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Welcome to Mortgage Architects Professionals!

First Home

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BANK VS. BROKER

Want choice? Don't use a bank, use a broker!

What is the best mortgage?One of the greatest advantages of using a mortgage broker is getting access to over 50 lenders. A bank will only offer you access to their products, while a mortgage broker can offer you more choices through multiple lenders. With this vast product selection, brokers help homebuyers and owners get the best mortgage for their needs.

What is the best mortgage?

  1. The right rate
  2. The right mortgage privileges

When selecting the right lender your broker will consider:

  • Term
  • Rate - variable vs. fixed
  • Payment flexibility
  • Pre-payment privileges
  • Restrictions, fees and penalties
  • Mortgage portability or assumability
  • Qualifying with no income verification (self-employed)

Focusing on a rock-bottom rate can mean higher fees and penalties with more restrictive terms when you want to move, refinance or use your mortgage for a debt consolidation. A mortgage broker will give you a sound evaluation of product choices and together will help you decide what option suits your need.

Get the best deal and the best advice possible when renewing your mortgage - contact an MA broker today.

First Home

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MORTGAGE RATE

Other Mortgage Factors To Consider Besides "Low Rates"

Other Mortgage Factors To Consider Besides When shopping for a mortgage it’s hard to get “low rates” out of your head. Of course you would like the lowest rate you can get, but focusing solely on one aspect of your mortgage is a common mistake many people make. Many mortgages with low rates often have a catch, knowing what to look for can save you a ton of money in the long run.

Rather than focusing entirely on rates, take a look at things such as pre-payment privileges and mortgage portability to really save you money on your mortgage.

Pre-payment privileges allow you to pay a certain amount of money toward your mortgage on top of your current monthly payment without having to pay a pre-payment charge. These payments can be in the form of lump sums or increased monthly payments. Having this option will allow you to pay down your principal mortgage amount, the lower your principal is the lower your interest will be.

Mortgage portability allows you to transfer your mortgage over to a new property without having to pay a penalty. The benefit of this option is the ability to lock into a low interest rate by carrying over the exact terms you currently have on your mortgage.

Knowing what to look for in your commitment can help you negotiate, allowing more flexibility throughout your term. Have a strategy and know the conditions of your mortgage to get the most out of your money.

Get the best deal and the best advice possible when renewing your mortgage - contact an MA broker today.

First Home

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FIXED VS. VARIABLE RATE MORTGAGE

Fixed-rate vs. a variable-rate mortgage: choosing which one is right for you can be a difficult decision.

Fixed-rate vs. a variable-rate mortgage: choosing which one is right for you can be a difficult decision Historically low interest rates have prompted many Canadians to opt for variable-rate mortgages. Variable rates float up and down with your bank’s prime rate and are often a better deal on paper: in recent year they've carried a lower interest rate (0.50% lower or more, in some cases). But if the Bank of Canada raises its overnight lending rate and your bank increases its prime rate in lockstep, that variable rate will climb. Not the case for a fixed-rate mortgage - its interest rate stays the same for a pre-determined amount of time. There are pros and cons to both options.

Lenders have begun to raise their mortgage rates slightly. The increase is small: variable-rate mortgages have inched up just 0.10% - 0.20% in most cases, but even a small rate increase like this means many mortgage holders saw their monthly costs increase. Still, the cost of a variable-rate mortgage remains cheaper than fixed rate.

So what's the best options for you, right now?

The case for variable-rate mortgages

  • It's cheaper: interest rates remain lower for variable-rate mortgages. If you're looking for the best possible deal on a mortgage, you'll find it with a floating interest rate
  • Historically, variable-rate mortgages have been much better deals. A York University study found homeowners with variable-rate mortgages saved $22,000 in interest over 15 years compared to those with fixed rates
  • Rate increases will happen gradually. If the Bank of Canada raises its lending rate and your bank follows suit, increases will be slow to minimize its effect on the economy

The case for fixed-rate mortgages

  • It's more stable: you know exactly how much interest you'll be paying over the term, so it's easier to budget
  • Rates now sit at a historic low. It's not likely they will go much lower, so chances are you are locking in at the best possible time
  • Interest rates have fluctuated dramatically in the past. In the early 1980s, for example, interest rates topped 20%. Locking in insulates you from those change completely

For anyone with a variable-rate mortgage who'd like to shield themselves from future rate increases, the option of ‘locking in’ your mortgage is there. Most lenders will allow you to switch your variable-rate mortgage to a fixed-rate option. Mortgage Architects Professionals brokers are there to provide advice and help the switch go smoothly.

If you're going to lock in, do it now

The cost of fixed-rate mortgages could rise another 0.60 - 0.70% (60 to 70 basis points) in the near future, TD Bank economist Diana Petramala told The Globe and Mail. This would be a reaction to the U.S. central bank raising its interest rate for the first time in a decade (a move that would affect the Canadian bond market, and your bank’s financial position as a result). If that happens, as it is widely expected to, Canadians should prepare for rates to rise.

