Table of Contents
If you are looking for the best rates on your mortgage in the Midland and Penetanguishene area, you have come to the right place.
At The Mortgage Wellness Group we offer a convenient mortgage solution which means we come to you, when it suits you – no office appointments or time off work!
Mortgage Broker in Midland
At The Mortgage Wellness Group we work for people like you in the Midland Ontario area. As a mortgage brokerage we have the opportunity and flexibility to look around to help find you the very best mortgage option fitted to your precise requirements. In contrast to the big banks who have minimal mortgage products available to you, we have access to many lenders allowing us to help get you the very best and most affordable mortgage rates in the Midland, Barrie and Orillia areas.
To talk about your personal needs please call me at 705-717-5598 or use the contact form below.
Mortgage Brokers in the Midland area:
- The Mortgage Wellness Group – Michael Curry
- The Mortgage Centre
255 King St., Midland.
- Mortgage Intelligence
338 King St., Midland.
- Dominion Lending Ctr
323 Midland Ave., Midland.
- We Do Mortgages
443 Elizabeth St. Midland.
What is a mortgage broker?
A mortgage broker is a licensed mortgage professional who can tell you what mortgage products are available from banks and lenders across Canada. They will also advise you through the mortgage process. Mortgage brokers are also able to pass volume discounts directly on to you because of the high quantities of mortgage products they acquire.
Mortgage brokers are an origination service, meaning that the mortgage broker originates your mortgage financing for you, but a bank or financial institution provides the money and services your mortgage after the closing.
What is the difference between a mortgage broker and a mortgage agent?
From a client’s perspective there is no difference between brokers and agents. Mortgage brokers have taken a separate course so that they can hire Mortgage agents to work for them. Mortgage agents have to work under the license of a principal mortgage broker. The brokerage is accountable for the agents’, and how they conduct their business.
How are mortgage brokers paid?
Their commission is paid by the bank or lender providing the mortgage product based on how much money the consumer borrows. Mortgage brokers are typically not compensated on the interest the bank makes, so they do not receive a higher commission if the client chooses a higher rate. The commission generally works out to an average of 0.8% of the mortgage amount.
What is a fixed mortgage rate?
Fixed means your interest rate and regular payments will be the same for the duration of your mortgage term, whether rates rise or fall. It offers you stability and the least financial anxiety. But if interest rates drop significantly, you may be stuck paying a higher rate for the duration of your term, depending on the flexibility and features of your mortgage.
What is a variable mortgage rate?
Your mortgage payments will go up or down with the fluctuations in the prime rate, which is the market interest rate. The danger here is that a significant increase in the ‘prime rate’ increases your interest payable as well. But if it decreases, you will pay less.
What is better,fixed or variable?
While over 60 percent of Canadians opted for a fixed mortgage rate in 2011, variable rates tend to be cheaper over time. Conversely, you may sleep better knowing you’re not subject to interest rate fluctuations. Making the right choice depends largely on the current rates at the time you are taking out your mortgage. When interest rates are low and aren’t expected to drop further, locking into a fixed rate may be your best option. However, if experts are projecting that interest rates may fall, you are probably better off with a variable rate, especially if there is a significant difference between the fixed and variable rates.
What is a closed mortgage rate?
A closed mortgage can be fixed or variable. Closed mortgage rates are popular because they are lower than open mortgages rates but unlike an open mortgage, you’re restricted on how much principal you can pay down annually and there will be a penalty to pay a closed mortgage out early. Terms range from six months to 10 years. Despite their low rates and relative stability, there are disadvantages so read the fine print before signing. Some banks have introduced fully closed mortgages where during the term, other than an arms-length sale. The sale can not be to a friend or relative.
What is an open mortgage rate?
An open mortgage can also be fixed or variable. The interest rate will be higher than for a closed mortgage but it is more flexible. Generally, you can pay an open mortgage off anytime or make additional payments without penalties. Terms range from six months to five years so you can not lock in for as long as a closed mortgage. If you want to get rid of your mortgage quickly, or think you may be selling or moving in the near future, this is a good option.
