When you refinance your mortgage, you usually pay off your original mortgage and sign a new mortgage. With a new mortgage, you again pay most of the same costs you paid to get your original mortgage. These can include appraisal fee, CMHC or GE insurance premium (where applicable) and existing mortgage discharge penalty. Existing mortgage lender will charge you penalty if mortgage paid prior end of the term.

The amount of penalty calculated either the greater of three months interest penalty or the interest rate differential; whichever amount is the larger of these two figures will be your penalty. In other words, How is this penalty calculated? Three Months Interest Penalty - If you are paying off your mortgage before the maturity date, most lending institutions charge three months interest penalty. Your present mortgage balance is multiplied by your current interest rate and multiplied by three Interest Rate Differentials. The interest rate differential means the difference between the interest rates on your mortgage contract compared to the rate at which the lending institution can presently re-lend the money.

To find out the exact amount of the penalty you should contact your current mortgage lender.

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The basic fundamental of refinancing is to reduce your unsecured high interest rate monthly payments into a secured low interest rate mortgage or loan payment. Your Bank rate on unsecured debt is higher than on your mortgage in order to compensate for the higher risk of loss if you default. We have an extensive network of institutional and private lenders who can approve mortgages based on different levels of employment stability, income, credit history, appraised value and marketability of the subject property. We deal with three categories of lenders:

1. "A" lenders who's lending decision is based on income (provable), credit report, property value and marketability that will fit their low risk lending guidance providing the best discounted rate.
2. B" lenders who's decision of lending is based on the financial logic that "the deal should make sense", meaning the lender will analyze the reasons and needs of refinancing as well as how much the refinancing will help borrower to improve their financial position and to what degree the lender is comfortable with refinancing. Lender will look for past credit history as well current employment income and stability.
3. C" lenders are private lenders for unqualified deals where the lending decisions are strictly based on the property value, marketability and current income (no needed proof of income) rather, the lender would like to logically see how the mortgage payment would be paid.

   "A" lenders will provide the best-discounted variable or fix mortgage rates with the best options in the market. At CITYCAN financial, our mortgage consultants will shop in the financial lending market to get the best product for a client.

   "B" lenders lending rates are based on the credit risk factor of the borrower (Credit Score from Equifax or Trans Canada). These Lenders' lending decisions for self-employed borrowers who can not verify their income, just based on a credit report, if score is over 640 from EQUIFAX or Trans Canada, first mortgage rate is from PRIME RATE allowing second mortgage up to 85% of market value of secured property for refinancing or 90% for purchases. There is no required NOA, Business statements.

   "C" lenders are for borrowers with slow credit and past bankruptcies who's credit score is below 500 from EQUIFAX or Trans Canada. The lenders' decision for lending up to 85% is based on the value and marketability of a secured property and current income of the borrower that will support the mortgage payments.

   Our lenders products are: First and second mortgages - up to 100% of the market value of the property. Slow credit and past bankruptcies up to 85 or 90% based on the appraised value of property and current income of the borrower that will support the mortgage payments. 100% refinancing of the market value of a property based on the borrowers household income verification and credit report (minimum score from 500). Contact us for more options.

   BUSINESS LINE OF CREDIT: (This product provided by "A" lender) If you are an established business owner for past 2 years business, you can business line of credit up to 30,000.00 or more than 2 years up to $100,000.00. We can provide a Business Line of credit - based on your credit history from the Credit bureau (Minimum 700) there is no need of a Business Plan or Financial Statement.

To find out what you can save, fill out the approval application form

In today's financial market, every institution has their specific and chosen lending guidelines. At Genesis Associates, our service is in finding you the right lender for your unique situation. We have extensive experience in arranging qualified and unqualified deals. Even if you are experiencing weak credit or low income, give us a call and we will attempt to secure the funds you require. We will find the lenders that best suit your current financial picture, like your properties equity, your past record and even your promise of performance.

