Future Equity Financial is Almost Here!!

We are almost set to Launch Future Equity Financial and we are very excited – the pre-launch website is up and we’ll be marketing and advertising soon enough – Launch date is set (official launch) for January 1 2011!  Get Ready!

Is Consolidation a Good Option?

Many people are facing debt these days; the stress of financial hardship can be difficult for many.  However, as rates are still low, consolidation may still be a good option to consider.  Here is a very real example of a recent client.  They came to me, concerned that they were not able to continue making the payments on all their debt, which included, their current mortgage, which was at a rate of 4.5% Fixed, as well as consumer debt that totalled approximately $40,000.  Their monthly payments were exceeding well over $2300/mth.  They husband and wife applicants both worked and their credit ratings were still good, although the strain of their financial obligations were beginning to show, as the husband was showing some R2′s on his credit bureau.

Luckily they were able to refinance their debt into a new mortgage – there were some costs involved in refinancing, including:  a penalty to break their mortgage (estimated at $8,000) and a CMHC Premium as they now were going to 85% LTV on their home ($10,000).  Their savings however were immense.

They went from paying $2300 montly on debt to $1600 on their new mortgage.

That is a savings of: $700 per month, or $8400 per year or $42,000 over the course of their new mortgage.  In addition, they were paying of more of the principal with their $1600/mth payment than they were with $2300 per month.  Granted they incurred some costs but in this case, it was very much worth it for the couple.

To learn more about consolidation, contact us today!

Why Working with A Mortgage Broker Makes Good Sen$e

Financing is the crux of any real estate transaction, and though many people still feel that banks are best suited to help them finance their mortgages, the fact is, mortgage agents/brokers can offer alot more than the bank.  Take for example the fact that banks can only sell their banking products – what does that mean for you?  Less Choice… and choice is always better than no choice.

Mortgage agents/brokers have access to a number of lenders all competing for your business, which means much more favorable rates, more flexibility and of course, more choice!

Additionally, banks typically require their clients or applicants to have excellent past credit history – the fact is, that most people don’t qualify for bank mortgages – so what to do?  Again, agents/broker’s have access to lenders that want to work with bruised/bad credit and can help you get into a home and stop renting alot sooner than you think!!

 

 

Quick Close 5 YR FIXED Rate 3.89%

This is just CRAZY!!! A five year fixed rate is ONLY 3.89% – If you’re concerned about Variable rates, and want to have a nice fixed income, now’s the time to consolidate or refinance into a 5 yr fixed rate at 3.89%!

Don’t delay.  Apply online at www.verybestmortgagerates.com

Woodstock Investment Opportunity

Now is a good time to invest – with Low Interest rates, you can benefit from reduction in principal as well as cashflow.  I have only 8 units left in a great investment project in Woodstock Ontario – Prices range from $104,900 to $117,900 – cash flow positive, contact Beatrice at 905-851-6002 for more information – More info to come about this project.

Bank of Canada Raises Prime Rate, Qualifying rate goes Down

As per my last post, the Bank Qualifying rate (the rate at which an individual needs to qualify for a mortgage) has been reduced from 5.99% to 5.79% – The Prime interest rate has gone up 25 basis points to 2.75%.  What does this mean for Variable Rate Mortgage Holders – DON’T PANIC!  Fluctuations in the market are expected and should of been disclosed to you by your agent.  The fact remains that the rate is still quite low, and with a discount (Prime Minus 0.35 or 0.50%), you are still paying off more principal than you would be on a fixed rate.  There is likely to be another rate high in September bringing the Prime rate to 3%, although this relies heavily on the globlal economic recovery as well as Canada’s recovery.   The rate should remain within the 3 to 3.5% for 2011, with the Prime Rate  inching higher to the 4 to 4.5% by the end of 2011 into 2012.  This of course is merely a prediction, however you can learn more by reviewing the following article:

http://www.financialpost.com/news/Week+Ahead+Rate+hike+cards/3288001/story.html#ixzz0u7teJzQu

Mortgages Rates to drop

The Canadian Press is reporting that RBC Says it will shave one-tenth of a point off its posted fixed term mortgages resulting in a range from 3.6 to 7 per cent.

“RBC’s announcement leaves the bank’s variable-rate mortgage where they were.  Canadian banks raise or lower their rates for fixed-term mortgages in response to trends on the bond markets.

In contrast variable-rate mortgages, which have become increasingly popular among homeowners, go up or down when the banks adjust their prime rates.   Prime rates last changed on June 1, rising by one-quarter of a point after the Bank of Canada increased its policy rate from an all-time low”

- The Canadian Press.

Mortgage Application

I’ve just posted a Full Mortgage Application - if you need information on any sort of financing, please print off the Mortgage Application, and either email to beatrice@verybestmortgagerates.com or fax back to 877-782-2118.

Full Mortgage Application

Full Mortgage Application

Refinance/Consolidation

If you currently have a lot of high interest debt, it may be beneficial for you to refinance or consolidate your current debt into a new first mortgage.  There pros and cons to this which I Will review here:

Pros:

• Interest rates are low – in all likelihood you may actually save money monthly, even by borrowing MORE Money, by consolidating or refinancing
• You will be able to create better cash flow from month to month alleviating the stress that can be felt when debt is too high
• You can better track your spending by putting all your debts into one new payment

Cons:

• You may be subject to a penalty by breaking your current first mortgage
• You may incur legal and appraisal fees

Pros and Cons aside, many people have benefited from a consolidation of their debt – the best option is to speak to a qualified professional who will work with you to review your budget, your income and expenses and then recommend a solution outlining the potential risks.

You can visit www.verybestmortgagerates.com to obtain more information – simply fill out the form, and an agent will call you back to discuss your situation.  Or visit www.dontwaitconsolidate.ca, fill out the form and someone will contact you directly!