Lenders are offering more and more options to help you secure a mortgage.
Have you heard the good news in Real Estate Land? Happy days are pretty much here again as buyers get in the game while mortgage rates are still astonishingly low.
The clarion call of opportunity is certainly being heard loud and clear by Canadian lenders. They're getting extra-innovative with ways to help -- and thus attract -- buyers.
A prime example is TD Canada Trust, which recently began offering the services of more than 600 "mobile mortgage specialists." Just what they sound like, these financial experts cater to the needs of homebuyers whose busy lives make it tough to schedule a mortgage appointment at the bank.
"For some people, it's hard to find the time to discuss their mortgage," explains Kevin Moffatt, the lender's VP in charge of the mobile mortgage team. "We have customers with extremely hectic professional lives, customers on shift work, customers with small children... These are people with very little flexibility in their schedules, so having a mortgage expert visit them at home or at work, in the evening or even on the weekend, is a huge convenience for them."
Moffatt says they are ready and willing to meet potential mortgagees at the airport between connections; at the hospital during a patient's stay; on a golf course or even a ski hill.
In fact, one particularly keen TD Canada Trust mortgage specialist recently took the "mobile" concept literally by riding along with a busy truck driver as the big rig rolled from Edmonton to Jasper, Alberta.
Meanwhile, ING Direct's most recent mortgage innovation was concocted after the company commissioned an Angus Reid poll that produced startling results: nearly half of Canadian mortgage holders are missing the savings boat by waiting less than 30 days before their home's closing date to secure a beneficial interest rate.
Thanks to ING's new Rate Hold, which the lender claims is a unique option in this country, Canadians can easily lock in a great rate for up to 120 days without going through the hassle of a mortgage application.
A young couple buying their first home (or anyone else) could put a hold on a low fixed rate rather than risk getting slapped with an increase between the time they decide to buy and the date the deal closes. If, for example, these homebuyers chose a $200,000 mortgage at 6.96%, getting a Rate Hold 120 days in advance could mean saving about a $1,800 over a five-year term.
Similar savings are also available when renewing a mortgage.
"Securing a rate guarantee, even before you start looking for a new home or your existing mortgage comes up for renewal, is a quick and simple way to save your money on mortgage interest payments over the long term," says ING Direct VP of Lending Martin Beaudry. Rate Hold "essentially allows someone to hold a great rate without having to provide the information required during a more traditional pre-approval process."
Genworth Financial Canada is focusing on helping homeowners avoid defaulting on their mortgages due to life changes like loss of employment, marriage break-up or work disability.
The lender recently expanded its Homeowner Assistance program, which was introduced during the last recession. Among the options on offer are modification of loans or repayment schedules and even support that, for example, could enable homeowners to redesign their homes to add rental units.
Genworth also has a self-assessment tool to help homeowners take stock of their financial situations: www.homeownerassistance.ca.
