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A bank or an independent broker: where should Canadians looking for their first mortgage or those looking to refinance turn? Maybe it’s due to the enormity of the money that they’re hoping someone will lend them, but many people find applying for a mortgage or refinancing to be intimidating and stressful. However, it doesn’t have to be.

Big banks may be the obvious choice, but you have to wonder, when it comes to getting a competitive rate, will the banks be looking out for your best interest, or theirs? Do you want to put your trust in a big bank, or would you rather use the services of a qualified independent brokerage like Canadalend.com?

The choice seems pretty obvious.

Once you have settled on an independent brokerage, your next task is to find an agent. It’s not as easy as it seems. The Internet may be the new yellow pages, but that doesn’t mean you call the first name that pops up in Yahoo! or Google.

When it comes to getting a mortgage, loan, or refinancing, there are a number of qualities you should consider.

Licensed, Personal Attention and Service – Regardless of which province you live in, Canadalend.com agents are licensed professionals. Some so-called bank specialists, on the other hand, are not licensed and have no formal training.

Because you’re potentially borrowing hundreds of thousands of dollars, it’s more than a little reassuring to know that your Canadalend.com agent is current with Canadian mortgage financing rules and regulations.

For those who are not comfortable with negotiating or aren’t fully aware of all the different financial products and services, a Canadalend.com agent’s specialized skills and knowledge can make the entire process stress-free.

As a result, a Canadalend.com agent can help you with all aspects of a mortgage, from how much you can afford to borrow, to determining the best mortgage product, to finding ways for you to save money and pay off your mortgage or loan faster.

A Canadalend.com agent can save you time and energy with their personalized, licensed service. Because they’re independent, they can also offer you flexible hours; banks and credit unions, on the other hand…

Products – There are a lot of different financial products and services out there. For the average Canadian, it’s virtually impossible to keep track of everything, especially if you don’t keep up on the economy, interest rates, and mortgage rules and regulations.

Because Canadalend.com agents are licensed professionals and independent, they can shop multiple Canadian lenders and banks, looking for the best products at the best terms and rates. While a Canadalend.com agent has access to a huge number of Canadian home loan products, a bank or credit union only has access to their own institutional products—and will try to sell you one of their products, even if it doesn’t best suit your needs.

Because Canadalend.com agents are independent, you are assured that they will give you impartial advice.

Peace of Mind – There are a lot of brokerage firms to choose from, but no matter how many agents you talk to, you’ll quickly discover that Canadalend.com’s independent, licensed agents are the best in the field.

Make sure you feel comfortable with the agent you’re doing business with. Can they answer all of your questions, and does she or he act in a professional manner?

Be careful of high-pressure sales tactics; you are not under any obligation to continue on with the process. Never agree to a loan you do not understand. If you’re feeling pressured to buy a product, walk away.

At Canadalend.com, we want to make qualifying for a mortgage as stress-free as possible. Your Canadalend.com agent will negotiate on your behalf, getting you the best mortgage rate possible. They will also help you find the best way to pay off your loan quickly and reduce interest payments.

What do you need to look for in a mortgage broker? If you want a mortgage broker that embodies the principles, integrity, and ethics of his or her craft, then look no further than a Canadalend.com agent.

To learn more about Canadalend.com, visit www.canadalend.com .

Finding the perfect place to call home and settling in can be fun!

Buying your first home is a really big step. And it’s probably going to be the biggest purchase you ever make. While looking for a home is exciting, in this tight real estate market, it’s important to know what kind of mortgage you qualify for before you start the hunt. If you fall in love with a house, chances are someone else has, too. If you aren’t pre-approved for a mortgage, you could lose your dream home to someone who already is.

Understanding the financial side of getting a mortgage can be overwhelming and daunting. There are a lot of things that need to be figured out: how much you qualify for, interest rates, mortgage term (15 years, 20 years, 25 years), payment plans (weekly, bi-weekly, monthly), whether you want a variable or fixed mortgage, and the list goes on.

It can be hard for first-time home buyers to know where to start. After all, a lot of different factors go into determining what kind of mortgage you qualify for. It depends on your income, debt, and credit history. By shopping around and asking questions, you could end up saving yourself tens of thousands of dollars over the term of your mortgage.

Do you go to a bank to get your mortgage? If you do, are you getting the best interest rate? Are the terms and conditions best suited to your economic situation and lifestyle? Or are the banks just going to push their own products and services?

Better yet, do you use a mortgage brokerage like Canadalend.com, whose independent, licensed agents draw from all available mortgage products and provide you with impartial advice?

For the most part, all first-time home buyers want the same things—to maximize what they can borrow, to minimize their interest charges, and to pay off their mortgage as quickly as possible. When it comes to getting your first mortgage, the real difference comes in service and communication.

If you want to find out what kind of house you can afford; compare mortgage terms, rates, and amounts; or figure out how to save thousands by increasing your monthly mortgage payment, try Canadalend.com’s wide variety of interactive financial calculators.

Canadalend.com’s professional agents love working with first-time home buyers, helping them get the mortgage best suited to meet their financial needs and getting them into their dream home.

Canadalend.com’s licensed agents make it easy for first-time buyers to choose the right mortgage. Whether you need a big or small, fixed or variable mortgage, Canadalend.com agents work with all the major banks and lending institutions to get you approved in 24 hours.

A Canadalend.com agent is more than just the perfect resource for first-time buyers looking to get an approved mortgage fast! Your Canadalend.com agent can continue to be a great support, helping answer your questions and providing you with advice or referrals. At Canadalend.com, our goal is to help you achieve your short- and long-term financial goals.

