Blog by Boychuk Mortgage Group

Choosing between a fixed rate mortgage and a variable rate mortgage is one of the biggest decisions a borrower will have to make when applying for a mortgage. After all, the choice they make could affect their finances for several years. Fixed and variable rates exist so that borrowers have the freedom to determine what works best for them. However, each option comes with its own set of advantages and disadvantages, and trusted mortgage broker Boychuk Mortgage Group would like to shed some light on both to help borrowers make suitable decisions.

As mortgages involve significant sums of money, applying for funding usually entails a complicated process. The process is designed to ensure the legitimacy of the transaction and confirm that the lending party is dealing with a credible borrower. To break down the mortgage process and help home buyers get approved for the finances they desire, mortgage broker Boychuk Mortgage Group have broadly explained the five parts involved in the mortgage process.

For individuals looking to enjoy the comforts of a customized home, building a brand new one is the most suitable option. However, constructing a house is just as costly as buying an existing one. As a result, seeking financial options is a must. One of the most popular financial solutions for building a new house is a home construction loan. This financial option allows individuals to borrow money to pay for materials and labor throughout the course of their construction project. With sufficient financial backing, they don’t have to compromise on quality, design, or even plot selection.

Our last blog covered mortgage options for self-employed individuals (click here to read the blog), where we spoke about “B” lenders and private lenders. Both of these lenders are alternative mortgage lenders, which means they are substitutes for Canada’s six big banks, credit unions, & mortgage financing companies. These lenders are lenient with borrower eligibility requirements compared to the “A” lenders. They also offer more flexibility and are understanding with their policies. This makes them ideal for individuals with low credit scores, low income, and those who are self-employed.

Did you know that the mortgages available to self-employed individuals are different from those individuals who a company employs? They are offered a different kind of mortgage due to their income, which may fluctuate depending on their earnings per month. If you’re a part of the self-employed community looking for funding to buy a new home, you’ve come to the right place. In this blog, mortgage broker Boychuk Mortgage Group has explained mortgages for self-employed individuals and how they work. Keep reading to learn more. 

As you pay down your mortgage, you build equity in your home. This equity can be referred to as the percentage of the property you’ve currently paid for. In other terms, equity is the current value of your home, less your mortgage balance. The more mortgage debt you pay off, the more equity you gain. Similarly, if the value of your property increases, so will your equity. Lenders will loan up to a total of 80% of your home’s current value and will be subject to standard lending guidelines. This equity can be withdrawn to help you cover different expenses like a second home, renovations, or even to consolidate debt. To access the equity in your home, there are a few different mortgage options to consider. One of the more common solutions is refinancing.

If you’re in the market for a second property, it’s important to distinguish the difference between an investment property and a second home. While both are often considered the same, there are distinct factors that result in both types of homes being treated differently when applying for a mortgage.

Before you begin searching for that forever home and looking to secure mortgage financing, you will need to know the home buying process. There are a number of steps involved in purchasing a home and unless you’ve been through the process before, it can be an overwhelming experience for many. Two common areas where home buyers often seem perplexed are mortgage pre-approvals and rate holds.

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