EXPERT ADVICE
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Owning your own home is a goal held by many Ontarians. Having the flexibility of knowing that any changes that you want to make to your home as well as the freedom of knowing those changes can be made at any time is an attractive feature of homeownership. The pride of homeownership is closely tied to a home purchase and over time a house becomes a home.
What if your credit is damaged? For those that have credit issues and do not meet the stringent criteria set forth by the banks, turning to private lenders that are experienced and well established throughout the Province is a good option.
The real estate market in Ontario has baffled real estate professionals for close to two years now. While the Province has been in the grips of a global pandemic and by all measures the housing market should have taken a hit, instead we are seeing appreciation numbers not seen for years prior to Covid-19.
To calculate the overall balance between what income is coming in monthly minus other household debt payments, mortgage brokers and lenders will assess both the Debt Servicing Ratio (GDS) and Total Debt Servicing Ratio (TDS).
Handling multiple household debts is one such larger financial issue. Any decision that you make today to try to pay down this debt or any new debt you wish to take on can have the potential to hold long-term economic effects either positive or negative.
In the beginning of July 2021, The Canadian Mortgage and Housing Corporation (CMHC) announced that the changes that were made a year earlier would be reversed to the original numbers.
The Covid-19 pandemic has left many homeowners with questions regarding their mortgage arrangements. Homeowners may have concerns resulting from increased difficulty making monthly mortgage payments while trying to also pay all associated housing costs and any other ongoing monthly debt payments.
Another option open to homeowners with significant equity built in their homes is a Home Equity Line of Credit (HELOC). This second mortgage option acts like a revolving line of credit enabling funds to be available as the balance is paid off, a homeowner only needs to pay the monthly interest on the line of credit.
Regardless of the type of mortgage financing that works best for your immediate financial needs, you can properly prepare for your meeting with a mortgage broker by being aware of what your broker should be addressing.
Throughout Ontario, private lenders are well-established and experienced in negotiating private secured second (and sometimes third) mortgage options for existing homeowners with poor credit or high household debt ratios.
