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Most people who buy a home in the Greater Toronto Area don’t have enough money saved up to pay it off up front. That’s why the vast majority of people need a mortgage in Ontario. With a mortgage, you borrow an agreed upon amount of money for a set period of time. Most Canadians get a mortgage with an amortization period of 25 years and a mortgage term of five years. What that means is that it will take 25 years to pay the mortgage off in full, and the current mortgage conditions lasts for five years.

What Are Your End of Mortgage Term Options?

When your mortgage term comes to an end, you have two options, renew with your current lender or renew with a new lender. It’s an important decision to make, and it could end up saving or costing you thousands of dollars in interest payments. That’s why you should never just let your mortgage automatically renew.

More than a quarter (27%) of Canadians with mortgage terms coming up for renewal allow their mortgages to renew automatically, meaning they miss out on any and every opportunity to save money.

Renewing Your Mortgage Term with Your Current Lender

Before deciding on what you should do, you need to sit down and reassess your financial situation and financial needs. If you’re thinking of renewing with your current lender, determine what the interest rate will be and if you want to increase your mortgage payments to save on interest. You might also want to find out if you can consolidate other debt you might have into your new mortgage term.

Renewing Your Mortgage Term with a New Lender

You may have gotten a mortgage with one particular lender, but it’s important to remember, you’re in control of your mortgage at renewal time. If you’re not happy with the bank or current lender, find a lender you are going to be happy with.

Find a lender that offers the rates and conditions that best suit your needs. Keep in mind, when you renew with a new lender you’ll need to approve your application, just like the bank did when it gave you your first mortgage.

At the same time, just because you get a first mortgage doesn’t mean you’ll automatically qualify when you renew with a new lender. It’s possible your financial situation has changed; perhaps you have more debt, make less money than before, or your credit rating has been hit.

New lenders might think you’re too much at risk for defaulting and not give you a mortgage. Most people think they are stuck with their current lender. They’re not. There are a large number of private mortgage lenders in Toronto that specialize in helping homeowners who have been turned down by traditional lenders renew their mortgage term.

When to Start Thinking about Renewing Your Mortgage

Start looking for different rates and terms when there’s around 120 left before the mortgage term ends. Rate guarantees, with traditional banks, means you will get their lowest rate for a set period of time, typically 90 to 120 days. If the rate goes down during that period, you automatically get the best rate.

That said, private lenders might be able to give you a rate guarantee that’s better than the big banks. Staying on top of the end of mortgage term date and knowing your options could end up saving you thousands of dollars over the life of the mortgage.

Canadalend.com, Helping Canadians with End of Mortgage Terms

Before renegotiating or renewing with a new lender, you should consult a mortgage expert at Canadalend.com to determine which is right for you.

The licensed mortgage professionals at Canadalend.com can help you renew your end of mortgage with a new lender or help you break the end of mortgage term early. Why use Canadalend.com? The mortgage specialists at Canadalend.com are independent, which means we have access to hundreds of different lenders; lenders that can help you renew a mortgage at the best rates and terms.

They can also help you find a private lender willing to renew a mortgage if you’ve been turned down by one of the big banks or trust companies.

If your mortgage end of term is coming up or you want to find out what kind of mortgage you qualify for, contact Canadalend.com today or apply online and a Canadalend.com mortgage specialist will set up an appointment at your earliest convenience.

The challenges of having a mortgage extend far beyond just obtaining one in the first place. Monthly mortgage payments are non-negotiable and missing them can quickly put you in arrears. This means you owe money you simply should have paid out already. Tax arrears are similar in that you owe money to the government. However, both situations translate to putting yourself in significant financial trouble.

Mortgage Arrears

With a mortgage, your Ontario lender can take legal action to reclaim their money, pursuing what is called ‘power of sale’. This means you would be evicted from your home and they would sell it in order to get their money. From start to finish, that process could take an approximate period of three months.

