Mortgages By Pam
How I Can Help with Your Mortgage
There are many circumstances that require the help of an experienced mortgage broker, so you can call me, Pam Pikkert, to help get you through the process as smoothly as possible. I make the mortgage process easy and I’ll help you find the right mortgage that fits your needs.
I have the Mortgage Solution for you
No matter your situation, I’ll be with your every step of the way
Refinancing
Refinancing your home is a smart financial strategy that can help you save money, access your equity, or reach important financial goals. Whether you want to lower your monthly payments, consolidate debt, or fund a major expense, the right refinancing solution can make a big difference.
- Access Equity: Tap into the equity of your home to fund significant expenses or investment opportunities.
- Adjust Loan Terms: Change the duration of your mortgage to either lower monthly payments or expedite the loan payoff.
- Consolidate Debt: Merge high-interest debts into a single, more manageable mortgage payment with a potentially lower interest rate.
- Lower Your Interest Rate: Secure a more favorable rate to reduce the overall cost of your loan over time.
Buying Your Next Home
Buying Your Next Home: Key Steps to a Smooth and Successful Move
Buying your next home is an exciting milestone, but the process can be more complex than your first purchase. The good news? You don’t need 20% down—you can buy with as little as 5%, even if you’ve already owned a home. You can also turn your current home into a rental, using the rental income to help with mortgage qualification. To make the transition smooth:
- Know your finances – Assess your equity, explore bridge financing, and understand your buying power.
- Plan your timing – Decide whether to sell first for certainty or buy first in a competitive market.
- Work with experts – A mortgage broker and real estate professional can help you make the best decisions.
With the right strategy, you can confidently move forward into your next home!
Investment Properties
Building Wealth with Investment Properties
Buying an investment property can be a smart way to build wealth, but the process is different from purchasing a primary residence. One key difference? You’ll need at least 20% down for a rental property, as mortgage default insurance isn’t available for these types of purchases. While the upfront cost is higher, rental properties can generate steady income and appreciate over time, making them a strong long-term investment.
- Get pre-approved – Just like with a primary home, you can get pre-approved for an investment property to understand your financing options.
- Use rental income to qualify – Lenders may factor in potential rental income when assessing your mortgage application, helping to boost your borrowing power.
- Plan for extra costs – Property management, maintenance, and potential vacancies should be factored into your budget.
With the right strategy and expert guidance, investing in real estate can be a powerful way to grow your financial future!
First Purchase
Buying your first home is an exciting milestone, but it can also feel overwhelming. Key steps like maintaining a strong credit score and saving for a down payment are essential to ensuring a smooth home-buying journey.
Steps for First-Time Home Buyers:
1- Apply for a Mortgage: Start by filling out my online application, where you’ll provide key details about your employment, income, and financial situation.
2- Gather Necessary Documents: Prepare essential paperwork, including proof of income, identification, and details on any existing financial obligations, to support your mortgage application.
3- Get Pre-Approved: Once your application and documents are submitted, I’ll provide a mortgage pre-approval letter, giving you a clear idea of your budget and strengthening your offers when house hunting.
4- Start House Hunting: With pre-approval in hand, you can confidently explore homes that fit your budget and preferences—taking your first big step toward homeownership!
Commercial Properties
My expertise as a mortgage broker extends beyond residential loans, ensuring you can achieve your business real estate goals.
Understanding Commercial Lending:
Commercial lending refers to the process of obtaining financing for business-related purposes, such as purchasing or renovating commercial real estate. Unlike residential loans, these loans are tailored to meet the diverse needs of businesses and can include various types of real estate and development projects. With extensive industry experience and a broad network of contacts, I can assist you in securing financing for purchasing a commercial building.
Mortgage Renewals
Renewing your Mortgage
Mortgage renewal is the process of renewing your loan and renegotiating the terms of your mortgage once your existing term ends, which typically happens every five years. This key period allows you to reevaluate your financial goals and potentially alter the type of mortgage (fixed versus variable rate), the amortization period, or your payment schedule.
Understanding the Renewal Process:
- Initial Steps: Begin the renewal process by filling out an application and gathering necessary documents so I can send them to potential lenders for approval, similar to the original purchase process.
- Timing: Start exploring renewal options about 120 days before your mortgage term expires to ensure ample time to secure the best rates.
- Broker Advantages: Renewing through a broker during renewal can provide access to a broad spectrum of lenders, often securing more favorable terms than staying with your existing lender.
- Cost-free Renewal: As long as you renew in line with your mortgage’s maturity date, there are no fees involved, allowing for a seamless transition without financial penalty.
Reverse Mortgage
Reverse Mortgage: What is it and How Does it Work?
A reverse mortgage is a loan designed for homeowners aged 55 and older, allowing them to access a portion of their home equity without selling their property. This type of mortgage enables homeowners to stay in their homes while receiving tax-free cash, with repayment only required when the home is sold, the owner moves out permanently, or upon their passing. To qualify, the home must be the primary residence, and at least one applicant must be 55 or older.
Key benefits of a reverse mortgage:
- Provides additional cash flow while allowing homeowners to remain in their homes.
- No regular mortgage payments required.
- Helps enhance retirement security by offering financial flexibility.
In Canada, there are three lenders that offer reverse mortgages, each with different products and eligibility criteria. If you’re considering this option, working with a mortgage professional can help you determine if it’s the right fit for your financial goals.
Credit Issues
Struggling with bad credit? Don’t worry, you’re not alone—and there are still options
For individuals with bad credit, obtaining a mortgage may seem daunting, but as a mortgage broker, I can guide you through available options and solutions. I have access to a variety of lenders who specialize in working with clients with credit challenges, offering tailored solutions such as loans with flexible terms or alternative credit assessments. In addition to securing financing, I collaborate closely with clients to devise personalized credit improvement strategies. This ensures that even if homeownership isn’t immediately possible, there is a structured plan in place to achieve your goals in the future.
