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.
How a Commercial Mortgage can help your Business?
If you operate a business that relies on a brick and mortar location, you may start out renting but at some point you will need to decide whether renting is really your best option or if you should get a commercial mortgage. The answer to this question depends on a number of factors including how much space you need, the type of property that is most suitable for your business, cash flow etc. But if you think that getting a commercial mortgage might be right for you, there are many advantages. What is a commercial mortgage? Let’s start with defining exactly what a commercial mortgage is and what it can do for your business. Just like a residential mortgage, a commercial mortgage is a loan that may be used to buy a premises. But it can do much more than that. Commercial mortgages can also provide the necessary cash to develop your business property, extend the property you already have or to purchase land.
When should you opt for a second mortgage?
A second mortgage can be a useful tool if you want to consolidate debt, invest in a business or pay for a major purchase such as a home renovation. But it is not the right tool for everyone. When you take a second mortgage, you have to keep in mind that you will be adding to your monthly mortgage payments, and potentially jeopardizing your home should you become unable to make payments in the future. So how do you know if a second mortgage is right for you? To know for sure, you really have to sit down with your mortgage broker and go through the numbers. But here are a few guidelines that can help give you an idea of whether you should opt for a second mortgage.
First Time Home Buyer Mortgage Programs
Are you in the market for your first home? What an exciting time! It may seem like buying a home for the first time would be more difficult, but the good news is, that’s not really true. The government actually wants to see people buying homes and they have a few different incentives to help you make that possible. You may not have to be buying your first home to qualify for these benefits either. To be considered a first time home buyer by the CRA (Canada Revenue Agency) you cannot have occupied, as a principal place of residence, your own home from January 1, of the fourth year from the year of your withdrawal, ending 31 days prior to the withdrawal of your RRSP fund, your spouse cannot have owned a home where you resided together during the same period described above; and you must be a resident of Canada.
Do Mortgage Brokers Get You Better Deals?
Mortgage brokers can definitely get you better deals! There are quite a few ways that having a mortgage broker can save you money… especially If you believe that time is money! For starters, calling one mortgage broker is like calling fifty Banks, Credit Unions, and Trust companies… that would take quite a bit of time to do yourself, and would not likely yield the same results.