Mortgage Financing Toronto

Normally, Toronto homeowners will often resort to obtaining a suitable

mortgage financing Toronto arrangement whenever they are faced with

a deep financial setback. When they are in anticipation that they would not

be able to keep up with their financial obligations in the upcoming months,

including their mortgage payments, they can see that the best recourse they

have is finding a suitable mortgage financing program they can take

advantage of.

Now, if you are new to the world of mortgage, you tend to see the word

“mortgage financing” as something too technical, a highfalutin term. But in reality it is not. Mortgage financing is an underwriting process. Its main purpose really is to extend an existing loan or a mortgage arrangement on a commercial or residential property to benefit a highly qualified applicant. Mortgage financing is usually centered around two specific goals. First, the financing arrangement is created with the purpose of providing revenue for the private lender, or perhaps it could also be a financial institution like a bank. Second, mortgage extensions by financing programs can help make way for qualified individuals to secure their properties in such a way that it will allow them to make repayments for it within their capability to do so.  

Understanding how mortgage works come much easier when you have a good grasp of the working idea behind mortgage arrangements. Remember, we don’t qualify mortgage arrangements as just a plain and simple loan. They are usually associated with the acquisition of a real estate property that is intended either for residential or commercial use. So that makes it quite complicated. These are the types of loans that usually present to us terms that are much different from what a traditional banking institution normally gives. Their distinguishing factor lies in the structure of the loan and its duration.  

As for the loanable amount that can be awarded to a qualified borrower, this would be under the discretion of the lender himself. He will decide, based upon his own estimation, if a prospective borrower is capable of making repayments. And his decision would be based upon the merits of the credentials provided by the applicant. He will need to look into the other properties the borrower may have under his name, his work history, credit rating, or any other active loans he may be having, etc. In short, he is going to make an in-depth

background check first prior to making any decision. Mortgage lenders may decide to give a 25-year loan term, or much even longer, depending upon how he sees the applicant with respect to his ability to make future repayments for the duration of the loan.

In the majority of the financing mortgage arrangements, the property purchased with a financing arrangement is normally offered as the loan collateral. Now, as for the mortgage duration, the lender would serve as the holder of the mortgage for the property in question. In any event that the owner of the mortgaged property is at default, the private lender or the financial institution reserves the right to take full ownership of the said property and may offer it for resale in the property market. This is the only surefire way for the lender to retrieve his investment back, by offering the same as a

resale to a third-party buyer.

Sometimes, a property owner would find himself having secured another mortgage arrangement on top of another active mortgage arrangement in place.

This can be possibly done based upon the accumulated amount of equity on the second mortgage that is accumulated by the property owner. Although,

there are financial institutions or lending bodies in some other parts of the world that are making use of a formula to calculate this accurately. In addition to this, there are no provisions yet in our existing real estate laws that will necessitate holders of the first mortgage arrangement to give their consent to the creation of another mortgage setup.

Much like the other types of loans that we know of and have a good level of familiarity with, an important aspect of mortgage financing is the full repayment of the loaned amount used to acquire a property. In addition to this, there is the applicable interest rate that is in effect and which is also outlined in the mortgage terms. The interest rate, though, maybe fixed. This means to say that it will remain constant and is not bound to change anytime throughout the entirety of the loan contract. But there is also a chance that what you will obtain instead is a variable rate of interest. This will give the homeowner the opportunity to take advantage of any decreases in interest rates that may take place anytime during the term of the mortgage. If you will need to more about how mortgage refinancing Toronto works today, reaching out to your trusted mortgage professional would be of great help.

Understanding Toronto Mortgage Companies

Toronto mortgage companies are just like any other financial bodies in terms of their
function and all, but it mainly caters to financing properties on behalf of its customers.
The properties they qualify in their offered financing programs are real properties such
as a piece of land or their house and lot. These financial bodies are actually looking after
the payments for these real properties, and they do it on behalf of their clients. This way,
they are enabling their customers to buy the said properties. At the end of the day, these
mortgage buyers are necessitated to make monthly repayments for this loan to them with
the intention of reducing their loan amount. With these monthly repayments comes
applicable interest rates on the mortgage arrangements, together with insurance and taxes.

