Canada is essentially a nation of immigrants and as a result we at Mississauga-mortgage have special mortgage programs for new Canadians. Mississauga is a city of approximately 50% immigrants and it is much easier for new Canadians to get a mortgage than what you might think.

Here are some details of the New to Canada mortgage program:
1. Temporary residents are eligible to purchase a home in Mississauga (“9” SIN numbers)
2. Temporary residents must show proof that they have applied for permanent residency
3. A 5% down payment is required. In some cases 10% is the minimum down payment
4. Credit worthiness can be established from your Mississauga utility bill or from means other than a credit bureau.
5. A reference letter from the applicant’s bank from their country of origin might be required as well as a credit bureau from the country of origin.
6. Applicants that are internal company transfers from their country of origin to Canada are preferred.
7. Only applicants that have been in Canada for less or equal to 3 years qualify for the New to Canada program.
8. The applicant(s) income must be provable.
9. Refinances for applicants with “9” Sin numbers are possible only if the applicants have more than 20% equity in their homes.

Not all lenders offer the New to Canada mortgage programs. Jacques du Preez has gone through this transition himself and will be able to guide you through the process of purchasing a home in Canada.

Here are the meeting dates for the Bank of Canada for 2012. These dates are very important, especially for those with variable rate mortgages:
17 January
8 March
17 April
5 June
17 July
5 September
23 October
4 December
As usual there are always 8 meetings per year.

More and more Canadians are beginning to bounce back from the recent economic slide and are considering purchasing a home. For many individuals, this is going to be the first time they’ve approached the process of finding a house to call their own. Homes can range anywhere from $100,000 to $1,000,000 – so many first-time buyers need to consider mortgage options.

Negotiating a mortgage agreement can be a complicated task. For this reason Canadians often seek out the assistance of a mortgage agent – someone qualified to “shop around” with banks, credit unions and other institutions in order to find the best rates and conditions for a particular lifestyle. The certified mortgage brokers we have at Mississauga Mortgage are an excellent choice for individuals who don’t have time to sort through the many options available to them. But we’re also a great choice for people who want to talk to someone in the know about mortgages in Mississauga without feeling the kind of pressure they might find at their bank.

Mortgage rates, terms, conditions and fees can be overwhelming, so we’re going to be posting a series of articles to help first-time buyers understand the mortgage process. For this very first post, we’ll go over the mortgage payment system and some preliminary terms you should become familiar with.

The Mortgage Payment

The first payment new home owners will need to commit to is the down payment. This is the amount that the purchaser puts towards the listed value of the home. Typically, most people will put up 20% of the purchase price, but there’s room to negotiate. The more you put towards the down payment, though, the less you’ll need to finance for the rest of the cost. This usually translates into lower monthly payments. Depending on your circumstance and the property you’re interested in, our mortgage brokers can advise you how much money you should put towards the down payment.
Once you’ve signed a mortgage agreement and paid your down payment, you’ll have to start making the monthly payment. The monthly payment is determined by the following costs:
• Principle: The total amount of money borrowed after the down payment.
• Interest: The amount you’re being charged for the loan – expressed as a percentage of the principle.
• Taxes: Money used to pay property taxes are usually held by a third-party who releases the funds when the taxes are due
• Insurance: Mortgages almost always require insurance to protect against losses from fire, theft, floods, etc.

Our mortgage agents will be happy to walk you through this process further. Check back here for our next post where we’ll discuss two different types of plans: The fixed-rate mortgage and the adjustable-rate mortgage.

