Archive Monthly Archives: August 2010

Toronto Debt Consolidation Loan

“Toronto Debt Consolidation Loans Are Typically Institutional or Private Residential Mortgages”

A Toronto Debt consolidation loan will most likely come from refinancing an existing mortgage, securing an additional mortgage, or placing a first mortgage on a piece of unencumbered residential real estate.

Most consumer debt consolidation is done through mortgages due to the fact that consolidation speaks to new higher loan value and in many cases is accompanied by strained credit or repayment.

With higher loan amounts comes a greater demand for security which is where mortgage financing comes in. And with solid repayment and credit, bank or institutional refinancing can be secured for up to 80% of the appraised value of the property through an insured mortgage.

For more challenging credit, lower financing amounts can be secured by what we would call B institutional lenders and if credit or repayment is further limiting, private mortgage financing can be obtained.

Most Toronto debt consolidation loans involving mortgage financing will require a new mortgage to replace the existing mortgage plus other debts you would like to consolidate into the new mortgage. One of the keys to this process is to make sure that you determine, if possible, the best point in time to perform the consolidation in order to minimize any prepayment penalties you may incur to payout the first mortgage.

Its also going to be important to weigh the net cost benefit between redoing a first mortgage or getting a second mortgage and if the second charge position should be a term loan or line of credit.

The best way to make sure you’re taking a debt consolidation approach that is going to benefit you going forward and can be put into place for the least amount of cost is to work with an experienced Toronto mortgage broker or mortgage specialist.

For most bank and institutional mortgage deals, the cost of the broker is paid by the lender, so you get all the value of their service for no cost. If you credit is constrained, you may need to acquire a private mortgage which will likely require the assistance of a mortgage broker to gain access to a relevant private mortgage lender.

If you need a Toronto debt consolidation loan or are looking into different debt consolidation strategies, I suggest you give me a call so I can quickly assess your situation and provide you with relevant Toronto debt consolidation loan options to consider.

Click Here To Speak With Toronto Mortgage Broker Joe Walsh

Toronto Mortgage Refinancing

“We Provide Toronto Mortgage Refinancing Options For Residential and Commercial Mortgages”

Toronto mortgage refinancing has become a bit more complex lately as the mortgage markets continue to settle out from the impacts of the recent recession.

Its not always going to be a given that your existing mortgage provider will renew your mortgage term, even if you’ve kept your payments up to date.

Over the last year or so there have been some mortgage company failures which has resulted in their portfolios either being sold off or taken over by a receiver whose job may very well be to just collect mortgages as the mortgage terms expire.

Even if you’re not in this type of situation, depending on your financial profile and the type of real estate property you own, there may be less options available to you than their were a few years ago as some of the program offers in the market have contracted.

When going through a Toronto mortgage refinancing exercise, you also have to be aware of the upward pressure on interest rates and that it may be wise to lock in a rate with another institution prior to your term coming due to protect yourself from interest rate increases prior to the end of the interest term as well as avoiding any prepayment penalties for renewing the mortgage early.

If you’re looking to get a better deal and/or consolidate debt through your Toronto mortgage refinancing activities, the best way to approach this exercise is to work with an experienced Toronto mortgage broker who has a solid working knowledge of the current market. For residential mortgages from institutional or bank mortgage providers, the broker is typically paid by the lender, providing you with their expertise and services for free in most cases.

Because of all the changes taking place in the market and the upward pressure on interest rates, making the right mortgage refinancing decision for your particular situation may be harder to figure out than you may think. And even if you’re able to complete the refinancing activity, its easy to leave money on the table with a less than optimal mortgage financing option.

If you’re considering a Toronto mortgage refinancing scenario, I suggest that you give me a call so I can quickly assess your situation and provide you with relevant mortgage refinancing options for your consideration.

Click Here To Speak With Toronto Mortgage Broker Joe Walsh