The Best Rate Blog

Home Equity Mortgage Solutions

Improve Cash Flow And Lower Your Monthly Payments

Canada faces challenging times with the COVID-19 shutdown and economic upheaval. Having a strategy in place, such as lowering your monthly payments, ensuring you have access to an emergency fund and making sure you are aware of opportunities is an excellent way to make it through this uncertain period. Below are three new mortgage products that help you gain access to the equity you have in your home to improve your cash flow and access to funds.

Product Number 1: A Fully Open Second Mortgage With A Great Rate

To help people get access to funds from the equity in their home without disturbing their first mortgage, one of our lenders has come out with a fully open second mortgage product. With this being an open product, it can be used as a short term measure to help get people through these tough times and can be paid off without a penalty once things get back to normal.

Product Number 2: A Flexible Reverse Mortgage

This home equity mortgage Solution has no age restriction and is equity-based. So income and credit are not crucial to qualify. It is available for Owner Occupied Homes, Rentals and Second Homes. It is designed to be very flexible and can be structured to meet your individual needs and requirements. Unlike traditional reverse mortgages, this product lets you convert at any time to a regular term mortgage. So if you are a business owner or landlord that is struggling, you can create a cash flow from your properties to get you through these challenging times and then convert it to a regular term mortgage once things return to something close to normal.

Product Number 3: Regular Refinance To Pay Off High-Interest Debt

The third product is a regular refinance to pay off high-interest debt and take advantage of the current low mortgage rates. You can also use this home equity mortgage solution to put in place a line of credit so that you have access to funds quickly. This can be used in case of an emergency or if a vital opportunity arises. Over the past four weeks, we have worked with several clients on doing a refinance mortgage. This saved them anywhere from $1000 to $2000 a month just by lowering their monthly payments by paying down high-interest debt while taking advantage of lower mortgage rates. As well we have helped clients put a line of credit in place while they still qualify before they are laid off or retire. This ensures they have access to the equity in their house when they need it most.

At the Best Rate Mortgage Team, we have many years of experience helping all types of clients with their mortgage needs; we can help you find the home equity mortgage Solution that’s right for you!

Be it first time buyers, investors, people who do not fit with the banks, or clients looking for the best mortgage at the best rates.

Have Questions? We’re Happy To Help!

In a few simple steps we can help you with your loan needs! Apply online or contact us today for more information.

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Compare what a Mortgage Broker can offer to what your Bank offers

It is wise when in the market for a mortgage to compare what is being offered by your Bank with what is available through a Mortgage Broker. The Government of Canada, on their web site https://www.canada.ca/en/financial-consumer-agency/services/mortgages/reduce-prepayment-penalties.html  states that it is best to check with a Mortgage Broker with regards to what they can offer.

The four areas you should compare are:

1) Rate:  Once you have the rate your Bank will offer you, contact us to see if we can offer a better rate from one of our over 40 lenders.

  1. Payout Penalties: No one plans to break their mortgage before the term is up but life happens so confirm with your Bank how they calculate the IRD penalty, then call us. The difference could cost you thousands of dollars.

3) Service: Compare the service you receive from your Bank vs a Mortgage Broker. The bank employee works for the Bank and its shareholders, a Mortgage Broker works for you.

4) Expertise:  Buying a home and getting a Mortgage is the biggest investment you will make.  You want to have someone with many years of experience working for you. At the Best Rate Mortgage Team we have over 20 years of experience.

You shop around and compare when you are buying anything online which saves you money and ensures you are making the right buying decision, so it makes sense to do the same when you are in the market for a mortgage.

Contact us anytime with any mortgage questions you may have

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