18 Mar

Smart Buyers Use Rate Holds To Save Thousands!

Latest News

Posted by: Elena Bogomaz

I’ll revise the website post to improve SEO by addressing reading ease, passive voice, and sentence length:

What Is A Rate Lock? Your Shield Against Rising Interest Rates

Looking for ways to save money on your mortgage? A rate lock can help. This tool protects you from market changes while you finalize your home purchase.

Rate Locks Made Simple

A rate lock freezes your interest rate for a specific time period. Your lender guarantees this rate while they process your application. Most locks last between 30 and 120 days. This means market rates can go up, but your rate stays the same.

Why You Need a Rate Lock

Rates change daily based on many factors. The economy shifts. Markets fluctuate. Government policies update. Without a lock, your initial rate quote might increase before closing day.

Let’s look at real numbers. Take a $500,000 mortgage. A mere 0.5% rate increase adds $140 to your monthly payment. Over 30 years, that’s $50,000 more from your pocket.

Key Things to Know

Before you lock your rate:

  • Check how long locks last ( 90 or 120 days are common)
  • Ask about fees for longer locks
  • Plan for closing within your lock period
  • Look for “float-down” options if rates drop later

Best Time to Lock

Smart timing helps you secure the best rate. Consider locking when:

  • You have an accepted offer on a home
  • Rates sit at low levels
  • Experts predict rate increases
  • You know your exact closing date

I can help you decide when to lock your rate. We’ll create a plan that fits your home buying journey.

Want to learn more about rate locks? Have other mortgage questions? Contact us today!

#MortgageStrategy #CanadianRealEstate #FinancialPlanning #MortgageBroker #InterestRates #HousingMarket

24 Feb

These Secrets Every Self-Employed Buyer Needs to Know. Avoid These Mistakes!

Mortgage Tips

Posted by: Elena Bogomaz

 

Are you a self-employed professional dreaming of buying a home but worried your tax returns will hold you back? If so, you’re not alone. Many self-employed buyers feel like the traditional mortgage system isn’t designed for them.

However, the good news is that qualifying for a mortgage without tax returns is possible, and it’s easier than you might think.

In this post, we’ll break down the top mistakes self-employed buyers make, share expert tips to improve your chances of approval, and reveal a game-changing solution that could help you get into your dream home faster. Let’s dive in!

Section 1: Common Mistakes Self-Employed Buyers Make

1. Underreporting Income to Save on Taxes

First and foremost, it’s tempting to write off expenses and minimize taxable income. However, lenders use your **taxable income** to determine how much you can borrow. As a result, if your income looks too low on paper, you might not qualify for the mortgage you need.

**Pro Tip**: To avoid this, work with your accountant to balance tax savings with mortgage eligibility.

2. Carrying Too Much Debt

Another common mistake is carrying too much debt. Specifically, lenders look at your **debt-to-income ratio (DTI)** to assess affordability. Therefore, high business or personal debt can hurt your chances of approval.

**Pro Tip**: To improve your DTI, pay down debts before applying for a mortgage. Even small reductions can make a big difference.

3. Not Planning Ahead

Finally, many self-employed buyers fail to plan ahead. For instance, most lenders require **at least two years of income reported on your taxes** to qualify. Consequently, if you’re just starting out or haven’t filed your taxes properly, this can be a major roadblock.

**Pro Tip**: Start preparing early by organizing your financial records and filing taxes on time.

Section 2: The Game-Changing Solution for Self-Employed Buyers

Now, here’s the secret many self-employed buyers don’t know: **alternative lenders** can qualify you for a mortgage using just **6-12 months of bank statements**. Importantly, no tax returns are needed, but your taxes must be **up to date and filed**.

This option is a game-changer for self-employed professionals who:
– Have fluctuating income.
– Write off a lot of expenses.
– Don’t want to wait years to qualify.

How It Works:
Instead of focusing on taxable income, alternative lenders analyze your **cash flow**. By reviewing your bank statements, they can assess your ability to repay the mortgage, making it easier for self-employed buyers to get approved.

Section 3: Tips to Improve Your Chances of Approval

1. Keep Your Taxes Up to Date: Even if you’re using bank statements, lenders want to see that your taxes are filed.
2. Maintain Strong Credit: In addition to income, a good credit score can open doors to better rates and terms.
3. Work with a Mortgage Broker: Finally, a broker who understands self-employed borrowers can help you navigate the process and find the right lender.

Conclusion:
In conclusion, buying a home as a self-employed professional doesn’t have to be a distant dream. By avoiding common mistakes, preparing your finances, and exploring alternative lending options, you can qualify for a mortgage faster than you think.

