Tag Archives: Buying a home

Canada Guaranty Buys Market Share

Canada Guaranty, the mortgage insurer you never heard of, is gaining momentum in the mortgage industry.  What’s interesting is that they are actually paying the banks to send them business.  According to Royal Bank’s own disclosure document, they receive $140 for every mortgage closed and insured with Canada Guaranty.  As long as this fact is disclosed and the mortgage insurance is equal to that offered by CMHC and Genworth then … Read More

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Mortgage Gymnastics

Arranging a mortgage can be an exhausting process, especially if you aren’t familiar with the process.  By the time the whole thing is done you can be left feeling like you’ve just completed  a gymnastics competition. In order to ward off the potential pains and strains make sure you familiarize yourself with the process and work with a trusted mortgage professional. Although the steps are the same for all mortgages, … Read More

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Mortgage Rules Mean More Renters

The new tighter mortgage rules not only mean that we’ll have to pay-down our mortgages faster, but that 9% of potential home buyers will be kept out of the market completely.  Most Canadians are financially responsible and can support the idea of paying down our mortgages faster, even if it’s a practice enforced by the Department of Finance.  Although higher mortgage payments might cause some short term pain, the long … Read More

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Why You Need CMHC Insurance

CMHC provides mortgage default insurance to the lender in case the borrower defaults and there isn’t enough money after a sale to pay-out the mortgage.  There are 2 other Canadian mortgage default insurers in Canada that provide identical products, Genworth Financial and Canada Guarantee. Regulated financial institutions are prohibited from lending beyond 80% of the value of your home unless they obtain this mortgage default insurance.  Although this premium is … Read More

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Debt Levels Not Too High

It seems callous to say it, but Ottawa is making too much noise about Canadian debt.  Of course we’d all like to be debt free and there are some of us who are in over our heads struggling with job loss and debts payments, but that’s not what Ottawa’s targeting.  Mark Carney and the Bank of Canada have been looking at the national debt to income ratio which can be … Read More

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Are Non-Bank Mortgages Safe?

There are dozens of mortgage companies across the Country providing consumers with a broad array of choices.  Although there are only a small number of banks, they dominate the market due to their strong brand names and their vast branch networks.  But that doesn’t mean they’re better. Non-bank mortgage lenders offer mortgages with similar and sometimes better pre-payment privileges, features and benefits.  More importantly they often offer lower mortgage rates.  … Read More

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Mortgage Rules Squeeze Out First Time Buyers

Canada’s Minister of Finance, Jim Flaherty, has tightened mortgage rules 4 times in as many years.  The objective was to slow down the housing market and to keep Canadians from racking up too much debt.  Speaking on CBC radio this past weekend, Mr. Flaherty indicated that no more rule tightening will be done.  “We’ve done enough, I do not intend to do any more” Mr. Flaherty announced on the radio … Read More

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3 Tips to Boost your Credit Score

Having a good credit score is an essential part of not just getting a good mortgage rate, but also for qualifying for a mortgage in the first place.  If your score falls below 600 then some immediate action is needed.  Here are some steps you can take to boost you numbers. Make payments every month While this may sound like a no brainer some people don’t think that missing a … Read More

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Appraisals Don’t Determine Purchase Price, the Market Does!

Constant government mortgage rule tightening and warnings of too much consumer debt has put property valuations and appraisals under a microscope.  Many critics are concerned that mortgage participants aren’t performing sufficient due diligence on a property’s value, and are contributing to escalating values and debt. The truth is neither a lender nor an appraiser can decide a property’s value.  That decision is left up to market forces.  The definition of … Read More

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Ontario Land Transfer Taxes

Many home buyers are caught off guard when their lawyer tells them to bring in an extra $5,000 to close their purchase.  If they’re buying a home for $450,000 and putting 5% down then they are prepared for the $22,500 downpayment but can be surprised by the additional expenses.  These range from: Property tax adjustments Legal fees and disbursements CMHC premium tax Land Transfer tax Of these expenses, the land … Read More

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