If we are witnessing dynamism in the Canadian real estate market nowadays, we can
attribute this to Toronto mortgage companies. It is because they are the ones who are
responsible for bringing it to the industry, their collective actions to promote their
business and role brought about this peppy spirit. A few decades ago, people would
have a hard time if they have any interest in buying what can be best described as an
expensive property. If they dare doing so, they would run the risk of having total liquidity.
However, all that changed with the help of arrangements offered by mortgage loans. It
empowered the people by enabling them to buy properties, even large ones and make
repayments for it on an easy installment basis. Real estate properties then that were
considered as expensive are now made affordable to the greater majority of Canadian
families with the help of mortgage loans. In other words, mortgage loans improved the
purchasing power of an individual.

However, before a mortgage company can approve a loan application one needs to
comply with their prerequisites first and this is normal for all mortgage firms. This is one
way they could protect themselves and their company’s interests against the unscrupulous
activities of some individuals who may be out to dupe them. They need to verify each
loan application they are receiving and see to it that the applicant is indeed capable of
making repayments, and are thus creditworthy. Aside from which, they need to ensure that
he is also financially stable. Nonetheless, there are also mortgage companies out there
that can cater to the needs of people who unfortunately do happen to have a bad credit
and all, albeit they have these mortgage offerings at a much higher interest rate. These
mortgage companies, although only a few of them, may require you to submit to them
your property deeds taken as a form of collateral but would be returned back to you until
that day that the exact loan amount has been fully repaid. This is normal especially for
mortgage loan applicants that have bad credit.

Even though they are taking precautionary measures for their own security, it is
unfortunate that they there are still prone to willing defaulters. Hence, these mortgage
firms need to take the last resort in case that there is a default in one of their loan
borrowers. They need to get for themselves mortgage insurance. However, this type of
insurance is not of paramount importance or not at all need if the mortgage amount is
80% below the value of the property in question. It is also out of the picture in case the
loan borrower and property buyer made a down payment of at least 20%

Not to make an overwhelming exaggeration here, but when it comes to selling mortgage
the competition itself here in Canada can be best described as very stiff. As a matter of
fact, a lot of these mortgage firms have relied on the help of other companies to provide
them a steady flow of clients that are qualified as potential property buyers. They are
referred to as leads. There are several different ways that these mortgage leads can be
generated. It can be done through call centers and with the use of lead generation sites.
It won’t really matter for these mortgage companies if they have to pay thousands of
dollars to other companies just for them to have enough number of mortgage leads in a
month if that is the only way they could have a steady flow of business.

The prospect of gaining an increased number of mortgage leads is also likely to happen
if these mortgage firms will join the bandwagon of businesses joining the online
marketplace. It is convenient on the side of mortgage loan borrowers because they get
to choose the mortgage firm from which they can obtain the loan they need. While on the
part of the mortgage company, they can screen qualifications of loan borrowers online by
necessitating them to initially submit their requirements online for faster transactions. As
for the processing, origination, and the final disbursement of the mortgage, it can all be
done in the brick and mortar addresses of these Toronto mortgage companies.

Current Mortgage Rates Toronto: Advantages of Carrying Mortgage

For most of us, the best recourse to take if we want to purchase a home right away is to consider taking on a financing arrangement which is normally offered by banking institutions. But sometimes even when people know that the current mortgage rates Toronto would be working to their advantage, they would still opt to engage in a cash deal instead. A number of possible reasons could be behind it, it could be that they have sold another property or they are in a direction of downsizing the same. Or perhaps, they have a  number of other liquid assets, thus, can afford to acquire another. Some people will counsel their intention is to reduce debt, but taking into account the various forms of debt, I will agree that this particular advice will not carry on a home loan or mortgage.

