Julie Morris- Mississauga and Oakville Real Estate Expert
November 21st, 2017 
Julie Morris
Broker

Royal LePage Real Estate Services, Brokerage

cell:416.315-5189
Buyers Tips

Buyers Tips

Your Dream Home Meets Reality! Talk to the Julie Morris Team 
At the Julie Morris team, we are knowledgable about diverse markets within the Greater Toronto and Western Suburban areas. Good neighbourhoods, areas of increasing value, well managed condo buildings, neighbourhood price trends-we monitor them daily!
Get started! Write out your "Wish List" then prioritize your "must haves" so that you buy what you need and what you can afford- to own and maintain at this time in your life. We won't talk you into anything you don't need or can't afford!
We will help you choose location, style, amenities, and recommend renovations and upgrades to ensure that your home becomes your sanctuary and your best investment.
Get Pre-Approved for New or Renewal Mortgages and Guarantee Your Rates! says Julie 
Mortgage Rates are at historic lows. What a great time to buy or to renew your mortgage! As soon as you consider buying a home, contact the Julie Morris Team to discuss a pre-approval. Once you are pre-approved, the mortgage company will lock in your rates for a guaranteed period of time. If rates go down, they will give you the lower rate; if rates go up, they may not increase your rates within the guaranteed time. You cannot afford to neglect a pre-approval.

Current mortgage holders, get pre-approved now for your mortgage renewal. Do not automatically sign the renewal that comes by mail. Nearly every time our mortgage company can negotiate you a better rate even with your own bank! Savings? Think half a percent or 1% of your total mortgage over its remaining number of years. Thousands of your dollars can be saved.
Why Make a Big Down Payment? Lisa's Tip 
The basic idea is that the larger the down payment, the smaller the total amount of interest you will pay over the life of your mortgage. However, if you will need money for such essentials as home renovations, it might be better to take a larger mortgage for these needs than to pay for them on high-interest credit cards/lines of credit - especially at today's low mortgage interest rates.
If you can make a 25% down payment on your purchase you also avoid a mortgage insurance premium. We discuss all these options with our buyers -especially if this is a first home!
Andrew says, Save Money with bi-weekly or weekly payment and special priveleges! 
Paying extra amounts off your mortgage can make a BIG saving over time because the extra payments are paid directly off the principal amount. Each dollar paid off the principal amount saves you interest on that dollar! The Julie Morris Team will be happy to explain this to you at the start of your home shopping!
Weekly or Bi-Weekly Option: Most mortgages have the option to allow payments to be made on a weekly or bi-weekly basis. You can pay off your mortgage about 4 years sooner! If your employer pays you on a weekly or bi-weekly basis, you can simplify your budgeting by making the payment line up with your pay periods.
Prepayment Priveleges:We always look for mortgages with pre-payments options; for example, A 20% pre-payment privilege will allow you to pay off up to $20,000 per year on a $100,000 mortgage. The privilege payment should be flexible to allow you to pay smaller payments on the mortgage and as often as you can. An extra $1,000 periodically paid off the principal of a mortgage will help you become mortgage-free faster and will save thousands in interest!
Reduce the CMHC insurance fees on your mortgage!
Reminder from Lisa 
When you require a mortgage for more than 75% of the purchase price of a property, the mortgage must be insured by Canada Mortgage and Housing Corporation (CMHC) or GE Mortgage insurance. The larger the down payment,the smaller the insurance premium. When you finance your property at 95%, a premium of 3.75% is added to the mortgage. By increasing the down payment to 10% of the purchase price the premium is reduced to 2.5%.
If you can put down 25%, you can avoid any additional insurance fee. Be sure to advise us if you need mortgage insurance so that we can ensure adequate time for the financing conditions in your Offer to Purchase.
Depending on your situation there are ways that you can structure this financing to avoid the CMHC or GE insurance premium.
Short Term Rates vs. Long Term Rates - Consider the Market! 
The options for mortgages available can be very confusing for most mortgage shoppers. The Julie Morris Team will discuss all of these with you and make sure you get updated information!
Terms for mortgages vary between variable and fixed rate, 6-month terms to 10 year terms. Taking a variable or floating rate mortgage can have savings. Typically the shorter the term or guarantee of the rate, the lower the rate will be. This does not always happen, depending on the market place and the economy, but history has shown that short-term rates tend to be lower than long-term rates. The up side of variable rate is the strong potential for interest rate savings. The down side is the fact that you are accepting the interest rate risk without a guarantee. If you are considering a variable rate mortgage you need to look at your own risk tolerance, and your cash flow available to deal with potential increased payment. Considering projections of rates and where we see interest rates heading can also be important in this decision. Make sure you talk to an expert when you are making this decision.
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