5 Common Mistakes to Avoid in the Mortgage Process

General Vinil Sood 20 Jan

I have been working in lending for the past 2 years. Here are common mistakes people make.

Not checking their credit score for errors

  • Credit scores can have mistakes such as incorrect credit card balances, open lending products, and even the wrong date of birth. Check your credit score every year to make sure there are no mistakes.

Not using a Mortgage Broker

  •  You may only be able to check out a few different lenders but brokers have access to hundreds of different mortgage products, making it much easier to find the best mortgage to fit your needs.

Not having a clear understanding of what they need

  • Many people simply look for the mortgage with the best rate. However, there are many things to consider including prepayment options, penalties, and more.

Not providing documentation in a timely manner

  • This will delay the application process and may make things like credit bureau and rate holds null and void. Be sure to send your information as soon as possible.

Making large purchases during the application

  • While going through an application, be sure not to rack up debt or degrade your financial position. This may result in losing the deal, even if you have been approved.

Contact Vinil for a no-obligation meeting to help you pursue your financial goals.

Using Home Equity to your Advantage

General Vinil Sood 18 Jan

Using Home Equity to your Advantage

Canadians have been borrowing against their home’s equity in record numbers, taking out billions of dollars in cash each year. There has been a large movement to refinance home loans and pull out equity for things like:

  • Home improvements
  • Investments
  • College expenses
  • High-interest debt consolidation

Many people used to view their homes as a safe haven, but they are now more willing than ever to borrow against the equity they have in them. Whereas home equity was once relied upon, it is now frequently utilized. While taking equity out of your home may be a smart move, you should be aware of both the advantages and potential risks.

To talk about ways to make the equity in your home work for you, get in touch with Vinil.

What is Debt Consolidation

General Vinil Sood 12 Jan

The holidays are a season of giving and oftentimes, households find themselves carrying some extra debt as we enter the New Year.

Who Should Consolidate Debt

If you happen to be someone currently struggling with some post-holiday debt, that’s okay! Whether you’ve accumulated multiple points of debt from credit cards or are dealing with other loans (such as car loans, personal loans, etc.), you are likely looking for a way to simplify and reduce your payments. Rolling them into your mortgage could be the perfect solution.

Benefits of Consolidating Debt

Consolidating other forms of debt into your mortgage has multiple benefits. This can help you pay off your loans with smaller monthly payments, and often at a reduced interest rate compared to a credit card. By freeing yourself from these high-interest rates and gouging interest payments, you will not only have more money each month but have a better chance of taking back your financial control and getting your loans completely paid off!

If you’re still unsure if this is the right solution for you, here is an example… if you have $30,000 of credit card debt, you may be paying about $500 in interest. Vinil can help you to roll that debt into your home equity and monthly mortgage, your payment to this $30,000 portion with interest charges closer to $140 per month.

Debt consolidation into your mortgage may help with reducing interest charges and making your loan more manageable. It is also much easier to pay a single monthly installment versus managing many different loans or bills. Your mortgage will increase since you have to add the debt to your existing mortgage amount. However, the benefits of lowering your overall payments and management can be well worth it. Keep in mind, you need at least 20 percent equity in your home to qualify for this adjustment.

If you are looking for a way to simplify (or get out of) debt, reach out to Vinil! He would be happy to look at your current mortgage and help you come up with the best option.

Benefits of Using a Mortgage Professional

General Vinil Sood 5 Jan

While a bank only offers the products from their particular institution, mortgage brokers send business to Canada’s largest banks, credit unions, and other financial institutions. This offers their clients more choice, and access to hundreds of mortgage products!

Clients benefit from the trust, confidence, and security of knowing they are getting the best mortgage for their needs.

Canadians may purchase a home, take out equity from their home, or their mortgage is up for renewal. It is important that you are making the right decision with the right advice.