Here are some of the major benefits you can take advantage of from carrying a mortgage arrangement:

Money and Its Opportunity Cost

There may be a good number of people who may be familiar with this saying, however, the problem about this is that they are not fully aware that it actually applies to them. It would be wise to ponder on oneself if you need to make out a separate investment, then eventually take out a mortgage instead. This is much more practical today when the interest rates for mortgages are still at its historical lows. Furthermore, would it not make better sense if you will decide to diversify more on your portfolio, and thus eventually be able to position yourself in a better financial future? But there may be several aspects of your life that may actually impact your decision regarding this. This may include your future plans, comfort zone, or personal circumstances, future needs or concerns to you are anticipating and maybe more. Nonetheless, it is crucial that you keep this always in mind, money’s opportunity cost.

Cash Flow

If you are at a 4.5% mortgage rate but you are effectively paying for it a bit less, due to tax considerations, and over time if you have faith that this can help produce more from your investments, carrying a mortgage would make better sense. But if you are having some qualms about it, you can always opt to make larger down payments instead. Another good option or course of action you can take is to add to your monthly payment additional principal paybacks. Doing this should enable you to still enjoy some of those benefits.

Tax Advantages/Tax Deductible

The primary reason why mortgage interest will considerably cost you less as compared to many other types of loan is that of the fact that it is tax deductible. When carrying on a mortgage,  I suggest that what you do in order to lower your debts is to take on a much higher, nondeductible interests. Say, for instance, you are in a 30% tax bracket, the effective tax interest that you are going to have a 4.5% mortgage is just 3.15%.

Escrow

The majority of lending institutions would charge you and keep an escrow account while you’re having an active mortgage arrangement with them. There is no reason to be concerned about making a real estate tax payment and getting a penalty for that. It is because the loaner will settle that out of your account. As for the escrow account, it will be bound to receive from the balance due dividends.

Make a Prepayment

There are many people out there who can’t seem to figure out whether they should carry on a 15-year or a 30-year mortgage. In this kind of scenario, the best recourse is to opt instead for the mortgage arrangement that comes with the longest term instead. Doing so will make it easy and affordable for you to pay a lower amount monthly. However, it is also practical to put on some additional principal payments, like $100 per payment. This measure will help lower down the payback period. A good number of mortgages we have today does not necessarily come with a prepayment penalty.

Make an effort to have a deeper understanding of the current mortgage rates Toronto. Together with this, know as well all your available mortgage options and do this right from the very start. When you know how things in the mortgage industry work, you can take on whatever makes good sense for you.

The Four Stages of Toronto Mortgage Loan Processing

Buying a home is one of the biggest financial investments that anyone will have to make when they hit the property buying age which is 25-40 years, not just here in Canada, but anywhere you may be on the globe. However, not many of us are actually aware of the rudiments of the Toronto mortgage loan processing. Awareness and understanding of this phase are vital for us to know because it will be helpful to us and prepare us somehow to take on the responsibility entailed in property ownership, regardless if it is a commercial or residential type. And since there is a manifold of available mortgage options in the market today, a first time homebuyer will feel confused and challenged by which option he should take, most especially when they realized that they are faced with the prospect of decades-long commitment and thousands of dollars of hard-earned money is at stake which necessitates them to make wise and well-thought of decision. This is the only way they can ensure to get the value for their money.

When it comes to a mortgage loan processing in Toronto, the steps would be generally just the same, although we can’t get away with the fact that some private lenders may have a special or unique process of their own. Here are basic steps in processing a loan mortgage:

Applying for a Mortgage

You will be asked to fill out an application form for loan mortgage the moment that you have found a suitable private loan provider and decided that you will consider availing his offered loan arrangement. Nowadays, this part of the process can be done online. Soon after you have filled out all information and personal details being asked of you (you do that as openly and truthfully as possible), you have to hand it over to your mortgage processor.

