Should you get a shorter-term mortgage, make extra payments or something else?

Mortgages London Ontario

When getting a home mortgage, if you can afford higher payments, often there is an option for a 15-year loan instead of one of 30-years. This can be very enticing, since you will be free of a mortgage in half the time and pay a lot less in interest.

Let’s use a $200,000 mortgage as an example the payment (P&I, Principal, and Interest, not including escrow for taxes and insurance) is approximately $955 at a 4% mortgage interest rate.  You’d pay a total of $343,739 over that 30 years. Using the same rate, a $200,000 mortgage over 15 years would require a P&I payment of $1,479 at the same interest rate, and you’d pay a total of $266,288 over the life of the loan.

If you can make those higher payments, you would be saving around $80,000 over the life of the mortgage of 15 years. There is also another option when it comes mortgage payments. You can cut your mortgage time by five or more years if you have your lender set up bi-weekly automated payments. This means that you would be paying every two weeks instead of one monthly payment. Since some months may have 5 weeks instead of 4, you end up paying an equivalent of an extra payment each year. This is an easy way to help save money while paying off your mortgage sooner.

Something Else

This is looking at your other debt, especially credit cards, store credit or signature loans. There is an average of $6,500 to over $9,000 for average credit card debt per household. Along with that, multiple sources report the average credit card interest rate rose to 15.59% in 2018.

Going back to the comparison between the 15 and 30-year mortgages, the difference between the two payments is around $500. One plan might be to pay off that credit card debt using this money. This could help get rid of credit card debt in around a year and then you could start working towards making extra payments toward your mortgage.

While you could be paying off your short-term higher rate debt, then using that money towards paying off your mortgage.

 

5 Important Tips for First-time Home Buyers

first time home buyer tips

The cost of buying a home is the biggest investment you will ever make. Buying a home is one of the biggest decisions you will ever make. It can also be a bit complex, especially if you don’t know what to expect. The rising home values and stricter guidelines can also make it difficult for first-time buyers. From mortgages to tax credits, here are some tips to consider if you are a first-time homebuyer.

1) Research the area and the market

Most people looking to buy a home know which neighbourhood or community they would like to live in. Unfortunately, it isn’t really a practical option when it comes to a value-cost perspective. While you are looking at the neighbourhood it is great to check out the local amenities, quality of the neighbourhood and consider what the travel to and from work will be like. Research the area thoroughly and decide what the right compromise might be, given your lifestyle, budget and needs.

2) Work with a broker

Fewer Canadians are going straight to their bank. Instead they are heading to mortgage brokers for a better set of options that are available. There are more than just the five major banks when it comes to the mortgage industry and there is a good chance that a smaller lender will provide you with a better rate. Brokers work on your behalf and look through the market for the best rate for your situation, this isn’t always possible when using a bank.

3) Make use of government programs

There are several first-time buyer governments grants available to help make your home buying experience easier. The Homebuyers Plan allows you to purchase your first home with as little as a 5% down payment. This is a great opportunity to become a homebuyer and start building equity at a younger age. The RRSP homebuyers’ plan also allows you to withdraw up to $25,000 from your RRSP account to buy or build a qualifying home.

4) Don’t feel rushed

Certain markets can create a sense of urgency to buy a home, one that may not even meet your criteria. While it is important to have a sense of purpose when buying a home, there will always be new listings popping up each and everyday. If you set your criteria wide enough, you’ll be sure to find something that suits your needs in a reasonable time frame.

5) Calculate all the costs of homeownership

In addition to your mortgage payment, you also need to factor utilities (heat, hydro and gas), insurance and property tax. When it comes to closing costs, there are also costs associated with buying a home, luckily first-time buyers in Canada save the Land Transfer Tax and get a nice tax refund.

What’s The Deal? Winning

Winning Community Mortgage Movement

I’m Andrew Young of Mortgage Wise Financial and Community Mortgage Movement.

What’s the deal with Winning?

I am proud to announce that Mortgage Wise Financial is the recipient of the 2018 Canadian Mortgage Award for Top Brokerage in Canada with fewer than 25 employees!

Don’t believe me? Head over to http://canadianmortgageawards.com/winners-finalists/2018-winners-finalists for a full list of the finalists.

the Canadian Mortgage Awards (CMA) celebrates excellence across the entire spectrum of mortgage brokering in Canada and continues to be the leading independent awards event for the mortgage industry. 21 prestigious industry awards are designed to ensure national recognition for large and small organizations and individual mortgage professionals.

