Fact: 73% of Champion Mortgage’s clients have made changes to their mortgage prior to renewal over the last seven years. The biggest reason: to take advantage of lower fixed and variable rates saving thousands in interest.

There are many reasons why homeowners seek to make changes to their mortgage including:

• Job change (70% change jobs before 4 years with the same company – Globe & Mail)
• Divorce or separation (40% of Canadian marriages end in Divorce – Stats Canada)
• Home renovations ($74 Billion in renovations expected by Canadians in 2018 – Altus Group Ltd.)
• Moving (Average Canadian owns 5 homs in their lifetime – Financial Post)
• New relationship
• Lower interest rates (Year over Year Mortgage rates dropped 27 out of the last 37 years – Bank of Canada)
• No longer able to qualify for a mortgage (1 in 6 Canadians – CMHC)
• Inheritance ($750 Billion over next 10 years – CIBC Capital Markets Research)
• Debt consolidation (5 out 10 mortgages are refinanced to pay out debt over 5 years – Canadian Association of Mortgage Professionals)
• And more

The fact of the matter is that life happens and change is inevitable. At Champion, our team regularly reviews the mortgages of all our clients to ensure that they are positioned as well as they can be to pay down their mortgage without negatively impacting their lives — especially in times of change.

Mortgage Analysis

At Champion, we conduct what we call a Mortgage Analysis. There are many factors that are taken into our analysis including:

• Current lender
• Mortgage type
• Interest rate
• Renewal date
• Payment frequency
• Amortization
• Mortgage Balance
• Product types
• Personal goals

You may notice that personal goals is one of our key analysis factors. Personal goals are not typically part of the conversation when negotiating a conventional mortgage at a big bank — generally, you will receive a couple of blanket offers without a comprehensive analysis.

At Champion, we operate differently. We believe that your unique situation impacts everything. We need to understand your risk tolerance, your income, your life stage, your plans, and your goals. The more clarity we can have about your bigger financial picture, the better our mortgage recommendations will be.

Ask yourself: Did your bank ask you about your needs or goals when suggesting a mortgage?

If they didn’t ask about your personal situation, how could they possibly make a recommendation that would be best for your life? We know that your lifestyle, needs, and goals are critical pieces of information that will help us make appropriate recommendations that will work for you.

Mortgage Penalty Analysis

Once we understand your particular situation, we will compare your lender’s penalty calculation to those of other major Canadian mortgage lenders to see how you stack up. Then, because we will have taken the time to better understand your goals, we will be able to make recommendations about how best to adjust your mortgage in order to reap the most benefit.

Here is a sample penalty estimate:

In the example above, we would suggest that the current lender has failed the penalty analysis as their charges exceed the average big five banks. In some cases, the penalty associated with breaking your mortgage to take your mortgage elsewhere may not be worthwhile.

On the other hand, despite the high penalties, it may be worthwhile in the long run to switch to a different lender to take advantage of products that offer increased flexibility and lower rates. It all comes down to your unique situation.

There are many mortgage products that offer different attributes, like repayment options and combined debt and revenue accounts, that may provide you with the ability to accelerate your mortgage repayment.

Rate Analysis

After conducting the penalty analysis, we will perform a rate analysis. In this review we will compare your fixed mortgage rate to current fixed mortgage rates to determine if there is an interest saving opportunity for you.

In this same example, we would suggest that the current lender has likely cause you to miss out on taking advantage of lower rates due to the high cost of their penalties to move into a lower-rate product.

Currently, we are seeing the best discount on prime rates since 2009. That means that variable rate mortgages are generally looking good, but this person wouldn’t have been able to make that change without incurring large penalty fees. In this case, signing on to the lower rate wouldn’t have been enough to offset the sting from the penalties.

Fixed To Variable Analysis

Following the rate analysis, and if it applies, we will conduct a fixed to variable analysis. In this review we will compare your current fixed rate mortgage to a variable rate mortgage, with the assumption that bank prime does not change.

Again, in this example, we would suggest that the current lender has caused the homeowner to miss out on taking advantage of variable rates because the penalty to break their existing mortgage is prohibitively high. There are lenders that can offer mortgages that allow you to make adjustments without such penalties.

Based on these analyses, we would recommend switching to a different lender at the time of renewal. While there may still be penalties to switch, you will avoid additional penalties to making changes prior to renewal. Depending on your situation, the benefit of switching to another lender can lead to thousands of dollars saved over the life of your mortgage.