These days, everyone is going green! Whether it is using reusable water bottles or grocery bags, driving environmentally- friendly cars, or implementing new recycling programs, it is clear that environmentally- friendly practices have become more prevalent in recent years. With the incredible rising popularity of green practices, it is not surprising that eco-friendly homes are becoming more common. Homes built with the environment’s well-being in mind present tons of benefit— and not only for the environment!
To give you an idea of just how great eco-friendly homes are, here is a short list of a few benefits:
• Environmental benefits: By using less energy and fewer harmful materials, green homes contribute to the conservation of natural resources like water, wind, sun, and geothermal energy.
• Health benefits: By using non-toxic and non-volatile materials, green homes can eliminate many health issues. Living in an environmentally- friendly home will result in improved air quality, and could even help alleviate respiratory problems. Additionally, because eco-friendly homes use fewer artificial materials, less mould and mildew will develop over time.
• Financial benefits: Operating a green home is much less expensive than operating a normal home. Living in an environmentally friendly home, you will discover that heating/cooling costs will be lower, resulting in reduced energy bill payments. Another thing to consider is that the market demand for green homes is continuously rising. If you invest in one now, it will increase in value for the future.
Clearly, there are plenty of incentives to purchase a green home. If you are interested in purchasing a green home in the GTA, Mississauga has tons of options! In the Streetsville Glen development, for example, energy star features are standard and buyers can choose optional upgraded packages. One package includes an upgraded building envelope and another combines the upgraded building envelope with upgraded heating, cooling and air filtering systems.

Once you find a green home you would like to purchase, you will need to secure a practical and affordable mortgage. To make sure you get the best rate possible, it is an excellent idea to enlist the help of a professional mortgage broker. For a reliable mortgage broker in Mississauga, come to Mississauga Mortgage. At Mississauga Mortgage, we specialize in securing affordable residential, commercial, industrial, and construction mortgages.

We are committed to getting our clients the best possible mortgage rates in Mississauga. By taking advantage of a Mississauga Mortgage broker, you can eliminate the stress of negotiating with lending institutions directly and rest assured that you’ll get the most affordable rates. For more information about Mississauga Mortgage, visit http://mississauga-mortgage.com/.

Mississauga, one of the fastest growing cities in Canada, is the 6th largest city in the nation. The location of one of Canada’s largest financial districts, the Mississauga housing market is booming. With a wide variety of work opportunities, tons of entertainment centers, and a high quality of living, it’s no wonder why it’s becoming such a popular place to live.

Mississauga is a center for a variety of industries including warehousing, manufacturing, electronic equipment and chemical sectors. It is the home of more than 50 Fortune 500 companies; Hewlett-Packard, Microsoft, Pepsi, and Wal-Mart are just a few. Mississauga also boasts award-winning architecture with its curvy Absolute World Towers.

Families living in Mississauga can enjoy a bevy of entertainment, including the popular indoor gaming centre,Playdium, and the impressive Square One shopping center. With 481 parks and a multitude of community centers, there are tons of opportunities for fun! Plus, it’s minutes away from Toronto—giving residents the opportunity to visit the big city without having the worry and frustration of living in the downtown core.
Mississauga offers a variety of housing developments, from quiet suburb properties to modern condominiums.

The value of single family homes, condos, and apartments in Mississauga have steadily increased in the past decade despite the snags in the housing market. The average price of a home in Mississauga is approximately $340,000. In order to afford this, most people require a mortgage. Mississauga Mortgage’s mortgage agents are dedicated to finding you the best mortgage rates in Mississauga, Ontario.

We specialize in securing residential, commercial, industrial, and construction mortgages in the Mississauga area. For more information on mortgage rates, mortgage rates for those who are self-employed, and information on credit, visit the Mississauga Mortgage website. You can also read more in our blog that offers valuable information on debt consolidation and refinancing. If you’re looking for a mortgage in Mississauga and want quality service from knowledgeable mortgage brokers, contact us through our website.

This is the first of a series of articles to educate self employed people about their mortgage options and to show them how we at Mississauga-mortgage.com can help them.

Some general comments:

Most self employed people do not know what their mortgage options are and what they need to do to prepare themselves for a mortgage.  As a result they leave themselves vulnerable to less than best products from their bank or mortgage broker.  Thus, it is vitally important that self employed applicants are empowered in the mortgage process.

