The purpose for the borrower should be solved:

The home mortgage selected should fit the purpose of the home buyer. If the home purchaser intends to live in the house he has purchased then the most suitable will be the home mortgage loan while an investor will need a residential investment loan.The loan structure:

The loan structure or the type of loan should suit the interests of the borrower. It depends on the fact whether the borrower is interested in the flexible paying option or whether he is interested to pay at regular intervals, or whether he is interested to go for a variable interest rate or a fixed interest rate, or requires an additional credit option for home improvements or for purchasing a car etc. The term of the loan should also be suitable for the borrower in selecting the right kind of mortgage loans.Loan features too need to be considered by selecting the right kind of mortgage loans:

To find out the features of the loans enough homework has to be done to analyze each and every feature of the loan, for making the right selection of mortgage loans.Features of many loan products are listed below for selecting the right mortgage loans:

Some loans offer credit facilities which can be used for home improvements and furnishings by increasing the credit limit of the current loan. This avoids the need to go to another lender for borrowing money.

Certain loans allow additional repayments through which the borrower can pay from their year end bonuses. This option saves thousands of dollars for the borrower and also reduces the loan period considerably.

Accounts consolidation option helps to merge all the transactions. It simplifies the banking, saves money paid as interest towards the loan making every penny working for the benefit of the borrower.

The option of income transferred to the loan account helps the borrower to save interest calculated on the mortgage, while allowing to access cash or allows to pay bills by making automatic transfers set into another transaction account.

Linking the mortgage with the borrower’s transaction account enables every single dollar in the transaction account to offset the interest calculated on the mortgage.

Parental leave option helps to reduce the repayments up to 50% for nearly six months time which is again subject to certain conditions and terms.

Redraw option allows to get access to additional money paid over and above the normal schedule of repayments. Refix option allows to get into another fixed interest loan at the end of the present fixed interest rate term period.

When cottages first became the vogue around the turn of the last century, those getaways were generally charmingly rustic structures designed to give their owners a taste of a simpler way of life for the summer season. But today, recreational property markets are reporting a stunning increase in teardowns and renovations – as rustic simplicity gives way to luxury accommodations. Today’s recreational property mix covers the gamut from luxury waterfront homes, resort-style condominiums, ski chalets and timeshare properties. Many of the traditional-style cottages are still standing, of course… and they sell for top dollar

on the rare occasions that they actually come on the market.

But more and more average Canadians have cabin fever: they’re looking for a recreational property both as an investment and an enhancement to their own lifestyles. And for many, the goal is achievable: we’ve seen historically low mortgage rates over the last few years – and greater affordability for ordinary Canadians. But financing a recreational property is more challenging than funding a principal residence. Traditional lending institutions typically find second homes a much less desirable investment. Purchasers are often advised to take out an equity loan or a second mortgage on their principal residence in order to buy the recreation property.

But the lending landscape has been changing in the past few years. We are beginning to see that some lenders have developed flexible new mortgage products and policies that are specifically designed for the recreational property market. The upshot is that Canadians who are longing for that cottage or condo may now be able to bypass conventional lending criteria – opening the door to ownership much sooner than they imagined. Recreational property mortgages are available for owner-occupied second properties, including winterized and nonwinterized, with as little as 15 per cent down for purchasers with good credit. And in some cases, 10 per cent down could get you into the recreational property market if you qualify. Typically, the vacation property needs to be located in a known vacation area, have approved plumbing, and year round access.

And do your homework. In today’s heated recreational property market, some purchasers have an edge in the marketplace because they are cash buyers. To level the playing field, buyers who are financing their purchase may want to consider talking to a professional to determine approximately how much they qualify for before launching their search.

For some, recreational property is an attractive investment, with rentals providing an extra income stream. But the allure is usually more emotional: a cottage or condo often becomes a symbolic centre for family life, where families come together at all ages and stages in their lives to share common activities and traditions.

If you’re dreaming of your own beach sunset or the perfect ski slope at your door, begin with a conversation with a mortgage professional. Your own getaway could be closer than you think!

That’s why it’s such great news for Canadians that the mortgage industry now has national accreditation: the Accredited Mortgage Professional (AMP). When you meet with a mortgage broker with an AMP, you’ll be assured that your business is in the hands of a professional.

Canadians are accustomed to purchasing financial products like investments and insurance from an accredited professional. Now they can look for a similar professional designation from their mortgage expert.

Like similar accreditation programs for mutual fund sales people, or stock brokers, the AMP is designed to ensure an appropriate level of training and experience. Mortgage professionals from every field are eligible to acquire the accreditation: from mortgage brokers on the front lines to those who specialize in lending or mortgage insurance, for example.

While the vast majority of Ontario mortgage brokers take seriously the important responsibility that they have to their clients, the designation provides mortgage customers with a tool to help select their mortgage expert. This kind of designation is especially valuable in an industry where provincial regulations vary – and so a variety of practice standards are in place. A single national proficiency standard brings mortgage brokers in line with other financial professionals.

