Seller Financing, another option to gain ownership

...when the Seller provides the Buyer a mortgage—can benefit both the Home Buyers and Home Sellers.

Seller Financing can be a useful tool in this tight credit market. It allows Sellers to move a home faster, often getting a sizable return on their investment. Buyers often benefit from less stringent qualifying and down payment requirements for a property that might otherwise be out of reach.

There's a greater chance of finding Sellers willing to take on the role of financier in today’s slower market, but they still represent only a small fraction of all Sellers. This is because a Seller Financed deal is not without its legal, financial, and logistical hurdles. By taking the right precautions and getting professional help of a qualified, licensed Mortgage Broker specializing in Seller Financed Agreements For Sale, however, Buyers and Sellers can reduce the inherent risks.

The Basics of Seller Financing

In Seller Financing, the Seller takes on the role of the Lender. Similar to a Lease-to-Own, or a Rent-to-Own, but with Seller Financing, you are paying a Principle + Interest Payment instead of a rental payment with a portion going to the deposit. The Seller extends enough credit to the Buyer for the purchase price of the home, minus any down payment (cash-to-mortgage). Both the Buyer and Seller sign an Offer to Purchase, a Financing Schedule, and an Addendum indicating the terms of the loan.Typically the interest will be at higher premium than what is currently offered at the Banks or Credit Unions, but not always.

These loans are often short term—typically 1 to 3 years. The general theory is that within a few years, the property will have gained enough in value or the Buyers' financial situation will have improved by the help of the same Mortgage Broker enough that they can refinance with a traditional lender. From the Seller's standpoint, the shorter time period is also practical—Sellers don't have the life expectancy of a mortgage lending institution or the patience to wait around for 25 to 35 years until the loan is paid off. In addition, Sellers don't want to be exposed to the risks of extending credit longer than necessary.

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Mortgage Refinance: What banks do not want you to know

The most common reasons to Refinance

Renewal:
Your mortgage amortization years are divided into 1-2-3-4-5 and even 10 years term at a time, enabling your lender to adjust interest rate to current market conditions and or simply reclaim the loan from you for various reasons, what they do not even have to disclose to you. Make sure you are using a mortgagebroker to shop the lenders for best rates and products along with the most suitable term custom fitted to your needs and not of the lenders.

Lower rate:
You should or have your broker time to time check the rates and refinance in case your broker can provide you a calculation you save money for the long term and or your needs have changed and need another product to reflect same. Nothing wrong with to cross the floor to another lender to save money, it is your money.

Need money;
You will never find cheaper money than mortgage money. As it is secured with the equity in your home you are able to borrow the funds needed against that equity. Your equity is the value between the appraised value and the existing mortgage amount.

You might have reasons to refinance when you need money for business, repair your credit, debt consolidation or simply you want to get your hands on some cash. Investing for a higher rate than is cost you a HELOC is the best way to go; you only pay interest on the portion of it, what you are using and as added value you make your mortgage payment interest portion tax deductible.

To ensure, you are making the right move, you to use an experienced mortgage broker services, because you can make more damage than good if you are not an expert. A good broker will provide you with a plan, help you the precise execution of that plan and will be there for support and advise all the way along.

What about the jobless construction workers

Jim Flaherty’s reaction to a cooling real estate market:

“Less demand, lower prices, modestly, in the housing market are much better for Canadians than a boom followed by a bust,” he said early this week. “The housing market has softened somewhat in part because of steps that I’ve taken and I’m happy about that.”
The reaction is to news of a 3.5 per cent annualized drop in the housing sector. Activity across many of the country’s major markets has also seen dramatic year-over-year declines – what Flaherty sees as the kind of controlled slowing needed to overt a more-pronounced and severe correction.
The mortgage rules revamp in July is largely to blame for that housing retraction. They point to the effects a new, lower amortization ceiling for insured mortgages has had on first-time buyers.
Far from blaming those tighter rules, Flaherty is “crediting” them for reining in a sector helping drive Canadian household debt to historic highs. “I'm all for a soft landing," he said.

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