June 27, 2022

Types of Mortgage Loans in Canada

Buying a home is usually the most expensive purchase a person makes. There’s a lot to consider, from lifestyle choices to financing. Your home is where your family lives and spends time, but it’s also the financial backbone of your investment portfolio.

Real estate appreciates considerably, and unlike most other sales, homeowners don’t get charged tax when the time finally comes to sell their property. It’s impossible to be too informed when selecting a home.

Burke Financial is here to do the heavy lifting when it comes to financing your home, which doesn’t have to be complicated or burdensome when you have experienced professionals on your side. Different financial tools exist to help you afford your home in whatever way is most comfortable.

Let’s look now at the different types of mortgage loans available in Canada.

Home Equity Loan

Homeowners know that their home’s rising equity will result in a payday one day in the future, but they don’t always have that much time to wait. With life comes major expenses, like cars, education, or even renovating your home. The longer you’ve owned your home, the more equity you’ve built up — a home equity loan is designed to let you access this value today.

Your current level of debt, income, or credit history doesn’t matter. The mortgage brokers at Burke Financial ensure that our clients can unlock their home’s equity, usually up to 85%.

Homeowners are free to use the money towards whatever they want. Using a home equity loan to reinvest in your home is an excellent way to leverage its existing value to grow it further still. Whether you need a home equity loan to rehabilitate your finances or help unlock capital for a necessary expense, Burke Financial can show you the simplest and most effective path.

Bridge Loans

Sometimes people need a little financial support while they’re between homes, especially if their existing home hasn’t sold by the time the deal on the new one closes. Affording one home is difficult enough, never mind two!

Bridge loans are temporary loans secured by your existing home that acts as a stepping-stone towards the next phase of homeownership. They are typically three to six months long, though they can be increased to a year if needed. A bridge loan’s terms usually reflect the brief time the assistance is required.

To qualify, a firm sale agreement for your existing home must be in place. That’s the source of your collateral, so it needs to be reliable.

Bridge loans are vital because in many Ontario cities, especially Toronto and the GTA, bidding wars are all too common. If your dream home appears on the market, you need to be ready to act, as it may get sold before your existing home sells.

While there are signs that Toronto’s property market is cooling, as the region’s real estate board reported a sales drop of 41% since last year and 27% from the prior month, the drop is relative. Both things can still be true: competition for a home is still very stiff, even if it’s less stiff than it was recently.

No two homeowners have the same financial circumstances or life goals, and Burke Financial specializes in bridge loans that meet your needs and wants, whatever they may be. When you finally sell your home, the proceeds can go towards paying off the loan and any interest accrued over the term. We have developed close relationships with many bridge loan lenders and are proud to offer personalized, high-level services.

We know that bridge loans need to be quick and hurdle-free, so you can respond to the market effectively without having your hands tied behind your back. After all, you’ve built up equity in your home over the years. It’s only right that you can leverage it freely to achieve your life goals.

If you’ve been turned away from a bank due to low credit or incurred debts, Burke Financial is here to give you the financial support you deserve.

Second Mortgages

The financial position of most homeowners has changed a lot over the years, and so do marker conditions. You may find yourself wanting to revisit your original mortgage for various reasons. Perhaps you can get more favourable terms, or maybe you need to free up capital for a big expenditure.

Burke Financial specializes in connecting clients with second mortgage lenders that can help you attain your goals. Of course, you’re free to stick with your original lender if you prefer. If your credit needs a boost, a second mortgage can help save you over $1,000 per month.

Whether you’re looking to stabilize your financial footing or unlock equity in your home to free up capital for things like a renovation, call Burke Financial for mortgage refinancing in Toronto that delivers expert, personalized services.

Debt Consolidation Loans

Coming up with the money is the hardest thing about paying back a loan, but sometimes having numerous, unwieldy loans complicates an already stressful situation. Staying ahead of monthly payments gets challenging, and the ones that slip through the cracks only worsen your credit score.

Many people struggle with finances for understandable reasons, so there’s nothing to feel bad or guilty about. Feeling overwhelmed by debt is a natural response, but it’s important to remember that there is always a solution to your problems. You just need professional help finding it.

As a top-rated firm accredited by the Better Business Bureau, Burke Financial has already helped thousands of Canadians make informed debt relief decisions. If you need Ontario debt consolidation loans or another financial strategy to stabilize your economic footing, don’t hesitate to call Burke Financial today.

Buying a home is an exciting time for multiple reasons. You have a new space to live in, make your own and create new memories. Owning property can also come with difficulties and stresses. It’s crucial to understand that no matter your debt or financial situation, there is always help.

Connect with the mortgage brokers at Burke Financial today to get the mortgage support Canadians need.


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