Why are mortgage rates so different?
Rates vary according to institutions. All of the banks have completely different products which is why their pricing is different. The price you pay depends on what features you want on that mortgage, mainly prepayment features. The ability to give additional lump sums of money as often as you can is important because it all goes to the principal. Discounted rate mortgages often have limited prepayment features which are suitable for most people.
What is CMHC?
Canada Mortgage and Housing Corporation (CMHC) is a Crown corporation that mainly provides mortgage loan insurance to residential home buyers. It was originally set up in 1946 to arrange post-war housing for veterans. Today it helps Canadians who can’t easily afford buying a house through their mortgage default insurance program.
What is mortgage default insurance?
It is a type of mortgage insurance that’s mandatory in Canada if your down payment for a residential property is less than 20 per cent. The major provider of this insurance is the Canada Mortgage and Housing Corporation.
The insurance costs you between 1.75 per cent to 2.95 per cent of your mortgage amount and you have to buy and pay for this insurance on top of your mortgage. It protects the banks and the money lenders if a home owner defaults on their mortgage but does not protect the homeowner. However, lenders do offer lower mortgage rates because their risk is decreased.
Mortgage Broker Midland Tips:
If you are in the marketplace for a new home, there is a good chance you are also searching for a mortgage. This can be a daunting task as it is most likely the largest financial purchase you may ever make. A mortgage broker can help you understand the mortgage options available and how they differ. Below are some of the questions you should ask your mortgage broker, or at least be thinking about.
How much can I really afford to pay
Generally your total housing costs, including mortgage principal, interest, heating and taxes should not go beyond thirty two per cent of your gross monthly income. Your total debt load, including your home costs and other debts such as credit cards and car loans, should not exceed 40 per cent of your gross monthly income. A mortgage broker looks at your current sources of income and credit report to help you figure out what type of home you can afford.
What you should take into account for the future
According to research conducted by Genworth Canada, roughly seventy per cent of Canadians would be troubled about paying their mortgage if interest rates were to rise or job loss even if only temporary. What you can afford today might not be the most practical choice in years to come. Will you still be able to make payments if you factor the costs of parental leave and daycare into your monthly budget? What if your job situation changes or your interest rates rise.
What type of mortgage should you consider
Fixed and variable interest rate mortgages are the two most popular options. A fixed interest rate is set when you sign for the mortgage and it will not adjust for the whole term. A variable rate mortgage will change according to market interest rates.
How much of a down payment do you need
Many first-time home buyers assume they need to make a large down payment in order to get the best mortgage rate, but that is not the case. Mortgage insurance products let first-timers put as little as five percent down and still get the same competitive mortgage rates as those who put down twenty per cent or more. Your mortgage broker can help you determine how much of a down payment you will need to get the home you want while still protecting your budget over the longer term.
If you are looking for more information on a mortgage in the Midland area please give me a call at:
The Mortgage Wellness Group Ltd. – Your Mortgage Broker in Midland and Penetanguishene
The Mortgage Application Process
From filling in the paperwork, to signing on the dotted line.
There are various steps that will have to happen before you will be approved for a mortgage loan for a home purchase:
- Choosing a potential lender
- A pre-approval process if you want to know how much money you will have to shop with
- Meeting and information download
- A Debt Service Ratios analysis
- A property analysis if you have identified the home of your dreams
- Completing the Application
- Negotiation and commitment
- Closing process liaison
- Mortgage administration
Choosing a potential lender
Using a mortgage broker/agent
- If you are using a mortgage broker/agent and when they know all they need to know about you and your needs, they will start to consider which mortgage might be a good fit for you. They will think about whether you meet various lenders’ qualification requirements.
- The mortgage broker/agent will provide you with options based on an assessment of the lender, the mortgage, its structure, its features and its risks in light of the information you have provided about your circumstances. The mortgage broker/agent must also explain his or her rationale for the options that have been identified.
