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The Real Risk of Renewal Isn’t the Rate

Fri, 13 Feb 2026 18:54:59 GMT

The Real Risk of Renewal Isn’t the Rate

When a mortgage renewal date approaches, most homeowners instinctively focus on one thing: the interest rate. It makes sense. Rates are visible, easy to compare, and constantly discussed. They feel like the lever that matters most.

But for many borrowers, the rate itself is not what creates stress at renewal. The real risk is everything that changes quietly in the years leading up to it.

By the time a renewal notice arrives, most households are no longer in the same financial position they were when they first qualified. Income evolves, debt accumulates, credit shifts, and lender rules move in the background. When those changes stack up, the outcome at renewal is often decided before the rate conversation even begins.

Interest rates get the attention, but conditions determine the outcome.

At renewal, lenders are not simply offering a new price on your existing mortgage. They are effectively reassessing whether your financial profile still fits their current guidelines. If it does, renewal is straightforward and competitive. If it does not, options narrow quickly, regardless of where rates happen to be.

One of the most common changes over a five-year term is income. Careers rarely remain static. People change employers, move into commission-based roles, become self-employed, incorporate businesses, take parental leave, or adjust hours for family or health reasons. From a household perspective, these shifts often feel manageable and logical. From a lender’s perspective, they introduce variability. Even when income remains similar in dollar terms, the way it is earned matters. Income that no longer fits neatly into standard categories can trigger additional scrutiny or reduce available lender options at renewal.

At the same time, debt tends to creep in gradually. Very few people take on large amounts of debt all at once. It shows up incrementally. A vehicle loan replaces an old one. A line of credit is used for renovations or lifestyle upgrades. Credit card balances linger longer during periods of higher costs. Each decision feels reasonable on its own, but together they change the overall borrowing picture. At renewal, lenders look at total obligations, not just the mortgage, and higher debt servicing can quietly limit flexibility.

Credit often follows a similar pattern. Most borrowers do not experience dramatic credit events, but small changes add up. Higher utilization during tight cash flow periods, a missed payment during a stressful year, or closed accounts that reduce available credit can all influence how a lender views risk. Credit rarely collapses overnight. It erodes slowly, usually without much attention, until it matters.

Layered on top of all this is the one factor borrowers cannot control: lender policy. Lending rules are not fixed. Stress test interpretations evolve. Risk appetite shifts. Certain income types, property types, or lending programs move in and out of favour. A mortgage that was easy to place five years ago may sit outside today’s guidelines through no fault of the borrower. The mortgage contract stays the same, but the rules around it do not.

This is why waiting until renewal to think about renewal is usually too late. Renewal is a deadline, not a planning window. By the time the letter arrives, income history is established, debt is already on the books, credit reflects past behaviour, and policy changes are already in place. At that point, the focus shifts from optimizing choices to managing constraints.

The homeowners who experience the smoothest renewals tend to think about renewal years in advance, even if they never consciously label it that way. They maintain flexibility by paying attention to how income is structured, how debt accumulates, how credit is used, and how their mortgage fits within a changing lending landscape. They ask whether their mortgage would still be easy to renew if something changed, not just whether the rate looks attractive today.

The takeaway is not that interest rates do not matter. They do. But they are rarely the deciding factor. The real risk of renewal is discovering, too late, that your options narrowed while your attention was fixed elsewhere.

Thinking five years ahead does not require predicting the future. It requires recognizing how much can change, and making decisions that preserve choice rather than reacting when choice is already limited.

Disclaimer: The information in this article is provided for general educational purposes only and does not constitute financial, legal, or tax advice. Readers should consult qualified professionals before making decisions based on this content.

Are Mortgage Rates Going to Drop in 2025?

schunkerr@gmail.com (Rodney Schunker) — Tue, 04 Feb 2025 18:18:50 GMT

Are Mortgage Rates Going to Drop in 2025? How U.S. Tariffs Could Impact You

Is the Economy Going to Crash? What Canadian Homebuyers Need to Know

With new U.S. tariffs on Canadian goods already in place —and Canada retaliating with its own tariffs—many Canadians are asking:

● "Are mortgage rates going to go down in 2025?"

● "Is the economy going to crash?"

● "How will these tariffs impact home prices and affordability?"

These are valid concerns, especially for homebuyers, homeowners renewing their mortgages, and those considering refinancing. While we can’t predict the future with certainty, the Bank of Canada (BoC) is widely expected to cut interest rates in 2025 to help offset economic uncertainty. However, rising inflation and shifting trade policies could complicate how quickly and how much rates actually drop.

Here’s what you need to know about how these tariffs could affect Canada’s economy, mortgage rates, and home affordability in the coming months.

Will Mortgage Rates Go Down in 2025?

The Bank of Canada has been signaling rate cuts for months, but how low they go—and how quickly—depends on several factors:

● Tariffs are slowing economic growth – The new U.S. tariffs on Canadian goods, and Canada's retaliatory tariffs on U.S. imports, are putting pressure on businesses and increasing costs for consumers. If economic growth slows significantly, the BoC may lower rates to keep borrowing and spending active.

● Inflation is still a concern – Higher tariffs often lead to higher prices for goods, which could drive up inflation. The BoC has to balance rate cuts with the risk of rising inflation, which could slow the pace of cuts.

● Global uncertainty adds risk – The U.S. election, ongoing geopolitical tensions, and financial market fluctuations all add unpredictability. If the economy worsens, rate cuts may come sooner and deeper than expected.

What Does This Mean for You?

Rates are expected to decrease , but we’re in uncertain times. If you're thinking about buying a home, refinancing, or renewing your mortgage, the best approach is to lock in now with flexibility to adjust later .

Should You Lock in a Mortgage Rate Now or Wait?

Many homebuyers and homeowners are wondering whether they should lock in a mortgage rate now or wait for rates to drop further in 2025. The good news? Most lenders allow you to lower your rate if rates drop before closing.

Here’s why locking in now is a smart move:

● Locking in protects you from unexpected rate hikes – While rates are projected to drop, inflation or unexpected economic shocks could slow cuts or even cause rates to rise. Locking in now ensures you’re covered.

● Many lenders allow a rate drop before closing – If rates go lower before your mortgage is finalized, most lenders will adjust your rate accordingly. This gives you peace of mind knowing you're getting the best possible deal.

● Economic uncertainty makes waiting risky – Tariffs, inflation, and global trade tensions all create uncertainty. Locking in now ensures you don’t miss out on today's competitive rates while still giving you room to adjust.

Is the Economy Going to Crash? What This Means for Canadian Homebuyers

While Canada’s economy is facing major uncertainty , most experts do not expect a full-blown crash. Instead, we’re likely to see:

● Slower economic growth due to rising costs from tariffs and inflationary pressures.

● Lower interest rates as the BoC tries to stimulate economic activity.

● A cooling housing market in some regions, as affordability challenges affect demand.

The best thing you can do right now is stay informed and make proactive mortgage decisions that protect your financial future.

Let’s Talk About Your Mortgage Options

Navigating the mortgage market in uncertain times can be confusing, but you don’t have to do it alone. Whether you’re looking to buy a home, renew your mortgage, or refinance for a better rate , I can help.

Capital Gains Tax Rules: Are They Changing?

schunkerr@gmail.com (Rodney Schunker) — Thu, 16 Jan 2025 20:03:19 GMT

With all the uncertainty surrounding Canada’s proposed capital gains tax changes, many property owners are asking, "Do I have to pay capital gains if I sell my house?" or "Should I sell my investment property before the tax rules change?"

In June 2024 , the federal government proposed increasing the capital gains inclusion rate —the portion of capital gains that is taxable. This change could significantly impact investors and property owners selling secondary residences, rental properties, or cottages.

But here’s the challenge: the rules haven’t been finalized yet. As Jamie Golombek explains in a recent Financial Post article, “ Uncertainty remains as to what the final capital gains tax rules will look like, or even if they will be implemented at all. ”

Despite this uncertainty, the Canada Revenue Agency (CRA) has announced it will proceed with collecting taxes based on the proposed higher inclusion rate until a final decision is made. This means that even if you sell now, you could still face a larger tax bill. If the rules are later changed or rejected, the CRA may adjust tax filings—but in the meantime, selling could cost you more than you expect.

The good news? Selling isn’t your only option. If you need access to cash or want to better manage your finances, refinancing or exploring alternative lending solutions could provide the flexibility you need—without triggering a large tax bill.

Ways to Access Cash Without Immediately Selling

If you need funds but aren’t sure whether selling is the best choice, here are some flexible ways to access cash while holding onto your property:

1. Refinancing Your Mortgage

● Access tax-free cash by using your home equity.

● Adjust your mortgage terms to fit your financial needs.

● Keep your property and continue building long-term wealth.

2. Alternative and Private Lenders

● Flexible lending options with easier qualification.

● Quick access to funds without selling your property.

● Short-term solutions to manage cash flow.

3. Reverse Mortgage (For Canadians 55+)

● Access tax-free equity with no monthly payments.

● Stay in your home while improving cash flow.

● Ideal for retirees on fixed incomes.

4. No-Payment Loan Options

● Interest-only or deferred payment loans.

● Manage expenses without immediate financial pressure.

● A flexible option to bridge financial gaps.

Comparing Your Options: Sell or Keep Your Property?

It’s important to weigh the pros and cons before making a decision. Here’s a simple comparison of selling versus other financing strategies:

Whether refinancing, working with private lenders, or considering a reverse mortgage, understanding every option is essential. I work closely with your accountant to create a strategy that helps you minimize taxes and achieve both your short- and long-term financial goals.

I offer a clear, side-by-side comparison of all your financing options so you can make the best decision for your financial future.

Know someone else who’s unsure about what to do? Share this—many Canadians don’t realize they have options beyond selling.

Let’s talk about what works best for you.

Understanding 30 Year Amortization

schunkerr@gmail.com (Rodney Schunker) — Mon, 02 Dec 2024 16:02:49 GMT

When it comes to financing a home, amortization is a key term mortgage brokers often discuss. While shorter amortization periods are common in Canada, the concept of a 30-year amortization has gained traction among some buyers and brokers.

What is a 30-year Amortization?

In simple terms, amortization refers to the length of time it takes to pay off a mortgage in full, assuming consistent payments and no refinancing. A 30-year amortization means spreading out payments over 30 years, resulting in smaller monthly obligations. However, this also increases the total interest paid over the life of the loan compared to shorter amortizations like 25 or 20 years.

While this structure can be attractive to buyers looking for lower monthly payments, it’s important to weigh the trade-offs carefully.

The Pros of a 30-Year Amortization

1) Lower Monthly Payments
Spreading payments over 30 years reduces the financial strain of high monthly payments. This can be especially appealing for first-time buyers or those purchasing in high-priced markets.

2) Improved Affordability
Lower monthly payments might enable buyers to qualify for larger loans, opening up more options in competitive real estate markets.

3) Flexibility in Cash Flow
With smaller payments, borrowers may have more room in their budgets to save, invest, or handle other expenses.

4) Short-Term Financial Security
During uncertain times or economic downturns, the ability to reduce out-of-pocket costs can provide peace of mind for homeowners.

The Cons of a 30-Year Amortization

1) Higher Total Interest Costs
Extending a mortgage term means paying significantly more interest over time. This is a crucial factor for brokers to highlight to clients.

2) Slower Equity Growth
With lower monthly payments, the principal portion of each payment is smaller, which means it takes longer to build equity in the home.

3) Potential for Financial Complacency
While lower payments may ease the initial burden, it’s important to avoid becoming too comfortable and neglecting long-term financial planning.

When Does a 30-Year Amortization Make Sense?

A 30-year amortization isn’t for everyone, but there are scenarios where it can be a practical choice:

● First-Time Buyers : Those entering the housing market for the first time may find this option helpful in managing affordability.

● High-Cost Real Estate Markets : Buyers in cities like Vancouver or Toronto might rely on the longer term to make homeownership attainable.

● Temporary Financial Flexibility : For buyers anticipating income growth in the future, starting with lower payments can provide breathing room.

● Strategic Investors : Real estate investors may opt for longer amortizations to maximize cash flow on rental properties.

Conclusion

A 30-year amortization offers flexibility but comes with trade-offs that require careful consideration. Mortgage brokers play a vital role in guiding clients through this decision by balancing affordability with long-term financial health.

Ready to help your clients make informed choices? Start the conversation about 30-year amortizations today!

Buying a Home in Canada: A Guide for Newcomers

schunkerr@gmail.com (Rodney Schunker) — Wed, 16 Oct 2024 16:17:37 GMT

Moving to a new country is a big step, and finding a place to call your own can make settling in even more rewarding. For newcomers to Canada, the journey of purchasing a home can feel both exciting and overwhelming. This guide is here to help you navigate the process of buying a home in Canada, providing a clear roadmap and essential tips to make your homeownership dreams a reality.

Canada Mortgage and Housing Corporation (CMHC), Canada's national housing agency, has been supporting Canadians, including new immigrants, in finding affordable and suitable homes for over 70 years. Their expertise and resources will be referenced throughout this guide to offer valuable insights.

Step 1: Determine Your Budget and Needs

Before you start house hunting, it's crucial to understand your financial capacity.

Determine What You Can Afford

● Consider all homeownership expenses: This includes not just the purchase price but also property taxes, heating costs, maintenance, and potential renovations.

● Consult Financial Experts: Lenders and mortgage brokers are specialists who can help you determine a realistic budget and pre-approve you for a mortgage.

● Use Online Resources: CMHC offers helpful calculators and worksheets on their website to assist you in estimating your maximum affordable home price and monthly payments.

Define Your Home Requirements

● Think about your current and future needs: Consider factors like family size, desired features, lifestyle preferences, and proximity to work, schools, and amenities.

● Explore different types of homes: Canada offers various housing options, from condominiums and townhouses to detached homes. Research the pros and cons of each type to find the best fit for you.

● Utilize CMHC Resources: CMHC provides comprehensive guides and checklists to help you define your ideal home features and compare different properties.

Step 2: Assemble Your Team and Start Your Search

Buying a home involves multiple professionals. Surround yourself with experts who can guide you through the process.

Find a Real Estate Agent:

● Seek Recommendations: Ask friends, family, lenders, or mortgage brokers for referrals to reputable real estate agents.

● Research Agents: Look at real estate listings, online platforms like www.mls.ca, or visit open houses in your preferred neighborhoods.

● Choose an Experienced Agent: "Real estate agents will listen to your needs, show you suitable homes to visit, and negotiate on your behalf to help you get the best possible deal," according to CMHC.

Get Pre-Approved for a Mortgage:

● Consult Lenders or Mortgage Brokers: Discussing your financial situation and getting pre-approved for a mortgage helps you understand how much you can borrow.

● Explore CMHC Mortgage Loan Insurance: If you have a limited credit history or a smaller down payment, CMHC's Mortgage Loan Insurance can help make homeownership more accessible.

● Mortgage Pre-Approval Benefits: "Pre-approval means that your lender commits to giving you a mortgage up to a specified amount, at certain terms and conditions, including the interest rate…That way, you know exactly how much you can spend on your new home".

Engage Other Professionals:

● Find a Lawyer or Notary: A legal professional will ensure a smooth property transfer and handle all necessary documentation.

