Unlike our friends to the south who have seen their mortgage market basically implode, Canadian still are afforded considerable choice in all areas of the market.
Because of the stability of the Canadian economy, mortgage lenders continually look at different ways to dissect the market place with different lending products for different risk levels, market areas, and so on.
And with the ongoing support of Canadian Mortgage And Housing (CMHC) along with the two other national providers of insured mortgages, the benefits of home ownership can still be secured by most Canadians.
The key to any type of financing whether it be mortgage financing or something else is cash flow. If you are able to generate a regular, consistent, and predictable monthly income, then there’s a very good chance that there is a residential home mortgage program out there for you. Even where you income is not potentially consistent on a monthly basis such as is the case with the self employed mortgage applicants, there are still solid options available to you in the market.
That being said, if your credit is not up to par, you will have a more limited selection of programs to consider and the cost of financing will likely be higher as you move more towards home equity loan programs. But even then, you still are likely to have options if you have enough cash flow to service the debt which is not always going to be the case south of the border.
Even if your credit is total disarray, pushing you out of the bank and institutional programs that are geared to higher risk lending, there are still private mortgage sources to consider to at least get you started in a home and provide you with time to rebuild your credit which will then allow you to move into a lower cost form of mortgage.
If you do have some challenges in your financial and credit profile, the best things to do if you are seeking a Toronto home mortgage loan is to 1) start the process early and 2) work with an experienced mortgage broker that knows their way around the market and is on top of the different program offerings that are available.
Of course the chartered banks with their large advertising budgets and high bricks and mortar visibility command our attention and create fairly global and complete awareness of their ability and interest to finance residential home mortgages.
One of the direct benefits of intensive mass branding like the banks do is the residual feel left behind by the advertising message that what the major banks provide is not only cheaper but of higher quality than other bank or institutional lenders.
In reality there are many more non chartered banks than chartered banks by a significant multiple. Add to that trust companies, credit unions, and the caisse populaire and you have a very large group of lenders, many of which offer residential mortgage programs to their clients and the general public.
The first point to be made here is that there are lots of Toronto residential home mortgage choices out there. And with the aide of the internet, its even more so as more and more people choose to do their banking from home, not requiring a bricks and mortar location to conduct business. This is an important point in that there are many Pan Canadian lenders with national residential mortgage programs, but not a lot of localized presence. In the past, the lack of a local store front would be a large detriment to doing business in an area. But the world has changed with the web bringing the business to your door.
Because the Toronto residential mortgage market is so large and diverse, the competition also does a lot of segmenting of the market in order to specialize in a specific slice of the market in order to gain a certain amount of competitive advantage and pricing position over everyone else.
Another key point to be made is that a residential mortgage in itself is a generic product that is provided by all the different suppliers in a very similar fashion. Yes, there will be slight differences in the rates and terms among lenders, and these will also be constantly changing as mortgage lenders adjust their businesses to meet changes in the market and their own portfolios.
So not only is there a lot of choice out there, the offerings from each company are all subject to change at any time, continually changing the landscape for where the best deal may come from at any given point in time.
Market segment programs include financing for a home equity loan, higher leverage options from insured mortgages, cash availability through a home equity line of credit, and commercial residential hybrid funding for requests that require a mixed use property mortgage to name just a few.
And when the bank or institutional mortgage lending programs do not fit your situation, there are also a wide variety of private mortgage options to consider.
The end result to the consumer is choice and lots of it. The hard part is trying to figure out which home financing option is the best fit for your situation and financial requirements.
This is where it makes a great deal of sense to work with an experienced mortgage broker. For most institutional mortgage programs, the lender pays the broker fees, so you can get mortgage expertise for no cost.