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What NOT to do

 

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So you’ve submitted your list of paperwork to your mortgage specialist, found the home of your dreams, and gotten an approval on the mortgage. You’ve even signed the mortgage commitment and given your downpayment! You are probably thinking, “phew! We are in the clear!”

This is a mistake that too many clients make, and its one that needs to be properly communicated by the mortgage expert.
The fact is, until your mortgage has funded and you have taken possession, the home is NOT yours.

Below are 14 things NOT to do before getting your keys!

 

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Mortgage Transactions

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There are many different times in life where you may sign a mortgage agreement; whether its buying your first home, renewing your mortgage, or taking equity out to finish renovating the long dreaded basement. I’ve narrowed it down to 5 major transactions, and summarized them as follows.

Purchase

Quite self-explanatory, this takes place when an individual purchases a new or existing home, for the first time or their fifth. Different mortgage products can be chosen if you were to build your home, bought a fixer-upper, etc. When purchasing for the first time, you would be eligible for the first time home buyer plan letting you withdraw funds from your RRSP to use as down payment tax-free. Keep in mind you will still have to repay this amount 15 years after buying the home, re-payment starting the 2nd year after withdrawing funds.

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Renewals are common with home owners wanting to continue living in their home, with their term coming up. It’s a good time to shop the market for products, rates, etc. If careers may have changed, buyers may look at completely different kinds of mortgages (ex. variable rate instead of fixed rate). A good tip is to consult with your mortgage expert one year in advance, so that you can start thinking about re-evaluating your budget if rates changed. Your broker can do this for you, or if you talk to your bank instead, than speak with them and go online to see what kind of rates are being advertised and what terms. There may also be an instance where it is worth the penalty to break your mortgage, if you can take advantage of a promotional rate. Always consult with a professional first.

Refinance

Refinancing your home is a very good tool if you want to add new money to the mortgage. You may have a lot of debt (credit card bills, car payments etc.) and would like to consolidate it into your mortgage to loosen up your cash flow and take advantage of the lower mortgage rate. Homeowners might also refinance when buying a second property like a rental, withdrawing equity and using as downpayment.

Porting

Another mortgage transaction that’s typically done near the end of the term, is a port or transfer of a specific mortgage from one property to another, or one lender to another. This transaction takes place when the amount of money being borrowed is unchanged. As soon as you decide to add new money to your mortgage, it would be considered a refinance.

Home equity line of credit

An equity take out means you have made a sizeable dent into your current mortgage, and would like to take some of that money out. It can be spent on whatever you please, acting like your own personal bank.

The kicker is that the money you take out is charged interest, just much lower than a traditional line of credit or loan. Your only obligation for monthly payments is the interest accumulated, depending on how much you carry over month-month.

Conclusion

Just like those pharmaceutical drug advertisements say, ask your doctor if this product is right for you. In this case, your mortgage specialist :p

 

 

10 Things To Consider

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I want to say these are 10 things that your mortgage expert should explain to you, however the reality is that sometimes the message is not clearly explained. So, below are 10 things to consider when looking for a mortgage or refinance, provided by Axiom Mortgage Solutions.

10 Things to Consider

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If for a reason you choose to work with your bank, rather than your broker, these questions are very important to ask before signing a mortgage commitment. Remember that you are working with a professional who is representing an entity, rather than yourself.

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My Story


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Not many people believe this, but when I was a little kid, I didn’t dream of joining a Mortgage brokerage.

Exploring stage

I call this the exploring stage in my life because man did I move in crazy directions. I took Business Administration at NAIT and was instantly fascinated by the finance world. From then on I knew I wanted to pursue a career in that field, but was not sure to what capacity. Right after graduating I applied at a Financial Institution and started my career as a Personal Banker. My dream was to become an investment banker, as I had gotten my mutual fund designation. Unfortunately, after a long year and a lack of mentorship / support, I quit. I felt defeated and thought this is not what I imagined my education was for. So I made a rash, emotional decision… I picked up a skilled trade so that I could make six figures like my fellow 20 year old oil worker friends.

Little did I know, I would only last 30 days. If there’s something I learned from that experience, it was that I was not cut out to work with my hands. Looking back it was quite admirable that my co-workers didn’t literally kill me; let’s just say I wasn’t exactly an asset. However, I did  gain a LOT of respect for those trade workers.

Growing Stage

This is where I started to grow into the mature professional I am today (okay, only occasionally mature). I quit the trade job when I was referred by a friend to join a home builder in the Lake Summerside community. There I made life long friends, received the coaching I needed, and truly grew as a professional. I worked my way to becoming a Sales Representative, where I was primarily selling duplexes and townhouses.

I loved being able to help people make the biggest purchase of their life, and get to experience the process with them. While I enjoyed real estate, I always had that empty void inside me wanting to pursue the financial field. Clients would come in and I would try to prequalify them in the show home!

Wanderlust Stage

After realizing this wasn’t the long-term goal, and summing together a decent sized savings, the timing was perfect. I left the homebuilder, and flew to Italy for a bit of a break. My diet consisted of pizza, gelato, wine and Peroni’s; I was living the dream.
I came back and set my eyes on re-joining a Financial Institution, but this time with the goal of getting into a Mortgage Specialist role in the long-term.

Fresh start, with intention

I joined an Institution that best fit with my values and ethics, and worked there for a year. During my tenure, I learnt a lot about the industry and re-gained confidence in the financial field. I discovered in the process that the best way I could sincerely help clients and fulfill my own values, would be to become a Licensed Mortgage Professional rather than work as a Mortgage Specialist in the bank. This decision wasn’t easy, but being able to shop the entire mortgage market for a client versus only being able to provide products from the institution that I work for was the deciding factor.

The Exciting Stage

In November I started my licensing course and committed a lot of time to it, practically obsessing over it, and passed the final exam at the end of January 18’. I am now a Licensed Mortgage Professional, and created Black Tie Mortgages, which is operated under Axiom Mortgage Solutions. I chose to operate under Axiom because they are the largest independent brokerage in Canada, giving me (in turn my clients) access to over 30 lenders and hundreds of products. They also have one of the best technological software systems in the industry, letting me give the best service to my clients.

 

That’s my story

That’s it thats all folks, my story in a nutshell. You might’ve noticed that I am not afraid to change something if I don’t feel fulfilled. Change is scary, but do you know what is scarier? How fragile and short life can be. As long as you’re growing and following your heart, everything will work out. This career is the best of both worlds for me, and as I am already obsessing with every task I have, I know this was worth the journey.