Is your Mortgage Debt too high?

Is your mortgage payment combined with you lifestyle bills restricting your choices? Have your property taxes jumped higer this year? Do you need money for simple things like hockey or piano lessons for your kids?

There may be alternatives for you to re examine how to reduce you total debt repayment thru different lender's programs.

Manulife Financial is working very strongly with their Manulife One Program. All you household expenses into one account, secured against the property, to reduce the overall borrowing costs and eliminate debt faster. Track reductions monthly, in your statements and see tangible results instantly.

Royal Bank is offering a $300 rebate to its clients with a mortgage for energy self sufficiency. Reduce your Energy Costs by making your home ( their security) a home energy savings and that frees up income to reduce other debt.

If you have some concerns or questions about what is happening in the West Toronto, Central and South Etobicoke or Mississauga real estate markets, I would be pleased to meet with you or arrange a referral to qualified professional people who can help.  

Credit crunch checklist
Here are a few tips and points to consider regarding financing, that may help closings go smoothly in a tougher credit market.

When working with buyers:

1. Have your buyers pre-approved for mortgages, not just pre-qualified.
2. Verify the source of the down payment. Ensure your client has adequate financial resources to cover closing costs.
3. Suggest that they not to take on any additional debt or change jobs until after closing.
4. Review the mortgage commitment for any conditions that may be problematic to fulfill, before waiving financing conditions.
5. Keep the time between purchase & closing date as short as possible. You do not want difficulties if the appraisal comes in lower than the purchase price.
6. If you need extra money to close, Is that Available?

When working with sellers:

1. Qualify your sellers. Have you done a Net Equity Statement with them?
2. Will the property sell at a price that will pay off all mortgages, pre-payment penalties, lines of credit, cash-back clawbacks, legal costs and real estate commissions? If not, what is the source of the funds to cover the short fall?
3. If a buyer is looking for a quick closing, have the sellers thought about where they plan to move?
4. Is the seller willing and/or in a financial position to take back a portion of the sale price as a first or second mortgage?
5. Is there an opportunity for the Seller's to have their mortgage assumed?