10 Things to Check at Mortgage Renewal Time
When mortgage renewal time rolls around, you will get a letter from your bank or other financial institution letting you know that it is time to renew. Unfortunately, many Canadians simply renew with their current institution at the offered rate without checking to see if doing so is really in their best interest. Before you renew your mortgage, here are ten things you will want to check.
How RRSPs Help First-Time Home Buyers
This time of year, you are probably hearing a lot about the importance of saving for retirement through tools such as RRSPs. But did you know that RRSPs are also a great tool that you can use if you are a first-time home buyer? That’s right! Through a federal government program called the Home Buyers’ Plan (HBP), first-time homebuyers may borrow up to $25,000 tax free from their RRSP for a down payment. If you are married, both you and your spouse may borrow from your RRSPs for a total of up to $50,000.
What are the financial stress test rules?
If qualifying for a new mortgage any time since January of last year has been on your radar, then you have probably been hearing about the financial stress test that the federal government introduced at that time. The stress test is exactly what it sounds like – it is a test to see if you would be able to financially handle a rate increase on your mortgage. The thinking behind introducing the legislation was to make sure Canadians wouldn’t have to default on their home loans in the event of interest rates going up. Canadian home buyers who wish to obtain a mortgage from a federally regulated lender must first pass this test.
Reasons to Reach Out to a Monoline Lender in Canada
Mortgage brokers work with a wide variety of lenders ranging from major banks and credit unions to private lenders and monoline lenders. If you have never heard of a monoline lender, you are not alone, but mortgage brokers love to work with them because they can often offer their clients the best rates.
Everything you need to know about home appraisals in Canada
In most cases, when you get a mortgage, you will also need to get an appraisal. This is a professional assessment of the property’s value. Lenders often require appraisals before they will give a mortgage on a property because they want to be sure that the property is actually worth what they are lending.
Tips on Getting the Best Adjustable Rate Mortgage in Canada
Historically in Canada, those who opt for adjustable rate mortgages tend to pay less than those who opt for the more common fixed rate mortgages. An adjustable rate mortgage is one that has an interest rate that fluctuates with the Bank of Canada’s interest rate. So if you do choose an adjustable rate mortgage, how do you know that you are getting the best possible deal.
3 Tips for Rent to Own Agreements in Canada
For many in Canada, the dream of homeownership can be a difficult one to achieve – particularly if your credit score isn’t stellar. Rent to own can be a viable solution, allowing the tenant/buyer to live in a home that they love while they put away money for the down payment. The landlord/seller collects rent and after a set time period, they have a good chance of being able to sell the home to the tenant/buyer for a tidy profit. Ideally in this situation, everyone should come out a winner. Unfortunately, rent to own has gotten some bad press in the past because like every other type of business transaction, it does have the potential to attract some scam artists. The good news is there are ways to protect yourself.
The Benefits of Creditor Life Insurance
If you have ever taken out a mortgage or other type of large loan, the lender may have recommended that you also purchase creditor life insurance. But what exactly is creditor life insurance and what are the benefits? Simply put, a creditor life insurance policy is one that allows you to keep your financial obligations to the lender in the event that you pass away before the debt is paid. (There are also creditor disability and creditor critical illness insurance policies, but those are topics for another day.)
Becoming a Private Mortgage Lender
According to recent mortgage statistics, more and more homebuyers are turning to private mortgage lenders. One of the biggest reasons for this is that the mortgage financial stress test that was introduced at the beginning of this year is making it more difficult for people to qualify for mortgages on the homes that they want. Other reasons for turning to private mortgages include being new to the country and not being able to prove income or wanting to purchase a unique type of property such as a tiny home that the bank won’t finance.
What is a Mortgage Pre-Approval and Why Should I Get One?
If you are ready to take the plunge and finally purchase a home of your own, one of the first steps that you should take is to get pre-approved for a mortgage. Be sure not to confuse mortgage pre-approval with pre-qualification. Mortgage pre-qualification is a quick process where a lender will determine how much of a mortgage you could qualify for based on a quick assessment of your debts and assets. Pre-qualification however, does not guarantee that the lender will give you a mortgage. Mortgage pre-approval is a lengthier process in which the lender checks you credit and verifies the information that you have given. In pre-approval, the lender is actually making the commitment to provide you with a loan.