Market Beware: The Risks of Subject-Free Offers

General 8 Oct

When purchasing a home, most offers typically include conditions (or “subjects”)—specific requirements that must be met before the sale is finalized and the property is transferred. Common subjects include:

  • Financing approval
  • Home inspection
  • Fire/home insurance
  • Review of strata documents (if applicable)

These conditions help protect buyers from potential issues related to financing, the property’s condition, or securing insurance. Once all conditions are met by the agreed date, the sale can proceed. If not, the buyer can walk away without penalty.

However, in today’s competitive housing markets, subject-free (or condition-free) offers have become more common. These are offers made without any conditions, essentially saying “what you see is what you get.”

Let’s break down the pros and cons of subject-free offers for both buyers and sellers.

Pros of Subject-Free Offers

For Buyers:
In a competitive market, a subject-free offer can make your bid more attractive to the seller. It shows you’re serious, and the deal is less likely to fall through, which might help you beat out other potential buyers.

For Sellers:
Sellers benefit from subject-free offers because they speed up the process. The buyer is willing to proceed without any conditions, which means there’s less waiting and uncertainty. A subject-free offer often includes a competitive price and aligns with the seller’s preferred closing date.

Cons of Subject-Free Offers

For Buyers:
Subject-free offers are extremely risky. Here’s why:

  • Financing Uncertainty:
    A pre-approval is not a guarantee of financing. Lenders still need to approve the property and its value. Without a subject to financing, the buyer risks losing their deposit if the financing falls through, which could be thousands of dollars.
  • Skipping Inspections:
    Without a home inspection, you could be buying a property with hidden issues like structural damage or code violations. Insurance companies might also require an inspection, so skipping this could leave you without coverage.
  • No Due Diligence:
    With no time to review important documents, check title issues, or secure insurance, you could face legal or financial problems after the sale.

For Sellers:
While sellers face less risk, financing could still fall through, leaving the sale in limbo. Even if the offer is accepted, the deal isn’t guaranteed until the buyer secures funding.

Financing Around Subject-Free Offers

If you’re considering making a subject-free offer, you’ll need to do as much research and preparation as possible beforehand. Securing financing, though never guaranteed, is crucial. Pre-approval helps, but you’ll want to ensure the lender approves the specific property. Our team at Mortgage Man DLC will assist you with every step of this preparation, be sure to reach out to us markgoode.ca

Contractual Obligations

Be aware that once your offer is accepted, it becomes a legally binding agreement. If you can’t secure financing or decide to back out, you could lose your deposit or even face legal consequences. Sellers might sue for damages if they’re forced to sell to another buyer at a lower price.

Mitigating Risks of Subject-Free Offers

If you decide to go ahead with a subject-free offer, here’s how you can reduce the risks:

  • Get Pre-Approved:
    This gives you a clearer picture of your financing options, even though it’s not a guarantee. You can simply download Mortgage Man’s My Mortgage Toolbox free.
  • Do Your Homework:
    Research the property’s history, any major renovations, and potential issues through a Property Disclosure Statement.
  • Review the Title and Strata Documents (if applicable):
    Ensure there are no outstanding legal issues with the property title or hidden concerns in the strata documents.
  • Secure Insurance:
    Confirm that you can obtain insurance for the property, and if possible, conduct an inspection beforehand.
  • Consult Experts:
    Speak with your real estate agent and mortgage broker (mark@markgoode.ca / 705.326.8523) to assess the risks and explore alternative strategies like a short closing period, which might make your offer competitive without going subject-free.

Conclusion

Subject-free offers can help you win in a competitive market, but they come with significant risks. Always weigh your options carefully, do your due diligence, and consult with your real estate and mortgage professionals to make an informed decision. If you’re considering a subject-free offer, talk to Mortgage Man’s mortgage experts to discuss financing and ensure you’re fully prepared.