After submitting your loan application, anticipate that the mortgage processor will immediately reach out to you and may require you to furnish them a copy of a number of important documents. These may include your income tax returns, recent bank statements, paystubs, and among others. All pertinent paperwork can be sent via mail, which may inadvertently cause some amount of delay in the process.

Document Verification Phase

The moment that a designated loan processor received the pertinent document he is requesting from a mortgage applicant, the loan processing stage will immediately commence. The documents being submitted to them will undergo a rigid verification process. So there is no point of defrauding them as they will have a way of knowing the authenticity of the information you have provided. One of the most commonly used techniques for verification part is giving your landlord, bank, employer or any other contact people you have indicated and feature in your submitted documents, a ring.

Once your submitted documents passed and cleared this pre-approval phase, they will submit to the lender himself. This will initiate the appraisal processing and title report part which will normally take about an average of 14 days to validate your submitted documentation.

Underwriting the Loan Application

This is the approval stage, and in here the underwriters are tasked to make another round of validation on your submitted documents. It is also at this stage that their underwriters may request for your credit reports so as to help them ascertain if you creditworthiness or not.  Title search report and appraisals receive approval at this stage, too.

The underwriters, however, practice full discretion on whether or not they will deem a borrower profile as credit-worthy or not, and thus they have the power to reject or approve a particular loan application based on their careful review of a submitted borrower profile. On the other hand, accepted loan applications would find its way back to the loan processor but this time around a pre-closing statement is included. If there are any declined or denied files, the loan processor and officer will have to carefully review them once again, and see if there is any possible way that they can help the loan applicant.

Closing Stage  

If the underwriting and the underwriting departments are completely happy and satisfied with your submitted requirements and file, your loan application status will immediately enter the closing stage. It will be initiated by the loan officer with high observance on the conditions as the underwriter has stipulated. In a short time, the lender will provide you with the loan commitment, and this will help you both set the date of the actual closing date of the loan.

In making this kind of decision, I highly recommend that you make a relevant consultation with the property seller and lender. Before closing becomes formal, it would be wise that you carefully review also the Good Faith Estimate statement and compare it what you have on the Settlement Statement document. The outline of charges that you should see on both documents should be one and the same, and if you will need further assistance on this and other details for your Toronto mortgage loan you can always reach out to a distinguished mortgage broker from Toronto.

What You Need to Know About Best Mortgage Toronto and Why?

The moment that Canadians have reached the right property-buying age which is 25-40 years of age, they know and understand all the underlying reasons why they need to look for the best mortgage Toronto that they can possibly find. Thus, it makes sense when they try to make an effort to search first to find the right kind of mortgage programs that will work best for their needs. It is not advisable to grab right away the first mortgage offer that you will come across with since there could be a number of other available mortgage programs out there with lower rates. Be careful and keep yourself from making any slapdash decision because it is certain that sooner or later you will have to regret it. It might be too late for you to realize your mistake, and that would be a very costly mistake for you to have.

If you want to secure nothing but the best available mortgage rates in Toronto, you might want to consider these 5 important pointers. These pointers can serve as a beacon of light so you will not lose your way in making the right and informed decision.

• Commit Yourself to Monitor Mortgage Rates on a Daily Basis

Regardless of what industry you may belong to, credit interests will expectedly vary every single time. It is because most of the time, the tariffs will also vary on a daily basis. Hence, in order to keep yourself abreast with the latest changes and developments, you might need to monitor them on a daily basis. Believe it or not, this pointer alone has saved many people hundreds of dollars and they did nothing else but keeping an eye on whatever the mortgage rates will go though. When you are keeping an eye daily on the latest changes in interest rates, not only that you will have a significant amount of savings but at the same time you will also increase your chances of saving so much more on interest taxes.

