29%, you can save quite a lot of money with second mortgages.
Home can be a collateral
You can use your home as collateral for second mortgages. However, if you fail to repay, the bank has the option of Power of Sale just like in case of first mortgages. One advantage of using your home as collateral is that you can get a significantly low-interest rate.
Interest only payments
Many second mortgage borrowers can benefit greatly with the interest-only payment option which quite a few mortgage companies allow in second mortgages. With this option you can simply, for instance, remodel or repair your home, then sell it at a better price and pay off the remaining mortgages.
Avoiding PMI
In the realm of conventional mortgages, if you don’t provide the anticipated 20% down payment, you’ll typically need to acquire private mortgage insurance (PMI). However, securing a second mortgage to cover the down payment can help you bypass substantial PMI expenses in this scenario.
Fees
Second mortgages are an amazing option but remember that you still need to pay some fees to avail them. It is better to check with your provider to know what will be the fees before you choose one.
Comparison
When it comes to second mortgages, often individuals do not compare second mortgages the way they compare the first one. Even with the second mortgage, it is important to compare offers from different lenders. Your mortgage broker should be able to do that for you.
Bad credit
Second mortgages can also help with bad credit. Gaining access to your equity gives you an opportunity to pay off multiple debts and instead have a low-interest single target that you need to fulfill on a monthly basis.
You may have several questions and concerns pertaining to second mortgages. Talk to our qualified and experienced mortgage broker from Interfinance Mortgage Corporation to know your options pertaining to obtaining a second mortgage.
How to Choose a Neighbourhood
BlogHow to Choose a Neighbourhood?
When you’re looking for a new home, you need to consider more than just the house itself. If you’re moving into a new neighbourhood entirely, then you need to determine whether or not it’s the safest and most convenient fit for you. Here are seven things to consider when choosing a new neighbourhood.
Inflating House Prices
Rising house prices aren’t the best thing for potential buyers, but it’s wonderful for homeowners looking to sell. As the housing market increases, it’s best to find a house in a neighbourhood when it’s rising faster than the national average.
Increasing Household Incomes
One advantage of living in a community with a healthy household income is that homeowners can comfortably renovate their homes. While this might seem obvious, an updated home will not only increase your home’s value but the homes surrounding it as well.
Diversity
If the diversity of a specific neighbourhood is important to you, then you can talk to potential neighbours to get their opinion. Real estate agents can’t disclose the demographics of the area, so you’ll have to do your own investigating.
Schooling
Whether you have children or not, buying a home in a neighbourhood with a school will definitely increase the home’s resale value. The convenience and short distance to a good school will urge parents to flock to that location.
A Job Influx
The local job market has a direct impact on housing prices, so it’s best to buy a home in an area with a low to average unemployment rate. Neighbourhoods with growing job centres will drive up the surrounding area prices.
Adequate Walkability
If you want to live in a lively, metropolitan area, then it’s best to choose a neighbourhood that has shops and eateries within walking distance, as well as public transportation. While busier neighbourhoods are typically more expensive, it might be worth the price if you’re in close proximity to several amenities.
Is it Safe?
One of the most important things to consider when choosing a new neighbourhood to move into is whether or not it’s a safe one. It doesn’t matter if you have kids or live alone, safety should be one of your top priorities. If your realtor can’t disclose the crime rate in the area, talk to other residents or local police if it’s a place you’re seriously considering.
New Home Development
The site of new homes being built may not look appealing to most, but it’s usually a sign of a hot neighbourhood. This also means an increase in housing prices once the development is complete, allowing you to make money if you decide to sell at the right time.
At Interfinance Mortgage Corporation, situated in North York, Toronto, Ontario, our dependable mortgage brokers strive to make lending a seamless and stress-free experience. We specialize in residential and commercial mortgages, refinancing, debt consolidation, home equity loans, private mortgage rates, and more. As leading performers in the finance industry, we provide swift approvals directly through our website. Pay us a visit today to begin your journey.