mortgage broker in Surrey Tag

16 Apr

Posted at 15:19h in Mortgage Broker Surrey BC

Planning to apply a mortgage to buy a property in Canada? As a prospective homebuyer, you must be aware of the type of mortgages and rates available in the market to make the right choice. A mortgage broker in Surrey, BC can help you make the right choice by making you understand the ins and outs of the mortgages and the importance of choosing the right rate type.  

There are two main types of rates available, mainly fixed and variable rate that comes with their own advantages and limitations. In this blog, we’ll explore the interest rate options in Canada:

  • Fixed Rate Mortgages

A mortgage approved with an interest rate that stays the same or fixed for the duration of the mortgage or loan period is known as a fixed rate mortgage. This implies that you pay the same proportion of interest on the borrowed money whether you are in the first or the last year of your mortgage term. Fixed-rate mortgages are easier to budget for as you already know the interest rate you are going to pay, making them more predictable.

Advantages of fixed rate mortgages include:

  1. Financial Stability: It is simpler to project monthly payments you need to pay in coming years in advance with a fixed-rate mortgage.
  2. Consistent Rate: The interest rate and monthly payment stay the same throughout the duration of the loan.   
  3. Risk Protection: Since interest rate is fixed, it won’t fluctuate with the market, thereby protecting you from future rate increases.
  • Variable Rate Mortgages

A variable rate mortgage is a type of loan or funding with an interest rate that fluctuates based on the market state or scenario on a regular basis. It usually starts with an initial term which is usually more than a decade, where the interest rate is a little bit lower than it would be for a fixed rate mortgage. When the loan enters its adjustment period, the rate may be changed in accordance with the current market conditions. This can result in an increase in your rate and a larger monthly mortgage payment. Because of this, variable rate mortgages are considered quite riskier.

Advantages of variable rate mortgages include:

  1. Lower Starting Rates: Variable rate mortgages frequently begin with lower interest rates, resulting in lower initial monthly payments and higher purchasing power.
  2. Potential Savings: If interest rates fall, the rate adjustment may result in lower monthly payments and long-term savings, though this is not guaranteed.

Which Mortgage Is Best For You?

Whether you are looking for a residential mortgage or need construction loans in Surrey, fixed rate mortgages have been more popular among buyers, particularly those who want to own their property for an extended period of time. Selecting the right mortgage type needs careful analysis of your financial condition and long-term objectives, including risk tolerance and specific circumstances. If you are looking for a reliable mortgage broker in Surrey to help you with fast mortgage approvals, look no other than Satbir Bhullar.

27 Mar

Posted at 13:24h in Mortgage Renewal Surrey

Renewing your mortgage is paying off your current mortgage and getting a new one with the same lender. The mortgage renewal process is an excellent way to save money. 

If you do not want to keep paying the same amount on your mortgage every month, consider renewing it. When you renew your mortgage, instead of paying the original amount of interest every month for specific years, you will pay a lesser amount for a shorter period. The process usually happens every few years, and a Surrey mortgage broker can provide excellent and reliable services. 

In this comprehensive guide, we’ll look into the things that we should remember when it comes to mortgage renewal Surrey.

Here we go!

Perks of Renewing the Mortgage

  • Private mortgage brokers in Surrey know what we’re getting, and renewing the mortgage plan is easy.
  • It might be cheaper than changing mortgages and finding a new company.

To determine when is the best time to renew your mortgage, you will need to look at a few factors:

  • The amount of equity in your property versus the total value of your loan
  • Your current interest rate
  • The size of your monthly payment

 

Things To Keep in Mind Before Renewing Your Mortgage in Surrey

Evaluation of Current Goals

There are many things that you must consider before you renew your mortgage. Consider taking into account how your current goals will be affected by renewing. To evaluate your current plans and mortgage renewal process, you can consider the mortgage’s length and cash requirement.

Do Your Research

To avoid mistakes, it is essential to do your research. It is important to understand the implications of your decision and be able to make an informed decision. Doing your research for mortgage consultants in Surrey before committing is essential. You can follow the necessary steps:

#1 Ask yourself if you need to renew in the first place or when you can renew the mortgage

#2 Be aware of the costs and choose the best time to renew your mortgage

#3 Understand what you’re signing up

#4 Call your certified mortgage advisor before you sign any agreements

Don’t Leave Your Renewal to the Last Minute

There are many things to consider when you want to renew your mortgage. Be aware of how each will affect your finances and make the decision that is right for you. Many people think that only the interest rates on their mortgage affect their monthly payments, but other factors must also be considered.

