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Mortgage Broker And Second Mortgage in Toronto

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1. Questions to Ask When Hiring a Mortgage Broker 2. Some Drawbacks of Not Securing a Loan through a Mortgage Broker 3. Mistakes People Make When Working with a Mortgage Broker 4. Things to Check When Hiring the Best Mortgage Broker 5. All You Have to Know about Second Mortgage in Toronto 6. Know What You are Going to Pay to Hire a Broker for Second Mortgage in Toronto 7. Things to Know When Going for a Second Mortgage in Toronto 8. Two Things to Understand Before Opting for a Second Mortgage in Toronto – PowerPoint PPT presentation

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Title: Mortgage Broker And Second Mortgage in Toronto


1
Mortgage Broker And Second Mortgage in Toronto
2
Synopsis
  1. Questions to Ask When Hiring a Mortgage Broker
  2. Some Drawbacks of Not Securing a Loan through a
    Mortgage Broker
  3. Mistakes People Make When Working with a Mortgage
    Broker
  4. Things to Check When Hiring the Best Mortgage
    Broker
  5. All You Have to Know about Second Mortgage in
    Toronto
  6. Know What You are Going to Pay to Hire a Broker
    for Second Mortgage in Toronto
  7. Things to Know When Going for a Second Mortgage
    in Toronto
  8. Two Things to Understand Before Opting for a
    Second Mortgage in Toronto

3
Questions to Ask When Hiring a Mortgage Broker
  • Ask about the current interest rate. No matter
    what benefits you get, never make a decision
    without getting clear information regarding the
    interest rate on your loan. Some mortgage brokers
    might advertise low-interest rates but surprise
    you later with hidden charges. Therefore, it is
    imperative to know exactly how high the internet
    rate is going to be in the coming months.
  • Ask them about different loan programs they might
    be offering. A good mortgage broker will
    specialize in home loans, but they may also be in
    a position to help you with other loan programs.
    Be sure to know about their specialty and the way
    they can help you in other ways.
  • Ask them to share complete and clear information
    regarding their origination fees. Many brokers do
    not touch it properly and make you cut a deal
    first. Do not make this mistake. Also, ask them
    clearly about any other costs or fees you should
    know about before signing the dotted line. The
    more you ask about those fees and costs, the
    lower the chances of you feeling surprised and
    betrayed later.

4
Questions to Ask When Hiring a Mortgage Broker
  • Ask a mortgage broker how long they are going
    take to process the loan. They may offer
    different programs but they may require more time
    to process certain loan applications. Ask them
    about any limitations they may have or you should
    know about.
  • Ask your mortgage broker regarding any specific
    documents they need to process your loan. It is
    better to get correct and complete information
    about it in advance to prevent any issue later.
  • Ask them clearly about the way they process their
    loans. Some lenders and mortgage brokers process
    their loans in-house, but others may hire a
    third-party company to take care of everything.
    You should know clearly how your mortgage broker
    is going to work.

5
Some Drawbacks of Not Securing a Loan through a
Mortgage Broker
  • Not having a mortgage broker can cost you a lot
    because they have their own resources and
    contacts that enable them to find the best deals
    in the marketplace. You may not be able to attain
    the same deals on your own because so many such
    deals are accessible only to experienced mortgage
    brokers. You have to understand that mortgage
    market is constantly changing and shifting and
    only an experienced broker can foresee and
    identify the best deals for you to secure a home
    loan at the most reasonable interest rates.
    Unless you have a personal relationship with a
    lender, you will never be able to negotiate the
    best rate. Even if the rate looks reasonably good
    it will be difficult to match the mortgage broker
    can help you get.
  • If you have some experience negotiating with
    lenders, you may, by all means, go ahead and look
    for a loan on your own. However, someone with
    little to no experience should never
    underestimate the importance of working with a
    mortgage broker. No matter how proactive you are,
    you will not be able to deal with the intricacies
    of the marketplace, and that is where a broker
    comes in handy. It may cost you some money
    though some may be willing to offer their service
    free of charge it is certainly worth the hard
    work.

