Could a New Phone Scam Trick You?

The communities of Greater Toronto Area has fallen victim to some scams lately as recently reported by Insauga, with the neighbourhoods of Brampton and Mississauga getting much of the scam attacks. The thing with this scam attacks is that they can target even the most unsuspecting of victims, and can happen digitally because of advancements in technology.

Scam and Technology

Not long ago, contracts and purchases had to be made in person for a transaction to push through. Things are very different now as technology had made it possible to sign a contract or authorize a purchase just by voice recognition. ‘Yes!’ is not something you simply say over the phone any more as scammers have found a way to use voice recordings to authorize financial transactions and confirm a purchase in your name.

This is because the act of saying “yes” can be construed to mean the same as “I Agree” or “I Accept” by some websites or when completing certain online transactions. Banks and insurance companies sometimes use the same confirmation when authorizing money transfers and account changes via mobile device or phone call.

This is certainly alarming and it goes without saying that you won’t want to fall victim to this. To help you avoid being a victim of this new phone scam, we’ve compiled a list of safety measures in the next section.

Avoid Falling Victim to a New Phone Scam

While it is best to do financial transactions and account changes in person, it is still possible to be targeted for a phone scam. Minimize your risk by observing the following precautions.

Avoid picking up calls from unknown numbers

Do you know that by just picking up the call, you are signaling to criminals that they can use your details for scams? Scammers may call you telling you that you won a trip, or that a loved one is in the hospital and they need your details. It is easy to be emotional and throw common sense out the window when you are excited or worried so to avoid being victimized by this ploy, simply do not answer calls from unknown locations.

Think about it, if something is really important, the caller will contact you via other means or perhaps leave a voicemail…or even call again. Scammers don’t usually call the same number again and again because they want to move on as fast as possible to their next possible victim.

Exercise caution and skepticism when taking calls from unknown sources

Be extra careful when the caller asks you questions that require a Yes or No answer (such as “is this ___?” or “are you home?”). When you picked up a call that asked something like that and you don’t know who is calling, it is better to reply with another question such as “who is calling, please? or “may I know why you are asking that?”. This usually throws off the scammer and shows that you’re not someone easily manipulated.

Don’t give personal information to strangers

Whether they ask for your personal information or someone you know, just refuse to give personal information. No matter if they claim to be legitimate companies such as your bank or insurance, give an excuse and hang-up. You can always call the company (do not use the call back feature, dial from scratch) to verify.

Not sure if you’ve already been targeted for a phone scam? Our private investigation services may help. Contact us at Haywood Hunt at your earliest convenience to inquire for your free initial consultation.

8 Features That Can Make Your House Surprisingly Harder to Sell

We usually think that the more features a house has and the more amenities are nearby, the easier it would be to sell the house later on, right? Well, the thing is, the features and amenities you like may be the exact opposite of what others prefer. Here are some of the most common features and amenities that are unappealing to some home buyers to help you in deciding your purchase and set your expectations if you are selling.  

A Busy Location

Some love the convenience of having stores, restaurants, and cafes just outside the door but some prefer a more quiet and ‘slow’ location. Know too that homes on busy streets usually have less value compared to a similar home in an interior street. This is something to think over if you’re buying now.

The Size of Your Yard

Some people just don’t want anything to do with maintaining a yard, period. Some won’t want to move in unless the yard is big enough for big parties or to provide a substantial distance away from the neighbours.. It’s just near impossible to find the perfect balance.

Bedroom Location

This is a big factor when purchasing a home. There are people who would balk out of buying a beautiful dream home just because one of the bedrooms is downstairs. The stakes go higher when it is the master’s bedroom that is in an unusual location, such as next to the kitchen. Generally speaking though, those in their senior years or near retirement usually want a one story home or for the bedrooms to be downstairs.

A School Just a Few Steps Away

Having a school practically next door is heaven-sent for some but the very definition of a nightmare for other people. You may love the idea of walking your children to school but for someone who has no children, the idea of having children coming and going on the street right next to their house isn’t something they’d want. Not to mention the school buses and vehicles of parents dropping off and picking up kids for most of the year.

Fancy Renovations

A granite kitchen or beautifully landscaped lawn can make buyers think that a home is a pain to maintain, more so if not situated in an affluent neighbourhood.

Having Tile Flooring

Let’s face it, tile flooring isn’t the easiest to maintain. They are also difficult to remove, replace, and/or repair. Note too that tile patterns you love might be off-putting for some people. Hardwood is often the safest bet.

Having a Swimming Pool

A swimming pool might be something you’ve always dreamed of having but someone who hates swimming or don’t want the cost of maintaining a pool will definitely not be into it. You may even have to take a loss when it’s time to sell a home that has a pool.

A Deck or A Patio

It all boils down to maintenance being an issue. If you love being out in the yard while still being comfortable then, having a patio or a deck is something you love, but some would think that having them is just an inconvenience that they will be forced to take when buying a home. Just like having a pool, this might shave a few thousands off your home’s selling price.