In the end, the one thing we can all count on is that change is inevitable. At Champion Mortgage, our job is to help you handle your mortgage-related changes as smoothly and effectively as possible. If you are considering adjusting your mortgage, contact us. Let’s have a conversation and see what options you have and where we can help you reduce, or prevent, penalties.

The post Mortgage Penalties: Get The Facts appeared first on Champion Mortgage.

If you’re like most people, you’ve probably never had a mortgage check-up. At Champion, we are firm believers in having your mortgage reviewed to make sure that it is performing well for you — that’s why we offer mortgage health checks.

What is a mortgage health check?

A mortgage health check is a personalized, one-on-one review of your mortgage with a mortgage professional.

At this meeting, we will take the time to discuss and review your current mortgage, your financial plan, and your life goals.

Using this comprehensive approach, our team will be able to see the big picture of your needs, in order to assess if your existing mortgage is healthy and working for you — or if we recommend making any adjustments.

What kinds of questions do you ask in a mortgage health check?

During a mortgage health check, we will ask a variety of questions to gain a clear picture of your current situation, in order to provide a thorough review with results that address your unique goals.

Our questions may include:

• Are you looking for a new home?
• Are you wanting to refinance your existing mortgage?
• If you are buying a home, what are your down payment plans?
• If you have an existing mortgage, what lender is it with?
• What are the terms of your mortgage?
• What is the current balance of your mortgage?
• What is your renewal date?
• Do you want to take out equity?
• Are you looking to renovate your home?
• What is your employment situation?
• Have there been any changes to your income this year?
• Will there be any expected changes to your income this year?
• Do you have a personal business?
• How is your credit rating?
• Are you anticipating any changes to your family size in the next year?
• Do you plan to move in the next year?
• Have you had any significant changes with your savings or assets?
• Have you paid any debt off in the last 12 months?
• Are you comfortable with your current mortgage payments?
• Have you made any changes or lump payments to your mortgage payment in the last 12 months?

Your answers to these questions will help to frame up our understanding of your current situation and your goals. This information will help to provide you with a detailed game plan for the future.

What results will I receive from a mortgage health check?

At Champion, we have access to cutting-edge software that uses real-time data and your personal specifics to come up with recommendations that will be relevant to your situation.

This is not a one-size-fits-all result. This proprietary software is only available at a select few brokers across Canada, and we’re pleased to be able to offer it to you.

Your results will typically include:

• An analysis of whether you current lender and mortgage is positioned well, or if it could be adjusted to save you more interest and allow you to have more options/flexibility in repayment.
• A breakdown of payment frequency options.
• A review and comparison of penalties with your existing lender and the current top market lenders.
• A review and comparison of mortgage features with your existing lender and current top market lenders.
• If you are looking to sell your home or buy a home, we can provide you with a detailed report outlining the sales history, estimated value, comparable sales in the neighbourhood, and more.

At Champion, we want our mortgages to work for our clients — not the other way around. If you go many years without looking at your mortgage, and only meet with your bank when it’s time to renew, then you are missing out on money-saving opportunities. We’re here to help.

If you would like to have a Mortgage Health Check, or if you have mortgage questions, contact the team at Champion Mortgage.

The post Mortgage Health Check appeared first on Champion Mortgage.

To do this, you need to think about your mortgage differently.

It means that you no longer:

• Consider your mortgage as a long-term, regularly scheduled repayment plan towards ownership of your home.

Instead you:

• Consider your mortgage as an open-ended, any-term, debt reduction plan with all your borrowing and deposits tied to the same account.

Other areas of the world have been successfully using these types of mortgage products for many years. Canada is definitely late to this party, but the good news is that these same products are available here — and they can help you pay off their mortgage debt quickly.

At Champion Mortgage, we’re excited to able to offer our clients this option. Here’s what you need to know:

Debt & Revenue Become A Shared Account

Instead of having one account with your mortgage and another account for your savings and chequing, they are combined into a single, shared account.

Here’s how this works:

1. When your debt and revenue are joined together into one account you are able to consolidate all your debts (loans, mortgage, etc.) with one competitive interest rate.

2. Once your accounts are merged, you have the ability to instantly pay down the principal of your mortgage and loans with every deposit because the revenue will be directly applied to your       outstanding balance.

Tip: A conventional savings or chequing account will earn you almost no interest, so your money is essentially sitting there doing nothing. In a combined account your dollars go directly towards your principal and reduce the amount of interest you are paying. The interest rate on your mortgage will almost certainly be higher than your savings or chequing account — this means that using the combined account will actually get your money working for you.