6
Mistakes People Make When Working with a Mortgage
Broker
  • Not Selecting an Experienced Broker
  • One of the biggest mistakes people make when
    selecting a broker is that they do not pay
    attention to how experienced the broker is. It is
    true that personal recommendations are important,
    but you need to conduct some research to know
    more about the reputation of your selected
    broker. A broker with a good list of repeat
    business and happy clients is more likely to
    offer you quality service. You need to ensure
    that the broker is registered with the right
    organization and is an authorized credit
    representative.
  • Not Checking Fees and Charges
  • You will be making a big mistake if you will be
    selecting a broker without checking their fee
    structure. Brokers may charge you differently for
    their service some brokers may not charge
    anything because they get their money from the
    lenders. In case they are not going to charge
    you, it is still important to know what
    commission they are going to get from the
    lenders. If they are going to charge a flat
    dollar fee, be sure to ask them exactly what it
    is going to be.

7
Mistakes People Make When Working with a Mortgage
Broker
  • Not Considering Broader Financial Goals
  • A good broker will not only help you find the
    right mortgage at the most appropriate rates, but
    they will also help you select an option
    considering your financial situation and
    creditworthiness. They discuss everything with
    you to get a better idea of your current
    financial standing and financial goals. They can
    help you find the right loan only when they have
    the complete information regarding your financial
    standing. Once they have gathered complete data
    regarding your financial goals, they can easily
    explore through available offers and help you
    select something that works in your favor.
  • Not Scrutinizing Recommendations
  • It is true that you hire a mortgage broker
    because they can search through all available
    loan options, but you should not make the mistake
    of trusting whatever they have available for you.
    It is important to scrutinize their
    recommendations and ask them why they are
    recommending a particular option.

8
Things to Check When Hiring the Best Mortgage
Broker
  • You need to hire a mortgage broker who is in a
    position to offer something valuable. They should
    have a clear vision of what is being offered in
    the market and where they stand in terms of
    competition. They should have the resources to
    find an offer that suits your business needs and
    financial situation. You need to ensure that
    everything that your mortgage broker is offering
    is competitive, attractive, and lasting.
  • You need to be part a business that is well
    structured and organized. If they are organized,
    they will be in a better position to find
    something that suits your needs. Your mortgage
    broker should communicate the plan in the best
    way possible.
  • Be sure to ask them how they have calculated
    their interest rates. Rates may be based on many
    different things. Sometimes, they are based on
    mortgage bonds, but they may also be based on
    mortgage-backed securities. It is better to avoid
    dealing with brokers or lenders offering mortgage
    interest rate based on the 10-year treasury note.
    Treasury notes sometimes move like the mortgage
    bonds but there may be a higher risk involved.
    Therefore it is better to avoid working with the
    mortgage broker who is trying to deceive you
    right from the word go.

9
Things to Check When Hiring the Best Mortgage
Broker
  • Be sure to ask them about any economic event or
    report that is going to change the interest rate
    movement in the near future. Someone who is
    clueless about the way market is going to unfold
    will never come up with an offer that will work
    in your favor.
  • Be sure to conduct your own research, online and
    offline, before finalizing your decision about
    hiring a mortgage broker. You can easily
    shortlist a few brokers, but not all of them are
    worth working with. Check some review sites to
    read what others are saying about different
    mortgage brokers. Ask your friends and colleagues
    for referrals, but do not decide anything unless
    you have met the broker.

10
All You Have to Know about Second Mortgage in
Toronto
  • Types of second mortgages
  • Lump sum mortgage is the most standard type of
    second mortgage that helps you get a single
    amount of money, which you can use to achieve
    goal you might have in mind. You will be making
    fixed monthly payments to repay the loan over a
    set amount of time.
  • Line of credit is another option, which provides
    you with an access to a pool of money that you
    can use to receive cash several times over the
    total duration of your loan. With this option,
    you will first have to work with your lender to
    decide on a maximum limit. You can receive
    payouts until that maximum limit has exhausted.
  • Top Benefits
  • One of the biggest benefits of taking out a
    second mortgage in Toronto is that it allows you
    to have a significant amount in a reasonably
    short time. You will be offering your property as
    collateral, so there will be much more option to
    choose from as compared to when you look for a
    loan without using any security. Another good
    thing about these types of loans is that you can
    borrow more than 80 of your current home value
    you can sometimes get more depending on your
    lender. That is the reason why it makes sense to
    work with an experienced mortgage broker who
    could find the most profitable offer.

