Is a Conventional Mortgage The Best Choice?

conventional mortgagesEveryone is different and you never know what kind of mortgage will work best for you. What will work best is finding a Toronto mortgage broker like us to help you handle your affairs. We’ll aggressively pursue the best mortgage for you, and all you’ll have to do is make sure you’re getting the best deal for you. We’ll present you with a whole host of options and make sure you are getting the deal that’s right from you. There are so many different lenders that it can be hard to find the one that’s right, but that’s why you work with us! Here we’re going to talk about conventional mortgages, so let’s get started.

How Do Conventional Mortgages Work?

Conventional mortgages are backed by both your credit and your equity. If this is your first home mortgage (not necessarily the first one you’ve ever had, but the first for this property) you will need to be able to put down 30%. If you can’t do this you’ll have to pay something called PMI or private mortgage insurance. These kinds of mortgages come from banks and other traditional financial institutions. This way you’re going to be able to get the best lending experience, since they’re highly regulated.

Are Conventional Mortgage Lenders Hard to Deal With?

They can be, especially if you’ve had issues with your credit in the past or with “slow pays”. Slow pays can be where you take too long to pay off a mortgage or other debt, and this can be an issue if you’ve done it before. They’re also a bit haughty if they think you have nowhere else to get money. This is why you should work with one of our Toronto mortgage brokers. We’ll make sure that you can explore your options across both Canadian conventional mortgages as well as private mortgages, so you can make the right choice.

Should You Get a Conventional Mortgage?

It will really boil down to what kind of credit you have and what relationship you have with your mortgage. We’ll be here to help you figure out everything you need to know what kind of mortgage is right for you. If you have good credit you may still want to look at alternatives. Working with one of our Toronto mortgage brokers will help you get the best idea of what’s out there as far as any kind of mortgage situation will go. There are conventional mortgages to fit every need, and sometimes your needs just fall a little outside that.

Work With Us and Save More on Any Mortgage

If you’d like to find the mortgage that’s right for you, contact us! We’re Toronto mortgage brokers that can help you get the most for your money. From a conventional mortgage that will work to a more alternative and flexible option to get you the best terms. Whatever it is we’ll be here to help, so contact us today and see what we can do for you.

All Cash Can be All Bad: Why You Need a Mortgage

conventional mortgagesNo one wants to be in debt for THAT much money – but without a bank to hold you back, all cash buyers can end up in a serious pickle. Yes, you may be able to save some serious money, but if you end up buying a home that’s falling apart or paying more than it’s actually worth, is it really worth it? Here we’ll talk about why most buyers do better with mortgages, even if they have an 80% down payment. After all, a home is one of the most expensive purchases you’ll ever make, why make the wrong one?

Mortgages can be a Hassle

Let’s face it, mortgages can be a hassle. Trying to get one, even if you go the private mortgage route, is fraught with worry. You don’t know if they’re going to approve your application, you don’t know how much they’re willing to give you and you won’t know what the terms are until after the process is over with. Even worse, most people don’t get preapproved for a mortgage before they start looking for a home – leaving them in the lurch. We’ve said it once, we’ll say it again, the worst part of getting a mortgage is waiting too late to get a mortgage.

That Red Tape Protects You

When it comes down to it, all those approval processes that you have to go through actually protect you when it comes to buying a home. The house has to pass muster, it can’t be overvalued and it’ll have to go through an exhaustive provenance check to make sure that the person selling the home OWNS the home. It’s not uncommon for people to hold a title but not own a title – without title insurance and the title services that a mortgage company will run the home through, you may wind up with a big mess on your hands.

Cash Buyers Rarely Get Appraisals

Many cash buyers approach real estate as a “what you see is what you get” process – but this is rarely true. As Toronto mortgage brokers we’ve worked with many people that have tried to go all cash and run into problems later – don’t be one of these people! If you do have to buy with cash, make sure you get an appraisal.

There are many appraisal companies in the Toronto area that you can talk to, expect this to run anywhere from $200 to $1000, depending on the property. You’ll also want to make sure that you consult a title or real estate attorney to run a check on the title of the home; if there are taxes, liens or debts outstanding on the property when you buy it, you could inherit the debt.

Think Ahead

When it comes to buying property, even when you go all-cash, you need to think ahead. Banks are so finicky with who they do business with because they’ve had the bad experiences. Even if you’re thinking about going all-cash on buying your home, talk to one of our Toronto mortgage brokers first! We can show you how a large down payment can help you establish credit, save you money and help you make sure that the property you’re buying is on the up and up. Don’t get careless because you’ve got the cash to buy a home – know what you’re getting into before you buy.