9 Things to do before you list your home for sale

Home for sale

9 Things to do before you list your home for sale Thinking of putting your home for sale? A homeowner can be well prepared by following these 9 things to do before you list your home for sale. 1. Know why you really want to go Some reasons are obvious, such as the need to sell if you’re moving to another city or putting in an offer on a new home. Other needs may be less definite, such as outgrowing your space or concerns about cash flow. By working with a mortgage professional, you can assess financing options and the…

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6 Mortgage terms Homebuyers should know

6 Mortgage Terms Every Homebuyer should know

Mortgage terms can be daunting for a homebuyer . Understanding these 6 mortgage terms homebuyers should will be helpful when you consider buying your first home! Here are the 6 Mortgage Terms: High-ratio mortgage A Homebuyer that purchase a home with a downpayment of less than 20% will have a high-ratio mortgage. All high-ratio mortgages are covered by mortgage loan insurance also known as mortgage insurance. The three mortgage default insurers in Canada are CMHC, Genworth and Canada Guaranty. Low-ratio mortgage Also known as a conventional mortgage, a low-ratio mortgage is one where the homebuyer has made…

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5 Money Smart Ways to Use Your Tax Refund

Money smart

5 Money Smart Ways to Use Your Tax Refund Most of us never expect to get much of a refund, or maybe you are one of the lucky ones who can count of getting one each year. Be Money Smart – make sure you have a plan in place, otherwise, like all large sums of money if you don’t do anything with it, it will get spent one way or another! Here are 5 Smart ways to use Your Tax Refund: 1. Contribute it to your RSP This will benefit you again at the next tax time as you will…

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3 Quick Tips for Making an Offer on a Home

Making an Offer on a Home? Ideal homes often receive offers within days of being listed.  A buyer can increase their chances of securing their ideal home by being prepared! 3 Quick Tips for Making an offer on a Home: 1) Visit a Mortgage Broker Sit down with a Mortgage Broker and find out what you qualify for. It isn’t just about getting preapproved with a great rate.  It is about being prepared for when you do put an offer in. Know what you qualify for, know roughly what your payments will be and what costs are associated with purchasing…

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Interest Rates Rise

House Hunting: 5 Tips to help with the Homebuying Process
Prime Interest Rate Increased: What is the affect on your Variable Rate Mortgage?  It had been anticipated that Bank of Canada was going to increase their lending rate and they did by 0.25%.  Banks followed suit and increased their prime lending rate by 0.25%. There has been quite a stir recently putting many homeowners in a panic that rates were going to spike up quickly and concerns with those who are currently in variable rate mortgages. Banks prime rate increased to 2.95%, just under 3% that it was at September 2010.  It is a small increase of a quarter of percent. Nothing too major. My inbox and phone has been going steady with homeowners concerned with these changes.  Let’s have a look at the historical rates and the impact a 0.25% increase has on mortgage payments.

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CMHC premiums increase for Homebuyers

CMHC premiums increase

CMHC premiums increased on March 17, 2017. Mortgage insurance or mortgage default insurance, commonly referred to as CMHC insurance, protects the lender in the case the borrower defaults on the mortgage. Mortgage default insurance is required on all mortgages with down payments of less than 20%. This CMHC premiums is added onto your mortgage balance and factored into your monthly principle and interest payment. How Much more will I be paying for my Mortgage Default Premium? Say you are purchasing a $300,000 home with 5% down ($15,000), 5 yr fixed rate is 2.69%. Before March 17, 2017: Premium:  3.60%…

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New Rules Limit First Time Homebuyers

Last week  (Oct. 2016),  the Federal government announced tighter mortgage rules that will affect home buyers, especially First Time Homebuyers. The tightened mortgage lending rules will limit the amount many Canadians can borrow to help ensure that when interest rates rise, they’ll still be able to make their payments. These new rules take effect Oct 17, 2016 Under the new rules, there is a stress test for all home buyers that are putting less than 20% down. The stress test is where borrowers must qualify for their mortgage using a higher interest rate than they will actually be paying on their mortgage. Currently the…

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Types of Insurance when buying a home

Home

4 Types of Insurance Related to your home MORTGAGE DEFAULT INSURANCE is an added premium into your home mortgage. Mortgage default insurance is required for those with a High-Ratio mortgage (less than 20% down) or borrowers with higher risk. This policy is in place to protect lenders from risk of borrower default. The 3 mortgage default insurers in Canada are CMHC, Genworth & Canada Guaranty. You purchased a big investment and you are going to want to insure the building & contents with FIRE & HOME INSURANCE.  Fire insurance policies pay out the mortgage lender if the house burns down. Mortgages won’t fund…

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What Are Your Real Closing Costs?

What are closing costs?

What are Closing Costs? Congrats! You saved for a downpayment and now you are ready to buy. The mortgage and downpayment cover the purchase price of the home. There are other costs involved with purchasing a home, referred to closing costs. Consider these when you are budgeting for the full cost of your purchase Appraisal: If you are purchasing a private sale, you will require an appraisal. If you are purchasing a home with 20% down, chances are you may need an appraisal as well. Approx. cost $250-$350. Home Inspection: Whether you are buying a brand new home or an…

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Downpayment Options

Downpayment options

What Are My Downpayment Options? One of the biggest challenges of home ownership is saving the required downpayment. Your lender will be looking for a minimum 5% down payment on your property. There are generally 5 options available. Your down payment can come from more than one source. Using Your Own Savings or Investments One of the most straight forward down payment options is your own savings or investments.  You will need to provide recent 3 month bank statements to show the history of the savings.  It is required that the full amount of  savings for your down payment must be in…

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