54036 NAT COR Digital Magazine Final - Flipbook - Page 24
TRADITIONAL VS. ALTERNATIVE
FINANCING
Traditional financing typically involves
securing a mortgage through major banks
and credit unions. While these institutions
offer stability and lower interest rates, they
often have stringent qualification criteria.
For those who don’t meet these criteria,
alternative financing can be a viable option.
Alternative financing includes options like
private lenders and mortgage investment
corporations (MICs). These sources often
cater to self-employed individuals, or those
needing flexible terms. While interest rates
can be higher, the accessibility and flexibility
of alternative financing make it an attractive
option for many homeowners.
PRIVATE LENDERS
Private lenders offer another viable route for
homeowners needing quick and flexible financing.
Unlike traditional lenders, private lenders assess
the value of the property and the equity available
rather than focusing solely on credit scores and
income. This can be particularly beneficial for
homeowners looking to leverage their home
equity for renovations or debt consolidation.
INTEREST RATE CUTS
Interest rate cuts can significantly impact your
mortgage payments. Keeping an eye on the Bank
of Canada’s interest rate announcements can help
you decide the best time to refinance or lock in a
fixed rate. Even a small reduction in interest rates
can lead to substantial savings over the life of
your mortgage.
MORTGAGE MANAGEMENT AND RENEWAL
Proper mortgage management is crucial for longterm financial health. This includes making extra
payments when possible, monitoring interest
rate trends, and considering refinancing options
periodically. Utilizing mortgage management
tools and consulting with financial advisors
can help you stay on top of your mortgage and
optimize your financial situation.
When your mortgage term ends, it’s time to
consider renewal options. Mortgage renewal
provides an opportunity to renegotiate terms,
potentially securing a better interest rate or more
favorable conditions. It’s essential to start this
process early to avoid any last-minute decisions.
Shopping around and comparing offers from
different lenders, including private ones,
can lead to better deals.
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