3. Every time money is deposited into your account (no matter how small the amount) it immediately goes towards reducing the overall amount owing, which means that the corresponding amount of interest comes down with it. This results in your paying significantly less interest than a conventional monthly or bi-weekly repayment model.

This means that, compared with a conventional mortgage with fixed rates, terms, and repayment structures, you will save thousands of dollars in interest.

There Is No Repayment Schedule

Anytime you put money into your shared account your principal reduces. Yes, it’s that simple. Whether you deposit $5 or $5000, it all goes towards your debt.

There is no scheduled day or time to repay your debt. You have total flexibility. This means that any money deposited into your account, whether it’s your paycheck or money from a birthday gift, it all goes towards your debt.

It doesn’t matter if deposits into your account happen on the first of the month, the 15th of the month, or the end of the month. It doesn’t matter if there is only one deposit in the month or 12 deposits in the month — and you don’t have to spend time and energy writing cheques or setting up transfers in order to make payments!

Controlled Spending

As your debt and revenue accounts are merged into one account, you will use this same account to withdraw money to pay your bills, taxes, etc. You will be able to withdraw funds and pay bills with this account up to your borrowing limit, without issue.

What’s different with a combined account is that it requires you to be aware of your spending patterns in order to ensure that you are not consistently withdrawing funds on a regular basis, which would result in your not paying down your debt effectively.

If you have controlled spending habits and are able to regularly contribute to your account, then you will be able to reduce your mortgage debt faster than with a conventional mortgage. In fact, we have seen clients pay off their 25-year mortgage in 12.5 years.

If, on the other hand, your spending habits are volatile and you cannot regularly contribute towards your debt without resulting in further debt, this sort of product will not be for you.

Can I Switch To This Type of Mortgage?

We understand that this is, for most of you, a new way of thinking about your mortgage. It really is a shift in approach, but if it’s something you are able to do, you can save thousands of dollars. Give Champion a call and let’s discuss whether this type of product is right for you.

The post Pay Off Your Mortgage In Half The Time appeared first on Champion Mortgage.

We hope that this blog helps to clarify and de-mystify mortgage pre-approvals so you can feel better prepared to enter the home buying market.

What is a mortgage pre-approval?

A mortgage pre-approval is a process that a lender uses to determine the amount of mortgage that you will be able to carry and pay back.

Some lenders suggest that receiving your pre-approval is as easy as a few online clicks, and others will go through a much more formal and thorough process.

At Champion Mortgage, we understand the importance of ensuring that a complete review is conducted in order that you are presented with a realistic picture of your home buying potential.

Champion’s mortgage pre-approval process

When we meet with you, we will take the time to discuss your unique situation, your home buying goals, and your lifestyles needs. Next, we will review key documents to fully craft a vision of your financial means. These documents will include:

• Proof of income- typically via a government-issued Notice of Assessment (NOA) for the prior tax year and/or T4.
• Recent pay stubs.
• A letter from your employer stating your position, length of service, and salary.
• Information outlining any other sources of income.
• Statements for any existing mortgages.
• A credit report.
• A list of any current debts.
• And additional documents as determined based on our conversation.

Once we learn from you what you are looking for in a home, what your down-payment amount will be, and what the numbers from your provided documents show, we will be in a position to provide you with a proper assessment and pre-approval that realistically reflects your situation.

Important Fact: Unlike some lenders, at Champion Mortgage, we will stand behind our pre-approval because we will have gone through a proper review process with you.

While some lenders may pique your interest by suggesting that with a few clicks of your mouse you can receive a pre-approval for hundreds of thousands of dollars, it may not actually be viable — and you don’t want to be left holding the bag for a large mortgage that you cannot actually afford. We know from experience that a thorough review is the way to go.

A mortgage pre-approval is not a guarantee

A common misconception is that a mortgage pre-approval is a guarantee of your ability to receive a mortgage for the amount indicated on the pre-approval — this is not the case.

The pre-approval, detailed as it may be, is simply a document that informs the homebuyer of an amount that they can use as a guideline when beginning to hunt for their home. Generally, at the time of pre-approval, there is no specific house in mind, so the lender cannot assess the property to guarantee anything.

There are many other factors that need to be taken into account before a lender will commit to your mortgage. These factors may include:

• The age of the property.
• The type of property.
• A home appraisal to assess the value of the property.
• Any significant reparations that may be needed on the property.
• Any potential liens (debts) on the property from unpaid mortgage payments to back taxes.
• Any easements or variances on the property.
• And more.

