Lisette Amalfi
Greater Golden Horseshoe
Contact Info:
About
Explore Our Services
Preview Our Rates
Access all your mortgage options with just one application. Preview today's rates first:
Leave a Review
Like the service you received from Lisette Amalfi? Leave a review!
Blog
10 Things to Do After Mortgage Approval to Ensure a Smooth Closing
March 05, 2025
Congratulations! Getting your mortgage approved is a huge milestone in your homebuying journey. But before you celebrate, there are still important steps to take to ensure a smooth closing process.
As a mortgage broker with 23+ years of experience helping homebuyers in Hamilton, Ancaster, and across Ontario, I’ve guided many clients through this crucial period. Here’s how to stay on track from approval to closing day.
1. Avoid Major Financial Changes 🚨
Your lender approved your mortgage based on your current financial situation. Any changes could put your approval at risk.
✔ Hold off on major purchases like a new car, furniture, or vacations—large expenses can impact your credit score and debt-to-income ratio.
✔ Don’t apply for new credit cards or loans. Even a small inquiry on your credit report can cause delays.
✔ Stay at your current job. A sudden career change could affect your mortgage approval.
2. Stick to Your Budget 💰
It’s tempting to start spending on home upgrades, but staying within budget is key.
🔹 Closing Costs: Set aside 1.5%–4% of the home price for legal fees, land transfer tax, title insurance, and other expenses.
🔹 Moving Expenses: Whether hiring movers or renting a truck, factor these costs into your budget.
3. Review Your Mortgage Commitment Letter 📜
Your mortgage commitment letter outlines your loan details. Double-check:
✅ Interest rate & term – Ensure it aligns with what you expected.
✅ Conditions before closing – Some lenders require proof of home insurance, updated pay stubs, or additional documents.
✅ Prepayment options – If you plan to make extra payments, check if there are penalties.
Need clarification? I’m happy to walk you through the details.
4. Meet All Conditions on Time ⏳
Your mortgage approval may come with conditions that must be met before the lender releases the funds. These may include:
✔ Proof of home insurance.
✔ Final purchase agreement.
✔ Updated financial documents (e.g., pay stubs, tax returns).
✔ Property appraisal or home inspection results (if required).
How I Can Help: I’ll ensure all paperwork is submitted on time, so your closing stays on track.
5. Avoid Large Cash Deposits Without Documentation 🏦
If you receive or deposit a large sum of money before closing, be prepared to explain where it came from.
✅ Acceptable sources include:
- Savings or investments
- Gifted funds (must be documented with a gift letter)
- Sale of an asset (provide receipts or proof of sale)
6. Arrange for Home Insurance 🏠
Lenders require home insurance before closing. Shop around for the best rates and ensure your policy meets lender requirements.
🔹 Pro Tip: If your new home is in a flood-prone or high-risk area, double-check coverage details.
7. Plan Your Final Walkthrough 🔎
A final walkthrough (if included in your contract) ensures the property is in the expected condition before closing.
✔ Confirm that all agreed-upon repairs have been completed. ✔ Check for any damage or missing appliances.
✔ Test electrical, plumbing, and heating/cooling systems.
8. Work Closely with Your Lawyer ⚖️
Your real estate lawyer handles key closing tasks, including:
🔹 Title search – Ensures no outstanding liens on the property.
🔹 Property registration – Legally transfers ownership to you.
🔹 Handling funds – Manages down payments, closing costs, and lender disbursements.
What You Need to Do:
✔ Provide funds for the down payment & closing costs.
✔ Review and sign final legal documents.
9. Monitor Your Credit and Financial Activity 📉
Even after approval, your lender may perform a final credit check before releasing funds.
✔ Keep making all payments on time.
✔ Maintain a consistent balance in your accounts.
✔ Avoid overdrafts or missed bill payments.
10. Stay in Touch with Your Mortgage Broker 📞
If anything changes in your finances, let me know ASAP. Addressing potential issues early can prevent closing delays.
Final Thoughts 💡
The period between mortgage approval and closing is critical. By staying financially stable, meeting all lender requirements, and keeping an open line of communication, you can ensure a stress-free closing.
Need guidance? I’m here to help every step of the way. Let’s make sure everything goes smoothly so you can focus on moving into your new home!
📧 Email: lamalfi@tmacc.com 📞 Call: 905-929-1199
Bridge Financing: What You Need to Know
March 04, 2025
Bridge financing is a short-term loan that helps you transition between selling your current home and purchasing a new one. It’s commonly used when the closing date of your new home occurs before the closing date of your existing home, leaving you temporarily without the funds from your sale.
As a mortgage broker with over 23 years of experience serving clients in Hamilton, Ancaster, and across Ontario, I often assist homeowners in understanding and securing bridge financing to make their move seamless.
How Does Bridge Financing Work?
Purpose: Bridge financing provides the funds you need to cover the down payment or balance on your new home while you wait for the sale of your existing home to close.
Loan Term: These loans are short-term, typically lasting from a few days to several months, and are repaid as soon as the sale of your current home is finalized.