Unlocking the Advantages of Rate Holds for Your Mortgage

General 22 Aug

Rate Holds with Mortgage Man DLC

Embarking on the journey to purchase your first home is an incredibly exciting and rewarding experience!

To make the mortgage process smoother, one effective step is to get pre-approved for your mortgage. Pre-approval doesn’t lock you into a specific lender, but it does secure your interest rate for 90 to 120 days, protecting you if rates increase while you’re still house hunting.

Here are some key benefits of mortgage rate holds:

Protection Against Rate Increases: A rate hold guarantees your interest rate for a set period, usually up to 120 days, shielding you from potential rate hikes. Plus, if rates drop during this time, you can still benefit from the lower rate!

Better Financial Planning: Knowing your exact interest rate allows for more precise financial planning and budgeting. It provides clarity on your monthly mortgage payments, helping you target the right price range for your home and ensuring long-term financial stability.

Time for Decision Making: A rate hold offers peace of mind, giving you the necessary time to find the perfect home. It also allows you to compare different mortgage options without the pressure of changing rates, which is especially helpful when evaluating various lenders or mortgage products.

Stress Reduction: Rate holds reduce the stress associated with fluctuating rates and market uncertainties. After the recent market volatility, having a secured rate can ease the pressure of home shopping. You can take your time finding the right home, and if your rate hold expires, renewing it is simple!

Securing a Competitive Rate: While significant rate increases are not expected in the near future, securing a rate hold can still save you money by locking in a favorable rate should market conditions change.

Overall, rate holds provide peace of mind, financial security, and the ability to make informed decisions when entering a mortgage agreement. They are particularly valuable in fluctuating rate environments or when delays in finalizing your mortgage are anticipated. Interested in purchasing a home or learning more about rate holds and the mortgage process? Reach out to Mortgage Man DLC today 705.326.8523, we are here to assist you through the mortgage process.

 

Source: DLC Marketing Team

Switching from a Variable Rate to a Fixed Rate Mortgage

General 14 Jun

With the anticipation of rates going down, some homeowners may be considering switching from a variable-rate mortgage to a fixed-rate mortgage to lock in their next term.

Stability in Payments: With a fixed-rate mortgage, your monthly payments remain consistent throughout the life of the loan. This predictability makes budgeting easier and shields you from fluctuations in interest rates that could otherwise increase your payments with a variable-rate mortgage.

Protection Against Interest Rate Increases: One of the main reasons to switch to a fixed-rate mortgage is to ensure you are protected from rising interest rates. If interest rates rise, your mortgage rate and monthly payments remain unaffected, providing financial security and peace of mind.

Long-Term Planning: Fixed-rate mortgages are ideal for long-term planning and financial stability. You can accurately forecast your housing expenses over the entire loan term, making it easier to manage your overall budget and financial goals.

Risk Management: By locking in a fixed interest rate, you mitigate the risk of future interest rate hikes, which could significantly increase your borrowing costs with a variable-rate mortgage. This strategy can provide financial protection and reduce uncertainty.

Potential Savings: In certain economic environments, fixed-rate mortgages may offer lower interest rates compared to variable-rate mortgages. By refinancing to a fixed-rate loan when rates are favorable, you could potentially secure a lower overall interest rate and save money over the life of the loan.

Easier Financial Planning: Fixed-rate mortgages simplify financial planning by eliminating the need to anticipate and adapt to changes in interest rates. You can confidently plan for other financial goals and expenditures without the uncertainty of fluctuating mortgage payments.

Overall, transitioning from a variable-rate to a fixed-rate mortgage offers stability, protection, and peace of mind, making it a favorable option for many homeowners, particularly those seeking long-term financial security. To learn more about variable vs fixed rates, check out this quick video here https://markgoode.ca/home-purchase/fixed-rate-vs-variable-rate/

Contact our Mortgage Man DLC team to discuss the options that best suit your budget and situation, we look forward to assisting you.

