Mortgages

house

At Norman Financial LTD, we offer two main mortgages although were always more than willing to help you find the correct mortgage, please contact us here and we will get you started.

Below you will find the various other options that we are able to assist you with.

First Mortgagesr
Second Mortgages
First Time Buyer
Repeat Buyer
Re-financing
Mortgage Renewals
Pre-Approved Mortgages
Conventional Mortgage (less than 80% loan to value)
High-Ratio Mortgage - CMHC Insured / GE Capital Insured
First Mortgages
Open Mortgages
Closed Mortgages
Fixed-Rate Mortgages
The Adjustable Rate Mortgage (A.R.M.)
Secured Lines of Credit
Equity Mortgages
Multiple Term Mortgages
The 6 Month Convertible Mortgage
All-Inclusive-Mortgage (A.I.M.)
Bridge Financing

 

First Mortgages

Norman Financial Ltd. can help you get a mortgage even if you have been
faced with financial hardships:

-Self Employed
-Un-verified income
-Individuals with past or current credit issues
-Individuals facing Financial Distress, divorce or medical needs


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Residential Second Mortgages

A Second Mortgage can help with your special needs to: consolidate debts to improve your cash flow. Turn your home equity into cash for renovations, vacations, weddings, or education. Turn your home equity into Investments that earn a return.


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First Time Buyer

So you made the decision about the type of home you wish to purchase, the next step is to contact Norman Financial Ltd. to determine how much you can afford to spend.

We help you get pre-qualified for a mortgage. Contact a Norman Financial Ltd. now. Call using our Canada wide toll-free number or call us 905-370-9739. We own the website www.cashisking.ca for a reason Norman Financial Ltd. can get you the money that you need.


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Repeat Buyer

Avoid the hassles and save your valuable time. Norman Financial Ltd. will do all the work for you and get you a better rate and product to suit your needs. Get a Norman Financial Ltd. Agent working for you.

You may already know the ropes, but things may have changed since you were last in the mortgage market. Here's an update of all the latest mortgage and home buying information.

 

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Refinancing

Renewing or increasing your mortgage, to consolidate non-mortgage debt, to finance improvements to your home. Let a Norman Financial Ltd. Mortgage agent help you negotiate with your existing lender or switch to a new lender who will give you better terms. There are many factors to consider when refinancing your mortgage.

 

Taking out equity in your home
Consolidate other debt
Renovations & home improvements
Consolidating existing financing
Combining mortgages
Breaking your closed mortgage to transfer to a new lender - all these
are possible options.

 

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Renewals

Avoid higher rates — avoid unsuitable products and terms — don't bepart of the masses! Don’t just sign that bank mortgage renewal form. is your Mortgage coming up for renewal... Don't be too hasty in just signing the bank renewal form — a higher rate and a mortgage product that might not be best suited to their interests.

Let a Norman Financial Ltd.. agent do all the work for you — we will find you the best possible rate and product to suit your interests.

You may want to renew/switch your mortgage to another lender. Most lenders now offer "no cost or low cost switches" and it's a smart way to reduce your interest costs. Norman Financial Ltd. can take care of all the details for you and help you negotiate with your existing lender or find a new lender who will give you very competitive rates. Get a Norman Financial Ltd. agent working for you today.

 

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Pre-Approved Mortgage

A Pre-Approved mortgage is a Free and No-Obligation program that lets you know before you go looking for your home or before you sign an offer to purchase.

The Pre-Approval tells you how much you can afford to borrow based on your qualification and personal credit rating.

We'll arrange the most competitive rates with the longest rate guarantee period that goes up to 120 days - if rates go higher, your rate will not be affected, and if rates go lower, you get the lower rate.

This protection option has saved thousands of dollars for many people who obtained a pre-approval. In most purchases, the mortgage is left to the very end, but with our Online Pre-Approval or by simply e-mailing us, we can take care of this important process within hours.

Once you are Pre-Approved, you can confidently negotiate an offer on a home. A seller also prefers to negotiate an offer of a purchaser who has been pre-approved.

With more lenders, lower rates, and no-cost, no-obligation, make us your choice for your pre-approval.

 

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Conventional Mortgage

A conventional mortgage is a loan that does not exceed 80% of the purchase price or appraised value of the home, whichever is less.

This type of mortgage does not have to be insured against default.

 

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High-Ratio Mortgage - CMHC Insured / GE Capital Insured

A high-ratio mortgage is a loan that is above 80% and up to 95% of the purchase price or appraised value of the home, whichever is less.

These mortgages must be insured against loss by Canada Mortgage and Housing Corporation (CMHC), a Federal Government Corporation, or GE Capital, a private insurer. The premiums can be added to the mortgage amount or paid at closing. For a quote on the current rates, please contact us.

If you obtained an insured mortgage after April 1'st, 1996, the premium you paid on the mortgage is now portable to another property.

NOTE: This insurance is for the benefit of the lender against default. It is very costly and there is another way we can arrange a mortgage for you with a low down payment. That is with a 1st mortgage and a 2nd mortgage.

For your unique situation, it may be better to consider this option. Banks, on the other hand, cannot offer you this option, as they cannot provide secondary financing over 80% of the purchase price or value of the property.

 

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First Mortgages

A First mortgage is the first debt registered against a property that is secured by a first "charge" on the property.