- Make sure the mortgage broker/agent provides you with information that will help you determine whether you can afford the mortgage, including an estimate of the total cost of borrowing for the term of the mortgage. The total cost of the mortgage depends on the terms and conditions for paying it back, such as the interest rate and the amount of time it takes to pay off the entire mortgage or “amortization period”. The total cost can be much more than the amount you are borrowing. You need to determine if the rate, amortization period and total cost of the mortgage are right for you.
Going direct to a lender or through other channels
- Make sure you shop around to find a mortgage at a rate and for a term that is affordable for you, and with conditions with which you can live. If you are using a private lender, lending their own money on the security, make sure that they are either licensed if doing business as a mortgage lender, or otherwise are using a licensed Mortgage Brokerage.
Want to be Pre-Approved?
It is a good idea to get pre-approved for a mortgage before you start your search for a new home as it might help you keep a budget range in mind. You can ask a mortgage broker/agent to help you with this process, or go straight to a financial institution or other lender. You will receive written confirmation for a certain amount at a particular interest rate and the offer will be good for a specified amount of time. Keep in mind however that a pre-approved mortgage is not a guarantee of being approved for the mortgage loan, as that depends on a number of things including the property you want to purchase.
Meeting and Information
Your mortgage broker/agent or your lender will ask you for information to help them better understand you, your goals for the mortgage loan, and the type of mortgage you want or need including:
- Your financial circumstances
- Your assets
- Your sources of income and/or funds, including employment
- Your mortgage needs and objectives
- Your knowledge of mortgages
- Your preference in terms of amount, rate, term, amortization and conditions
- Your risk tolerance
- Other parties to the transaction
- If you have identified a property you wish to purchase, information about the property that will become the security for the mortgage loan
- If you know what your credit rating is
- Your debt load or liabilities
- The amount of down payment you have saved
They will also ask for documentation to confirm the information you provide.
Take the following information with you to your first meeting with a mortgage broker/agent or lender:
- Information about your employment including confirmation of salary. A letter from your employer will be suitable for this
- Information about any other sources of income you have and evidence
- Details regarding where you bank
- Proof of any assets including RRSPs or a savings account
- Details of any loans or other debts such as student loans
- Evidence of your down payment including information about the amount of down payment you have saved and where it is coming from
- The full address of the property
- A copy of the real estate listing, if applicable
- Your mortgage pre-approval certificate, if one was issued and you have now identified a property
- Contact information for your lawyer or notary
- A copy of the agreement of purchase and sale
- Estimates of your monthly housing costs (e.g., property taxes, utilities, etc.)
- Proof that you have the funds to cover any closing costs
Lenders or mortgage brokers/agents will rely on the information you provide. This information helps them find the mortgage option(s) and/or lender(s) that are right for you. It is critical that you are completely honest when providing them this information. Errors in your application can easily lead to a mortgage that is not right for you or fit for your circumstances, plus misstating facts or providing false information in your mortgage application can have serious consequences. You could face up to 10 years of jail time. Lenders and mortgage brokers/agents are expected to ask questions and seek additional information in the event of inconsistencies with the information you provide.
Debt Service Ratios
Your mortgage broker/agent or lender will need to make sure that you can carry a mortgage. They will do this by performing a Debt Service Ratio Analysis, basically comparing your debt to your income to see whether you can afford the mortgage loan you want. Most lenders will require that your monthly housing costs (Gross Debt Service), including mortgage payments, property taxes, condo fees and heating expenses, are no more than 32 per cent of your gross monthly income. They also want to know that your total monthly debt load, including for example car loans or leases and credit card payments (Total Debt Service), is not more than 44 per cent of your gross monthly income. As well as qualifying for the mortgage loan at the rate offered by the lender, if you are putting less than 20 per cent of the purchase price down and are therefore applying for a high-ratio mortgage, you will also need to qualify at the Bank of Canada’s five-year fixed posted mortgage rate, which is usually higher. In that case your lender will also require that housing costs are no more than 39 per cent of your monthly income. This extra “stress test” is the Government of Canada’s response to the sharp increase in house prices in certain Canadian cities, and concerns that currently low mortgage rates will eventually rise. All home buyers applying for a high-ratio loan, and therefore requiring mortgage insurance, or those required by their lender to get mortgage insurance for other reasons, are subject to the “stress test”. It assures mortgage lenders that the home buyer would still be able to afford the mortgage if prices or rates increase.
