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

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

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

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

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.