Applying for Home Loans, All Mortgage Information

Refinance

There are many reasons for refinancing your mortgage, some of the most common are:

Financial emergencies – you need access to money and cannot qualify for other types of loans
Lowering monthly payments – your financial circumstances have changed and you can no longer afford to make your current monthly payment
Lowering your borrowing rate – interest rates have decreased and/or your credit rating has improved since you committed to your last mortgage and you want to see if you will save money by refinancing at a lower rate
Borrowing to invest – you have built up equity in your home and you would like to access some of it for other investments
Renovating – you want to use some of the equity in your home to upgrade it or build an extension
Debt consolidation – you want to lower your monthly payments and pay down debt faster by paying off that high interest credit card, line-of-credit, and loan debt.

Initial Consultation

The initial consultation with your mortgage consultant will help define your needs and expectations and whether or not this is the right time to refinance. During this meeting our mortgage consultants will discuss:

Changes to your financial situation
Your new goals
How much you want to refinance for
When you need the funds by
The cost of refinancing transactions
Alternative financing options such as second mortgages or unsecured lending.

Determining Value

Refinancing may sound like a good idea, but there can be a lot of hidden expenses. Your mortgage consultant will work with you to create a detailed report outlining all the benefits and costs of refinancing. The following information will be considered in the report:

Type of product and the term you currently have
Your current interest rate
The rate you can get now
The cost of penalty for leaving your current lender
Interest on non-mortgage debt that you are currently carrying
Other legal appraisal costs
Any other fees associated with refinancing

Application

The next step in the refinancing process is filling out an application form. With the information provided in your application our consultants are able to perform a credit check as well as prepare a mortgage solution to fit both your short-term and long-term goals. To complete the application process our consultants will need you to be able to provide the following:

Current financial information for applicants including employment, assets and liabilities
Detailed information regarding current mortgage (current mortgage statement, or the original mortgage contract)

Submission to Lender

Once you and your mortgage consultant have chosen the best fit mortgage lender and product, an application is submitted.

Confirmation of Receipt by Lender

After the lender receives your application, it will:

Conduct an initial review of your application
Issue a rate guarantee for anywhere between 90 and 180 days

NOTE: Some lenders have a best rate guarantee clause whereby the best rate between approval date and closing date will be given automatically

Issue a list of conditions
Your mortgage consultant submits all necessary documentation to the selected lender

Mortgage Trend Review

From the time the lender confirms receipt until the closing date, the consultant will examine market trends and the interest rate environment and advise you if a better fit product or a better rate is available, and whether a submission to a different lender is appropriate.

Financing

Once your mortgage consultant has submitted all the documentation to the lender, these steps are followed:

Lender sends to the funds to your selected lawyer
Your lawyer finalizes the financing by paying off the existing mortgage with funds from the new mortgage
You are given a cheque for the balance of funds (the amount of equity taken out)

Continuous Service

Your new mortgage is in place and you are one step closer to reaching your financial dreams, but that doesn't mean your relationship with your mortgage consultant is over. Our mortgage consultants continue to work with you for the lifetime of your mortgage. They can assist you with any of the following: