Mortgages Made Easy Blog

Our brokers post interesting news, tips, and industry updates every week.
APR
06

Buyer beware: A mortgage pre-approval from your bank is not a guarantee

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Anyone who is considering purchasing a home should get pre-approved for their mortgage. A mortgage pre-approval confirms the amount you qualify to borrow and protects you from rate increases for up to 120 days. If you’re considering going to your bank to get pre-approved, rather than using a broker, you should know that there are important details your banker may not tell you up front.

A pre-approval at your bank is not an approval 

A few weeks ago, a couple came to us because the mortgage amount they were pre-approved for by their bank was not the same amount they were actually loaned. They went to buy a home under the impression they would be loaned the amount they were pre-approved for, and when they weren’t, they were stuck owing a large sum of money on a tight deadline. In this case, we had to secure the client a private mortgage, which is an interest-only loan, to pay for the remainder of their home. 

It’s important for homebuyers to remember that a mortgage pre-approval confirms your rate and the amount you qualify for but does not guarantee the lender will loan you that amount. Mortgage approval will depend on your documentation and proof of income.

Your stated income vs. your proven income

When you file for a pre-approval with your bank, your banker will ask you to state your income, and then they take that information at face-value. What they may not tell you is that lenders have to look at your proven income (line 150 on your tax return) to approve your mortgage.

If you’re in any of the following situations, your bank may pre-approve you for your mortgage based on your “stated income”, but then later reject you due to lack of proof or other reasons:

  • You are a business owner or self-employed
  • You are paid by commission/tips
  • You rely on pension/support money
  • You are working two jobs
  • You are looking to take out a second mortgage
  • You are a newcomer to Canada
  • You are on probation

At MortgagesMadeEasy.com, your mortgage pre-approval is treated the same way as if you were purchasing a home. We ask the tough questions up front about your income and documentation so the amount you are pre-approved for is the same amount you are loaned. This will save you from embarrassment, stress, and legal issues when you go to pay for your home.

Mortgages are all we do—let us get you ready to buy your first home

Unlike your banker, mortgages are all we do. We are not trying to sell you a specific mortgage product. Our brokers are here to show you all the best mortgage options you qualify for, and explain the fine print, so you can make smart decisions.

We want your mortgage to go as smoothly as possible. Let us walk you through the process and explain what kind of documentation you will need to get approved for your mortgage. Call us at 613-563-3447 or use our contact form.

And when you are ready to apply for your mortgage pre-approval, use our secure online form. We’ll get back to you within hours with the best mortgage in the market for your unique situation.

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MAR
07

Save money on your mortgage: You may qualify for a special promotion offer

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Before buying a home, you would explore all your options. Your mortgage should be no different. If you only mortgage shop with one or two major banks, you may miss your opportunity to find a better mortgage with better rates, terms and options. 

When you apply for your mortgage through MortgagesMadeEasy.com, you gain access to several mortgage options from multiple lenders—not just the big banks. You also get insider access to our lenders' limited time offers and unpublished promotions. These unlisted, quick closing specials can help you save money upfront and over the course of your mortgage.

Whether you're qualifying for your first home, renewing your mortgage, or taking out equity, our experienced brokers can help you make the most informed decision and get the best mortgage for your situation. We connect you to the best deals and give you the information you need to feel comfortable and confident with your mortgage decision.

Just starting your search? The rates on MortgagesMadeEasy.com are always up-to-date. But no matter where you are in the process, call us, apply online, or book a free consultation to get your questions answered and learn about quick closing specials. Because the more you know, the more you can save, and the closer you get to making your dreams come true.

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FEB
08

Shopping for a new-build home this winter? Make your mortgage experience stress-free

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If you’re considering hiring a contractor to a build a new homeor want to purchase a completed new homethe first step is to get pre-approved for your mortgage.

A pre-approval confirms to the builder that you qualify for funds to pay for the home. It also confirms your price range, so you can shop for homes without any unexpected surprises.

 At MortgagesMadeEasy.com, we make it easy to get pre-approved for your mortgage. You can apply with us online or book a free consultation and we will tell you everything you need to make the process go as smooth as possible. For example, we will tell you upfront if we see any issues that may prevent you from getting pre-approved for your mortgage. We will also let you know what documentation you will need once you have a firm offer in place.

 When you get pre-approved for your mortgage, you are under no obligation to accept the offer, but it will be there if you need it. We have lenders who will hold your new-build mortgage offer for up to 6–12 months. If rates go up during that time period, your rate will not be affectedand if rates go down, we will get you the lower rate.

