The big “secret” about mortgages, from the lender’s point of view, is that it’s all about competition and risk. Competition limits what a bank can charge because borrowers will look for the best deal. But competition is tempered by risk. People with good credit scores – evidence that they habitually pay their bills on time – are better risks than people who don’t, no matter the reasons, so they usually get better rates.
Whatever your situation, here are some things you may not know – but need to – when getting a mortgage. Be sure to keep them in mind.
If you have any questions, never hesitate to get in touch, I’m happy to help 🙂
The change– Effective in the new year, those lucky enough to be house hunting for a new home over $500,000 this effects you…. you will now be required have 10% minimum as a down payment (previously 5%) on insured mortgages.
Timeline for the new change – Feb. 15, 2016
The background for the change – “The governments role in the housing market is to set and maintain a framework that is equitable, stable & sustainable. This change addresses emerging vulnerability in certain housing markets, while not overburdening other regions” said finance minster Bill Morneau in his recent release “They also re balance government support for the housing sector to promote long term stability & balanced economic growth”
The key motive to ensure that homeowners have enough “skin in the game” (equity). For many of us middle class Canadians, our biggest investment is our home. This change will increase homeowners equity and will help keep our housing market stable and secure for years to come.
If you have any questions about the upcoming change, please get in touch and i will be happy to crunch some numbers with you 🙂
It will only take you 60 seconds to read this post and by the time you finish, you can be well on your way to plan out the next steps of your home ownership dreams or to help someone who you really care about to start investing in their own home.
If you’re a renter then chances are you have high hopes of owning your own home one day. You want to put those rent payments towards something you’ll eventually own, and the closer you get to finally achieving the goal, the better you feel. But, while you’re saving up for that down payment, are you doing anything else to prepare? Having the downpayment is just one piece of the puzzle…..
Take a look at these tips to help you get closer to finally owning your own place!
As always if you have ANY questions, never hesitate to get in touch.