Archive for the ‘Mortgages’ Category

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Personal Loan Look Up! What Are The Loan Seekers Looking For

Thursday, January 1st, 2009

We have just entered into year 2009, and our future planning about what we have kept for this year will be ready to come up in to life from our mind’s canvas among the promises we did with our family and personal life. Our first ever goal should always be same like staying out of financial crises that come out with our budget over spending, so always keep some thing for the rainy season (In Canadian prospect we can change this verse ‘.. rainy season’ into a ‘.. snow falling’), because our personal financial success depends on our savings. Anyhow, personal finance isn’t a term that could only known by holding a financial degree but it’s a common thing, which even a layman can understand with his own natural instinct. Financial consultants only describe it better in the light of related laws, timely benefits, lenders internal policies, and economic changes which could make your financial decision and transaction more efficient, economic and above all competitive with those who don’t get professional advice.

Beside great variety loan requirements people always looking for some opportunities like what we have this year specially offered to us, and money is the key that holds reality of our dreams, anyhow some people may be looking for the lowest-cost funds for the renovations, new business start up, student loan look up (education), federal loan look up, private and provincial loan look up or other major expenditures and investments.

Bellow are the three possibilities you may be looking forward to establish your personal finance in a normal way of life as a consumer debt this year:

  • First Time Loan Seeker! First time loan application mostly confused people in term of credit profile, because you don’t have any credit score that could support your loan application to get a better interest rate or even it holds a refusal threat. Don’t worry no credit score doesn’t mean you could not get a personal loan. Consult your banker or a credit officer you may have easy access, you may also consult or apply online without any obligation
  • Bad Credit Loan Seeker! You may be struggling for the improvement of your credit profile. You definitely don’t have possibility to get the other loan easily and above all on low interest rates in relation to other fellow loan applicants having high scores. Again you need a financial consultant, although you better know about your mistakes, which became the cause of your poor credit history. Your financial consultant will also highlight other factors which even you don’t know or come up with the mistakes of the credit machinery and above all your financial consultant better knows how he could accomplish your goal with the companies hidden favors which empower credit officer to benefit the right person for the right loan. There are lot of lenders you can find online who are willing to approve your loan applications without over burden your monthly repayments.
  • Efficient Repayment Seeker! You may be looking for a personalized personal loan including mortgage check up in the new year to make sure you have the best repayment strategy for meeting your financial goals to ensure that your payment structure results in to maximum principal reduction and your credit card balances are transferred to a lower interest rate. You may consult your personal loan and mortgage lender to ensure to make it more efficient and economical. For all those who have more loans that they are paying back separately and wanted to go into more efficient repayment structure that also results into their time and money saving, debt consolidation is an ideal and economical way to achieve your financial goals.

From all of us at eLoan Canada, we wish you and your family a very happy new year that will bring all of your wishes come to life with full social and financial support with great creditability.

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Posted in Credit, Debt, Finance, Mortgages | 1 Comment »

What’s The Difference Between An Open Mortgage And A Closed Mortgage?

Saturday, November 15th, 2008

You may have heard about open mortgages or closed mortgages, and are wondering what’s the difference between both.

An open mortgage typically allows the borrower to pre-pay all of mortgage, beside renew or refinance at any time before maturity. This also means that you can switch your lenders at any time you wish. The catch is that this flexibility to pay back the mortgage whenever you like usually comes with a higher interest rate.

An open mortgage may be an ideal solution for those who know they are receiving a large sum such as an inheritance and want to put this money onto their mortgage, or are intending to sell their home in the near future. Open mortgages can also be a good choice for those whose income will vary over time, such as self-employed individuals who will exceed the pay down allowance permitted on a closed mortgage.  .

A closed mortgage typically allows you to prepay a limited amount each year without a penalty, usually between 15 to 25% of the original principal amount. This type of mortgage may also include the ability to increase the size of your regular payments, up to double in many cases.

The basic advantage of a closed mortgage is that they almost always have a better rate compared to an open mortgage, although it pays to understand the pre-payment provisions in the fine print. Looking to pay off your debt early and have a closed mortgage? This type of mortgage may be renegotiated or refinanced in most cases with a pre-payment penalty.

The details can vary from lender to lender, so its better to talk to a mortgage broker early on, when you’re starting to think about what financing is best for you. Your Mortgage Consultant will have the latest info on the product choices, rates, and recent interest rate trend in Canadian financial market.

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How Mortgage Insurance Protects Your Investment and Secure Your Family’s Financial Future

Wednesday, October 15th, 2008

Your financial picture changes significantly when you get a new mortgage. The purchase of a home is a major financial commitment, and how best to safeguard your investment and your family’s interests is something you have to consider.