What you need to know

Locking in may come with some extra costs and restrictions. Here are a few things to be aware of:

  • You may have to pay a fee to switch to a fixed rate
  • You may have to wait a certain amount of time before you’re able to lock in
  • Your new mortgage may come with restrictions on refinancing

Make sure to get all the details from your lender in writing before you lock in your rate.

Get personal advice and make sure 'locking in' goes smoothly, contact an MA Professionals broker today

Are you looking to invest in property? If you like, we can get one of our mortgage experts to tell you exactly how much you can afford to borrow, which is the best mortgage for you or how much they could save you right now if you have an existing mortgage

First Home

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COLLATERAL CHARGE MORTGAGES

A different kind of mortgage with unique pros and cons: find out if it’s right for you

A different kind of mortgage with unique pros and cons: find out if it’s right for youA collateral charge mortgage is a very different kettle of fish; unlike a traditional mortgage, a collateral mortgage makes it easier to borrow against the property you’re buying without refinancing. The main advantage for many people is access to a home equity line of credit: the bank can ‘re-advance’ you cash after closing with your mortgage as collateral. This doesn’t require refinancing and you don’t have to pay a lawyer. Unlike a traditional mortgage, you can also get a collateral charge mortgage worth more than the current value of your home, 125% of its value in some cases. That’s the amount you can borrow against.

Let’s break it down. Say you’re buying a home worth $250,000. You make a 20% down payment of $50,000 and get a traditional mortgage for the remaining $200,000. The registered home value is still $250,000, but if you opt for a collateral charge mortgage instead you could end up with a boosted registered home value courtesy of your bank. If your bank registers your home value at 125%, that would mean $312,500 on the books. You can borrow up to 80% of this value ($250,000 in this case) minus what you still owe on the mortgage ($200,000). The end result - you get a line of credit worth $50,000.

That may sound good, but there are downsides to choosing a collateral charge mortgage over a traditional one. For starters, the mortgage is non-transferable. It can’t be moved to a new lender without paying hefty legal fees, even when your mortgage term is up. This takes some of your bargaining ability off the table; your lender knows if you don’t like the interest rate it’s offering, it’s going to cost you a lot of money to move.

Collateral charge mortgages allow lenders to change your interest rate after closing (for example, if you miss a payment). Your lender can also increase your loan amount and use your mortgage payment to pay down other debts you owe (if you default on payments). These things don’t happen in a traditional mortgage.

You should also be aware having a collateral mortgage means you may have more debt on paper than you do in reality (because your mortgage has been registered for an inflated amount). Good if you are borrowing against your mortgage, bad if you’re trying to secure a loan from another lender.

If you are in good financial position and you need access to cash for home improvements, business investments etc., having a collateral mortgage can be an easy way to get your hands on capital while buying your new home at the same time. It’s certainly not for everyone, so be sure to go over the pros and cons in detail before you opt for a collateral charge over a traditional mortgage.

Wondering if a collateral charge mortgage is for you and what options are out there? Contact an MA broker today.

Mortgage News»

Mortgage News Box

Q4 2016 Bank Earnings – Mortgage Morsels

Friday, December 9, 2016

Another bank earnings season is in the bag. It was a quarter where Canada’s Big 6 banks addressed analysts about the changing regulatory landscape. There was also a sharper focus on uninsured mortgage portfolios. National Bank analyst Peter Routledge addressed the issue in a recent note to clients: “With uninsured mortgages driving an increasing portion of overall mortgage and loan growth…the consequences of a decline in housing prices—most notably in the Toronto and Vancouver markets—weighs more heavily with each passing quarter.” As usual, we’ve picked through the Big Banks’ quarterly earnings reports, presentations and conference calls, and compiled all the mortgage-related goodies here. Notable tidbits are highlighted

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Up Your Digital Game

Tuesday, December 6, 2016

 “There is not digital strategy, only strategy in a digital world.” Andrew Lo, COO at Kanetix Ltd., shared that maxim at last week’s MPC National Conference. His message: It’s time for brokers and lenders to stop thinking of customer experience online as being distinct from customer experience in general. With the net being embedded in most of our lives, “strategy” and “digital strategy” are virtually the same thing.   “I am sure mortgages are ripe for disruption,” Lo said at the event. The mortgage process is full of frustration, and the job of brokers and lenders is to “convert people from

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National Bank Shutters Broker Division

Thursday, December 1, 2016

When it rains it pours. On the heels of Ottawa’s broker-unfriendly insurance rules comes word that National Bank will no longer sell its branded mortgages through brokers. National Bank had 2.5% share of the broker market as of last quarter, according to D+H. Brokers represented about a quarter of its mortgage production. This now leaves Scotiabank and TD as the last Big 6 banks to distribute through brokers. But there’s some good news: National will ramp up its funding of Paradigm Quest, which is a huge vote of confidence in the mortgage process outsourcing firm. This will generate billions in new mortgage originations for

