Credit Counselling Vs. Debt Consolidation Loans

Debt consolidation and credit counselling are probably the best options a person can have in order to get out of his/her debt. However, people often end confusing both these terms. When struggling with debt, you need to calculate every possible calculation and determine every possible scenario so as to decide which debt relief option is the good for you. Once you arrive at a decision, you will certainly get monetary relief.

Why Choose Debt Consolidation?

Generally, debt consolidation is considered a very broad term. It works by combining all your debts into one but a manageable payment. People who have little or no understanding of the concept of debt relief end up thinking that debt consolidation is actually a big loan to pay other loans and therefore immediately jump on a conclusion. Although this is right but there are other options too which can help you equally well, like credit counselling.

Credit counselling is just a form of debt consolidation because it also follows the idea of consolidating of payments into one. One can get him/herself enrolled with a credit counselling program with a mortgage company. You will be required to send your payments to this company who will further distribute them for you.

What’s noteworthy is that both these debt relief options require a steady income in the absence of which debt consolidation loans are not possible. This is because without an income, you will not be able to pay the lender from which you have taken the consolidation loan. For credit counselling too, no counsellor will come forward to assist you. Without a fixed salary, all you can get is advice, but even that won’t help if you have no means to repay your loan.

Credit Counselling and Debt Consolidation

Usually, credit counselling companies are affiliated with creditors. They associate with these non-profit agencies so as to minimize the losses by giving free help and advice to those who are struggling to make payments. This help seems angel like when you are in dire need of help. Unlike credit counselling, debt consolidation does not necessarily involves a company connected with creditors. In fact, the lenders in this case don’t really care as to how you will use this money. They are only interested in how you will repay it. These factors are also same for commercial mortgage Mississauga.

Another major difference between credit counselling and debt consolidation is that you don’t really have to possess an impressive credit score for the former, while the latter depends a lot on it. In case of a counselling, if you can’t pay the monthly payments, then a debt management plan will help you out and you shall be fine. On the other hand, for a debt consolidation, a good credit score will help you gain maximum benefits of the loan that you have acquired to pay your debts. For instance, a good credit score can help you cut a deal with the best interest rates, while a bad one can cost you a lot through high interest rates.

Ultimately, the choice you make of a debt relief option will solely depend on how much load your finances can take. You need to be sure regarding your financial standing as this is the only way to get out of the debt-zone. Once, you have done all the essential analysis, step forward to choose the debt relief plan that will suit you best. We, at CanadaMGC, are debt consolidation Mississauga experts providing effective mortgage solutions. With our strategic debt relief plans, we have benefited hundreds of people. Visit us sometime to know more about the mortgage plan you think suits you best.

What is a Collateral Mortgage?

Collateral Charge Mortgage Vs. Standard Charge Mortgage?
Recently both TD Canada Trust and ING announced that all of their new mortgages will be registered as Collateral Charge Mortgages, and many lenders are expected to follow. In light of the recent announcements, we at CMGC have decided to shed some light on the subject.

First, some background..
There are two ways to register a mortgage loan. The first being a Standard Charge Mortgage (how most fixed-rate mortgages are being registered) these are done with the Land Title or Registry Office. A Standard Charge Mortgage can be switched, transferred or discharged.

The second being Collateral Charge Mortgage, these are registered under the Personal Property Security Act (PPSA) and can only be discharged, not transferred.

The Collateral Mortgage Explained
Simply put a collateral mortgage is when the lender doubles their security by obtaining BOTH a lien registered against the property and a promissory note.

Unlike the standard charge mortgage, the collateral mortgage is difficult to move to another lender at the end of the term, and costs more to move to another lender. Also, with a collateral mortgage, if you go into arrears or default, the bank has the right to raise your interest rate by up to 10 percentage points. On a debt as large as your mortgage, this could mean a significant charge.

The lender can register a higher property value, up to 125%, so that if you need to borrow money against your equity it can be done quickly for example without any legal fees. This may sound like a good thing, but it is a double edge sword. Basically having the flexibility to borrow increases the time it takes to pay down your mortgage. Also once you register your certain value with your lender the valued amount will not recognized by other lenders.