As with anything in life, things change, and often when you least expect. People lose their jobs, face challenging personal events, and go through life changes — you want to make sure that you position yourself as best as you can for your home buying adventure with a proper pre-approval process.

Don’t leave major life decisions, like buying a home, to chance. Contact the expert team at Champion Mortgage and let’s get your mortgage pre-approval started.

The post Mortgage Pre-Approval & What It Really Means appeared first on Champion Mortgage.

Champion Mortgage knows that a mortgage is more than just a rate — there are many important elements and options to consider in a mortgage that will add up to make it the “best mortgage”.

Get The Big Picture

Champion Mortgage is one of only a select few mortgage companies in Canada to provide you with access to a revolutionary technology which will take your unique information and provide you with a personalized Lender Comparison Report.

This report will provide you with a quick comparison of the top four lenders in the mortgage business compared with Champion.

Click here to view an example of Champion’s Lender Comparison report by clicking here!

Mortgage Rates

We understand that one of the biggest deciding factors for many people is the mortgage interest rate.

However, what most people don’t know is that mortgage rates change every single day. When you click on a major financial institution’s website to check out their rates, what you see are not the most recent rates — they are simply the rates that they are most comfortable posting in a public environment.

Champion takes the time, every single day, to examine the mortgage interest rate fluctuations so that we can provide our clients with the best, real-time options. Larger financial institutions won’t do this for you because the fewer options you have, the easier it is for them.

Mortgage Terms

Another important mortgage consideration are the mortgage terms. Are you interested in a variable or fixed rate? Do you want a short-term or long-term mortgage? Are you looking for flexibility to renegotiate or move your mortgage?

There are many important questions to ask yourself — and we’ll help you walk through all of the available options. The team at Champion will take the time to review and discuss your particular needs to ensure that your goals are met and you aren’t locked into a mortgage that won’t work for you.

Mortgage Penalties

A key piece of information that often doesn’t get discussed by larger institutions are the penalties.

We all know that life happens and things change. If your particular situation changes, you may want to renegotiate your mortgage, switch your mortgage provider, or even terminate your contract. All of these options typically incur penalty fees, and sometimes these fees are substantial and can significantly impact your future plans.

Our Lender Comparison Report includes all of this important information, so that you can see a full picture of the implications of your decisions.

Lender Comparison Report

Our report is based on your unique situation — you plug in all the numbers — and it will provide you with detailed information including:

• Interest rates
• Monthly payments
• Term overviews
• Payment privileges
• Penalties
• Features
• Overall summary

Click here to receive your own customizable interactive lender comparison report sent straight to your inbox.

There’s a lot of information in this report and our team is happy to go over the details with you and answer any questions you may have. Contact Champion Mortgage today.

The post How Do I Get The Best Mortgage? appeared first on Champion Mortgage.

Types of mortgages

Our customers often ask us, “What is the best mortgage to get?” The answer is: there is no one “best” mortgage, as it depends on a multitude of factors and your unique situation. There are many types of mortgages on the market worth noting, and these include:  

Conventional mortgage

A conventional mortgage is when a buyer provides a minimum 20% down payment. This means that they will be eligible for a mortgage that is no greater than 80% of the appraised value or price of the home.

Pro: Providing a 20% down payment generally allows the buyer a broad choice of mortgage options and rates, sometimes with increased flexibility, depending on the lender.

Con: Having a minimum 20% down payment is difficult for most home buyers, especially first-time home buyers.

EXPERT TIP: If you have a 5% to 19% down payment, your mortgage will be insured with CMHC, Genworth, or Canada Guaranty. Most people don’t realize it but the insurance premium is added to your mortgage so you don’t have to pay it with your current savings.

Open mortgage

An open mortgage allows the buyer to repay the mortgage, in full, at any point in time, without penalties.

Pro: There are no penalties to repaying your mortgage before the end of the mortgage term.

Con: Open fixed mortgages are generally only available in shorter terms of six months or one year, and open variable mortgages generally have higher interest rates.

EXPERT TIP: Open mortgages come in many formats but are really only suited for people in the right situation. Prior to selecting an open mortgage you should really speak to Champion Mortgage.

Variable rate mortgage

A variable rate mortgage is exactly what it sounds like: a mortgage that has an interest rate that reflects the rate changes in the market.

Pro: If interest rates are low, more of your money goes towards your principal.

Cons: When interest rates are high or begin to increase, more of your money will go towards paying interest rather than principal. Market variability may also impact the timing around when your mortgage will be repaid.

