A minimum down payment of 5% is required to purchase a home, subject to certain maximum price restrictions. For instance, in the Greater Vancouver area the maximum purchase price with 5% down is $250,000. Any purchase price in excess of $250,000 requires a minimum of 10% as a down payment. In addition to the down [...]

Mortgage loan insurance is insurance provided by Canada Mortgage and Housing Corporation (CMHC), a crown corporation, and GE Capital Mortgage Insurance Company, an approved private corporation. This insurance is required by law to insure lenders against default on mortgages with a loan to value ratio greater than 75%. The insurance premiums, ranging from .50% to [...]

A home inspection is a visual examination of the property to determine the overall condition of the home. In the process, the inspector should be checking all major components (roofs, ceilings, walls, floors, foundations, crawl spaces, attics, retaining walls, etc.) and systems (electrical, heating, plumbing, drainage, exterior weather proofing, etc.). The results of the inspection [...]

To determine affordability you will first need to know your taxable income along with the amount of any debt outstanding and the monthly payments. Assuming it is your principal residence you are purchasing, calculate 35% of your income for use toward a mortgage payment, property taxes and heating costs. If applicable, half of the estimated [...]

We can’t help but love how RBC enjoys going counter-trend. With bond yields* making 40-day highs, RBC has deemed it appropriate to lower its 5-year fixed rates by 10 basis points. If other banks follow suit as usual, posted will drop to 5.19%.  That’s Canada’s lowest posted long-term mortgage rate since the 1950s. This is [...]

Purchase Price $ Down Payment $ Interest Rate % Amortization years Monthly Payment $ DO NOT USE COMMAS WITH INPUT

•Variable rate mtg. – Prime Rate -.80% = 2.20% •All rates are subject to change without notice • Lender/Broker fees may be applicable but not without the prior written consent of the client

Here is some ease guide line to follow. Buying a home, whether it’s your first or your third is a big deal and for most people it means a mortgage. 1. Pre-approval Send an application with income confirmation 2. Offer on a Property Negotiate price and receive signed/accepted offer 3. Receipt of Accepted Offer Send [...]

There are three type of mortgage lending in the Canadian mortgage market. 1. Institutional  lenders  2. Sub-Prime Lenders 3. Private lenders. If your application does not fit within the Institutional or sub-prime lender guidelines, a private mortgage is your option. Private lenders will generally require at least 20%-30% equity or down payment and a readily [...]

Did you know that you can switch or refinance your mortgage with another Lending Institution at no cost to you? Lenders are sending out mortgage renewal forms too close to the deadline in hopes that the customer feels they do not have adequate time to shop around and not realizing that the rates offered are [...]