Why use a mortgage broker? I love my bank.
How can I trust you? How are you regulated?
What is the "best mortgage"? Isn't the interest rate the most important thing?
How much can I borrow?
Home Improvement / Renovation: Will it increase the value of my home?
Q. Why use a mortgage broker? I love my bank.
A. We love your bank too! In fact, as your mortgage broker, we will evaluate all of the current rates and terms offered by every major bank along with trust companies, credit unions and private lenders to find you the "best" mortgage. Since we place hundreds of mortgages each year it's only natural that we can negotiate a better rate than you can - this will save you loads of time and can save you thousands and thousands of dollars in interest payments and potential penalties down the road.
Q. How can I trust you? How are you regulated?
A. As an independent licensed mortgage broker , we are bound by the Mortgage Brokers Act and registered with the Financial Services Commission of Ontario to represent your best interest (not the lender's) so you can trust us to work diligently on your behalf. Unlike many other mortgage brokers, The Personal Mortgage Group is not affiliated with any particular lender so have no hidden motivations for where we place your mortgage.
Q. What is the "best mortgage"? Isn't the interest rate the most important thing?
A. Rates are definitely important but they are not the only factor that you should consider when looking for a mortgage. For instance, our average client breaks a mortgage after 3.2 years. Why does this happen? This can happen for many different reasons, for example; the market changes and they want to switch to a lower rate, they outgrow their current home, they downsize from their current home, or they get a job transfer. In light of this reality, it is important that you consider all of the other aspects of the mortgage including the penalty to break the mortgage, pre-payment privileges, what (if any) guarantees are offered for locking into a fixed rate from a variable rate, etc. Call today to speak with a Lending Consultant and we can assess your plans and determine what type of mortgage is best for you.
A. If your are purchasing a home you may be able to borrow up to 100% of the purchase price. If you are re-financing the amount varies based upon several factors including your credit, job stability and your property. Speaking to one of our Lending Consultants can help you determine the best course of action.
Q. Home Improvement / Renovation: Will it increase the value of my home?
A. An increasing number of people are making the most of the current low interest rates to borrow money to improve their home, and see the spending as an investment for the future.
The classic way for homeowners to increase the value of their house is by remodeling existing rooms or adding on to its current plan. Some choose to build recreation rooms and studies while others add new appliances, fixtures and cabinets to enliven rooms and make their home more attractive to future buyers.
But when should you decide to stop sinking money into a home and buy a bigger place? And how much renovating is too much when it comes time to recovering remodelling costs through a home sale. For instance, if you've just spent $1,000.00 remodelling your living room and you didn't expand your small bathroom, the chances of increasing the number of interested buyers are slim. With these concerns in mind, I can offer a few tips for those struggling to add value to their home.
In general, here is an average pay-back for specific renovations (the value added to your home as a proportion of the total cost of the renovation):
Interior painting and decor (73%)
Kitchen (72%)
Bathroom (68%)
Exterior painting (65%)
Flooring upgrades (62%)
Window/door replacement (57%)
Main floor family room addition (51%)
Fireplace addition (50%)
Basement renovation(49%)
New furnace or heating system (48%)
Source: 1999 Renovations and Home Value Survey published by the Appraisal Institute of Canada.
First, always protect the character of your home. Nothing sticks out more than a new addition that is in a completely different architectural style. Be consistent. Recognize your home's character and stay within its framework. The most financially rewarding areas to remodel are usually the kitchen and bath. Newly re-done cooking spaces and cabinets can attract more buyers and may command a slightly higher price for the home than a comparable one on the market. Simple repairs that are made to last will bring you the biggest returns upon sale. Enlarged bathrooms are the most popular attraction for new home buyers, according to the National Kitchen and Bath Association. Today, the most popular additions for younger buyers are sunken whirlpool baths and showers. But be sure to install modest, solid amenities. It's easy to quickly over-spend on bathroom fixtures.
Buyers are, by convention, more interested in above-ground living space ­ not basements, yards and walkways. Swimming pools can be a poor investment if installed for the sole purpose of increasing a home's value; it's rare that a pool's cost will be recovered in a home sale. It can also be a negative feature for potential buyers with very young children. Replacing worn carpeting, tiles and wood floors can give your home an immediate advantage over similar properties in the area. Updating paint colours in all areas of your home can also prove beneficial. However, it's recommended that you use neutral colours, such as grey, beige and off-white when adding new floor and wall coverings. Fewer buyers will then turn away because of differing tastes.
Stay simple with your remodelling and look at your home as though you were the buyer. Chances are that if you find the upstairs bedroom could be brightened by a larger window, potential buyers will probably feel the same. Don't go overboard. Concentrate on improving two or three deficiencies in your home. More than likely, the time and money you spend adding quality to your home will be rewarded with greater profit at selling time.
