Financing questions (Ottawa)

[boaz]

Hi All,
This is my first posting
My name is M.J. and I live in Ottawa. I have one rental house beside my residence.
Recently I joined this forum, and seriously considering becoming a REIN member.

I am shopping around hybrid mortgage/LOC product on my residence.
When I talk to a bank (RBC), he seemed very eager to sell the product.

That made me wonder if I would loose buying power when time comes to renew the mortgage because of inconvenience and cost of moving to other lender.

I would like to hear your experience and perspective.

In Ottawa area, would you recommend some good mortgage brokers or bankers?

I thank you in advance for your help.

Regards,
M.J (Boaz)

 

[NawarNaji]

Hi M.J,
The re-advanceable mortgage is a great option to access your home equity without requiring to refinance. Depending on how the lender registers the mortgage (collateral or charge) will determine your options at renewal time.

I am a mortgage broker, please feel free to call me at 1.866.366.3487.

For more information about me & what my clients say about my services, please click on testimonials on my website.

 

[Alvaro Sanchez]

I am also in Ottawa and not a REIN member (yet)... considering but hesitating as there are not that many members in Ottawa (Maybe REIN can give is a deal to get the Ottawa chapter going).



I have LOC on principal residence and I have 3 rentals. My current broker is
Hi All,

This is my first posting

My name is M.J. and I live in Ottawa. I have one rental house beside my residence.

Recently I joined this forum, and seriously considering becoming a REIN member.



I am shopping around hybrid mortgage/LOC product on my residence.

When I talk to a bank (RBC), he seemed very eager to sell the product.



That made me wonder if I would loose buying power when time comes to renew the mortgage because of inconvenience and cost of moving to other lender.



I would like to hear your experience and perspective.



In Ottawa area, would you recommend some good mortgage brokers or bankers?



I think you in advance for your help.



Regards,

M.J (Boaz)

 

[boaz]

Thank you Nawar and A. Sanchez for your information.

I will research more with it.


Regards,
M.J (Boaz)

 

[VICTORFERNANDES]

QUOTE (boaz @ Dec 14 2010, 10:05 PM)
Hi All,

This is my first posting

My name is M.J. and I live in Ottawa. I have one rental house beside my residence.

Recently I joined this forum, and seriously considering becoming a REIN member.



I am shopping around hybrid mortgage/LOC product on my residence.

When I talk to a bank (RBC), he seemed very eager to sell the product.



That made me wonder if I would loose buying power when time comes to renew the mortgage because of inconvenience and cost of moving to other lender.



I would like to hear your experience and perspective.



In Ottawa area, would you recommend some good mortgage brokers or bankers?



I thank you in advance for your help.



Regards,

M.J (Boaz)








Hi MJ,



You can e-mail Lilianne Eid, she is located in Ottawa, employed at TD Cananda Trust, has access to a lot of lenders as well.



Exceptional service!



Knowledgeable, Fast and Reliable!



[email protected]

 

[NawarNaji]

Hello again,
Be aware that TD mortgages are registered as collaterals effective October 19, 2010 at 125% of your home value. This is great for continuously accessing your equity, however you will be at a disadvantage at renewal time since there will be legal fees incurred to discharge the collateral if you decide to move to another institution. This will make it more cost prohibitive for the clients to move to another lender due to the legal fees which gives the bank the upper hand in retaining the client at a higher rate than others. It will be either leave & pay or stay at a slightly rate because you "save" legal fees.

Here is a link to a globe & mail article regarding the above: http://bit.ly/duTEzp

 

[Nir]

What is the difference between registering the mortgage as `collateral` and registering the mortgage as `charge`? Thanks.

 

[NawarNaji]

Hello,
Collateral is revolving, i.e. you can access the monies continuously. A good example is a line of credit, where you can borrow, pay it down then access up the full limit again. Typically, mortgages are registered as a charge where as you pay down the mortgage you can`t access the equity without refinance. Having said that, there are lenders that have re-advanceable mortgages (where you can access your home equity throw a line of credit as you pay down the mortgage) and registered as a charge. It`s important to know the details of the mortgage (term, registration, penalties, portability.....) and not focus on rates only.

I hope the above helps and please feel free to call me should you have any further questions.

All the best.

 

[PeterKinchMortgageTeam]

QUOTE (boaz @ Dec 14 2010, 09:05 PM)
Hi All,

This is my first posting

My name is M.J. and I live in Ottawa. I have one rental house beside my residence.

Recently I joined this forum, and seriously considering becoming a REIN member.



I am shopping around hybrid mortgage/LOC product on my residence.

When I talk to a bank (RBC), he seemed very eager to sell the product.



That made me wonder if I would loose buying power when time comes to renew the mortgage because of inconvenience and cost of moving to other lender.



I would like to hear your experience and perspective.



In Ottawa area, would you recommend some good mortgage brokers or bankers?



I thank you in advance for your help.



Regards,

M.J (Boaz)




Hey MJ, Firstline, RBC and Scotia all have the best re-advanceable mortgages in the market place. The first step you should do is get pre-positioned and I would recommend talking with a PK-Approved broker to go over that process so that you are properly positioned for your next step. You can send me an email and I can reccommend the closest one to you.



Peter

 

[Nir]

QUOTE (NawarNaji @ Dec 16 2010, 06:39 PM)
Hello,

Collateral is revolving, i.e. you can access the monies continuously. A good example is a line of credit, where you can borrow, pay it down then access up the full limit again. Typically, mortgages are registered as a charge where as you pay down the mortgage you can't access the equity without refinance. Having said that, there are lenders that have re-advanceable mortgages (where you can access your home equity throw a line of credit as you pay down the mortgage) and registered as a charge. It's important to know the details of the mortgage (term, registration, penalties, portability.....) and not focus on rates only.



I hope the above helps and please feel free to call me should you have any further questions.



All the best.




Great input Nawar!

Thanks & regards,

Neil

 

[NawarNaji]

Thank you Neil, much appreciated.


Have a great day.