● Consider a Home Inspector: A home inspection provides a detailed assessment of the property's condition, helping you identify potential issues before closing the deal.

Step 3: The Offer, Negotiation, and Closing

Once you've found a home you love, it's time to make an offer and navigate the final stages of the purchase.

Making an Offer:

● Work with your real estate agent: They will help you prepare an "Offer to Purchase," a legal document outlining the terms of your offer, including the purchase price, deposit, closing date, and any conditions.

● Include Contingencies: Conditions such as a satisfactory home inspection and financing approval protect your interests.

Negotiating the Offer:

● Be prepared for counter-offers: The seller may propose changes to your initial offer, leading to a negotiation process.

● Stay Informed and Seek Advice: Consult your real estate agent and lawyer throughout the negotiation to ensure a fair and favorable outcome.

Closing the Deal:

● Final Steps: On closing day, you'll finalize the purchase agreement with your lawyer, transfer funds, and receive the keys to your new home.

● Understand Closing Costs: Be prepared for additional expenses beyond the purchase price, such as legal fees, land transfer taxes, and adjustments for prepaid property taxes.

Building Your Credit History as a Newcomer

One of the challenges newcomers face when buying a home in Canada is establishing a credit history. Lenders rely on this information to assess your creditworthiness.

CMHC Offers Alternative Solutions:

● Insurers typically recognizes non-traditional credit history: They consider factors like rent payments, utility bills, and savings history when assessing your ability to manage credit.

Tips to Build Your Canadian Credit:

● Open a bank account and actively use it.

● Obtain and responsibly use a credit card.

● Pay all bills on time, including rent, utilities, and other recurring expenses.

The Benefits of Working with a Mortgage Broker

Navigating the Canadian mortgage landscape can be complex, especially for newcomers.

A Mortgage Broker Can Simplify the Process by:

● Providing expert advice: Mortgage brokers are well-versed in the intricacies of the Canadian mortgage market and can guide you through the different mortgage options available.

● Finding the best rates and terms: They work with multiple lenders, allowing them to compare rates and negotiate on your behalf to secure the most favorable mortgage terms.

● Saving you time and effort: Mortgage brokers handle the legwork of finding and applying for a mortgage, streamlining the process and reducing stress for you.

A New Chapter Begins

The journey of buying a home in Canada might seem daunting at first, but with the right information and support, it can be an incredibly fulfilling experience.

Here is a quick checklist to keep you on track:

● Determine your budget and home needs.

● Get pre-approved for a mortgage.

● Find a reputable real estate agent.

● Engage a lawyer or notary.

● Consider a home inspection.

By following these steps and seeking expert guidance, you can confidently navigate the process and achieve your dream of homeownership. Partnering with a trusted mortgage broker can make the journey smoother and ensure you're making informed decisions.

"We were so excited to finally buy our own home in Canada," shared a family who recently purchased their first home with the help of a mortgage broker. "The broker made the process so much easier for us. We felt confident and supported every step of the way."

Remember, your dream of owning a home in Canada is achievable. With the right resources, planning, and support, you can soon be settling into your new home and enjoying all that Canada has to offer.

A look into 2025.

schunkerr@gmail.com (Rodney Schunker) — Thu, 15 Aug 2024 19:49:27 GMT

2025 Reality Check: It’s not good.

The Canadian real estate market is on the cusp of a significant shift. As we approach 2025, homeowners, especially investors and those with second homes purchased during the COVID-19 pandemic, face a challenging reality. Rising interest rates are set to dramatically increase mortgage payments, potentially making those once-affordable properties a financial burden.

The Ticking Time Bomb

Many homeowners are sitting on properties purchased during the COVID-19 frenzy, when low interest rates and high demand drove prices to record highs. Now, with rates nearly tripling and the market cooling, these properties may no longer be financially viable. The prospect of hundreds, even thousands, of dollars in additional monthly payments is forcing many to rethink their strategies.

A Flood of Inventory?

As homeowners grapple with higher payments, some may be forced to sell, potentially flooding the market with inventory. However, the current market, with rates hovering around 4.5%, is drastically different from the COVID-19 boom. The demand for second homes and rental properties has dwindled, and buyers are scarce.

The Rental Dilemma

Selling a rental property with existing tenants poses additional challenges. Strict regulations protect tenants, making it difficult to increase rents or evict them to facilitate a sale. Potential buyers would need a substantial down payment to make the numbers work or be willing to purchase the property for owner-occupied use.

Prepare for the Future

As a mortgage broker, it's my duty to guide you through these turbulent times. While I can't offer a one-size-fits-all solution, I can provide a personalized assessment of your specific situation.

A Complimentary Review

I'm offering a complimentary review of your mortgage and property outlook for 2025. Together, we'll explore your options, whether it's renewing, refinancing, or selling. Let's give you the time and information you need to make informed decisions about your financial future.

Don't wait until it's too late. Contact me today to schedule your complimentary review.

Remember: Every situation is unique. Let's work together to navigate the changing market and ensure your financial well-being.

The Impact of Rising Interest Rates

schunkerr@gmail.com (Rodney Schunker) — Thu, 01 Aug 2024 17:54:11 GMT

As we navigate through 2024, the Canadian mortgage and real estate market faces a dynamic landscape marked by rising interest rates. This trend, driven by the Bank of Canada's efforts to curb inflation, has significant implications for homebuyers, homeowners, and real estate professionals. Understanding these changes is crucial for making informed decisions in this evolving market.

Understanding the Rate Hikes

The Bank of Canada has incrementally increased interest rates over the past year, with the goal of stabilizing the economy and controlling inflation. As of mid-2024, the overnight rate stands at 4.75%, a significant jump from the near-zero rates seen during the pandemic. These hikes aim to temper the economy and bring inflation back to the target range of 2%.

For the mortgage market, this translates to higher borrowing costs. Variable-rate mortgages, which fluctuate with the central bank's rate, have seen immediate increases. Fixed-rate mortgages, which are influenced by bond yields, have also climbed, albeit at a slower pace. Prospective buyers and current homeowners with adjustable-rate mortgages are directly feeling the impact of these changes.

Impact on Homebuyers

For potential homebuyers, rising interest rates mean higher monthly mortgage payments. This can significantly affect affordability, particularly for first-time buyers. For example, a family looking to buy a $600,000 home with a 20% down payment and a 25-year amortization period might have secured a 2.5% mortgage rate in early 2022, resulting in a monthly payment of approximately $2,150. With rates now closer to 5%, that same mortgage would require monthly payments of about $2,790 – an increase of over $600 per month.

This rise in monthly costs has pushed many buyers to reconsider their budgets or delay purchasing altogether. Additionally, stricter mortgage stress tests, which require borrowers to qualify at higher rates, further reduce the borrowing capacity of many Canadians.

Impact on Homeowners

Existing homeowners with variable-rate mortgages are also feeling the pinch. As rates rise, so do their monthly payments. Some may find themselves stretched thin, especially if their budget is already tight. Fixed-rate mortgage holders are insulated until their renewal date, but they too face higher rates when their term expires.

Homeowners looking to refinance may find it more challenging to secure favorable terms. Those with significant equity in their homes might consider home equity lines of credit (HELOCs), though these are also subject to higher interest rates. It’s essential for homeowners to review their financial situation and explore options such as locking in rates or extending amortization periods to manage higher payments.

Effects on the Real Estate Market

The broader real estate market is also adjusting to these changes. Higher interest rates generally lead to a cooling effect on home prices, as fewer buyers can afford to enter the market. In some Canadian cities, particularly those that saw rapid price increases during the pandemic, there has been a noticeable slowdown in sales activity and a stabilization or even decline in prices.

For sellers, this means potentially longer times on the market and the need for more realistic pricing. The days of bidding wars and offers well above asking price are diminishing, leading to a more balanced market.

Opportunities Amidst Challenges

Despite these challenges, there are opportunities for savvy buyers and investors. The cooling market can provide a window to purchase properties that were previously out of reach. Additionally, those with strong financial footing and good credit can negotiate better terms with lenders.

Real estate professionals and mortgage brokers play a crucial role in guiding clients through this complex environment. By offering insights, personalized advice, and creative solutions, they can help buyers and homeowners navigate higher rates and make strategic decisions.

Future Outlook

Looking ahead, the trajectory of interest rates will depend on various economic factors, including inflation trends, employment rates, and global economic conditions. The Bank of Canada has indicated a data-dependent approach, meaning rates could stabilize or even decrease if inflation pressures ease.

For now, Canadians should prepare for a period of higher rates and potentially slower market activity. Staying informed, consulting with professionals, and carefully planning financial moves are essential steps in this uncertain landscape.

In Conclusion ,

The rise in interest rates marks a significant shift in the Canadian mortgage and real estate market. While it presents challenges, particularly in terms of affordability and monthly payments, it also brings opportunities for those prepared to adapt. By understanding the impacts and seeking professional advice, Canadians can navigate this environment and make informed decisions for their financial futures.

Financial Freedom: How The Rich Get Richer

schunkerr@gmail.com (Rodney Schunker) — Mon, 15 Jul 2024 20:29:50 GMT

What does financial freedom mean to you? It's a question that might elicit a wide range of responses, and that's the beauty of it – financial freedom is a deeply personal concept.

What does financial freedom mean to you? It's a question that might elicit a wide range of responses, and that's the beauty of it – financial freedom is a deeply personal concept. For some, it's the dream of retiring early, spending endless days on the beach, cherishing time with grandchildren, or perfecting their golf swing. Others see it as having the ability to work remotely or stay at home with their children during their formative years. Some may quantify it with a specific savings goal, a financial cushion that enables them to explore the world, invest in their future, pursue higher education, or achieve a flexible work-life balance. Ultimately, financial freedom represents security, the opportunity to live life on your own terms.

But how do people attain this elusive state of financial freedom? It's often said that "the rich get richer," but what strategies do they employ to maintain and expand their wealth? In my experience, which has involved processing numerous mortgage applications and working closely with clients from various financial backgrounds, I've observed some common threads among those who have achieved financial success.

Leveraging Wealth for Growth

One of the most striking observations is that financially prosperous individuals frequently leverage their capital or utilize the bank's money to generate more income. Even when they possess the means to purchase a property outright, many opt for a mortgage. This may seem counterintuitive, especially in a high-interest rate environment, but even the wealthy appreciate the value of liquidity and the potential to diversify their investments. By financing a property, they can allocate less capital upfront. Leveraging property allows them to tap into home equity, preserving capital for future endeavors. This approach acknowledges the ebb and flow of interest rates and accepts the risk of carrying a substantial loan because the anticipated returns on alternative investments, such as the stock market, personal and commercial real estate, private loans, new businesses, partnerships, often outweigh the cost of borrowing.

In essence, the wealthy understand that stashing all their capital in a mortgage-free property isn't always a smart move. While having no mortgage payments and interest expenses might seem like savings, it may not be as profitable as directing that capital into an investment vehicle that appreciates, grows, and generates additional income. It's the classic adage of making your money work for you, rather than parking it in an idle asset.

Tax Savings through Home Equity

Financially successful individuals have a comprehensive approach to managing their resources, which includes leveraging the equity in their homes as a source of income. Many of these individuals are self-employed, providing them with the flexibility to manipulate their tax strategies to their advantage. Instead of withdrawing income from their business accounts, incurring taxes on those funds in the current fiscal year, they turn to alternative methods for tax optimization. One frequently used tactic is securing a line of credit against their home, and if feasible, against a rental property, since the interest is often tax-deductible. By harnessing this tax-free equity, they can either pay themselves or make significant purchases, effectively reducing their overall tax liability.

Moreover, these financially astute individuals understand that real estate is typically a long-term investment that tends to appreciate over time. They leverage their properties not only as a source of income but as a strategic financial tool. This approach provides them with the flexibility to access capital when needed, hold onto their investments as they appreciate, and capitalize on the gains when the timing is ideal. The dual use of real estate investments embodies the long-term vision that many financially successful individuals adopt, emphasizing the importance of patience and strategic planning in building and preserving their wealth.

The synergy between these practices results in a well-rounded financial strategy that not only builds wealth but also optimizes tax savings. It's crucial to note that I'm not an accountant, and these strategies should be developed in consultation with a qualified tax professional. However, the principle of leveraging home equity for tax savings, combined with prudent financial management, is a proven strategy among many financially successful individuals. These practices underline the significance of thinking creatively and strategically about your finances to achieve your financial goals and create a future that aligns with your dreams and aspirations.

In conclusion

Financial freedom is a highly individualized concept, but it generally revolves around achieving security, flexibility, and the ability to live life on one's own terms. To reach this state, many successful individuals employ strategies such as leveraging their wealth for growth and optimizing their tax situation through home equity. The rich may indeed get richer, but they do so through careful financial planning and the smart allocation of their resources. Financial freedom is within reach for anyone willing to invest the time and effort to make their money work for them and create a future that aligns with their dreams and aspirations.

Finding Your Perfect Home Type

schunkerr@gmail.com (Rodney Schunker) — Thu, 18 Apr 2024 16:06:41 GMT

When it comes to finding your perfect home, there are so many more options for potential homeowners! From a single-family dwelling to a townhouse to a modular home, the choices are seemingly endless. But, before you start widening your search, let’s take a look at what makes these home types different - and which one is perfect for you!

Single-Family Detached: This is a stand-alone house that sits on its own lot and is the most common type of home. As these are detached dwellings, they provide more privacy with less noise from neighbours. They also tend to be larger dwellings (complete with a yard!) which gives you the space and freedom to really make it your own.
Single-Family, Semi-Detached: These homes are suitable for a single family and are typically attached to another house on one side. Semi-detached homes are often more affordable to both buy and maintain. With this affordability does come somewhat less privacy and protection from noise due to the shared walls on one side.
Duplex: These structures contain two single-family units on separate levels and are great options for individuals looking to reduce home purchase and carrying costs - live in one unit, rent the second! This type of home also provides unique flexibility for older families, giving you the option to move adult children or aging parents into the second unit as needed. As expected, these units offer less privacy than single-dwelling homes and can sometimes have increased noise through the floor or ceiling.
Townhouse or Row House: These are a row of single-family homes, which are connected on both sides to the next home (excluding the end unit, which is only connected on one side). Townhouses typically have private yards but, in some cases, it may be freehold or condo-style with shared ownership rights and responsibilities. However, these homes are typically more affordable and easier to maintain, though you may have to consider strata or maintenance fees. Similarly to duplexes, these home types have less privacy and may have noise from shared walls.
Condominium: These are low- or high-rise buildings containing multiple apartment units. Condos are excellent starter homes for single adults, or couples, as they are affordable and require minimal maintenance. Some buildings even have shared amenities, such as a fitness center or swimming pool or party room. QUICK TIP: Always check for these amenities and if you would be interested in using them. If not, why pay for them? In this case, you might be better off finding a condo with less amenities and lower strata fees.
Modular or Mobile Home: Growing in popularity are modular homes, which are prefabricated homes delivered to a home-site for installation. These homes are owned by the individual, while the land it sits on could be rented or owned outright. These types of homes are highly affordable and extremely flexible; if you relocate, you can sell the mobile home with the property or keep the home and relocate it! If renting land in a mobile home community, there are also those costs to consider.