If a default on the mortgage occurs, the first lender has first right on the property to recover the outstanding principal and interest costs, and any other costs incurred during the process.

 

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Second Mortgages:

A second mortgage is a debt registered after a first mortgage has been registered. In most cases, the interest charged on the second is higher than the first, reflecting the higher risk to the lender, but over a short term, still more cost effective than paying the high cost of the CMHC/GE Capital insurance premium. They can be used to finance up to 90% of the purchase price or value of the home.

 

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Open Mortgages

An open mortgage allows you the flexibility to repay the mortgage at any time without penalty.

Open mortgages are available in shorter terms, 6 months or 1 year only, and the interest rate is higher than closed mortgages.

Open Mortgages are normally chosen if you are thinking of selling your home, or if you are expecting to pay off the whole mortgage from the sale of another property, or an inheritance, or other source of funds.

 

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Closed Mortgages

A closed mortgage offers the security of fixed payments for terms from 6 months to 10 years. The interest rates are considerably lower than open. Nowadays,

Closed Mortgages often offer as much as 20% prepayment of the original principal and that is more than most of us can hope to prepay on a yearly basis. If one wanted to pay off the full mortgage prior to the maturity, a penalty would be charged to break that mortgage. The penalty is usually 3 months interest or a rate differential charge.

 

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Fixed-Rate Mortgages

With a fixed-rate mortgage, the interest rate is set for the term of the mortgage so that the monthly payment of principal and interest remains the same throughout the term.

Regardless of whether rates move up or down, you know exactly how much your payments will be and this simplifies your personal budgeting.

In a low rate climate, it is a good idea to take a longer term, fixed-rate mortgage for protection from upward fluctuations in interest rates.

 

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The Adjustable Rate Mortgage (A.R.M.)

The Adjustable Rate Mortgage (A.R.M.) provides a lot of flexibility, especially when interest rates are on their way down.

The rate is based on a Canadian Bank Prime rate and can be adjusted monthly to reflect current rates. Typically, the mortgage payments remain constant, but the ratio between principal and interest fluctuates.

When interest rates are falling, you pay less interest and more principal. If rates are rising, you pay more interest and less principal, and if they rise substantially, the original payment may not cover both the interest and principal.

Any portion not paid is still owed, or you may be asked to increase your monthly payment.

The ARM mortgage is usually fully convertible to a fixed rate mortgage at any time, usually without any cost to you.

While banks traditionally offer variable mortgages up to 80% of the purchase price or the value of the home, we can go up to 90% with this product.

 

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Secured Lines of Credit

Use the equity in your home to purchase investments (where interest costs would be deductible against the earned income), finance home renovations, buy a car, or any other reasonable needs, with rates as low as prime.

Secured Lines of Credit can be arranged up to 80% of the purchase price or value of the home, and should you need more, we can arrange another secured line of credit as a Second mortgage up to 90%.

Accessing the available credit is as simple as writing a cheque, or using the issuedcredit and/or debit card.

You do not have to draw the money until you need it, and once you make a withdrawal, you can pay of your balance at any time or make monthly payments as low as interest only. As you pay down the balance, you have more available credit (revolving credit).

Normal legal and appraisal fees are applicable. From time to time, there are promotions where a lender will cover part or all of these costs.

 

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Equity Mortgages

Equity Mortgages are mortgages that are approved based on the equity of the home (market value minus the mortgage amount).

They can be as high as 80% of the purchase price or value of the property and if more is required, we can look at a small second mortgage.

These are generally offered to applicants that do not meet the normal income and/or credit qualifying guidelines.

You may have little or no income verification, be self-employed, and/or your credit rating may be less-than-perfect.

 

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Multiple Term Mortgages

If you wanted the lower rates of a short-term mortgage but wanted the security of a long term, why not choose both?

You can split your mortgage into as many as 5 parts, all having different terms, rates, and amortizations, but one total monthly payment. This way, you are spreading the risk.

 

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The 6 Month Convertible Mortgage

When rates are on their way down, or if you feel that they will in the near future, a 6-month convertible mortgage offers you the short-term commitment of fixed payments, with an added advantage that while within the term, the mortgage is fully convertible to a longer term from 1 year to 10 years.

At the end of the 6-month period, the mortgage becomes fully open, where one can renew with the existing lender or transfer to another lender. Even though it is offered at many financial institutions, there are differences from one to the next.

 

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All-Inclusive-Mortgage (A.I.M.)

The AIM mortgage takes care of everything automatically. For Purchases, it includes: Solicitor's legal fees and disbursements to close the purchase and mortgage; Title Insurance for clients; CMHC application fee or Appraisal fee; 1% Cash-Back to cover Land Transfer Tax; Registration of Deed and Mortgage.

For Refinances, it includes: Legal fees and standard disbursements to prepare and close the mortgage; Title Insurance, CMHC application fee or appraisal fee; 1% Cash-Back; Registration of new first mortgage; Registration of discharge of existing first and second mortgage.

The minimum term available is a 5 year term.

 

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Bridge Financing

Bridge financing refers to a special, short-term loan needed to cover the time gap when two properties, both firm sales, are involved and the closing dates don't match.

The property being purchased closes before the one that was sold.

There is a small set-up fee charged by the lender to have the bridge loan arranged, plus the cost of the interest as now you are carrying both properties for a short time.

The rate charged on the bridge loan is about 3-4% above the bank's rate.

 

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