EXPERT TIP: Champion Mortgage monitors prime rate changes and provides our clients with rate forecasts from our senior strategy team — you’re not left in the dark; we work with you to ensure your mortgage remains affordable.

Closed mortgage

A closed mortgage allows the buyer to lock in a fixed interest rate for a longer period of time.

Pro: Locking in lower rates for a long time can offer peace of mind.

Con: If rates decrease, you will be locked into paying your originally agreed upon interest rate or face prepayment charges to renegotiate your terms.

EXPERT TIP:  Champion Mortgage has lenders with such low mortgage penalties that if fixed rates drop we can often move you into a lower fixed rate even mid-way through your term.  We monitor this for you on your behalf so you don’t miss out on interest saving opportunities.

Convertible mortgage

A convertible mortgage offers the ability to switch from a variable rate to a fixed rate.

Pro: This may help to provide you with more control over your rate.

Con: If you change your terms then you will be subject to conversion fees.

EXPERT TIP:  All variable rate mortgages at Champion Mortgage are Convertible into a fixed rate.

Is it worth it to get a mortgage that allows me prepayment options?

There are a variety of prepayment options that are offered by the Canadian mortgage lenders. Often, lenders suggest that securing a mortgage with the flexibility to prepay is advantageous, but this may come at a price. Some mortgages will include the ability to prepay but not offer as low an interest rate, or as long a term, or may include additional terms and clauses that are not always desirable.

Prepaying your mortgage means paying more than is required in your terms in order to repay your mortgage sooner. This prepayment could be made in a lump payment or by adding more funds to each payment.

Whatever your situation, if you are able, prepaying your mortgage will reduce your total interest paid and will increase your home equity — but there is a bigger picture to be considered and additional questions that you should ask before prepaying.

1. Do you have savings for an emergency?

It isn’t fun to think about, but it’s important to be realistic and consider the unexpected. What if your car suddenly quits on you? What if a medical issue arises and you aren’t able to work? Will you have enough money available to cope with these situations if you have contributed more than required to your mortgage?

2. What kind of retirement plan are you planning for?

Whether you have a group RRSP through your work or you are using personal savings, you may want to consider having funds available to invest in your retirement, rather than your home.  

3. Are you living in your forever home, or your starter home?

If you plan on moving again in the future, then you may wish to have money available for a down payment on your new home.

Industry Fact: Only 7% of homeowners take advantage of prepayments with a lump sum.

The team at Champion recommends examining every feature offered with a mortgage including flexible payment options, penalty calculations, and other fine print that could limit your ability to adapt to a changing mortgage rate environment.

Being informed is half the battle and we are here to help. Contact our expert Champion Mortgage team for all your mortgage questions — we’re happy to help

The post Mortgage 101 appeared first on Champion Mortgage.

Unfortunately, debt-to-income ratio shows that Canadians owe $1.67 for every $1 of household disposable income, with total mortgage debt reaching over $1.3 trillion in the first quarter of 2017.

Credit card bills, loans, insurance, taxes, and mortgage payments are regularly occurring, and staying on top of all these payments can be complicated. Making sure you are paying all your bills is an ongoing chore, and it can be a struggle to avoid fees, surcharges, and compounding interest.

Every lender has different terms, amortization periods, and interest charges — and high interest rates and penalties can really add up. The good news is that there are solutions available to help you manage your debt — and we can help.

Know your options

Debt consolidation can help you pay off your bills and reduce your overall monthly payments, and learning about your options is the first step.

There are wide variety of debt consolidation products on the market, but a frequently overlooked option is to re-examine your mortgage.

For most people, your home is your largest source of equity. However, most homeowners don’t access the equity in their homes to help with their debt.

Options can include:

• A debt consolidation mortgage
  • This refinancing of your existing mortgage can allow you to borrow additional funds on your mortgage.
  • This would typically include the creation of a structured, single debt consolidation payment plan with a defined repayment end date.

• A second mortgage
  • This financing would come from your existing home equity — this is the money that has accumulated from your previous mortgage payments.
  • This would allow you to pay interest only on those parts of the loan that you use, and not the entire amount of your available home equity.

Debt consolidation questions

At Champion Mortgage, we get lots of questions about debt consolidation. Here are some of the most important questions to ask your broker when considering debt consolidation options and your mortgage:

• Is there enough equity in my house?
• How can I access the equity?
• Do I qualify for a debt consolidation mortgage?
• What are the costs involved in changing my mortgage?
• Should I wait until my mortgage comes up for renewal?

Our expert team will help you understand your options. We can help you get where you want to be and achieve what you want to achieve.

