Spruce Grove Mortgage Broker: Krista Rumberg
 (780) 946-6222   ·    Email

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4 Things You Can Do To Pay Your Mortgage Faster

Although getting a mortgage is exciting as it allows you to become a homeowner, a mortgage is, in fact, a lot of debt. So if you have a mortgage, your goal should be to get rid of it as quickly as possible.

Here are four things you can do to help pay off your mortgage for good!

 

1. Accelerate your payments.

Making the change from monthly payments to accelerated bi-weekly payments is one of the easiest ways you can make a difference to the bottom line of your mortgage. Most people don’t even notice the difference.

A traditional mortgage splits the amount owing to 12 equal monthly payments. Accelerated biweekly is simply taking a regular monthly payment and dividing it in two, but instead of making 24 payments, you make 26. The extra two payments really accelerate the pay down of your mortgage.

2. Increase your regular mortgage payments.

Chances are you have the ability to increase your regular mortgage payment by 10-25%. This is a great option if you have some extra cash flow to spend in your budget. This money will go directly towards paying down the principal amount owing on your mortgage and isn’t a prepayment of interest.

3. Make a lump sum payment.

Depending on your lender and your mortgage product, you should be able to put down anywhere from 10-25% of the original mortgage balance. Some lenders are particular about when you can make these payments, however, if you haven’t taken advantage of a lump sum payment yet this year, you should be eligible.

4. Review your options regularly.

As your mortgage payments are withdrawn from your account on a set schedule, it’s easy to put your mortgage payments on auto-pilot, especially if you have opted for a longer term. This is why an annual review is a good idea, there may be opportunities to refinance and lower your interest rate.

The point of reviewing your mortgage annually is that you are conscious about making decisions regarding your mortgage and that you ensure you’ve always got the best mortgage for you!

Questions on your mortgage, or want to compare your mortgage to what is currently available? Please email me.
Mortgage Broker Spruce GroveMortgage Broker Spruce Grove

What Documents Do You Need To Apply For A Mortgage?

Home buying is exciting, but also can be a lot of work. There are a lot of factors in play when thinking about purchasing a home, from location, how many bedrooms, finding a realtor, mortgage broker and lawyer.

Within all of this there is some documents and information needed as well. In order to apply for a mortgage we need to be able to figure out your income and your down payment.It can sometimes seem like a lot so here are a couple of tips for organizing:

  • Set up a place where you can have all the documents go. This could be an accordion file folder labelled with each item or simply a inbox on your desk where it gets placed and ready to go.
  • For any letters you need, ask employers/family for them now, as sometimes they need a bit more than a days notice to pull together a letter.
  • Print off our Mortgage documents checklist and keep it with your paperwork, checking off items as you have them.

With this check list you can now begin to pull together all of your documents and start the four steps to getting a new mortgage below.

Step 1: Apply

You can start the application process with me online even, by visiting this link. Or you can give me a call (780) 946-6222 or sending me an email Krista@mortgagesimple.ca

Step 2: Processing

I will then be in touch to review your application and discuss your specific needs before getting you approved for your mortgage financing.

Step 3: Acceptance

When your loan is approved, I will send you your approval and a list of required documents. The checklist above is a great start ahead of time. The approval must be signed and returned along with any other required documents.

Step 4: Funding

Once your loan is complete you will need to meet with your lawyer to finalize and register your loan.

From there, find and move into your new home and enjoy the fruit of your hard work!

Spruce Grove MortgageAxiom Mortgage Edmonton

 

 

Separation, Divorce & Finances

In my 30’s my parents had to co-sign for my mortgage and it was a humbling experience. My specialization in mortgage services for divorce and/or separation came from personally navigating the process alone. It became my drive to find another way, so nobody else had to go thru what I did.

No one wants to struggle financially following a split, especially when it takes such an emotional toll.

It’s imperative to examine your finances to determine if you can comfortably afford to buy out your spouse. If you’ve decided to remain in your matrimonial home, but the mortgage payments, taxes, monthly bills and upkeep push you to your financial limit, the stress that this will put you under may not be worth staying put – even for the sake of keeping something constant in your children’s lives.

 

Creating workable solutions for divorcing spouses with the ‘Spousal Buyout Program’

When refinancing a typical mortgage, you can only access up to 80% of the home’s value. But, through a Spousal Buyout Program, you can ‘purchase’ the home from your spouse and unlock up to 95% of its equity. Matrimonial debt and lump sum equity payments can also be included in the mortgage – up to 95% of the appraised value.

This added access to funds often makes the difference between one spouse being able to buy out the other’s half of the home versus having to sell the home and find two new separate places to live. This can prove especially difficult, of course, if children are involved.

