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    The Importance of keeping in touch

    Last updated 7 years ago

    It's amazing that mortgage consumers will do seemingly anything to chase down the best rate for their first mortgage, and then completely lose that cost-cutting drive when it comes time to renew. We all know this happens, but the numbers, which were released by CMHC earlier this week, are truly shocking. Almost 90% of mortgage renewers and 70% of refinancers decided to stick with their lender.

    Now, we know these mortgage consumers have the desire to save money in them after all, weren't they the same people calling our offices for the best rates just five years ago? So why are they willing to pay significantly more by renewing with their banks sometimes as much as almost 0.5%?

    Maybe they're unaware of the fact that just because a bank offered the best rate five years ago, doesn't necessarily mean they're offering the best one today. Maybe their renewal date crept up on them, and they didn't have the time to devote as much time to rate shopping as they did before. Or maybe just maybe they've merely become complacent. Now that they're onto their second term, the thrill of the chase isn't nearly as strong.

    Regardless of the reason, they likely still have that cost-saving desire in them, especially if it's presented to them in the right way. Sometimes, 0.5% doesn't look like that much until you compare the difference in monthly payments. This is why it's so important to have a timely and effective process for following up.

    Axiom offers a foolproof and effective Smart Touch program, which, in addition to following up with clients on a regular basis, also sends a client renewal notice four months in advance, as well as an agent reminder. If you opt to take matters into your own hands and follow up yourself, make sure you clearly present the arguments for looking around elsewhere and the benefits of using your services to do so.

    For more information, contact Nelson Sousa at 877-817-9984.

    Fixed vs. Adjustable Rate Mortgages

    Last updated 7 years ago

    If you’ve begun the process of purchasing your first home, then you’re likely familiar with the concept of mortgages.  However, it takes a bit of research to gain some clarity on the intricacies of the loaning process.  With the following overview, you’ll learn about the differences between the two types of mortgages available to you (fixed rate and adjustable) and how they differ.  Use this as a launching pad for your own independent research to help determine which type is best for you.

    Interest Rate Comparisons

    Fixed rate and adjustable rate mortgages differ primarily in the way monthly payments are structured.

    • Fixed

    With a fixed-rate mortgage, homeowners are locked into a monthly interest rate for the full term of the loan—that is, unless you miss a payment or choose to refinance.

    • Adjustable

    Adjustable rate mortgages, on the other hand, can change each and every month, and are priced in accordance with prime interest rate, which is set by the Bank of Canada.

    Pros and Cons

    Depending on your financial situation, both mortgage types can have advantages and disadvantages. For example, those with fix rate mortgages will remain unaffected by negative fluctuations of the interest rate index and can make long-term budgeting plans based on the regularity of their payments. Those with adjustable rate mortgages, however, can capitalize on lower monthly interest rates without paying to refinance their home.  Furthermore, adjustable rate mortgages tend to feature reduced rates during the introductory period, making them ideal for short-term homeownership.

    For more information about the differences between fixed rate and adjustable rate mortgages, contact Axiom Mortgage Solutions.  Our experts can answer any questions you have regarding this or any other home loan related topic.

    Disclaimer:

    The materials available at this website are for informational purposes only and not for the purpose of providing financial advice. You should contact a professional to obtain advice with respect to any particular financial issue or problem. Use and access to this website or any of the links contained within the site do not create any financing or lending relationships. The opinions expressed at or through this site are the opinions of the individual author and may not reflect the opinions of any bank or lending institute, or individuals therein.

    What is Mortgage Refinancing

    Last updated 7 years ago

    Refinancing a house is a complicated process that, without proper preparation, can cost a bundle.

    For those who are unclear about what refinancing entails, watch this video clip.  You’ll hear about how a mortgage refinancing differs from a traditional purchase loan and reasons why homeowners might pursue refinancing, including home renovations, taking out a second mortgage, and more.

    To learn more about mortgage refinancing, call the experts at Axiom Mortgage Solutions

    IF YOU HAVE A MORTGAGE, THEN YOU MUST READ THE FOLLOWING

    Last updated 7 years ago

    Why are more and more consumers saying NO to bank’s mortgage insurance????????

    Quite simply, individual or joint 10/20 year term insurance is a fundamentally better option. Why?

    • If you intend to pay off your mortgage quickly, your bank insurance premium will be relatively high for a rapidly reducing amount of insurance. Individual insurance policies maintain the same coverage for a level premium.
    • If you renew your mortgage at a different institution to take advantage of a lower rate, you can’t take your mortgage insurance with you. You need to re-qualify, at an older more expensive rate.
    • You own the insurance plan and retain control of it, not the bank!
    • Your premium and coverage will not change for 10/20 years. The bank’s premium will change when you renew your mortgage, usually every 1 - 5 years.
    • If you have other insurance needs you can combine all the amounts into one larger policy, which is more cost effective.
    • Individual term insurance can be converted to permanent insurance at the amount (or less) that you initially qualified for, even if your health situation worsens over the years. Mortgage insurance is not convertible and therefore lessens your options when you get older.

    COMPARE THE DIFFERENCE

    The above information was written by one of our financial planning partners. For more information about mortgages or home refinances, contact Nelson Sousa.

    Tips for Choosing the Right Mortgage Duration

    Last updated 7 years ago

    Selecting the duration of a mortgage loan can be a complicated undertaking:  There are many options to choose from, and the decision requires a great deal of organization and foresight.  For those in need of advice, read through the following for some helpful information on how to choose the length of your mortgage.

    How Long Do You Plan to Stay?

    For those who are planning to buy their dream house, or at the very least a home they plan on spending a long time in, longer, fixed-rate mortgages may be your best bet.  With this type of loan, you are locked in to one interest rate and, as such, you are not subject to increased payments when the market fluctuates. Furthermore, the level of stability that a fixed rate mortgage provides will allow you to plan and budget for the future. If, on the other hand, you plan on buying a home that does not have much longevity, a short-term, adjustable-rate mortgage might be best for you.  With this type of mortgage, you are more likely to save money via the lower “introductory” rates typical of ARMs.

    How Much Can You Afford Per Month?

    Short-term rates will have lower rates than longer terms. However, shorter terms will only provide you with a shorter period of security as opposed to something like a 5 year fixed rate which locks away a marginally higher rate over a longer period of time to protect against small interest rate fluctuations. See below for some of the lowest rates in the market, making sure that your next mortgage payment is well within your means. The table shows a comparison between today’s Market Rate and the rate offered by Nelson Sousa:

    For more advice on how to choose the best mortgage duration for you, call Axiom Mortgage Solutions.  We can help guide you through the selection process and help you determine which loans you qualify for.

    Disclaimer:

    The materials available at this website are for informational purposes only and not for the purpose of providing financial advice. You should contact a professional to obtain advice with respect to any particular financial issue or problem. Use and access to this website or any of the links contained within the site do not create any financing or lending relationships. The opinions expressed at or through this site are the opinions of the individual author and may not reflect the opinions of any bank or lending institute, or individuals therein.

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