Winning a CMA is a career-defining moment!

I can’t tell you how truly proud I am of my entire team at Mortgage Wise Financial, from the brokers to the agents, to the administrative staff. Everyone is so incredible! I also have to thank the Realtors, the Insurance Agents, the lawyers, everybody that is and has supported us in what we do throughout the years. We really want to thank you and for all being part of something very special!

I would also like to thank the award committee and everyone that voted for us and lastly thank you to whomever nominated us, we really appreciate the opportunity!

I’m Andrew Young and this is awesome award! That’s the deal with winning!

 

 

What’s The Deal? Community Mortgage Movement

Community Mortgage Movement

I’m Andrew Young of Mortgage Wise Financial and Community Mortgage Movement.

What’s the deal with Community Mortgage Movement?

I originally started the Community Mortgage Movement back in 2016 as a passion project. The whole point of the organization is to give back to the community that has helped to make me who I am today.

With every deal that I do through Mortgage Wise Financial, a portion of the proceeds go back into the community. This is done in two different ways: 1) this is my family foundation, which is through the London Community Foundation and is given in the form of an endowment. For those unaware what an endowment is, it is a fund that is a receptacle for gifts given in perpetuity. The capital of the endowment remains untouched, and only the income from the fund is used for ongoing programs and services.

2) The Community Mortgage Movement has chosen six charities, these charities have been screened and vetted by us to make sure that every single dollar that is donated is going towards someone who is in need. We piggy back on the Vital Signs report, which is released by the London Community Foundation and is released every 2 years. This report helps to identify and fund the greatest impact that will help the London, Ontario community.

When we first started in 2016, we were very successful and were able to give back $10,000 to charities within the London, Ontario community. In 2017, we were able to give back $15,000 and are goal for this year is to give back $20-25,000.

How Can You Help?

You can refer any of your friends, family, colleagues, and neighbours. Not only will they get incredible rates, competitive products, and at the end of the day they are helping out the community they are investing in.

Thank you again for helping to make Community Mortgage Movement so successful.

To learn more about our products and services visit our website

What’s The Deal? Organ Donations

Organ Donations Community Mortgage Movement

I’m Andrew Young of Mortgage Wise Financial and Community Mortgage Movement.

What’s the deal with Organ Donations?

So, on May 20, 2018 I turned 40, which is kind of a big deal and calls for a celebration. With me turning 40, it also meant that I had to renew my license through Service Ontario. The fee to get my picture taken was $90 alone, that made me angry.

However, on a more serious note, I received an organ donor reminder in the mail. I would like to talk to you today about Organ Donors. I myself am an organ donor and have been ever since I got my driver’s license. If you can, I highly recommend being an organ donor.

I would also like to mention how important this day means to me, as my father passed away 7 years ago today. He donated his retinas to this beautiful little girl. Because my dad was an organ donor, she now can see now. Even after passing, my dad was able to make an impact on someone else’s life. I personally feel like it is so important to be an organ donor!

Here are some facts about organ donations:

Age alone doesn’t disqualify you from being an organ donor! Did you know that you one donor can save the lives of up to 8 people! They can also enhance the life of up 75 people through the gift of tissue.

Your current or past medical history does not prevent you from registering to be a donor. Individuals with serious illnesses can, sometimes, be organ and/or tissue donors. Each potential donor is evaluated on a case-by-case basis.

All major religions support organ and tissue donation, or respect an individual’s choice.

Check out https://www.beadonor.ca/ to learn out how you can be an organ donor today! It only takes 2 minutes!

Closing Costs and Estimates

Closing Costs and Estimates

Several first-time home buyers are often shocked when they see the total cost of their home purchase. This blog will go over some of the closing costs of the home as well as a few “hidden” expenditures you might expect to pay

 

Land Survey

Even though most lenders may agree to the existing property survey, some might have a land survey done again, depending on the last time a survey was done.

 

Home Inspection

Majority of lenders will request a home inspection, but even if they don’t it is always something that should be done.

 

Insurance

If you are planning on putting a down payment of less than 20% of the purchase price, your lender will require that you purchase mortgage default insurance. While the cost varies widely depending on the home you buy, where it’s located and the type of coverage you require, expect to pay at least $800 per year for coverage.

 

Adjustment Costs

These are costs the seller prepaid and can include property taxes, utility bills, heating oil, lawn care or property maintenance services as well as other annual contracts. For metered services, such as hydro, gas or water, the meters are read on closing day (the day the house changes ownership), to verify down to the last cent what the seller and buyer owes.