Finding the right home to suit your needs means considering your lifestyle and budget now, as well as where you’ll be a few years down the road. Want more information or need help deciding the best option for you? Contact me today to learn more about your options when it comes to buying and owning a home.

Contact me today!

Rodney Schunker | Principal Broker (Lic. M12000165)

Cell: 416-697-6423 | Web: www.kingdommortgages.ca

Email: schunkerr@gmail.com

Kingdom Mortgages Inc Brokerage # 13608

Each office independently owned and operated. Proud member of Mortgage Centre Canada.

Why you should invest in a Home Inspection.

schunkerr@gmail.com (Rodney Schunker) — Fri, 05 Apr 2024 22:20:19 GMT

While home inspections might not be the most exciting part of your home buying journey, they are extremely important and can save you money and a major headache in the long run.

In a competitive housing market, there can sometimes be pressure to make an offer right away without conditions. However, no matter how competitive a market may be, you should never skip out on things designed for buyer protection - such as a home inspection. You may have a good eye for décor and love the layout of your potential new home, but what is under the surface is typically where headaches can lie. We have all heard the expression “don’t judge a book by its cover” so why would you make the most important purchase in your life without checking it out?

In fact, there are five reasons that a home inspection might just be the best $300-$500 you ever spend:

It Provides an “Out”: When buying a new house, it is always best to avoid taking chances. While a house may look great on the surface, hidden structural issues such as cracked foundation or roof damage can easily turn into expensive repairs. A home inspection can help reveal any large and/or hidden issues, which can often provide an ‘out’ for the buyer. If you find something that will cost a considerable amount to replace or repair you can go back to the seller’s agent and ask for a reduction in the price. A leaky roof may cost a few thousand to replace. Perhaps the seller would split the cost with you? It’s worth asking. If the price cannot be re-negotiated if issues come to light, then it is best to just walk away on the basis that the home will cost you too much in the long run.
Confirms Safety and Structural Integrity: Another benefit of having a home inspection is not only to find issues, but also to confirm structural integrity. During an inspection, the inspector will review everything from the attic to the furthest reaches of the basement and will look for things like mold, holes in the chimney, saggy beams or improper wiring.
Reveal Illegal Additions or Installations: Similarly to determining any safety and structural issues, home inspections can also reveal hidden additions or DIY installations that may cause trouble down the road. If the seller wired the house improperly or used substandard materials, it not only could cost you big in the future but it could even null and void your home insurance should something happen!
Forecast Future Costs: A home is an ongoing expense, much like a car. Unless it is brand new, there will be regular maintenance and updates required to replace things when they become old and inefficient. For instance, water heaters typically last for 6-10 years, the life of a good roof is around 20 years, while furnaces can last up to 25 years. The home inspection report will include an estimate on the remaining life for each of these big-ticket items, which will give you a heads up on future expected costs and provide you time to save for their eventual replacement.
Peace of Mind: Finally and perhaps most importantly, getting a home inspection is important for your own peace of mind. A home is a huge investment, and one that you will be paying off for 20 or 30 years. It is much easier to feel good about your investment after you have gone through a home inspection and you know that the house is safe and that you won’t run into any surprise problems down the road. While a home inspection isn’t free, peace of mind is priceless and a few hundred bucks is worth it!

If you’re not sure how to get started with your home inspection, please don’t hesitate to reach out to me directly for some help or a few referrals!

Contact me today!

Rodney Schunker | Principal Broker (Lic. M12000165)

Cell: 416-697-6423

Web: www.kingdommortgages.ca

Email: schunkerr@gmail.com

Kingdom Mortgages Inc Brokerage # 13608

Each office independently owned and operated. Proud member of Mortgage Centre Canada.

How to talk to your kids about finances

schunkerr@gmail.com (Rodney Schunker) — Fri, 15 Mar 2024 15:49:48 GMT

A vast majority of parents are currently supporting their children (ages 18-35 years) financially!

A vast majority of parents are currently supporting their children (ages 18-35 years) financially, spending an average of $5,623 per year ! This is an extensive additional cost that most parents cannot afford. In fact, over 30% of parents are seeing delayed retirement in order to help kids with post-secondary costs and are facing an inability or delayed timeframe in paying off their own debts.

As much as parents want to help their kids, it should not be done at the jeopardy of your own future. In fact, when it comes to teaching your children about money, there is no better time to start than now!

Financial independence is a critical skill for future success that your children will not learn anywhere else. Not only does financial literacy help your children have more success in life, but it allows them to move out sooner and it avoids delaying retirement!

So, how do you teach your children about money?

Review Your Attitude Towards Money

The first and most important thing is to examine your own attitude towards money. Are you a penny pincher? Frivolous spender? Do you buy on impulse, or take a long time to make a purchase? How much debt do you have? Your financial habits will shape your children’s. To ensure that you are setting them up for their best financial future, parents need to consider what messages they are sending with their own money habits.

Give Your Children an Allowance

Providing an allowance to your children (especially one exchange for chores) is an age-old way of teaching your kids about money. A good guideline is $0.50 to $1.00 per year of your child’s age. For a 10-year-old, this would be $5 to $10 per week.

Teach Your Child to Save

If you are giving your child $10 per week in allowance for chores, encourage them to put even just $0.50 per week into a piggy bank. In six months, show them how much money they have saved and talk to them about why it is important, and what they can do with that larger amount now.

Encourage Kids to Think Before They Buy

While it’s hard to get a 10-year-old excited about an RRSP, there are other ways to help them plan ahead. One is to encourage them to think about their purchases before they commit. They saw a toy on TV they have to have? Teach them about how advertisements are designed to make you want something. Ask them to wait a week. Do they still want it?

Involve Your Children in the Family Finances

It is more valuable than you might think to let your kids see and hear you discuss financial planning; let them be part of opening and paying bills or planning vacations. Explain why you pay certain things and discuss affordable choices. This helps them be part of the conversation and will work to instill a sense of financial responsibility as they grow up.

Remember, you are the best example to your children about money. Don’t be afraid to share the ups and downs with them. Be patient with your kids, but don’t give up! The best thing you can do as a parent is to promote financial security and independence.

Contact me today!

Rodney Schunker | Principal Broker (Lic. M12000165)

Cell: 416-697-6423 | Web: www.kingdommortgages.ca

Email: schunkerr@gmail.com

Kingdom Mortgages Inc Brokerage # 13608

Each office independently owned and operated. Proud member of Mortgage Centre Canada.

Mortgages for the Self-Employed

schunkerr@gmail.com (Rodney Schunker) — Fri, 01 Mar 2024 23:19:06 GMT

Obtaining a mortgage as a self-employed individual, however, comes with its own set of rules.

Did you know? Approximately 15%+ of Canadians are self-employed, making this an important segment in the mortgage and financing space. When it comes to self-employed individuals seeking a mortgage, there are some key things to note as this process can differ from the standard mortgage.

For self-employed individuals with an established business seeking best rate financing, the business must have a minimum of two years of history. This includes self-employed applicants who own a full or part-time business and covers sole proprietorships, incorporations, and partnerships.

In order to obtain a mortgage when self-employed, most lenders require Revenue Canada personal tax Notices of Assessment and respective T1 Generals be included with the mortgage application for the previous two years. For individuals in Quebec, you will be required to provide NOAs (Notice of Assessments) from Revenue Canada, Relevé 1 from Revenue Quebec and T1 Generals. Typically, individuals who can provide these documents - with acceptable income levels – should have little issue obtaining a mortgage product and rates available to the traditional borrower.

One primary benefit of being self-employed is the privilege of writing your income down. You enjoy less tax because you get to write-off expenses, but you lose borrowing power. It is important to be aware of this because you can either pay less tax or have more borrowing power.

As a self-employed individual, you will fall into one of the following three categories:

You can provide the tax documents and you have a high enough income, so there aren’t any initial impediments to your application.
You can provide the Revenue Canada / Revenue Quebec documents, but don’t have enough stated income due to write-offs. In this case, you need a minimum of 10% down with standard interest rates.

If you put down less than 20% down payment when relying on stated income, the default insurance premiums are higher.

You cannot provide the Revenue Canada / Revenue Quebec documents, which means you will be required to put down 20% and may have higher interest rates.

For a typical borrower, lenders often require a letter of employment and recent pay stubs to confirm and calculate income. When it comes to calculating income for a self-employed application, lenders will either take an average of two years’ income or your most recent annual income if it’s lower. When it comes to submitting your mortgage application, you will need to provide the standard documentation in addition to the following:

For incorporated businesses - two years of accountant prepared financial statements (Income Statement and Balance Sheet)
Two most recent years of Personal NOAs (Notice of Assessments) and tax returns
Potentially 6-12 months of business bank statements
Confirmation that HST/Source Deductions are current

If you’re self-employed and looking to qualify for a mortgage, or simply have some questions for when you are ready in the future, please don’t hesitate to reach out today! I would be happy to work with you to ensure you have the necessary documentation, understand your options and can obtain a pre-approval to help you understand how much you qualify for!

Rodney Schunker | Principal Broker (Lic. M12000165)

Cell: 416-697-6423 | Toll Free: 1-855-697-6423

Fax: 1-855-787-7723 | Web: www.kingdommortgages.ca

Mail: Unit 304 – 2250 Bovaird Dr E, Brampton, Ontario, L6R0W3

Email: schunkerr@gmail.com or rschunker@kingdommortgages.ca

Kingdom Mortgages Inc Brokerage # 13608

Each office independently owned and operated. Proud member of Mortgage Centre Canada.

7 Steps for Mortgage Prep

schunkerr@gmail.com (Rodney Schunker) — Sat, 24 Feb 2024 23:47:55 GMT

Here are some great tips around the 7 steps of mortgage prep!

Step 1 - Your Credit Score

Whether you qualify for a mortgage through a bank, credit union or other financial institution, you should be aiming for a credit score of 680 for at least one borrower (or guarantor), especially if you are putting under 20% down. If you are able to make a larger down payment of 20% or more, then a score of 680 is not required.

If your credit score does not meet the minimum requirements, there are a number of things you can do to improve it and your future financial success, including:

Paying your bills in full and on time. If you cannot afford the full amount, try paying at least the minimum required.
Pay off your debts (such as loans, credit cards, lines of credit, etc.) as quickly as possible.
Stay within the limit on your credit cards and try to keep your balances as low as possible.
Reduce the number of credit card or loan applications you submit.
Considering an Alternative Lender (or B Lender) if you are struggling with credit issues.

I can help review your credit score and provide you with options for your mortgage needs.

Step 2 - Your Budget

When considering your budget, it is important to look at the purchase price budget, as well as your cash flow budget. Being house rich and cash poor makes for a no-fun home! The home price based on your cash flow budget may be dramatically different from the budget home price you qualify for. Not only does having a budget help you to understand your purchase price range and help you to find an affordable home, but it can also help you to see any gaps or opportunities for future savings. This will be instrumental when you become responsible for mortgage payments.

Step 3 - Your Down Payment

The ideal down payment for purchasing a home is 20%. However, we understand in today’s market that is not always possible. Therefore, it is important to note that any potential home buyer with less than a 20% down payment MUST purchase default insurance on the mortgage, and they must have a minimum down payment of 5%.

The down payment on your home could come from your own savings such as a savings account or RRSPs. Thanks to the federal government’s Home Buyers’ Plan, potential first-time home owners are able to leverage up to $35,000 of your RRSP savings ($70,000 for a couple) to help finance the down payment. A gift of a down payment from an immediate relative is also acceptable. If your down payment comes from TFSA or RRSP, the bank will want 90 days of statements to ensure the funds are accounted for. Gifted funds rarely require 90 days of proof.

Step 4 - Your Mortgage Options

Rate is only ONE of the many features in selecting the best mortgage product that meets your financial goals. With access to hundreds of lending institutions, I am familiar with a variety of mortgage products allowing them to help find the best mortgage for YOU! Plus, unlike banks, mortgage agents are a third-party service focused on YOUR needs. This means that you can get the best rates and unbiased advice all for FREE from someone whose only goal is helping you achieve your dream of home ownership.

Step 5 - Your Paperwork

When you apply for a mortgage, you will typically need to provide a standard package of documents, which almost always includes:

Your government-issued personal identification
One month of recent pay stubs from any applicants who will be listed on the loan
Letter of employment
Your most recent two years’ worth of personal CRA tax filings and financials (if incorporated)
Three months of bank account statements
Your down payment (minimum 5%)
Documentation to explain any unusual (generally non-payroll) large deposits or withdrawals

Step 6 - Your Pre-Approval

To have the best success with your mortgage, it is recommended that you get pre-approved! This can be done through your Mortgage Professional to ensure that you get the best mortgage product FOR YOU, from the best rate to the best term agreement. Pre-approval helps verify your budget and allows your real estate agent to find the best home in your price range.

Pre-approval guarantees the rate offered and locks it in for up to 120 days. This protects you from any increases in interest rates while you are shopping (phew!).
Pre-approval lets the seller know that securing financing should not be an issue, which is beneficial in competitive markets!

Quick Tip: Don’t forget about the closing costs! These range from 1 to 4% of the purchase price and should be factored into your budget.

Step 7 - You’re Ready to Shop

You made it!! Once you have your down payment and have qualified for a pre-approved mortgage (your credit score is in order and all documentation has been provided), you are ready to start searching for your perfect home. If you’re stuck, I would be happy to give you recommendations for a realtor, if you don’t have one already.

Contact me today!

Rodney Schunker | Principal Broker (Lic. M12000165)

Cell: 416-697-6423 | Toll Free: 1-855-697-6423

Fax: 1-855-787-7723 | Web: www.kingdommortgages.ca

Mail: Unit 304 – 2250 Bovaird Dr E, Brampton, Ontario, L6R0W3

Email: schunkerr@gmail.com or rschunker@kingdommortgages.ca

Kingdom Mortgages Inc Brokerage # 13608

Each office independently owned and operated. Proud member of Mortgage Centre Canada.

Home Types

schunkerr@gmail.com (Rodney Schunker) — Fri, 23 Feb 2024 21:15:34 GMT

When it comes to finding your perfect home, there are so many more options for potential homeowners!

Single-Family Detached: This is a stand-alone house that sits on its own lot and is the most common type of home. As these are detached dwellings, they provide more privacy with less noise from neighbours. They also tend to be larger dwellings (complete with a yard!) which gives you the space and freedom to really make it your own.
Single-Family, Semi-Detached: These homes are suitable for a single family and are typically attached to another house on one side. Semi-detached homes are often more affordable to both buy and maintain. With this affordability does come somewhat less privacy and protection from noise due to the shared walls on one side.
Duplex: These structures contain two single-family units on separate levels and are great options for individuals looking to reduce home purchase and carrying costs - live in one unit, rent the second! This type of home also provides unique flexibility for older families, giving you the option to move adult children or aging parents into the second unit as needed. As expected, these units offer less privacy than single-dwelling homes and can sometimes have increased noise through the floor or ceiling.
Townhouse or Row House: These are a row of single-family homes, which are connected on both sides to the next home (excluding the end unit, which is only connected on one side). Townhouses typically have private yards but, in some cases, it may be freehold or condo-style with shared ownership rights and responsibilities. However, these homes are typically more affordable and easier to maintain, though you may have to consider strata or maintenance fees. Similarly to duplexes, these home types have less privacy and may have noise from shared walls.
Condominium: These are low- or high-rise buildings containing multiple apartment units. Condos are excellent starter homes for single adults, or couples, as they are affordable and require minimal maintenance. Some buildings even have shared amenities, such as a fitness center or swimming pool or party room. QUICK TIP: Always check for these amenities and if you would be interested in using them. If not, why pay for them? In this case, you might be better off finding a condo with less amenities and lower strata fees.
Modular or Mobile Home: Growing in popularity are modular homes, which are prefabricated homes delivered to a home-site for installation. These homes are owned by the individual, while the land it sits on could be rented or owned outright. These types of homes are highly affordable and extremely flexible; if you relocate, you can sell the mobile home with the property or keep the home and relocate it! If renting land in a mobile home community, there are also those costs to consider.

