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Mortgage Articles
What Is Mortgage Insurance?
Quite often, when speaking to first-time buyers, the subject of mortgage insurance becomes the focus of the conversation. Many ill-informed buyers assume the position of "I'm not going to buy a home until I can save enough money to not have to pay the mortgage insurance premium". This type of thinking will keep many a homebuyer out of the real estate market for a long time. Let's clarify what mortgage insurance is and why some homebuyers need and should use it.
THE FIVE "C's" of CREDIT
Lenders are in business to make (not lose) money. Consequently when a bank lends money it wants to ensure that it will get paid back. To maximize the possibility of being paid back, the bank wants to make sure that there is sufficient assurance that a person can and will pay back a loan. The lender must consider the 5 "C's" of Credit each time it makes a loan.
Is your mortgage coming up for renewal?
Is your mortgage coming up for renewal? Don't be too hasty in just signing the form and sending it back to the lender. Over 70% of mortgage holders do just that, and what is the usual result - a higher rate and a mortgage product that might not be best suited to your needs. Consider renewing/switching your mortgage to another lender who will most often give you a better rate.
Using Your RRSP For The Down Payment
The Home Buyers' Plan ("HBP") is a federally instituted government program designed to assist "qualified" buyers in the purchase of a new home. As a "qualified" buyer, you are allowed to withdraw funds from your RRSP to use as a down payment in the purchase of a home, without incurring a penalty.
Three Tips to Pay Your Mortgage Off, Faster!
One of the highest financial priorities of Canadian homeowners should be to pay off their mortgage as quickly as possible. However, it's quite shocking as to how many Canadians these days, actually are retiring with mortgages still on their homes and only meager pension income to make the payments.
Title Insurance Can Mean No Survey and No Delays For Home Buyers
Title insurance, which has been used in the United States for more than 100 years, protects your "title", otherwise known as the right of ownership in real property. Since 1991 when it made its way to Canada, title insurance has saved homebuyers money and aggravation, helped close transactions on time, and resolved potentially deal-breaking title and survey problems.
Construction Financing
Many new homebuyers are considering the option of building the home themselves as opposed to buying directly from a builder. It's an opportunity to have the features you want in a home built to your specifications. The process of financing a "self-built" home is vastly different from the mainstream mortgage financing process.
Save Money & Time, Use A Mortgage Broker
In the U.S. in 1992, 25% of the mortgages were processed through mortgage brokers. By the year 2000, that statistic had risen to approximately 70%. The Canadian mortgage market seems to be heading in the same direction. At the end of 2001, mortgage brokers had 25% of the market share in Canadian mortgage origination.
Save Money With A Variable Rate Mortgage
Everybody's heard of Variable Rate Mortgages (VRMs)-but very few people understand what they are, how they work and so people tend to shy away from one of the best products available to help them pay down their mortgage faster. The greatest difference between VRMs and fixed rate mortgages is how the rates are set.
How To Finance A Rental Property
In the wake of a hot, real estate market and a less than robust stock market, many investors are considering purchasing rental real estate as an additional option for wealth creation. The qualifications for rental property mortgaging changed drastically since the recession of the early '90s.
Save Money With A Second Mortgage
Typically, most first time home buyers get their home buying and financing information from friends and relatives who have purchased a home in the past. When it comes to second mortgages, however, many people have had little or no personal experiences with the subject. Therein lies the reason second mortgages have a bad rap. After all, if one mortgage is bad enough, two mortgages must be worse. In reality, a second mortgage may be a better financial decision for certain individuals and the only option for many buyers stretching to afford the home of their dreams.
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