We want to make your mortgage experience stress-free! Have questions? Wondering what kind of documentation you will need before putting down a deposit? Call a MortgagesMadeEasy.com broker at 613-563-3447 or use our contact form.

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JAN
05

Find out if a private mortgage is right for you

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Under Canada’s new ‘stress test’ mortgage rules (implemented January 1st, 2018), many homebuyers may no longer qualify for a traditional mortgage. Fortunately, with the help of MortgagesMadeEasy.com, you still have options to help you get the property of your dreams, through alternative lenders or a private mortgage.

What is a private mortgage?

Compared to more conventional mortgage types, private mortgages are a unique financing option for the thousands of mortgage applications that do not fall within the banks’ parameters. Private mortgages are typically short-term (1–3 years), interest-only loans, secured through an individual investor or institution—instead of through a bank or chartered financial institution. This means you get fast financing, skipping the red tape and lengthy approval process of big banks. 

More importantly, private mortgage approval is based on the property’s value, not on your credit score or income. That makes private mortgages a viable option for people with a below average credit rating, little down payment, or those who can’t provide traditional proof of income. 

Why use a private mortgage?

A private mortgage may be right for you if you are in any of the following situations:

  • You’ve had trouble getting approved by a bank or traditional lender because of:
    • Bruised credit history
    • Un-confirmable income (self-employed, contract, etc.)
    • Little down payment
    • Too many properties in your portfolio
  • You’re looking to buy an unconventional property such as a farm, garage, or multi-unit commercial property.
  • You can’t wait for the banks’ approval process and need fast financing.
  • You are looking to take out a second mortgage.
  • You prefer a short-term loan.
  • You are looking to resell or build.

If you were turned down by the banks for any of the above-mentioned reasons, a private mortgage may be the answer.

Securing a private mortgage through MortgagesMadeEasy.com

Your MortgagesMadeEasy.com broker can help you decide if a private mortgage is right for you and your situation. Moreover, you’ll save time and hassle searching elsewhere for a private lender with access to our large, ‘in-house’, private mortgage fund. Our team of experts connects you to the best lenders, lowest rates, and quick approvals. 

We have experience processing hundreds of unique private mortgages on both 1st and 2nd residential and commercial properties, such as:

  • Almost any type of property: farms, restaurants, garages, vacant land, rentals, commercial, condominiums, and multi-units
  • Construction mortgages (both residential and commercial)
  • Interim financing
  • Tax arrears (personal or property), recent bankruptcy, or foreclosures
  • Credit proposals or refinance for debt consolidation

Worried about qualifying under the new mortgage rules? You can rest easy knowing we are available to answer all your questions, and can quickly get quotes for your deal with our ‘in-house’ fund.

If you have questions about private mortgages, the new rules, or want to discuss your options, contact your MortgagesMadeEasy.com broker today. Call 613-563-3447 or use our contact form.

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DEC
08

Canada’s new mortgage rules start January 1, 2018: Here’s what you need to know

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As of January 1st, 2018, passing a “stress test” will be a requirement for all insured and uninsured mortgages. Previously, only insured borrowers (those with less than 20% as a down payment) had to undergo the stress test. 

The stress test is designed to simulate a borrower’s financial situation if they had to pay back their loan at the posted average rate. To pass the stress test, homebuyers will now have to qualify on the greater of the Bank of Canada benchmark rate (currently 4.89%) or their actual rate +2.00%. For those with variable-rate mortgages, the Bank of Canada recently announced that their prime interest rate will stay the same, so the majority of lenders’ prime rate is 3.20%. 

For some homebuyers, these new mortgage rules could mean they no longer qualify for a mortgage, or do not qualify to buy the home they really want. It’s important for homebuyers to lock down their mortgage now—before the rules change—to ensure they get a great deal on their dream home.

If you’re thinking about buying a home, don’t wait until the new year to apply for your mortgage. Apply for a pre-approved mortgage with us before December 15th, 2017. Our lender will give you a quote under the current rules (on approved credit), and hold your deal until April 1st, 2018. Those who apply for a pre-approved mortgage are under no obligation to accept the lender’s offer.

Apply now for your no-obligation, pre-approved mortgage through our online form: https://www.mortgagesmadeeasy.com/apply/9-site-elements/mortgage-application-1/mortgage-application/84-mortgage-app

Have questions? Wondering how Canada’s new mortgage rules will impact you? Call a MortgagesMadeEasy.com broker at 613-563-3447 or use our contact form.

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Contact Us

  • Ottawa-Carleton Mortgage Inc
    381 Richmond Road Ottawa,
    Ontario K2A 0E7
  • Phone: 613-563-3447
    (24 hours)
  • Fax: 613-563-3195

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