Inna Sidorkina

5 reasons to get a second opinion on your mortgage renewal. Given the large financial commitment of a mortgage, it's surprising that so many homeowners sleepwalk through the mortgage renewal process and don't look at all their options in the marketplace. Many accept whatever their lender offers or just have a short negotiation to shave a few points off. While it's tempting to choose what is easiest, it's so important to have a mortgage expert give you a second opinion and s...tart working for you as early as 9 months prior to renewal. Here's why: 1. With access to over 50 lenders and hundreds of mortgage options, I can make sure you are being offered the best rate and mortgage possible. 2. If you have enough equity in your home, you may be able to move high-interest debt to your lower-rate mortgage, improving cash flow and saving on interest. Renewal is the perfect time to do this. I can run the numbers to see if this strategy makes sense for you. 3.Having a good credit score is important if you want to switch your mortgage to a new lender for a better deal. You have control over your credit score, and may want to discuss credit improvement strategies. 4.Taking on new debt or an employment change prior to renewal can affect your ability to move your mortgage to another lender. We can discuss the potential impact of changes to your personal situation. 5.If you need to free up cash flow for specific needs or life situation, a 30-year amortization might be an option for you to consider (20% or more in equity required). At renewal, you can renegotiate everything pertaining to your mortgage with no penalties which means this is an important moment of opportunity. So as soon as you hear from your lender about your mortgage renewal, get in touch for an important second opinion! Home for the holidays Home has meant so much more this year: comfort, security, refuge, and for some, our workspace, and our classroom. Once again, we look forward to home being at the heart of our holiday celebrations, even as some of our traditions may change. In this extraordinary year, it's been a privilege to help make homeownership dreams come true and work with so many wonderful clients and partners.

5 reasons homeowners refinance their mortgage There has been a flurry of refinance activity this year given our rock-bottom interest rates, providing homeowners with access to today's low rates and the most cost-effective way to get needed funds. Refinancing means getting out of your current mortgage and replacing it with a new one. A minimum of 20% home equity is required to complete a refinance. There are several compelling reasons why homeowners refinance their mortgage:... To get a lower interest rate. Refinancing to get a lower rate makes sense if the savings you achieve with the lower rate are greater than the cost of getting out of your existing mortgage. A much-needed financial reset. Debt restructuring is one of the primary reasons homeowners refinance. If you have too much high-interest debt that is eating your monthly cash flow, you may be able to get the breathing room you need by rolling that debt into a new low-interest mortgage. You'll get one manageable monthly payment, immediate cash-flow relief, and long-term interest savings. It is also a great way to improve and protect your credit score. Renovate. Homeowners are renovating to adapt to their new covid lifestyles; whether it's to improve the quality of their lives, or for functionality like a new home office. At the same time, your renovations can increase the value of your home, a nice added benefit. Invest in the future. If you've found the perfect cottage or the retirement home of your dreams, refinancing may be the way to make that purchase happen if you're not quite ready to sell your primary residence. Or perhaps you are thinking rental property for a long-term wealth building opportunity and a source of retirement income. You need funds. You may be able to get the funds you need for major expenses, like a new business, tuition, or wedding, often a better strategy than loading it all onto high-interest credit cards or unsecured line of credit. Since breaking your current mortgage comes with a fee, I would be happy to complete a personalized cost/benefit analysis so you can determine whether refinancing makes sense. The fee to break your mortgage depends on several factors so it's best to get in touch to discuss. It is not expected that rates will go much lower so there may not be any benefit to waiting to see if you can get a better deal later. Get in touch at any time. It's my job to help you create financial security and enjoy life to the fullest!

Could an investment property be your pension The recent shock to the economy has had many Canadians thinking seriously about what their life might look like after their paycheques stop. Even if you have a workplace pension plan to look forward to, you may find it falls short of the income you'd like to live on. Is it possible to take your pension into your own hands and create sustainable long-term income An investment property has the potential to provide a monthly income... and grow your wealth over time. Property values have a good track record of appreciation, and often outperform stocks and bonds over the long term. And this is a wealth-building strategy that is within reach of ordinary Canadians: An investment property can supplement income now and boost pension income later: potentially giving more freedom, sooner. Working Canadians who have found their dream retirement property have decided to buy now and lock in the price, renting for income until it's time to use it themselves. Some first-time buyers want to skip a "starter condo" and go directly to a single-family home in a neighbourhood they love by using income from a rental suite to help them pay the mortgage. Or when their first home becomes too small, they move to a bigger home but keep the first as a rental property. Parents often realize that the monthly cost of housing for their college or university student might as well support their own mortgage and not someone else's while also gaining a sound investment. So, what kind of downpayment will you need If you will be living in one of the units, then the property is considered "owner occupied". If you're not living there yourself, you'll need a larger downpayment: Owner occupied: 5% down for 1-2 units on the first $500,000 and 10% on any amount over $500,000; 10% down for 3-4 units Non-owner occupied: 20% downpayment is required, and the funds must come from your own savings (you cannot use gifted funds) Another option if you already have equity in your primary residence is to refinance your home to generate the cash for the investment property. Ideally you want it to be cash-flow positive right from the start, so be sure to think about closing costs, needed repairs, and whether you can cover the costs for this and your own property. If you are thinking about an investment property, get in touch to have all your questions answered. I can help you determine your downpayment options and run the financial calculations that you will want to see for cash flow and capital appreciation. Be safe. Be well. Be happy.