Another down fall of this type of mortgage is the fact that all of your loans are linked. If for any reason you default on your mortgage the bank can roll any other debts that you have with them, such as a line of credit or credit card debt. This means you can loose your home, and the ability to use those other products as well.

The recent government mandated changes also come into account. Refinances can be done up to 80% of the property value, so if you put down 5% at purchase you are stuck with that current collateral charge mortgage until you pay down your mortgage from 95% of the value to 80%.

Although Collateral Charge Mortgages are not a new thing in Canada, they have been creating buzz within the last couple of months. Mortgage Rates continue at all time lows and locking into a collateral mortgage may not be the best thing for you.

Collateral Mortgages can be tricky, they’re appeal is that you can have access to equity quickly, which is not a good idea if your plan is to pay off your mortgage faster.

At CMGC we are Mississauga’s leading Mortgage Brokers, use our Mortgage Calculator to determine what your options are to obtain the Best Mortgage Rates.

7 Myths of Bankruptcy – Busting Misconceptions for Smarter Money Management

Facts obliterate the myths! The same is true about the financial industry’s nightmare – Bankruptcy. Canadians experiencing financial stress often dread at the very talk of going bankrupt. However, some people take it in stride and jump on the bandwagon even when they have no idea about bankruptcy’s deep repercussions. The myths associated with going bankrupt often overshadow the desire for smarter money management.

Ignorance about financial matters further compounds the already grave situation. Our mortgage experts in Mississauga are often asked about the bankruptcy option with a load of misconceptions and myths attached to it. Let’s hear the top 7 myths related to bankruptcy and their solutions to make smart financial choices.

Myth No. 1 – Going Bankrupt is as Easy as Pie
Most people think declaring bankruptcy is simple way out of the financial mess. That this is the easier route to sort out your financial problems is the biggest misconception. In reality, the bankruptcy filing remains on the credit bureau report for a period of 6 years. Your credit score will have marks of bankruptcy for 6 years during which it will extremely difficult to secure credit. Not to mention the emotional baggage that includes guilt and shame that remains even longer.

Myth No. 2 – Everyone is Eligible for Filing Bankruptcy
General public seems to believe that every ‘Joe’ can easily go bankrupt with the support of government. Though most people can, there are severe consequences where going bankrupt is not the ideal solution. The exact factors include assets, collateral and future income levels. For some people, resolving financial mess is a better option than losing the match willingly.

Myth No. 3 – There is No Other Option
Totally untrue! There are several alternatives to this nightmare including debt management, debt consolidation, Formal and Informal consumer settlements, refinancing your mortgage and more. Every case is unique and depends on individual’s financial situation. Bankruptcy alternatives are best discussed with a credit counselor.

Myth No. 4 – Bankruptcy will Cover All My Debts
Remember, bankruptcy is not an elixir that will cure all your problems. There are myriad types of debts that it does not cover. For example, car loans or mortgages are often not covered. Student loans are also debatable since some students take long leaves from study and misuse the purpose of loan. Moreover, divorce debts and joint debts are debatable as well.

Myth No. 5 – There Won’t Be a Single Penny Left in Your Pockets
Going bankrupt does not mean you will lose everything. Most provincial laws ensure that you are not devoid of your life’s basic amenities like clothing and furniture etc provided their value is within set limits. Health and medical equipment are also not taken away. In some cases, homes without equity can be kept as well. Equity represents the market value of your home after deducting the amount owed by you against the home. If you are a worker, tools/machines related to your livelihood are not collected if their value is below set limits. In Canada, you will not face mortgage foreclosure.

Myth No. 6 – Bankruptcy is Limited to Only Poor People
People from every strata of society are affected by financial problems. From middle class to lower class and even the rich, all face monetary problems. Everyone seeks specific solutions to tackle debt. Bankruptcy is applicable to everyone who fails to pay their obligations.