How Champion helped: A real life story

We’re proud to say that, over the years, we’ve helped many homeowners find a painless solution to pay down their debt. We’ve helped people get debt-free, we’ve helped people purchase a second home, and we’ve even saved people from foreclosure.

Randy came to us with a laundry list of bills that were past due and concerns about being able to continue to pay his mortgage. We spent time reviewing his assets, his expenses, and his goals. Then we came up with a debt consolidation plan. We helped him access the equity in his home and he was able to pay off his bills and loans — he even had enough equity left to put a downpayment on a second home and converted his original home into a rental income property!

Contact Champion Mortgage today and let us help you get out of debt.

The post Debt Consolidation appeared first on Champion Mortgage.

If you focus on only getting the lowest rate, you are missing out on the bigger picture, the bigger plan, and the biggest goal which should be: How can I lower my overall cost of borrowing for the life of my mortgage?

As part of your home buying or refinancing process, we highly recommend considering the biggest goal: keeping your overall cost of borrowing low.

Life Happens

Homeowners often get excited and feel confident about making a mortgage choice based on a low rate, but may not having considered the ‘what if’ factor. It sounds great to have a super low rate for 15 months, but then what?

• What if interest rates rise?
• What if you can’t switch lenders without huge penalties?
• What if you are restricted from helpful options, like lump sum payments or payment frequency?

At Champion Mortgage, we can tell you that, over the last 10 years, over 70% of our clients have made a change to their mortgage before the end of the 5 year mark on their mortgage. That’s a lot of people who want to adjust their mortgage situation before they originally planned.

Key Questions

Homebuyers should always try and look at their life plans, as best they can, in order to know how best to select a mortgage. Planning ahead can result in your saving thousands of dollars down the road.

Key questions to consider include:

• Do you anticipate staying in your home for five years or longer?
  • Generally, it is advised to plan to stay in your home for a duration of time (e.g. five years) before looking at selling or renting. Staying in your home will assist you in recovering your initial mortgage expenses and closing costs before you sell.

• Are you planning to start a family or grow your family?
  • While no one can predict exactly when this will happen, it is wise to consider if the home you are looking at will fit your lifestyle and budget. If you foresee needing to refinance or sell within a short period of time, then you should discuss this with your broker.

• Do you want to pay off your mortgage quickly?
  • If your goal is to be mortgage-free as quickly as possible, or in time for retirement, you will want to ensure that you have some flexibility in your mortgage payment structure and options.

• Are you covered if a member of your family faces a job loss or illness?
  • Mortgage insurance, and other payment options, are worth discussing with your broker. Some lenders offer flexible payment options, including pausing a payment, and these are considerations worth reviewing with your broker.

The fact is, having a great rate isn’t enough to help you address life changes and goals. There are many elements that need to be taken into account and many options to be considered including:

How Champion helped: A real life story

Life happens, and we will work with you to make sure you have a plan with the options that work best for you, your lifestyle, and your future. The banks won’t do this — we will.

Leslie, a young business professional, wanted to buy a condo. She was convinced that nothing was going to change in her life for the next five years and that her condo purchase was going to be a long-term investment. Leslie had a low rate mortgage plan in mind and was ready to go. In order to provide her with a big picture plan, our expert team explained mortgage breakage penalties and advised her that, if she selected a mortgage with an interest rate 0.15% higher, she would be eligible for a much lower penalty, in case her life changed. Three years later, her life changed. She got engaged, sold her condo, and bought a house with her fiancé. Fortunately, following the advice of our experts, she was able to break her mortgage and pay a penalty that was $11,000 lower than it would have been with her original mortgage lender.

At Champion Mortgage, we will identify opportunities and proactively work for you to help you make the adjustments you need, so you can live the life you want.

Contact the team at Champion Mortgage and let us help you get more than just a great rate.

The post A Mortgage is More Than Just a Rate appeared first on Champion Mortgage.

Before you meet with a realtor, before you explore neighbourhoods, and before you check out open houses, you need to know if you are actually in a position to qualify for a mortgage.

There are many questions to ask, many options to consider, and many answers you need before moving forward. Here are some key questions we hear from our customers and some helpful tips from the team at Champion Mortgage.

What’s my credit rating?

One of the first things that happens when you go to a lender to discuss a mortgage application, or complete a pre-approval application online, is that you consent that the lender run a credit report.

Lenders will require that you give your approval for them to run a credit history report in order to proceed with your pre-approval application. The credit report provides lenders with a detailed breakdown of your credit history with accompanying dates of when each type of credit or account was opened and closed.

