EXPERT REPEAT BUYERS MORTGAGES
If you are purchasing another property
Best Mortgage Rates For Repeat Buyers
You are an experienced buyer, as you have gone through the purchase process before. However, the mortgage world is a very fluid and changing environment, so things may not be the same as they were when you last purchased. It’s important to know what your options are in this NEW and ever evolving mortgage market specially for repeat buyers. We want to make sure that you have access to the right tools to succeed in your next home purchase.
Changes In Mortgage for Repeat Buyers
There are recent changes that no doubt will have an impact on how buyers can qualify for their mortgage.
- Lenders are now looking at things differently than they were before.
- Rental income from suites and rental properties are being looked at differently.
- Your net worth, and how much cash you have available.
In the past, your income and your ability to debt service, and qualify the mortgage was often mitigated by how much cash reserves, or net worth you had. In today’s world, while cash reserves and a strong positive net worth can never hurt, they are no longer direct substitutes for debt servicing gaps.
It is even more important now to consult with a professional to make sure you are maximizing your income, when it comes to lender policies.
You would want to find a professional who has access to more than just one lender.
Not all lenders look at rental income the same, and this can be the difference between getting approved or not.
You might be thinking, “That’s fine, I am not going to hold two properties, I plan on selling my current home and then buying another, so I don’t really have to worry about anything.”
Wait….
There are still some things for Repeat Buyers to consider.
- Your mortgage is not “portable” anymore – at least not in the manner that you might perceive “portable” to mean.
- You will need to completely re-qualify under today’s far more stringent guidelines for the same mortgage you hold. Yes, even if you are not borrowing any more money, and all you are doing is wanting to “port” the same mortgage, with the remaining term, on to a new property, you still have to re-qualify.
We have often seen clients discover that they now qualify for significantly less than their current mortgage balance in these types of situations.
Discover this BEFORE you list and sell your current home.
You can save yourself from a lot of stress and heartache by taking a couple of extra steps before you list, and/or accept an offer on your current home.
If you are self employed (the owner of the business) you need to be having a detailed conversation with an expert.
Your conversation should include a complete overview of all documents required. Repeat Buyers, especially those self-employed, should be aware that…..
The list has grown radically since 2012.
You likely think you are awesome, because your company is awesome, and no doubt you and your company are awesome!
However, what it all boils down to in the end is your Personal Line 150 documented income.
Having $100.00 or $100,000.00 in liquid capital will not matter.
Having never missed a mortgage payment in your life will not matter (99.69% of CDN’s never miss a payment – so ‘special’ is relative here).
Where our business owner clients used to provide a single CRA Notice of Assessment, and not much else, they are today being asked for the following;
- 2 years CRA Notice of Assessment
- 2 years T1 General personal tax returns (complete & accountant prepared)
- 2 years Corporate Financials (retained earnings are of limited help)
- Documented proof of business for self (i.e. Notice of Articles, GST returns, business licences)
From a few pages, to a few hundred!
Things have changed.
The list goes on….
You may need bridge financing and you can find more details in our Bridge Financing page.
Keep in mind that not all lenders are offering bridge loans anymore, and the rules and regulations with bridge financing has changed as well. It has also gotten a lot more expensive.
Make sure that you are aware of them before you set your dates, and assume that your bank will fund you the money for the down payment, or carrying costs.
With a changing mortgage marketplace, you need to be updated always so that you can make a decision that is tailored to your current situation with the flexibility that you require.
I can help you through the entire process, helping you explore all your options.
Make a call now and have your financing plan in place and be sure it is workable prior to accepting an offer to sell your current home.
This is vital!
How Can I Help?
MORTGAGE SERVICES
Mortgage
Purchasing
Let’s be honest, not many people can pay for their home in cash… Most people will need a mortgage to purchase real estate.
Our process starts with a 20-minute phone call. Often times, we can address 99% of your questions & concerns, and we can tell you how much of a mortgage you’d qualify for.
Mortgage
Refinance
It might seem strange, but you might actually be able to save money by refinancing your mortgage… Depending on the rate environment and your contract, I can help you figure out if it makes financial sense for you to refinance. Even with the fees & penalties – you could save thousands.
Mortgage
Renewal
If you are planning on renewing your mortgage with your current lender, you may be leaving money on the table. We can negotiate a better deal. You may also want a new mortgage product upon renewal, and we will show and guide you how to choose the mortgage that suits your future goals.
Debt Consolidation
Mortgage
Do you want to use your mortgage to consolidate your debt to manage your credit cards, car loans, taxes, or any other high interest bills? When executed well, alongside a short – and long-term plan, debt consolidation loans can help you reduce your overall debt burden while freeing up cash flow.
Sepration or Divorce
Solution
The truth is that divorce is difficult and stressful enough on its own. And when living arrangements, mortgages and financial instability start to pile up, it becomes a disaster. Don’t go into your divorce or separation with your eyes closed… You should be prepared for every financial thing that your partner could throw your way.
Mortgage Special
Servicese
In addition to our normal offerings, we have special programs for special situations. Learn more about our 10-Year Mortgage Rates, Mortgages For Heroes, & our Mortgage Adoption Process.