The AMP designation can now offer you confidence that your mortgage broker has industry experience, has taken ethics and industry training, and is committed to a program of ongoing education to retain their designation. In order to qualify for the designation, mortgage professionals must have at least five years experience or successfully complete a recognized mortgage professional proficiency course, and take an ethics training course. They must also commit to a minimum 10 hours of continuing education each year, and agree to be governed by the professional code of the national CIMBL organization.

With a growing number of Canadians now seeking the services of independent mortgage brokers to help them assess their mortgage options – in a $600 billion industry – the timing is perfect. It’s your money, after all, and you should have the tools to make the best possible decision. An independent mortgage broker can offer you the broadest range of mortgage rates and options. Now they can also offer you the added assurance of their newly minted designation: the AMP.

This information is tabulated, and then you are assigned a credit rating. It’s important for you to maintain as high a rating as possible. The following information shows you how you can be sure to earn a good score, and why it’s so important to do so.Lenders Have Access To This Information.

Think about it. When you decide to apply for a mortgage for a home purchase, or a hefty loan for home renovation – don’t you want A+ right up there beside your good name?Your Good Name Is Really What It’s All About.

In the financial world, your credit profile is your reputation. If you have a good record, it means smooth sailing ahead for you. If your record isn’t all it should be, you might be in for a bit of rough weather when it comes to acquiring the monies you need — at the interest rates you want.Your Payment History.

Credit card debt — is one of the most important factors considered when your score is being tabulated. Any missed, late, or neglected payments are duly noted. Not only does a prompt payment history buff your credit image — it saves you money in interest, and assures a quicker retiring of that debt too. Timeliness Of Payments.

Actual amount of payments, the state of your credit card balances versus credit available, the number of cards you own, the frequency of your requests for more credit – These are just some of the tidbits of personal financial information that make up your credit profile. This comprehensive history is compiled to show lenders how reliable a debt risk you are. To put it simply they want to know whether or not you are credit worthy. Your credit score is established with a mathematical formula.

Various factors are weighed and balanced and given a certain percentage value towards your final score. Credit bureaus also take into consideration — in addition to factors already mentioned — your existing debt burden, your actual and potential income (remember you do give out these details when you apply for credit), your debt to income ratio, your past financial problems (any bankruptcy or foreclosure remains a long time on record), your job stability -

essentially any piece of public information that helps build an accurate as possible risk assessment of you as debtor.Your Credit Rating Is A Fluid And An Ever-Changing Thing.

It is dependent upon your present financial circumstances and any actions you make. The credit bureaus always follow your money trail. Because the formation of your profile is an on going thing, it’s vital for you to consistently practice reliable and responsible debt handling. The good news? The ever-changing quality of your credit rating allows you to continually aim for a higher score. Think of your rating — not as a burden — but as a challenge and an opportunity.Infrequent Requests For Additional Credit?

That’s a really good sign to a lender. Keep in mind that mortgage and loan shopping won’t impact you negatively if it’s done in a concentrated time period. The credit bureaus interpret this flurry of activity positively — as long as it doesn’t occur too frequently. You want to look savvy, not desperate.How Much Plastic Is Too Much?

Too many credit cards red flag you to potential lenders. Limit your cards to three or four, and try to maintain longtime use of at least one card. This is a key way to build up an excellent credit history. The amount of credit you use, versus credit available, is really telling too. Keep your balances low.It’s Your Right To Pull Up Your Credit Report Profile.

This is something that is in your interest to do so. (You can do this online at www.equifax.com). Experts advise you to check it out at least once a year. Doing so gives you the opportunity to correct any errors or misinformation that may be there. Practice reliable and responsible debt management.

Then, when you do actually need money for a major undertaking (like the purchase of a home), your credit rating will be an asset, not a liability.

That’s a big part of the attraction of cash-back mortgages. A plump cheque is a psychological boost to home buyers who have just made one of the biggest financial commitments of their lives. As mortgage brokers, we like to work with our clients to ensure that they look beyond the temporary “feel good” of the cash, and weigh their options wisely.

Remember that the cash-back option comes with a trade-off: if you choose not to take the cash back, you can get a lower interest rate. Over time, you could see substantial savings in interest payments.

So, start with the most important question: What will the cash be used for? Is this purchase a priority, and is it worth the difference in the rate? Perhaps you have a plan to take advantage of the cash-back to purchase the household appliances for your new home. The extra $3,000 for new kitchen or laundry appliances may be an urgent immediate need and a higher priority overall than the lower interest rate for your mortgage term.

But here is the second question to discuss with your mortgage broker: What will be the impact of the rate difference over time? You’ll need real-life figures to work out the details for your personal situation, but let’s look at an example*:

Let’s say that your cash-back option pays 1% of the mortgage amount on a two-year deal, 3% on five years, and 5% cash back on a ten-year closed mortgage. And let’s assume that you’re looking at borrowing $100,000 for a 5-year term, amortized over 25 years. Not long ago, you might be looking at the difference between cash back and a rate of 6.60%, or a discounted interest rate of 5.29%.

So what’s the bottom line? Your cash-back option would give you $3,000 up-front, but over your 5-year term, you would pay a little over $6,300 more in interest costs than you would have with the discounted rate. The exact cost of the cash-back option in this example is $3,330.44 – paid out over 5 years.

