Real Estate Blog

Mortgage Rate: Not the only thing to consider

Mortgage Rate: Not the only thing to consider   Below are two examples that show why rate is not the only thing to consider when choosing a mortgage lender. $360,000 Scotia Mortgage 1 year into a 5-year term, the clients payout their mortgage and are charged a penalty. • Mortgage penalty the clients were actually charged $9500 • Penalty the clients would have been charged with a different lender $3200 • Difference $6300 $320,000 BMO mortgage 3 years into a 5-year term the clients went through a divorce and had to sell their home and payout their m...

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Rental Suites Increase Qualifying Income

Rental Suites Increase Qualifying Income In today’s market with stricter mortgage rules, a rental suite can make a huge difference when qualifying for a mortgage and knowing which lenders offer the biggest bang for your buck is even more important. Different lenders allow different amounts of the rental income to be added into your qualifying income. Some lenders only allow 50% of the rental income to be used when qualifying for a mortgage, while others allow 80% and even 100%. If a lender allows 50% of the rental income, and the rent is $1200 per ...

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Markets Are Stabilizing – House Affordability Isn’t

Markets Are Stabilizing – House Affordability Isn’t It looks like most housing markets in Canada are heading towards stability this year, not a crash, and while that’s good news for the economy at large, not everyone will be cheering.  A soft landing is in the cards. Not welcome news for potential home buyers, as affordability will only worsen in the year ahead, writes John Stackhouse, senior VP, office of the CEO of RBC, in an analysis published this month. Although the cost of borrowing has increased as the Bank of Canada has hiked i...

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8 Tips the Banks Won’t Share with You in 2019

8 Tips the banks won’t share with you in 2019 If you’ve got a mortgage renewing or plan to get a new one this year you probably know that it’s more complicated than it used to be. That said, I have some tips and strategies that can help you get the mortgage you need, tweak the one you have, or help you plan for renewal. To get the best deal, you need options. When you go to your bank, you’re talking to one lender. Their best deal might not be THE BEST DEAL (last months article proved that). It’s also difficult to qualify a...

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Renewing Your Mortgage

Renewing Your Mortgage According to a recent survey of 2,000 Canadian homeowners, 19% will be renewing mortgages next year, 82% of whom are currently in a fixed rate mortgage. If you are one of these people the prospects aren’t as bleak as you may think!  That’s because those five year fixed terms were locked in on average at 3.65%, and mortgage holders can renew at similar rates today.  What this highlights is the way lenders work and the variation in rates that people get. Five years ago Canadians didn’t all get the best rates availab...

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Should I Buy or Wait?

Should I Buy or Wait?   Should I buy now or wait a year as prices are dropping, but interest rates are rising? I hear this question daily, and my usual answer drones on about interest rate projections, supply, and demand for homes blah blah!! So I thought I would run the numbers and see what makes the most sense based on the numbers, not my opinion! Option 1 – If you bought a home for $100,000 and put 5% down and had an interest rate of 3.59% on a 5-year term amortized over 25 years you would have monthly payments of $498.46.  At the end of th...

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