Debt Consolidation: Types of Debt and How-to Successfully Consolidate Your Debt in Canada
Debt statistics last year in Canada were extremely shocking to most Canadians when they learned that by the end of March 2015. It’s unlikely that you only have one debt, but more likely that you have many. Merging multiple debts into one loan is called debt consolidation.
First Time Home Buyer Mortgage: Canadian Statistics, Facts & Next Steps
If you have been renting for many years, you may be considering purchasing a home for the first time. You have sacrificed to save up for your down payment, but now you’re ready to buy. Buying a home can be exciting and scary, all at the same time, especially since it’s a big purchase.
How-to Get The Best Mortgage Rates in Canada?
The mortgage industry has changed tremendously over the last five years. If you’re a first-time homebuyer, looking for a second mortgage, or you’re self-employed you want to get the best mortgage rates in Canada. First, you must understand how the mortgage industry works. When applying for a mortgage you should do your research, including: Comparison shopping Find out and/or improve your current credit score Use a mortgage affordability or payment calculator A number of qualifying factors are considered when you’re being considered for a mortgage. Since mortgage rates have a tendency to vary, these factors assist lenders to determine the best mortgage rates for you, and make sure you qualify for the mortgage itself. A mortgage professional wants to help you in minimizing your monthly payments and interest rates as much as possible. If you are well-prepared, than your mortgage broker will be too. Comparison Shopping Before hiring your mortgage broker, it’s always a good idea to do some comparison shopping yourself. One of the most common and best ways to start your search is to start with your local yellow pages. A yellow page listing provides a lot of vital information about possible lenders, such as: Phone number, directions, email, and website information Hours of operation Product/service lists Recognitions and/or awards Customer reviews Payment methods accepted Other vital information you may need (Mortgage Brands, Specialties, Languages, etc.) It’s always great to hear about other positive customer experiences and see awards of public recognition that a brokerage has received throughout the years. This shows that you can trust them. Find Out Your Credit Score & How You Can Improve It Today the mortgage industry lends on a tiered pricing basis. This means that depending on the current criteria, your mortgage rate may be adjusted as required. The higher your score the better your interest rate will be. Having a lower score does not mean you will not qualify, but you can expect to being paying a slightly higher interest rate and down payment. If you are concerned about paying a higher interest rate based on a low credit score, you can improve your chances of getting the best mortgage rates possible by starting to monitor and repair your credit. Fixing your credit can take some time, but if lenders see that you’re making an effort this will go a long way too. Here are a few tips to help you improve your credit now: Keep any current loans from defaulting – make your payments on time every month Review your Equifax and TransUnion credit reports for any installment accounts, revolving accounts, and new or past-due collection accounts Get in touch with the collection agencies to make payment arrangements Review your credit reports for any potential errors and file a dispute to have them removed or updated (if necessary) Determining If a First or Second Mortgage Is in Your Budget With the world-wide web there are tons of great mortgage tools that can help you to determine the affordability of your new or second mortgage, such as these: Using either of these calculators will help you to make a wise decision regarding your purchase. We understand that throughout any buying process questions always arise, no matter how much research you do, you can get in touch with AKAL Mortgages to discuss your mortgage needs at any time. When we say YES! We stand behind our promise.
Mortgages for the Self-Employed: The 5 Things You Should Know
In Canada, almost 20% of people are self-employed. When you’re self-employed, getting a mortgage is not as difficult as it may appear. Although mortgage approval criteria are strict, private self-employed mortgages has made it possible to get a quick approval. Before approaching a mortgage lender, you should make sure that you are prepared well in advance. In order to be prepared, you need to understand and be able to provide any and all documents required to help you meet the criteria. Here are 5 important things for your to consider.
The Ultimate Guide to Private Mortgages
If you are a Canadian that has ever had a dream of owning your own home, but your mortgage application was refused by the bank, you may want to consider researching private mortgage lenders. The federal government has implemented new rules for mortgage borrowers, which has increasingly made private mortgages a more popular option among-st home buyers and property investors. It’s quite simple, banks are strict and it’s often hard to get approved.
Fixed or Variable Rate Mortgage? Which one is better for me?
What does this mean for people looking for a mortgage, specifically – is a fixed or variable rate mortgage plan the better option? Unfortunately there is no concrete way to say which option is the ‘right option’ as each individual homebuyer must address his or her own personal needs rather than following remarks from economists. Understand the differences between variable and fixed mortgage rates, which are most popular, and if a variable or fixed mortgage rate is most suitable for you. Bank of Canada affects Variable Rate Mortgages whereas Bond Market affects Fixed Rate Mortgages. One of the first decisions homebuyers and mortgage shoppers face is whether to select a fixed rate or variable rate mortgage. Both types of mortgages can be beneficial depending on many factors, including your current financial situation, your comfort level with fluctuating rates and your credit score. Learn more about your two options so you can make an informed decision.
What comes first – kids or retirement? Plan now or suffer later
Most parents take the responsibility of caring for their kids very seriously, but does care mean financial support and if so, how much? Most parents love their kids. Most kids love their parents. Most parents take the responsibility of caring for their kids very seriously, but does care mean financial support and if so, how much? How much money is enough to retire? Only you can figure that out It’s a financial question that people either strive to answer or choose to ignore. But since scary headlines tend to attract more attention than rosy ones, one has to wonder if all the talk of a retirement crisis is causing people who are otherwise financially independent and have enough to retire to delay retirement unnecessarily. A Manitoba Agriculture study in 2004 estimated that the average cost to raise a child to age 18 was $166,761 at that time. A subsequent 2011 study by MoneySense pegged the cost at $243,660. Either way, it seems an annual average budget between $9,000 and $13,000 is a fair estimate. Those average costs tend to be higher in the earlier years (due to child care costs) and lower in the later years. Like many other family expenses, those with higher incomes tend to spend more on their children on average than those with lower incomes.
How will Canadian seniors deal with lack of funds in retirement?
For some, a reverse mortgage is often the only solution to financial crises The lack of pension reform combined with seniors living longer than ever is leading to a lack of finances in old age – a troubling issue that needs to be discussed in families across the country. That’s according to HomEquity Bank experts, provider of the CHIP reverse mortgage. “Canadian seniors want to remain in their homes as they age. However, there are many that could lose their homes because they haven’t saved enough for retirement, some will be forced out due to a lack of information on options and many of them have the answer in front of them and don’t know it,” explained HomEquity Bank VP National Sales, Jeff Spencer.
Should you give your child a down payment to buy a house?
When it comes to money decisions, it can be hard to figure out the right thing to do. Money is about power, emotion, morality, and security, among other things. So in this space, we gather personal finance luminaries to weigh in on a financial quandary. This week’s question: Should you give your child a down payment to buy a house? Kevin O’Leary, author of Cold Hard Truth on Family, Kids & Money: Giving your child a down payment for a house is an incredibly bad idea. Invariably, your “gift” will be like the first taste of a drug — and before you know it, your son or daughter will be a full-fledged debt addict. Your down payment in most cases assumes that they will be taking on a mortgage for the rest of the home’s value. This may be on top of the student loan they already have, plunging them further into debt. Many people make the assumption that buying a house with mortgage debt is always a good idea because the home value will appreciate over time. This assumption made sense over the last 25 years, as rates did nothing except go down. The direction of real estate’s value during periods of rising rates is far less certain. My bet is that home values will be stagnant over the next five to seven years, which is the average time that people own a home. That is because interest rates are likely to rise over the same period.