Myth No. 7 – Exhaust Every Credit Card and Just File for Bankruptcy
Don’t think that you can shop around endlessly before declaring bankruptcy. It will only create problems and jeopardize your relation with the creditors. They can oppose your bankruptcy application and foil your entire plan. Remember, trustees are vital to secure discharge from financial obligations.

What Made you End up on this Road

While bankruptcy is an option as a last resort, it does not actually address the core problem. The issues at the very heart of the problem can be addressed once you ask yourself how you ended up in this mess. How did you pile on enormous debt? For once, sit down and think why you are struggling with debt? Ask yourself:

Are your incomes and expenses managed as per a planned monthly budget?
Do you save money for mortgages, emergencies or annual expenses?
Are there any specific long-term financial goals you are faltering with?
Do you suffer from non-financial or emotional issues that worsen your situation?
There are Other Options As Well – Explore Them First

Most people have never learned smarter money management skills. It sounds strange, but no school/college teaches children credit management skills or inculcates habits that promote sound financial health. Credit is a temporary fix. Handling deeper issues takes discipline. Mastering financial skills puts you in charge of your destiny. Explore mortgage refinancing, debt consolidation, renewal at better interest rates, credit counseling before opting for bankruptcy. For professional help, consult a good non-profit credit counseling agency or a local credit counselor in Mississauga.

Mortgage Lessons before Feeding Solar Power to Your House

With the ever increasing population, the demand for energy is also taking toll. Due to this, the pressure on the existing resources has increased which has directly affected the power costs. Electricity bills are shooting up like never before. Thus in such a resource conscious environment, there is a need to promote renewable sources for power, like – solar energy. There was a time when solar energy was too expensive to harness, but not anymore. Nowadays, employing a solar system to power the house does not seem like an impossible task.

However, if you think about paying for the entire solar system on your own, then it could hurt your pocket a bit. Thus it is better to choose a wise mortgage institution. Mortgage lenders nowadays are open to finance such kind of utilities. Thus if you wish to get a mortgage for your solar powered house, then it is the right choice. Following are some essential points you should take care of while finding a mortgage:

Find a Broker – Once, you decide that you want mortgage for installing a solar system in your house, then try to research well and find a mortgage broker who can help you to finance it. Try to find the best lending company with the best rate and plan that would fit best according to your requirement.
Understand the Company – Make sure that the company you are dealing with is a legit company or not. Try to understand the company’s history and reputation. It is important for you to be sure of the lending institution with which you are dealing. Installing a solar system can be a bit costly and you obviously don’t want to fall in the trap of a fake mortgage company with fake schemes and rates.
Compare the Rate – Interest rate is a determining factor for your mortgage. Thus it is best to verify the rate from other lending companies too. Negotiate the rate and choose the plan which you feel will suit you best. You obviously don’t want to end up with a solar system and the feeling of being robbed.
Uncover the ‘Catch’ – There are many amateur mortgage companies that operate just to fulfil their hidden agenda. Try to connect the dots and see if the company you are dealing with has such hidden motives or not.
Homeowners need to do their ‘homework’ regarding a company’s policy or rates in a proper way so as to avoid any regrets later on. A lot of things should be considered evenly when one is thinking about obtaining finance for a solar system. Thorough verification of rates and schemes is necessary before you make any move. At, we have helped hundreds of people to make their dreams come true with our effective plans and best rates. Call us anytime to enquire more about your mortgage requirements.

Got a Bad Credit Score? Read On to Secure Your Mortgage

The thought of buying a new home brings with both excitement and anxiety for first time home buyers. Most people are excited to feel pride of ownership, and anxious because of lack of experience and knowledge with the procedure.

Journey down Home Buying Lane

When the buyers have poor credit, this is cause for much more anxiety.

If you are a home buyer with poor credit it’s best to familiarize yourself with the process as much as possible. Talk to friends, family and co-workers to learn more about this topic.

Follow our guidelines below to ensure your home purchase is a success:

Make a fat Down payment –Mortgage lenders always love a significant down payment. So, try to pull some money and build-up an amount that is at least 20-30 percent of the price of the home. In case you are unable to gather that much, try asking a family member for a short-term loan. If you are successful in putting together this amount lenders will develop a certain trust in you and will definitely consider your application seriously.