Is that a good deal? It depends. Did you get the much-needed appliances for your home… or use the funds to manage a high-priority expense? Then you probably got good value from the option. If – five years later – you can’t remember where the money went, then perhaps you didn’t make the best trade-off.

The hot housing market is being fuelled by mortgage rates which are the lowest they’ve been in almost 50 years. First-time home buyers are finding the rates attractive, and home buyers are lining up to purchase their first home or to upgrade to their dream homes. Housing statistics have been capturing headlines for months and the boom is noticeable on key economic indicators.

But the news isn’t just about rising valuations or Canadians moving into their new homes. Quietly in the background, there is a significant trend to refinancing. Canadians who have built up the equity in their home over the last few years are borrowing against that equity in record numbers. According to a report from a major bank, since 2001, Canadian households have taken out approximately $20 billion in cash out of their homes through mortgage refinancing and home equity loans.

We might thank the Ontario mortgage industry for the surprising resilience of the North American economy. In the past two years, the North American economy has endured numerous economic fallouts but consumer confidence remains reasonably strong – at least partly because homeowners have seen some of their losses offset by an increase in their real estate wealth. We find that we are sitting on (and sleeping in) the best-performing investment we own. And even if they have no plans to sell, homeowners have found that the return on their investment is still as good as cash in the bank.

That cash has been a key economic stimulus both here and in the U.S., where the trend is even more pronounced. As Canadians look beyond the view of a home as primarily shelter, mortgages become a valuable resource – and homeowners aren’t necessarily waiting for renewal time to cash out some of their gains.

So where is the money going? The equity being pulled out is often being used to pay down other more expensive debt. Credit card interest rates are shockingly high and – as a nation – our credit card and other consumer debt is continuing to grow. And much of the money is being used for increased spending. There has never been a better time to borrow against home equity to build the kitchen of your dreams, add a new wing, embark on the landscaping project you’ve wanted for years, enjoy the vacation you’ve always dreamed of, or help with the high cost of post secondary education. However, as always, never let your enthusiasm for the opportunity to spend get in the way of good common sense about debt management.

Over the last few months, one question I’m often asked is…”How can I attract purchase money prospects without involving local Realtors/Agents in the referrals process.” Let’s face it, as mortgage rates move around and the refinance applications continue to decline, a solid system for generating purchase leads is a must to ensure your survival.

The following system can generate a huge number of qualified mortgage leads for you. There’s no begging for leads involved plus, delivering donuts and rate sheets are not a requirement. What is required to implement the system is some initiative on your part, coupled with a little today’s technology.

The technology you’ll need is called a “call capture” system. In case you’re unfamiliar with “call capture,” it’s simply a toll-free number and system that you dedicate to your personal mortgage advertising. The toll-free number captures every single phone number that dials your toll-free number. This includes unlisted, blocked, and cell phone numbers. Plus, if the number is listed in a directory you’ll also receive the name and address of the caller. A great by-product of this system is that even if your prospect hangs up before finishing his/her request…their phone number is still captured giving you the capability of following-up.

Usually, “call capture” companies and marketing programs recommend that you give the toll-free number to a Realtor/Agent and allow them use the system to capture leads via their property listings. Since you are the mortgage person of choice…you have full access to the leads as well. The problem with using the “call capture” in this manner is that it doesn’t work if you’re new to the business or haven’t established a good working relationship with a Realtor/Agent.

Using “call capture” to distribute free reports is different and…It cuts the Realtor/Agent out of the equation. The best part is that all of the leads you generate are exclusively yours.

Here’s how it works…

Incorporate and offer targeted “free reports” into all of your marketing materials, advertising, fliers, brochures, door hangers, business cards, and everything else that promotes your mortgage business.

While your competition is offering the traditional “low mortgage rates,” or “a free appraisal or pre-qualification,” you’ll be offering free information using targeted “free reports” instead. Here’s just a few examples of “free reports” you can offer:

1. 5 Mortgage Secrets Every Homeowner MUST Know, but Lenders Don’t Tell

2. Tips Your Banker Doesn’t Want You to Know About When Shopping For a Mortgage

3. 5 Reasons Why You Should Refinance

4. How to Secure a Mortgage with Damaged Credit

5. Why Owning Your Own Home Is Better Than Renting

6. Free Report Reveals Home Inspection Tips That You Need To Know Before Purchasing

By promoting simple targeted “free reports” like these, you can generate hundreds of calls, all from potential clients that want and need this valuable information. Once your caller requests the report, simply send it to them and then follow-up with a phone call. This accomplishes two very important things:

1. You have identified a potential client, and

2. This gives you a unique opportunity to present yourself as a trusted advisor and expert, not just another salesperson.

You’ll notice that I use the phase “targeted free reports.” By promoting a specific group of reports you can target the types of customers you prefer to work with. You may target home buyers, first-time buyers, refinance prospects, FSBOs or, the credit challenged. The choice is yours…and the huge number of leads that you generate using this system…are also yours.