Before you begin searching for a home, it’s always helpful to think about your needs, both now and in the future.

The following are some things to consider when you’re deciding which type of home to buy:

• Location. Do you want to live in a city, town or in the countryside? How long will your work commute be? Where will your children attend school and how will they get there? Are you close to amenities?

• Size Requirements. Do you need several bedrooms, more than one bathroom, space for a home office, a two-car garage?

• Special Features. Do you want air conditioning, storage or hobby space, a fireplace, a swimming pool? Do you want special features to save energy, enhance indoor air quality and reduce environmental impact? Do you have family members with special needs?

• Lifestyles and Stages. Do you have or plan to have children? Do you have teenagers who will be moving away soon? Are you close to retirement? Will you need a home that can accommodate different stages of life?

New Versus Resale Homes

When thinking about your ideal home, the first thing you should consider is whether you want a previously owned home (often called a resale) or a new home. Here are some characteristics that may help you decide:

New Home

• Modern Design. A new home has an up-to-date design that takes into account the latest trends, materials and features.

• Personalized Choices. You may be able to upgrade or choose certain items such as siding, flooring, cabinets, plumbing and electrical fixtures.

• Up-to-Date With the Latest Codes/Standards. The latest building codes, electrical and energy-efficiency standards will be applied.

• Maintenance Costs. Maintenance costs will be lower because everything is new and many items are covered by a warranty. You should still set aside money every year for future maintenance costs.

• Builder Warranty. This is a warranty that may be provided by the builder of the home. Be sure to check all the conditions of the warranty. A homebuilder’s warranty can be important if a major system such as plumbing or heating breaks down.

• Neighbourhood Amenities. Schools, shopping malls and other services in the neighbourhood may not be complete for years.

• Extra Costs. You may have to pay extra if you want to add a fireplace, plant trees and sod or pave your driveway. Make sure you know exactly what’s included in the price of your home.

Resale Home

• You Can See What You Are Buying. Easy access to services. Probably established in a neighbourhood with schools, shopping malls and other services.

• Landscaping is Usually Complete and Fencing Already Installed. Previously owned homes may have extras like fireplaces, finished basements or swimming pools.

• No GST. You don’t have to pay the GST unless the house has been substantially renovated, and then the taxes are applied as if it were a new house.

• Possible Redecorating and Renovations. You may need to redecorate, renovate or do major repairs such as replacing the roof, windows and doors.

Deciding Which Type of Home to Buy

There are many types of homes to choose from and each has its advantages and disadvantages. Think about your needs before making a decision, and don’t forget to look beyond the interior walls. The environment surrounding your home can be as important as the environment within.

The following are some different types of homes from which to choose:

Single-Family Detached – A home containing one dwelling unit that stands alone and sits on its own lot, thereby offering a greater degree of privacy.

Semi-Detached – A single-family home that is joined to another one by a common wall. It can offer many of the advantages of a single-family detached home and is usually less expensive to buy and maintain.

Row House or Townhouse – Many similar single-family homes, side-by-side, separated by common walls. They can be freehold, condominiums or rental units. They offer less privacy than a single-family detached home but still provide a separate outdoor space. These homes can cost less to buy and maintain – but they can also be large, luxury units.

Link or Carriage Home – Houses joined by garages or carports, which provide access to the front and back yards. Builders sometimes join basement walls so that link houses appear to be single-family homes on small lots. These houses can be less expensive than single-family detached homes.

Condominiums or Stratas – A condo or strata is a form of ownership, not a type of construction. They can be high-rise residential buildings, townhouse complexes, individual houses and low-rise residential buildings.

If you have any questions about the home-buying process or different types of real estate, simply give me a call at 416-674-2318.

Mortgages in Canada are typically amortized over 25 to 35 years. While this seems a long time, it does not have to take anyone that long to pay off their mortgage if they choose to do so in a shorter period of time.

With a little bit of planning, and some sacrifice, most people can manage to pay off their mortgage in a much shorter period of time by taking positive steps such as:

1. Making mortgage payments each week, or even every other week. Both options lower the interest paid over the term of the mortgage and can result in the equivalent of an extra month’s mortgage payment each year. Paying your mortgage in this way can take your mortgage from 25 years down to 21.

2. When your income increases, increase the amount of your mortgage payments. Let’s say you get a 5% raise each year at work. If you put that extra 5% of your income into your mortgage, your mortgage balance will drop much faster without feeling like you are changing your spending habits.

3. Mortgage lenders will also allow you to make extra payments on your mortgage balance each year. Just about everyone finds themselves with money they were not expecting at some point or another. Maybe you inherited some money from a distant relative or you received a nice holiday bonus at work. Apply this money to your mortgage as a lump-sum payment to reduce your mortgage balance and watch the results.