• Scrutinize the Mortgage Company’s Policy

So many of us are actually guilty of this in one way or another, but it is not a good practice anyways when you deliberately decide to skip on reading and making a careful, thorough review of the mortgage company’s prevailing policy. Such can be very risky, most especially when at stake here is your purchased property.  Do not skimp on reviewing a mortgage company’s policy because it is possible that there could be a number of clauses within it that may not be suitable or applicable to your needs and circumstances. Furthermore, you might even encounter a mortgage company that is willing to offer you a much lower interest rate, however, you will need to make a commitment that you will work it with them.

• Make a Comparative Analysis Between Several Firms

Different mortgage companies may offer varying rates in the various mortgage programs they have on offer. However, it is unlikely that a person would be able to know exactly the prevailing tariffs unless he himself has done a comparative analysis on them first. Checking out the official company website can give you an idea of their prevailing charges. Or you can also pay a visit to their brick and mortar office so you can make a direct inquiry regarding their offered interest tolls. This way, you can increase your chances of securing for yourself the best mortgage rates possible.

• Fixed Rates vs Adjustable Rates

Perhaps, we can qualify them as two of the most well-known and in-demand mortgage rate types in the market today. In order to avail the best charges possible, you will have to wisely choose between these two available options. While they have their own distinct features and benefits, it is the specific needs of people that are actually varying and will determine the rates from time to time. There are people who have this tendency to have an increasing preference for an adjustment in interest rates with respect to the prevailing economic conditions, while there are also others who would love instead fixed tariffs.

• Improvement of Credit Score

Everyone needs to be aware that their credit score is a major factor to be considered when it comes to determining the interest rate they will likely receive. Hence, it will work to your advantage when you always pay careful attention in maintaining for yourself a good credit score and rating. If you are not yet in the property buying age, make sure that you understand as early as now the importance of keeping a good credit rating and score, all the time.

Make sure that you keep in mind all these valuable pointers I have presented here. They will significantly help you find the best mortgage Toronto rates you can possibly get from a reputable mortgage company, without any fuzz and no sticky points.  If you will remain aware of them each and every time you want to buy a property, you’d be able to veer away from the problems and issues that are normally entailed with higher interest rates.

The Primary Role of Toronto Mortgage Brokers When Purchasing Your Home

It will always work to your advantage if you will have a Toronto mortgage broker by your side if you have plans of buying yourself a house or refinancing your mortgage. It is because these professionals have relevant access to the big banks and many other similar financial institutions. Aside from that, they have connections to local brokers, too. The rule of thumb in finding the right and suitable mortgage program for your specific needs is to find first the right and experienced mortgage professional.

However, some people are confusing a mortgage broker to that of a bank loan officer since they both seem to have similar functions. But there is a distinction between the two that must be understood by many before anyone would decide to engage with anyone of them. The underlying difference between the two is that the bank officer does his work to benefit the bank whereas the mortgage broker does not and is actually working for no one but for the sake of his client. The mortgage broker is unique from a bank loan officer in the sense that they are maintaining a good working relationship with a number of financial institutions yet they remain not committed to anyone of them. His main function is to link together the buyer and money lender. He may also work within the umbrella of a mortgage company and he can also work independently on his own.

If you are a homebuyer, trying to find a house to buy within or anywhere around Toronto, you have better chances of finding exactly what you are looking with the help of a seasoned mortgage broker. If anyone has a poor credit rating, he must understand that he can increase his chances of availing a mortgage with the help of a mortgage broker.

Normally, banks would have a number of prequalifying conditions that a borrower will need to satisfy first before they even consider your loan application.  The professional mortgage brokers in Toronto will work with their client-borrower in an attempt to find a suitable mortgage for their property buying needs. You will know that you have finally come across a good Toronto mortgage broker if this professional will show you keen interest on what your specific needs are and assist you in securing the proper loan program to have from a reputable money lending company. Depending on the level of your financial literacy, these mortgage brokers from Toronto or anywhere for that matter may even provide you with basic credit counseling service with the goal of helping you correct your credit issues.