Ready to take the next step? Book a **free consultation** with me today, and let’s create a plan to make your homeownership dreams a reality.

 

6 Feb

Buying a Home Together? Here’s Your Ultimate Mortgage Prep Checklist!

Mortgage Tips

Posted by: Elena Bogomaz

Dreaming of Buying a Home with Your Partner? Start Here!

Buying a home together is an exciting milestone, but before you dive into house hunting, there’s one crucial step: getting mortgage-ready as a team. Let’s break it down so you can approach the process with confidence and clarity.

Why Preparation Matters

Applying for a mortgage isn’t just about love—it’s about strategy, preparation, and being on the same page financially. Lenders will evaluate both of you, so it’s essential to have your financial ducks in a row. Here’s what you need to know:

1. Employment History: Show Stability

First and foremost, lenders want to see stability. Ideally, both of you should have at least two years of consistent employment in the same field. If one of you has recently changed jobs, don’t worry—just be prepared to explain the reason.

2. Credit Scores: Aim High Together

Here’s the thing: lenders will look at both credit scores. To qualify for the best rates, aim for a score of 680 or higher. If your score needs work, now’s the time to pay down balances and avoid new credit applications.

3. Income & Assets: Combine Your Financial Power

Your combined income and assets play a huge role in your mortgage application. Lenders will look at your gross income, including bonuses, commissions, and even rental income if you have it. They’ll also want to see proof of assets like savings, investments, or gifts from family.

4. Debt Obligations: Keep Your Ratio in Check

Shared or individual debts can make or break your debt-to-income ratio. To improve your chances of approval, keep your total debt payments (including your potential mortgage) below 44% of your gross income.

Why This Checklist Matters

Being prepared doesn’t just save time—it can also save you money in the long run. By addressing these key areas, you’ll streamline the application process and position yourselves as strong candidates for approval.

Ready to Take the Next Step?

If you’re ready to turn your homeownership dreams into reality, let’s chat! Book a call with me today, and together, we’ll create a roadmap tailored to your unique financial situation. 🏠✨

Buying a home is a big decision—let’s make it easier!  Book a call with me today, and I’ll guide you through the process, answer your questions, and help you secure the best mortgage for your needs. Schedule now! 
https://calendly.com/elenab-mortgages/mortgage-discussion?
29 Jan

Choosing the Right Mortgage Agent For You.

Mortgage Tips

Posted by: Elena Bogomaz

Choosing the Right Mortgage Agent For You.

Choosing the right mortgage agent involves several important steps to ensure you find someone who will best serve your needs. Here are some key considerations:

  • Trust and Communication: Choose someone you feel comfortable with and who explains everything clearly—no jargon, just honest, straightforward advice.
  • Check Reviews and References: Don’t just take their word for it—see what other clients have to say about their experience.
  • Experience Matters: Choose a broker who is a full-time professional and fully dedicated to mortgages, not someone who does it part-time.

A full-time professional stay updated on market trends, lender options, and regulations, ensuring you get the best advice and deals.

The right broker can save you time, money, and stress—let’s make your dream home a reality! Ready to get started? Message me today!

#MortgageBroker #CanadianRealEstate #HomeBuyingTips #MortgageAdvice #FinanceGoals

 

16 Jan

Are you leaving free money on the table?

Latest News

Posted by: Elena Bogomaz

Are you missing out on Canada’s most powerful tool for first-time homebuyers?

Most first-time buyers don’t know about this trick to maximize their home savings. Do you?

Did you know the First Home Savings Account, or FHSA, can do more than just help you save for your first home? Let me give you some insider tips you probably haven’t heard yet!

First, if you’re in a high tax bracket, consider this: Contribute $8,000 in December and claim the tax deduction for this year. That’s nearly $4,000 back in tax refunds for your contribution. It’s like free money to help you buy your dream home!

Then, contribute another $8,000 in January. That’s two refunds in back-to-back tax years—up to $8,000 tax refund in your pocket in just a few months!

Here’s another: Not sure when you’ll buy a home? No problem. Use your FHSA to grow your savings tax-free, even if homeownership is years away. And if plans change, you can roll those funds into your RRSP without affecting your contribution room.

And couples, listen up! You and your partner can each open an FHSA, doubling your tax advantages. Even if only one of you is buying, you both benefit.

The FHSA isn’t just a savings account—it’s a powerful tool for building wealth and achieving homeownership. Want to make the most of it? Reach out today, and I’ll help you craft a strategy tailored to your goals!