Contact me today!

Rodney Schunker | Principal Broker (Lic. M12000165)

Cell: 416-697-6423 | Toll Free: 1-855-697-6423

Fax: 1-855-787-7723 | Web: www.kingdommortgages.ca

Mail: Unit 304 – 2250 Bovaird Dr E, Brampton, Ontario, L6R0W3

Email: schunkerr@gmail.com or rschunker@kingdommortgages.ca

Kingdom Mortgages Inc Brokerage # 13608

Each office independently owned and operated. Proud member of Mortgage Centre Canada.

5 Approval Road Blocks You Should Know

schunkerr@gmail.com (Rodney Schunker) — Wed, 21 Feb 2024 17:28:38 GMT

When buying a home, there is nothing worse than having your mortgage broker or lawyer call and say “there is a problem”.

If you have found your dream home and negotiated a fair price, and you have supplied all the documentation to your broker, you probably assume everything is fine. The reality is that your financing approval is based on the information the lender was provided at the time of the application. If there have been any changes to your financial situation, the lender is within their rights to cancel your mortgage approval.

To ensure that you don’t encounter any last-minute roadblocks on your home buying journey, there are five major things you must avoid for a smooth transaction:

1. Changes to Your Employment
When submitting a request for financing, whether for a mortgage or car loan or to handle personal debt, one of the most important aspects the lender looks at is employment. If you were working at Company X for five years at $80,000 a year and change jobs before your upcoming mortgage is finalized, the lender will require proof from your new employer. If you change industries, they will need more proof that you are capable of keeping the job. Plus, for employment involving overtime or bonuses, the lender often requests a two-year average, which is not possible from a new position. Another employment change that could hurt your financing approval would be moving from an employee to a self-employed contractor. A good rule of thumb is to wait to make any major employment or life changes until after the deal has gone through.

2. Down Payment Source
As mortgage financing is based on the initial information provided, you will most likely need to do a final verification of the down payment source. If it is different from what the lender has approved, it could spell trouble for your financing approval. Even if you said that your down payment was coming from savings and, at the last minute, mom and dad offer you the funds as a gift, it could affect your approval. This is an acceptable source of down payment, but only if the lender knows about it in advance and has included this in their risk assessment.

3. Existing Debt
A week or two before your possession date, the lender will obtain a copy of your credit report and look for any changes to your debt load. Since mortgage approval is based on how much you owed on that particular date, it is important not to increase your debt before the deal is finalized. Buying a new car or items for the new home must be postponed until after possession; even if they are “do not pay for 12 months” campaigns because you will need to fulfil those payments, regardless of when they start.

4. Bad Credit
One of the biggest roadblocks to mortgage approvals is credit card payments. When you are in the process of getting financing or waiting to take possession of your home, it is important that your credit score remains positive. If your credit score falls due to late payments, this can cause major issues with your financing. Even if you have a high ratio mortgage in place which requires CMHC insurance, a lower credit score could mean a withdrawal of the insurance and removal of any financing approval.

5. Missing Identity Documents
Before a mortgage is finalized, the lawyer is required to verify your identity documents and see that they match the mortgage documents therefore it is important to use your legal name when you apply for a mortgage. Even if you go by your middle name or a nickname, all legal documents should match.

To help avoid last minute roadblocks and catastrophes with your mortgage application, be sure to keep in touch with me at all times during the mortgage process. If there are any changes from your initial mortgage application, it is important to advise them well in advance and to run those changes by myself to ensure they will not affect your application.

Contact me today!

Rodney Schunker | Principal Broker (Lic. M12000165)

Cell: 416-697-6423 | Toll Free: 1-855-697-6423

Fax: 1-855-787-7723 | Web: www.kingdommortgages.ca

Mail: Unit 304 – 2250 Bovaird Dr E, Brampton, Ontario, L6R0W3

Email: schunkerr@gmail.com or rschunker@kingdommortgages.ca

Kingdom Mortgages Inc Brokerage # 13608

Each office independently owned and operated. Proud member of Mortgage Centre Canada.

Alternative Financing and what you should know

schunkerr@gmail.com (Rodney Schunker) — Fri, 02 Feb 2024 18:26:38 GMT

When conventional lenders (such as banks or credit unions) deny mortgage financing, it can be easy to feel discouraged. However, it is important to remember that there is always an alternative!

When conventional lenders (such as banks or credit unions) deny mortgage financing, it can be easy to feel discouraged. However, it is important to remember that there is always an alternative!

If you’re seeking a mortgage, but your credit score is damaged in some way and big institutions won’t lend you the money, you’ll find yourself in what’s commonly referred to in the industry as the “Alternative-A” or “B” lending space.

Much like the A Lender space (big banks, credit unions, etc.), there are various companies which operate in the B lending space. Alternative lenders cater to individuals who lack a strong credit history, or a guaranteed income (recent immigrants, or the self employed, for instance). As a result, these lenders generally have lower entry qualifications, which are offset by slightly higher interest rates.

Why is alternative lending necessary?

· CRA arrears

· Income issues such as non-traditional income as with self-employed borrowers

· Credit issues such as low credit score, credit arrears, current mortgage or even bankruptcies

· Unexpected liens on title

· Foreclosure situations

· Unique financing needs/opportunities

When it comes to the alternative lending space, there are many options and availabilities. If you are struggling to obtain an A-Lender mortgage, I would be happy to discuss your options with you and help you source an alternative.

Contact me today!

Rodney Schunker | Principal Broker (Lic. M12000165)

Cell: 416-697-6423 | Toll Free: 1-855-697-6423

Fax: 1-855-787-7723 | Web: www.kingdommortgages.ca

Mail: Unit 304 – 2250 Bovaird Dr E, Brampton, Ontario, L6R0W3

Email: schunkerr@gmail.com or rschunker@kingdommortgages.ca

Kingdom Mortgages Inc Brokerage # 13608

Each office independently owned and operated. Proud member of Mortgage Centre Canada.

Avoid these first time Home-buyer mistakes

schunkerr@gmail.com (Rodney Schunker) — Fri, 02 Feb 2024 18:24:15 GMT

As a first-time buyer, I am here to give you some tips on homebuyer mistakes to be on the lookout for so you can avoid them for the best experience possible!

As a first-time buyer, I am here to give you some tips on homebuyer mistakes to be on the lookout for so you can avoid them for the best experience possible!

Thinking You Don’t Need a Real Estate Agent
You might be able to find a house on your own, but there are still many aspects of buying real estate that can confuse a first-time buyer. Rely on your agent to negotiate offers, inspections, financing and other details. The money you would have saved on commission can be quickly gobbled up by a botched offer or overlooked repairs.

Going With The First Real Estate Agent You Find
As much as not having a real estate agent can be a disadvantage, having the wrong one can also make the process more difficult. You don’t want to get halfway into house-hunting before realizing your real estate agent is wrong for you. Ideally, you want to source an agent from a friend or family referral. However, if you are stuck or looking for more options, I would also be happy to provide some referrals as your mortgage professional.

Getting Your Heart Set on a Home Without Doing Your Homework
The house that’s love at first sight may not always be what it seems, so it is important to keep an open mind. If you jump in too fast you may be too quick to go over budget or you might overlook a potential pitfall. Taking the time for proper inspections, budget comparisons and long-term family planning can go a long way in ensuring your first home is the right home!

Committing to More Than You Can Afford
This is one of the most common mistakes that first-time homebuyers can run into, but to ensure your future financial security it is imperative to truly consider your budget. You don’t want to sacrifice retirement savings, an emergency fund or potential holiday for mortgage payments. You need to stay nimble to life’s changes and overextending yourself could put your investments—including your house—on the line.

Fixating on the Lowest Interest Rate
A reasonable interest rate is important, but not at the expense of heavy restrictions and penalties. Make a solid long-term plan to pay off your mortgage and then find one that’s flexible enough to accommodate life changes, both planned and unexpected. I would be happy to discuss all of your mortgage options with you to ensure that you get the best overall mortgage product with an affordable rate that suits YOU!

Choosing a Fixer-Upper Simply for the Cheaper Listing Price
That old character home may have loads of potential, but it is vital to be extra diligent during the inspection period. What will it really cost to get your home to where it needs to be? Negotiating a long due-diligence period will give you time to get estimates from contractors in case you need to back out.

Diving Into Renovations as Soon as You Buy
Whether or not you choose a fixer-upper or simply want to update some things in your new home, it is important not to rush into them. While renovations may increase the value of your home, overextending your credit to get upgrades done fast doesn’t always pay off. Take time to make a solid plan and the best financial decisions. Living in your home for a while before renovating will also help you plan the best functional changes to the layout.

Not Researching the Neighbourhood
It may be the house of your dreams, but annoying neighbours or a nearby industrial zone can be a rude awakening. Spend some time in the area before you make an offer and talk to local business owners and residents to determine the pros and cons of living there.

Opting Out of Mortgage Insurance
Your home is your largest investment and it is imperative that you protect it. Mortgage insurance not only buys you peace of mind, it also allows for more flexible financing options. Plus, it allows you to take advantage of available equity to pay down debts or make financial investments.

If you are ready to search for your first home, don’t hesitate to reach out to me today for expert advice, referrals and mortgage solutions that are right for you!

Contact me today!

Rodney Schunker | Principal Broker (Lic. M12000165)

Cell: 416-697-6423 | Toll Free: 1-855-697-6423

Fax: 1-855-787-7723 | Web: www.kingdommortgages.ca

Mail: Unit 304 – 2250 Bovaird Dr E, Brampton, Ontario, L6R0W3

Email: schunkerr@gmail.com or rschunker@kingdommortgages.ca

Kingdom Mortgages Inc Brokerage # 13608

Each office independently owned and operated. Proud member of Mortgage Centre Canada.

Real talk: Mortgage Penalties

schunkerr@gmail.com (Rodney Schunker) — Fri, 02 Feb 2024 18:21:11 GMT

Typically, the penalty for breaking a mortgage is calculated in two different ways.

When it comes to mortgages, it is easy to focus on the rates and your current situation, but the reality is that life happens and when it does, rates won’t be the only thing that matter.

At the end of the day, a mortgage is a contract between you (the homeowner) and the bank. As such, there are often penalties involved if the contract is ever broken. This is something that every homeowner agrees to when you sign mortgage paperwork, but it can be easy to forget - until you’re paying the price. These things do happen as approximately 6 out of 10 mortgages in Canada are broken within 3 years. Should your circumstances change, knowing the next steps can help you navigate the process.

Calculating Penalties

Typically, the penalty for breaking a mortgage is calculated in two different ways. Lenders generally use an Interest Rate Differential calculation or the sum of three months interest to determine the penalty. You will typically be assessed the greater of the two penalties, unless your contract states otherwise.

1. Interest Rate Differential (IRD):In Canada there is no one-size-fits-all rule for how the IRD is calculated and it can vary greatly from lender to lender. This is due to the various comparison rates that are used. However, typically the IRD is based on the amount remaining on the loan and the difference between the original mortgage interest rate you signed at and the current interest rate a lender can charge today.

In this case, these penalties vary greatly as they are based on the borrower's specific mortgage and the specific rates on the agreement, and in the market today. However, let's assume you have a balance of $200,000 on your mortgage, an annual interest rate of 6%, 36 months remaining in your 5-year term and the current rate is 4%. This would mean an IRD penalty of $12,000 if you break the contract.

Ideally, you will want to be aware of what your IRD penalty would be before you decide to break your mortgage as it is not always the most viable option.

2. Three Months Difference: In some cases, the penalty for breaking your mortgage is simply equivalent to three months of interest. Using the same example as above - balance of $200,000 on your mortgage, an annual interest rate of 6% - then three months interest would be a $3,000 penalty. A variable-rate mortgage is typically accompanied by only the three-month interest penalty.

Paying The Penalty

When it comes to making the payment, some lenders may allow you to add this penalty to your new mortgage balance (meaning you would pay interest on it). You can also pay your penalty up front. Whenever possible, if you can wait out your current mortgage term before making a change to your mortgage, it is the best way to avoid being stuck in the penalty box. If you cannot avoid a penalty, do note that, while only calculators can be great tools for estimates, it is best to contact me directly to discuss your mortgage terms and potential penalty calculations.

Contact me today!

Rodney Schunker | Principal Broker (Lic. M12000165)

Cell: 416-697-6423 | Toll Free: 1-855-697-6423

Fax: 1-855-787-7723 | Web: www.kingdommortgages.ca

Mail: Unit 304 – 2250 Bovaird Dr E, Brampton, Ontario, L6R0W3

Email: schunkerr@gmail.com or rschunker@kingdommortgages.ca

Kingdom Mortgages Inc Brokerage # 13608

Each office independently owned and operated. Proud member of Mortgage Centre Canada.

Looking to Upsize your home?

schunkerr@gmail.com (Rodney Schunker) — Fri, 02 Feb 2024 18:17:43 GMT

A few things to consider before looking into upsizing your home.

According to RE/MAX, one of the biggest trends for Canadian homeowners in 2021 are move-up buyers looking to purchase a home that offers more space for them and their families. In fact, this is true for a whopping 29% of Canadians! Unsurprisingly, this demographic is made up mostly of younger Canadians (under 35) with growing families.

If you are someone who fits this bill and is desperate for a home with more space because you’re feeling cramped or have a little one on the way, it may be time to consider moving on up! Before making this change, there are a few factors to consider from your existing mortgage to requalifying to upsizing costs!

Your Current Mortgage

If you are wanting to upsize, the first thing to look at is whether or not you have an existing mortgage. If not, you don’t have to worry about this part! However, if you are looking to upsize during your current mortgage cycle, it is important to note that you will be breaking the mortgage and will have to go through the entire qualification process again.

An additional point of note is that, if you do move forward with upsizing to a larger home, there may be penalties for breaking your mortgage. These penalties will depend on the lender and the terms set out in your mortgage agreement. In some cases, your current mortgage may be portable, which would make the transition smoother. However, you would need to check your mortgage agreement.

Since you are looking to upsize your home and may require more funds for a larger build, another option is to consider going the “blend and extend” route. This doesn’t require you to break your mortgage or pay prepayment penalties. If the original mortgage was variable-rate, it may not be portable, but this is a great option to consider if you have an existing fixed-rate agreement. However, bear in mind, you would still need to requalify since to increase the mortgage to purchase the larger home. More details on requalifying below!

