Getting the right mortgage
You're off to a great start with a company that offers expertise, in-depth industry insight, exceptional resources, and exclusive access to a suite of innovative mortgage products. We look forward to being your personal mortgage team and drawing up an individual plan that is right for you, for whatever your needs and situation:
Buying a first home
When you’re thinking of buying, it’s wise to begin by talking with a mortgage planner - right from the start - to understand how much mortgage you can manage, and to explore both traditional and innovative mortgage options.
Four main factors that lenders use to determine the credit worthiness of borrowers are:
1. Property (i.e., what is the quality of the security?)
2. Income (i.e., can the borrowers afford to pay their mortgage payments?)
3. Downpayment (i.e., what if the borrowers do not pay back the mortgage?)
4. Credit History (i.e., how well have the borrowers paid their debts in the past?)
We can explain how each factor will affect your purchasing power.
Buying a next home or property
Congratulations, you are entering into another real estate transaction. Along with that excitement, your next purchase may involve:
1) refinancing an existing property in order to purchase a second,
2) porting and increasing a mortgage from one property to the next,
3) arranging inter-alia or bridge mortgage financing (there are differences between these two) to pay for a newly purchased property before an existing property is sold, or
4) balancing a portfolio of real estate mortgages in order to take advantage of property appreciation or rental cashflow.
Glen Kelleway has custom-built analytical tools that Kelleway Mortgage Architects use to plug in numbers to run different scenarios for real estate property purchases. By phone or through your own web-accessed computer screen, he can describe and show you how different next purchases will effect your mortgage planning and financial outcomes.
Self-employed; no income verification
We understand business owners because we’re business owners, too. What’s more, we have a long list of institutional and private lenders that offer excellent mortgage options for self-employed Canadians. You don’t fit in the neat box at the bank? That’s okay; we don’t have boxes, we have solutions.
Low payments; long amortizations or interest only
Sometimes, it makes good financial sense to keep your mortgage payments as low as possible to buy the home you want or to free up funds for investment or other uses. The good news is that there are several options available to help you lower your mortgage payments.
Investing in property
Investment properties - particularly smaller, residential real estate - are now accessible to many average Canadians. And as any homeowner will confirm, real estate has been one of the most attractive investment categories in Canada for the past decade.
Canadians are purchasing investment properties in addition to their homes to:
1) Generate return on investment
2) Generate a retirement nest egg
3) Provide housing for their post-secondary-age children
4) Create capital gains from improving "fixer-upper" properties and then selling them at a profit
5) Climb the home-owner ladder by including rental units attached to, or within, the primary residence
When managing their own rental properties, some of our BC clients have found the following useful.
Real estate investments vary according to type and client preferences. Some of our clients enjoy owning and managing their own rental properties. Others prefer to include real estate investments in their financial portfolios but dislike hands-on property management. Regardless of the path you wish to take, Kelleway Mortgage Architects can help you build a mortgage plan to map your way.
More Canadians than ever before are now spending quality time in their own vacation property. Cottages and chalets are now providing family memories for many average Canadians, who are taking advantage of innovative new mortgages that put these getaway homes within reach!
Review before you Renew, you may want to Refinance with a different Lender.
Times change and the mortgage commitment you originally signed with your current lender may not be the best for you now for a variety of reasons.
Before your mortgage term expires, your current mortgage lender will most likely send you a renewal agreement to extend the mortgage loan, possibly on revised terms as to the repayments of the principal or interest rate. BE AWARE THAT THIS IS NOT AN AUTOMATIC PROCESS AND YOU ARE NOT OBLIGATED TO RENEW WITH THE SAME LENDER. You are, however, obligated to fully repay your mortgage.
Our best advice is to let us at Kelleway Mortgage Architects review your mortgage commitment and renewal notice up to six months (or more) before the mortgage maturity or expiry date occurs. If the lender is giving you a good deal on your renewal agreement and it fits with your current life circumstances and goals, we will advise you to stick with that lender - even if it means our foregoing a commission on your refinancing. In doing so, we hope to keep lifelong clients coming back to us for trusted advice and future mortgage financing. If, however, we believe we can get you a better mortgage deal that will save you time and money then we will advise you to refinance under a different mortgage product or with a different lender. Either way, your refinancing decision will be an informed one - so why make it alone when we can help you mortgage it right!
Mortgages generally qualify as good debt: they are usually available at the lowest possible rates, and they represent a good investment in a (generally) appreciating asset. Bad debt saddles you with high interest rates - often on depreciating assets. But if you have equity in your home, then you have an opportunity to turn bad debt to good debt - by refinancing and rolling high-interest debt into your mortgage for big interest savings. Technically, refinancing means that you will first discharge a current mortgage and all registered encumbrances and then arrange a new mortgage.
Tapping into home equity
Maybe it just needs some new landscaping, an extra wing for your growing family, an expanded kitchen, or a swimming pool in the backyard! A record number of Canadians have taken advantage of the historic low mortgage rates and rising real estate values and have tapped into their home equity.
Construction Mortgage (Residential)
Perhaps you love the neighbourhood and the lot but do not like the house – or don’t like the house anymore. Or, you want to buy bare land and build. For new or re-built construction, a mortgage can be arranged to advance funds at pre-determined stages, according to the amount of work completed. An agreement is set between a builder and lender that establishes the terms of an agreement (the loan amount, rate, method of drawing funds and conditions for advancing). Getting expert advice on your mortgage plan can be just as crucial to a successfully finished project as finding the right builder for the job.
Often a new mortgage may be the best way to manage all of your debts. Moving your high-interest debt into a lower-rate mortgage is a great way to save on your overall interest costs, improve your cash flow, and begin the process of improving your credit rating. It's great news that the right mortgage can help establish your reputation for credit-worthiness.
CREDIT TIP - Apply for a Secured Credit Card
If you have never had a credit card, have been denied on a credit card application, have a bruised credit history, or want to closely manage the amount spent using credit, there is an alternative. It is called a "Secured Credit Card" and unlike the more common "unsecured" credit card, you are required to make a deposit with the bank equal to your credit limit. The secured credit card issuer (i.e., the bank) normally reports to the credit bureaus so you will be establishing, or taking steps to re-establish, your credit history.
If you wish to apply for a secured credit card, here is one we recommend.
Peoples Trust MasterCard
Find out how much you can afford before you go house hunting.
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We have long lasting partnerships with a vast network of over 50 lending institutions, including major banks, credit unions, trusts and other national and regional lenders. Our negotiating power and this wealth of product choice, including innovative new mortgages that are changing the industry, ensures the best mortgage and rate for your specific financial situation.
What does such expertise and access to a vast financial network cost? It costs you nothing. There are no arranging fees (oac). Instead, the lender we decide on together pays compensation for the services and solution provided, and only after your mortgage has closed. And since business is built primarily through referrals from satisfied customers, your positive mortgage experience is essential for my ongoing business growth.
This isn't just about rates
While it is important to keep close tabs on competitive rates, there are other critical factors in mortgage design: like features and options, market trends, and your long-term goals. You need a mortgage plan that is a custom fit for you, and a planner who keeps in touch with you during your mortgage years. You deserve dedicated attention.
Your mortgage is a big decision and a powerful financial tool. I look forward to helping you achieve your financial and homeownership goals.