By applying these strategies consistently over time, you will save money, pay less interest and pay off your mortgage years earlier! I’ll be glad to answer any questions you may have in this regard – let’s chat at 416-674-2318.

1. Make a double mortgage payment whenever you can. Doing this once a year can help pay off the mortgage 4 years sooner! If your payment is $2,000 a month, four years of no payments is $96,000!!

2. Increase the frequency of payment. Going from monthly to accelerated bi-weekly can reduce your mortgage by over three years! For a mortgage with $2,000 monthly payment, three years of no payments is $72,000!!

3. Increase your payment. For example a one-time 10% increase can shave 4 years off the mortgage. That’s $96,000! Imagine if you bumped the payment 10% every year from the get go!!! You would be mortgage free in 13 years! Start to finish! Can’t do it? How about 5% every year? You would be mortgage free in 18 years! Or how about increasing the payment by the amount of your annual raise?

4. Lump sum payments … same idea … mortgage is gone way faster! Even just one payment a year equivalent to 1 monthly payment will give you similar results as #2 above! How about using your annual work bonus?

5. Renegotiate whenever rates drop to save interest and pay mortgage faster! Generally a good idea, however, get independent professional advice (a cost benefit analysis) to make sure it makes sense for you at that time: I can help! A 1% reduction on a $300,000 mortgage will save $250 a month … times 5 years … that’s $15,000!!

6. Keep your credit rating high to obtain the best rate. Always pay on time. Never let payments slip past their due date. Always keep balances low in relation to credit limits on credit cards, lines of credit, etc. 50% or less is best even if you pay the balances in full every month. What generally reports to the credit bureau is the statement balance each month. So if your credit limit is $3,000 and you are running $3,000 a month through the card each month (to collect all those points you never spend or can’t use in blackout periods) and paying in full, it will look like you are maxing out your credit limit and your credit score will drop accordingly.

7. Increase your mortgage! It may sound counterproductive! Do it to roll in your credit cards, line of credit, car loan, etc., for a better rate and a set payment plan. Do you have a low or promo rate credit card? Those seldom end well. Keep the total payment amount the same but pay it in one neat monthly payment to the increased mortgage.

8. Make an RRSP contribution and use the refund to pay down your mortgage.

9. Go variable rate with your mortgage but keep payments as if fixed (higher) rate. Variable rates usually win out over fixed rates in the long run. By paying a higher payment you will pay off the mortgage faster. It’s also a buffer in case the rate rises above the fixed rate for short periods of time. Remember that variable rates are not for everyone. Get independent professional advice to find out what is best for you. I can help again!

10. Take your mortgage with you when you change properties to avoid penalty or higher rate on a new mortgage. This is called “porting”. Make sure that your mortgage has this feature. It is not widely known and could save you a ton of dough.

11. Set up auto savings every pay cheque, even $10, when it reaches the amount of one mortgage payment, apply it to the mortgage. This concept goes nicely with #4 above.

12. Unhook from the money drip … stop paying with your fancy points credit or debit card. Way too easy to overspend! Go old school, go off the grid … pay cash, it works!

13. Don’t ever buy on layaway, you know, six months don’t pay schemes. You think … No problem I’ll just pay it in six months, it will be okay. Think again! If you don’t have it, don’t spend it.

14. Downsize your house. Two good friends and clients of mine, having followed many of the tips here, are in great shape except they have a six bedroom house! Two people, six bed house – go figure! They are nearly debt free so no worries, but can you say the same? Circumstances change, make the adjustments along the way!

15. Don’t want to move? Convert the basement/rooms to rental and use the income to pay down debt.

16. Convert your mortgage to tax deductible. If you are self-employed, own rental property or have investments, this is likely possible. I won’t go into details here, just ask me how.

17. Have a payment priority. Pay ‘on time.’

18. Pay off the highest interest rate first.

19. If you have tax deductible loans, pay them off last, slowest. Pay the non-tax deductible loans first and fastest.

20. Pay off ugly debt first. Stuff like credit card purchases.

21. Payoff bad debt next. Stuff like car loans, boat loans. Things that depreciate in value.

22. Pay off good debt (or shall I say “not so bad debt”) last. Stuff like mortgages, investment loans. Things that hopefully appreciate in value.

23. Buying a car? Finance it if you have to, don’t lease! Check with a professional first – if you are self-employed it might make sense.