#FHSA #FirstHomeSavingsAccount #CanadianHomebuyers #MortgageTips #FirstTimeHomebuyer #SaveForAHome #TaxFreeSavings #WealthBuilding #FinancialFreedom #HomeOwnership #RealEstateCanada #MortgageExpert #SmartInvesting #DreamHomeGoals #FinancialPlanning

23 Nov

Breaking mortgage news that could save you thousands!

Latest News

Posted by: Elena Bogomaz

The biggest lie in Canadian mortgages? That you’re free to switch lenders. Today, that lie becomes truth – and it’s about saving families thousands.

Remember that feeling when you got your first mortgage approval? Today, something just as significant happened in Canada, but most homeowners don’t even know about it…

For the past decade, we’ve watched families struggle with a painful choice at renewal: stay with their current lender regardless of rates or attempt to qualify at an artificially high stress test rate just to switch. It was like being forced to prove you can run a marathon when you only needed to walk across the street.

But today marks a historic shift. That stress test barrier? Gone. And here’s why this matters: By 2026, about 70% of Canadian homeowners will face their mortgage renewal. Many of them purchased during the ultra-low rates of 2020-2022, and they’re looking at payment increases of up to 40%.

Think about that for a moment. Your neighbor with an insured mortgage could always shop freely for better rates. But if you put down 20% or more – essentially being more financially responsible – you were penalized with fewer options. Until today.

Let me break this down with real numbers: On a $500,000 mortgage, even a tiny 0.20% rate difference could save you $4,800 over your term. That’s $57 extra in your pocket every single month!

This isn’t just about numbers. It’s about choice. About fairness. About having the freedom to make the best financial decision for your family without artificial barriers.

If you’re facing renewal in the next few years, this changes everything. Let’s talk about what this means for you.

#MortgageSavings #HousingMarket2024 #OSFIUpdate #RealEstateCanada #HomeownerRights #MortgageBroker #RealEstateInvestment #CanadaHousing #RateWatch #FinancialFreedom

2 Sep

The Benefit of Rate Holds

Mortgage Tips

Posted by: Elena Bogomaz

Purchasing your first home is an exciting and rewarding experience. To make the mortgage process smoother, consider getting pre-approved for your mortgage.

What is a Rate Hold?

When you get pre-approved, you secure a fixed interest rate for 90 to 120 days. This doesn’t lock you into a specific lender but protects you from potential rate increases while you shop.

Key Advantages of Rate Holds

1. Protection from Rate Increases

A rate hold ensures you receive a guaranteed interest rate for up to 120 days. This shields you from potential rate hikes. If rates drop during this period, you can still benefit from the lower rate.

2. Enhanced Financial Planning

Knowing your exact rate helps with budgeting and financial planning. It provides clarity on your monthly payments and helps you find a home within your price range. As a result, you can ensure future financial stability.

3. More Time to Shop

A rate hold offers peace of mind, allowing you more time to shop for the right home without worrying about fluctuating rates. You can explore different mortgage options and lenders without feeling rushed.

4. Stress Reduction

Rate holds alleviate stress from market uncertainties and rate fluctuations. After recent market turbulence, having a secured rate reduces pressure. If your rate hold expires, applying for a new one is simple.

5. Securing a Competitive Rate

While current interest rate increases are unlikely, securing a favorable rate now can save you money in the long run. Locking in a good rate can be beneficial if market conditions change.

Summary

Rate holds offer peace of mind, financial security, and the ability to make informed decisions when entering a mortgage agreement. They are particularly useful in fluctuating interest rate environments or when delays in finalizing a mortgage are expected.

Contact Us for More Information

If you’re looking to buy a home or need more details about rate holds and the mortgage process, contact Elena at 647-945-3681 today.

15 Aug

A Comprehensive Guide for First-Time Buyers in Canada

Mortgage Tips

Posted by: Elena Bogomaz

First Time Home Buyer Guide- 2024

A Comprehensive Guide for First-Time Homebuyers in Canada: Key Programs and Strategies for 2024

Buying your first home is a significant milestone. It can also be a challenge, especially in Canada’s competitive housing market. Thankfully, several programs are available in 2024 to help first-time buyers. This guide covers essential programs and strategies to help you succeed.

While the First-Time Home Buyer Incentive (FTHBI) has been discontinued as of 2024, several valuable programs remain available to help you achieve your dream of homeownership in Canada.

Home Buyers’ Plan (HBP)

How It Works:

  • You can withdraw up to $60,000 from your RRSP tax-free.
  • If you buy with a partner, you can combine withdrawals for up to $120,000.
  • You have 15 years to repay the money, interest-free.

