When discussing rates, there are two choices. Long term and short term. Regardless of the loan to value ratio, which determines a mortgage to be high ratio or conventional, a rate can be set for a brief term (floating to 2 year) or a longer term (3 to 25 year).

Rates are subject to change and dependent upon individual circumstances. To obtain today's lowest rates from CMA, please telephone, fax, or E-mail our office and we will be pleased to respond with today's current information.

There are many lenders today seeking good business in our competitive mortgage marketplace, and as technology has improved, companies such as CMA have emerged to represent a variety of lenders who wish to acquire business without the expense of a branch office system.

For most of us, who are on the borrowing side of lending, it is difficult to relate to the fact that lenders often have quite a chore, putting money out into correct investments. This can actually become quite a problem if you have great sums of money on deposit and must pay interest on the funds invested. Through electronic transfer of data (fax and computer), CMA is able to represent lenders who often (dependent upon their current hunger for business) discount rates below the normal market level, and this allows clients to take advantage of lower rates.

Years ago to be involved in the mortgage business, lenders would set up branch networks in cities across the country. The bigger the lender, the more branches they had, and the more branches they had, the bigger the lender grew. (Ever look at your bank's profit statement?)

There are have been two obvious products of this situation...first, lenders have grown to be huge, and as a result, policy driven, and rigid...and second, sources of financing have become less personal and intimidating to clients.

Today, many lenders have discovered that technology makes representation through an agency possible. This eliminates much of the cost of the origination of mortgage loans, and clients can often take advantage of the various terms and policies available through a multi-source lending service such as Central Mortgage Associates Inc.

In summary, the difference between CMA and the bank on the corner, is that they are a single source lender and we are a multi-source lending service.

This question has come up often, as normally a lender's focus would be specifically toward one area of the market, low risk and discounted rates, or higher risk and normal to higher rates.

The ability of Central Mortgage to represent many lenders (multi-source) as an agency, is the difference that allows for assistance in cases that are either sophisticated and simply looking for the very best deal available, or challenged and looking for an approval for a difficult case.

While some believe, that going directly to a lender is the only way to do business, CMA is built on the principle that dealing with a lender on an isolated basis, can place any applicant at a disadvantage.

The assistance of an institutionally focussed brokerage, can often level the playing field, and acquire a superior approval to what might have been possible, without the assistance of an independent firm, acting in and for a client's best interest.

CMA makes a profession of dealing with lenders on their own terms, and through the process joins applicants together with many others also seeking approval. As a result, CMA clients have a distinct advantage when seeking the best deal possible, or simply the desired approval, their own single source, corner banker, refused to allow.

In summary, CMA, a multi-source lending service, has the ability to process requests from a variety of market positions...from sophisticated (I can get approved anywhere...what's the best rate you can offer?) to challenged (My banker told me NO...can you help me?) situations.

The Central Mortgage office is located at the intersection of Wyandotte & Lauzon Rd, (beside Tim Horton's) at 7836 Wyandotte St. East, Windsor Ontario.

Interest rates change due to the value of the Canadian Dollar, stock market trends, investment bond sales, and everything else from consumer spending, politics, wars, and even natural disasters such as the eruption of the Mount St. Helens volcano!

As an example; most people recall the lengthy captivity of the American hostages in Iran. When they were first detained, it looked as though the backlash of this involved the removal of enormous deposits of funds (hundreds of millions) from the US banking system. In anticipation of this problem, the US dollar dropped in value against the Canadian dollar, four times in the same day!

This situation produced a sharp rise in interest rates along with the sharp decline in the US dollar. It was not until US President Jimmy Carter stepped in to freeze Iranian assets held in the US, that the situation levelled out and began to return to normal.

Although, there is no such thing as a financial guru, the nearest person that we have discovered who might possibly lay claim to the title, is Mr. Garth Turner, a former Minister of Finance with the Canadian Federal Government. Mr. Turner's Empowerment Network can be found at http://www.io.org/~garth/

We have referred Mr. Turner's insights to our clients on many occasions to explain why interest rates do what they do.

We welcome calls to the office for those who wish to discuss rates directly with CMA.

Everyone loves a great deal, and the bigger the item, the more important this becomes!

Unlike our single source colleagues, who process files by towing the corporate policy line, today's mortgage broker has the capacity to deal with requests that range from perfect to challenged through the knowledge, resource base, and experience that allows a motivated professional to survive independently in today's competitive market place. Some requests are obvious approvals, and others are obviously not. The confusion occurs when a realistic application is received, that is challenged by negative points.

Whereas some judge applicants by how well they fit policy, and if challenged simply reject the file, an experienced Mortgage Broker will present the request in its most positive form and call upon the resources of today's unbiased multi-source lending, to acquire the approval.

While this does not always secure an approval, it increases the odds greatly, and in many cases, families have their own homes rather than renting from others.

In consideration of the specialized service necessary to secure some approvals, it is common for a fee to be charged by a broker when involved in challenged cases, unlike the banker who simply rejects the file, and is unable to provide further assistance.

It is also equally common for a broker to process files without fees, when involved in unchallenged (normal) cases.