Most of the time, brokers will help you out and find for you a specific mortgage program that is suitable for your needs. Don’t be so surprised if they charge you only a small amount of money for their rendered services and assistance, it is because the banks they have referred you to will compensate them or pay their corresponding fees, instead. However, if you happen to have a bad credit rating,  you will need to pay your mortgage broker fees out of your own pocket since they will commit to help and find for you a private mortgage financing company who will accommodate the financing needs that you may have.

Toronto mortgage brokers will indeed provide the significant help that you need if you are keen on purchasing a home since these professionals possess a profound understanding of how the industry works, including the rates.

Can You Still Find An Affordable Toronto Mortgage Rates in a Challenging Economy

When times are difficult and challenging, the kind of investment that you will put into your home will represent the security that you and your family will have. If you are just renting your home, be it a townhouse, in an apartment complex, or in a condominium, you will understand that one of the biggest worries that people like you will have is that where will you go if all of a sudden your landlord made a decision not to renew your lease agreement anymore. Hence, this leaves you to thinking that having your own property is the most sound and practical decision you need to make for yourself. Aside from this, owning a property will always be a great investment for the future.

As the years will pass by, your property’s market value will inadvertently rise and fall, to some extent, but fortunately for dwelling structures, the trend has always been going upward.  For this reason, you need to look first for some of the most affordable Toronto mortgage rates possible. This way you can get started on doing your property search.

It is sad but true, not everyone these days can afford to buy a house or a property in cold cash. What does this imply then?  This means to say that a vast majority of people, maybe professionals, homemakers or investors alike, will most likely have to rely on a good mortgage loan to buy and acquire for themselves a property of their own. It also signifies that it is one of the biggest expenditures that people of today will most likely have in 15 - 30 years to come.

If you are seriously considering to buy a house anytime soon, you will easily realize that there is a wide spectrum of available mortgage programs that you can take good advantage of. You can easily make a search on the Web about mortgage rate trends in Toronto and it will showcase to you a wide array of relevant information about mortgage rates and available options for taking. However, my suggestion here is to scrutinize everything up before you give anyone of them a ring because all of them will certainly tell you that they are offering cheapest rates in town. But really there is no harm at all if you will take your baby steps on this part first.

Have yourself some good amount of diligence when trying to make a review of all the available mortgage options that you will find.  You need to take up this measure because it will certainly help you chance upon a number of incredibly good financing alternatives that are perfectly suitable and appropriate to your available budget. But you have to accept the fact that doing a substantial amount of research is needed if you really want to find something that will give you value. Some people will find this kind of task to be overwhelming so you really have to prepare yourself for that.

For this purpose, you will need educational supplies or perhaps some relevant materials that can be sourced and supplied to you by the Canadian Mortgage Brokers Association or CMBA. Such materials will be of help to you so you will be able to understand some of the relevant mortgage information that you will come across with on the Web. This organization is the national representation of the real estate finance sector. One of their goals is to help expand home ownership and to help the general Canadian public to have good access to cheap and more affordable housing options. Also, one of the other goals they have is to help promote financial literacy.

The CMBA is an organization known to help promote fair and ethical lending practices. The team is also exerting significant effort in fostering professional excellence among the property professional finance workers which they hope to achieve by means of offering to the people a wide array of public educational programs and a variety of relevant publications. The CMBA agencies are highly reputed for their efforts in clarifying a problem whenever a pressing issue arises. They also take charge in preserving policies and upholding their member’s interests. They are able to fulfill all these by staying in close communication with local officials, regulatory bodies, and even to the general public.

There are clear and present  challenges in the market today and it  has  rendered the mortgage sector to take on an unprecedented, significant measures aimed at giving assistance   to the would-be homeowners in their goal of acquiring and purchasing a house of their own as well as helping them remain in their homes in spite of the unpredictable economic challenges.