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Ottawa’s Gift to Lenders: Some Numbers

Wednesday, November 30, 2016

Happily, it’s only taken six hours to update 183 rates and 25 lenders’ policies following today’s default insurance rule changes. I reckon I’ll be done combing through the rate sheets and policy updates by the weekend, just in time to question the grey matter of those responsible for this absurdity. Here’s some of the results so far of the DoF’s mortgage insurance ban. These numbers are not exhaustive. They’re just from the banks, monolines and credit unions this author commonly uses: Typical new rate surcharge on refinances: 15 bps Number of broker lenders who have terminated prime refinances altogether: 6 Typical new rate surcharge on amortizations over 25 years:

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Mortgage Career: Verico Homeguard Funding Ltd.

Tuesday, November 29, 2016

Company: Verico Homeguard Funding Ltd. Position: Mortgage Underwriter (Full time, salary + bonus) Location: Newmarket, ON Apply to: info@homeguardfunding.com Mortgage Underwriter (Full time, salary + bonus incentive) Experience Required: 2 years+ experience in the mortgage industry, willing to train the right candidate Licences Required: Agent Licence considered an asset but not required   The underwriter will be responsible for: Packaging applications originated by brokers and agents to our lender partners Preparing deal paperwork Reviewing loan documentation Working with clients, lenders and lawyers to ensure the timely closing of mortgage transactions   Homeguard Funding Ltd. is a very well established and

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What’s New With Lenders & Suppliers

Tuesday, November 29, 2016

Mortgage Professionals Canada’s National Conference has wrapped up in Vancouver. It’s the nation’s largest gathering of mortgage brokers and lenders. One of the best MPC events is perennially the Expo. It’s kind of like Christmas for mortgage brokers because you always discover new products and services to improve your revenue. On that note, here’s some of the news we heard on the show floor: B2B Bank: Is now the only national lender left who still offers a 35-year amortization. Bridgewater Bank: Is reportedly considering re-entering the prime lending market. Eclipse: Is one of the only B-lenders with its own MIC; it’s doing 85% LTV bundles again. Home Trust: Will be announcing a new

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Mortgage Career: PoloLoans Inc.

Friday, November 25, 2016

Company: PoloLoans Inc. Positions: Mortgage Agent Years of Experience Required: One Licences/Registrations required? Yes – Mortgage Agent Location: Collingwood, ON Apply to: Email info@brmlending.com or phone 1-877-662-5190 Mortgage Agent Individual will be working in a team environment, mentoring and leading our clients in the area of lines of credit, mortgages and debt financing in order to give our clients the opportunity to achieve important life goals. High quality candidates for this role will have strong, relevant experience and capabilities. They will have demonstrated experience in dealing with complex issues, and the intellect and judgement to develop appropriate solutions.   We

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Mauris & Appelberg Join the Mortgage Hall of Fame

Thursday, November 24, 2016

On Monday night, two leaders in our business will receive one of the highest honours in Canada’s mortgage industry. Both will join an exclusive group of 40 individuals who can call themselves Mortgage Hall of Fame inductees. Gary Mauris, co-founder and President & CEO of Dominion Lending Centres and Art Appelberg, president of Northwood Mortgages, will be inducted next week at an awards ceremony during Mortgage Professionals Canada’s 2016 Mortgage Forum. Both men have each contributed immensely to the growth of Canada’s mortgage industry. Here’s a closer look at their storied careers, and thoughts from each of them on what they learned along the way. *******

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Mortgage Career: CanWise Financial

Wednesday, November 23, 2016

Company: CanWise Financial Positions: 2 Mortgage Agents & 1 Documentation Officer Years of Experience Required: 2 Licences/Registrations required? No, but would be considered as an asset. Start Date: ASAP Location: Downtown Toronto, ON Apply to: Email human resource: hr@canwise.com Owned and operated by ratehub.ca, CanWise Financial is in a unique position to continue its rapid growth in Canada. We are looking for 2 experienced mortgage professionals to work in a mortgage agent/sales role out of our downtown Toronto office. All leads will be provided. You will sell directly to consumers with the help of document fulfillment specialists, and our industry

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Lenders Demand Cheaper Connectivity

Monday, November 21, 2016

Lenders pay a toll to get applications from mortgage brokers. The long-established toll keepers are D+H and Marlborough Stirling. These two technology companies get a slice of every deal lenders receive through their online platforms. But lenders are growing weary of this expense, which is reportedly as much as 5-6 basis points per funded mortgage in the case of D+H (i.e., up to $180 on a $300,000 mortgage). Lenders resent having to pay more for bigger deals when D+H’s processing costs are much the same regardless of deal size. So they’re taking matters into their own hands. The talk out there is that a consortium of lenders is making

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