Mortgages and COVID-19

Mortgages and COVID-19

It’s a confusing time for everyone and starting to feel a bit like the twilight zone. Here’s an update on the impact COVID-19 is having on mortgage rates, qualification guidelines and mortgage payment difficulties. We saw mortgage rates at the lowest they had ever been last week. Now banks are starting to increase their rates […]

Benchmark Rate More Dynamic

Benchmark Rate

Finance Minister, Bill Morneau, announced changes to the benchmark rate that will come into effect on April 6, 2020. This is the rate a consumer has to qualify at for an insured mortgage, also known as the “Mortgage Stress Test.” The new benchmark rate will be the weekly median 5-year fixed insured mortgage rate from […]

GDS and TDS Calculations

Total Debt Service

Learn how mortgage lenders calculate your debt service ratios, GDS and TDS. You need to know these two basic calculations so you can crunch the numbers to find out what your budget and affordability is. Gross Debt Service (GDS) Lending guidelines allow you to use up to 32% of your gross monthly income towards housing […]

First-Time Home Buyers Incentive Plan

First-Time Home Buyers Incentive Plan

The Liberal government announced legislation for a new Canada Mortgage and Housing Corporation (CMHC) First-Time Home Buyers Incentive Plan. It’s a shared equity mortgage program that would give eligible first-time home buyers the ability to lower their borrowing costs by sharing the cost of buying a home with CMHC. If the legislation passes, it will […]

Questions to Ask a Mortgage Lender

Questions to Ask Your Lender

Here are some important questions that we recommend asking a mortgage broker before shopping for a new home. They will help find a lender that’s best suited for you and your unique needs. What are your qualifications as a mortgage lender? Ask your mortgage lender how long they have been doing mortgages for. The more […]

Mortgage Stress Test

Mortgage Stress Test

The “stress test” rule can be a little complicated to understand. Here’s a break down of why the rule exists and how it will apply to your mortgage. What does the mortgage “stress test” really mean when applying for a mortgage? When you buy a home in Canada your mortgage is “stress tested” to ensure […]

Cash Back Mortgage

What is a cash back mortgage?  With a cash back mortgage, you receive a lump sum cash rebate when your mortgage closes. You can use the money to furnish your home, pay off debt or fill your savings account for a rainy day. How much will it cost? Interest rates are slightly higher on a […]

What’s Stopping You from Owning a Home?

Owning a Home

Owning a home is considered to be a rite of passage for many Canadians. It symbolizes independence. You set the rules, make the decisions, take financial responsibility and invest in your future. Renting doesn’t give you much control over the property. You are under the landlord’s mercy when it comes to following rules written in […]

Finalizing Your Mortgage

Finalizing your mortgage approval

Now that you have a mortgage approval in place and signed off on all of the purchase agreement conditions, you’re closer to taking possession of your new home! There are a few more steps to take before possession day. Here’s a list of the next steps so you can be better prepared: □ Confirm the […]

Bridge Financing

Bridge Loan

Buying your next home may come with new challenges than when you bought your first home. Many homeowners will use the home equity they built for a portion or all of the down payment on their next home. When purchasing a home, you are required to give the down payment funds to the lawyer before […]