There are various insurance companies working in Canada that offers life, critical illness and disability protection specifically designed for mortgage borrowers. You may find the insurance company by your self or you may ask your mortgage broker. Your mortgage insurance covers great number of benefits as bellow:

  • Mortgage Life Protection can cover you, your partner, or up to four individuals party to the mortgage, so that in the event of a death the mortgage is paid off, along with any discharge fees.  Mortgage Life coverage is not the only life insurance you will need, but it is perfectly suited to your needs as a mortgage borrower.
  • Mortgage Critical Illness Protection also pays off your outstanding mortgage balance in the event you are diagnosed with severe illnesses such as heart attack, stroke or life threatening situations like hepatitis and cancer. This coverage provides you and your loved ones with a LIVING benefit.
  • Mortgage Disability Protection makes the monthly mortgage payments up to $2,000, should you suffer an injury or accident and are prevented from performing the normal duties of your job.

Protect your investment and family’s financial future with mortgage insurance! Ask your mortgage consultant or insurance companies providing mortgage insurance any question you may have, there may some conditions apply.

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Posted in Mortgages | 1 Comment »

Creating an Energy Smart Home

Wednesday, October 1st, 2008

Treat your house as an energy system, with many parts working together. Unfortunately, lots of houses don’t work very efficiently.  Lower utility bills, improved comfort and fewer greenhouse gas emissions. These are the benefits that an energy-efficient home provides. While many energy efficiency decisions are made during the construction of your home, there are several ways you can reduce your energy costs.  The Canada Mortgage and Housing Corporation (CMHC) provides some insights into making your home more energy smart:

Air Conditioning
Air conditioners, especially individual unit models, are often a home’s largest electricity user. The best way to lower energy use for air conditioning is to reduce the need for it. The “green” building movement promotes several cost-saving ways of cooling a home, including the use of drapes and curtains to control the amount of solar radiation entering a home, as well as the use of plants for shading it.

Building Envelope
Tightening the Thermal Envelope! A house’s thermal envelope includes every item that separates the inside from the outside that may consist its roof, walls, floors, windows and doors. A house leakage makes it not even drafty but uncomfortable too, and in other words it lets precious energy dollars escape. Older homes are more likely to lose heat through the building envelope than newer ones. There are, however, cost-effective ways of reducing heat loss in older buildings. For example, applying weather-stripping and caulking around windows and doorways reduces infiltration. Adding more insulation will also improve the efficiency of the building envelope. You can install most of these energy-saving improvements at low cost with materials available from any hardware store. This approach means a substantial investment but the resulting savings are large.

Lighting
Lighting accounts for 15 per cent of all energy consumed in a residence. A cost-effective way of decreasing such costs, without compromising safety, is to replace incandescent with fluorescent lights. Fluorescent lights produce four times as much light per watt, last ten times longer, and cost one-third as much to operate.

Heating and Ventilation
Depending on location and type of fuel used, heating can be the largest component of energy use in your home. When deciding whether replacing an old furnace with a new high efficiency model is worth the capital investment, a life cycle cost analysis must be made.

Efficient Appliances
Choosing High Efficiency Appliances! Replacing old appliances with more energy efficient ones should be decided on the basis of a life cycle cost analysis. When it’s time to retire an old appliance, you can typically replace it with a new model that uses only half the energy. According to CMHC, replacing the typical outdated refrigerator will pay for itself in six years; that is in half or less than the expected life of the refrigerator. Become a energy-smart consumer to shop for efficiency and financial advantages.

Hot Water Systems
Hot water systems can account for 15 per cent of total residential energy use. The most cost-effective way to decrease this energy use is to install energy efficient flow controls in showers and sinks, which reduce the volume of water without reducing water pressure.

Creating and building an energy smart home has become a great necessity in these days; you could not even save great amount of money over your monthly expenses and utility bills by improving and maintaining your home but also increase the value of your property.

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Posted in Finance, Mortgages | 1 Comment »

Canadian Mortgage Strategy Choosing Between Fixed or Variable Mortgage Rates

Monday, September 15th, 2008

New mortgage application has an incredible number of options from which to choose. However, with shifting interest rates, it can be a confusing time for those looking to acquire, renew or refinance a mortgage. Getting the most advantageous mortgage strategy is important and this challenging task cant be solve with anybody else accept you. This is the question you should ask yourself: Do I want the stability of a fixed rate mortgage or am I comfortable with the potential risks and rewards of a variable rate mortgage?

A variable mortgage rates allow the borrower to take advantage of low interest rates where the interest rate is calculated on an ongoing basis at prime minus a set percentage where prime is the base rate that banks use in pricing loans to their most creditworthy customers.  A variable rate mortgage can pose challenges for some, such as financially stretched first-time buyers who may not be able to handle an increase in their mortgage payments that would usually accompany a significant rise in interest rates, and there are those who simply prefer the greater sense of stability that a five to ten year fixed term mortgage can provide.

