“The majority of people spend more time researching and discussing vacation packages than the mortgages on their home.”
The word Mortgage is a fusion of two equally powerful Latin words. Mort and Gage
In a literal sense mortgage means “Death Pledge” for both lender and borrower. If a borrower pays off the loan by the end of the term, the Pledge was dead. If loan is not paid off, then the borrower loses the property to the lender. This concept of mortgage originated in England when people wanted to own homes but didn’t had money to buy. It was not until 1934 when actually the modern mortgage concept was introduced. The pioneer lenders were not the banks, instead were the insurance companies.
It was 1940 when Canada has new beginning of housing. Jan 01, 1946 Central Mortgage and Housing Corporation was formed to returning war veterans. The name was changed to CMHC i.e Canada Mortgage and Home Corporation. Click the link ahead to learn more on CMHC Milestones.
In early 1900 borrower had to pay at least 50% down payment to get a mortgage. It was in 1954 when minimum down payment became 25%.
Now that you have had your history lesson and learned something new, let’s talk about Canadian mortgage services in 2018 & beyond. Despite the stigma that is attached to the word mortgage, both lenders and borrowers had benefited from them.
However, if mortgages are not approached with prudence, both the lender and borrower run the risk of losing in the short and long term.
Historically speaking, the major difference lies in the amount of the down payment. While the down payment will vary based on type of the mortgage product and your credit situation, 5% down is enough instead of 50% to own a home in Canada.
Canadian mortgage services have evolved greatly. Brand new risk mitigating strategies makes it seem difficult to get a mortgage approved. But this is not true. Upon looking deeper into mortgage services and how bank qualify borrowers.
We don’t mean Post-Menopausal Syndrome. PMS in Canadian mortgage services means “Profile Matching System” i.e. if the borrowers profile matches with the lenders, Voila! The mortgage is approved. If it does not match the banks profile then the mortgage gets declined. The triad of a credit crunch, rock bottom interest rates and the introduction of PMS, makes it difficult for lenders to stay in the market. While they are hungry for your mortgage business, they are having a difficult time matching profiles. This has led to a situation where people either cannot get a mortgage or are forced to make a number of sacrifices to get a mortgage. This is not an ideal situation.
Income alone doesn’t cut it anymore! Banks are in the business of lending money, and not in property management. PMS is the key to successfully securing a first time home buyer mortgage, mortgage refinancing and rental property mortgages in Ontario and throughout Canada.
The good news is that one of the 3 key factors which make Mortgage Delivery Guy’s services unique is its proactive approach. We empower you to reject lenders whose products do not fulfill your specific requirements.
Get started today! The only way our mortgage expert can contact you is via telephone call and an e mail. Click here and send us your contact information and we would be happy to meet with you to discuss your best mortgage options.
If you are looking to buy a home or refinance your home for quick service and immediately discuss your scenario, click the red button below and schedule your mortgage strategy session.