In the current climate, when the interest rates are at an all-time low, many homeowners are tempted to renew their mortgages before expiration. When you move up your mortgage renewal, you could end up saving a lot of money in the long run.

Find a Broker

A mortgage is a long-term commitment, so it is important to get educated before you sign on the dotted line. It pays to have professional advice when it comes to mortgages. A Surrey mortgage broker can help you get the best deal available. They are experts in the industry and can provide all of the information you need about your options. You can take advantage of unique deals that are available for you. They will help you in collecting all the required documents.

Keep Your Payments the Same Even at The Lower Rates

Payments are one of the factors that will be considered when determining whether or not you qualify for a mortgage renewal Surrey. Keep your payments the same even if the rates are lower. We have good reasons to explain why you must go through all the trouble of negotiating a lesser rate if the payments are still the same. Keeping the same monthly payment at lower rates minimizes the amortization and the period of your mortgage.

Renewing Your Mortgage With Satbir Bhullar

If you want to renew your mortgage in Surrey, you’re in the right loop! Satbir Bhullar will offer solutions that empower your decisions and keep you on the right track. We’ll ensure you receive the desired perks and reassess your journey. So, what are you waiting for? Get in touch with our experts; we’ll assist you in the best way possible!

12 Mar

Posted at 15:07h in Mortgage Broker Surrey BC

Embarking on a construction project, whether building your dream home or renovating an existing property, can be an exciting yet daunting endeavor. 

One crucial aspect of such projects is financing, and this is where construction loans come into play. If you’re in Surrey and considering undertaking a construction project, understanding the fundamentals is essential. 

In this guide, we’ll dig into the basics of construction loans Surrey, the types available, and what you need to qualify for one.

 

Types of Constructional Loans

Constructional loans come in various forms, each tailored to meet specific needs. Here are some common types:

Construction-to-Permanent 

This type of loan transitions seamlessly from the construction phase to a traditional mortgage once the project is completed. It simplifies the financing process by combining both phases into one loan.

Construction-Only 

As the name suggests, these loans cover only the project’s construction phase. Once the construction is complete, borrowers must secure permanent financing separately.

Renovation 

If you’re looking to renovate an existing property, a renovation loan could be the ideal solution. These loans provide funds to cover the costs of renovation and repairs.

Owner-Builder 

Designed for those who want to act as their general contractor, owner-builder loans offer financing for self-build projects. However, they often come with stricter qualification requirements and additional responsibilities.

 

What Do You Need to Get a Home Construction Loan?

Securing a construction loan typically requires meeting specific criteria and providing documentation demonstrating your ability to repay the loan. Here’s what lenders usually look for:

  • Good to Excellent Credit: A strong credit score is crucial when applying for a construction loan. Lenders want to ensure that you have a history of responsible financial behavior.
  • A Good Debt-to-Income (DTI) Ratio: Lenders assess your DTI ratio to determine your ability to manage additional debt. A lower DTI ratio indicates that you have sufficient income to cover your existing debts and the proposed loan payments.
  • Necessary Documentation: Be prepared to provide documentation such as detailed project plans, construction estimates, proof of income, and financial statements.

 

You Might Consider a Construction Loan If:

  • You Want More Design Flexibility: Unlike purchasing an existing home, building from scratch allows for greater customization and personalization according to your preferences.
  • You Want to Add More Later: Construction loans Surrey offer the flexibility to incorporate additional features or expand the property during construction.
  • You Want More Land: If your dream home requires a specific location or a larger plot of land, a construction loan can help finance the acquisition and development.

In Surrey, navigating the complexities of construction loans can be made easier with the assistance of a knowledgeable mortgage broker. A reputable mortgage broker in Surrey, such as Satbir Bhullar, can guide you through the process. We will help you find the right loan product and lender to suit your needs.

In A Nutshell

Construction loans are a valuable financing tool for individuals embarking on construction projects in Surrey and beyond. Whether building a new home, renovating an existing property, or undertaking a self-build project, understanding the nuances of construction loans is essential for a successful outcome. 

By familiarizing yourself with the types of construction loans available, the qualification criteria, and the role of a mortgage broker in Surrey, you can confidently navigate the journey towards turning your construction dreams into reality.