What should first-time buyers look for when it comes to getting a mortgage? The nearest independent, licensed Canadalend.com agent!

Searching for the right mortgage lender and terms can be an arduous process filled with questions and options. Most people aren’t inherently equipped with the knowledge required to navigate the road to mortgage approval. Applicants need to ask the right questions to an experienced mortgage professional.

Some of the common questions borrowers ask revolve around credit profiles, types of mortgages and what are some of the hidden costs and fees.

Credit Profiles

Most applicants focus on their credit score, thinking it will help determine the loan amount. In fact, an entire credit profile could impact an application, which includes payment history, debt load, and unpaid debts.  This profile helps paint a clear portrait of the applicant’s financial history and situation. If the profile is strong it can reassure the lender that a borrower can handle the loan.

Credit scores do matter to lenders but it is not the only aspect that can determine a mortgage approval or rejection. 

Different Types of Mortgages

There are a lot of different types of mortgages and it can get a bit confusing for first-time borrowers or even the seasoned pros.

Mortgage types include but are not limited to:

• Traditional mortgages (20% down payment, loan-to-value ratio)
• High-ratio mortgages
• Fixed rate mortgages
• Variable rate mortgages
• Convertible mortgages
• Open mortgages

Each mortgage has its own stipulations and terms so sit down with a mortgage specialist to determine which is best for your situation.

Costs and Fees

Mortgages contain a lot of fine print which can balloon the cost of your home. One of the costs is insurance that the borrower must purchase if their down payment is less than 20%. Other costs include taxes, processing fees (usually $200-300), lawyer fees and interest adjustment.

Borrowers need to be aware of all the costs and fees and make sure they are covered in their budget.

The best way to approach a mortgage application is carefully, thoroughly and with knowledge. Contact us to learn more about your mortgage options. We can walk you through the entire process and answer all your questions.

In Canada, over the last few decades, there have been slow but steady changes to industry and employment norms. Where people work, and who they work for, is changing. In the decade leading up to 2017, there was a steady increase in the number of tax returns that included self-employment income. This reporting change was particularly notable for women, who are increasingly taking on sole responsibility for mortgages and property ownership.

While some of the self-employment earnings increase is citizens incorporating a side hustle (crafting, repairs, skills, etc.) into their traditional earnings, it is also indicative of a global trend towards a more liberated model for employment. Working from home is becoming more common as is freelancing and contract work as a sole model of earnings.

While freelancing can sound enticing, working at home, being your own boss, choosing the hours you work, one of the most common hurdles is adapting to fluctuating income, rather than a predictable monthly salary. This can be difficult enough with day-to-day considerations such as food and bills but getting a mortgage can become an uphill struggle.

The Challenges

After the global financial turmoil, the Office of the Superintendent of Financial Institutions implemented and developed the B-20 guidelines, settling on a finalized version in 2017. While the restrictions that were implemented were designed to try to prevent a repetition of the problems that lead to the financial crash, they have also placed the self-employed worker within an undesirable mortgage framework.

Recent predictions of 45% self-employment in Canada have not yet come to pass but are undoubtedly part of the near future. So, as the proportion of citizens that are making some, or all, of their income via self-employment rises, more of them will start to fall afoul of the increased stringency the guideline enforces.

Prior to the B20 guideline, income was part of the approval factor for mortgages, but credit score also played a larger role. Most institutions would give a basic form of approval to anyone with a provable income and a credit rating of 675 or over. Large institutional lenders no longer see entrepreneurs as a sound financial opportunity, Instead, rating them as risky (almost by default) based more on their provable income rather than their credit score. Another factor in self-employed income is the expensing of items against tax which further muddies the perception of an individual’s income.

So, even where an independent worker might be able to prove they have a regular income, perhaps as a result of retainer agreements, they can still be viewed as undesirable borrowers by banks.

How to Prepare

Despite the changes brought in by B-20, there are some steps that the self-employed can undertake to improve their position when approaching a lender regarding a mortgage.

Along with income and credit score, a lender will likely look at your tax status to see if you owe a sum to the taxman. This check usually comes in the form of a review of your standard T1 general tax return and your business and professional activities statement as issued by Revenue Canada. If you do owe taxes, this may be considered as debt you are carrying, so wherever possible make sure you are up to date with your reporting and your payments before starting the loan process.

In order to “win over” a lender, be prepared to provide more information than normal, particularly business-related paperwork such as tax statuses for the business, contracts or agreements that might indicate future earnings, and a variety of other documents at the lender’s discretion. Be prepared by making sure you have as much easy access to your personal and professional financial documents as possible.

Finding a Lender

One of the upsides for self-employed borrowers is the diversity of lenders. Since the millennium, the financial market in Canada has grown and developed beyond the core banking institutions of the last century. A plurality of lenders also means a greater number of products available to borrowers. Products that take into account the financial status of the borrower as well as their aims.

All those products need assessing though, they need to pass your criteria as much as you pass theirs. Will I be protected if my earnings vary? Will I have to make a larger down payment? Will I have a shorter amortization period? Will I pay a higher interest rate?

At Canadalend.com our experts are knowledgeable, helpful and, most importantly, independent. Our experts have decades of knowledge and access to hundreds of lenders and their products. Unlike a mortgage officer at a large financial institution, they are skilled at finding the product that matches your needs, rather than selling you a specific product for a commission. Whether or not that product is right for you.

Contact Canadalend.com today to learn more about how we can help find the right product for you.