24. You have $20,000 in a secret bank account for a rainy day fund and $20,000 owing on a line of credit. Seriously? The bank account is paying you next to nothing (which is taxable income to boot) and the line of credit rate is way higher (and not tax deductible.) You know what to do! You can keep the line of credit open and on standby for rainy day funds. Make it the secret line of credit that you have but never use.

25. Give your Banker more money. No really. Keep enough in your chequing account to meet the minimum requirement to waive your service charges. “My bank charges $10 a month for 25 transactions and nothing, zero, zilch, zip if I keep $2,500 in the account.” Let’s see $10 x 12 is $120 a year to pay off debt. I’d have to earn 5% with the $2,500 in my savings account to come out ahead. No brainer here. Oh yeah, if you need more than 25 transactions a month…see #12 above.

26. #26? BONUS TIP and MOST IMPORTANT. Let’s face it, you’re not the Government and you’re not a Bank, you can’t run deficits forever and you won’t get a bailout … stop procrastinating already! See 1 through 25 above and take action now!

A Word of Caution: Beware of some too-good-to-be-true ultra-low-rate mortgages. These “no frills” mortgages are often loaded with restrictions like pre-payment limitations, fully-closed terms, stripped-out features, or unusual penalties. You really need to compare product to product. If you’re not looking at what you’re giving up, you may regret it in the future. This alone could prevent you from taking advantage of tips #1, 2, 3, 4, 5, 7, 8, 9, 10, 14, 16 and 22!

Call me any time at 416-674-2318 for a confidential conversation and an objective review of your debt situation.

Mortgage brokers keep up-to-date with the latest product offerings from lenders and have intimate knowledge of various features and options. Here are six key reasons for using mortgage brokers.

1. Choice: If you go directly to your bank, you will only be offered products from that financial institution. Mortgage brokers have relationships with several different lenders and are knowledgeable across each lender’s range of products.

2. Works For You: As small business owners, word-of-mouth makes or breaks mortgage brokers. Hence they are motivated to act in the clients’ best interests.

3. Skilled Negotiator: Mortgage brokers’ skill and experience, combined with their relationships with lenders, help them negotiate rates that are often better than what borrowers could achieve on their own. That remains true even in this competitive environment.

4. Goal Orientated: Are you looking for the cheapest rate? Are you interested in paying off your loan sooner? Are you planning on buying another investment property? A mortgage broker will interview you to find out what you want out of your home loan and work to find the best product to suit your needs and home ownership goals.

5. Paperwork: Mortgage brokers help their clients complete and submit the mortgage application, as well as gather the documentation required by the lender.

6. Read the Fine Print: After you’ve received your loan approval, the mortgage broker can help you understand the document and conditions of the contract. Also, the broker can walk you through the next steps leading up to the closing of the mortgage transaction.

To start a confidential conversation, please call me at 416-674-2318 or get started right away with a swift pre-approval from here: http://tinyurl.com/kwhe7kc

1. As many as 85 percent of all people in the USA use a mortgage broker and we are catching up quickly here in Canada.

2. I shop on your behalf for the best rates and products from over 50 different Banks, Credit Unions and Trust Companies.

3. My services are free to you because the bank pays me a finder’s fee. The industry is changing and banks now have to compete for business, so they value broker referrals. They spend millions of dollars operating their many branches, plus internal staffing and layers of management, so they can afford to compensate me while offering you deep discounts for the business we bring to them.

4. Isn’t it time the Banks compete for your mortgage business? You wouldn’t get just one opinion from one doctor if your physical condition were in question, so why get just one opinion when your financial profile is going through the most significant transaction of your life?

5. Your bank rarely provides the best rates and products. Most homeowners renew their mortgages automatically every four or five years, so they rarely receive the best available option. Since brokers send lenders millions of dollars of new business each month, they always offer us the deepest discounts which I pass on to you – whether you are purchasing, refinancing or renewing.

6. Our application process is simple and quick. I’ll just take your information and send it electronically to the lenders that I feel are the best fit for your situation; I should have some feedback later that day or the next!

7. One of my best benefits is I’m available on your terms! Isn’t it frustrating when a bank takes several days to get back to you, and then, if they decline you, you have to go through the whole process with another bank all over again.

8. I check your credit bureau record only once and forward it to all the appropriate lender! Many people inadvertently disqualify themselves from getting the best rate when they are shopping for a mortgage. When multiple banks pull your credit bureau report, your “Beacon Score” drops, sometimes eliminating the chance for the best mortgage or a mortgage at all!

9. There’s a mortgage product available for almost everyone now. When a person’s situation isn’t ideal, there’s usually a story about why; maybe they changed jobs, maybe they went through a divorce or another life altering event and their credit was affected. It is my job to tell your story to a suitable lender that will approve you.