Requalifying and the “Stress Test”

If you do have an existing mortgage and are unable to port it, you would need to re-qualify for a new mortgage. This means going through the mortgage process again to qualify at the current interest rates being offered in the marketplace. This would also be subject to government changes - including recent “stress test” rules.

Since January 1, 2018, the stress test has been required for ALL mortgages - regardless of your down payment amount. This test is designed to determine whether a homebuyer can afford their principal and interest payments, should interest rates increase. It is based on the 5-year benchmark rate from Bank of Canada or the customer’s mortgage interest rate plus 2% - whichever is higher.

The Cost of Upsizing

Once you have considered the mortgage-related aspects of upsizing to a larger home, the next thing to look at are the costs associated with making this change. There may be large Property Transfer Taxes and you would also be paying realtor fees on the sale of the home you are leaving behind. These fees are typically 2.5-5% of the home’s selling price.

Beyond the costs associated with the sale of your current home and purchasing a larger residence, the costs of home ownership also rise in proportion to the home you live in. If you are moving up from a condo or apartment to a single-family home, you will be responsible for all of the maintenance of your home. It is a good rule of thumb to save one percent of your new home’s purchase price, per year, for maintenance. For instance, if you purchase a $600,000 new home then you would want to ensure $6,000 a year in savings.

Next Steps

Making the move to a larger home is both an exciting and daunting process - but it is entirely doable with the right preparation! No matter what stage you are at with your home, please do not hesitate to contact me if you are considering making a move up the property ladder. I would be happy to review your current mortgage and finances and discuss your options with you to ensure you can continue living the life of your dreams!

Contact me Today!

Rodney Schunker | Principal Broker (Lic. M12000165)

Cell: 416-697-6423 | Toll Free: 1-855-697-6423

Fax: 1-855-787-7723 | Web: www.kingdommortgages.ca

Mail: Unit 304 – 2250 Bovaird Dr E, Brampton, Ontario, L6R0W3

Email: schunkerr@gmail.com or rschunker@kingdommortgages.ca

Kingdom Mortgages Inc Brokerage # 13608

Each office independently owned and operated. Proud member of Mortgage Centre Canada.

Benefits of Rate Holds

schunkerr@gmail.com (Rodney Schunker) — Fri, 02 Feb 2024 18:13:00 GMT

The Benefits of Rate Holds

The term “rate hold” may be something you are familiar with if you have worked with me in the past. If not, it is a term that all prospective buyers should know!

A rate hold is offered by the majority of lenders to clients who are purchasing a new home and need a mortgage. The purpose of the rate hold is to secure the interest rate on your mortgage application for a certain time period. Often, these holds range from 90-120 days. Bear in mind, these are typically not provided for anyone refinancing their mortgage or looking to transfer it from one lender to another. Only those looking to purchase a home or establish a brand-new mortgage.

Once you have created an application with me, I can submit it to an available lender who is offering a rate hold on an interest rate you want to take advantage of – all without a property attached.

For an example of how a rate hold works, consider this. On day one you submit your application to a lender for a fixed interest rate of 5.20% for five-years. On day 60, that interest rate moves to 5.50%. As long as your mortgage closes in the next 60 days, you are protected and can keep your lower rate of 5.20%. Plus, if rates happen to trend downward, you can also take advantage of the lower interest rate.

This rate hold does not commit you to working with that particular lending institution, nor does it commit you to working with me. It also does not hurt your chances of receiving an approval down the road! All it does is protect the agreed upon interest rate for you while you shop the market, so you don’t have to worry about it increasing while you are hunting for your perfect home!

Once the 90 days expires, if you have not found that perfect home fit or want to take advantage of different interest rates, there is nothing stopping you from submitting another rate hold! It will just be subject to the current rates on the day of submission.

If you are looking to purchase a new or secondary home this summer, please don’t hesitate to reach out to myself to get started on the pre-approval process and put your rate hold in place!

Ready to secure or rate hold or have any questions? Let us help you find and purchase your dream home.

Rodney Schunker | Mortgage Broker (Lic. M12000165)

Cell: 416-697-6423 | Toll Free: 1-855-697-6423

Fax: 1-855-787-7723 | Web: www.kingdommortgages.ca

Mail: Unit 304 – 2250 Bovaird Dr E, Brampton, Ontario, L6R0W3

Email: schunkerr@gmail.com or rschunker@kingdommortgages.ca

Kingdom Mortgages Inc Brokerage # 13608

Each office independently owned and operated. Proud member of Mortgage Centre Canada.

Our thoughts on todays interest rate hike announcements

Mon, 18 Jul 2022 14:14:01 GMT

The Times Are Changing.

The inevitable interest rate hikes after covid are now upon us. The Bank of Canada in its effort to keep our economy going reduced rates almost to zero. It worked as a temporary measure , but could not last forever. Historically, the median for interest rates is around 7%, so anything below that is a bargain. It was also anticipated that inflation would rise after Covid, but it is going a little faster and higher than anticipated. Acceptable inflation is 1.5 to 2.5%, today we are at 8% and rising. The bank has really only one tool to combat inflation, and that is the interest rates. We have seen them move quickly, and that will continue. We will be back in the 6% range for mortgage rates before the dust begins to settle.

The media is portraying a scenario where no one can afford their homes and will be forced to sell. They forget very quickly that the stress test was implemented to prevent this. Basically everyone that received a 2% mortgage was stress tested at 4%. All buyers can afford a 2% bump. Also, if rates were to move up 3% over the next 2 years, it would be in line with wage hikes to offset that. Canadians will find a way. Arrears today in Canada are less than .05% and have been so for the past decade. No one should be forced to sell.

What usually follows high inflation and rate hikes? A recession. This also happens every decade or so and in some ways is a reset for businesses. It will force them to be more diligent , cost effective, profit minded, and perhaps will weed out the weaker players.

House prices have dropped to where they probably should have been anyway. Many buyers overpaid in a heated market just to get into a home. This is now over. Canada has a severe housing shortage, inventory of resale homes is still very low, and I do not expect prices to dip any more than 5%. Some areas will be worse, some will be better. Real Estate, especially for the rental market is still one of the best long term investments you can make. Rents are going up and will continue until Canada can get caught up with new construction. That could take decades.

Overall, the higher rates are normal, the low rates were temporary. Canadians will still pay their mortgages, they will stay employed and try to fill the job vacancies that are abundant. This is also an environment conducive to higher wages. Are we seeing normal again? It has been a crazy 2 years.

Rodney Schunker | Mortgage Broker (Lic. M12000165)

Cell: 416-697-6423 | Toll Free: 1-855-787-7723

Fax: 1-855-787-7723 | Web: www.kingdommortgages.ca

Mail: 10 George St North, Suite 202, Brampton L6X 1R2

Email: schunkerr@gmail.com

R ock Capital Investments Inc. Brokerage #10556. Each office is independently owned and operated. Proud member of Mortgage Centre Canada.

When Should I Pay My Credit Cards?

Mon, 25 Apr 2022 17:34:59 GMT

There may be a difference between the balance on your credit card statement and the total balance you owe. The way to avoid paying interest is to always pay off your entire statement balance by the due date.

Understand your credit card statement

The cost is added to your total balance owing whenever you purchase a credit card.

Once a month, your credit card company should issue you a statement that outlines a handful of things:

· The amount you charged to your card in the current billing cycle;

· The proportion you still owe from your previous billing cycle (anything beyond $0 will get an interest charge);

· The total amount due, including the points, mentioned earlier;.

· The minimum payment required - is usually a flat fee/service charge (e.g. $10) or a percentage of the total balance owed.

The balance on your statement may be different from the total balance you owe today. That’s because you probably spent more money between the day that statement was issued and when you received it. Therefore, you could log into your account online and see a larger balance than the one on your bill. Don’t let that upset you and derail your plans. You do need to pay the total balance you owe today.

The way to avoid paying interest is to always pay off the entire balance on your statement by the due date and never miss a payment. Your payment history contributes significantly to building good credit scores.

What’s important is that it’s your responsibility to understand the payment terms of your credit card accounts. A late payment could negatively impact your credit scores and stay on your report for years. The best way to improve your credit health is to pay off the entire amount stated on your credit card statement before or on the specified due date. This will help you build your scores, maintain your credit history and avoid interest charges.

Contact me if you have any further questions to discuss.

Rodney Schunker | Mortgage Broker (Lic. M12000165)

Cell: 416-697-6423 | Toll Free: 1-855-787-7723

Fax: 1-855-787-7723 | Web: www.kingdommortgages.ca

Mail: 10 George St North, Suite 202, Brampton L6X 1R2

Email: schunkerr@gmail.com

R ock Capital Investments Inc. Brokerage #10556. Each office is independently owned and operated. Proud member of Mortgage Centre Canada.

What Is A Reverse Mortgage?

Mon, 18 Apr 2022 15:42:26 GMT

A reverse mortgage is a technique for homeowners in Canada aged 55 or older to turn up to 55% of the home's value into cash, tax-free. In other words, you can get a loan based on your home equity without selling it. The maximum borrowable amount depends on:

· your age;

· your home's appraised value, and;

· your lender.

The most significant advantage of this loan type is that you don't need to make regular payments until the loan is due. You can pay back the entire loan amount plus interest either when you move out, sell the home, or the last borrower dies. Although, bear in mind that you will owe more interest on a reverse mortgage overall the longer you go without making any payments. Furthermore, you may end up with less equity in your home at the end of your loan term.

Benefits of a reverse mortgage

You can live in your beloved home and enjoy a comfortable lifestyle with a reverse mortgage. We understand that in Canada, people over 55 have unique financial needs that only grow in complexity and, therefore, difficulty. Compared to the traditional methods of managing mortgages, you can access your home's equity better with a reverse mortgage and improve your life by:

· Relieving financial pressure;

· Increasing cash flow;

· Purchasing a summer home;

· Paying off debts;

· Renovating your current home;

· Quickly help your loved ones and donate to charity;

· Setting money aside for healthcare expenses;

· Enabling travel and vacationing.

How it works

First, decide if a reverse mortgage is right for you by reviewing your financial situation and future plans. Then get in touch with a reputable mortgage agent or broker to find the best lender at the best rate possible. You can also get their advice on crafting a flexible plan up to 55%* of your home appraised value, tax-free, as a lump sum payment, plus the option of advances over time. During the tenure of your loan, you will maintain complete ownership and control of your home.

Who can qualify for a reverse mortgage?

· Homeowners with Canadian nationality;

· The owner's age must be or exceed 55;

· The home must remain the owner's primary residence throughout the loan's tenure;

· The owner must maintain the home responsibly;

· All property taxes should be paid on time.

*some conditions apply

Contact me today.

Rodney schunker | mortgage broker (lic. M12000165)

Cell: 416-697-6423 | toll free: 1-855-787-7723

Fax: 1-855-787-7723 | web: www.kingdommortgages.ca

Mail: 10 george st north, suite 202, brampton l6x 1r2

Email: schunkerr@gmail.com

Rock Capital Investments Inc. Brokerage #10556. Each office is independently owned and operated. Proud member of Mortgage Centre Canada.

Calculating Credit Scores

Mon, 11 Apr 2022 20:57:18 GMT

Credit scores help Financial Risk Managers, and other financial analysts make justified decisions concerning whether to "take a risk" on someone or not. Several scoring models are used globally; however, they are all similar in principle. This article breaks down the primary factors involved in calculating a credit score.

Payment History (weight = 35%)

A Payment History includes information concerning how well a debtor repays the amount borrowed. This data consists of the number and type of credit accounts paid on time, how many extensions they've taken, late payments, public record items and recovery. Credit scoring models analyse delayed payment duration, how many payments you delayed, the amount owed, and how recently you missed a payment.

Used Credit vs Available Credit (weight = 30%)

A crucial part of your score involves comparing your total available credit (credit cards and other revolving lines of credit) and how much you have used. If you were wondering, a 'revolving line of credit refers to any type of loan that allows a borrow, repay, and reuse cycle up to the available limit. This factor also considers the maximum amount you can charge in a single transaction against a particular credit account.

Credit History (weight = 15%)

This modelling factor considers how long you've been borrowing, i.e. your credit career, so to speak. The longer you've been a debtor with a good reputation, the better your score.

Public Records (weight = 10%)

Financial institutions have access to anything you've ever done that is legally part of public record (open to all concerned). This data includes any bankruptcy, collection issues or run-ins with the law. The presence of these events may significantly and negatively impact your credit score.

Inquiries (weight = 10%)

Inquires are logs maintained on an individual's credit file every time an institution or organisation accesses the individual's data. Although these inquiries require mutual consent, it was created to affect the credit score calculation. Inquiries generated due to active credit-seeking (known as "hard pulls" or "hard hits") are an indication of financial distress and, therefore, a red flag. Although not every inquiry is a sign of financial difficulty. For example, a creditor has made requests for your credit file or credit score to create a pre-approved credit offer or review your account with them. Nor does it consider a personal proposal for a copy of your credit history. These are some examples of "soft inquiries" or "soft pulls" of your credit.

Several recent instances could lead to a significant decline in your credit score.

Contact me if you have any further questions to discuss.

Rodney Schunker | Mortgage Broker (Lic. M12000165)

Cell: 416-697-6423 | Toll Free: 1-855-787-7723

Fax: 1-855-787-7723 | Web: www.kingdommortgages.ca

Mail: 10 George St North, Suite 202, Brampton L6X 1R2

Email: schunkerr@gmail.com

Source: https://www.consumer.equifax.ca/.../how-are-credit.../

Rock Capital Investments Inc. Brokerage #10556. Each office is independently owned and operated. Proud member of Mortgage Centre Canada.

Reasons a Mortgage can get Denied after an Approval

Mon, 04 Apr 2022 12:00:16 GMT

One of the most critical steps to successfully purchase a home is to get approved for a mortgage before shopping for homes. The primary reason to get approved for a mortgage before shopping for houses is to ensure you're looking at homes within the price range you can afford.

However, rejection is still on the table even after you receive approval. Below you will read some of the typical reasons for a post-approval revocation of your mortgage. Knowing and accounting for them can significantly reduce the chance that your mortgage is denied even after approval.

1. Not meeting loan requirements and guidelines

The first and often most critical factor that triggers a revocation is not meeting the loan requirements, even though it may not always be your fault. Sometimes, lenders can unilaterally change guidelines. Furthermore, laws may change over time, given the dynamic nature of housing markets.

2. Change of employment and employment status

The second, and most important, is a change in employment status. Depending on the type of financing, specific guidelines exist for the necessary length of consistent employment. If there are any gaps in your employment history (i.e. periods of unemployment), the lender requires a written explanation. Consider consulting your mortgage consultant before making any employment decisions about the possible impact on a mortgage approval.

3. A Negative mark on your credit history

Another common reason a mortgage might be denied is because of a negative impact on your credit score. It's imperative to thoroughly understand how credit scores impact mortgage approval rates.

4. Incurring additional debt(s)

Avoid adding any debts or credit lines under your name after getting the mortgage approval. Every subsequent addition can have a massive impact on debt to income ratios and ultimately lead to a denied mortgage.