Revise your credit report– Having a poor credit score plays a crucial negative and deciding role in your application’s approval process. Hence, going through your credit report is a much better option. Order your credit report copy and review it from A to Z. Notice any red flags and find every detail about them. Now prepare to explain it to the potential lenders with confidence.

Make a list of lenders –You will definitely get a lot of suggestions when it comes to lenders from friends and family. You may even find plenty of them online. But apart from them, do your research and make a list of those mortgage lenders. They can help new home buyers with a bad credit score.

Do not get excited –Do not rush to sign the first mortgage offer that you receive. No doubt it sounds tempting and exciting, but don’t get carried away. It’s just the beginning. Chances are that you will land yourself an offer at a much better interest rate if you apply to 4-5 more lenders.

Take these as some initial protocols that every first time home buyer should follow. If your credit score is poor, then you need to be extra cautious and alert in your every step. Try to understand, what lenders lookout for in people with a bad credit score. Work on those areas and help yourself and a great deal. We, at Canada MGC, provide mortgage for homes and businesses. In case you have a bad credit score, then take benefit of our specially designed plans and become a homeowner for real!

The What, When and How of Mortgage Interest Rates in Canada

It’s true that every person in the world dreams to have his/her own home. Canadians face dilemmas from a lot of angles when it comes to home ownership. For example, the question of what and where to start to buy their own home troubles them all. Of course the next best thing is the mortgage rate.

Since you might have set your budget to buy the home of your dreams, it is still vital to look for great deals. You need to know how to finance the purchase of a home, mortgage down payment options and even savings for your down payment.

What All You Need To Look For Your Mortgage?

Explore your mortgage options from as many lenders as possible
Research all about the chosen rate option
Consult and hire a Mortgage Broker
Get pre-approved safely
Mortgage marketplace in Canada is highly competitive. Banks act as the prime target for your home mortgage and are considered as one of the most reliable source. But today’s market offers another good source for your home loan i.e. independent mortgage broker.

Mortgage broker is a person, who works as intermediate between lender and borrower. And receive the commission from the lender once a loan is approved. In short, mortgage broker will provide you fair guidance of cheap interest rate from lenders like big banks or financial institutions.

Mortgage down Payment Option

Before you start house hunting, explore the market for the finance to procure a home. Research all about every source that provides you mortgage. Search out their best interest rates, terms & conditions as well as down payments. Thereafter, look out for the best source/lender who will lend money for your home. Last, but not the least, look for the mortgage broker who will help you negotiate with the chosen lender. Look how to pay back the mortgage amount in low rate?

So before selecting any options set your down payment first. As there are a number of mortgage down payment options, choose wisely. Canadians consider low down payments as the most reliable way to start mortgage. Select your down payment as you going to pay either weekly or at monthly bases. RRSP first time home buyers plan is the most trusted by Canadian residents. Here are some mortgage down payment options.

Conventional Mortgage – Here, down payment of at least 20% is required to qualify. It can be chosen on either fixed or variable rate basic. It is known to be one of the cheapest ways to pay back the mortgage amount.
Insured Mortgage – This is one of the most favorable options for most of the lenders in Canada. It is available for both new and resale homes. Generally, it’s 5% low than the conventional mortgage. Before you pay low down on payment mortgage, get insured first by submitting a potential default amount to the lender. Your down payment and interest on this amount is added to the principal amount of your mortgage.
RRSP-Down Payment – First time home buyer can also look for the ‘Federal Government’s Home Buyer’s Plan’. They are qualified to use up to $25,000 RRSP savings per person for down payment on a home. This withdraw is not taxable if you repay within 15- year of time period.
A dedicated financial broker will help you in selecting the best mortgage plan, rates, terms and conditions. These days, with low interest rates in real estate market boosting confidence of Canadian citizens, hiring a broker is perhaps the best decision you can ever take.