Property to be Mortgaged
If you have already identified a property, your lender or mortgage broker/agent might need to analyze the property to ensure it is worth enough to provide security for the mortgage loan. They might want to view the property online with you, view the property listing on MLS or a self-listing website and/or obtain a property appraisal or home inspection to determine fair market value. You may need to negotiate access to the property with the sellers, and you will be responsible for paying appraisal and home inspection fees, unless a lender pays as an incentive for you to sign up.
Completing the Application
If you are using a mortgage broker/agent to find you a loan, once they have your approval to approach a particular lender, they will complete your application including information about the property if you have chosen one, and information about you from your meeting. You should be asked to sign a written acknowledgement that they have disclosed the risks associated with the mortgage they have presented. If you are dealing direct with a lender, you will complete the application with them. The mortgage application will include basic information such as your name, address and telephone number, social insurance number, employer, income, number of dependents, and the name and address of your bank or other financial institution. The application will also detail: your assets, such as mutual funds and RRSPs and liabilities, including credit cards, credit lines, loans or leases; the purpose of the loan; mortgage loan amount required; the type of mortgage loan you want; the mortgage term, amortization and interest rate you seek; plus a description of the property you want to purchase such as address, size, type and construction. Make sure you read the application carefully before signing it, and never sign an incomplete form. You will also need to sign a Credit Authorization Form giving the mortgage broker/agent or lender authorization to perform a credit check. A mortgage broker/agent cannot and should not request a credit report without prior consent from you.
Credit Bureau Check
A credit report from a credit bureau will tell a potential lender how well you have paid your debts and bills in the past, your outstanding debt levels, and employment, income and residence history. The credit bureau report will include a credit score – a single indicator of how likely you are to repay your loan at the agreed upon terms. It summarizes all the information available about you and provides the findings as a single number. The report will also include information about any bankruptcies, collections, judgments, garnishments or liens against you and whether you have gone through a foreclosure or Power of Sale proceeding in the last five to seven years. Neither the lender nor your mortgage broker/agent will be able to give you a copy of this report, but can discuss issues with you and must note these issues in the mortgage application. While the mortgage broker/agent or lender is required to do a credit check, you can always also get a copy of your own credit history and make sure it is complete and accurate. Doing this early in your home buying journey and before you meet with a mortgage broker/agent or lender gives you the chance to re-establish a good credit history if the report shows you currently have poor credit.
There are two main credit-reporting agencies: Equifax Canada Inc. and TransUnion of Canada. You will pay a small fee for this service. Once completed you will sign the mortgage application form, confirming that the facts on the application are correct.
Negotiation and Commitment
Once a potential lender lets you or your mortgage broker/agent know that they are willing to advance the loan, you or your mortgage broker/agent will then start to negotiate the deal. You will discuss a final mortgage rate and term for the loan and you or your mortgage broker/agent might need to supply more documentation to support your application. Once you receive the official Mortgage Approval or Letter of Commitment, make sure to review all of the terms and conditions before you sign and return the agreement.
Closing Process Liaison
Once the lender has received your signed agreement the closing process will start. Your mortgage broker/agent may continue to liaise between you and the lender and perhaps even the lawyers involved for you and the seller.
Ongoing Mortgage Administration
If you have used a mortgage broker/agent to help you find a mortgage loan, and their brokerage is also licensed as an administrator, after the property sale closes and the funds are provided by the lender, your mortgage file may be sent to the mortgage brokerage’s administration department. They will track payments, calculate outstanding loan balances and might collect municipal property taxes. They may alert the mortgage broker/agent when your mortgage term is near completion so that the mortgage broker/agent can assist you with renewal or the selection of a new lender for the next term.
