Mortgage Services

As your trusted Fort McMurray Mortgage Broker, we are here to meet your needs. Whether you are a first–time homebuyer, a self–employed individual looking to secure a mortgage, an investor seeking a rental property, or someone considering a Home Equity Line of Credit (HELOC) or reverse mortgage, we have the experience and knowledge to support you.

First Time Home Buyers

Many of my clients are First Time Home Buyers, and I am aware of a number of programs that can make the process easier. One such program is the RRSP Home Buyer‘s Plan, which allows first time buyers to access funds from their RRSP with no tax implications.

RRSP – Home Buyers Plan

Investing in an RRSP provides more than just tax savings. Through the Federal government’s Home Buyers’ Plan (HBP), first-time homebuyers can use up to $25,000 of their RRSP in a tax-free manner to finance their new home. All individuals involved in the purchase must use the house as their principal residence and must withdraw the funds within 30 days of the closing date. The repayment plan is spread out over 15 years, with payments beginning two years after the home is purchased. Every year, a notice of assessment will be sent out with details regarding the repayment status, the balance, and the required payment for the following year.

For more information about the HBP, visit Canada Revenue Agency’s website.

Purchasing Rental Properties

If you are looking to purchase a new home to occupy as your primary residence while turning your existing house into a rental, you can do so with as little as 5% down. There are rental offset options available to help offset the debt of the house you are converting into a rental. However, if you are buying a rental property, you must put down a 20% down payment. This down payment must come from your own savings or a Home Equity Line of Credit; it cannot be borrowed or received as a gift from family. Additionally, the RRSP Home Buyer’s Plan is not eligible for rental property purchases.

Mortgages for Self Employed Borrowers

Working for yourself or going on contract with an existing company is becoming increasingly popular among Canadians. There are many advantages to this, such as the ability to write–off personal expenses and therefore pay less in taxes. Despite this, however, it can be difficult to obtain a mortgage from a chartered bank as they may not take into account these factors when assessing an individual. Fortunately, Indi Mortgage offers loan programs specifically designed for self employed individuals. Approvals are based on factors such as credit score, length of time in business, and property type and location, rather than business financials or tax returns alone. We are experts in arranging mortgages for those who are self employed, and we are sure we have the perfect loan for you!

Equity Takeout / Debt Consolidation

Debt Consolidation

There may be times when it feels like there is not enough money at the end of the month. Credit card payments, car loans, taxes, and more can add up quickly and put us in financial difficulty. There are two ways to address this situation:

  1. Make more money! Sounds easy right? Maybe not.
  2. Make the money you have borrowed, cost less!

Instead of relying on high–interest, unsecured debts such as credit cards and department store cards, consider using the equity in your home to pay them off. This way, you can replace them with a single, low–interest secured loan, amortized over 25 years. This will reduce your payments significantly, making them more manageable, and help save you from late payments, bankruptcy, or structured settlements, which can ruin your credit score and future borrowing potential. Making this switch will give you the satisfaction of being able to tell credit card companies that you no longer need their cards, and bring you closer to financial freedom. Financial freedom is only a call or application away.

Open vs. Closed Mortgages

If you have an open mortgage, you can make full or partial prepayments without penalty at any time during the loan term. This can be beneficial if you expect to pay off the loan in the near future, such as due to selling your home. With a closed mortgage, you can still make prepayments, but there are limits. Usually, you can prepay up to 10–25% of the original loan amount per year. Additionally, you may only be able to make prepayments on certain dates or only once a year. Your mortgage professional can tell you the exact details of your loan‘s prepayment policy.

Fixed rate vs. Variable Rate

A fixed rate mortgage provides you with a set interest rate that will remain unchanged for the entire term of the loan. For instance, if you take out a 5–year fixed rate mortgage at 5.25%, you can rest assured that your rate will stay at 5.25% for the entire 5–year period. This can give you a sense of security and peace of mind, as you know exactly what the interest rate and payments will be. While you may pay slightly higher interest rates for a fixed rate mortgage, the rate usually increases with the length of the term. On the other hand, a variable rate mortgage has an interest rate that is tied to and fluctuates with the bank’s prime rate. So, if the prime rate goes up, your rate goes up, and vice versa. Variable rate mortgages usually have the lowest available rate, but it comes with the risk that rates may rise. Your mortgage professional will be able to help you review all of the available options.

Mortgage Features

The Mortgage Term

The length of time of your mortgage loan is referred to as the term. This term is shorter than the amortization of your mortgage and represents the amount of time you and the lender are both obligated to each other. When choosing your mortgage, you‘ll need to determine the term. Once the term is up, your mortgage is open for renegotiation. At this point, you can opt to switch lenders or stay with your current one. If you‘ve kept your mortgage payments up to date, the lender will usually renew your mortgage without requiring you to re–qualify.

Short Term vs. Long Term

When deciding between a short term and long term mortgage, it is important to consider what best suits your needs. A short term mortgage is typically three years or less, and is a good choice if you anticipate that interest rates will be lower at renewal time. Conversely, a long term mortgage is usually three years or more, and could be suitable if current rates are favourable and you desire the security of planning for the future – this is particularly important for first time homebuyers. Ultimately, the key is to feel comfortable with your mortgage payments.

Payment Frequency

When it comes to your mortgage payments, most lenders offer a variety of payment frequencies such as weekly, bi–weekly, semi–monthly, and monthly. While the type of payment you choose is up to you, more frequent payments may be beneficial. By making payments more often, you can reduce the amount of interest you owe, pay off your mortgage sooner, and lower the principal amount. Contact Indi Mortgage  to discuss the options that will work best for you.