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Reverse Mortgage - Facts Vs Myths Many misconceptions abound about the Reverse Mortgage. When clients are educated, Reverse Mortgages may be the ideal solution for there financial needs. Myth : The bank owns the home Fact: The homeowner always maintains title ownership and control of their home, and they have the freedom to decide when and if they’d like to move or sell. Myth : Those with a reverse mortgage will owe more than their house is worth Fact : HomeEquity Bank’s conservative lending practices allow clients to take a maximum of 55% of the home’s appraised value. In fact, 99% of HomeEquity Bank’s clients have equity remaining in the home when the loan is repaid. Myth : Reverse mortgages are too  expensive because the rates are high Fact : HomeEquity Bank rates are modestly higher than regular mortgages because there are no payments required. Myth: A reverse mortgage is a solution of last resort Fact : Many financial professionals recommend a reverse mortgage because i
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MORTGAGES FOR SENIORS When a person retires, he or she may see a dramatic change in their income - at a level a lot less than they were accustomed to when working. Perhaps they had saved money for retirement, but some incidence may have occured to use up these savings, perhaps an illness. How do people meet these finnacial challenges? Over the past few years, as home prices have escalated, substancial equity has been built up in their home. Do you tap into this equity to free up funds for use. What are the pros and cons? What types of mortgages are available?  Reverse mortgages, lines of credit and equity take-outs are available. However the amount of income and debt level may make one or more of these unavailable. Over the next few days, each one of the types will be discussed along with the pros and cons for each.  Are there other reasons that a senior may wish to pull equity out of their property? Perhaps they want to help with the down payment of a child who wishes
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Is It Time To Refinance? When people take on a mortgage the majority opt for a 5 year one usually because they intend to stay in the residence and they know their payments for the next 5 years. However life sometimes throws a curveball at us and we have to make hard financial decisions. Perhaps an illness occurred or 1 person was laid off or a divorce occurs and suddenly you can't pay for anything in cash anymore and resort to using credit cards. As we well know credit cards companies love this because the amount of interest you are paying increases. Perhaps you took a 5 year mortgage out several years ago You now look at how you can lower your payments and because mortgage rates are at a historical low these days it makes sense to look at breaking your mortgage and taking on a new one at a lower rate.  Paying off credit cards at 20% + interest looks attractive when you can get a new mortgage under 4% these days. Before you do anything you need to know what it will cost to b
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Private Mortgages - Are They Good Investments To Make Me Money?

  With interest on bank saving accounts yielding little return many folks hear others talking about how they are getting high returns from investing their money in private mortgages. You look at your saving accounts and returns and begin to wonder - is this something I should look at?   You wonder why would a person not go to a bank for their mortgage? Sometimes good people who have worked to keep their credit in good standing run into problems:   - a person loses their job and needs the mortgage while they are between jobs   - a person has a recent bankruptcy, consumer propsal or collections and regular lenders will not look at      them for at least 2 years   - a mortgage is up for renewal and they do not qualify for another one because the debt level is too high     compare to the total income  - perhaps a divorce or separation has occured  - a person was forced to find another job but at a lower salary  - a lender has called the mortgage in and is foreclosing on a
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Understanding and Keeping Your Credit Score Healthy

One of the least understood financial tools that a consumer has that affects their ability to borrow and at what rate is the credit score commonly known as the beacon score. This is a number that is assigned to you based on various criteria that a lender looks at to see if you are an applicant that they consider being financially able and credit worthy to repay a loan or mortgage. In Canada there are 2 credit rating bureaus – Equifax or Transunion. Each has their own scoring system and they may or may not contain the same financial information. Equifax has a number system from 300 to 900. A number above 700 is considered good while a number in the 300-400 range is very poor. Prime mortgage lenders look for a number from 620 to 650 to consider a candidate. There are alternate or “B” lenders that will go as low as 500 and private lenders do not look at the credit score. The   credit score is made of 5 different components: a)      Payment history           35% b)     Debt
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Why Is the Lender Asking For An Appraisal As A Condition For My Mortgage Approval?

Sometimes a mortgage agent runs across a situation where the client is questioning why the lender has imposed a certain condition ie property appraisal. The client may say that their neighbor or relative or friend just got a mortgage and they did not have to pay for an appraisal on the property.   If a client qualifies, some lenders will use what is called an APV or Automated Property Valuation. This saves the cost of an appraisal along with moving the mortgage application approval process along much faster. H owever, some types of applications and properties will continue to require a full appraisal, such as but not limited to: - properties with values greater than $750,000 - mortgage amounts greater than $600,000 - construction draw financing (progress advance) - rental properties - all New Immigrant and BFS  (Business For Self) applications - restricted properties - recreational properties - unique properties including Leasehold Tenure - the p
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What a mortgage agent does

Many times we hear the question: what is the difference between a mortgage agent and a bank employee taking an application? I would like to suggest what I see is the major difference between a bank and a mortgage agent. Anyone can help an excellent credit worthy client get a great mortgage and it is done quickly. We obtain mortgages from the big banks also. On the other hand some people have seen their credit rating slip usually through no fault of their own. Perhaps a husband or wife lost their job or a construction guy was injured on the job and money is stretched thin and maybe credit card payments are late or missed. EI helps but it is capped and temporary.There are many reasons. Banks don't want to deal with these clients. First Line had a "B" lender side as to Bank of Nova Scotia. They withdrew from this type of lending. This is where we play a critical role. We look for the companies that deal with these types. Many times it is a difficult process but if we get th
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