 

Legal Fees

Your lawyer will do a title search, register and prepare your low mortgage rate and prepare the title deed of the house.

 

Land Transfer Tax

Land Transfer tax must be paid by everyone who purchases property in Canada. For first time homebuyers they can be exempt from this tax.

 

HST

Harmonized Sales Tax (HST) was put into effect on July of 2010 in Ontario and is applied to the purchase of all new homes.

 

Appraisal

Your lender will only lend you a percentage of either the appraised market value of your home, or the home’s purchase price– often, the lesser of the two.

 

Unsure about these additional costs and how they will impact buying your home? Make sure to contact me about these costs or if you have any questions about your mortgage.

 

Community Mortgage Movement’s Charity Highlight: Merrymount

Merrymount

I’d like to start to share with my followers some of the charities that myself and Community Mortgage Movement are involved with.One of the charities I work with is Merrymount.

Merrymount is a family support and crisis centre and their focus is on helping children by supporting their families in a time of crisis or transition. The ultimate goal of this charity is to provide supports and services so that families can stay together. Believe or not, it is the only centre of its kind in Canada!

 

Merrymount has been providing programs and services to London’s families and children for 142 years. Merrymount Children’s Centre was established back in 1874 as the Protestant Home for Orphans, Aged and Friendless. When the child welfare system took responsibility for the wardship of orphans in the 1890s, the Home began to shift its focus on residential care for children of families in crisis or transition. A new home was built as a Centennial project in 1967 and when the centre opened, the name Merrymount was adopted to reflect its non-denominational approach. The facility is located on 1064 Colborne Street and was built back in 1991.

They help to service over 8,000 families each year within the London, St. Thomas and Woodstock area. Some of the services that they offer include: round-the-clock programs for safer overnight care, education and prevention programs for adults and children, Is a partner in the City of London’s Social Services Network and London’s Child and Youth Network and is often the first place a family in crisis is referred.

 

Merrymount also provides families with building on their own strengths, provides resources, counselling, emergency child care and support and navigation of difficult life circumstances through their 8 different programs: Family and Child Support Program, Crisis Residential/Respite Program, Parenting Groups, Children’s Groups, Supervised Access, All Kids Belong, The Ontario Early Years Centre and the Community Outreach Program

 

If you or anyone you know is experiencing a family in crisis, contact or call them today at 519-434-6848.
If you would like to help out Merrymount or attend one of their fundraising events be sure to check out their upcoming events and help our community or if you are unable to attend they do accept donations through their website.

January Impact Report

January Impact Report

In January, Community Mortgage Movement agreed to be a sponsor for the Community Living London’s Night of Heroes. This night will be held on February 22, 2018 at the Convention Centre. This will be the third year that Community Mortgage Movement has sponsored the event. You can see a recap from the 24th annual Night of Heroes here.

 

This month I also attended a regular leadership development committee meeting at the London Community Foundation. This charity works with many leaders and advisors in the London area and to help ensure that the group remains in touch with the London community.

 

Another event that we agreed to sponsor is the “Night of Country in the Country”- in support of My Sisters Place. My Sisters Place aims to reduce homelessness for women and to support women to find and keep safe, affordable housing. At the same time, we connect women with CMHA Middlesex mental health services

 

Received a thank you from Pillar Non Profit for being a community sponsor for their 2017 Pillar Innovation Awards. The Pillar Community Innovation Awards celebrate nonprofits and charities and the individuals, businesses and government sector organizations who work with them to make our community brighter.

 

On Saturday, January 27, I attended an Ocean Wise Sustainable Seafood tasting menu at Growing Chefs it was awesome! For those unaware what Growing Chefs helps to unite chefs, educators, growers and the community. They help to get kids and communities excited about healthy and wholesome food. Since they teamed up with Ocean Wise, the event featured how Growing Chefs is committed to using local, sustainable food sources and talking about sustainable seafood in Canada.

 

With over one billion people depending on seafood as their primary source of protein. Choosing to eat Ocean Wise recommended sustainable seafood helps to relieve the pressure on over-fished species and ensures that we will be able to continue to enjoy seafood for generations to come.

 

Ocean Wise has set up a classification system, which  is based on two categories: Ocean Wise or Not Recommended, simply a good or bad choice for our oceans. Species are regularly updated or reclassified with the latest scientific information. Classifications, including changes to and Ocean Wise recommendations are provided regularly to Ocean Wise partners. Learn more about our recommendation policy or find a sustainable seafood option.