Source: DLC Marketing Team OurHouse

Boost Your Yard’s Allure with Top ROI Ideas

General 14 May

Summer beckons for outdoor enjoyment in your yard. To maximize your space, I’ve outlined key yard enhancement concepts offering significant ROI, ensuring you get the best value and enhance both your home’s equity and curb appeal simultaneously!

  • Embrace Sustainable Landscaping: Incorporating native plants, drought-resistant foliage, and xeriscaping techniques not only reduces water consumption but also creates an eco-friendly landscape. Consider installing a rain garden or a drip irrigation system to conserve water and enhance the natural beauty of your yard.
  • Install Outdoor Structures: Adding functional outdoor structures like pergolas, arbors, or gazebos can provide shade, define spaces, and add architectural interest to your yard. These structures can serve as focal points and create inviting outdoor living areas for entertaining or relaxation.
  • Upgrade Your Lawn: A lush, well-maintained lawn instantly elevates the appearance of your yard. Invest in professional lawn care services, aerate and overseed to fill in bare patches, and regularly fertilize and water your lawn to keep it healthy and green. Consider alternatives like artificial turf for low-maintenance options.
  • Incorporate Water Features: Incorporating a water feature such as a fountain, pond, or waterfall adds visual interest, tranquility, and a sense of luxury to your yard. The soothing sound of running water can create a serene ambiance and attract wildlife, enhancing the overall appeal of your outdoor space.
  • Enhance Privacy: Increase the comfort and enjoyment of your yard by enhancing privacy with strategic landscaping, fencing, or screening options. Planting tall hedges, installing lattice panels, or adding trellises with climbing plants can create secluded areas and block unsightly views while adding beauty and greenery to your yard.

Incorporating these supplementary concepts alongside your existing plans can turn your yard into a welcoming oasis, elevating both your pleasure and providing a substantial return on investment.

Source: DLC Marketing Team

Bank turn you down for a mortgage? Let us assist you with Alternative Lending options!

General 1 May

Alternative LendingWhat is Alternative Lending?

You may be wondering what Alternative Lending is and how it benefit you. When traditional lenders (such as banks or credit unions) deny mortgage financing, it can be easy to feel discouraged. However, it is important to remember that there is always an alternative and our Mortgage Man team can help!

If you’re seeking a mortgage, but your application doesn’t fit into the box of the big traditional institutions, you’ll find yourself in what’s commonly referred to in the industry as the “Alternative-A” or “B” lending space. These lenders come in three classifications:

  • Alt A lenders consist of banks, trust companies and monoline lenders. These are large institutional lenders that are regulated both provincially and federally, but have products that may speak to consumers who require broader qualifying criteria to obtain a mortgage.
  • MICs (Mortgage Investment Companies) are much like Alt A lender but are organized in accordance with the Income Tax Act with an incorporated lending company consisting of a group of individual shareholder investors that pool money together to lend out on mortgages. These lenders follow individual qualifying lending criteria but tend to operate with an even broader qualifying regime.
  • Private Lenders are typically individual investors who lend their own personal funds but can sometimes also be a company formed specifically to lend money for mortgages that carry a higher risk of default relative to a borrower’s situation.  These types of lenders are generally unregulated and tend to cater to those with a higher risk profile.

All classifications noted above price to risk when it comes to a mortgage. The more broad the guidelines are for a particular mortgage contract, the more risk the lender assumes. This in turn will yield a higher cost to the borrower typically in the form of a higher interest rate.

Before considering an alternative mortgage, here are some questions you should ask yourself:

  1. What issue is keeping me from qualifying for a traditional “A” mortgage today?
  2. How long will it take me to correct this issue and qualify for a traditional lender mortgage?
  3. How much do I have to improve my credit situation or score?
  4. How much do I currently have available as a down payment?
  5. Am I willing to wait until I can qualify for a regular mortgage, or do I want/need to get into a certain home today?
  6. Is this mortgage sustainable? Can I afford the larger interest rate?
  7. Can I exit this lender down the road in the event the lender does not renew or I cannot afford this alternative option much longer?