With spring still more than a season away, selling your Oakville home may not be as easy more so in the upcoming weeks and months. Let our outstanding agents help you! Contact us today!

Home Equity Facts: What You Need to Know

Homeowners refer to their hone equity as wealth, but what does it have to do with building your net worth? What is home equity and how does it contribute to your wealth?

What is Home Equity?

Home equity is the value that you have built up in your home. If you still have some mortgage left to pay, it is the current market value of your home minus all the money you still owe.

Because of the above, your home equity is very much like a type of bond because it locks up your money with your property. There are ways to tap your home equity; however, note that the longer you let it sit (without real estate depreciation), the more it can create more wealth for you as your paid for percentage of your home increases.

Building home equity is a slow process unless there is a sudden increase of real estate prices in your area because of housing demand or some other factor. Note too that it can suddenly fall if home in your area lose their marketability. This is why it would be wise to be picky when it comes to choosing a property’s location.

Significance of Your Home Equity

Your home equity can be tapped once you meet the requirements set by lending institutions, companies, or private lenders. It serves as a financial resource that grows and increases value over time as  the homeowner continues to pay mortgage payments.

In a way, you can look at home equity as some sort of a forced savings account. This is because building equity on a home isn’t like spending money on material things like cars that lose value while you are still paying for it. If your property is in a good location, then you can build up quite a lot of wealth in home equity.

How to Grow Your Home Equity

Growing your wealth through home equity takes time. The longer you stay in your home and keep up to date with mortgage payments, the bigger your home equity will be (unless you live in a housing bubble). Once your mortgage has been paid for, your equity continues to grow with the property’s value.

Using Your Home Equity

You can tap your equity wealth by applying for a home equity loan. By doing so, you will be borrowing money against the value you’ve built up. You can choose to go for a home equity loan that will allow you to get money in a lump sum, or choose a HELOC or a home equity line of credit. A HELOC will let you take out as much or as little as you wish within set limits.

Note that a HELOC and a home equity loan are far from the same although they might sound similar. Both have pros and cons that should be weighed carefully depending on your needs and means.

Want to know more about how you can tap into your home equity? Contact us at Homebase Mortgages so we can assist you in home equity loan application.

Choosing Between A Line Of Credit and A Second Mortgage

Choosing between a second mortgage and a line of credit is a big decision more so now that most of an average person’s wealth is tied up to their home in the form of home equity.

There are several reasons for the above, such as people using up all their extra money to pay their mortgage so they can fully own their home sooner. It could also be the sudden boom of real estate in a certain area. Having your wealth tied up to your home as equity can make moving quite difficult. What can you do if your current home is no longer meeting your needs then? Well, you can still try to move (and have a very challenging time bidding on much more expensive homes) or you can renovate.

Making Your Home’s Equity Work for You

The good thing with renovating is that you can use your home equity to work for you. No need to dip into your savings if you can get approved for a home equity loan so you can pay for the construction bills. Sounds great, right? Yes, this could be great; but you have to know the differences between the various  ways of tapping into your home’s equity to ensure that you won’t be biting off more than you can chew.

You see, home equity loans come in two types, the increasingly popular home equity line of credit (HELOC) and the more conventional second mortgage.

Why Get a Second Mortgage

A second mortgage will give you access to a lump sum of cash that you can use according to your needs. You won’t be able to get another loan until your second mortgage has been paid off over a fixed period of time but it gives you immediate freedom when it comes to accessing funds.

A second mortgage is more conservative and predictable than a HELOC. It allows you to plan expenses better as the specific amount you need to pay for a specified amount of time is stipulated. Although the interest rate is higher than that of a HELOC, a second mortgage is the better choice for those who want no surprises when it comes to future payments.

Because of the nature of the second mortgage, it offers less temptations in terms of spending. It is a great option for a single large expense such as buying a second property, setting up a business, or funding an extensive home renovation.

Why Get a Home Equity Loan Line of Credit

A home equity loan line of credit is better if you want more freedom with how much of your equity you can withdraw at a given time. It is more flexible than a second mortgage and allows you to reuse your loan for several projects and/or emergencies.

You have more flexibility in terms of payments for a HELOC as well. You can choose to just pay the interest for whatever amount you borrow at a certain month. The downside is that if you are a poor financial planner, you might end up dipping into your line of credit for expenses you don’t really need. You might end up having trouble paying because the HELOC’s interest rate will change with the market together with whatever amount you’ve used up.

A home equity line of credit is a great option if you have periodic semi-large expenses such as medical bills or tuition fee payments.

Ready to apply for a second mortgage or get a line of credit? Contact us and our mortgage brokers will help you get approval!

