Whether you're buying your first home, renewing, or refinancing — I work
with clients across Brampton, Mississauga, and Orangeville
There are as
many mortgage options as there are people to use them.
With dozens of lenders for every situation, these aren’t your grandpa’s mortgages.
First Time Buyers
You have about a million things to stress about when shopping for your first home - don’t let a mortgage be one of them. Before you start hitting the open houses, reach out so that we can get your pre-approval completed and send you out knowing exactly what you can afford and that your financing will be in hand.
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Get pre-approved before starting to shop. This will prevent heartbreak, by ensuring that you only look at homes that you know you can afford. It also means that when you find the one you love, you can make an offering knowing with relative certainty that you will be able to secure the mortgage you need.
Have more cash on hand than just your down payment. You’ll need some cash to cover closing costs including appraisal fees, legal fees, taxes and more - a good rule of thumb is to have about 3% of the purchase price.
Utilize all of the incentives available to you - the federal First Time Buyers Incentive, RRSP plans and the new First Home Savings Account, to name a few.
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The RRSP is a traditional method for saving a down payment. As a first time buyer, you can borrow up to $35k per person from your savings, tax-free, as long as you pay it back within 15 years. Plus, any contributions you make qualify as a tax deduction.
TFSA savings, unlike RRSPs, are untaxable. Contributions, however, are not a tax deduction.
The First Home Savings account allows you to contribute up to $40,000 ($8000 per year). Contributions are tax deductible and withdrawals are tax free - the best of both worlds!
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Ready to start your pre-approval? Here’s the basics of what you’ll need (but there could be more).
Personal identification
Statements of accounts (most recent and up to 90 days)
Proof of employment (Letter of Employment, T4, bank statement showing deposit, pay stub)
Proof of self employment (NOA and/or bank statements)
Statements of debts and assets
And more, depending on your financial situation!
Investment Properties
It’s a well known adage that 90% of millionaires got there through real estate. Whether you are purchasing a single property to grow some wealth or adding another unit to your portfolio, your financing is a key part of the equation.
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Want to start growing your wealth in real estate but not quite ready to commit to the landlord life? Consider:
Investing in a real estate investment trust: REITS are essentially a company that owns, operates and manages a number of different properties. Invest your money here, and generate passive income when the company grows its stock.
Renting a room: Already a homeowner and wanting to invest for income? Start with renting a room or two, or even the whole basement of your home. Rent space long term to test your taste for the landlord life or consider a short term AirBnB style rental for some faster cash.
Rent-to-own: In this scenario, the landlord of the property agrees to eventually sell you the home you are renting from them, and a portion of your monthly rent goes toward the down payment. In a market where renters are being reno-victed more often, you may find your landlord is more open to such an arrangement than you think.
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Simply put, house hacking is just renting out portions of your primary residence to generate income. In the most straightforward scenarios this can be living in a basement suite and renting the upper, or living in a carriage house and renting the main home. The goal of most "house hackers" is to live for free, or even generate positive income after all living expenses thanks to rental income.
Of course it does mean taking on the responsibility of becoming a landlord, which can have its downsides. But in all, we are seeing a greater number of buyers choose this route as a way to purchase a larger home sooner in today's markets.
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The BRRRR strategy has one of those acronyms that can look and sound a little daunting, especially if you are an aspiring real estate investor. But it’s actually so straightforward that anyone can do it, and it is one of the best ways to grow your wealth in real estate. So, what is it exactly?
It's a simple, repeatable formula that anyone with a bit of cash and some guidance can utilize to make real estate work for them and grow their wealth quickly in the market. It goes as follows:
Buy a property (ideally one that is undervalued and has room for improvement).
Renovate the property to add value.
Rent at a rate that matches market averages and ensures cash flow.
Refinance mortgage on property to access equity and recuperate costs.
Repeat by taking that cash injection from the refinance, pay off renovation costs and invest in your next property.
Cottage/Second Home
Time to send a young one off to school, or time to send yourself to cottage country for the summer? Leveraging your first home to invest in a second property that you or a family member will use is not just a great way to create more space, but also to grow your wealth. Time to start shopping!
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Got a big kid heading off to school soon? Sure, you could shell out thousands of dollars to pay for a dorm room and gross cafeteria food. OR you could leverage the equity in your home and invest in a property for your kid to call home. This way, your payments are going toward building equity, rather than funding a punch card used for mostly Slurpees and burritos and a single bed!
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Nope! If you are purchasing a property to generate income, then a 20% down payment is required. But if only you and your family will be using it as a getaway, or will be calling it home rent-free, then you can put 5% down (up to $500,000 and then 10% past that to $999,999).
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Getting a mortgage for your dream cottage could be easier than you think - and you may only need 5% down! But it’s important to know which type of cottage you’re getting.