When applicable, fees are based upon :

(1) the time and effort spent,
(2) the difficulty and importance,
(3) the level of skill that has been required and provided,
(4) the customary charges of brokers regarding similar circumstances,
(5) the amount involved and the value of the matter,

According to the Mortgage Brokers Act; "If the principal amount of the mortgage (requested) is $200,000 or less, a mortgage broker cannot request, or accept, an advance payment or deposit for services to be rendered or expenses to be incurred by the mortgage broker or any other person."

In summary, the mortgage brokerage profession in Ontario is governed by the Mortgage Brokers act, and enforced by the Ministry of Finance.

In the course of assisting clients, strict guidelines are observed, and while the capacity of multi-source lending allows for specialized services, for challenged and sophisticated applicants alike, the receipt of fees for services rendered are determined individually, and must be declared to clients according to the guidelines specified under the Mortgage Brokers Act, of Ontario.

Preparation for anything in life (marriage, career) is a good idea, and certainly when buying property, it's intelligent to check out the possibilities.

At Central Mortgage Associates Inc. we are proud to offer pre-qualification for clients who wish to prepare themselves for home ownership, however, we caution against considering pre-approvals as more than simply a rate guarantee for a specified length of time.

Pre-approvals in an ascending market (rates going up) will hold a rate, while the rest of the market suffers through the increases, and it's not too difficult to see the wisdom of reserving a better rate, as a search for the right home is under way.

Pre-approvals in a descending market are of less real value, but are still a good idea, if for nothing else, the peace of mind gained by the knowledge of what you are able to afford.

Lenders have known for a long time, that in an ascending market, a pre-approved client is the next thing to a completed file, because people are essentially held captive by the higher rates that exist everywhere else.

Realtors often feel uncomfortable when working with clients that are not prequalified, as they could be wasting their time, looking at homes people cannot afford.

Central Mortgage Associates Inc. proudly represents a network of progressive lenders who cover the entire spectrum of today's competitive financial market place.

Our lenders include: banks, trust, life, and pension companies, in addition to privately based lending sources.

Mortgage investments are assets held by lenders.

If a lender should ever become insolvent, the assets of that company (bank, trust, etc.) would be sold to another qualified lender, under the guidance of the government regulators responsible for that particular jurisdiction. A client's mortgage would remain unchanged as a result of a situation as described, except that the mortgage would be carried by another lender.

Mortgages, are simply big loans, that involve land held as collateral.

The documentation necessary for approval will involve the following:

* Application-Completed with CMA
* Credit Report-Completed by CMA (following application)
* Offer to Purchase-Completed by the Realtor, Lawyer, or client
* Income Verification-Provided by Client
* Downpayment Verification-Provided by Client
* Appraisal-Completed by the appropriate (CMHC or independent) agency

In order to close a mortgage (purchase or refinance) there are several items that must be addressed, and in Canada these items are handled by a lawyer who certifies that the mortgage is properly registered, and the supporting documents are in place.

The details to be covered are as follows:

* Legal Fee
* Legal Disbursements
* Interest Adjustment
* Tax Hold back
* Land Transfer Tax (Re-Purchase)
* Tax Adjustment
* PST on CMHC Premium (Re-High Ratio Mortgage)

At Central Mortgage Associates Inc we are pleased to discuss the details of closing costs with clients on an individual basis, however, the general rule of thumb is that closing costs are usually no more than "one year's property taxes plus $1,000".

In order for the lawyer to certify that the lender holds a valid charge in support of the mortgage loan granted, it is to determine that the buildings that exist on the property, are within the lot lines.

Without a survey, there is a possibility of encroachment on (or from) another property, and it is therefore a usual requirement that a survey be provided.

The Canada Mortgage and Housing Corporation administers the National Housing Act of Canada. CMHC services include the insuring of high ratio mortgage loans for lenders.

A mortgage loan which exceeds 75% of the value of the property, must be insured against default of payment according to the National Housing Act.

Mortgage lenders usually are only too anxious to lend more money, as long as it is realistic do so, and lenders enjoy paying off competitors more than perhaps any other type of transaction.

If a mortgage is closed, and rates fall, it is not uncommon for borrowers to desire a lower rate, and it is often the case that CMA is engaged by clients to assist in the preparation of the documents necessary to refinance for a better deal.

We welcome calls to the CMA office in order to discuss refinancing on an individual basis with clients.

The increase of an existing mortgage involves rewriting the debt, and lenders often dissuade clients from disturbing an existing first mortgage for improvements as it is usually easier to grant a consumer loan for this purpose.

While this is the way a lender might wish to handle things, this is often not to the clients advantage as payments can be higher due to a shorter amortization.

At Central Mortgage we proudly assist people who have the vision of improvements to their homes in mind, and require a mortgage with the provisions necessary to accomplish the goal.

Central Mortgage Associates Inc proudly offers clients the resources of many varied institutional lenders, in addition to a variety of privately based lending sources.

All mortgages are individually structured and in consideration of this there is no short answer for this question, except to say that most lenders who are wishing to retain clients are well aware of the fact that people move from time to time.

In order to retain clients, most lenders provide for the reassignment of existing mortgages (transfer of mortgage) through the use of alternate properties, for the same term or longer, for the same amortization or longer, for the same rate or higher, for the same amount or higher, without penalties to clients.

Individual concerns such as this should be addressed directly with the CMA office.