10. I sincerely appreciate your business and will do a great job so that you may confidently refer your family, friends and co-workers to me in the future! Has any bank employee ever told you that?!

11. I am a certified Expert. Most bank employees are not Accredited Mortgage Professionals and only know about their own bank’s products. They do not know and cannot advise you to go to another lender where you can qualify. You wouldn’t go to your family physician if you needed a specialist! So deal with a mortgage expert specializing in mortgages from various lenders.

12. I work for you, not the banks. I don’t get paid unless your mortgage is funded by a lender that provides you the product you need. I have no reason to get the lender to charge you more interest on your mortgage, because the higher the interest, the harder it is to get you qualified! Clearly I work in your best interest.

13. Rate Protection. If the rates drop before you close you automatically get the lower rate and if rates go up you have the lower rate locked in. The last time you got pre-approved for a mortgage at a bank, did you get a commitment letter? Did they offer you rate protection like the one I can secure for you?

14. I provide a Commitment Letter every time so you can relax and be confident your mortgage financing is in place!

15. A mortgage through a broker is no longer a “last resort!” Actually we are becoming the first choice for knowledgeable borrowers.

For more information on how you can get the best mortgage for your specific needs, please call me at 416-674-2318 or send me an email: garry.grewal@dominionlending.ca

Purchasing a home is one of the biggest decisions most people ever make. At some point in their lives, most Canadians have probably asked themselves whether it is better to buy or rent a home. Ultimately, the decision is a personal choice, but it helps to look at the pros and cons of buying to determine whether home ownership is right for you.

Some Advantages of Buying a Home

Owning a home is generally considered to be a sound, long-term investment that can provide satisfaction and security for you and your family.

Each month when you make your mortgage payment, you are building equity in your home. Equity is the portion of the property that you actually own through your monthly payment versus the portion that you still owe the lender.

At the beginning of your mortgage, more of your payments go toward paying off the interest and less toward paying off the principal. But the longer you stay in your home and the more mortgage payments you make, the more principal you pay off and the more equity you accumulate.

Most mortgages also offer you the option of making additional monthly or annual payments to reduce your principal faster. Some prepayment privileges, for instance, enable you to pay up to 20% of the principal per calendar year. This will also help reduce your amortization period (the length of your mortgage) which, in turn, saves you money.

There is also a tax advantage. If your home is your principal residence, any profit you make when you sell it is tax-free. A home can appreciate – or increase in value – as time passes, building more equity for you. As you build equity and your family grows, it’s usually easier to upgrade to a larger home in the future thanks to the profit you’ll make when selling your current home.

As an owner, you can also modify and improve your home any way you like. Ownership tends to give you a sense of pride and can offer you and your family stronger ties to the community.

If you do decide that home ownership is right for you, it’s important to choose a home you can afford. If you can’t afford to buy your dream home, purchasing a more modest home can be a great place to start building equity which may allow you to buy the home of your dreams one day.

Since interest rates are low, now may be an ideal time to enter into home ownership for the first time.

Some Disadvantages of Buying a Home

Although it’s easy to get caught up in the excitement of buying a home, it’s important to remember that home ownership has some additional responsibilities as well.

For one thing, a home can be expensive. Chances are, your monthly payments will be more than what you are currently paying in rent when you factor in such things as your mortgage, property taxes, utility bills, repairs and general maintenance.

Owning a home ties up some of your cash flow and is likely to reduce your flexibility to move to a new location or change jobs.

While your home might increase in value as time goes by, don’t expect to get a big return quickly. There are no guarantees that your home will increase in value, particularly during the first few years. In the beginning, you could actually lose money if you sell because your home may not have appreciated enough to cover the real estate fees, legal expenses and moving, renovation and other selling costs.

Real estate is, however, usually considered a good investment over the long term.

When making the decision about whether to buy or rent, it’s important to carefully choose a home you can afford and then weigh the pros and cons. Millions of people enjoy the rewards of home ownership but ultimately it’s a personal decision based on your own priorities.

If you’re thinking of buying your first home, I’ll be glad to answer all of your mortgage-related questions. To get started, simply give me a call at 416-674-2318 or send me a quick email: garry.grewal@dominionlending.ca

Homeowners should know the differences between a traditional mortgage and a Home Equity Line Of Credit (HELOC.)

A conventional mortgage is a registered charge against your home. There is a set term – 6 months to 10 years with a fixed or variable interest rate. Payments include principal and interest. Many homeowners choose a fixed rate as it is easier to set budgets knowing the interest rate won’t change during the chosen term. Variable interest rates will change as Prime rate changes. You can purchase a home with as little as 5% down payment. If you have less than a 20% down payment (equity) the maximum amortization is 25 years. With more than 20% down, a 30 or 35 year amortization is available.