If you are someone who is ready to go ahead with an alternative mortgage due to a weaker credit score, or you don’t want to wait until you’re able to qualify with a traditional lender, these are some additional questions to ask when reviewing an alternative mortgage product:

  1. How high is the interest rate? What are the fees involved and are these fees paid from the proceeds, added to the balance or paid out of pocket
  2. What is the penalty for missed mortgage payments? How are they calculated? What is the cost to get out of the mortgage altogether?
  3. Is there a prepayment privilege? For example, are you able to avoid penalties if you give the lender a higher mortgage payment once a month?
  4. What is the cost of each monthly mortgage payment?
  5. What happens at the end of the term. Is a renewal an option and what are the costs to renew if applicable
  6. What is the fine print?

When it comes to the alternative lending space, things can get complex. Contact our expert team at Mortgage Man DLC today if you’re considering an alternative lender and we can help you source out various mortgage products, as well as review the rates and terms to ensure it is the best fit for you. We find mortgage solutions tailored to YOU! Contact us today 705.326.8523 or fill out our convenient online application here.

Source: OurHouse DLC Marketing Team

5 Expert Tips to Tackle Financial Stress Head-On: Your Guide to Financial Well-Being

General 15 Apr

 

With the continued rise of inflation, interest rates and the overall cost of living, the uncertainty can be unnerving for many individuals. But don’t fret! We have some tips and suggestions to help you manage your financial stress and help you to power through these latest economic changes:

Prioritize What You Can Control: It can be easy to feel like you have no control over your financial situation, especially with the economy in flux. However, dwelling on things you cannot fix will only cause more stress. Instead, we recommend focusing on what you CAN control within your situation. For instance, take a looking at your phone bill and services to see if you can reduce the cost (even temporarily), reviewing your grocery bill and looking for places to switch to cheaper brands or alternatives, perhaps buying in bulk. You’ll not only save money, but you will feel like you have more control and help reduce stress.

Pay Essential Bills: If you are struggling to pay your monthly bills, prioritizing them can help you gain some control. Knowing which bills are most important to pay first can help reduce anxiety as you’re not scrambling to decide what to do. In some cases, prioritizing your bills can also help you uncover unnecessary spending and you may find something that can be eliminated entirely (even temporarily).

Automate Payments and Savings: If you’re struggling to keep up with your bills and payments, or are finding that you keep saying you’ll save money, but aren’t, considering automation for your finances can be a step in the right direction. Ensuring that your bills are paid on time will help reduce stress and protect you from wasting money on penalties for missed payments. Alternatively, you can also set up automatic money transfers on the days you are paid to move funds into a separate, savings account before you even see it. Thereby, reducing the likelihood that you’ll skip on adding to your savings that month or use that money elsewhere.

Find Ways to Earn More Money: When cashflow is a problem and you are feeling the strain of trying to afford your current lifestyle, looking for ways to earn additional money can be a lifesaver! Consider part-time work for the weekends, consulting in your area of expertise or picking up extra hours at your current place of work. Now is also a great time to discuss with your manager if you are due for a raise.

Talk to Your Mortgage Professional: For most people, their mortgage is their largest monthly bill. If you are feeling the financial crunch, now is a great time to talk to our expert team at Mortgage Man DLC about potentially changing your payment schedule or even looking for a different mortgage product with better rates (ideally if you are at the end of your term to avoid any mortgage penalties). Do not hesitate to be honest about your situation and ask us what your options are.

Regardless of where you find yourself financially, there are often many solutions to help reduce and resolve your stress and ensure that you have healthy monthly cashflow. At Mortgage Man DLC, we are here to take the stress out of the process for you and have your best interests in mind, contact us today 705.326.8523 or fill out our online mortgage application today.