Reasons to Get a Second Mortgage

It seems that getting a second mortgage is very popular these days, but why are people getting a second mortgage, to begin with? Is it a safe or a wise decision to do it when you’re not yet paid with your first mortgage? We have answers (and more) below!

First, What is a Second Mortgage?

Investopedia defines a second mortgage as a subordinate mortgage that is approved while the homeowner has another mortgage in effect.

This type of mortgage is backed by your home; which is why it is required that you have some equity before you can apply for it. By applying for a second mortgage, you’ll be able to refinance up to 85% of your home’s value, freeing fund to use for other purposes.

It is the freeing of some funds that is the main reason why most people apply for a second mortgage. Once they are approved, they usually use it for the following:

For Investing

It is no secret that you need money to make more money. In the case of investments, the bigger capital you put in it, the larger the gains that you can get.

For Further Schooling or Self Investment

Getting ahead in life for most people means needing to have the credentials for some positions, hence the need for further schooling. In some instances it is needed for a career change or just to be a better version of one’s self. Unfortunately school is not cheap and requires a significant investment on your part. If you qualify for a loan and have the means to pay the future monthly payments, why not go for it?

For Investing in a Second Property

Buying a second property for a vacation home, a rental, or an investment property requires some capital as most banks ask for a minimum 20% downpayment. Tapping into the equity of a home you already own allows you to come up with the funds for this quickly. By doing this, you van effectively grow your assets as long as you won’t default on your monthly payments.

For Paying Debts with a High Interest Rate

Credit card companies can charge as high as 30% interest on your balance. This is a lot of money that simply goes to the banks, burying you deeper in debt. By taking a second mortgage to pay loans like this, you can pay your way out of debt faster.

For Funding a House Renovation

Spring is just a few months away or perhaps you will want to get renovations done before winter. You will need a substantial amount of money to make this possible. Taking a personal loan for this purpose is usually met with a rejection but with a second mortgage, you can get what needs to be done completed by the time you want it. This is especially handy for repairs and renovations that preserve the home such as a roof replacement.

How to Get a Second Mortgage?

Getting a second mortgage is not as challenging as most may think more so if you get the help of a licensed mortgage broker. Our mortgage professionals at Mortgage Central Nationwide will help you throughout the process of mortgage application until you finally qualify for a loan. We will ensure that your mortgage will have the lowest possible interest rate and that the terms will be exactly what you can manage so you won’t fall behind on your monthly payments. Simply contact us at your earliest convenience.

New Mortgage Regulations To Be Announced

New Mortgage Regulations To Be Announced

Risks of high real estate prices and household debt will be addressed by the new OFSI residential mortgage lending guideline updates.

Mortgage Updates

Some of the risks that are part of partaking in the mortgage market will become significantly lower when tighter mortgage lending rules are implemented with the oncoming stricter regulations. The updates will be finalized by the end of this month, said the federal financial regulator.

The new updates will come in effect 2 to 3 months after the final changes to the residential mortgage lending guidelines or B-20 of the Office of the Superintendent of Financial Institutions (OSFI). This was shared in a speech at Economic Club of Canada in Toronto by OSFI head Jeremy Budin.

The superintendent shared that the majority of changes will be quite similar to what was proposed in July, which includes a stress test for uninsured mortgages and prohibitions on co-lending arrangements that aim or seem to circumvent regulator requirements.

Budin says that they are doing this because they plan to act before lending risks become actual problems.

New Mortgage Stress Test

If implemented, the stress test will mean that homeowners will have to prove that they have the means or capability to continue making payments should interest rates increase. The stress test include those who were not required mortgage insurance, to begin with, and those who have a downpayment of 20% or more.

Rudin’s statements came after the Bank of Canada hiked up their interest rates twice this summer amidst unexpectedly strong economic numbers. He told reporters that the upcoming changes are to help provide support to the lending system as nobody can predict what will happen to house prices in the future.

Crackdown on Co-Lending

Budin said that the OSFI’s crackdown on bundled or co-lending mortgages (those mortgages wherein unregulated providers team up with federally regulated lenders to finance a property) is geared at making sure that financial institutions stick to rules that specify how much they can lend.

He added that the system needs to attain more integrity but that he also acknowledges that the changes to rules may push those thinking of buying a home to use riskier financing options, for instance, shadow banking. He further said that they recognize the fact that some lending activities might move outside the federal sphere but that does not stop them from acting on their responsibilities and mandate.

Safety Measures?

The more limiting lending rules by the banking regulator came into fruition after Ontario government chose to implement some changes in April in an effort to cool down the housing market. They’ve implemented a foreign buyers tax similar to what was implemented in Vancouver for the same purpose.

Note that the latest figures from the Real Estate Board of Greater Vancouver show that home sales in September of this year is higher than that of last year and that the home price index is up by 10.9% compared to the same period a year ago.

Worried about your home loan application because of this update? We can help! Contact us today for assistance and more information on how we can give that to you.