Helpful Hints to Find Helpful Mortgage Rates

Shop Around  So You Can Find the Right Mortgage Rates

One of the most common mistakes that the majority of would-be homebuyers commit is that they tend to follow the advice of their realtors to take advantage of a home mortgage program that is being offered by one of their affiliated private lenders. It is not unusual for you to hear them say, “We have been working closely with this team of professionals, so you need to consider getting your mortgage requirements from them, we know they can deliver. “ Personally, I will translate such kind of statement as “This team is one of our closest buddies, too. They actually help in buying beer for us. “ To help keep your senses awake, remind yourself constantly that your hired Toronto realtor is not going to be the one to pay the mortgage bill for the next 25-30 years but you. So you take hold of making that decision for whom you will avail your required mortgage.

11 am Eastern Time, Start Inquiring About Home Mortgage Quotes

Home mortgage rates are not fixed, they are very volatile and are fickle by nature. Hence, there is nothing unusual to it if they change every single day, even on a midday.  Like for instance, the mortgage rates that we have today, it is going to expire by tomorrow morning at 8.30 am.  If the bond market is too volatile, this may induce the home mortgage rates to change even if it is midday.  When this happens, the private lender will have to make the necessary adjustment on their discount points for each offered rates with respect to the prices for the new bonds. Then afterward, they will go on and publish the fresh new rates they have for that day.

Inquire About the Total Sum of Points and Fees

Whenever you reach out to a private lender, always inquire about the “Total Points” (Loan Origination Fee, Broker Points, Discount Points) that should normally come with their offered home mortgage rate. Know that there are a number of lenders who will only provide their quotes for Discount Points but will deliberately not include their Loan Origination Fee.  There is no chance that you will learn about the Point Loan Origination Fee not until you apply for a home mortgage program. The Loan Officer, by then, would be most certain that you will accept and take their offer since they have your application already and they have pulled as well your credit report. And lastly, I am not sure if this one is intentional or not from the part of the mortgage broker, but often they don’t include their mortgage fees.

You also need to be aware that there are mortgage lenders who are not in the habit of giving their clients a charge for Loan Origination Fee.

The moment that you have received their quoted total points, you need to inquire if they have any additional Broker Fee or Loan Origination Fee that they will charge you for.  It is crucial that you nail this thing down the moment that you have a good chance to talk to your mortgage loan officer.

When Inquiring About the Rate Quote, Confirm Details of the Rate Lock Period

If you are dead serious about buying a house anytime soon and you need to close it within 60 days, I will encourage you to request for mortgage rate quotes that come with a lock period of 60 days. There are a mortgage loan officers who will send you a quoted rate that comes with 15 Day or 30 Day Lock periods because the discount points that usually go with shorter lock periods usually lower as compared to the rate locks that go with the longer periods. It is going to be self-serving to the interest of the loan officer if he will give you a home mortgage rate with a lock period of  15 days. Your time for it is certainly bound to be wasted since the quote is not considered real in the event that you are not able to settle that particular loan in a matter of 15 days. For your own interest, make it a point that you specify that you want to get a quote that comes with a  60 days lock-in period.

If you are opting for refinancing, you can go for a 45 day lock-in period instead.  But there is a chance that this might get completed in 30 days provided, of course, that you have enough diligence and you are reaching out to your mortgage loan officer for the status and updates of your application, say, at least 2 times a week.

As much as possible, avoid getting your rate lock expire on you, why? If you allowed your rate lock to expire, your lender has the prerogative of re-locking it for you but this time around it would be a higher rate, which could either be the current rate or the original rate when you decided to relock. Whichever way you go here between the two, it is going to be a LOSE OR LOSE situation for you.

If you still have other concerns when it comes to getting affordable Toronto mortgage rates that were not tackled here, you can reach out to your reliable Toronto realtor or you can get in touch with your local CMBA’s member agency  since they will be able to provide you with more relevant information and perhaps they can even provide you with  educational supplies  that will help  you in  sorting through the wide spectrum of mortgage options and finally identify the most appropriate mortgage loan program for you.