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50+ with little or no Mortgage? You Need a Line of Credit!

Blog Image, Line of Credit, May 2019

Contrary to media reports about our ‘record personal debt levels’, it’s extremely prudent to ensure you have access to emergency money.

The line of credit popularity that took place in the ’90s wasn’t a bad thing. It allowed us to borrow at low rates to invest or spend as needed. Many successful investors have been doing this for decades. Borrowing to invest makes smart financial success. Don’t let anyone tell you differently.

We’re seeing more reasons for Canadians to get a secured line of credit now: Age; Income; and Qualification.

Continue reading “50+ with little or no Mortgage? You Need a Line of Credit!”

Reverse Mortgages growing in popularity… Product of the year 2018?

Reverse mortgage

Mortgage stress test is the buzz phrase in mortgage lending for 2018. Every borrower, regardless of how much down payment you’re making, must pass a stress test to qualify for a mortgage. The math is simple, yet intimidating. Lenders must now use your mortgage contract rate PLUS 2.00% to qualify you.

Yes, that’s correct. You need to qualify at a rate that’s 2.00% higher than your actual rate. And it doesn’t matter if you have 35%, 40%, 50%, 60% or even 70% down payment. That will not have any impact on your approval. It’s all about how much income you can prove you earn and the strength of your credit worthiness.

For many, this new rule will prevent them from qualifying for a mortgage. And for seniors or people approaching retirement who still require a small mortgage to get through the next 10 or 20 years, these new mortgage rules are a killer. The stress test is surely causing stress among many Canadians!

I’M RETIRING AND WANT TO STAY IN MY HOME…

A reverse mortgage is a terrific option for homeowners who are at least 55 years old. It empowers them to be able to stay in their home and access tax-free equity without having to make regular payments.

Continue reading “Reverse Mortgages growing in popularity… Product of the year 2018?”

New 2nd mortgage options at 3.50% with no legal fee or appraisal fee!

canadian-money-gift

I’m reposting this article due to the tremendous response and numerous inquiries..  

We recently came across a lender that is offering an unheard of offer.   Secured lines of credit in 2nd position at Prime plus 0.50%.  That’s 3.50% today!   We haven’t seen this sort of offer in quite a while for 2nd mortgages.  Here’s the qualifying details:

  • you have to have good credit
  • you need provable income to qualify along
  • there must be adequate equity in your home.   The product allows you to borrow up to 80% of the appraised value of your home.
  • the appraisal fee and legal fees are covered by the lender (that’s a $1200 savings)!!
  • a small broker fee may apply …. see me for details.

This rate is truly incredible for such a product.  But having the legal fees and appraisal covered is truly amazing! I rarely get this excited about a product but this one has me pumped!   For those that don’t know, most 2nd mortgage options begin at 10% to 12% plus fees.

For those that can’t provide traditional income confirmation, such as self-employed or commissioned employees, there are other options for you.  The rates are higher but there are options.  And for those with slow or poor credit, you also have some options available for mortgage funds.. provided there is adequate equity in your home.   Remember, each situation is reviewed on a case by case basis.  Pricing and cost will vary.

If you are looking for some extra funds or access to a line of credit, this product could be a great option.

Happy Holidays!

Your best interest is my only interest.   I reply to all questions and I welcome your comments.  Like this article?  Share with a friend.

Steve Garganis 416 224 0114 steve@mortgagenow.ca

NO SET UP COSTS!! Secured line of credit at Prime plus 0.50%!

canadian-money-giftA few months ago, I announced a special promotion.  A secured line of credit, at Prime plus 0.50% (2.85% plus 0.50% = 3.35%) with NO set up costs.  The response has been so overwhelming that I’m publishing this promotion once again.

FREE legal fees and FREE appraisal fees.  The Bank is covering both these costs.   You pay nothing.  $0.00.  It’s just that simple.  AND, this Bank will go in 2nd position behind your existing 1st mortgage if necessary.

You must qualify, of course.  Good credit, stable income, qualify real estate, etc.   If you are interested in this product, contact me for details.   This is a limited time offer.  We do not have an expiry date but it can be terminated at any time.

Brokers and Agents, please do not call.  I am not able to share this offer with you.  Sorry.

Your best interest is my only interest.   I reply to all questions and I welcome your comments.  Like this article?  Share with a friend.

Steve Garganis 416 224 0114 steve@mortgagenow.ca

HELOC’s capped at 65% but some exceptions still apply..

Earlier this month marked the beginning of the end of 80% loan to value HELOCs.   Several Banks and of the Financial Institutions began to cut back the maximum LTV from 80% to 65% as per OSFI’s regulations.   But there are a few loopholes in the new rules….

  • The good news is that existing HELOC clients don’t have to worry.. these changes don’t apply to them.  OSFI is allowing them to keep their HELOCs at 80%….
  • Only OSFI regulated Financial Institutions are affected… Provincially regulated FI’s aren’t affected… Credit Unions don’t fall under OSFI’s rule…  there are still some Credit Unions offering HELOCs to 75% and even 80% loan to value.
  • Some of the Banks are still offering a combination of a HELOC and a mortgage of up to 80% ltv as long at you have at least 15% of your balance in an amortized payment schedule, and not interest only payments.

There is more good news… The BIG SIX BANKS can’t offer you an 80% LTV HELOC but the credit unions can… Maybe Canadians will start to seek other Lenders……They may finally discover that there much better options out there.   Watch for the Credit Unions to take a chunk out of the BIG SIX BANK mortgage pie.

Not sure where you fit in?   Call me for details.

Steve Garganis

416 224 0114

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