How Is Your Mortgage Registered

There are two ways to register a mortgage and they differ greatly. It’s important to speak with a Brampton mortgage broker about your registration and understand the options before your meeting.

Standard Charge Mortgage

A standard charge mortgage registration means your title is only registered for the amount you’re mortgaged for. So if you made a downpayment of 25% on a $400,000 house and have only borrowed $300,000 for your mortgage, then your standard charge mortgage is only registered for $300,000.

Unlike the alternative, a standard charge mortgage allows for flexibility to switch lenders upon renewal time, without very large fees. In essence, the lenders have to earn your mortgage again, which puts you in a great position to shop around and get a better rate.

Collateral Charge Mortgage

A collateral charge mortgage registration means your mortgage is registered on the title for more than you are mortgaged for. For the same $300,000 mortgage from the above example you may be registered for up to $400,000. In other words they register the title for more than the closing costs.

Why is collateral charge mortgage registration a poor choice?

When you’re up for renewal, this means you will have hefty legal fees to switch lenders if you find a better deal. Or if you happen to sell your home and close the mortgage before the 25 or 35 term is up, again you’ll be hit with these nasty fees.

Why is it even an option and who offers collateral mortgage registrations?

Mostly the big banks will offer collateral mortgage registrations and it ensures you’ll keep your mortgage with them come renewal time, in order to avoid the legal fees. However they are still able to sell the idea to a few folks who haven’t done their research. And here’s why – they sell it as easy access to your equity, but for the inside scoop contact a trusted Brampton mortgage broker like myself.

Understanding Home Equity: Line of Credit vs Home Equity Loan

As a Toronto & Brampton Mortgage Agent, I get asked a lot of questions when it comes to mortgages. One I recently got was what is better, a line of credit or home equity loan. Read on to find out my answer.

What is a home equity loan?

A home equity loan or also referred to as “ the second mortgage” is a type of loan with a fixed and low-interest rate, which makes it a good source of money. A home equity loan is much easier to include in your budget as the payment is the same for every month.

What is home equity line of credit?

A home equity line of credit (HELOC) and home equity loan are the same in the sense that you will borrow money against your home equity. However, a home equity loan normally gives a total amount at a single time, while a home equity line of credit is the same with a credit card: You will have a definite amount of money for you to borrow and then pay back, and you can get the amount anytime you need it. Therefore, your minimum monthly due varies as a credit line normally has a fluctuating interest rate. It is important to take note the terms in your HELOC as most likely you will have a limited time to use the money.

Which is better?

Appropriating funds against your equity can be helpful in financing any projects that you may have. It is also possible for you to deduct the interest so it will be more inexpensive. So before you decide to for HELOC against a home equity loan, take into considerations the amount of money that you will need and how you’re planning to use the money. Consider the appraisal and closing fees, tax advantages, interest rates and monthly payments as you assess your options.

  • Home equity loan is great for attaining more costly goals, like college tuition fees, remodelling a house and debt consolidation. Due to its fixed payment, it is more practical for individuals with fixed incomes.
  • Home equity line of credit is great for paying for medical expenses, minor home improvement projects and paying bills that will quickly increase if not paid.

If you require a financial help to pay your bills or attain your goals, you can go for low-interest funding. May it be home equity loan or a line of credit, you can utilize the value of your property as a mean to manage your debt and improve or sustain your lifestyle.

If you have any other questions regarding your mortgage in Toronto or Brampton, please contact me and I’d be happy to assist.

What You Didn’t Know About Condo Fees

For those that are condominium owners, you may have decided to own the home that you do because of its size, its proximity to the city, or perhaps not having to deal with the maintenance of a larger house. However, there are some extra fees involved with owning a condo that can be confusing for some owners. Nevermind having to review the condo documents We’ll try to break down those monthly fees to give you a better picture of what you’re paying for.

Not For-Profit

Whereas rent is generally calculated for the investor to make a profit, maintenance fees are inherently not for-profit. They are calculated by taking the cost of running the building as a whole, and then depending on the size of your condo, the percentage of space you take up out of the whole building corresponding to the cost of running the building is the fee that you will pay monthly for maintenance. However, these fees may change year by year according to the building’s annual operating budget.

They Cover Necessities

Depending on the layout of your condo (for example townhouses will often have separate utility meters), the maintenance fees may be covering your utilities, such as water, gas, and electric. Not only that, but the fees will also include things like window cleaning, snow shovelling, housecleaning, gardening, and other necessities. These types of services may be part of the reason you decided to live in a condo, as it can be wonderful to not have to deal with them yourself.

Contingency Fee

Every condo must maintain by law some money set aside, which contributes to your monthly fee, known as a contingency fee. This money set aside can be used for any special costs that occur, or any emergencies as well. For example, if the building needed a new roof, or if there were special repairs needed for the heating, this money would come from the contingency fee. Although this may seem as though it’s another expense out of the many you pay for your condo, in reality the contingency fee is keeping you safe and allowing you to have peace of mind if anything were to happen, and that you would know there are resources available to fix the problems as soon as possible.

Overall, owning a condo can be a great investment, especially if it’s an area that is getting a lot of attention from other investors. However, knowing about what you pay every month and where it goes will help to eradicate any confusion you have, and allow you to enjoy your home!

This post was written by the fine folks at Condo 411 Calgary.

