Given the current economic climate I know paying down your mortgage is not a priority for a lot of people right now but if not today then sometime in the future you can apply these strategies.

There are two main ways to pay down your mortgage.
• Accelerate your payment frequency to weekly or bi- weekly (both have the same affect) so you pay every other week or every two weeks. On a typically 25 Year amortization this strategy can shave roughly 3 years off your mortgage payments. Not bad for just a payment frequency change.
• Lump sum payments. You can apply lump sum payments by increasing your mortgage payment, applying a lump sum payment periodically or a combination of both.

Here are some examples.
• $500,000.00 mortgage say on a 5 Year fixed at 3.00% over 25 years. Current monthly payment $2366.23. Mortgage balance in 5 years $427,372.90. Amortization remaining 20 Years.
• Bi-weekly accelerated payment $1183.11 so half of the monthly payment above. Mortgage balance in 5 Years $414,521.14. Your mortgage balance is $12,851.76 lower. Amortization remaining 17 Years and 4 months.
• How about you increase that bi-weekly payment by just $50.00 so now the payment is $1233.11. Mortgage balance in 5 years $407,516.50. Now the difference between the initial monthly regular mortgage balance is $19,856.40 and that is just in the first 5-year term. Amortization remaining 16 years. Naturally you can increase your payment by more then $50.00 if you have the cash flow. Typically mortgage lenders will allow anywhere from 15% to 20% additional pre payment of the mortgage amount annually.

So, you do not have to win the lottery or be able to make large lump sum payments to pay down your mortgage faster and save thousands in mortgage costs.

Happy Easter and Happy Long Weekend,

• It was a more stable week in the mortgage world this week, the stock Market is another story, with not too much news or activity. Most people seem to be settling into now to the new reality and waiting to see what happens next.
• Mortgage rates have settled down and we do not expect to see too much movement in nay direction for the next few months. Remember lenders have now reduced their prime rate on the variable products so the variable product is attractive again.
• It is business as usual, but we seen a slow down in applications which is expected given the circumstances.
• We are seen some lenders tighten up there lending guideline on some products but nothing too drastic yet. With the Government interventions, who are now helping to insure refinance mortgages too I do not believe lending guidelines will change that much.
• Lender will be more diligent on verification of income and will most likely wait until closer to closing to do so.
•
Government Program Updates
• For those of you applying for assistance through the Government personal and business programs remember you can apply directly through your CRA online personal and business accounts. For the small business loans up to 40k you apply through your bank.

Have a great weekend.

Take care
Robert Clancy

Mortgage Refinancing
Currently we are seen a lot of volume in mortgage refinancing with most lenders back on schedule with there turn around times. Refinancing is used to consolidate debts to improve cash flow by lower your monthly debt costs, taken out equity for a purchase of some kind including down payment on a property, Adding on a secured line of credit for future use or obtaining a better interest rate on your mortgage. Depending on your mortgage you are in, the cost to break your existing mortgage can be as low as 3 months interest which is blended back into the mortgage.

If you are interested in exploring any of the above refinance options, please call or email me.

Robert Clancy
Residential and Commercial Mortgage Agent
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SAFEBRIDGE Financial Group
Broker License #10524
Direct Line | 416-899-1467
Fax | 1866 385-4049
Facebook: https://www.facebook.com/bestratesmortgages/
E-mail | robert@safebridgefinancial.com
Website|www.bestratesmortgages.ca

Self Employed Mortgages
It is business as usual in the mortgage world although lenders are monitoring the current situation and implementing changes as they move along. For self employed borrowers the lenders will look at the industry of the borrower to get an understanding of how that industry maybe effected by the current economic situation. Remember when qualifying for a self-employed mortgage your last two years tax returns are used to qualify or if they are not strong enough then your last six months bank statements so a lender cannot call an employer for employment status. So, their approval judgement will be based on the income documents along with how the borrower’s industry is currently been affected.
Please reach out with any questions.

Thanks
Robert Clancy
Residential and Commercial Mortgage Agent
————————————————-
SAFEBRIDGE Financial Group
Broker License #10524
Direct Line | 416-899-1467
Fax | 1866 385-4049
Facebook: https://www.facebook.com/bestratesmortgages/
E-mail | robert@safebridgefinancial.com
Website|www.bestratesmortgages.ca