Residential > Mortgage Options:

Debt Consolidation:

When we look at consolidation of debt also referred to as refinancing it is quite a common occurrence in today�s world. It�s not because more people are in debt, it�s simply because it makes more sense.

Pulling equity out of your home especially at today�s great interest rates can save you as much as 17% a month in interest charges!

The valuable equity that you may already have in your home can be used to consolidate high interest costs associated with credit cards, lines of credit and possibly even car loans.

In the past, for a client to consolidate loan debts and credit cards, a second mortgage was the only option. Saying that second mortgages can run as high as high as 19%.

Today, you have the ability to top up your existing mortgage to incorporate those debts and remove the debt load without having to take out a second mortgage. Why would you choose the expensive avenue over refinancing at today�s rates that are running at some of the lowest rates we have experienced for many years.

Before Debt Consolidation
Existing Mortgage
Mortgage Balance   $130,000
Interest Rate   7.9%
Term 5 Year
Monthly Payments
Credit Cards   ($8000) $250.00
Other Debt   ($3000) $150.00
Mortgage   $1069.09
Total Payments   $1,469.09

After Debt Consolidation
Northland Mortgage
Mortgage Balance   $141,000
Interest Rate   5.88%
Term 5 Year
New Monthly Payments
Credit Cards   ($0) $0.00
Debt ($0)   $0.00
Northland Mortgage   $988.42
Total Savings   $480.67

As this example shows, we were able to refinance the existing mortgage before the term was up and get the money they needed to pay off all debts and lower their monthly mortgage payments by
$ 80.67. So they saved a total of $480.67 per month and have been able to put that extra money into an investment account for their retirement.

Your next step ...

In order to take advantage of this program you must be a home owner and have a least 10% equity or more in your home. If you have any concerns or questions please include them in the application/comments section or email directly.

The best way to determine whether debt consolidation is the right avenue for you is by calculating what your monthly debt payments total. Include all loans, lines of credit, credit cards and your mortgage. Take that amount and divide it by your gross total monthly income. If the number is higher than 0.50 then don�t leave this site. If you are below 0.50 we can still help you save money.

The secret is to determine at an early stage whether debt consolidation is the best route for you.

Mortgage Renewals:

When a term is coming to a close, most banks will send out a mortgage renewal notice in the mail usually one to two months prior to the term expiration. At this time the banks tend to take advantage of our busy schedules to assume that you will sign on with them for another term. The worst part is that the banks only tend to offer you their posted rate with very little or no discount. Almost 60 percent of the public sign this renewal without researching what the competition has to offer. We, at Northland, are here to offer you the resources and expertise to take advantage of the competitive mortgage market.

Northland Mortgages deals with over 40 lending institutions to assist you in finding the best possible mortgage to fit your needs. We don�t work with one bank or one institution; we are an independent company with a sole purpose of assisting you to find the best mortgage rate in Canada.

Traditional �big bank� policy is at best to discount the posted rate by 0.10 to 0.75 percent. Of course in order to get a fully discounted rate the banks would like to see your entire personal portfolio. Why should your net worth have anything to do with the discount you receive? When dealing with Northland Mortgage, your discount is based on normal qualifying procedures such as credit worthiness and job stability, not how much money you have or prepared to move over to that bank or institution.

The biggest difference in using Northland Mortgage is our intent to assist you in finding the best possible fit for you at the best possible rate. Our team will assist you as well in picking the right legal representation, residential/commercial appraisers, home inspectors and insurance brokers for home and life.

Top reasons to transfer your mortgage from one lender to another:
  -  to get a better rate
  -  to get a better mortgage product
  -  to get a better terms and conditions
  -  to get better products to match their fianancial needs

The common myth is that transferring your mortgage is hard and time consuming. In fact, it is one of the easiest mortgage transactions. A quick call or application will easily determine if transferring your mortgage is right for you.

Below are typical questions and concerns you may encounter when considering a mortgage transfer:

Will I pay a penalty if I transfer my mortgage?

You will not be a subject to any fees or payout penalties if you are switching at mortgage renewal time. If your mortgage is still in the term there may be a penalty to switch, however, we have found that paying the penalty in many cases to charge institutions to either get a lower rate or a better mortgage product has saved thousands for our clients.

What happens when I transfer my mortgage?

Once you are qualified, your current mortgage balance and the remaining amortization period are transferred to your new lender with your new interest rate in place.

