{"id":5555,"date":"2021-07-09T11:50:10","date_gmt":"2021-07-09T18:50:10","guid":{"rendered":"https:\/\/wiibid.com\/?page_id=5555"},"modified":"2021-08-04T12:48:34","modified_gmt":"2021-08-04T19:48:34","slug":"wiibid-academy","status":"publish","type":"page","link":"https:\/\/wiibid.com\/?page_id=5555","title":{"rendered":"WiiBid Academy"},"content":{"rendered":"

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Mortgage<\/h2>\n<\/div>\n
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<\/span><\/i> Should I get my mortgage from a bank or alternative lender?<\/a><\/h3>
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\nBanks are always the most inexpensive option for all borrowers. However, banks have more stringent requirement for approval. If you are self-employed or buying a second home and investment property you might find it difficult to deal with the banks. In those circumstances, alternative lenders can be viable option.<\/p>\n

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<\/span><\/i> What is the difference between prime and a contract mortgage rate?<\/a><\/h3>
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\nPrime rate is the average borrowing rate by all major banks. The banks typically offer discounts to prime rates depending on terms, maturity and borrower circumstances.<\/p>\n

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<\/span><\/i> What\u2019s better: a veritable or fixed mortgage?<\/a><\/h3>
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\nVariable rates typically vary based on prime and bank of Canada interest rate. Fixed rates typically fluctuate based on bond market spreads and are generally higher than the variable rate.  Variable mortgages have a lower penalty than fixed rates. So if the borrower is planning on selling the home in short period of time, and therefore are not exposed to prolonged interest rate risk and want to avoid a large penalty on sale, variable rate is a more suitable option. If the expectation of the borrower is that in the future the rates will increase, and they intend to keep the property for a longer period of time then they are likely better off with a fixed rate.<\/p>\n

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<\/span><\/i> What are some red flags to look for when negotiating a mortgage?<\/a><\/h3>
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\nMost borrowers focus on the rate when looking at getting a mortgage. Rates are of course very important but there are other consideration that can increase the cost of the mortgage. Penalty clauses and pre-payment terms are also a crucial part of the mortgage contract. If the term of the mortgage is \u2018open\u2019 you could pay it off any time without a penalty. If the mortgage terms are \u201cclosed\u201d they often allow for certain amount of the balance (15-20% usually), to be paid prior to the end of the term. Not paying attention to penalty terms can cost many thousands of dollars.<\/p>\n

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<\/span><\/i> What happens if I break my mortgage early?<\/a><\/h3>
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\nDepending on the terms of the mortgage, there maybe a penalty involved. If the term is open there is no penalty. If the term is closed there could be various forms of penalty and it can become a significant amount. That is why it is important to chose the right term when selecting the mortgage. You can contact WiiBid advisors to learn more and get advice when needed.<\/p>\n

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<\/span><\/i> Where can I find the best mortgage rates for borrowing? <\/a><\/h3>
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\nWiiBid is the only platform that enables investors to source and originate opportunities for lending. For more information register as a lender and one of our advisors will contact you for a consultation.<\/p>\n

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Refinance and Interest Rates<\/h2>\n<\/div>\n
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<\/span><\/i> What are indications that I am ready to refinance?<\/a><\/h3>
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\nIf you find the market interest rates that are advertised by banks are less than the rate you are paying there might be a way to save money on your mortgage. You should carefully consider the costs of switching and the savings you might see by refinancing over the term of the mortgage.<\/p>\n

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<\/span><\/i> When and how can I lock the interest rate?<\/a><\/h3>
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\nIf you feel like the interest rates are going to be increased soon, you should try to lock in the rate. In practice it is difficult to try and predict the direction of interest rate as there are many factors contributing to interest rate directions.<\/p>\n

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Credit Score<\/h2>\n<\/div>\n
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<\/span><\/i> Can you get a mortgage without a credit score?<\/a><\/h3>
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\nCredit score and history are very important for the lenders to assess the strength of an application and without a credit score, most lenders will not entertain financing.<\/p>\n

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<\/span><\/i> What credit score do I need to be approved?<\/a><\/h3>
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\nGenerally speaking, a minimum credit score of 680 is required for most banks, credit union and prime lenders.  A score above 700 is generally considered a \u201cgood\u2019 credit. However, alternative lenders are more flexible when it comes to credit score. Private lenders typically are less concerned with the score itself than the liabilities a person carries that reflects in the credit file.<\/p>\n

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Home Buying Process<\/h2>\n<\/div>\n
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<\/span><\/i> How much can I borrow for a home?<\/a><\/h3>
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\nThe amount of borrowing depends on the most part on two main factors:<\/p>\n