When Do You Need Bridge Financing?
Mismatch in Closing Dates
If your new home closes before your current home sells, bridge financing fills the gap between the two transactions.
Using Proceeds from Your Current Home
If your down payment or the balance of your new mortgage depends on the proceeds from your existing home sale, bridge financing ensures you can close on time.
How Much Can You Borrow?
The amount you can borrow through bridge financing depends on the equity in your current home.
Calculation:
Available Funds = (Sale Price of Current Home - Mortgage Balance) - Closing Costs (if applicable)
Example:
- Sale price of current home: $700,000
- Mortgage balance: $400,000
- Closing costs: $10,000
- Available Funds: $700,000 - $400,000 - $10,000 = $290,000
You could borrow up to $290,000, depending on your needs.
Costs of Bridge Financing
Interest Rates
Bridge financing rates are typically higher than regular mortgage rates because it’s a short-term loan. Rates can range from prime + 1% to prime + 3%, depending on the lender.
Administrative Fees
Lenders may charge a setup fee, usually between $200 and $500.
Interest-Only Payments
Most bridge loans require interest-only payments during the loan term, minimizing upfront costs.
Requirements for Bridge Financing
Firm Sale Agreement for Your Current Home
Most lenders require proof that your existing home is sold (a firm purchase agreement). If your home isn’t sold yet, options may still exist, but terms will be stricter.
Strong Credit and Financial Standing
Lenders need assurance that you can repay the loan. Good credit and financial stability are key.
Down Payment on the New Home
You’ll need to meet the minimum down payment requirements for your new home. Bridge financing can cover this if the funds are tied up in your current home.
Advantages of Bridge Financing
✅ Smooth Transition – Avoids the stress of aligning closing dates and allows you to move into your new home without waiting for your current home’s sale to finalize.
✅ No Rush to Sell – Gives you time to secure the best possible price for your current home rather than rushing to meet a deadline.
✅ Flexibility – Allows you to secure your dream home even if your existing home hasn’t closed yet.
Potential Challenges
⚠️ Higher Costs – Bridge loans come with higher interest rates and fees compared to standard mortgages.
⚠️ Firm Sale Requirement – If your current home isn’t sold yet, you may need to explore alternative solutions, such as a home equity line of credit (HELOC) or private lending.
⚠️ Qualification Process – Lenders require strong financial standing and may be more cautious if there are uncertainties around your home sale.
How I Can Help
As your mortgage broker, I make the bridge financing process simple and stress-free:
🔹 Evaluate Your Needs – I’ll assess your financial situation and determine if bridge financing is the right option for your transition.
🔹 Find the Right Lender – I work with a wide network of lenders, ensuring you get competitive rates and terms.
🔹 Handle the Details – I’ll guide you through the documentation process, coordinate with your lender, and ensure everything is ready for closing day.
🔹 Explore Alternatives – If bridge financing isn’t the best fit, I’ll help you explore other options, such as a HELOC, second mortgage, or short-term private financing.
Key Takeaway
Bridge financing can make buying and selling a home more manageable by providing the funds you need to cover gaps between closing dates.
If you’re considering a move and need expert advice on bridge financing or other mortgage solutions, let’s connect. I’m here to guide you through the process and ensure a smooth transition into your new home!
📞 Call me at: 905-929-1199 📧 Email me at: lamalfi@tmacc.com
What Is a Second Mortgage and Is It Right for You?
February 24, 2025
A second mortgage is a loan taken out against the equity in your home, in addition to your primary mortgage. It’s often used for larger expenses, such as:
✔ Home renovations
✔ Debt consolidation
✔ Funding investments
While a second mortgage can provide quick access to funds, it’s important to understand how it works and whether it’s the right financial move for you.
How Does a Second Mortgage Work?
1. Interest Rates
📌 Second mortgages typically come with higher interest rates than first mortgages because they represent a higher risk for lenders.
2. Payment Structure
📌 Payments on a second mortgage are usually separate from your first mortgage.
📌 You’ll be required to make regular payments, often over a shorter loan term.
3. Loan-to-Value (LTV) Ratio
📌 Lenders typically allow you to borrow up to 85% of your home’s appraised value, including the balance of your first mortgage.
💡 Example: If your home is worth $500,000 and you still owe $300,000 on your first mortgage, you could potentially borrow up to $125,000 through a second mortgage (85% of $500,000 = $425,000, minus the $300,000 owed).
Pros and Cons of a Second Mortgage
✅ Pros:
✔ Access to Large Funds – Use your home equity for major expenses.
✔ Lower Interest Rates than Credit Cards – Second mortgage rates are usually lower than credit card rates, making them a smart option for debt consolidation.
✔ No Need to Refinance – You keep your first mortgage intact while borrowing additional funds.
❌ Cons:
✖ Higher Interest Rates than First Mortgages – Since second mortgages are riskier for lenders, rates are usually higher than first mortgage rates.
✖ Additional Monthly Payment – You’ll have two mortgage payments, which can strain your budget.
✖ Risk to Your Home – If you fail to make payments, the lender can foreclose on your home.
