Pay off smaller loans with a larger loan at a lower interest rate. Typically, a credit card interest rate can be at 19.99% on purchases, whereas a 5-year Fixed Term Mortgage may have an interest rate as low as 3%. Mortgage interest rate varies greatly depending on your income in relation to your debt loan, your credit score and the amount of equity in your home.
Your credit score determines the interest rate lenders are willing to give you. An excellent
credit score would get the best possible interest rate. On the other hand, a borrower with a bad credit score would be charged a higher interest rate.A debt consolidation loan is a single loan that allows you to repay your debts to your other creditors at once with the goal of consolidating with a lower interest loan.
- Lower the interest rate gets you out of debt the sooner. You will pay less money towards interest, and more towards your actual loan, essentially getting you out of debt faster.
- You only have to make one debt payment each month, which is more manageable and less time consuming than managing multiple debt payments with different interest rates each month.
- If you use your home, you can secure a lower interest rate.
- it is important not to continue spending as you did before, otherwise, you can risk going further into debt.
- A larger loan with a financial institution will require prompt payments. If you were struggling to pay your debts before, it could very well still pose a challenge to repay your new consolidated loan.
- The household debt to income ratio has hit record levels in Canada due to the increasing price of real estate. This has resulted in many Canadians borrowing more for their day-to-day expenditures. Debt consolidation is, therefore, a growing consideration in Canada.
Increase your cash flow and be mortgage free quicker. When shopping for a new mortgage, most borrowers look at just the interest rate. We look at your “big picture” cheap is not always better. Some lenders provide additional products that might suit your long term financial goals. At the end of your existing term, we look at each client’s unique situation and recommend the best solution that fits. If you do not need an equity take out, just take the same amount to a new institution, this is called a “switch” or a “transfer.” If you need to increase the mortgage amount, this becomes a refinance.
First Time Home Buyers
Whether you are moving out for the first or you are new to Canada. It is always exciting and challenging at the same time when you decide to purchase your first home. First thing. It is a process, and we will guide you through along the way.
Set Your Own Mortgage Limit
Knowing what can afford and when you can afford to start paying mortgages on a monthly basis is the most important step in the process of buying a home especially for the first time. Before you talk to your friends, family members, mortgage brokers or Realtors, you should first review your budget. Owning a home is a lifestyle change and it involves sacrificing for the greater good. Money-In must be more than Money-Out.
Get Pre-Approved and then start house Hunting, not the other way round.
Get a written Pre-Approval from your mortgage broker. The approved mortgage amount & the down payment requirement often is a combination of income, credit and the quality of the property.
Mortgage approval is based on:
Most lenders follow the basic CMHC (Canada Mortgage Housing and Corporation) guidelines. Generally speaking the mortgage payment, property taxes and 50% of the condo fees plus a factor for heating costs should not be more than 32% of your gross income. And no more than 42% if you add the other monthly obligations, as, credit card payments, car loans, lines of credit, etc.
Credit rating is another major approval factor. In fact, there may be room for higher debt ratio as listed above is your credit rating is very good. Great credit will get you the best possible interest rate, while poor credit may have a premium added to the interest rate.
At Queengate Mortgages, we provide our clients with direct access to Private Mortgages Ontario wide, Residential or Commercial, 1st or 2nd.
Our Private Mortgage Solution Program
At Queengate Mortgages, we provide our clients with direct access to Private Mortgages Ontario wide, Residential Or Commercial, 1st or 2nd. A private mortgage is the quickest and easiest method for getting financing usually within 2-3 business days. Doesn’t matter if you are refinancing your current home, or purchasing a property, a private mortgage is the most effortless mortgage to qualify for those tight situations or if your income or credit doesn’t allow you to be eligible with traditional mortgage financing.
Increase Your Cash Flow With A Private Mortgage For Any Of The Following Needs
Renovate Your Home
Invest In Your Business
Pay Off A Consumer Proposal
Pay Mortgage Arrears
Purchase a car
Pay for wedding expenses
Pay for education
Cover medical expenses
Pay CRA tax arrears
Pay property tax arrears
Take a family vacation
Purchase Investments including Real Estate
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