Mortgage Rates for Barrie Homeowners
Mortgage rates in Barrie and
throughout Ontario vary according to a number of factors that include:
- The interest rate.
- The client.
- The property.
- The type of mortgage.
- The time period.
- The amount of the down payment.
- The lender.
The housing market in Ontario has
remained buoyant, and Statistics Canada revealed in 2014 that more and more
families – particularly young families – are struggling financially with a high
debt-to-disposable-income ratio. When you are considering a mortgage, make sure
that you understand the terms completely. Talk to an accredited mortgage
professional about the options available to you: will a fixed or a variable
mortgage be best for your situation? Some clients opt for a hybrid that
includes aspects of both types. Do the math so that you know what percentage of
your income will be going toward your mortgage. Be sure to factor in any
planned lifestyle changes: if you plan to have children, for example, factor in
either the cost of one spouse staying home and the resulting income drop, or
the cost of monthly daycare.
Rob Carrick, Personal Financial
Columnist for the Globe & Mail, devised
a useful worksheet for those considering a first or second mortgage. Called
"The Real Life Ratio”, this tool helps families calculate the percentage of
income required for any given mortgage. Before signing, be sure that you will be able to live up to the
terms of your mortgage. Penalties for breaking out of a bank mortgage are hefty
and should be avoided whenever possible.
Recent regulatory measures have
tightened already stringent guidelines for lending by traditional financial
institutions. If your application for a mortgage or loan has been rejected by
your bank, you may be feeling discouraged. However, private lenders often offer
rates that are comparable to banks and other conventional lenders. A private
lender has several advantages to a bank, including:
- Speed. Because the pool
of money a private lender has is smaller than the huge pools available to
banks, private lenders like to keep the money active. This means that the
approval and funding wait times are generally shorter than bank timelines. Some
lenders aim to provide 24-hour approvals!
- Credit history. Private
lenders are less interested in a client’s credit history than they are in the
property involved. Lenders look at the value of the property, as well as the
condition, the location and the saleability of it.
The first step toward obtaining a loan from a private
lender is to work with a private mortgage brokerage company that offers
financing solutions. These companies specialize in getting loans and mortgages
for clients who are self-employed, who have a damaged credit rating or who may
have a bankruptcy in their credit history. Look for a company that offers a
variety of financing solutions, including:
- First mortgages
- Second or third mortgages
- Private mortgages
- Debt consolidation
Your first consultation with an accredited mortgage professional is usually
free. Contact a reputable firm today and find out more about the loan, mortgage
and financing options available to you. Get the money you need, when you need