When you purchase a home and require mortgage financing, lenders will want to confirm the source of the down payment for a variety of reasons. This is to ensure that there is no hidden loans or monthly obligations that would effect your monthly carrying costs, abide by the anti money laundering act and to also assess your suitability to carry the debt. Here are some things to keep in mind when it comes to down payment sources. Gifted funds must be from an immediate family member (MOTHER,FATHER, SISTER, BROTHER, SIBLING, GRANDPARENT) Minimize transfers between bank accounts Out of country assets must be in Canada…

What are the risks of Condition-Free Offers? Great question. In today's market, buyers are often in multiple offer situations and want to submit a clean offer that has no conditions. This is never advisable, but we do understand that this is a very competitive market. If you have been pre-qualified by a licensed mortgage broker, you may been vetted by one or more lenders, however, the property has NOT been vetted. Below are some issues that could affect a lender’s willingness to lend on a particular property. Please note that this list is not exhaustive. There could be other issues impacting a lender’s decision. • Water damage, leaks…

A mortgage solution specifically designed to help new residents to Canada realize their dream of home ownership. DEFINITION Immigrated in the last 5 years. Must have Permanent Resident status/landed status OR work permit. BORROWER QUALIFICATIONS Must have permanent residency or landed immigrant status or valid work permit. Must have a minimum of 3 months with the same employer. PROPERTY TYPE Owner Occupied purchase only. Maximum 4 units. Maximum 1 unit for temporary residents. AMORTIZATION 25 years. Certain lenders will allow up to 30 years CREDIT REQUIREMENTS AND DOCUMENTATION • Canadian or International credit report; or a letter of reference from the borrower’s financial institution in their country of origin confirming a minimum…

Fixed Rate Mortgages Fixed rate mortgages offer a stable payment that does not change throughout the term.  With some lenders you have the ability to port and increase via blended rate or refinance with blended rate to avoid a penalty Statistically, most people don’t make it through a 5 year term for a variety of reasons such as: 1.- They move 2.- Need to refinance to access equity for debt consolidation 3.- To buy another property Bond Yields Unlike Prime which is dictated by Bank of Canada, fixed rates vary based mainly on bond yields. Bonds are typically safer investments than stocks. When the economy is less stable and stocks…

Variable rate mortgages have the simplest calculation. The penalty to break your mortgage is 3 months simple interest. The lender will either calculate your penalty on their prime rate or contract rate, which includes your discount. If your mortgage balance is $500,000 and the prime rate is 3.20% and the lender is basing the penalty on the prime rate, the penalty is $4,000.00. (Mortgage Amount x Interest Rate /12 Months) x 3 Months ($500,000 x 3.20% / 12) x 3 = $4,000 If the lender calculates the penalty based on the contractual rate and your rate was 2.40%, then your penalty would be $3,000.00 (Mortgage Amount x Interest Rate…

Original Article Source Credits:   Canada.ca , https://www.canada.ca/

Article Written By:  NA

Original Article Posted on:  2020-09-16

Link to Original Article:  https://www.canada.ca/en/financial-consumer-agency/services/mortgages/reduce-prepayment-penalties.html

Original Article Source Credits:   Financial Post , https://financialpost.com/

Article Written By:  Shelly Hagan and Theophilos Argitis

Original Article Posted on:   January 21, 2021

Link to Original Article:  https://financialpost.com/news/economy/bank-of-canada-governor-isnt-worried-about-a-housing-bubble

What are the risks of Condition-Free Offers?

Great question. In today's market, buyers are often in multiple offer situations and want to submit a clean offer that has no conditions. This is never advisable, but we do understand that this is a very competitive market.

If you have been pre-qualified by a licensed mortgage broker, you may be vetted by one or more lenders, however, the property has NOT been vetted. Below are some issues that could affect a lender’s willingness to lend on a particular property. Please note that this list is not exhaustive. There could be other issues impacting a lender’s decision.

Original Article Source Credits: canada, https://www.canada.ca

Article Written By: NA

Original Article Posted on: 2020-09-17

Link to Original Article: https://www.canada.ca/en/financial-consumer-agency/services/mortgages/renew-mortgage.html

Original Article Source Credits: betterdwelling, https://betterdwelling.com

Article Written By: Stephen Punwasi 

Original Article Posted on: DECEMBER 18, 2020 

Link to Original Article: https://betterdwelling.com/canadian-markets-are-seeing-a-real-estate-boom-with-population-declines

Original Article Source Credits: canadian mortgage trends, https://www.canadianmortgagetrends.com

Article Written By: Steve Huebl

Original Article Posted on: December 4, 2020 

Link to Original Article: https://www.canadianmortgagetrends.com/2020/12/first-time-home-buyer-incentive-to-become-more-useful-in-select-markets

Original Article Source Credits: financialpost, https://financialpost.com

Article Written By: Kevin Carmichael  

Original Article Posted on: Dec 18, 2020   

Link to Original Article: https://financialpost.com/news/economy/bank-of-canada-governor-wants-to-avoid-housing-policy-mistakes-of-the-past

Original Article Source Credits:   CANADIAN MORTGAGE TRENDS , https://www.canadianmortgagetrends.com/

Article Written By:  Steve Huebl

Original Article Posted on:  November 11, 2020

Link to Original Article:  https://www.canadianmortgagetrends.com/2020/11/optimism-returns-to-the-markets-could-fixed-rates-start-to-rise/

Original Article Source Credits:   Move smartly , https://www.movesmartly.com/

Article Written By:   David Larock

Original Article Posted on:  NA

Link to Original Article:  https://www.movesmartly.com/articles/why-spiking-inflation-wont-impact-canadian-mortgage-rates

Original Article Source Credits:   MortgageBrokerNews.ca , https://www.mortgagebrokernews.ca/

Article Written By:  Ephraim Vecina 

Original Article Posted on:  18 Nov 2020

Link to Original Article:  https://www.mortgagebrokernews.ca/news/cba-on-how-many-mortgages-remain-deferred-at-canadas-largest-banks-335353.aspx

Original Article Source Credits:   CANADIAN MORTGAGE TRENDS , https://www.canadianmortgagetrends.com/

Article Written By:  Steve Huebl

Original Article Posted on:  November 17, 2020

Link to Original Article:  https://www.canadianmortgagetrends.com/2020/11/record-low-supply-and-interest-rates-fuel-record-october-home-prices/

Original Article Source Credits:   Better Dwelling , https://betterdwelling.com/

Article Written By:  NA

Original Article Posted on:  NOVEMBER 17, 2020

Link to Original Article:  https://betterdwelling.com/canadian-real-estate-sales-slow-for-the-first-time-since-the-beginning-of-pandemic/

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