Faced with today’s competitive mortgage market and a changing interest rate environment, credit consumers need access to the timely and quality information through a recognized and trustworthy source. Which can help them decide while looking carefully at their current situation and personal goals to determine which mortgage strategy will best meet their individual needs. Moreover, you should try to get an answer yourself after consulting your mortgage broker whether a fixed or variable mortgage is best for you.

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Posted in Debt, Mortgages | 8 Comments »

Immigration Loans Program For New and Recent Immigrant to Canada

Monday, September 1st, 2008

Discover Personal Loan and Mortgage Products Designed for You

Canada welcomes thousands of new immigrants every year and Government of Canada along with various financial institutions is ready to help you make the change. You are definitely feeling burden and challenging in need to be in control of your money, stay in touch with home, and feel informed and secure. eLoan Canada has gathered some important information here to help make your transition a little easier.

It’s a common myth that if you are not a Canadian citizen or landed immigrant, you do not have right and qualify for a mortgage loan. The good news is that you will find various lenders offer mortgage products specifically tailored to the needs of non-landed immigrants. While most financial institutions traditionally have insisted that new immigrants provide a down payment of at least 20% to 35%, there are now lenders who offer qualifying new immigrants or those who have been transferred to Canada by an employer, mortgages which feature a much lower down payment.

According to Citizenship and Immigration Canada (CIC), The Immigration Loans Program provides refugees and protected persons with loans to cover the costs of medical examinations conducted abroad, transportation to Canada, travel documents, housing rental, telephone service deposits and the purchase of work tools, etc., on an easy to follow credit process, for more information and general enquiry you may call on the phone number: 1 888-242-2100

Moreover, if you are planning to settle in Canada you may consult with the CIC about the credit possibilities that may fit your own situation prior to the arrival and if you are a recent immigrant to Canada, contact loan and mortgage consultant to get advice on how you may qualify for personal loan and mortgage products aimed at new immigrants.

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Posted in Banking, Credit, Finance, Mortgages | 3 Comments »

What is a Rate Hold and When to Lock in Mortgage Rate

Saturday, August 16th, 2008

I know when I got my first client pre-approved for a mortgage loan, I was very excited to think about the very first sales incentive which I were going to receive, but all excitement was gone away when I knew that I could not get the money till it was not paid by the client. Yeah, because that pre-approval got a grace period which is known as Rate Hold and it may take 120 days to close the mortgage deal. Anyway rate hold if held my reward for so long to come to me but on the other hand lock in mortgage rate gave my client a best possible interest rate option with a plenty of time to search for an ideal home of his choice to start his mortgage loan, and I felt really happy with my clients satisfaction which passes all the excuses.

A shifting interest rate environment may cause an unpredictable situation that lead anyone to think about to adopt an option of mortgage rate hold or lock in mortgage rate, to get the best rate possible while looking for the best home of his or her choice, while pre-approval means that you’ll know how much you can afford to spend on the home.

There are various ways to enquire and apply for your mortgage pre-approval loan with a rate hold option like you may apply through a bank, a mortgage company or through a mortgage broker, choice is yours anyone of these can assist you in providing the best financing options for your borrowing need. If fixed mortgage rates rise during your rate hold period that is up to 4 months or 120 days, you’ll be already protected by the rate hold and if it falls, you’ll have access to the lower rate the competitive interest rate to adopt for your mortgage loan. Moreover, with a lock in mortgage rate you’ll have peace of mind about your mortgage rate while you look for the home that suits you the best.

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New Canadian Mortgage Rules Announced

Friday, August 1st, 2008

According to The Department of Finance’s announcement it has been changed some of the rules for the new high-ratio mortgages in Canada, which will take effect from October 15, 2008. According to the new mortgage policy, new mortgages with government-backed mortgage insurance policies whether issued by the Canada Mortgage and Housing Corporation or private insurers, the maximum amortization period will be 35 years, and the minimum down payment will be five per cent (borrowers may borrow their five per cent down payment, but it will not be insured).

Like most of the mortgage companies have already start working their maximum amortization to 35 years for new mortgages and so do the borrower start thinking their own way, where is a possibility the mortgage application mostly effected before implication date or after? but mortgage client is out in the market due to the favorable temperature and an interest rate which is already fixed by the Bank of Canada, and who knows what it’ll be after the October 15.

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Posted in Mortgages | 3 Comments »

What Type of Borrower Are You? How Debtors Think..

