Obtaining a mortgage or secured line of credit in Canada at the best rates is often a daunting task. We can help! Read the articles below for more info.
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Affordability tips for first-time home buyers to securing a mortgage + MORE Oct 29th
Q. My partner and I rent a two-bedroom apartment in Toronto in a great neighbourhood for $1,850 a month—so, a great deal. We have been living together for three years and would like to buy a house together next year, when we both turn 30.
Get the mortgage rate that works for you.Find the bes.... More »
Weekly mortgage digest: Canadians are pulling back on borrowing Sep 16th
A weekly review of the latest mortgage and real estate news, a recap of key headlines, and a preview of upcoming economic releases..... More »
Rocket Mortgage Canada winding down operations + MORE Mar 7th
Rocket Mortgage Canada is shutting down its lending business, with operations expected to wind down by the end of June..... More »
2024 housing market and interest rate forecasts + MORE Dec 28th
2023 was a year that tested the resilience of Canadian mortgage holders. And as we look forward, there's optimism that 2024 will be the year of rate relief..... More »
Should retirees consider a home equity sharing agreement (HESA)? + MORE Jan 30th
Toronto-based Clay Financial recently began accepting applications for a new home equity product called a home equity sharing agreement, or HESA—not to be confused with the HISA, which stands for high-interest savings account.
Clay raised seed funding in 2023 and is initially launching the prod.... More »
What Is a Mortgage Gift Letter, and When Do You Need One?
– ratesupermarket.ca
When you’re buying a home, you may receive a monetary gift from a family member to help make a larger down payment. But your mortgage lender will usually want proof that the newfound funds are a gift and not a loan. In that case, the lender will want a mortgage gift letter.
What is a mortgage gift letter?
A mortgage gift letter is a form from your donor stating that the funds for your down payment are a donation and you’re not required to pay the money back.
In fact, more first-time homebuyers are getting a little assistance from their family to help buy their first home. Between 2015 and 2019, 40% of first-time buyers received a monetary gift from their parents or other family members to help buy a home, according to a Mortgage Professionals Canada survey.
That number has continued to trend higher over the years. Thirty percent of first-time buyers who bought between 2010 and 2014 received funds as a gift from their family to help with their down payment. Similarly, 24% of those who purchased between 2005 and 2009 can say the same…
Q2 Lender Earnings: Mortgage Deferral Situation Easing
– canadianmortgagetrends.com
Despite Canada Mortgage and Housing Corporation CEO Evan Siddall warning of a mortgage “deferral cliff,” and sharp rise in mortgage defaults this fall, data from the country’s key mortgage lenders appears to be telling a different story.
Should you buy a vacation property?
– moneysense.ca
The benefits of owning a vacation property are obvious. A cottage, cabin, condo or trailer a short drive from your home can provide a quick weekend recharge. A property down south can serve as a regular vacation destination or extended winter stay for a snowbird.
There are many emotion-driven reasons for buying a vacation property, or not. I like to evaluate a property purchase from a financial point of view—and here’s how.
Say a property’s purchase price is $500,000. Whether you use cash, a mortgage/home equity line of credit, or a combination, there are other costs to consider. If you purchase with cash that you could otherwise invest at a 4% return (to use a conservative assumption), there is an opportunity cost of not investing that money. If you borrowed money, despite current mortgage rates being around 2%, over the long run the interest rate is likely to go higher. On a $500,000 property, there may therefore be an initial cost of 4%, or $20,000.
Property taxes, utilities, insurance, condo fees and maintenance could easily add another 2% to 4% per year in costs…
There are many emotion-driven reasons for buying a vacation property, or not. I like to evaluate a property purchase from a financial point of view—and here’s how.
Say a property’s purchase price is $500,000. Whether you use cash, a mortgage/home equity line of credit, or a combination, there are other costs to consider. If you purchase with cash that you could otherwise invest at a 4% return (to use a conservative assumption), there is an opportunity cost of not investing that money. If you borrowed money, despite current mortgage rates being around 2%, over the long run the interest rate is likely to go higher. On a $500,000 property, there may therefore be an initial cost of 4%, or $20,000.
Property taxes, utilities, insurance, condo fees and maintenance could easily add another 2% to 4% per year in costs…