This includes:

• Bank cards
• Credit cards
• Auto loans
• Mortgages
• Student loans
• Any information relating to past bankruptcies, foreclosures, suits, liens, etc.

The information provided in your credit report is reviewed by your lender to gauge your credit worthiness and assess the level of risk associated with lending you funds in support of your mortgage application.

It is important to note that every time a lender is given consent to access your credit report, your credit rating can be affected. This means that, if you run a number of reports in a short period of time (for example, doing several pre-approvals online with different banks), you may actually be negatively impacting your credit score.

The good news is, that Champion Mortgage will only need to run your credit report once. We are able to repurpose the information in your credit report when we reach out to multiple lenders to negotiate the best rate and plan for you. This saves your credit score from being damaged.

Can I afford a down payment?

Every home purchase requires a down payment. This is an amount of money that you put towards the purchase of your home. In Ontario, the requirements vary, depending on the price of your home.

• If your home costs $500,000 or less, you will need a minimum of 5% of the purchase price
• If your home costs $500,000 to $1 million, you will need 5% of the first $500,000 and then 10% for the remaining portion above $500,00
• If your home costs $1 million or more, you will need 20% of the purchase price

If you are self-employed, or you have poor credit history, you may be required to provide a larger down payment.

Depending on your situation, there are options that you may be eligible for to help you with your down payment and mortgage process. These options include:

• The Home Buyer’s Plan
  • If you have RRSPs, you may be eligible to to withdraw up to $25,000 (tax-free) from your RRSPs for your home purchase.

• One-Time Gift
  • If you have an immediate relative who is willing to gift you the funds for your down payment, there is a process to arrange this transfer.

• Co-ownership
  • If you have a legally-binding agreement with another person (or people) to share your home (and your mortgage), then you can look at dividing the cost of the down payment.

The good news is that Champion Mortgage will be able to guide you through all the options to help you make homeownership possible.

Can I afford the additional costs of buying a home?

Buying a home involves a lot more than simply figuring out a suitable mortgage. There are many costs involved in purchasing a home. Here are some of the expenses to plan for:

• Home Inspection Fee
• • This is optional, but is recommended to avoid potential unforeseen problems with the home.

• Deposit (this will count towards your down payment)
  • This amount indicates your intent to purchase the home.

• Legal Fees
  • Costs for your lawyer and all the accompanying paperwork.

• Title Insurance
  • Generally optional, but is recommended to avoid liens, fraud, encroachment, or other issues from prior owners.

• Appraisal Fee/Valuation Fee
  • Lenders request this to determine the property value for the mortgage.

• Land Transfer Tax
  • The tax varies depending on where the home is located, but typically includes both provincial and municipal tax.

• Mortgage Default Insurance
  • If you purchase a home with less than a 20% down payment.

Then there are costs including; interest adjustments, property tax, utilities, home insurance, mortgage life insurance, and renovation. These combined costs can really add up and need to be planned for as part of your home buying plan.

How Champion helped: A real life story

Many Canadians are struggling to qualify for a mortgage on their own, but that’s where we can help.

David came to us frustrated because he wasn’t able to qualify for the home he was looking for and was looking for a second opinion. Our team reviewed his situation and agreed that, given the mortgage rules and high property values, he simply wouldn’t qualify for the home he wanted on his own. Through our conversation, we learned that his best friend was also looking for a home and experiencing the same frustration. We suggested they consider purchasing a home together and proposed a mortgage option to get a plan in place. Our solution resulted in David and his friend being successful in buying a detached home. After living in it for five years, they sold the home at a profit of over $100,000 which allowed them to be able to buy their own homes.

Champion Mortgage will be able to guide you through all the costs and work with you to create a strategy to help make homeownership possible.

To learn more about qualifying for a mortgage, contact Champion Mortgage. Click here to request your free Lenders Report.

The post Can I Qualify for a Mortgage? appeared first on Champion Mortgage.

So what’s our angle?

We’re a different kind of mortgage broker

We won’t flash all kinds of numbers in front of you that you don’t understand.
We won’t skim over the fine print.
We won’t lock you in and keep you stuck.

We’re different.

We will listen to you, because we care about what you want, and what you need.
We will take the time to review all the fine print, and we’ll explain it in plain English.
We will offer you flexibility and we’ll review your circumstances on a regular basis.

Buying a home will likely be the biggest investment of your life, so we’ll take the time you need to make the right choice. We want you to have peace of mind and a solid plan for the future — and we can help.