Why You Should Choose a Mortgage Broker

Buying a house is a milestone decision in anyone’s life. There’s a lot to factor into the process and with such an important decision it requires careful attention. A good mortgage broker can definitely be your greatest resource through out your home hunting. An independent mortgage broker can save you precious money and time, and can discover the best possible deals for you.

:Here are reasons you should choose a Mortgage Broker.

A mortgage broker will review your financial situation and credit history first. Then will discuss your future plans taking into account your wants and needs. Based on their analysis and calculations, a mortgage broker will guide you in your approach to prospective lenders. This is how you get the best financing at the best terms.
Independent Mortgage brokers, such as our agents at CMGC are not affiliated with one particular bank or lender. Therefore, the advice they offer is unbiased and in the best interest of their client. On the other hand, bank officers are always keen in ‘selling’ a loan product to home buyers for their personal commissions.
Your mortgage broker is a great resource to give you advice, and referrals to other services you may need in on your home hunt. It is a more personal approach then working directly with a bank.
By signing up with a mortgage broker, you can actually increase your chances of getting a loan. A broker works with various lenders, companies and financial institutions. These lending options can only be availed through brokers. If you have a bad credit history a mortgage broker can present you with a range of options that would be specially designed for people with low credit score.
A mortgage broker alleviates your worries so that you can put your energy into other thoughts about your new home. Trustworthy lenders, range of options, best rates and simplified terms are the primary characteristics of a certified and experienced mortgage broker. So, if you are planning to buy a house but are still confused regarding the loan options, it is time to call a mortgage broker.

The Internet is the New Frontier for Canadian Mortgage Hunters

Close to one third of the Canadian residents are just few clicks away from getting home mortgage. This is true as per a survey conducted by Canada Mortgage and Housing Corporation. The authority claims that more and more people are now conducting mortgage related research and analysis on the internet. Web has become an indispensable resource for borrowers and lenders alike.

Google Mortgage Queries and Find the Best Deals

Mortgage queries are one of the most searched after words in the search engines. Canadian mortgage sector is the fastest growing among the world. Search terms like first-time homebuyers and mortgage rates are constantly searched by people. Online tools such as mortgage calculators are helping homeowners plan and schedule their mortgage better. Websites are now offering online applications for quick disposal of cases. CMHC survey also shows that social media is also becoming increasingly popular platform to search for suitable mortgages.

SmartPhones and Social Media – Mortgage Platforms

People are tuning into Twitter, Facebook and YouTube to reach out to potential lenders. Young Canadian residents are now turning to social media to know more about their first mortgage. These platforms have real users to connect with and provide an in-depth perspective from a real mortgage borrower. Companies have also realised the worth of social media. Major Canadian lenders and mortgage brokers have dedicated presence on these platforms.Smart phones have also revolutionized the way mortgage industry works. CMHC survey also lists out that more young people use their phones to keep track of the mortgage industry. From live interest rates to daily mortgage rules, users can access a lot of data in an instant.

Professional Mortgage Brokers plus Internet: Perfect Approach

Despite the rising trend of using internet for mortgage research, it is advised that borrowers consult real brokers as well. Combine the two aspects of the mortgage application and you will most likely deal a winning hand. These professionals have years of experience in Canadian mortgage industry. They are abreast of the recent real estate changes. Moreover, most of the reputed mortgage brokers Canada are already active on the internet.

Online Mortgage Calculator

If you are a young potential homeowner and currently looking for a good deal, online mortgage calculators are a great way to begin. These online tools are regularly updated with live interest rates. So, you just enter the details and you will be presented with yearly or monthly mortgage payments, amortization length and down payment. The online mortgage calculator does the entire math for users. Professional mortgage brokers Brampton also use these calculators. Even the CMHC official website provides three calculators on its website. These CMHC mortgage calculators are:

• Household Budget Calculator
• Mortgage Payment Calculator
• Mortgage Affordability Calculator

Users can calculate a variety of different financial parameters using these calculators. Some of them include property tax, legal costs, interest premiums, moving costs, utility bills, repair costs, auto insurance etc. Make use of these online tools to make the most of your mortgage research. Canadian mortgage brokers are easy to reach on the internet. Happy mortgage hunting!

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