Many people find that qualifying for a mortgage under the new Canadian mortgage stress test rules to be quite difficult. I have special tools that allow a borrower to use child tax credit, child support, and spousal support as a source of income. It is equally difficult for the payor of the support to qualify for a mortgage as this extra payment can be quite limiting. As your broker, I have solutions that can help a borrower navigate around these limitations.

My business thrives on referrals from past clients as well as other professionals such as Collaborative divorce lawyersfinancial plannersdivorce coaches, and realtors, and the best part is in most cases your broker is likely to be paid by the financial institution that lends you the money.

This means there is likely no brokers fees to you, the client.

As a mortgage specialist who works with divorcing couples, I’ve adopted three key priorities to ensure I serve every client to the best of my ability, including:

  1. Operating with integrity by always ensuring my clients receive the best mortgage product and rate to meet their unique needs – both now and over the long term.
  2. Providing solutions, support and answers while navigating unchartered territory such as separation/divorce, which ultimately leads to financial independence.
  3. Keeping a positive outlook regardless of the situation at hand to help keep clients in a positive frame of mind while they complete their separation/divorce and split the matrimonial home.

As an added benefit of my specialization, I’m also able to get more exceptions from my trusted lender partners to ensure my clients’ needs are met along their road to financial independence following a breakup. I help homeowners split their marital home and educate my clients so they can create financial independence and own a home on their own that’s within their means.

My goal is to empower you with financial independence and help you find a way to stability after a separation/divorce.

Divorce Mortgage

Mortgage Portability

The Guise of Mortgage Portability

“Is my mortgage portable?”
The answer is probably yes.

“Is it easy to port my mortgage?”
The answer is probably not.

When you’re selling your existing home and buying something else, porting your mortgage involves transferring the remainder of your current mortgage term, outstanding principal balance, and interest rate to that new property. Although this might sound like a good idea to keep a low rate intact, in reality, sometimes it feels like the stars have to align for it to work out.

Most people assume that porting a mortgage guarantees mortgage qualification on the purchase of a new property using the mortgage they got when they bought their last property. Often they feel confident about their ability to simply port their mortgage, and might even sell their existing property or write an offer on a new property, believing that they are already qualified (because they were qualified before). This isn’t the case.

Just because your mortgage is portable, doesn’t mean you’ll somehow magically qualify to buy a new property with an old mortgage. Mortgage financing doesn’t work that way.

Porting a mortgage requires full re-qualification, it’s not a loophole to purchase a new property without disclosing changes in your financial situation. The lender will ask for new employment documents and pull a new credit report. It is the mortgage qualification process, with additional conditions.

The most common reasons porting doesn’t always work out as planned

  • You may not qualify for the new mortgage.
  • The property you are buying doesn’t meet the lender’s guidelines.
  • You still need a down payment.
  • You’ll most likely have to pay a penalty, even if it’s refunded.
  • Timelines rarely work out.

So, if you are in a situation where you have an existing mortgage, and you’re looking to buy something else, and you’d like to discuss mortgage portability, please don’t hesitate to get in touch anytime! I’d love to walk you through your options.

There is no substitute for solid mortgage advice. Porting might make sense, but then again it might not. Either way, I’ll make sure you know exactly where you stand.

Questions on your mortgage, or want to compare your mortgage to what is currently available? Please email me.

Tips For Saving For A Downpayment

Saving For A Downpayment

Saving for a down payment is one of those things most of us have to/had to do in our lives. You have created your life and/or family and are looking to get into your first home. This tips will help you with saving some money for your down payment.

Determine how much you need to save

The current minimum needed for a down payment of a home less than $500,000 in Canada is 5% of the purchase price. For homes between $500,000 and $999,999 the minimum down payment is 5% on the first $500,000 and 10% for any of the amount over it. Finally if you purchase price is $1,000,000 or more, the minimum down payment is 20%.

You can try out my handy Mortgage Calculator to input some prices to determine what you think would be an affordable mortgage payment for you for a general idea of your price range in homes.

Set a timeline

Once you have a timeline and an amount from there you can do some simple math to determine how much you need to put away weekly/monthly to save. For example, if you are wanting to save $20,000 (5% of $400,000) and are hoping to do it in 3 years you would need to put away $555 a month or $256 bi-weekly.

Automate your savings

Now that you have the amount you want to save per month in mind, set up automatic transfers with you bank in to a savings account. If you have specific dates you receive your pay you can have them set up to take out that day or the next.

Extras add up

Receiving a bonus at work or a little extra money in your birthday card? Put this money into the savings and it will quickly add up. Just as the little things like eating out and cab rides add up to take funds out of your account, saving on these things will encourage growth in your bank account.

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