No need to panic over new mortgage rules No one has a crystal ball to see what the next few months or years will bring, but it’s likely that some Canadians will have trouble with their debt in the wake of COVID. With that possibility in mind, the Canada Mortgage and Housing Corporation (CMHC) recently announced that it is tightening the rules for Canadian homebuyers looking for insured mortgages. Homebuyers with less than 20% downpayment require mortgage default insuran...ce: an important protection for Canadian lenders. Alternative options available This is a great time to work with a mortgage broker! I work with dozens of lenders and private mortgage insurers Genworth Canada and Canada Guaranty that are an alternative to CMHC. Neither have announced new underwriting guidelines, which means I expect to be guiding many new homebuyers through these alternate insurance channels. This is great news and why there is no need to panic. Summary of the new CMHC rules (effective July 1 1. Reduced buying power. Previously, CMHC allowed 44% of total income to service all your debt and up to 39% of total monthly income to service housing payments (principal, interest, taxes, heat, condo fees). They have now tightened this back to 42% of total income can now go to service all your debt, and 35% of total monthly income to service housing costs. This reduces a homebuyer’s purchasing power by anywhere from 9 to 11%. As an example, someone qualifying for a $500,000 home now, will see that decrease to approximately $445,000. 2. Higher minimum credit score. At least one applicant’s credit score must now be a minimum of 680, up from 600. Find out your own score free through Equifax or TransUnion. 3. Downpayment funds can no longer include most borrowed downpayment sources. Very few buyers used this option so this will have a minimal impact. Get in touch at any time Having trouble keeping up with all the changes lately? That’s why I’m here. My only focus is mortgages and I am always up to date on the changing mortgage marketplace. If you or someone you know is looking to buy, it’s important to get in touch early so we can put a solid plan in place. Or, if you have concerns about your current mortgage strategy, let’s talk, especially if you want to find out if you can renegotiate your mortgage to take advantage of today’s low rates, or refinance to consolidate troubling high-interest debt.

Six questions answered As the longest spring in memory finally gives way to summer, it's nice to see people safely enjoy the sunny weather. I hope that you and yours are in good health. There continues to be uncertainty about the shifting mortgage market. Here are the most common questions: ... Should I break my fixed mortgage to get a lower rate If you're only partway through your term, you'll need to pay a penalty to break your mortgage. Locking in a low rate now can be a strategy to provide some reassurance in an uncertain future, and you may be able to save considerable money over the long term and not be out of pocket to complete the transaction. If this is a question that's on your mind, I can provide you with a detailed cost/benefit analysis. Can I refinance my mortgage to deal with high credit card balances If you have more than 20% equity in your home, you may have the option of refinancing your mortgage and roll all your debts into a new, low-interest mortgage. You can get immediate cash-flow relief and one manageable monthly payment. Your lender will need to re-qualify you, so if you're dealing with reduced income, that could impact your ability to qualify. What about my mortgage renewal A lost job or drop in income will be a factor if you want to move to a new lender for a lower rate. You can renew with your current lender at their best offer, or use an open mortgage for a few months, with a strategy of moving to a lower-rate closed mortgage without penalty as soon as your finances stabilize. Regardless of your situation, let's talk soon so we can avoid any last-minute decisions. Should I lock in my variable-rate mortgage If you have a deeply discounted variable-rate mortgage, you are in a very good position given the recent drops in prime rate. Variable mortgages can be converted to fixed without penalty, providing long-term peace of mind knowing you have security for the next five years. While the rate environment remains in flux, it might be best to enjoy your lower rate for now and re-evaluate in 6 to 12 months. Should I take the mortgage payment deferral that is available The immediate relief is compelling. However, your lender will add the interest accrued during the skipped period to your outstanding balance, increasing your mortgage amount. Alternatively, you may be able to borrow from a Line of Credit, making interest-only payments until the financial stress begins to ease. Other options include extending your amortization or moving from accelerated to monthly payments. Fixed or variable mortgage rate The answer again depends on you: your tolerance for risk, where rates are expected to go, and personal preference. With the rate environment changing all the time, what may be the right decision for you this week, could be different next month. Let's have a conversation so I can get a clear picture of your plans and current situation. Have a question? Get in touch at any time. Be safe. Be well. Be happy.