Mortgage Purchasing and Mortgage Refinancing in Ontario
For 27 years, Canadian Mortgage Services have been assisting clients with their mortgage purchases and refinances in Brampton, Mississauga, Oakville and surrounding areas. We know how to get you the best deals and service to make sure you have the best experience and results.
Mortgage purchases and refinances are very different, and therefore require different skills and expertise to properly execute a mortgage that suits your needs and financial objectives. Canadian Mortgage Services will work with you to access your mortgage for either a purchase or refinance anywhere in Brampton, Mississauga, Toronto and the surrounding cities.
Get a free consultation for mortgage purchasing and mortgage refinancing.
With a free consultation, we assess your long and short term financial goals to help select the right mortgage product. That’s right… a product! A mortgage is similar to any physical product you can purchase in a store or online. A mortgage requires some attention to the finer details, terms and conditions associated with that mortgage. Interest rates are important and will most likely be any client’s main objective. Aside from rates however, it is important to talk about the terms and flexibility of your mortgage including the length of term, type of rate, amortization, etc.
Mortgage Purchasing vs Refinancing Mortgages in Ontario
For purchases, you may want to consider the duration of time you will spend in that home amongst many other factors. For a refinance, it may be smart to consider consolidating any high interest debt into your mortgage to allow you the flexibility of paying less while freeing up cash flow. We think that over time, Brampton home owners have been readjusted to focus primarily on the bank posted rates and less on ‘mortgage flexibility’. With our services, we will go through the extent of working out multiple scenarios for your purchase or refinance to ensure that you understand the difference between your options, therefore making it easier to draw on the pros and cons of each route.
Get mortgage advice you can trust
Quite often in the mortgage industry, representatives will lure clients in with promises of posted rates. Is that really all that is important in this entire process? This is the biggest investment of most people’s lives, one that deserves a little more attentions to details you may not immediately concern yourself with. If there is one thing we can tell you, it is that by using our services you will be guaranteed to walk away with the best mortgage you qualify for plus much more advice than would otherwise be disclosed to you by our competition. It’s as simple as that.
Canadian Mortgage Services is a mobile mortgage broker serving Brampton, Mississauga, Oakville, Toronto and the surrounding areas. If you’re looking for assistance with your mortgage purchase or refinance, you’ve come to the right place. You can trust our experience and expertise to get the best mortgage advice. Call us today at 905-455-5005 to book an appointment.
FAQ’s - Purchases & Refinance
Q: What is the main difference between purchases & refinances, when it comes to mortgages?
A: The main difference is in the purpose of the mortgage, whereby in the case of the former, you require financing to complete the purchase of your home. In the latter, you are literally Re-Financing your existing mortgage in order to potentially serve various needs. For example, you might want to take out some funds to renovate or to use towards investment endeavours. Perhaps you want to extend the amortization on your existing mortgage in order to lower your payments and increase cashflow. Another example might be that you want to get better terms and options as it relates, you’re your current situation.
Q: Is the approval process different?
A: The overall process is similar, however, there are a few differences when it comes to documentation and application notations. For example, in the case of a purchase, you would need to provide an accepted purchase and sale agreement. Alternatively, for refinance, you may need to explain the reasoning behind your desire to refinance. In both cases, however, you would need to demonstrate your ability to make repayments (income), acceptable credit profiles, and sufficient equity.
Q: What are the differences in down payment requirements in a purchase vs refinance?
A: Purchases can allow for down payments as low as 5% of the purchase price. These types of approvals require default insurance from an insurer (CMHS, Sagen or Canada Guaranty) in order to protect against any loan losses to the banks or other lenders. Refinance’s do not qualify for default insurance (unavailable), and since any mortgage greater than 80% of the value is legally required to obtain default insurance, the maximum mortgage that can be approved via refinance is therefore 80%. This is the only way to be legally compliant without the need to secure the default insurance.
Also, its important to note that whereas in the case of a purchase, you are literally providing the down payment cash in this transaction but for refinance, you are retaining at least 20% of your equity (determined by an appraisal)