Mortgages in Canada can be a murky subject – one that we hope to shed some light on with a series of highly informational articles.
Latest News
Should you loan money to someone who is house rich and cash poor? May 19th
My daughter is 60, divorced, owns a house, perhaps $800,000 house value. She has a small mortgage and no savings of any kind. She lives on a line of credit and a credit card. Her only income is about $300 to $400 monthly CPP.
She is wondering how best to manage. Should she sell now and rent for a.... More »
Proof of down payment: The biggest hurdle for mortgage professionals + MORE Aug 4th
For mortgage professionals, verifying a client's down payment sources can be one of the most challenging aspects of the mortgage approval process..... More »
The Latest COVID-19 Mortgage Developments: Rates on the Rise + MORE Mar 23rd
Mortgage Rates Rising Rapidly Canada’s Real Estate Market Faces Uncertainty Call to End to Open Houses Mortgage Payment Deferral Challenges Filogix’s Expert Victim of Ransomware Attack Mortgage Rates on the Rise Banks and other mortgage lenders have been frantically raising rates since last week.... More »
Understanding mortgage affordability Feb 18th
Let’s talk about mortgage affordability. We know that housing affordability is getting further out of reach for many Canadians. But, what determines mortgage affordability? How is it calculated by financial institutions and lenders? And what hidden costs should potential home buyers fact.... More »
U.S. mortgage rates dip slightly, sending 30-year loans to 6.23% + MORE Nov 30th
Mortgage rates fell after three weeks of increases, giving prospective buyers some relief from price pressures. .... More »
Creative Ways to Finance Your New Home
– ratesupermarket.ca
In a tight housing market, it can be tough to come up with the cash you need for a new home. Many Canadians looking for new alternatives are having to get creative. For some folks, it may be as simple as finding friends or family to take the journey with them, or sharing their homes with others.
Co-Ownership
It’s not often discussed, but any adult can buy a home with any other. Those individuals become tenants in common in the property.
Sharing the mortgage may sound like a hassle, but that debt can be formally split according to how much debt each person wants to incur. Albeit, each mortgage applicant is wholly responsible for payments if the other defaults.
Tip: We highly recommended speaking with a lawyer to set up such a co-ownership arrangement, especially when it comes to actually living in the space. Things can get tricky if one person wants to sell their interest or move before the other.
However, co-owners don’t always have to reside in the same house. Family members, like Mom and Dad, can contribute part of the down payment and be non-resident co-owners (or they don’t need to be owners at all)…