 

Source: Our House – DLC Marketing Team

What to Expect for the 2024 Spring Housing Market

General 2 Apr

The spring housing market is just around the corner! Whether you’re looking to sell, buy, or want to ensure your mortgage is in order, knowing what to expect can help.

Here is the low down on what we are anticipating for various factors affecting the housing market this season:

  • Interest Rates: While the Bank of Canada held the overnight rate steady at 5% for the past five meetings, it is expected that they will make the first interest rate cut in June or July this year, followed by additional reductions in the overnight rate to a more manageable level as the year continues. Experts are predicting that The Bank of Canada rate could drop to 3.75% by the end of 2024.
  • Housing Prices: With interest rates expected to start coming down mid-year, that means more affordability and buyers in the market. As a result, it is expected that home prices will increase this year.
  • Market Inventory: According to the Canadian Real Estate Association, the number of new properties listed has edged up 1.5% month-over-month in January, with this expected to rise as the interest rates drop.?

Looking to buy? For those of you who may be looking to purchase a home this Spring, here are some things that can help you be prepared:

  • Get your finances ready by paying off as much of your debt as possible to improve your debt-to-income ratio and ensure you qualify for the best rate possible.
  • Obtain a mortgage pre-approval before starting your search. This helps you understand your budget and makes your offer more appealing to sellers.
  • Clearly define your priorities and preferences for a home. This will help streamline your search and make decisions more efficiently, especially as the market becomes more competitive.

First-time homeowner? Take advantage of first-time home buyer assistance if you have not been a homeowner in the past. You can find out more on the Government of Canada website here.

Looking to sell? If you want to sell your home this Spring, you will want to be ready to take advantage of the market! Some things you can do include:

  • The first step is to find a reliable real estate agent who can help you with pricing and listing your home for sale. Not sure who to call? I can provide some references!
  • Allow for open houses during evenings and weekends whenever possible to ensure you’re maximizing potential buyer foot traffic.
  • I have even more tips on decluttering and getting your home ready to sell below!

Want to renew or refinance? If you’re not looking to sell or buy this Spring, you may still be looking for mortgage advice or assistance with your home and finances. Now is a great time to make sure your mortgage is working for YOU! With so many renewals coming up this year, keep in mind there are several benefits to taking time to review your renewal before you sign:

  • Get a Better Rate: With interest rates expected to come down, taking time to reach out to me and shopping the market could help save you money!
  • Consolidate Debt: Renewal is a great time to take a look at your existing debt and determine whether or not you want to consolidate it onto your mortgage. In most cases, the interest rate on your mortgage is less than you would be charged with credit card companies or other forms of financing you may have.
  • Start on that Reno: Do you have projects around the house you’ve been dying to get started on? Renewal time is a great opportunity for you to look at utilizing some of your home equity to help with home renovations so you can finally have that dream kitchen and updated bathroom, or even utilize it to purchase a vacation property!
  • Change Your Mortgage Product: Are you not happy with your existing mortgage product? Perhaps you’re finding that your variable-rate or adjustable-rate mortgages are fluctuating too much and you want to lock in! Alternatively, you may want to switch to a variable as interest rates level out. You can also utilize your renewal time to take advantage of a different payment or amortization schedule to help pay off your mortgage faster!

No matter your plans for this month or the coming season, don’t hesitate to reach out to our team for expert mortgage advice, 705326.8523 or you can apply today here !

Source: Dominion Lending Centres Marketing

Guarding Against Deception: Fraud Prevention Month Initiatives Unveiled

General 15 Mar

Did you know? March is Fraud Awareness Month. Protecting yourself and your mortgage from fraud is crucial to safeguard your financial well-being. Understanding some of the more common mortgage fraud scams and how to protect yourself can make all the difference!