When I do a mortgage transfer, can I refinance at the same time?

Yes. Without incurring fees, some lenders will permit you to refinance to the original mortgage amount while others have limits of between $1,000 and $4,000. You also have the option of doing a transfer with a total refinance but you will be subject to fees similar to that incurred with registering a new mortgage.

How long before my mortgage renewal comes up should I start the mortgage transfer process?

You should think about switching your mortgage between 90 to 120 days before your mortgage renewal. This gives ample time to complete the process.

We�re to help. Simply link below to our online application or best rates below to get going. Let us take care of the rest.

First Time Mortgage:

Buying a first home is a very exciting time. If you�ve never had a mortgage before, we can help. Our team of mortgage professionals and specialists are more than happy to assist in trying to answer any questions you may have. Our commitment is to find you the best fit of mortgage Canada has to offer.

To avoid adding unwanted stress in obtaining your very first mortgage, read the following frequently asked questions. This useful information will not only answer some questions you may have about mortgage professionals, brokers and specialists. but may also make your first home purchase a money � saving experience.

What is required to obtain a first mortgage

  -  Full � time employment or stable income
  -  Proof of income
  -  Good credit rating
  -  Verifiable down � payment
  -  Filling out a Mortgage Pre-Approval Application

What can I use for a down payment?

  -  Registered Retirement Savings Plan
  -  Gift from immediate family
  -  Accumulated savings
  -  Sale of existing home
  -  Sweat equity

What costs are involved in obtaining a mortgage?

Costs incurred are:
  -   Legal costs
  -   Insurance on the property and mortgage applicant
  -   In some cases an appraisal is requested

How long does it take to complete a mortgage transaction?

If all information requested by the lender (i.e. income verification, down payment verification and property details) is given to the mortgage specialist in a timely manner than the transaction can be completed in as little as 2 weeks.

Can I get approved before I find the home I want to purchase?

Yes. Our lenders offer preapprovals from 60 days to 120 days. When it comes to new construction many lenders will extend that preapproval time to fit the construction schedule. This will allow you to hold a great interest rate while you shop for or build a new home.

How much can I qualify for?

Qualifying guidelines vary depending on the lenders criteria and products available. To find out what you can qualify for, please submit your application for a preapproval.

What is CMHC?

Canada Mortgage and Housing Corporation is a federally owned and operated Institution that evaluates the client and property to allow the borrower to purchase

a home with a lower down payment requirement. This corporation insures the mortgage on behalf of the bank or financial institution, through a premium added to your mortgage. This way the institution are obliged to provide a mortgage for those with less than 20% down payment.

Who does Northland Mortgage work for?

We only work for you. We are not affiliated with any one single bank or lender; thus allowing us to shop around d for the best mortgage rates available.

What is the purpose of a mortgage broker?

We specialize in mortgages and only deal with lenders who can compete against the local branches for better rates, terms and service. Our only job is to find our clients the absolute fit in a mortgage product that will suit their needs.

How can a mortgage broker get a better rate than my own bank?

The mortgage lenders that we utilize do not have local branches in each city, town or rural community, they have no large overhead and are in the business of lending money for mortgages only. This, combined with the large volumes, allows them to discount the rates far better than your own bank can provide.

Are there any extra costs or hidden fees when I use a mortgage broker?

There are absolutely no hidden fees, Any costs related to a Northland Mortgage are fully disclosed. Any costs incurred would be the same as if you went through a bank and in most cases LESS with Northland. We are here to earn your business today and in the future!

What if I have poor credit or have been discharged from bankruptcy within the last 3 years? Can I apply for a mortgage?

Yes you can! Most conventional banking institutions put restrictions on who they lend money to for a mortgage, but Northland has the resources to shop for financing regardless of any credit situation.

For Further Information:
Any one of our representatives would be more than happy to assist you or answer any questions you may have about purchasing your first home or your next mortgage. Contact us anytime and we will reply to your inquiry by telephone or email as promptly as possible. You may be required to leave a message. Please note that we usually return calls within 3 hours or at your suggested time of convenience.

