Mortgages in Canada can be a murky subject – one that we hope to shed some light on with a series of highly informational articles.
New data shows the country’s youngest buyers are being affected most by the government’s mortgage stress tests. Mortgage originations were down 8.9% overall in Q2, while those among buyers between the ages of 18 and 25 were down 13.4% compared to last year, according to TransUnion’.... More »
WAS THIS A BIG MISTAKE? Last week, Stephen Poloz, the Bank of Canada Governor, kept the Prime Rate as is during the 6th of their eight scheduled meetings for 2019. The Current Target rate is 1.75%. (Bank Prime rate is derived from this rate. Today’s Bank Prime rate is 3.95%..... More »
After nearly 50 years of providing residential mortgages to Canadians, Industrial Alliance Financial Group announced its exit from the space this month. “This is a result of our decision to focus on investments in key sectors for the Group,” iA spokesperson Pierre Picard told CMT. “.... More »
If you’re in the market for a new home you probably understand the different mortgage options. But what about amortization? Should you go short or long on your amortization, and what impact does it have on your finances? The most common amortization is 25 years. If you have at least a 20 percent .... More »
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.
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)…