Financial Services Commission of Ontario (FSCO)
5160 Yonge Street, P.O. Box 85,
Toronto, Ontario M2N 6L9
Telephone: (416) 250-7250 | Toll free: 1 (800) 668-0128
Fax: (416) 590-7070 | TTY: 1 (800) 387-0584
About The Area
Midland and Penetanguishene are located in Southern Georgian Bay, basically ninety minutes north of Toronto on the southeast shore of Georgian Bay. The area extends from Wasaga Beach in the west to Christian Island in the north and Honey Harbour in the east.
A hot spot for culture along the Georgian Bay Coastal Route, the Midland/Penetanguishene region is home to several cultural attractions. Transport yourself back to a life behind palisade walls, longhouses and lookout towers at Sainte-Marie among the Hurons, a reconstructed 17th century Jesuit mission. Experience the lives of early naval personnel at Discovery Harbour, a reconstructed 19th century British Military base or learn about the Jesuit missionaries who lived, worked and died here over 350 years ago at Martyrs’ Shrine.
The east shore of Nottawasaga Bay, a preferred area with cottagers, offers exquisite sandy beaches. Balm Beach, the public beach in the area is ideal for families. The crystal clear, ankle-deep water is perfect for splashing around, or relaxing and experiencing the view of the bay with the hills of Blue Mountain in the background. Additional beach locations can be discovered at Awenda Provincial Park, offering up an abundance of outside ventures for RVers and daytrippers likewise.
Midland is a town located on Georgian Bay in Simcoe County, Ontario, Canada. Situated at the southern end of Georgian Bay‘s 30,000 Islands, Midland is the economic centre of the region, with a 125-bed hospital and a local airport (Midland/Huronia Airport). It is the main town of the southern Georgian Bay area. In the summer months, the area’s population grows to over 100,000 with seasonal visitors to more than 8,000 cottages, resort hotels, provincial and national parks in the surrounding municipalities of Penetanguishene, Tiny and Tay.
The town of Midland was founded when, in 1871, the Midland Railway of Canada selected the sparsely populated community of Mundy’s Bay as the new terminus of the Midland railway. At that time the Midland railway ran from Port Hope to Beaverton. The town site was surveyed in 1872-3 and the line to the town was completed by 1879. Settlers, attracted by the convenience of rail service, soon began to move into the area. The company sold off lots in town (Midland City) to help finance the settlement. The village (incorporated in 1878) thrived based on Georgian Bay shipping and the lumber and grain trade. Incorporated into a town in 1890, a number of light industrial companies have established themselves in the area and tourism in the southern Georgian Bay area also contributes to the economy.
Established by farming family members in the 1840’s, Midland was well known by a variety of names such as Mundy’s Bay, Hartley’s Landing, and Abedar (named for the Welsh hometown of the first postmaster and retail merchant, Mr. Thomas Gladstane). Gladstane constructed a retail store in the spring and summer of 1871. Later on that same summer, H.H. Cook built a sizeable lumber mill alongside the shore, complete with docks, boarding houses, and a competent work crew of 200 men.
In November of 1871, the Midland Railway Corporation of Port Hope, Ontario, selected Midland as its western port and terminus. Adolphe Hugel and George Cox formed the Midland Land Company and purchased most of the acreage in the area from various farming families. In 1872, they had Peter Burnett survey the new village site, complete with large lots, wide roads and big plans for the future. They named the new community “Midland City.”
With railway construction, expanded lumber operations, and an ever-growing commercial sector, Midland City flourished.
The Chew brothers established a grist mill in 1875. Midland City soon reached a population of over 1,000 and was incorporated into a Village on October 24, 1878.
On July 1, 1879, the finished railroad was formally opened for commercial and passenger service. In 1881, the first large grain elevator was completed and regular commercial shipping began.
Unparalleled business growth persisted to the point that the village status was upgraded to incorporation as a Town on January 6, 1890. A local consortium of business leaders headed by James Playfair, David Pratt and Douglas White, to name only three, was responsible for continued expansion in wholesaling, retailing, and industrial manufacturing. Even though largely dependent on Georgian Bay pine forests, diversity in such companies as Canada Iron Foundry improved the area’s economic health.