Why It Matters: This plan allows you to use your retirement savings without penalties. Therefore, it makes affording a down payment easier.

First-Time Home Buyers’ Tax Credit (HBTC)

Tax Relief:

  • You can claim up to $1,500 in federal tax savings.
  • This credit reduces your tax bill for the year you buy your home.

Eligibility: You and your partner can share this credit. However, the total cannot exceed $1,500. This credit eases the financial burden in your first year of homeownership.

HST & GST Housing Rebate in Ontario

Federal and Provincial Rebates:

  • You can recover some GST/HST paid on new or renovated homes.
  • The federal rebate applies to homes priced under $450,000.
  • Ontario offers a rebate of up to $24,000, even for higher-priced homes.

Eligibility Criteria:

  • The home must be new or substantially renovated, bought from a builder, and located in Ontario.
  • You must use the home as your primary residence. Additionally, it must be unoccupied before you take possession.

Impact: These rebates significantly reduce the tax burden on new homes. As a result, buying a home becomes more affordable.

Ontario Land Transfer Tax Refund

Available Refunds:

  • You can receive up to $4,000 on the provincial land transfer tax.
  • In Toronto, you can get an additional $4,475.

Who Qualifies:

  • You must be a Canadian citizen or permanent resident.
  • You need to occupy the home as your principal residence within nine months of the purchase.

Why It’s Helpful: This refund can offset a large portion of your closing costs. This is especially valuable in high-tax areas like Toronto.

First-Time Home Savings Account (FHSA)

Saving Strategy:

  • You can contribute up to $8,000 per year, with a lifetime maximum of $40,000.
  • Contributions are tax-deductible. Moreover, withdrawals for home purchases are tax-free.

Advantages: Using both the FHSA and RRSP can increase your down payment. Consequently, you can secure a better mortgage.

New 30-Year Amortization for New Builds

Policy Change:

  • Starting August 2024, first-time buyers can choose a 30-year amortization for new builds.
  • This option lowers monthly payments but increases total interest.

Considerations: While this option makes monthly payments more manageable, it also increases the long-term cost due to higher interest.

Smart Strategies for Ontario’s First-Time Buyers

Maximize Your Savings:

  • Use both the FHSA and RRSP (via HBP) to increase your down payment.

Focus on Credit Score:

  • Aim for a credit score of 680 or higher to access better mortgage rates.

Get Pre-Approved:

  • A pre-approval helps you understand your budget. It also strengthens your offer in a competitive market.

Plan for Closing Costs:

  • Budget for closing costs, typically ranging from 1.5% to 3% of the purchase price.

Seek Professional Advice:

  • Work with an experienced realtor to navigate the complexities of buying your first home.

Think Long-Term:

  • Consider the potential for appreciation and resale value when choosing a home.

Conclusion

Buying your first home in Canada can seem daunting. However, with the right programs and strategies, it’s achievable. Take advantage of these opportunities. Consult professionals, and plan carefully. Your dream of homeownership is within reach.

Final Tip: Stay updated on any changes to these programs. As government policies evolve, informed decisions today will lay a strong foundation for your future.

#FirstTimeHomeBuyer #OntarioRealEstate #HomeownershipGoals #MortgageTips #CanadianHousing #NewHomeOwner #PropertyLadder #HousingMarket #RealEstateCanada #HomeBuyingProcess #AffordableHousing #MortgageAdvice #HousingIncentives #NewConstruction #DreamHome

 

 

12 Jul

Beware of Car Payment Trap

Mortgage Tips

Posted by: Elena Bogomaz

Hey, future homeowners!  Ever wondered how that flashy car in your driveway could impact your dream home purchase. Buckle up because I have a financial twist that might actually reshape your home-buying journey.

Reduced Borrowing Power: Higher monthly debts mean less money available for your mortgage. In fact, for every $100 in monthly debts, your buying power can drop by up to $10,000. That $700 monthly car payment could reduce your home-buying power by $70,000 to $100,000.

So, what’s the takeaway? Before you rush to the dealership, hit the brakes and think about the bigger picture. Your dream home might be within reach, but that car payment could be a major roadblock.

Remember, every financial decision today impacts your homeownership dreams tomorrow.

I would be happy to answer any mortgage related questions. Please email elenab.mortgages@gmail.com or DM (647-945-3681) for personalized advice! Let’s make your homeownership journey a winning one.

Click here to book a Mortgage Discussion with Elena.

#HomeBuyingTips #SmartFinancialMoves #DebtManagement #DreamHomeJourney