Blog
Some lenders require payment of property taxes with the mortgage payment to ensure they are paid up to date. The city or municipality has the ability to place a caveat on the title of the property to collect arrears. This compromises the security position of the first mortgage and lenders are not comfortable with this. …
April
Due to change in mortgage legislation, it is now required that any client qualifying for a product other than a 5 year fixed rate must be able to carry the mortgage at the benchmark rate in the event of a rate rise. This is to ensure a client that qualifies for a low 1-year rate…
April
The ability to make payments is a large factor in lending decisions, but it is one of many factors. Strong repayment history (credit), character, collateral, capacity and capital are all evaluated in the lending decision. The 5 C’s of credit. Now certain lenders will make exceptions on a deal by deal basis, but as a good…
April
As a broker, we have a third party backed by Manulife Financial that provides life and disability insurance to clients who elect this coverage. It is not mandatory, however, it is highly recommended that our clients have some form of work, independent insurance, or mortgage life coverage.
March
…..I don’t want to show them how I spend my money. The lender is following the Anti-Money Laundering guidelines that are set out by the Federal Government. Any funds that have not been in an account for 90 days require their source of origin established. The lender is not looking to see where you spend…
March
The market has started to tier pre-approval rates from approval rates. This is due to the fact that pre-approvals tend to be held a longer time frame than approvals, which the lender runs more risk on the rates the longer they have to hold them. Also, lenders have to hold aside a percentage of funds…
March
A pre-approval can be done on the spot and have an automatic response back within minutes of the application through some lenders if their rate is the best. This works great for clients where credit, ratios, and down payment are very straight forward. Otherwise, it takes about 24 hours to have a lender look and…
March
Does pulling my credit affect my credit score? …and how many times do you pull it? It does have an impact, but a very minimal one compared to the benefit of knowing your financial position and it can be gained back very quickly from good future payments. Mortgage brokers are not like financing departments at…
February
What fees will banks absorb for me? When it comes to Purchases, there are lenders that will pick up the appraisal cost if required. On Switches/Transfers all fees except for the discharge fee (approx. $250.00) are picked up by the new lender. On Refinances there are lenders that will pick up appraisal and legal fees…
February
I wish we could, but for accuracy, it’s really hard to do this. We can do a verbal application, but we need to pull a credit report which requires written consent. A credit report is much more than just a score, it’s a lifetime of payment history which can help get a deal approved or…
February
… and should I shop around for my best broker? Contrary to popular belief, mortgage brokers are not all cut from the same cloth so make sure you’re comfortable and your broker is qualified to earn your business. Every broker has a different experience level, employment background, and understanding of policy/procedure. Also, every brokerage is…
February
We’ve never used a mortgage broker, but have been told to call one before we accept a mortgage quote from our bank. What is the benefit and what is the cost? The main benefits of a broker are that we can scan a large market place that consists of banks, credit unions, trust companies, and…
January
Understanding mortgage differences Getting financing can be a daunting process. It’s time consuming (and sometimes intimidating) going from bank to bank, and can be disappointing when you can’t afford the home you were hoping for… Or when you are refused financing. All Canadian lending institutions follow national lending rules, but where they differ is with…
April
Mortgages can be a confusing subject. Buying or selling a home is an emotional decision and can be very stressful. As a mortgage expert, I will take the confusion out of mortgages and make the process as smooth as possible. In Canada, there are two major categories that mortgages fall into, either closed or open.…
November
In Canada, there are many benefits to owning your own home, here’s our list of the top five: 1. Tax breaks. The Canadian government offers a variety of tax breaks and credits for homeowners that you can take advantage of. 2. Gains Generally, in Canada, we’ve seen steady growth in land and home values year…
November
We’ve got plenty of great finance tips on this site, but here’s five that you may not have thought of for your first home Start budgeting – To help get a handle on your expenses now, and perhaps weed out unnecessary expenses to help you reach your down payment or mortgage payment goals, you should build…
November
Take a minute and think about what your dream home would be look like. Now, take into consideration your pre-approval amount. Let’s face it; very few people can afford their dream home as their first. Chances are you’ll have to make some sacrifices, but before you start your search it’s very important to consider the…
November
It’s a simple fact, many homebuyers place offers on homes without knowing how much they will be approved for. Seems silly right? Finding your home before securing financing is a waste of time and money. By the time you do secure financing, you may find out that your home was out of your price range,…
November
There are generally two ways to get a mortgage in Canada: from a bank, or from a licensed mortgage professional. A bank will simply offer you a mortgage from their collection of products that best fits your needs. On the other hand, a licensed mortgage professional will search Canada’s largest banks, credit unions, and trust…
November
If you are looking for a new home, be sure you are pre-approved. With a mortgage pre-approval, a licensed mortgage professional can do a more complete verification prior to sending you shopping for a home, and with that done, the dollar figure you are going shopping with is actually what you can spend. The mortgage…
November