The most common type of mortgage fraud involves a criminal obtaining a property, and then increasing its value through a series of sales and resales involving the fraudster and someone working in cooperation with them. A mortgage is then secured for the property based on the inflated price.

Below are some red flags to be aware of as potential lead-ins to fraud:

  • If someone offers you money to use your name and credit information to obtain a mortgage
  • If you are encouraged to include false information on a mortgage application
  • If you are asked to leave signature lines or other important areas of your mortgage application blank
  • If the seller or investment advisor discourages you from seeing or inspecting the property you will be purchasing
  • If the seller or developer rebates money on closing, and you don’t disclose this to your lending institution

Another fraud scheme to be aware of is title fraud. Title fraud is essentially a form of identity theft and is typically discovered when your mortgage mysteriously goes into default and the lender begins foreclosure proceedings.

With title fraud an individual, who is using false identification to pose as you, will register forged documents transferring your property to his/her name. From there, they register a forged discharge of your existing mortgage and get a new mortgage against your property. Then the fraudster makes off with the new home loan money without making mortgage payments. The bank thinks you are the one defaulting – and your economic downfall begins.

But don’t panic! There are lots of ways you can protect yourself from title fraud:

  • Always view the property you are purchasing in person
  • Check listings in the community where the property is located – compare features, size, and location to establish if the asking price seems reasonable
  • Make sure your representative is a licensed real estate agent
  • Beware of realtors or mortgage professionals with a financial interest in the transaction
  • Ask for a copy of the land title or go to a registry office and request a historical title search
  • In the offer to purchase, include the option to have the property appraised by a designated or accredited appraiser
  • Insist on a home inspection to guard against buying a home that has been cosmetically renovated or formerly used as a grow house or meth lab
  • Ask to see receipts for recent renovations
  • When you make a deposit, ensure your money is protected by being held “in trust”
  • Consider the purchase of title insurance. While title can be purchased after taking possession or years later, the best time to purchase a title insurance policy is NOW before an issue like fraud is discovered.

Remember, being proactive and vigilant is key to protecting yourself and your mortgage from fraud. If you suspect fraudulent activity, act promptly to mitigate potential damage and report it to the appropriate authorities such as the Canadian Anti-Fraud Centre.

Estate Planning: Are You Covered?

General 15 Feb

 

Looking at where you are now, and where you want to end up, do you personal goals include a review of your finances and estate? If it doesn’t, it certainly should be at the top of your list! Proper estate planning can ensure that you have a stress-free year knowing you are covered!

Is your will up-to-date?

The purpose of a will is to outline your assets and determine how they will be distributed, as well as who will be in charge of managing affairs. Some key components to include in this document are:

  • Up-to-date list of your significant assets; note the location if outside your province or outside Canada.
  • Who will inherit your assets? And which?
  • Outline of where you want assets to pass outside your estate to avoid probate fees (e.g., an insurance policy, an RRSP)? Do this via beneficiary designation.
    • If they are minors, do you have a trust or other provisions in place?
  • Is the list of beneficiaries in your will up to date? Have there been recent births, deaths or marriages in your family?
  • Have you included alternates in case your named beneficiaries predecease you?
  • Do you want to give to charities or other organizations?
  • If you have children, have you indicated a guardian and spoken to them?
    • Did you include an alternate in case the guardian you chose is unable to commit?
    • Have you reviewed your choice of guardian as your child grows older?
  • Your executor who will carry out your wishes after you die. You can name one executor or two or more co-executors. Be sure to name one or more alternates as well.

Have you assigned a power of attorney?

Another important (and often overlooked!) aspect of estate planning involves naming a power of attorney. This individual is someone you trust to make decisions for you should you become unable to do so due to injury or illness, whether temporary or otherwise. Power of attorney documents are created for you by a wills and estates lawyer (or notary in Quebec) as part of your estate plan. Be sure to get duplicate copies made for your POA(s) and to keep in your file. Ask friends and family for recommendations on a preferred estate lawyer.