Although you would receive any additional profits from the sale, you would incur the applicable power of sale fees and still be left without a home. You may stop the power of sale before it is carried out, but this requires help from a financial expert.

Tax Arrears

With taxes, the Canada Revenue Agency has the right to redirect your tax refunds or tax credit to pay off your debt. They may alternatively take action to garnish your wages, or even seize your property if needed—including your home, which they can sell at auction. You also incur the significant interest rates associated with tax arrears, making it even more unattractive to find yourself in this position.

Avoiding Arrears

Neglecting such significant payments as taxes or mortgage can result in other serious financial issues. When it comes to obtaining any loans, you may be forced to go through only a private lender. However, you may simply be forced to sell your property and pursue major debt solutions.

Obviously, it is best to make payments on your mortgage and taxes as quickly and efficiently as possible. If you find yourself struggling to keep up with these, however, it may be necessary to seek professional assistance from a financial expert. Tax or mortgage arrears are serious and can lead to additional hardship.

A real estate lawyer works to protect his or her clients when they purchase or sell a home, helping to ensure that the transaction is completed well—regardless of which side of the deal they are on. There are many facets of a purchase or sale that real estate lawyers deal with on your behalf so you can rest assured it will go smoothly.

Agreement of Purchase / Agreement of Sale

A real estate lawyer reviews a wide range of legal documents on their clients’ behalves, including the Agreement of Purchase or Agreement of Sale. These items detail the negotiations involved and range from an irrevocability deadline and completion date to matters of Harmonized Sales Tax and a title search.

Title insurance

He or she might also arrange for the client to obtain title insurance. Although this is not required, a real estate lawyer may recommend it to better protect you, the property owner. Coverage includes title issues that affect you from having clear ownership of the home, title fraud, liens that a previous owner may have had, public record or survey errors, a structure that requires removal by interfering with a neighbouring home, and related issues that impact your ability to sell or lease down the road.

Other issues that may arise

Real estate lawyers are also responsible for ensuring that no claims are listed against the home you purchase, as well as checking that property taxes are up-to-date and that you (their client) have a valid title upon closing. Some of their other roles include calculating the land transfer tax due, drawing up the applicable mortgage documents, exchanging legal documents and keys with the seller’s real estate lawyer, plus closing the transaction while ensuring all financial and legal conditions are met.

As a seller, your real estate lawyer also handles potential title issues that occur, prepares the deed to your home, and helps you negotiate the terms and conditions with your buyer. But no matter whether you buy or sell a home, having a professional in your corner is crucial to avoid as many complications as possible.

Owning a home is quite certainly on most people’s minds. But given the current situation of the growing real estate prices in the GTA, this may seem like a pipe dream to many. Purchasing a house for the first time, finding a bigger property, or even simply moving to a more desirable location could be out of reach financially.

Budgeting a large amount for something as significant as a home can be daunting, but here are some tips to help you save up.

Determine how much money you need

Take into account what you can afford to spend on mortgage payments, including potential maintenance fees and various other expenses. If you currently own a property that you will sell before moving, there will be equity from which to take. However, you also need to figure out where to live and the size of the home you need. Where you choose to lay your hat will be a major factor in the cost of your new house and what you need to budget.

Set aside some monthly funds

Tuck away a portion of every pay cheque you receive into a savings account from which you purposefully do not withdraw. Your income (as well as your spouse’s or significant other’s income if the home will be a co-purchase) also plays a significant role in the size of the mortgage you will be able to obtain.

Adjust your lifestyle

Cut back on unnecessary purchases and make some frugal adjustments to your lifestyle, if needed, such as packing lunches and dining at home, and skipping outside entertainment activities for now. This will help you sustain more of the money you earn each month to put towards a new home.

Mortgages are obviously in place because only the illusive one percent can possibly afford buying a home outright. That means the rest of people need to save up for at least the down payment, with enough left over and a steady stream of income to manage monthly payments and other regular bills, such as hydro and utilities. Simply set realistic goals and give yourself some time to make it happen.