Mortgage interest rates are subject to change without notice at any time. E.&O.E., O.A.C.
Our mortgages are only available to Canadian residents or foreigners purchasing property located in Canada.
Although every attempt is made to ensure the accuracy of our website, the above mortgage information should only be used as a guideline. If you have questions or comments about our website, security practices or policies, please call our technical support line at 1.866.724.5969. For any mortgage related questions or to speak to one of our mortgage specialists, please call (705) 585.0981 or (705) 377.5900

Mortgages For The Self-Employed:

Statistics show that nearly 20% of all income earners in Canada are now self-employed (business-for-self). This is a large and growing trend and demographic, which brings up the question, �Why is it so difficult to get a mortgage through a chartered bank if you�re self-employed?� That�s because many business-for-self owners minus expenses in lieu of extra income, something most banks will not recognize.

At Northland Mortgage we understand your needs being business owners ourselves. Our lenders look at your credit history rather than business financials and personal tax notice of assessments. This is something most mortgage lenders won�t do.

With Northland Mortgage and our preferred lenders, you will find a product that is right for you.

Here are just some of the great products available:

The Low Documentation (Low Doc) Mortgage

No Income Mortgage

Zero Down Payment

Using Your RRSP � � Home Buyers Plan�:

The Federal Home Buyers Plan allows first time home buyers to withdraw up to $20,000 from their RRSP for the purpose of buying or building a qualifying home. The primary benefits are that the RRSP issuer will not withhold tax on the amount nor will you have to claim the amount as income. The amount must be repaid to the RRSP within 15 years with a minimum annual payment of 1/15th of the amount withdrawn. If repayment is not made for a given year the minimum repayment is included as taxable income for that year.

Conditions:

You have to make your withdrawal request in the same year you wish to participate in the Home Buyers Plan
You cannot have previously participated in the plan in previous years
You have to be a resident of Canada
You have to enter into a written agreement to buy or build a qualifying home
You can withdraw a total of $20,000. Multiple withdrawals are not allowed. Each of you and your Spouse can participate in the Plan and withdraw from your own RRSP�s to a maximum of $20,000
You have to be considered a first time home buyer.

A qualifying home is a housing unit in Canada. Existing homes and under construction are both qualifying homes and can be either:

Single Detached Family Homes
Semi Detached
Town Home
Condominium Unit
Mobile Home
Apartment in a duplex, triplex, Four-plex or apartment building
A share in a Cooperative Housing Cooperation, provided the share entitles you to possess, and gives us an equity stake in, a housing unit.

Should You Take Money Out of Your RRSP For A Home Purchase?

Withdrawing $20,000 from your RRSP under the "Home Buyers Plan" can be viewed as a loan from your RRSP to yourself. Some call this a zero interest loan but of course the actual cost of the loan is exactly what the funds would have earned if they had remained in your RRSP. You will forego these earning if you take the funds out and use them for a down payment. On the other hand if you don't withdraw these funds you will be forced to borrow the required down payment.

Lets assume you have $20,000 in your RRSP at an average annual rate of return over the next 15 years of, say 8%. In 15 years your $20,000 will have grown to $63,443, an increase of $43,443. As such if you withdraw these funds under The Home Buyers Plan, while you won't suffer taxes, you will forego these earnings.

Most financial advisors will counsel you to borrow to invest in your RRSP because the "overall" rate of return from your RRSP is greater than the cost of borrowing the money. The cost of borrowing $20,000 in a catch up loan over 15 years is usually in the neighborhood of Prime, plus or minus a percentage point, depending on the risk of the RRSP investment. Assume a cost of 7.5% over the 15 year amortization of the loan. The interest paid to borrow $20,000 would be $13,372. If we also assume a 35% tax rate, you would have to earn $20,572 of gross income in order to net out these interest costs.

We can now compare the before tax cost of borrowing - around $20,572 - with the before tax return this $20,000 would earn in your RRSP - around $43,443. Clearly it makes sense to borrow to invest in your RRSP. Conversely, it should also make sense to leave the money in your RRSP and borrow your down payment, one being the same as the other.

In reality, no mortgage lender will finance 100% of your purchase price. In addition, your lender will qualify you for a larger mortgage, based on gross income, if your debts are lower and don't include a large personal loan for the down payment. A personal loan or second mortgage is a debt that squeezes the maximum mortgage amount you will qualify for if it puts you above the lenders target debt service ratios.

In addition withdrawal under the Home Buyers Plan may be more cost effective than borrowing if this borrowing cost also includes a CMHC fee. This fee can dramatically push up your effective interest rate. If you're just shy of a conventional down payment of 25% it may be wise to withdraw the remainder from your RRSP to avoid paying mortgage insurance fees.