Do you have mortgage protection insurance?

Through Manulife Mortgage Protection Plan (MPP), you have the opportunity to add a portable insurance policy to your mortgage that helps protect your loved ones and your home should something unexpected happen to you. Unlike bank insurance, MPP is a portable life and disability product that you can take with you, from lender to lender and property to property. This gives you the utmost future flexibility and is unlike bank insurance products which tie you down exclusively to them.  To ensure you get the best rate at renewal, you must have invested in an insurance product like MPP that will give you the freedom to move! At Mortgage Man DLC it is always offered as an option with your mortgage package.

Mortgage life insurance will protect your family’s future by paying out your mortgage should the mortgage holder pass away. Manulife will also make your mortgage payments while your claim is being adjudicated, so there is no added stress for a loved one at an already difficult time. Mortgage disability insurance will take care of your mortgage payments plus property taxes if you become disabled. Disabilities from sickness and accidents are relatively common and will affect 1 in 3 borrowers throughout their mortgage amortization.  Manulife provides budget-friendly payment options, the ability to top-up your coverage and so much more.

These are all important aspects to consider to ensure your estate and family will be provided for should something happen. While never a fun topic, it is an critical one and the better prepared you are, the better off your loved ones will be.

Contact our team today at Mortgage Man DLC, mark@markgoode.ca or 705.326.8523, for more information on our MPP package.

Understanding Amortization: Exploring Your Options for Loan Repayment

General 5 Feb

Your mortgage amortization period is the number of years it will take you to pay off your mortgage. Depending on your choice of amortization period, it will affect how quickly you become mortgage-free as well as how much interest you pay over the lifetime of your mortgage (a longer lifetime equals more interest, whereas a shorter lifetime equals less interest but also bigger payments).

Amortization Benchmarks
Let’s start by looking at the mortgage industry benchmark amortization period. This is typically a 25-year period and is the standard that is used by the majority of lenders when it comes to discussing mortgage products. It is also typically the basis for standard mortgage calculators. While this is the standard, it is not the only option when it comes to your mortgage amortization. Mortgage amortizations can be as short as 5 years and as long as 35 years!

Benefits of a Shorter Amortization
Opting for a shorter amortization period will result in paying less interest overall during the life of your mortgage. Choosing this amortization schedule means you will also become mortgage-free faster and have access to your home equity sooner! However, if you choose to pay off your mortgage over a shorter time frame, you will have higher payments per month. If your income is irregular, you are at the maximum end of your monthly budget or this is your first home, you may not benefit from a shorter amortization and having more cash flow tied up in your monthly mortgage payments.

Benefits of a Longer Amortization
When it comes to choosing a longer amortization period, there are still advantages. The first is that you have smaller monthly mortgage payments, which can make home ownership less daunting for first-time buyers as well as free up additional monthly cash flow for other bills or endeavors. A longer amortization also has its advantages when it comes to buying a home as choosing a longer amortization period can often get you into your dream home sooner, due to utilizing standard mortgage payments versus accelerated. In some cases, with your payments happening over a larger period, you may also qualify for a slightly higher value mortgage than a shorter amortization depending on your situation.

Let’s Chat!
Our team of mortgage professionals are happy to help with the decision for the amortization that best suits your unique requirements and ensures you have adequate cash flow. However, it is important to mention that you are not stuck with the amortization schedule you choose at the time you get your mortgage. You can shorten or lengthen your amortization, as well as consider making extra payments on your mortgage (if you set up pre-payment options), at a later date.

Ideally, you are re-evaluating your mortgage at renewal time (every 3, 5, or 10 years depending on your mortgage product). During renewal is a great time to review your amortization and payment schedules or make changes if they are no longer working for you.

If you have any questions or are looking to get started on purchasing a home, don’t hesitate to reach out to us at Mortgage Man DLC today 705.326.8523, mark@markgoode.ca
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