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…

It is a good idea to budget between 2 - 2.5% of the purchase price when buying a home to cover the closing costs. These costs can include, but are not limited to the following: Land transfer tax Legal fees Appraisal Property Taxes PST on Insurer premium Mortgage Registration Title Insurance Bridge Loan costs if a current home owner  Costs associated with a new build (ensure your lawyer reviews the offer prior to sign off) Special assessments, increasing condo fees and lawsuits It is a good idea to buffer in $ 1,000 to cover misc costs such as property tax credits to the seller.

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…

If you’re using a mortgage broker to assist with your financial transaction, you want to make sure you’re working with the best. A qualified mortgage agent will evaluate your present personal and financial situation and find a mortgage deal that is tailored to your needs. 

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

Article Written By:  NA

Original Article Posted on:  2021-01-22

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

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

Article Written By:  Liz Beddall

Original Article Posted on:  February 1, 2021

Link to Original Article:  https://financialpost.com/moneywise/mortgage-rates-may-rise-as-bank-of-canada-ends-emergency-pandemic-program-2

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

Article Written By:  Steve Huebl

Original Article Posted on:  March 9, 2021

Link to Original Article:  https://www.canadianmortgagetrends.com/2021/03/mortgages-lead-credit-growth-as-delinquency-rates-decline/

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

Article Written By:  Daniel Wong

Original Article Posted on:  MARCH 11, 2021

Link to Original Article:  https://betterdwelling.com/canadian-real-estate-is-playing-with-fire-approaching-classic-bubble-bmo/

Getting a mortgage can be a complicated process, and one can end up making many mistakes if one is not aware of the rules and regulations regarding the process. What you don’t know can definitely hurt you. Understanding these mistakes is important if you want to avoid making them. With understanding comes the knowledge necessary to make sure that your mortgage process moves smoothly. This is it is necessary for you to do your research before committing to a particular broker, lender, or mortgage program. 

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

Original Article Posted on:  January 11, 2021 

Link to Original Article:  https://financialpost.com/news/economy/hot-property-market-stokes-rising-optimism-for-canada-consumers

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

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

Article Written By:  Stephen Punwasi

Original Article Posted on:  JANUARY 25, 2021

Link to Original Article:  https://betterdwelling.com/canadas-real-estate-market-is-the-fastest-growing-in-the-g7-and-the-most-inflated/

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.

Working with an experienced mortgage broker is a great plan when buying a house. They can help pull your credit score, achieve a pre-approval, and close your mortgage in no time, so you can move into your dream home. However, misconceptions about these professionals have misled many individuals into believing that hiring a mortgage broker is not a good idea.