What are condo papers?

 

Before purchasing or investing in a condo or any type of property you are going to want to make sure that what you’re getting into is a safe investment and your money is protected. Buying a condo is like investing in a business, you are going to want to make sure that said business is financially stable and it is a good idea to lend your money to such a venture. You are going to want to conduct a full Calgary condominium document review of the condominium venture to make sure you know what you are getting into.

Now you are probably wondering what condo docs consist of. They include variety of documents from declaration, by-laws, rules/regulations, financial statements, budgets, and minutes from meetings. These are just some of the documents included but condo docs are not limited to just these documents.

The financial statements and budget contain crucial information on the status of the condo building. You are going to want to pay attention to the condo’s reserve funds and operating budget. A reserve fund is used by condominiums for major repairs and improvements to the building, such as windows, roofing, or flooring. A percentage of owners monthly fees should be put in the fund so that the condo can build up their reserves for future repairs. If your prospective condo has a low reserve fund it will require additional fees when a major repair is necessary. The operating budget is what most of your monthly funds goes towards. Experts say that about two-thirds of the operating budget should be used towards expenses. Owners should pay attention to how your condo fees are allocated and if your condo has a 24-hour front desk, swimming pool, or elevator to name a few things, your expenses will add up, therefore leading to higher fees. Owners should keep in mind that the condo association should not be dipping into the reserve fund to pay for basic maintenance such as trash removal, landscaping, or facilities.

Upon review the condo documents, prospective buyers should get in contact with board members or the property to ask some questions such as; are there any upcoming projects planned?; were there any major issues discussed at the last board meeting?; will projects be paid through reserves or special assessment? These are just a couple questions to ask before purchasing a condo. It is always a good idea to have a team of condominium specialists like Condo 411 Calgary who can help review condo documents and reduce risk associated with the transfer of ownership of a condo unit.

Fixed or Variable Mortgage Rate?

There are a few basic types of mortgages. Many of these options should be discussed from an agent like Rakhi Madan in person. But here we’re going to discuss the differences between fixed and variable mortgage rates and why you might choose one type over the other.

First of all, we have to define what each type entails. With a fixed mortgage rate, you’ll be paying the same rate monthly for however long the mortgage lasts, while with a variable rate the rate will be lower for a specified number of months and then change. Depending on the size of the mortgage, you could have initial savings of over a hundred dollars a month–which over a period of sixty months, for example, would mean that you’ve paid at least $6,000 less than you would otherwise.

A variable mortgage rate can have great benefits, but it’s not perfect for everyone. If you can afford to pay the monthly amount for a fixed mortgage that’s you’re considering, you have to really consider the costs associated with the variable option. For instance, the size of your mortgage has an effect on how much you’re actually saving per month. A mortgage of $200,000 on a variable mortgage rate could save you maybe $140 per month, while comparably a $100,000 mortgage will save you $70 a month.

Are the monthly savings significant enough that you should take this option? Keep in mind that risks are involved with variable mortgage rates. This includes the fact that different versions of this mortgage type exists. With some, you will have a fixed rate for 5 years, then the rate will change on a yearly basis afterwards. Some, less common options will have rates that change less often than a year.

A related factor to consider is that after the initial period with a fixed rate ends, the new interest rate will be based on current market conditions. Your mortgage will come with terms stating by how much percentage it can increase by each year after the initial fixed rate as well as by how many percentage points in can increase by in total. A standard example is that your rate could increase by up to 2% in one year but overall the rate cannot end up over 6% higher than what you started with.

You could end up benefitting in the long run or wishing you’d taken a safer route. There’s a lot to think about, and a Toronto mortgage broker can get you on the right track.

Coin Dealers In Fort Myers Florida

Do you have a collection of coins and are looking to make a little bit of money from some of the ones that you no longer need? Or have you found a coin that you believe to be rare but you have no idea of its true value?

If either is the case then you should head down to The Coin and Jewelry Exchange so that you can get your items appraised and find out just how much they will be worth to you. We are an expert Coin dealer Fort Myers that has many years of experience in the industry, which means that you can be sure that you will get an honest appraisal from a trustworthy source.

So why come to use with your coin questions? Here are just a few reasons why we are the perfect solution for you.

We Buy Quick 

We aren’t simply appraisers of the value of coins – we are also massive enthusiasts who want to improve our own stock and offer as many coins to our customers as possible.

This means that we are constantly buying coins to offer to our customers, and will pay cash for any that you bring into our store that we determine to have sufficient value for collectors. Furthermore, we also have a wealth of knowledge at our disposal so in most cases you won’t need to wait for any research to be done before you can start making money from your coin collection.

We Do House Visits 

While we have a dedicated store, which is one of the hallmarks of a truly trustworthy coin dealer, we also recognize that no everybody will be able to make it down to see us, for whatever reason.

This is why we offer a home visiting service where we come to see you so that you can get your collection appraised. Using this service you can see us whenever it is most convenient to you, rather than having to arrange to come and visit us.

We Are Part of the Professional Numismatics Guild 

The biggest problem that many coin dealers face is finding somebody who is trustworthy and can be held accountable for the valuations that they put on various pieces.

As we are members of the Professional Numismatics Guild you can not only guarantee that we have the expertise required to join such a prestigious organization but that we are also held accountable for our business practices, ensuring that you get an honest appraisal at all times.