As The Mortgage Associate at TMG Saskatoon, it is my job to ensure you are in the best possible financial situation. One thing I have been doing with a lot of clients lately is doing an early renewal into a lower variable rate than their current fixed rate. By putting the clients penalty into the mortgage and keeping the payments the same, we are able to get the mortgage paid down almost two years quicker without increasing payments to the consumer. An example is below. Give The Mortgage Associate at TMG Saskatoon a call today and let me show you how to reduce your interest rate and amortization today!
Worried about poor credit or an unstable income? You may qualify for a mortgage with a B Lender.
Many people don’t know this but there are three different lending tiers in Canada. These tiers are: A Lenders, B Lenders, and Private Lenders. There are several factors that come into play for which tier you could qualify for. Ideally, everyone could qualify with an A Lender but that is not the case. Thankfully, there are other options for people who may be in a difficult financial situation.
In 2017, some Canadians have extremely high debt loads. People are facing problems with credit, income, or bankruptcy. For some clients, trying to get mortgage approval through a B Lender is there best option. With a B Lender, you still need a credit score but clients can qualify even with poor credit or an unstable income.
B Lending institutions typically require a higher down payment, have higher mortgage rates, and there are more fees. Where an A Lender requires a minimum of 5% down on a purchase or refinance, a B Lender will usually require 20% to qualify. On the plus side, B Lenders have no insurance premiums because they are self-insured.
When a client is approved for a mortgage with a B Lender, it is usually a 1-3-year fixed term. This is because it is meant to be short-term. It gives the client a chance to rebuild their credit and financial situation in the hopes that they can be approved with an A Lender in the future.
When comparing a B side mortgage with a rate around 3.50%-5.00% it is often cheaper than the revolving debt payments on large lines of credit or credit cards closer to the 19.99%.
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Scott Trainor is an award winning mortgage associate. He loves sports and enjoys educating and helping broker Saskatoon on the best mortgage deals.