Is a Second Mortgage Right for You?
A second mortgage can be a great option if you need quick access to funds and have a solid repayment plan. However, it’s essential to weigh the costs and ensure it aligns with your financial goals.
I Can Help!
As a mortgage broker with 23+ years of experience, I specialize in helping homeowners in Hamilton, Ancaster, and across Ontario find the best financing options.
📞 Call me at: 905-929-1199 📧 Email me at: lamalfi@tmacc.com
Let’s discuss whether a second mortgage is the right choice for you!
How to Improve Your Credit Before Getting a Mortgage
February 20, 2025
Your credit score plays a crucial role in securing a mortgage and accessing the best interest rates. A higher credit score shows lenders that you’re a responsible borrower, which can save you thousands of dollars in interest over the life of your loan.
Whether you’re planning to buy a home in Hamilton, Ancaster, or anywhere in Ontario, improving your credit score is a smart move.
As a mortgage broker with 23+ years of experience, I often guide clients on how to boost their credit before applying for a mortgage. Here are practical strategies to improve your score:
1. Pay Your Bills on Time
Your payment history is the biggest factor in your credit score, making up 35% of the calculation.
How to Improve:
✅ Always pay at least the minimum on credit cards, loans, and utility bills before the due date.
✅ Set up automatic payments or reminders to avoid missed payments.
2. Keep Your Credit Utilization Low
Credit utilization—how much of your available credit you’re using—accounts for 30% of your score.
Ideal Utilization:
🔹 Aim to use no more than 30% of your credit limit on any card.
🔹 Example: If your credit limit is $10,000, keep your balance below $3,000.
How to Improve:
✅ Pay off balances regularly.
✅ Ask for a credit limit increase (this lowers your utilization ratio).
3. Don’t Apply for Too Much New Credit
Every time you apply for new credit, it triggers a hard inquiry on your credit report, which can temporarily lower your score.
How to Improve:
✅ Limit credit applications unless necessary.
✅ Space out credit inquiries over several months.
✅ Consider soft credit checks for pre-approvals that don’t affect your score.
4. Use a Mix of Credit Types
Having a mix of credit accounts (e.g., credit cards, car loans, lines of credit) can improve your score because it shows you can manage different types of debt responsibly.
How to Improve:
✅ Don’t rely solely on one type of credit.
✅ Avoid closing old accounts unless necessary, as it reduces your credit history length.
5. Monitor Your Credit Report for Errors
Mistakes on your credit report—like incorrect balances or unknown accounts—can hurt your score.
How to Improve:
✅ Request a free copy of your credit report from Equifax or TransUnion (Canada’s two credit bureaus).
✅ Dispute any errors directly with the credit bureau.
6. Pay Down Debt Strategically
Reducing your overall debt helps improve your credit score and financial health.
How to Improve:
✅ Pay off high-interest debt first.
✅ Consider debt consolidation to combine multiple debts into one lower-interest loan.
7. Keep Old Credit Accounts Open
The length of your credit history impacts your score, so older accounts help boost it.
How to Improve:
✅ Avoid closing old credit cards, even if you rarely use them.
✅ Make occasional small purchases on older cards to keep them active.
8. Limit Joint Credit Accounts
If you share credit with someone (e.g., a spouse or partner), their actions can affect your score.
How to Improve:
✅ Ensure joint accounts are managed responsibly.
✅ If not necessary, consider closing joint accounts to avoid risks.
9. Use a Secured Credit Card
If you have poor or no credit, a secured credit card can help you build or rebuild your score.
How It Works:
🔹 You provide a security deposit, which becomes your credit limit.
🔹 Use the card responsibly and pay it off in full each month to build a positive payment history.
10. Avoid Maxing Out Credit Cards
Using your full credit limit—even if you pay it off monthly—can signal financial distress to lenders.
How to Improve:
✅ Spread spending across multiple cards.
✅ Make multiple payments per month to keep your utilization low.
11. Be Patient and Consistent
Improving your credit score takes time and consistent effort. Positive changes may take several months to reflect on your credit report.
How to Improve:
✅ Stick to good financial habits like paying on time and managing debt responsibly.
How I Can Help
As your mortgage broker, I’m here to guide you every step of the way:
📊 Credit Analysis – I’ll review your credit situation and provide personalized advice to boost your score.
🏦 Lender Matching – I work with lenders who specialize in borrowers with varying credit scores.
📑 Pre-Approval Guidance – If your credit needs improvement, I’ll help you develop a plan to get mortgage-ready.
Key Takeaway
Improving your credit score is one of the best ways to secure a better mortgage rate and save thousands in interest. Even small changes can make a big difference!
If you’re unsure where to start or need expert mortgage advice, let’s connect. Together, we can build a strategy to strengthen your credit and achieve your homeownership goals.
📞 Call me at: 905-929-1199 📧 Email me at: lamalfi@tmacc.com
Let’s take the first step toward your mortgage approval today!
Stay Connected
Subscribe to our Newsletter and you'll stay up to date on rates that help you save thousands in interest.