The economic development devastation of the Great Depression of the 1930’s virtually eliminated the regional capital base. Many companies moved away, or were sold. It took the second World War and the revitalization of the shipyards to overcome the ravages of the Depression.
In 1954, however, the shipyards moved their entire operation to Collingwood. This was a major blow to the local economy, but gradual and continued diversification in all sectors brought the Town’s population to 11,000 by 1972. In addition, a Federal Government program, provided by the Department of Regional Economic Expansion, allowed for new industrial growth in 1967.
Midland is a fantastic place to live and raise a family. It is a charming, creative, and prosperous community that reflects the Canadian way of life that began so long ago on the shores of Georgian Bay.
About The Town of Midland
Looking out over Georgian Bay is the largest, and most spectacular outdoor mural which is one of more than 30 outdoor historical murals located within the downtown. Whatever your needs – youll find it among the many businesses and services of the Midland area.
Midlands rich history boasts many attractions such as the Huronia Museum, with unique exhibits of artifacts and an active gallery of Georgian Bay art and paintings. The Huron Ouendat Village describes what life had been like 500 years ago, complete with tools, implements, wood smoke and chants.
Castle Village Gift Shop and Enchanted Kingdom Park on Balm Beach Road is one of Ontario’s unique attractions. Pack a picnic lunch and take the family to The Enchanted Kingdom Park. Walk through the woods along the educational nature trail and discover life-size fantasy cottages all decorated in detail inside according to traditional fairytales. Sit, relax and breathe in the fresh air as you watch your children play out their dreams in the Dwarf Village.
Inside the Castle, enjoy a unique shopping experience with over 10,000 gift items. Descend the spiral staircase into Draculas Dungeons, where a series of early prisons house some well-known horror characters. Tour the Museum of Medieval Arms, Armour and Heraldry, inquire about tour times. For more information and times, please visit: www.castlevillage.ca
The Midland Cultural Centre (MCC), located at 333 King Street, is a multi-use space located in downtown Midland. This world-class Arts facility, is home to the Huronia Players with a 121 seat auditorium designed for live theatre. It maintains the intimate feel of a studio facility while offering much greater comfort and excellent acoustics. www.huroniaplayers.ca.
The Quest Art Gallery, is dedicated to the education and development of visual arts in the North Simcoe region. Quest Art offers quality visual arts programs that provides learning through continuing education, exposure through exhibition programs and interaction through community outreach. www.questart.ca. Rotary Hall is a multi-purpose facility that can accommodate theatrical, music and dance performances, films, lectures, conferences, conventions, wedding receptions, banquets and community and corporate events. Cafe Roxy offers fresh local ingredients featured in light meals with fresh baked breads and sweets. www.midlandculturalcentre.com
Thousands visit the Martyrs Shrine, a memorial to the men of courage and faith who came from France over 350 years ago and planted the roots of Christianity in the Huronia region. Inside are traditional Stations of the Cross, statues, icons and relics. Atop “The Lookout”, you can imagine yourself standing with the Jesuit missionaries and the Huron peoples watching for the supply canoes. The Martyrs Shrine is located at 16163 Highway 12, West of Midland. www.martyrs-shrine.com
Sainte-Marie among the Hurons (1639-1649) was the 17th-century fortress and headquarters for the French Jesuit mission to the Huron (Ouendat) people. Burned by the Jesuits themselves in 1649, Sainte-Marie was relocated to Christian Island and since reconstructed at its
present location on Highway 12 east of Midland. www.hhp.on.ca
Escape, Explore, Experience nature at the Wye Marsh Wildlife Centre which includes an amphibian and reptile display hall, hiking, biking and skiing trails, canoeing and kayaking routes, an observation tower and boardwalks, birds of prey display, education classroom, event facilities, gift shop and Naturalists on staff. The Centre is a non-profit organization committed to conserving wetlands, woodlands and wildlife by creating exciting learning opportunities in a natural setting. www.wyemarsh.com