Self-Employed and Self-Contracting as the recent trend of increasingly more people working independently for themselves continues, there are increasingly more people finding it difficult to qualify for mortgage financing. We can help by working with you to present a proper financial picture to obtain a successful approval. We have a number of lenders who will lend funds based on your credit history up to 90% of the market value of secured property for refinancing and up to 90 % for purchases. Note: There is no need of proof of income. Instead it's based on the financial logic that "the deal should make sense".

Financing Bad Credit Problems, Past Bankruptcies, Unqualified Deals Did you know that some of the banks would never approve a discharged bankrupt application while others may? Different credit problems, we will find the lenders that best suit your current financial picture and provide you with a successful approval. At Genesis Associates, a mortgage consultant will prepare reasons for credit problems, restructure a new payment plan and submit it to the lenders to get you approved!

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The easiest way to reduce the interest costs on a mortgage is to pay it off sooner. Here are four ways this can be done:

• Increase Payment Frequency - Contact us about how paying weekly or bi-weekly, rather than monthly, can save a significant amount of interest.
• Prepay - Some institutions offer up to 20-25% of the original principal amount of your mortgage anytime during each year of the term of the mortgage, without penalty or administration fee. Contact us for more info.
• Increase Payments - Once each year during the term, institutions offer mortgage payments that may be increased by up to 15-20% of the payment originally established for the term of the mortgage without penalty or administration fee. Contact usfor more info.
• Amortization Period - Simply defined this period of time measure in years is the maximum length of time it would take to completely pay off a mortgage. By reducing the amortization the mortgage payments will increase however the total interest paid against the mortgage will decrease. Contact us for a direct comparison.

If you are thinking of refinancing your high rate first mortgage you might want to consider either a low fixed rate 5-year term mortgage, fix rate or adjustable rate mortgage with cap or no cap on interest rate increases and line of credit. You might want to switch to a fixed-rate mortgage or to an adjustable rate mortgage where there are many options that can reduce your mortgage amount during the term or e.g. If you are thinking about refinancing your mortgage and all credit card and loan debts, you might want to consider mainly two options:

Option 1. Discharge the first mortgage and arrange a new first mortgage with a lower interest rate. Remember, if a new first mortgage amount is higher than 75% of market value of secured property, then they will apply CMHC or Genworth Insurance premium.

Homeowner mortgage loan insurance premiums vary according to loan-to-value ratio.

Effective July 14, 2003

* For Portability and Refinance, the premium is the lesser of the premium on the increase to the loan amount or, the Purchase premium on the total loan. In the case of Portability, a premium credit may be available under certain conditions to reduce the Purchase premium.

Note: Contact us for premium surcharges and other terms and conditions which continue to apply.

You can pay this premium in a single lump sum (saving interest on this charge), or add it to your mortgage and include it in your monthly payments.

This service is cost free; the lender pays us for this service, so your cost for arranging a new mortgage is only the solicitor fee and either appraisal or CMHC or GE insurance Premium. Sometimes solicitor fees or appraisal fees absorb either by mortgage broker or lender.

Option 2. Leaving the first mortgage as is and arranging either second mortgage (up to 100% of market value of property), this option used if there is discharge penalty on existing first mortgage or for some financial reason credit report is damaged. A second mortgage rate start from PRIME plus 2.5%, and is determined mainly on the credit history from Equifax or Trans Canada and market value of property. The higher ratio second mortgage amount to market value of property the higher is interest rate.

If you are self-employed, experienced past bankruptcy or have slow credit, we have institutional and private lenders who will lend up to 85% of the market value of a secured property and interest rates will depend on the borrower's credit risk factor and current employment income and stability. We also have lenders whose lending decision is based on whether the deal makes financial sense. The costs of refinancing through second mortgages are the lender and broker fees, appraisal fee and solicitor fee. All of these costs are paid on the closing date except the appraisal fee.

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