5. Issues With Appraisal

It can be devastating for an approved buyer to have their mortgage denied at the last minute.

Get in touch if you have any further questions.

Rodney Schunker | Mortgage Broker (Lic. M12000165)

Cell: 416-697-6423 | Toll Free: 1-855-787-7723

Fax: 1-855-787-7723 | Web: www.kingdommortgages.ca

Mail: 10 George St North, Suite 202, Brampton L6X 1R2

Email: schunkerr@gmail.com

Rock Capital Investments Inc. Brokerage #10556. Each office is independently owned and operated. Proud member of Mortgage Centre Canada.

Advantages of Using a Mortgage Broker

Mon, 28 Mar 2022 13:15:28 GMT

Looking for a new house for you and your family? Instead of managing the entire process yourself, save yourself time and trouble by hiring a mortgage broker. Outlined below are some of the advantages you stand to gain by engaging with a mortgage agent or broker:

Less effort

We're not saying you won't have to work hard to make a good mortgage decision. However, you can save yourself most of the leg work. Not to mention all the negotiating and paperwork is handled by the broker.

A mortgage broker has better access

Any broker you hire is most likely better connected than you are. They know all the right people to talk to

A mortgage broker has the better industry knowledge

Established brokers have a good grasp of all the ins and outs of the market. These agents are in an excellent position to proactively engage the necessary resources

A mortgage broker has the more technical knowledge

Obtaining a mortgage can involve a comprehensive range of fees and charges, especially when working with a new lender. A broker usually builds a rapport with popular lenders and, therefore, might get a lender to waive some of these charges.

A mortgage broker can source mortgages from multiple vendors

It is in a mortgage broker's best interest to maintain contact with various lenders. In doing so, a mortgage broker ensures finding a good fit for the client's needs.

A mortgage broker protects your interests at all times

A mortgage broker can also help you steer clear of lenders that hide insidious details in the fine print designed to trap you.

No service fee

A broker's services are free (for you). Should a mortgage broker manage to "broker" a deal on your behalf, the lender pays any applicable fees to the broker.

However, that said, there is no harm in doing a little research yourself. When choosing a mortgage broker, make sure to look for reliability and consistency. Ask friends and family who have had good experiences. You can either opt for whoever helped them or use the information to select a mortgage broker that suits you.

Contact me to find out more about how we can help you.

Rodney Schunker | Mortgage Broker (Lic. M12000165)

Cell: 416-697-6423 | Toll Free: 1-855-697-6423

Fax: 1-855-787-7723 | Web: www.kingdommortgages.ca

Mail: 10 George St North, Suite 202, Brampton L6X 1R2

Email: schunkerr@gmail.com

Rock Capital Investments Inc. Brokerage #10556. Each office is independently owned and operated. Proud member of Mortgage Centre Canada.

Should You Renew Your Current Mortgage?

Mon, 21 Mar 2022 16:47:02 GMT

Mortgage renewals with the same lender are popular because they are more straightforward. But does that mean you just sign on the dotted line? Here we try to elaborate on why you should change your lender.

If you're in a mortgage that qualifies for renewal in the next few months and you must have considered staying with the current lender, you are not alone. The Canadian Mortgage and Housing Corporation's (CMHC) Residential Mortgage Industry Report of 2018 stated that mortgage renewals with the same lender have increased nearly 16% since 2017.

Furthermore, the report suggested that tighter approval criteria are a significant factor contributing to this increase in borrowers renewing their mortgage with the same institution. Late in 2017, the Office of Superintendent of Financial Institutions (OSFI), which regulates the financial industry, announced tighter rules on mortgage approvals. Therefore, consumers are worried that they may have trouble qualifying if they use a lender not acquainted with their history.

However, tighter mortgage rules did not affect the approval rate for same lender renewals. The CMCH reported a stable 99% acceptance rate. The report also noted that these renewals are not impacted explicitly by the new stress tests and, therefore, more likely to meet the current lender criterion.

Nonetheless, there is good reason to at least consider switching lenders once your mortgage's tenure is over. Get in touch with a professional such as a mortgage broker or agent to access good market knowledge.

On that note, remember that most lenders will send you a Letter of Renewal between three and six months before your term expires. Usually, the lender will offer you a new rate at that time, and you have to sign the document/letter and send it back to roll over the mortgage. That's all there is to it.

Unfortunately, lenders will often offer a higher rate to an existing customer than a new client because they're banking on the ease of renewal outweighing the higher rate. But at this point, you should ask yourself, "is it truly worth the time and effort it will take to switch? Will the few basis points shaved off off the rate or a few hundred dollars over a term worth making the switch?"

For most people, the answer will remain "no". However, the more significant your mortgage, the more enormous impact a small change can have. A few basis points off your rate could save thousands of dollars which is definitely something to consider no matter how rich you are. While everyone's situation is different, the more considerable the mortgage, the more significant the savings will be when you find a lower rate.

Using a different point of view, many first-time homeowners tend to use the same institution their parents used because they didn't know any better. Instead of falling into that trap and living with something you are not pleased with, you could switch to a different lender as the mortgage comes up for renewal.

In any case, a mortgage broker can significantly help you make a better decision.

Contact me today if your mortgage is coming up for renewal.

Rodney Schunker | Mortgage Broker (Lic. M12000165)

Cell: 416-697-6423 | Toll Free: 1-855-787-7723

Fax: 1-855-787-7723 | Web: www.kingdommortgages.ca

Mail: 10 George St North, Suite 202, Brampton L6X 1R2

Email: schunkerr@gmail.com

Rock Capital Investments Inc. Brokerage #10556. Each office is independently owned and operated. Proud member of Mortgage Centre Canada.

How to Develop your Credit

Mon, 14 Mar 2022 22:22:10 GMT

Are you new to the realm of borrowing and lending? Are you trying to recover from debt in the past? Are you trying to make your way to Canada for the first time? Improving your credit may seem intimidating, but there are several ways to approach it.

Why should you build your credit?

Lenders look through your credit reports and credit scores whenever you apply for financial products such as credit cards and loans. Evaluating your credit history helps them determine how risky an investment you are and whether you are worth the risk.

Types of credit cards

Various credit products can help you build credit over time, such as:

Secured credit cards

Secured credit cards work more or less the same as a conventional credit card. However, typically, in this case, you need to make an advance deposit before getting approval and access to the credit account. The amount you put down upfront determines your credit limit.

Retail credit cards

Retail credit cards are another option. This type of credit card, just like secured cards, functions much like a traditional credit card. The only exception is that your prefered retailer offers it. Retail credit cards often come with instant approvals, following which you can immediately start shopping, earning rewards, and building your credit. They can be a valuable option for individuals with low scores or limited credit history.

Points to consider

Bear in mind the following points before applying for either of the credit card types mentioned above:

· Usage Limitations: Using a retail credit card restricts you to shopping at the retailer that issued it;

· Interest rates: Compare interest rates to ensure you get the best deal. Talk to a financial expert or mortgage agent to understand how to do this effectively;

· Recurring Fees: Read the fine print and check for regular and frequent charges so that you know exactly how much the card will cost you;

· Perks and Benefits: Some credit card companies offer incentives and loyalty programmes. Compare them for each company and see which fits you best. On the other hand, credit cards can also help develop your credit score.

How to build credit responsibly

Effectively and responsibly building credit requires some planning. Here we outlined some tips on how to achieve this:

· Late payments result in interest charges and extra fees by default. Still, it can also harm your reputation and credit health. So make sure you pay up in full and on time. Consider setting up due to date reminders or automatic payments;

· If you can’t clear your debt in full, at least ensure you make the minimum payment and on time. There is no escaping it, so might as well not try;

· However, don’t let minimum payments become a habit. Regularly carrying a balance on your credit card means you’re paying more interest than needed;

· In the case of a car loan or mortgage for which you can’t make payments in full, get in touch with your lender or mortgage broker to figure out an alternative arrangement. Depending on the lender’s discretion, of course;

· Consider diversifying your credit portfolio in the early stages of credit score building. Focusing on a single source can slow down the process significantly. Mix it up with credit types such as a car loan, a student loan or house mortgage;

In conclusion, remember, borrow responsibly, pay on time, pay in full and avoid making a habit of the minimum payment due.

Contact me if you have any further questions to discuss.

Rodney Schunker | Mortgage Broker (Lic. M12000165)

Cell: 416-697-6423 | Toll Free: 1-855-787-7723

Fax: 1-855-787-7723 | Web: www.kingdommortgages.ca

Mail: 10 George St North, Suite 202, Brampton L6X 1R2

Email: schunkerr@gmail.com

Rock Capital Investments Inc. Brokerage #10556. Each office is independently owned and operated. Proud member of Mortgage Centre Canada.

The Four Expenses You May Overlook as a First-Time Homebuyer

Mon, 07 Mar 2022 22:26:53 GMT

In any situation, even the most organised and detail-oriented people can overlook something they knew nothing about and entirely unexpected. Purchasing a home is no different. This article outlines some of the most commonly overlooked expenses by first-time homebuyers so that you can avoid the same mistakes and hopefully a few surprises.

Closing Costs

Closing costs include expenses beyond the property's price that buyers and sellers can suffer to complete the real estate transaction procedure once the seller accepts your offer. Before securing this significant addition to your assets, consider the costs listed below:

1. Insurance;

2. Loan origination fees;

3. Taxes (Property, Land Transfer, and others depending on the province);

4. Appraisal fees;

5. Legal/notary fees;

6. Inspection/appraisal fees.

7. Surveys;

8. Credit report charges.

Standard market practice suggests holding at least 1.5 per cent of the purchase price as a provision for the closing costs mentioned above. Consider speaking to a specialist, such as a mortgage broker. A broker can help determine how much to set aside in your unique case.

Upgrades and Renovation

Builders usually use the latest available technology as per the market. Even just a couple of years old, older homes may require some renovation and updates before you can move in. If not now, expect to do some as soon as five years down the line. In either case, setting aside some money each month for these situations is a vital step.

Conduct a thorough home inspection before finalising the purchase, and then create a list of your observations. Separate the list into two categories: necessary and aesthetically pleasing. Then prioritise each item on that list, so you know what to tackle first. Typically, cover topics like:

1. Room extensions;

2. Garden landscaping;

3. Retiling floors;

4. Repainting walls;

5. Changing fittings.

Utility Bills

Utility costs make up the bulk of your living expenses and vary according to the climate in your area, the home's size and the technology's age. So, suppose you move into a larger space and a more varying environment. In that case, you will require more heating or cooling, and therefore, you can expect a higher bill. Similarly, you need far more water to sustain a more extensive garden.

Furthermore, as a homeowner, you must cover the entire cost. However, landlords sometimes cover a portion of your utility bills or your cable/internet in rental property, depending on the contract. Typically, utilities include:

1. Electric Bill;

2. Gas Bill;

3. Water and Sewage;

4. Trash and Recycling;

5. Internet, Telephone and Cable.

Before moving in, consult family members, friends, your mortgage broker or your potential neighbours to identify realistic pricing in that area for cable, internet, water and heat.

Regular Maintenance

Any homeowner will tell you that regularly maintaining a house yields dividends in the long run. Problems do not pile up, and you stay updated with current trends and technologies. Typically, home maintenance includes:

1. Roof repair and insulation maintenance;

2. Clearing rain drainage and sewerage;

3. Cleaning furnace and boilers;

4. Repairing drywall and insulations;

5. Plumbing and electrical fixes;

6. HVAC and duct cleaning.

Annually review your maintenance history and make adjustments to next years plan and budget. The age of your home, area covered, and local climate all play a part in changing how you conduct maintenance.

In conclusion, as a first-time property owner, save yourself from the shock and stress of spending more than planned. The four costs mentioned earlier are by no means challenging to manage. As a rule (as advised by CMCH), ensure that you have a budget set aside each month that stays under 39 per cent of your monthly income. This percentage includes mortgage payments and all other housing costs. It will save you from panic attacks in the long run and allow you to enjoy your new home.

Get in touch with me if you have any further questions to discuss.

Rodney Schunker | Mortgage Broker (Lic. M12000165)

Cell: 416-697-6423 | Toll Free: 1-855-787-7723

Fax: 1-855-787-7723 | Web: www.kingdommortgages.ca

Mail: 10 George St North, Suite 202, Brampton L6X 1R2

Email: schunkerr@gmail.com

Rock Capital Investments Inc. Brokerage #10556. Each office is independently owned and operated. Proud member of Mortgage Centre Canada.

The Importance of Setting up a Budget

Tue, 01 Mar 2022 02:54:59 GMT

Taking control of your financial future and your present starts with a budget.

Advantages of making a budget

Budgets are a great way to summarise your monthly or annual cash flow. By creating one, you can:

· Avoid falling into debt;

· Avoid the pitfalls of unexpected expenses;

· Improve your credit rating;

· Increase the acceptance rate for mortgage or loan;

· Identify areas with the potential for saving;

· Schedule a holiday or some other significant expenditure better.

How to make a budget

Before you get started on your budget, first find out how much you spend on the following categories:

· Utility bills including heating, lighting and water;

· Living costs such as housing, food, and healthcare;

· Insurance and other financial products;

· Gifts and help to friends and family;

· Transportation and logistics such as vehicle maintenance and taxi far;

· Entertainment expenses such as holidays, sports events and dining out.

Then, see if you’re spending more than what you bring in. If there are multiple earners in the family, sum up everyone’s monthly income. Once you have that covered, you need to work out where you can cut back. Remember, often simple things like taking home-made lunch to work or school could do the trick. You might even cancel a gym membership and go for walks outside instead. You can even save hundreds if not thousands of dollars by reviewing your mortgage. Talk to a mortgage broker or agent to see if you have any alternatives available.

Tips for keeping track of your expenses

Like most businesses, you and your family can close your accounts daily. At the end of the day, get together and analyse what you spent. You could also keep individual spending diaries and note everything you buy in the month. Look at the monthly bank statements to figure out your expense categories for online transactions. Furthermore, try and get everyone involved in keeping the budget. Ideally, all household members should participate and be aware of what the budget contains. You cannot underestimate the unpredictability of life, so review your budget regularly and update at least annually, if not every six months.

Contact me today.

Rodney Schunker | Mortgage Broker (Lic. M12000165)

Cell: 416-697-6423 | Toll Free: 1-855-787-7723

Fax: 1-855-787-7723 | Web: www.kingdommortgages.ca

Mail: 10 George St North, Suite 202, Brampton L6X 1R2

Email: schunkerr@gmail.com

Rock Capital Investments Inc. Brokerage #10556. Each office is independently owned and operated. Proud member of Mortgage Centre Canada.

Things to Know Before You Buy a House

Wed, 23 Feb 2022 00:12:27 GMT

One of the busiest seasons for shopping and general retail activity is Spring. The excellent weather gives people lots of time for decluttering, showing the home, garage sales, packing and moving into new spaces. Furthermore, buying a home is an exhilarating and fulfilling adventure. Still, there are many things you should know before you get started. Let us discuss some critical things you should know before you purchase.

Are you ready to make a decision?

First and foremost, understand that this is one of the most significant financial decisions you will make in your life. Here are some questions you should think about before diving in:

· Are your finances stable?