11
Know What You are Going to Pay to Hire a Broker
for Second Mortgage in Toronto
  • Appraisal fee Bank appraisal fee is usually the
    most common mortgage fee. Mortgage lenders or
    brokers will ask you to pay a certain amount of
    money to send a licensed appraiser to the subject
    property. This helps them get a better assessment
    of the property. A mortgage broker will also
    prepare the appraisal report after reviewing the
    market conditions. The broker or lender usually
    hires the appraiser to confirm the property is
    safe and is actually worth the sale price they
    have agreed upon with the seller.
  • Rate lock fee Rate lock fee is another type of
    fee mortgage lenders or brokers charge. It is
    charged for the protection of a mortgage broker
    or lender and helps when the current interest
    rates may escalate suddenly and significantly.
    When interest rates fluctuate significantly,
    certain loans may not look as attractive as
    before. This is the situation when a rate lock
    fee comes into play.

12
Know What You are Going to Pay to Hire a Broker
for Second Mortgage in Toronto
  • Application Fee Depending on how experienced or
    reputable your mortgage broker is, you may have
    to pay some money to have your application
    processed. The fee varies greatly between brokers
    and lenders it may also change if you are
    looking for second mortgage in Toronto.
    Sometimes, the broker may waive the fee in order
    to make their loan offers more attractive. In
    some cases, mortgage brokers ask for an
    application fee to gain access to a credit report
    and then process your application. Some brokers
    might include the cost of the appraisal into the
    application fee. Therefore, you need to ask your
    broker exactly what they are going to charge in
    terms of application fee.
  • Origination Fee When you work with an
    experienced mortgage broker, you have to pay a
    certain amount of money as an origination fee.
    They work with the lender on your behalf, so they
    ask you to pay some money to compensate their
    efforts. You usually do not have to worry about
    the origination fee if you choose to work
    directly with a lender. However, you do not want
    to pay more money as interest rate to save some
    money for origination fee.

13
Things to Know When Going for a Second Mortgage
in Toronto
  • When you want a second mortgage, you need to
    proceed carefully and understand all potential
    consequences of making the move. While it may
    look like an excellent way to receive extra cash
    at a reasonably low-interest rate, it may not be
    a right choice for every consumer. Many people
    opt for this type of loan to consolidate debt,
    but you may want to avoid this option if you have
    a history of missing deadlines. Not making
    payments at all or making late payments will put
    you in serious trouble. You might end up losing
    your home if you fail to repay the loan after a
    set amount of time. Therefore, you should take
    your time and compare all available options and
    your reasons to get extra cash before you use a
    second mortgage in Toronto.
  • It is equally important to get a good idea of how
    much amount you can actually borrow using your
    house as security. In most cases, you can get the
    balance left after subtracting the remaining
    amount of your current mortgage and the current
    market value of your property.

14
Things to Know When Going for a Second Mortgage
in Toronto
  • Keep in mind that lenders are also going to
    consider how stable your income is. If you have a
    stable employment status, your lender might agree
    to a higher maximum loan value. So, be sure to
    check exactly how much you can borrow to
    determine if going for a second mortgage will
    provide you with enough money to deal with your
    financial problems.
  • It is important to express your overall financial
    goals while communicating with your selected
    mortgage lender. Your mortgage lender should also
    have information about your spending habits, your
    monthly budget, and the overall time you need to
    stay in your current home. You have to understand
    that taking a second mortgage is not going to be
    a feasible option if you plan to relocate within
    the next few years. In this situation, the better
    option would be to have your current mortgage
    modified to suit your needs. It will help lower
    your monthly loan payments and make it easier to
    sail through tough financial times. You have to
    discuss it with your lender and ask them about
    whatever options they have available as per your
    budget and lifestyle.

15
Two Things to Understand Before Opting for a
Second Mortgage in Toronto
  • Know the Options
  • Even when you are interested in the second
    mortgage, you have to understand that there may
    be different types of loans available. You can
    opt for a home equity line of credit or you can
    simply move to a home equity loan. Both options
    have their own pros and cons that you have to
    understand before making a choice.
  • Know the Fees
  • Whatever the choice, you need to understand that
    you will have to pay something to your lender as
    well. Many people do not realize that using this
    option involves several fees and closing costs.
    You may also be entitled to pay an appraisal fee.
    It is also important to mention that the
    competition second mortgage lenders have to face
    often compels them to reduce or eliminate certain
    fees. Therefore, it is important to discuss all
    your concerns with your mortgage broker and ask
    them clearly about the total amount of money you
    might need to pay before you could secure some
    money.

16
The End
  • For more details, please visit
  • https//mortgagesolutionsgroup.ca/
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