The best approach is to withdraw from your RRSP under the Home Buyers Plan, get all the financing you qualify for, and then once the mortgage is funded borrow to replenish the RRSP if you can afford the payments. Remember you'll also have to pay back your RRSP 1/15th each year.

Tips

Pay back the minimum 1/15th required each year if you borrow through the home buyers plan. Repayments do not trigger another tax savings. All savings above the minimum 1/15th repayment should be designated 'contributions ', rather than repayments, and invested into your RRSP. You'll receive the tax savings on these amounts each year.

Always invest as much as you can in your RRSP, even if you have to borrow, but be sure you can afford to carry the loan.

Withdraw the money from your RRSP only if you have no other source of non RRSP savings.

Saving Your Down Payment Using your RRSP

To accumulate $20,000 in a non RRSP savings plan, assuming an 8% return and a marginal tax rate of 35%, you would have to invest $3,605 each year for the next five years. This would mean earning $5,546 in gross income each year in order to net out this $3,600 in after tax savings.

Rather than spending this $5,546 in gross income each year on a non RRSP investment, you could invest this same amount into your RRSP. With yearly RRSP contributions of $5,546, you will accumulate about $32,536 in five years. You will also receive tax savings each year in the amount of $1,941. Another way to look at it is that you could accumulate the required $20,000 down payment in about 3 1/3 years by choosing the RRSP savings approach. IT ALWAYS MAKES SENSE to save through an RRSP, whether the savings will be for a house or retirement.

Other Plans

Tax-Free RRSP Withdrawals for Lifelong Learning

Canadians will be eligible to make tax-free withdrawals from their RRSPs to support lifelong learning. Individuals will be able to withdraw tax free up to $10,000 per year from their RRSPs, with a maximum of $20,000 over a four-year period. To preserve retirement incomes, these withdrawals will be repayable over 10 years.

More tips:

What if I want to sell my home before I have paid off the RRSP loan?

You do not have to repay the remaining balance if you sell your home before your scheduled payments are complete. And you are not required to continue to own the home until the amount borrowed is repaid.

In some situations, outstanding repayment installments have to be reported as income by the borrower:

When you leave the country. If a taxpayer ceases to be a resident of Canada, "the balance of withdrawals made under the plan and not yet repaid must be repaid within 60 days of ceasing residency, or must be included in the individual's income for that year."

If you die. When an individual dies with an outstanding Home Buyer's Plan repayment balance, "the outstanding amount must be included in the deceased's income for the year. There is an election that may be made in certain circumstances to allow a spouse of the deceased to effectively take over the deceased's obligations with respect to repayment installments."

When your RRSP matures. If you have an outstanding Home Buyer's Plan repayment balance at the end of the year in which you turn 69 - the deadline for collapsing an RRSP - this outstanding amount must be repaid before year end or be reported as income on your tax return.

Recreation Properties

You've reached a point in your life where you want a recreational property and you can afford the payments. Until now, mortgages for vacation properties just weren't easily available in Canada. Now, for the first time in Canada, fast and easy recreational property mortgages with as little as 10% down are available. Call today and see how easy it is - the intelligent way to get a recreational mortgage.

Purchase Plus Improvements

Does the new home you are purchasing require some upgrades?

This program is designed for people who wish to purchase a home that may require some immediate upgrades . . . a new electrical service, a new roof, central air, a new furnace, new siding, eaves, soffits, fascia, doors, windows, a new kitchen, carpeting . . . or any other renovation that would increase the value of the home. The way it works is like this - Let''s assume that you are a first time buyer and have 5% down payment. Before the mortgage financing is arranged, written quotes are obtained from licensed contractors for the repairs and or the improvements to be done to the home. When the application for mortgage financing is made, the request is made for 95% of the purchase price PLUS 95% of the cost to complete the improvements. Note: The lender will normally instruct your solicitor to holdback on closing the improvement portion of the mortgage until the work has been completed, normally within 30 to 60 days of closing. Once the work has been completed, an appraisor will confirm completion of the work, and the lender will instruct the solicitor to advance the balance of the funds so that the contractor can be paid.

