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With the current record-low interest rates, borrowers and homeowners find it more beneficial than ever to refinance. Even with a reduction of half a percent, Refinancing could save you thousands over the life of your term!

With the lower monthly payments and increased savings over time, even the smallest drop in your mortgage rate can be felt almost instantly. Depending on the size of your mortgage, Refinancing can free up hundreds of extra dollars every month to not only alleviate financial stresses but also make your payments easier to manage. 

While the instant savings is a great reason to refinance, the advantage comes from what you can do with those savings. Many homeowners find that Refinancing has helped them with much-needed home repairs or renovations, even business investments! Every dollar you save is one less that you need to pay the bank, and if you choose to invest, the combined savings and extra investment income could mean tens of thousands added to your portfolio.

As the months go by, and the equity in your home grows, you become eligible for a Home Equity Loan. Like Refinancing, you can tap into your equity to unlock funds for all of the above reasons, but at much lower rates. For example, if you take out a Home Equity Loan to upgrade your home, by the time you have paid it back, your home will have generally gone up in value because of it.

Again, there are many compelling reasons to take advantage of refinancing your mortgage. Everything from home repairs to monthly mortgage payments could be costing you more the longer you wait to get them done. There is no time like the present to start doing today what will benefit you tomorrow. 

Don’t worry; you won't be doing this alone. Either call today or Apply Online for a free consultation. One of the mortgage experts at Canadalend will walk you through the entire process and answer any questions you may have around mortgage refinancing and the equity available in your home.

What Is a Private Mortgage?

In Toronto, and across Ontario, it is not unusual to find traditional mortgage lenders – like banks and credit unions – reserving the best products and rates for clients with high credit scores and significant household income. Fortunately, private lenders can provide alternative mortgage solutions to help borrowers who do not necessarily meet those strict, qualifying standards.

Private mortgages can be provided by investment corporations or individuals that are no associated with a traditional bank. Unlike a conventional mortgage, private mortgages are short-term, interest only products. Homeowners aren’t expected to pay down the mortgage principal, but rather make monthly interest payments.

In Ontario, and across Canada, private lenders are not subject to the same regulations as the Bank of Canada. This allows the lenders to create their own qualifying standards and focus on the applicant’s assets rather than their credit or income.

Private lenders will still require a lot of the same information that a bank would need – such as income documents or credit information – however, this is typically just to determine the applicants mortgage rate and not for qualification purposes.

When to opt For a Private Mortgage?

Generally speaking, private lending is considered a great mortgage solution once you’ve been turned away by a traditional bank or financial institution. Due to a heightened level of risk associated with lending to borrowers who have lower credit scores, interest rates are slightly higher with private lending.

However, if you look a little deeper, there are many reasons (beyond a low credit score) why a private mortgage can be an attractive alternative for you.

1. You are looking to take out equity from your home and a HELOC from your bank is not enough
2. Your application has been rejected by the bank
3. You may have a lower credit score
4. You are self-employed and cannot fully verify your income
5. You may be new to Canada and lack a financial history
6. You are in the market to purchase an unconventional property
7. Time-sensitive situations
8. You only need a short-term loan

Private Mortgages in Toronto

Owning property in Toronto and the GTA provides a distinct advantage when looking to gain financing through a private lender – they typically prefer to lend in urban areas that carry higher real estate values than rural areas and small towns.

On top of that, urban areas like Toronto and the GTA have many more private lenders in comparison to the smaller Canadian cities or towns, which provides the borrower with many options, products, and rates to compare.

Simply put, the experts at Canadalend have access to a much larger pool banks, alternative, and private lenders. This allows us to find the best possible product at the best possible rate for your unique situation – unlike banks and traditional lenders who can only sell you their specific products.

After a free consultation with one of our qualified private mortgage specialists, we will be able to explain – in simple and clear terms - all the factors that determine the amount of money that you can access. For more information call Canadalend.com today or better yet, Apply Online and one of our specialists will contact you!

A home can be a great place to live as well as a valuable asset. Being one of the larger investments one can make, if you are in need of cash, your home can be used to secure funds for a range of financial situations. This is usually done by homeowners looking to take out a home equity loan or refinancing their current mortgage.

What is a Home Equity Loan?
A Home Equity Loan can also be seen as a second mortgage. These are great when you are looking to update your home through renovations or pay off outstanding high-interest debts from credits cards or car loans.

In order to be eligible for a home equity loan, you need to have paid down some of your mortgage. The difference between the appraised value and the amount left on the mortgage make up your home equity. Even if you just started paying down your mortgage, you could have a few thousand dollars of equity available.

Why a Home Equity Loan?
Home Equity Loans have very low interest rates compared to other unsecured loans. In most cases, it would cheaper to get one for your next car rather than financing through the actual dealership. If you are stuck paying high-interest credit cards, using a Home Equity Loan to consolidate will not only get the debt paid quicker, you could save thousands in interest.

What Does It Mean to Refinance Your Home?
By Refinancing your mortgage, you are essentially negotiating a new loan – usually with better rates and terms – to pay off your existing mortgage.  

Why Refinance Your Home?
There are several reasons why someone would want to refinance their home.

• To make the payments easier. If you are able to get a better interest rate, your monthly payments drop.
• To change the terms of the loan. For example, a mortgage term can last up to 30 years. If you wanted to pay it off sooner, you could refinance to a 15-year term at better rates.

How Should You Choose?
The best way to sort out your options is to speak to a licensed mortgage professional from Canadalend.
He or she can talk to you about your options and what your payments are going to look like so that you can make an informed decision that works best for your situation.

For more information call Canadalend.com today or better yet, Apply Online and one of our Agents will contact you!

Over the years, home equity lines of credit have quickly become one of the more popular ways that homeowners leverage the value of their homes. However, when borrowing against your home it is beneficial to be more cautious around what you spend that money on – for instance, it might not be best to spend a HELOC on vacations, or new home electronics. But that leaves the question, what should homeowners use a HELOC for?

1) Home Improvements

Using a HELOC to make improvements to the backyard or inside the home can be a great way to increase the overall value of the property. Installing a pool, renovating the kitchen or bathroom, even adding a deck can be a daunting task to finance. Using a home equity line of credit can be just the thing you need to kickstart that project. Once completed, these home improvements usually add more equity to your home.

2) Emergency Funds

Financial experts say that it is a good idea to have about six months’ worth of expenses put away should an emergency arise. The equity in your home can be used as a low-interest alternative to credit cards and other high-interest loans when these unforeseen events happen. Having a HELOC already in place can give you peace of mind in an otherwise chaotic time.

3) Refinancing Debt

If you have multiple high-interest debts, getting a home equity line of credit can be a great way to consolidate at a much lower interest rate. These forms of debt are unsecured, and as such can come with rates as high as 20%! However, since a HELOC is secured against your home, the lower interest can potentially save you thousands, as well as make the number of monthly payments much more manageable.

4) Long Term Investments

Your HELOC isn’t just available to use on your home. Some homeowners choose to invest in stocks or even the real estate market. The risks associated with those investments could be high, so please do your homework! If you are looking to invest into something a little riskier with a higher return, there are many other options available to you.

5) Paying For Education

If you have a child (or several!) that are going to college or university, or even thinking about going back yourself, a HELOC could be a great way to cover tuition or any supplementary income during that time. Since the rates are relatively low, a HELOC can be a better option over a traditional school loan or credit card.

For more information contact the Mortgage Experts at Canadalend today at 1-866 iCAN LEND or better yet, Apply Online and one of our Agents will call you!