Type AThese are typically easier to get a mortgage on through more lenders because they must meet strict guidelines including:
Year-Round Access
Must be fully winterized
Must have a permanent heat source like baseboard heaters or forced air
Must have a potable water source
Must have a 3-piece bathroom and a kitchen
Must be zoned residential, rural, or seasonal (no rental pools or leased land).
Must have a permanent foundation installed below the frost line
Type B
More rural Type B properties are cozy, fun and often less expensive but there are fewer options for financing. If the properties you’ve got your eye on don’t match Type A requirements, they still must adhere to:
Wood stove or fireplace heating
Floating foundation
Seasonal Access
Running Water (even if not potable)
Seasonal access
Refinances
Refinancing is the unsung hero of the mortgage world. Access the valuable equity in your home to leverage and invest, and potentially take advantage of rate decreases and save money each month!
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Did you know that the average Canadian carries roughly $22,000 in consumer debt and most of us don’t have any plan in place to pay it down?
If you are a homeowner, then you can take advantage of the equity you have worked so hard to earn to roll your loans and credit cards into your mortgage. Yes, it’s still debt. But it will shrink the amount you owe each month, greatly decrease the interest you’d otherwise pay over the lifetime of those cards and get you on a path to being debt-free faster!
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The bank doesn’t want to lend you an umbrella when it’s already raining - they’d far rather share the wealth when it is bone dry.
If you’ve got equity sitting in your home that you know you would tap into if you came across a financial hiccup, wanted to invest in a new business or to build a safety net if you have to - consider doing it now.
If you wait to access your equity until you need it, then you run the risk of the bank saying “no” based on your financial situation. Grabbing the umbrella now and hanging it up for later could save you a big headache in the long run.
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Most of us consider a Home Equity Line of Credit to be either an asset we use in case of emergencies, or a tool we use to invest in a renovation. But a HELOC has so many potential uses and can be great if used wisely. Some common uses include:
home renovations
education or medical needs
consolidation of high interest debt
re-investing in profitable investments
business expenses
In some cases, you may also be able to leverage your HELOC to invest in a new property. Regulations around HELOC down payments are tightening though, so if this is something that interests you it’s best to start the conversation soon!
Renewals
Did you know that not only do you not have to stay with your current lender at the end of your term but that, in fact, we recommend you shop around your renewal every time? There is no better time than the end of your term to refresh your mortgage and save some money every month.
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If your mortgage is coming up for renewal, you can expect to receive an offer letter from your current lender as much as 6 months (or as little as 3 weeks) in advance or your maturity date. But remember - the first offer you receive is almost never the best offer.
Rather than signing the renewal offer blindly, it’s wise to connect with a broker and shop your rate around.
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With most mortgage terms, you are free to leave your lender for a new one when your term matures. There are some exceptions to this rule, however, including mortgages that include a bonafide sales clause. This is why it’s important to check all of your terms before signing as often low rates come with sticker terms.
Often, jumping ship to a new lender at renewal will mean finding a better rate, better terms and an overall more affordable next term than renewing where you’re at!
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We know that rate isn’t the most important factor, so what is? While they are all important in their own way, the prepayment penalties that come with your mortgage are what could truly make or break you.
Whether you are signing your first mortgage term or renewing for the 5th time, be sure to look at what it will cost you to break that term early. Because as much as nobody ever intends to leave their mortgage before their term us up - life happens.
Debt Consolidation
Canadians currently hold record amounts of consumer debt - so, you’re not alone. But if you are a homeowner, you could leverage up to 80% of the value of your home to pay out high interest facilities, group everything into one monthly payment, and become debt-free quicker.
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If you’ve got consumer debt on credit cards or lines of credit then you’re likely making multiple monthly payments to multiple creditors, paying far more interest than you need to be and exhausting your cashflow every month.
By rolling your high interest debt facilities into your mortgage, you could free up hundreds of dollars each month and save on the interest you would be paying if you kept them separate.
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Restructuring your mortgage can mean a number of things but in the simplest terms it means to refinance, add a line of credit and/or pull out equity as cash, and/or change the length of your amortization.
In one restructure you may be able to roll your debt into one payment, drop that payment down and put some cash in the bank for a rainy day.
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For such a rate sensitive world, not many of us are tuned in to exactly how much interest we are paying to all of our plentiful loans and creditors. But I bet if you checked, you’re paying more than you think.
To determine your effective interest rate you have to factor in not only your mortgage rate, but also the rates you are responsible for on all other debts.
If that rate is higher than what your new mortgage rate would be, should you choose to refinance and consolidate, then it’s time to look into your options!
“Amazing knowledgeable and trustworthy from the start. For our first, second and third mortgages we went with Chris. He offered quick reliable consults and we are forever grateful for his guidance and his professionalism. Thanks Chris!!!
— Kara S.