Self Employment
Mortgage Solutions for Self-Employed Borrowers
For those who are self-employed, obtaining a mortgage can often feel more complex compared to their traditionally employed counterparts. While enjoying the benefits that come with self-employment, unique financial challenges arise, particularly when qualifying for a mortgage. Self-employed individuals must demonstrate consistent income and meet more rigorous lender criteria. The primary challenge is establishing income stability, yet there are effective strategies to address this.
Maintaining comprehensive financial documentation, such as detailed tax returns and statements, helps to showcase income consistency. Additionally, improving credit scores and saving for a substantial down payment can alleviate lender concerns. By engaging an experienced mortgage broker like myself, self employed borrowers will gain access to lenders who understand these distinct situations, simplifying the process of buying a home.
Newcomers to Canada
For newcomers to Canada, securing a mortgage can be a pivotal step towards establishing roots in their new country. The process might seem daunting, but understanding the steps and preparing adequately can make it more manageable.
The Mortgage Process for Newcomers:
- Eligibility: To qualify, newcomers typically need to have permanent residency status or a valid work permit, along with stable employment and a good credit history in Canada.
- Preparation: Building a Canadian credit history is crucial. Newcomers should focus on establishing credit by obtaining a credit card, paying bills on time, and maintaining a low credit utilization ratio.
- Documentation: Gather important documents such as proof of residency, employment verification, and financial statements from your home country if needed.
- Down Payment: A larger down payment can benefit newcomers, potentially reducing the interest rate or aiding qualification.
How a Mortgage Broker Can Help:
- Access to Lenders: As a broker, I have connections with various lenders who specialize in working with newcomers, offering tailored mortgage solutions.
- Guidance and Support: I provide personalized advice to help you navigate the Canadian mortgage landscape, ensuring you understand each step of the process.
- Credit Building Strategies: I assist in developing strategies to enhance your Canadian credit profile, which is vital in securing favorable mortgage terms.
By working together, we can overcome the initial hurdles and find the right mortgage solution, helping you settle successfully in your new home in Canada.
Separations and Divorce
Navigating Mortgages During Separation or Divorce: What You Need to Know
Going through a separation or divorce comes with many challenges, and navigating the mortgage process is one of them. Whether you want to keep the matrimonial home or purchase a new one, there are options available to help you move forward.
- A separation agreement is required – Lenders need a formal separation agreement outlining asset division, support payments, and financial responsibilities.
- Keeping the home – You may be able to refinance your current home to buy out your ex’s share of the equity, allowing you to stay in place.
- Qualifying income – A variety of income sources, including alimony, child support, and the Canada Child Benefit (CCB), can be used to qualify for a mortgage.
- Buying a new home – You can purchase a new home with as little as 5% down and access 30-year amortization to help manage payments.
With the right mortgage strategy, you can take the next step with confidence.
Purchase Plus Improvements
Upgrade Your New Home with Built-In Financing
Did you find the perfect home, but it needs a little work? With a Purchase Plus Improvements, you can access up to $100,000 for renovations that stay with the property. The improvement funds are held in trust until the work is complete, or they can be accessed in draws as the project progresses. Contractor quotes are required upfront, and you must stick to the planned improvements and selected companies.
Funds Added to the Purchase Price – Your down payment is based on the total cost (purchase price + improvements): 5% on the first $500,000, 10% on anything above that up to $1.5 million, and 20% for properties over $1.5 million. While owner-occupied homes can access this lower down payment structure, rental and investment properties require a minimum 20% down payment. This program allows you to finance upgrades and build equity without needing separate renovation financing.
Common Uses – Many borrowers will update kitchens or bathrooms, replace flooring, upgrade windows and doors, finish basements, install new roofing, or enhance energy efficiency with insulation or HVAC upgrades. Other popular projects include adding decks, fences, or garages, as long as the improvements are permanently attached to the property. Cosmetic upgrades like fresh paint or modernizing outdated fixtures are also common, helping buyers turn a house into their ideal home while spreading the cost over the life of the mortgage.
This is a great way to turn a ‘good’ home into your dream home!
Mortgages with Perks
More Than Just a Great Rate
Mortgages aren’t just about interest rates—many lenders sweeten the deal with perks! These perks can include warranties on major home systems like heating, plumbing, and air conditioning or even coverage for appliances. Others put cash right back in your pocket, whether it’s 3% of your mortgage amount, cashback for opening an account or covering the cost of switching lenders. Many credit unions also offer profit-sharing, allowing members to receive dividends based on the institution’s financial performance. These benefits can help reduce costs and provide added financial security, making it worthwhile to explore what different lenders have to offer.
Refinance Plus Improvements
Upgrade Your Home Using Its Future Value
A Refinance Plus Improvements mortgage lets you tap into your home’s equity based on its value after renovations are complete. Instead of borrowing against what your home is worth now, an appraiser will assess both its current value and its estimated post-renovation value, allowing you to borrow up to 80% of the improved value.
For example, if your home is currently worth $400,000 and an appraiser determines that after renovations it will be worth $500,000, you could refinance up to $400,000 (80% of the upgraded value). If you still owe $250,000 on your existing mortgage, that means you could access $150,000 for renovations.
Funds can be advanced in draws as the work progresses, ensuring you have the cash flow to keep your contractor paid and your project on track. This is a great way to finance major home upgrades, boost your property’s value, and turn your house into your dream home—all without taking on high-interest personal loans.