· Are you equipped with the financial management skills and discipline required to make a decision?

· Are you aware of the hidden costs and responsibilities that come with being a homeowner?

· Are you prepared to devote the time necessary for regular home maintenance?

If 'yes' was your answer to the questions above, congratulations! You are already a step ahead of the average first-time homebuyer. However, if your answers for any of them were 'no', you should consider contacting a mortgage professional. They usually have the current market knowledge and give you the best advice. Nonetheless, the points mentioned here should help you make a better decision.

1. Securing Your Down Payment

A down payment is the highest upfront cost of purchasing a home. In Canada, the minimum down payment for a standard mortgage is 5%, but you can always increase that amount if feasible. Doing so automatically lowers the total amount borrowed. Furthermore, anything below 20% triggers the mandatory insurance policy to protect the investment.

For this purpose, if you don't have savings to bank on, you look into the Registered Retirement Savings Plan (RRSP). Using this programme, as a first-time homebuyer, you can borrow up to $35,000 to use as a down payment. Although this is another form of debt, the conditions and repayment schedule offers some relaxation.

Alternatively, you can get help from friends or family. You will need to attach/submit a Gift Letter that clarifies that no repayment is required. You should also make a copy of the transfer receipt for complete documentation.

If none of these options applies to you, you should work on improving your credit score and saving up for a down payment in the meantime. This brings us to our second point.

2. Improving your credit score

The better your credit score and financial reputation, the quicker you can qualify for a mortgage. Doing so is as simple as paying utility (lighting, heating), rent, insurance and credit card bills on time and in full. Keep the total outstanding credit card balance below 75% of the available limit. You can use the 2-2-2 rule as a quick guide for managing your credit score. Typically, lenders look for at least 'two' forms of revolving credit (e.g. credit cards and retailer cards) with no less than '$2,000' limits and a clean payment record for at least 'two' years.

Remember, do not make any other significant additions to your debt. Avoid purchases such as a car until you have received approval and closed the deal on your new home.

3. Don't use all your money at once

The temptation will always be to start looking for homes priced at the very top of your budget. Still, remember that with every purchase comes fees and mandatory closing costs. These expenses can range from 1% to 4% of the purchase price. Factor these into your budget allocation, thereby helping you narrow down more affordable homes and ensure financial stability and security for the future.

4. Look into getting pre-approval

Pre-approval for a mortgage determines and verifies how much you can afford to pay for a home. It differs from pre-qualification in that you have to submit your financial history for verification. The pre-approval specifies the maximum amount you can spend on a home, the monthly mortgage payments and the first term mortgage rate. Getting pre-approved also guarantees the rate you offer and will be locked in from 90 to 120 days. This security helps in case of interest rates fluctuate during the mortgage approval and home buying process.

Contact me to learn more about what you can afford and other details.

Rodney Schunker | Mortgage Broker (Lic. M12000165)

Cell: 416-697-6423 | Toll Free: 1-855-697-6423

Fax: 1-855-787-7723 | Web: www.kingdommortgages.ca

Mail: 10 George St North, Suite 202, Brampton L6X 1R2

Email: schunkerr@gmail.com

Rock Capital Investments Inc. Brokerage #10556. Each office is independently owned and operated. Proud member of Mortgage Centre Canada.

Eight Useful Financial Tips for Young Adults Starting Life

Tue, 15 Feb 2022 01:58:39 GMT

1. Take Steps to Care for Yourself

Believe it or not, good health means good wealth. If you're healthy, you can work and save. If you're unhealthy, you usually cannot work and sink money into medicine and other treatments. By taking daily steps to maintain a good diet, a healthy weight, exercising and staying away from addictive substances, you can avoid paying exorbitant medical bills. You'll thank yourself down the road.

2. Develop Your Financial Future

Knowing how to keepa and manage money is a crucial skill that most people either ignore or pass on to somebody else in their lives. Instead of relying on advice from others, grab the bull by the horns and take charge. Read books and research online about personal finance. Now, granted, some people don't have a head for finances, but even if you hire someone to do it for you, how can you check if they did an excellent job if you know nothing yourself. Understanding how money makes the world turn is the first step in making your wealth work for you.

3. Practice Self Discipline

The best solution to avoid sinking financially, practice the fine art known as delaying gratification. The sooner you learn this skill, the easier you can to keep your finances in order. In other words, credit allows you to effortlessly purchase an item the very second you want it. Unfortunately, these seconds pile up, and suddenly you find yourself overdrawn and over-limit. And if you must pay interest, do you really want it to be for clothes and food? No doubt, credit cards are a convenient and efficient tool with many incentives. However, pay your balance in full when the bill arrives and don't use more cards than you can handle.

4. Keep Track of Money Flows

Monitor your outflows by recording each expense either in an accounting format or by maintaining a simple ledger. Use this data to identify where a small change can make a significant impact. For example, instead of buying your morning coffee from Starbucks, think about switching to a cheaper brand or having instant coffee at home. Seemingly insignificant costs add up over time and put a giant dent in your bottom line at the end of the month. Furthermore, make intelligent choices when it comes to recurring payments like rent and utilities. Instead of going for a luxury apartment now, afford a house later in life when you genuinely need it.

5. Recognise the Significance of Taxes

Accurately projecting your financial future depends significantly on your understanding of taxation. Knowing how much you lose in taxes at the salary negotiation phase will help you quickly recognise a lousy deal. Remember, any money you save will be after meeting your financial obligations from the amount leftover after tax. It might be feasible for you to learn tax accounting to avoid the pitfalls of trusting someone who doesn't have your well-being and best interests in mind.

6. Start Saving for Retirement

Generally, saving is a long term activity with a relatively safe return. Small amounts compound throughout your career, and you end up with a sizeable nest egg and the option to retire early. You can even add to that amount every year and speed up the process.

7. Make Smart Investments

So far, we have discussed tips that revolve around saving money. Now here, we recommend that you spend your wealth wisely. The debate around saving vs investing has gone on for ages. On one side, holding money in a bank ensures a safe return, but inflation reduces the purchasing power of those saved by the time you need it. On the other hand, investing well can generate returns that grow with the economy, potentially ballooning your wealth. However, with high return comes high risk. Ideally, you can find a financial player online (Gary Vee) and see how they think. Copy them initially until you find your own path.

8. Diversify Income Streams

Now here is one more tip that focuses on generating higher income rather than saving more of it. More and more people opt to take control of their careers and start freelancing or become entrepreneurs. Instead of the daily grind for 50 years, you can begin sourcing active and passive revenue from multiple and varying online streams. Technology has significantly simplified mainting side hustles like:

· Delivery services;

· Car rental services;

· Ridesharing;

· Blogging;

· Graphics design;

· Tutoring and more.

If you want help managing your finances, contact me today.

Rodney Schunker | Mortgage Broker (Lic. M12000165)

Cell: 416-697-6423 | Toll Free: 1-855-787-7723

Fax: 1-855-787-7723 | Web: www.kingdommortgages.ca

Mail: 10 George St North, Suite 202, Brampton L6X 1R2

Email: schunkerr@gmail.com

Rock Capital Investments Inc. Brokerage #10556. Each office is independently owned and operated. Proud member of Mortgage Centre Canada.

How To Leverage Your RRSPS When Buying Your First Home

Sat, 05 Feb 2022 17:09:07 GMT

Looking to make your first significant investment in life? Dreaming of a living space that you can call your own? As an eligible first-time homebuyer, you can increase the funds available for your home purchase by contributing to your RRSP(s) before the deadline on March 1st.

The Home Buyers' Plan (HBP) allows you to withdraw from your Registered Retirement Savings Plans (RRSPs) to purchase or build your first home. In 2019, the HBP changed regulations and increased the withdrawal limit by $10,000 ($25,000 to $35,000), thereby allowing first-time homebuyers greater access to their RRSP savings.

What are the qualifying criteria?

To qualify for this program, at least one potential homeowner must be purchasing a house for the first time. i.e. if you are a newly married couple and buying a new home together, at least one of you should never have purchased a house before. The following points outline the specific qualifiers:

You are a Canadian resident;
You have never before been a homeowner;
You have not lived long-term in a home that you or your current spouse/common-law partner owned in the last 4 years;
You hold a written agreement particularly for buying or building a house;
You intend to occupy the qualifying house as your principal place of residence within one year of buying/building it;
You have faced a breakdown of marriage/common-law partnership (applicable even if you do not meet the other requirements mentioned above).

Using the Home Buyers' Plan (HBP) to buy your first home

Now that you know the HBP's advantages and know if it applies to you make sure you top it up. Then get in touch with a mortgage professional and understand your financial health. Understanding where you stand will enable you to explore the market and identify real-estate listings actually within your budget. However, bear in mind that the minimum down payment must remain within your account for at least 90 days. Only then will the withdrawal qualify under the HBP programme.

Does the government require repayment?

The government gives you 15 years to repay the amount used from your RRSP(s). You can also pay up in full at any time during that period. Furthermore, the repayment period starts on the second year after your first withdrawal from your RRSP(s) for the HBP. For example, if in 2020 you withdrew $35,000 from your account to purchase your first home, you have until 2022 for your scheduled repayments to commence.

Moreover, the Canada Revenue Agency (CRA) will send you a statement detailing your HPB assessment. The document should help you understand how much has been paid back and how much you need to contribute to the RRSP(s) and the HBP balance.

Rock Capital Investments Inc. Brokerage #10556. Each office is independently owned and operated. Proud member of Mortgage Centre Canada.

10 Reasons Why Financial Planning is Important

Mon, 15 Nov 2021 18:45:05 GMT

1) Income:

It's possible to manage income more effectively through planning. Managing income helps you understand how much money you'll need for tax payments, other monthly expenditures and savings.

2) Cash Flow:

Increase cash flows by carefully monitoring your spending patterns and expenses. Tax planning, prudent spending and careful budgeting will help you keep more of your hard earned cash.

3) Capital:

An increase in cash flow, can lead to an increase in capital. Allowing you to consider investments to improve your overall financial well-being.

4) Family Security :

Providing for your family's financial security is an important part of the financial planning process. Having the right investments and policies in place can provide peace of mind for you and your loved ones.

5) Investment:

A proper financial plan considers your personal circumstances, objectives and risk tolerance. It acts as a guide in helping choose the right types of investments to fit your needs, personality, and goals.

6) Standard of Living :

The savings created from good planning can prove beneficial in difficult times.

7) Financial Understanding:

Better financial understanding can be achieved when measurable financial goals are set, the effects of decisions understood, and results reviewed. Giving you a whole new approach to your budget and improving control over your financial lifestyle.

8) Assets:

A nice 'cushion' in the form of assets is desirable. But many assets come with liabilities attached. So, it becomes important to determine the real value of an asset. The knowledge of settling or canceling the liabilities, comes with the understanding of your finances. The overall process helps build assets that don't become a burden in the future.

9) Savings:

It used to be called saving for a rainy day. But sudden financial changes can still throw you off track. It is good to have some investments with high liquidity. These investments can be utilized in times of emergency or for educational purposes.

10) Ongoing Advice:

Establishing a relationship with a financial advisor you can trust is critical to achieving your goals. Your financial advisor will meet with you to assess your current financial circumstances and develop a comprehensive plan customized for you.

Rock Capital Investments Inc. Brokerage #10556. Each office is independently owned and operated. Proud member of Mortgage Centre Canada.

Should I Choose an Open or Closed Mortgage?

Mon, 21 Jun 2021 14:29:27 GMT

When applying for a mortgage there are a number of decisions that will need to be made. One of the most important decisions is whether to choose an open or a closed mortgage. The choice depends on your personal circumstances and preference for flexibility. These mortgages are designed for different borrowers as they depend on the ability to pay off the mortgage during the term. It is an important decision because choosing the right one can result in significant savings, while choosing the wrong one can result in additional costs.

What is an open mortgage?

An open mortgage offers some flexibility when it comes to payment. The mortgage holder can increase their regular payments or make a lump-sum payment on their mortgage at any time, without incurring any penalties. Refinancing is also more flexible and cheaper with open mortgages. Open mortgages do have a term (typically 5 years or less) but the holder does not have to hold it until its maturity. Interest rates tend to be higher with open mortgages due to the increased flexibility.

What is a closed mortgage?

A closed mortgage is one that cannot be fully paid off, refinanced or re-negotiated before the end of the term without incurring a penalty. An individual is bound by its terms and conditions for the duration of the term. If you decide to pay off the outstanding balance that you owe before you reach the end of the term, or decide you want to pay off more than allowed in a given year, you will be charged with a prepayment charge. Closed mortgages come with much lower interest rates allowing you to save on interest costs and pay off your mortgage faster. This type of mortgage can be beneficial if you want a fixed monthly mortgage payment which might help when budgeting for expenses.

How to decide whether to choose an open or closed mortgage?

Before making a decision there are a few considerations to take into account, such as your ability to make payments each month, your monthly expenses, whether you will be in a situation to pay off your mortgage early, or if you plan on selling your home before the mortgage end date. For most Canadian homeowners, a closed mortgage offers the best value. The flexibility that comes with an open mortgage is not needed for most individuals and since closed mortgages come with lower interest rates a significant amount of money can be saved over your mortgage term. The flexibility of open mortgages is beneficial, however, when additional money is expected in the near future that can be used to pay off your mortgage. A few situations where you might consider getting an open mortgage is if you intend to sell your home and pay off the mortgage with the proceeds from the sale, you have an inheritance on the way, or your income is about to increase due to a work promotion or additional work income. Putting the proceeds of that money towards paying off your mortgage early can save you interest in the long run.

We can help you make the best decision for your situation

There are a lot of decisions to make when looking for a mortgage, including whether to choose an open or closed mortgage. It is important to make the right decision as the result can mean a difference of thousands of dollars, either in interest or prepayment penalties. If you need help deciding which option best meets your unique situation or would like to learn more contact one of our mortgage specialists at Kingdom Mortgages.

Rock Capital Investments Inc. Brokerage #10556. Each office is independently owned and operated. Proud member of Mortgage Centre Canada.

Tips for Transitioning from Renting to Owning

Tue, 08 Jun 2021 17:11:18 GMT

Why Consider Buying Over Renting?

To rent or to buy? That is the question, and it can be an overwhelming one when considering buying a home for the first time. A good real estate agent and a knowledgeable and trusted mortgage broker will be a huge help during this time. There are many benefits to home ownership, but there are some things to consider as you take this step. The decision to rent or own is based on lifestyle and needs. For example, do you want to put down roots in a certain neighbourhood, or do you want to have the freedom to relocate often?

RENTING offers flexibility for someone who may move around a lot, and the opportunity to have someone else take care of repairs and maintenance. There is less stability, however, as there may be unpredictable increases in rent, or a landlord may ask you to move.

BUYING offers a sense of stability and belonging. You gain an asset that stays with the family for a long time. There is more freedom as any design, renovations, or landscaping changes are up to you. There is, however, more responsibility. You are now responsible for all the repairs, maintenance, and replacements.

What Should I Keep in Mind When Buying?