A HELOC is a secured line of credit also registered as a charge against your home. This charge can be in first position but generally is added behind a conventional mortgage. Some lenders will not permit another charge on title. Like any line of credit, a HELOC is fully open and you can borrow, re-pay and re-borrow. The interest rate is tied to the Prime rate and may fluctuate. Canadian Government regulations stipulate that a HELOC cannot exceed 65% of the value of your home, unless in second position when combined with a mortgage, in which case you can borrow to 80% of the value and qualifying must be done on a 25 year amortization using the government regulated benchmark rate. Payments can be as low as interest only but that should truly be the never-never plan for repayment. Any spikes in interest rates can throw off the most dedicated budgeters!

If used responsibly and with a sound strategy, a HELOC can have many advantages. Purchasing investments with a HELOC creates a tax deduction for interest paid. Renovating your home with a HELOC allows you to draw from it when you need it, only paying interest on the money used. Your children’s education, buying a boat or the down payment for a recreation property can all be facilitated with a HELOC. A HELOC can be a great tool for investments, renovations and short term financing needs. For anything longer term, however, it is often cheaper to choose a conventional mortgage with a variable rate. The difference in the lower interest rate outweighs the flexibility of the HELOC.

When buying a home, most people take a conventional mortgage with a fixed term and rate. The astute homeowner understands the power of a conventional mortgage combined with a HELOC. Understanding your needs together with a strong financial strategy can quickly turn your largest debt into your greatest asset! Call me at 416-674-2318 and let’s discuss the strategy that’s right for you.

If you are looking for a new home, be sure to get pre-approved. With a mortgage pre-approval, a licensed mortgage professional like myself can do a complete verification prior to sending you shopping for a home, and with that done, the dollar figure you are going shopping with is actually what you can spend. We will know for certain what you can afford based on lender and insurer criteria, and what the payments on a specific mortgage will be.

You can lock-in an interest rate for anywhere from 60 to 120 days while you shop for your perfect home. By locking in an interest rate, you are guaranteed to get a mortgage for at least that rate or better. If interest rates drop, your locked-in rate will drop as well. However, if the interest rates go up, your locked-in interest rate will not, ensuring you get the best rate throughout the mortgage pre-approval process.

In order to get pre-approved for a mortgage, we require a short list of information that will allow your lender to determine your purchasing power. I will explain to you the benefits of shorter or longer mortgage terms, the latest programs available, which mortgage products will most likely meet your needs the best and review all of the other costs involved with purchasing a home.

Getting pre-approved for a mortgage is something every potential home buyer should do before going shopping for a home. A pre-approval will give you the confidence of knowing that financing is available, and it can put you in a very positive negotiation position against other home buyers who aren’t pre-approved.

To get pre-approved, call me today at 416-674-2318 and let’s get started, or send me a quick email: garry.grewal@dominionlending.ca

There’s good debt and bad debt and the difference lies in whether it helps or hurts the pursuit of our financial goals.

Some debt can be seen as assisting one’s financial future:

1. Borrowing money to maximize retirement savings.

2. Loans with tax-deductible interest to earn investment income.

3. Borrowing to acquire an asset that may increase in value, such as a home or a rental property.

4. Student loans that enable us to get an education and lay the foundation for a career.

However, other types of debt can be a drag on future opportunities:

1. Revolving consumer debt with high rates of interest, such as bank credit cards or retail store cards.

2. Borrowing funds to buy something that has little or no future financial value.

3. Cash advances on credit cards; interest is charged from the date of advance – there’s no grace period.

To get rid of your bad debt or to arrange good debt, please call me at 416-674-2318 or send me an email: garry.grewal@dominionlending.ca

You’ve probably made a few new resolutions for 2025. Have you also resolved to reduce the cost of your mortgage and keep more of your hard-earned dollars in your own pocket? Here’s the often-repeated simple formula to minimize your interest cost and pay off your mortgage sooner:

1. Make your payments as frequently as possible.

2. Make sure your more-frequent-payment-plan is an accelerated or rapid pay-down option, which helps decrease the interest you pay.

3. Make a larger payment if possible, i.e., review your budget and, if possible, increase the amount you normally pay.

4. Make lump sum payments to reduce the principal whenever you can.

Remember that the above strategy works only if you do not carry credit card or other high interest debt. If you do, please call me at 416-674-2318 – I’ll be glad to review your finances and suggest a suitable debt management strategy.