It might sound unbelievable, but in some cases it is actually easier to get a mortgage for a self employed applicant than it is for an employed person.  This is because salaried or hourly paid applicants are restricted to the exact income that they earn.  Self employed applicants have more options, because of the nature of self employment.

Preparing yourself for a mortgage:
Here are a few things that you need to do

1. Contact Jacques du Preez at mississauga-mortgage so that we can do a full mortgage analysis for you.  This includes a mortgage pre-qualification.
2. Register your business.  Don’t just operate on a HST number.
3. Make sure that your business is more than two years old.
4. Make sure that your credit is good.  Good credit is more important than income for mortgage qualification.
5. Make sure your business is visible.  Here are a few ways that you can do this:
   a) Website
   b) LinkedIn
   c) Online directories such as 411.ca
   d) Facebook
   If lenders cannot find your business on the web they question the legitimacy of your income.
6. For a property purchase: have 10% down payment for a purchase and an additional 1.5% closing costs.  This must come from the applicant’s own resources.  It cannot be borrowed.
7. For a refinance: have at least 15% equity in your property
8. Make sure that your income taxes are paid up to date.

If you have not done all of the above for your business we can still get you a mortgage at competitive rates, but if the above is completed we can get you the best mortgage with the best rates and conditions.  At Mississauga-mortgage we specialize in mortgages for self employed applicants.

Mortgage rules are changing again.  The rules are essentially because the Minister of Finance believes Canadians have too much debt.  The Economist and I agree with this; Canadians have the highest public debt in the world!!  However, mortgage debt (secured debt) is far less of a problem than unsecured debt like credit cards, lines of credit etc.  Unsecured debt is very problematic and at least in the past people have been able to consolidate unsecured debt in their mortgages, however, with the new mortgage rules that will become more difficult as you will see below.

Here are the new mortgage rules that take effect on 18 March 2011:

1. Purchases: As in the past, only 5% down payment required.  This is applicable to all purchases; not just first time home owners
2. Refinances: The mortgage cannot be more than 85% of the value of the property. (Currently up to 90%)
3. Amortization: Maximum 30 years (Currently 35 years)

There are no qualification rules for unsecured debt; it is up to every bank to approve applicants or not.  Unless the government addresses this problem Canada’s debt problems will be left unattended.  I believe the new mortgage rules will increase personal bankruptcies in the near future.

Here are the meeting dates for the Bank of Canada for 2011.  These are the dates that Marc Carney & Co. meet to decided the interest rate policy for the country.  These dates are very important for the economy and those of us in Mississauga with variable rate mortgage.  The prime rate for your mortgage is directly dependent on this.  I will also warn you before each meeting, but here they are.  The dates are always on a Tuesday, except for September, because of labour day when it is on a Wednesday:

18 January
1 March
12 April
31 May
19 July
7 September
25 October
6 December

Finance Minister Jim Flaherty announced new rules aimed at preventing home buyers from getting into financial difficulty when mortgage rates rise.  He announced three major changes to mortgage insurance rules which will affect all government backed insurance programs. {Mortgages with less than a 20% down payment require the mortgages to be insured with a mortgage insurer.  The new mortgage rules affect such insured mortgages}

1. All borrowers will need to qualify at a five year rate regardless of whether they are choosing a shorter term or a variable rate mortgage.  It is unclear whether this rate will be the posted or discounted rate as we await clarity for this question.  {This is nothing new to the mortgage broker industry; we have done this for years to protect our clients}

2. Refinances will be limited to 90% Loan To Value (LTV) versus the current 95% limit.

3. Non-owner occupied properties will require a down payment of 20%.

The good news is that rumours of a required 10% down for new home buyers on their principal residence and a reduction of amortization periods to 30 years are not currently being introduced.

These rule changes are scheduled to take place as of April 19, 2010.

Look us up under MortgageOntario and our newest Twitter account: MorgageAllies! We are also on Facebook too! You can now follow us to stay in touch with all mortgage developments in Mississauga.