While owning a home is a positive change for both lifestyle and finance, there are barriers to entry and risks to be aware of:

The amount you can borrow from a lender is limited based on your own personal situation (tip: use a mortgage affordability calculator to do the math for you!)
Mortgage rates are seen to be going up which will affect home prices and what you can afford
Need a real estate lawyer (typical transaction will cost approximately $1500)
There may be some unexpected upfront costs (e.g. buying more furniture if you move into a bigger space, or the cost of moving especially if it is a distance)
Future costs include your monthly mortgage, property taxes, potential HOA (homeowner association) fees, mortgage insurance, and any fees associated with the home buying process and upkeep of your home

How Can I Make the Process as Smooth as possible?

Take the time to make informed, not impulsive, decisions by researching the mortgage process, ideal neighbourhoods, and your budget before you begin your home search.
If possible, purchase a home in a buyer's market. This is when prices are low and availability is high. When there's little demand, buyers can often get a lower-priced home.
With a home purchase you are on the path to long-term financial growth. You will start building equity (the portion of the property that you actually “own” which grows over time as you pay off your loan) which is an asset.
Find a trusted real estate agent who is accessible, has your best interests in mind and can make your journey toward homeownership as easy as possible.

Ready to Buy? Contact Us to Get Approved for a Mortgage

We can answer your questions about renting and buying. If you would like to discuss our mortgage solutions, contact us today!.

Sources

Changes to Mortgage Stress Tests Coming Soon

Tue, 25 May 2021 22:44:03 GMT

New Stress Test Rates

What are Stress Test Levels?

Potential home buyers have their finances tested to see if they would be able to cover their mortgage payments should rates rise much higher than they were at the time they signed up for the mortgage.

Who Is Affected?

The changes to stress tests affect refinances and purchases, both for the 1st time home buyer and regular clients. If an individual has an agreement of purchase and sale or a commitment issued by a bank prior to June 1st 2021, the new stress test will not affect the approval amount, regardless if they take possession or complete the transaction any time after June 1st 2021.

How Will These Changes Affect Homebuyers?

Looking to Pass a Stress Test?

We can answer your questions about stress tests and give you tips for passing. Contact us today!.

Sources

https://www.mortgagebrokernews.ca/business-news/stress-test-hike-confirmed-356375.aspx?utm_source=GA&utm_medium=20210520&utm_campaign=MBNW-Breaking-20210520&utm_content=832030EC-B967-4C88-BEE9-B8F4682C0B79&tu=832030EC-B967-4C88-BEE9-B8F4682C0B79

https://www.osfi-bsif.gc.ca/Eng/osfi-bsif/med/Pages/b20nr-0521.aspx

https://www.canada.ca/en/department-finance/news/2021/05/statement-by-the-deputy-prime-minister-and-minister-of-finance-on-the-canadian-housing-market.html

Why You Should Consider Getting A Reverse Mortgage

Mon, 10 May 2021 13:31:09 GMT

For many people, a reverse mortgage is a great way to increase financial well-being in retirement which can positively affect quality of life.

What is a Reverse Mortgage?

Benefits of a Reverse Mortgage

Given the right set of circumstances, a reverse mortgage can be an ideal way to increase your spending power and financial security in retirement.

Key benefits and advantages include:

Lets you retire safely and securely in the home you love - you still own your home
You don’t have to make any regular loan payments
You may turn some of the value of your home into cash, without having to sell it
There are no restrictions on how you use the funds from a reverse mortgage, it is up to you
You don’t have to pay tax on the money you borrow
This money doesn’t affect Old Age Security (OAS) or Guaranteed Income Supplements (GIC) benefits you may be getting
You may have options as to when and how you receive the money

Who can qualify for a Reverse Mortgage?

How To Get A Reverse Mortgage

If you are considering a getting reverse mortgage, give us a call, email us, or book an appointment on our website! We can help you decide which option is best for you.

Sources

https://www.canada.ca/en/financial-consumer-agency/services/mortgages/reverse-mortgages.html

https://www.investopedia.com/mortgage/reverse-mortgage/

https://www.newretirement.com/retirement/reverse-mortgage-disadvantages-advantages/

Why Now is A Great Time to Get a Mortgage

Mon, 26 Apr 2021 17:01:27 GMT

During the pandemic, you might feel discouraged from getting a mortgage. However, there are many advantages to getting a mortgage during this time. Listed below are reasons for getting a mortgage this spring.

Want to learn more about how we can help you get a mortgage this spring? Schedule a meeting with us. We would love to speak with you about any questions you might have!

Need a Mortgage During the Pandemic?

Mon, 12 Apr 2021 15:00:27 GMT

It is no secret that the Covid-19 pandemic has brought challenges to those working in almost every industry. In a time of financial uncertainty, getting approved for a mortgage can seem complicated and overwhelming. However, at Kingdom Mortgages, we are here to answer your financial questions and walk with you through every step of the process. Though Kingdom Mortgages has faced some challenges in the past year, we have adapted our services to address your mortgage needs and keep you safe. Getting approved for a mortgage is manageable even during a pandemic. We are here to help!

Has Covid-19 Changed the Way We Work With You?

Virtual Client Meetings:

At Kingdom Mortgages, we have always enjoyed meeting with our clients in person to discuss their needs and assess their situation, but since the lockdown, we have had to alter our communication methods. Instead of in-person meetings, we have switched to conducting video calls with our clients.

Switch to Digital Signatures:

We will now be using digital signatures during social distancing. We assure you that this change is safe and secure.

Illustrations were modified from Freepik Storyset (https://storyset.com)

Gardening Tips

Mon, 15 Mar 2021 04:09:29 GMT

Home Gardening Tips

One of the most popular hobbies in the world, gardening, not only keeps you active but also allows you to give back a little to the world. Encouraging greenery in whatever way you can helps improve the environment and promote a feeling of well-being. Not to mention the calming effect of leafy greens improves the mood when forced to stay at home these days. However, if you find yourself without a piece of land to work with, not to worry. There are several ways you can get growing without one. Here are some of the things you can try:

Rock Capital Investments Inc. Brokerage #10556. Each office is independently owned and operated. Proud member of Mortgage Centre Canada.

Home Maintenance

Thu, 11 Mar 2021 17:13:25 GMT

Most people think that the cost of ownership includes only the mortgage and the rate. However, maintenance makes up a significant portion.

Regardless of the quality of building materials used, every house needs regular upkeep to keep it in shape. However, there are usually two types of maintenance when it comes to homeowners. Habitually keeping an eye out for signs of wear and fixing issues before things stop functioning is known as preventive maintenance. On the other hand, repairs conducted after something has rotted away or stopped working is known as breakdown maintenance. The first kind will always cost less and cause less stress than later.

Preventive maintenance is not done all at once; mostly, rather it is done when required. In other words, there is routine maintenance, conducted monthly or annually. Then you have more expensive and time-consuming upkeep ranging from intervals of two to five years, five to ten years, ten to fifteen years and then more than fifteen years. You can expect some of the following (not a comprehensive list) maintenance jobs:

Annual maintenance

Inspect and lubricate garage door springs
Clean drains and plumbing
Clean refrigerator
Check water heater
Clean out chimney and fireplace
Clean out dryer vents and remove blockages
Replace smoke detectors

Every 2 – 5 years

Caulking and grout
Sealing HVAC ducts
Termite inspection

Every 5 – 10 years

Repainting
Smaller kitchen appliances

Every 10 – 15 years

Larger kitchen appliances
Replace garage door opener

Every 15+ years

Checking your roof
Replace faucets
Check decks for rot
Replace HVAC unit

Rock Capital Investments Inc. Brokerage #10556. Each office is independently owned and operated. Proud member of Mortgage Centre Canada.

Quick Loans

Thu, 11 Mar 2021 17:01:45 GMT

Applying for any loan is a tedious and time-consuming process. Most institutions make you jump through hoops just to get in the door, let alone give you the money necessary to do what you need to do. However, it doesn’t have to be this way. At Kingdom Mortgages, we understand that buying a home is only the beginning. Every once in a while you need a little extra money. Every house, regardless of style, size or location needs a little tender loving care once every few years.

And that is at is why Kingdom Mortgages offers you exceptional ease of access. With us, you can get small, flexible loans between $4,000 and $40,000. The requirement? Own a home. As a home owner, you can use this easy financing to make home improvements such as remodeling your kitchen or adding a conservatory. You can also use these loans to consolidate your debt and possibly pay a lower rate.

Rock Capital Investments Inc. Brokerage #10556. Each office is independently owned and operated. Proud member of Mortgage Centre Canada.

Tools For Homeowners

Thu, 11 Mar 2021 16:55:00 GMT

Every homeowner experiences the pain of maintenance eventually. As with all things in this world, things break down around the house due to natural deterioration or in the event of an accident. The result of which is usually you calling over a professional to fix the problem.

However, instead of hiring someone for every little repair job, you can make one time investments into a good set of tools and learn how to do it yourself. Not only does this significantly reduce the burden on your finances in the long run, but you also get to experience a fulfilling sense of accomplishment with each fix. However, you should still hire someone more qualified if you feel like you’re out of your depth.

Here are some typical tools that every homeowner should own (remember to always use the necessary safety equipment i.e. gloves, glasses and boots):

-Claw Hammer

Claw hammers are a versatile tool for any situation. Most small fixes only ever require the right tap in the right place. Furthermore, the claw at the end is a handy gadget for removing unwanted nails and prying things open.

-Screwdriver

A decent set of screwdrivers goes a long way since everything from electronics to furniture is held together by screws these days. Even if whatever you need to fix is mostly clips, you still need a screwdriver to help pry it open. Just make sure you have both Philips and flatheads

-Allen Keys

Similarly, Allen or Hex keys are indispensable as a standard household tool, especially if you’re a fan of IKEA furniture.

-Hand Saw

Hand saws are another straightforward yet versatile tool. Often you will need to cut pipes and planks down to size or even prune some of the larger branches from the tree in your backyard. A hand saw may not be as powerful as a circular or jigsaw, but it is easier to store and use.

-Cordless Drill

Another exceptionally useful tool is the cordless drill. Being cordless, you can use this machine anywhere and everywhere as long as its charged. Just make sure you have a comprehensive set of drill bits so that you don’t have to waste time running to the store every time.

-Tape Measure

An often underrated tool in the average homeowner's toolbox is the tape measure. Although some people prefer playing it by ear, measuring and calculating distances and size can save in terms of material costs if there is a mistake.

-LED Flashlight

You may think a flashlight cannot be as important as some of the other tools described here but then you would be wrong. Flashlights are handy when working in the night and when looking into small spaces away from any source of light such as between slats, under beds etc.

Are you tired of having to get your landlord to make repairs? Let us help you buy your first home.

Rock Capital Investments Inc. Brokerage #10556. Each office is independently owned and operated. Proud member of Mortgage Centre Canada.

Rent Vs. Own

Thu, 11 Mar 2021 16:50:51 GMT

Knowing whether to rent or buy the place you live in is difficult. There are a lot of factors that determine how you choose, and there are definite pros and cons to both choices. For example, in terms of intangible benefits, renting offers flexibility and the opportunity to have someone else take care of repairs and maintenance. On the other hand, renting also means unpredictable increases in rent and lack of any equity in the long term. With homeownership, you get a sense of stability and belonging. You gain an asset that stays with the family for a long time. At the same time, owning property is a commitment. You have to make time for maintenance regularly.

Choosing between owning and renting is a matter of comfort and convenience. Some people live on the go, always moving from place to place for work or pleasure. In this case, renting offers the necessary accessibility. However, if your goal is to settle down and put down roots in a neighbourhood you like, owning is the right choice.

With every passing year it seems that, for many, the dream of moving from renting to buying a home slips farther and farther away. Comparably, Toronto also has the highest rental prices in Canada. With this in mind 2020 may be the year to really look at your finances and weigh the pros and cons of renting vs buying. If there’s one thing we know for sure, the best day to buy is always yesterday. As prices climb, the money you do have today will be worth less tomorrow.

Rock Capital Investments Inc. Brokerage #10556. Each office is independently owned and operated. Proud member of Mortgage Centre Canada.

Tips For Buying a House in Canada

Sat, 06 Mar 2021 05:09:29 GMT

For the average person, purchasing a home is a significant life goal. It is also one of the most significant investments a person makes in their lifetime. The impact of a bad deal or poorly selected mortgage broker can severely impact your financial position and state of mind. Below are a few guidelines you ought to keep in mind:

Set a realistic budget

You need to make sure you know how much you can spend safely without overextending yourself and your resources. Resolve how much you can afford as down payment (ideally 20% but you can buy for less in Canada if you have mortgage default insurance) and monthly instalments;

Create a wish list

Create two wish lists before you start, one file for things you need and one for something you want in a home. These two lists will force you to prioritize and help narrow your search for the right home. You should consider factors including the size of the house, an appropriate neighbourhood, the number of rooms, etc.

Find a good mortgage broker

Doing things yourself is essential in terms of growth and learning. However, in these troubled times, it might be a better idea to enlist the services of a mortgage broker. Mortgage brokers like Kingdom Mortgages take care of all the leg work and nitty-gritty without you having to leave the house, including getting pre-approval and finding the cheapest mortgages available.

Find the right real estate agent

While this step is certainly not mandatory in Canada, it is advisable. An excellent real estate agent can help you to find the property you want within your budget in your desired location. They can save you a lot of time and will make the home-buying process simpler and more convenient.

Prepare your Checklist

Your real estate agent will be taking you to see multiple homes. Make notes of every home you visit so you can compare them at leisure.

Conduct a thorough inspection

In Canada, the law does not require you to conduct an inspection pre-purchase. However, just as you wouldn’t buy a car without a test drive, don’t buy a house without checking to see how much work you need to do to make it livable for you.

Buying a house for you and your family can be troublesome at the best of times. There are not only financial, but emotional factors to consider as well. Therefore, it is in your best interests to hire a mortgage broker like Kingdom Mortgages. We seamlessly cover your financial needs so that you can worry about the rest.

Rock Capital Investments Inc. Brokerage #10556. Each office is independently owned and operated. Proud member of Mortgage Centre Canada.

0533b203

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2. Alternative and Private Lenders

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Buying a Home in Canada: A Guide for Newcomers

Step 1: Determine Your Budget and Needs

Step 2: Assemble Your Team and Start Your Search

Step 3: The Offer, Negotiation, and Closing

Building Your Credit History as a Newcomer

The Benefits of Working with a Mortgage Broker

A New Chapter Begins

A look into 2025.

2025 Reality Check: It’s not good.

The Impact of Rising Interest Rates

Effects on the Real Estate Market

Opportunities Amidst Challenges

Future Outlook

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In conclusion

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Payment History (weight = 35%)

Used Credit vs Available Credit (weight = 30%)

Credit History (weight = 15%)

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Public Records (weight = 10%)

Inquiries (weight = 10%)

Reasons a Mortgage can get Denied after an Approval

1. Not meeting loan requirements and guidelines

2. Change of employment and employment status

3. A Negative mark on your credit history

5. Issues With Appraisal

Advantages of Using a Mortgage Broker

Less effort

A mortgage broker has better access

A mortgage broker has the better industry knowledge

A mortgage broker has the more technical knowledge

A mortgage broker can source mortgages from multiple vendors

A mortgage broker protects your interests at all times

No service fee

Are you ready to make a decision?

5. Recognise the Significance of Taxes