Monday, June 16th, 2008

 Borrowing Needs For Various Types of Borrowers

Personal loan have got so many questions that a human mind carry to be asked one after another to satisfy him or herself, before taking the loan and even after too, until it is not fully paid off. This borrower behavior is most likely affected when getting a mortgage because of its size and value that is far bigger than other personal loans because its most probably needed once in a life, that’s why it felt that borrower behavior will reflect from the questions stated bellow are mostly mortgage loan borrower. Anyway, please don’t consider these questions as an ultimate list but it provides as a good beginning.

  1. May I obliged with some fluctuation in payments?
  2. Do I need the lowest payment possible?
  3. Do I want to know it will not change my monthly payment for the whole loan term or mortgage term?
  4. Do I want to pay back my mortgage loan as soon as possible?
  5. How much I afford to pay as a down payment for the mortgage without disturbing my budget?
  6. Am I looking for the payment savings in term of an insurance exemption?
  7. Are there any credit issues about which I will need to provide documentation?
  8. What will happens if I were jobless, do I have to worry about payment break?

There are plenty of other questions may arise in your mind according to your personal circumstances and situations, these considerations need to be work out with your mortgage consultant and most probably he or she will discuss any other question which might not be in your present question’s list but looking at your curiosity and worries too, an intelligent mortgage consultant will definitely want to offer you expert advice, because your Mortgage consultant has access to an impressive array of mortgage choices.

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Consumer Mortgage Tips Canada! How to Pay Your Mortgage Off Faster?

Tuesday, April 1st, 2008

10 Tips for Paying Off Your Home Mortgage Faster

For most the Canadian homeowners, paying off their mortgage as early as possible has a top priority. Paying down extra principal in the early years of your mortgage loan by whatever means possible can reduce the life of your mortgage, and dramatically lower the interest you’ll pay throughout your mortgage loan life.

Any additional payment you make on your mortgage (also known as a pre-payment) will save you a lot of money in interest. The interest portion of your payment is determined by the outstanding balance of your mortgage (principal and interest). As the outstanding balance diminishes, less of your payment goes towards interest and more comes off the balance. Here are a few home mortgage tips and ways on how to pay off sooner while minimize your mortgage costs:

  1. Increasing the amount of your payments annually to the maximum you can afford
    The upside is that most lenders will allow you to reduce it again to the previous level if it turns out to be too great a burden or your circumstances change.
  2. Prepayments provide you great return over your investment
    If you pay an average 6.5% mortgage interest rate towards your mortgage payment, for each $1,000 reduction of your mortgage principal results in $65 savings after tax cash annually.
  3. Utilize your RRSP driven tax rebate as a mortgage prepayment method
    Even if you can only prepay annually, make sure tax refunds are set aside for paying down your mortgage. Many Canadians borrow (at prime) to buy an RRSP to ensure the maximum rebate. When applied to the mortgage principal, this refund is a “gift that keeps on giving”. Combining the refund with the tax-free interest earned on the RRSP over the subsequent years will quickly outpace the short-term interest costs of the RRSP loan.
  4. Accelerated bi-weekly payment option
    Increase the frequency of your mortgage payments; make accelerated bi-weekly payments to get a free principal reduction equivalent to one full mortgage payment every year.
  5. Make use of double-up privileges wherever possible
    Tell yourself that you will “skip-a-payment” whenever necessary.. then skip only when you absolutely must.
  6. Round your mortgage payments up
    By adding even a nominal amount of dollar value, say $10 per payment, the amount of interest you are saving will be unbelievable, and the extra money is relatively painless to part with.
  7. Making lump-sum payments whenever possible
    By decreasing the principal of the mortgage, your payments will not be allocated as much to interest, thereby accelerating the end of your mortgage.
  8. Keeping the same payments when mortgage rates have fallen down
    If the payment amount has not been a problem so far, then keep it the same, thereby paying down the principal faster.
  9. Raise the mortgage payments in line with increased income on an after-tax basis
    If your income increases, don’t keep your mortgage payments the same. Although the disposable income may be fun to spend on unnecessary luxuries in the short-term, the long-term benefits of being mortgage free faster a far outweighs the short-term sacrifice.
  10. Paying extra on your payment dates
    Most lenders will allow you to make additional payments on your mortgage, sometimes referred to as “double-up” payments. These extra amounts are applied to the principal only and reduce your mortgage balance, which helps you pay your mortgage off faster.

The faster you reduce the outstanding balance on your mortgage, the more you will save in interest charges. Since pre-payment policies vary between institutions to institutions and types of mortgages, you should consult your mortgage agreement for complete knowledge about the availability of the pre-payment options for you. These are some of the consumer mortgage tips specifically written for the Canadian home mortgage market but could be equally workable for any other country in general as well.

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Posted in Mortgages | 3 Comments »

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