By: Save With Neil  09-12-2011
Keywords: Mortgage

Although many home owners hesitate when considering the possibility of taking on more debt against their home in the form of a mortgage, ultimately it may make sense for them to do so for several different reasons. With the high rate of unsecured debt growing at approximately 30% per annum in Canada, and disposable income growing at approximately 3% per annum, consumers on average are spending money much faster than they are making it. For this reason, many look to the increased equity in their homes in order to increase their cash flow by consolidating their outstanding debt load. This debt consolidation approach actually saves the consumer money, especially with the mortgage rates being at an all time low. The consumer also saves money by consolidating, simply because there is a difference between the mortgage rates and the unsecured rates, by a significant margin.

Other reasons that home owners may re-finance their homes are, home improvements or renovations. With the high cost of homes these days, many are choosing to make changes to their existing homes by renovating their basement, improving and updating their kitchen space, and their bathrooms. There are those who do an equity take-out for investment purposes, or to purchase another home or recreational property. With the higher cost of second mortgages, consumers with equity for the most part will choose to combine their existing first and second mortgages to improve their cash flow situation.

Keywords: Mortgage

Contact Save With Neil

Email - none provided

Print this page

Other products and services from Save With Neil


Self Employed

Where traditional financial institutions have given the answer “No”, Mortgage Edge routinely says “Yes” and gets you a product that suits your needs at an extremely competitive rate. Rental - Construction - Cottages/vacation homes - Multiplex - Investment. Income - Non-verifiable - Salary + commission - Seasonal. Recent job start/change - Work experience outside Canada.


Renewals/Transfers (Switches

Early renewals at the retail Banking level,, are not always what they appear to be and are promoted as a way to ultimately secure a rate before maturity, which again ultimately is not the best rate and costs the consumer more than it should. Most mortgage lenders will typically send out a renewal offer to their existing clients approximately 30 days prior to the renewal date with posted rates, which are higher than their best rate.


High Ratio Mortgage Insurance Premiums

There are also programs available by the insurers that allow for the self-employed borrower unable to prove qualified income, to obatin mortgage financing under an Alt "A" program, who otherwise would not qualify under the traditional guidelines. The following is a break down of the premiums depending on the loan to value ratio , for high-ratio mortgage loans offered for programs through both CMHC and Genworth Financial.


First Time Home Buyers

There are also programs available through Genworth Financial and secondary mortgage lenders through a self-insured program, that allow for 100% financing with higher premiums for the greater risk they take on these types of transactions. Just be aware that these mortgages are offered at posted rates, (significantly higher than discounted rates), and the cash back is pro-rated in the case that you re-finance your mortgage.


Repeat Buyers

Something else that the Repeat Buyer should also take into consideration before making a decision on their new purchase and mortgage is whether or not the product they currently have with their existing lender is right for them. There are variations of products in the market place today, which can assist you in paying off your mortgage quicker.



With our pre-approvals, we provide a four month rate hold, and purchasers can be at ease with the buying process in order to make sure they purchase the home that best suits their needs. This process also provides First-Time Buyers a great opportunity to become more educated by asking all their questions well ahead of time so that there are no surprises.