What does this mean? Here is an example;

Purchase price = $100,000
Mortgage Amount (95% with 5% down payment) = $95,000
Contractual estimate of improvements: $10,000 (X95%) = $9,500
Total mortgage = $110,000X95%=$104,500 plus CMHC premium of 2.75%=$107,373.75

Therefore, an application is made for a mortgage in the amount of $104,500, which represents 95% of the purchase price plus 95% of the improvements. On closing this is what happens. The mortgage advanced to complete the purchase is $95,000 plus the original 5% from the purchaser''s down payment ($5,000) which represents sufficient funds to complete the purchase of $100,000.
After closing the contractor completes the improvements (normally within 30 to 60 days after the closing) the lender advances the hold-back of $9,500, the purchaser pays the additional 5% of the cost of the improvements ($500) and the $10,000 owed to the contractor can be paid as per the original quote for the work.

Everyone is a winner!

The purchaser is happy because they got $10,000 of improvements done to the home with a cash outlay of only $500 (the balance was financed with their mortgage). The lender is happy because they now have a mortgage on an improved home.

MORTGAGE INSURANCE:

The advantages and benefits of insuring your mortgage.

Your home is probably one of the largest single investments you will make in your lifetime. If you are like most Canadian homeowners, paying a mortgage will be a regular household expense that you will have to budget for; so taking extra steps to insure its value through loss by fire, for example will probably be one of your first concerns. But what happens to the family's home when you are no longer there to make the mortgage payments or pay the insurance premiums? It's a problem that most families do not consider until it's too late, and the consequences can be tragic.

Life insuring your mortgage should be your first priority, since the possibility of death is more than a thousand times greater than fire. Banks or trust companies have plans available called "Lenders Group Mortgage Insurance ", but your own personal policy can cover all your needs with a plan known as Individual Mortgage Insurance.

FAQ

Why do I need Mortgage Insurance Protection?

Your mortgage may be a new financial obligation you did not have when you acquired your existing life insurance, so you may not have enough benefit to pay off the mortgage in a case of disability, critical illness or death.

In addition, work disability protection typically covers 50-70% or less of your gross income. Will half of your salary cover your annual bills?

Do I need Mortgage Insurance coverage if I already have coverage from my employer?

Work benefits are great, but they are controlled by your employer and end when you leave your job, regardless of the reason. Do you know how much protection your employer provides? Would it pay-off your family�s debt and home mortgage if you died? If not, Northwood Mortgage Life is your answer.

Couldn�t my estate just sell my assets if I die?

Yes, your estate could liquidate your assets, but how much are they worth? If your family sold everything you own would they make that much? For most of us, our estates are not that valuable and few people have those dollars in the bank. Mortgage Life Insurance and Disability Insurance Policies offer living benefits to make your mortgage payment in case of disability and critical illness. In addition, it is possible to get all your money back at the end of the policy.

Is a medical exam required to apply for coverage?

There are many policies out there that do not require a medical exam. Based on the answers you provide regarding the policy�s health questions, the carriers may only require additional information from your doctor.

If I�m turned down, can my spouse still get coverage?

Yes they can. Many policies have insurability and underwriting guidelines that are broad and liberal. However, some applicants may be declined. If that happens, you and your spouse may apply for separate policies

Does the Mortgage Insurance premium increase as the mortgagor ages?

With many of our programs, the premiums stay the same as you get older.

How do Mortgage Insurance premiums get paid?

Northland Mortgage offers many payment options and our agents will explain them to you in detail. They may include credit card, electronic deposits or other suitable methods

When does Mortgage Insurance coverage become effective?

With Mortgage Insurance in most cases, right away, but your Northland Mortgage always makes sure you understand any special conditions that apply.

Conditional Receipt: A receipt given for premium payment accompanying an application for insurance. If the application is approved as applied for, the coverage is effective on the later of the date of prepayment or the date on which the last of the underwriting requirements, such as medical examination, has been received by the insurance company. A conditional receipt for premiums paid upon application may protect the proposed insured from changes in health occurring after the application and funds have been submitted to the insurance company.

When does Mortgage disability insurance coverage terminate?

Mortgage Insurance coverage remains in force until the policy term ends or until you reach age 65. (If your spouse is also covered and is younger than 65, your spouse coverage remains in effect until he/she turns 65.) %p All Mortgage Insurance coverage stops if you discontinue premium payments or if you request termination of your policy.

Who is the beneficiary of my Mortgage

Mortgage Insurance proceeds are paid to the beneficiary you designate. This allows your family to pay the mortgage and other bills as needed.