Our clients get the best options

At Champion Mortgage, we have developed a proprietary software system that allows us to input your individual information and create a unique-to-you Lenders Report outlining the best mortgage options for you from a variety of lenders.

Our software is unlike anything in the mortgage industry in Canada. This specialized software is able to analyze and determine market rates and lender’s offers. It is a highly detailed and predictive tool — and this means you will have all the relevant information you need to make decisions about your mortgage.

Our mortgage experts are the only ones in Canada using this system, which means that Champion Mortgage clients are solely positioned to reap the benefits.

Click here to request your free Lenders Report.

Top reasons to work with a mortgage broker

Many people are not aware of what a mortgage broker does, or how the services are different than a bank.

In fact, Mortgage Professionals Canada’s report, The Next Generation of Homebuyers, shows that only 36% of next generation homebuyers would consult a mortgage broker prior to learning about what a mortgage broker can offer. Once people learned about the benefits of working with a mortgage broker, that number increased to 75%.

When someone invests $400,000 with a financial advisor, they never say, “Here’s my $400,000. Put it into a fund and I’ll be back in five years to see how it did.” Yet for some reason, this is how most Canadians treat their mortgage. Champion Mortgage knows that professionally managing a mortgage, and keeping on top of life and financial changes in a household, will drastically reduce the overall cost of borrowing over the life of the mortgage. Mortgage rates change daily and our expert team regularly reviews our clients’ mortgages to find opportunities to save interest and reduce costs. Over the years, Champion’s dedicated approach has resulted in saving our clients over $1,000,000 in interest!

A Champion Mortgage Broker is your expert guide. We will support you in making the best choices to achieve your goals. Our job is to help you — and we have the tools to support you throughout the mortgage process.

There are a lot of great reasons to work with a mortgage broker! Here are some of our top reasons:

• Mortgage Brokers Find the Best Mortgage Rates
  Mortgage brokers strive to get you the best mortgage rate on the market. Did you know that there are over 1200 rates on the Canadian market? Your mortgage broker will often have access to better mortgage rates with your bank than you do.

• Mortgage Brokers Don’t Charge Fees
  Mortgage brokers don’t charge a fee for their mortgage expertise, as they are compensated by the mortgage lender based on the mortgage amount and term. (A fee may be charged by your mortgage broker in special situations, such as if you have poor credit).

• Mortgage Brokers Have Access to Many Mortgage Lenders
  Your mortgage broker has access to multiple mortgage lenders across Canada. These mortgage lenders include the major banks, specialized mortgage lenders, and trust companies.

• Mortgage Brokers Provide Expert Mortgage Advice
  Your mortgage broker is focused on mortgages. They aren’t doing double duty and trying to sell you other financial products, like at a bank. This focus allows them to be experts at what they do.

• Mortgage Brokers Offer Expert Mortgage Negotiation
  Mortgage brokers save you time and money, and protect your credit rating, by negotiating your mortgage on your behalf with Canadian banks and mortgage lenders.

Did you know: 85% of homeowners renew their mortgage with their current lender and over 60% of them renew at a rate higher than what they should be renewing at.

• Mortgage Brokers are Service-Oriented
  A Champion mortgage broker will take the time to explain the details of your mortgage, including the privileges, conditions, and penalties associated with it. We will go over all the fine print with you…in plain English.

• Mortgage Brokers Offer Great Mortgage Privileges
  Mortgage brokers have access to mortgage products with greater pre-payment privileges than you will find at most banks. This helps you pay down your mortgage faster and saves you interest.

• Mortgage Brokers Find Mortgages with Low Penalties
  Mortgage brokers have access to mortgage products that offer lower penalties for paying out your mortgage early.

• Mortgage Brokers Offer Powerful Mortgage Products
  Mortgage brokers have access to many powerful mortgage products that are only available through specialized mortgage lenders and are exclusively for mortgage brokers.

• Mortgage Brokers Keep You Informed
  Banks often sign you up and then you rarely hear from them until it’s time to renew. A mortgage broker will continue to work on your behalf, prior to renewal, to ensure you get the best mortgage rate available.

• Mortgage Brokers Care About Your Equity
  Banks benefit from longer amortization periods that cost you more interest on your mortgage and increase the bank’s profits. A mortgage broker will develop a custom mortgage solution to reduce the mortgage interest you pay with an amortization period to fit your budget.

Contact Champion Mortgage and ask how we can support you in getting the best mortgage on the market. Click here to request your free Lenders Report.

The post Champion is a Different Kind of Mortgage Broker appeared first on Champion Mortgage.