Should I Apply For A Pre-Approved Mortgage?

Posted onMay 26/2014By

In many cases, getting a mortgage pre-approval is almost mandatory, and can make the home-buying process run smoothly. But there are limitations to a pre-approved mortgage, which wise home buyers should keep in mind. Advantages of pre-approved mortgages Having pre-approved financing shows the seller that you are serious, and will give you an edge in a competitive bid situation. If the lender reviews your qualifications in depth, getting a pre-approved mortgage will let you know what prices you can realistically afford. You are also protected from rising mortgage rates for the duration of your pre-approval – usually 90 to 120 days. However, you must make sure you can afford to live with the mortgage you’ve been offered. The expenses of your prospective home could be higher than expected. Ensure your qualifications are reviewed Mortgage advisers may pre-qualify you for a loan, but be aware that this is not a guarantee…

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Positive Trends In Canadian Homebuyer Behaviour

Posted onMay 20/2014By

Canadian homebuyers are confident that there are long term benefits in buying a home, according to a national survey commissioned by Genworth Canada. Canadians are currently working longer and harder to save for their down payments, and remain optimistic about the market, the survey revealed. This annual survey polled 1,507 Canadians. It was completed in conjunction with the Canadian Association of Credit Counselling Services. Canadian Homebuyers Confident in Market More Canadians are considering buying a home, the survey revealed. 17 per cent of all Canadians surveyed think now is a good time to buy, and for first time buyers this figure is even higher. This could be due to confidence in the growth of the real estate market. 64 per cent of Canadians surveyed believe that house prices will continue to rise over the next year. Canadians: Fiscally Responsible Canadian homebuyers are in a good position to buy. The survey…

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Is Choosing A Mortgage Broker Better Than Choosing A Bank?

Posted onMay 15/2014By

If you are ready to purchase a home you will, of course, need a mortgage. Banks and mortgage brokers offer mortgages, but when facing a major financial commitment like a mortgage you may benefit from using an independent mortgage broker to help you make the biggest investment you will ever make. Mortgage brokers, unlike banks, specialize in mortgages. Mortgage brokers have access to all lenders, not limited to the bank’s own rates and offers. Mortgage brokers can therefore find the best mortgage for your own specific financial needs. What do mortgage brokers do? An experienced mortgage broker will analyze your financial and credit situation, to help you figure out the best mortgage you are eligible for. The broker will then liaise with the lenders to tailor a mortgage to your unique financial situation, getting the best rates, terms, and conditions you are eligible for. The broker also helps with the…

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What Do Present Interest Rates Tell Us About the Real Estate Market?

Posted onMay 12/2014By

The real estate market is driven by mortgage rates and house prices together. The past decade has seen a gradual decrease in interest rates, and increase in house prices. Interest rates are predicted to rise. Is the real estate market sound? Mortgage rates can be either variable rate or fixed rate, and these rates depend on the central bank and the financial market. Variable rates and fixed rates explained Variable rate mortgages change with the lender’s prime lending rate changes. This rate is linked to the Bank of Canada’s overnight lending rate. If you have a variable rate mortgage, your relationship to prime will remain constant though the prime rate itself will fluctuate. There is a great deal of financial uncertainty, though variable rates can lead to considerable savings over time. Fixed rate mortgages will remain constant for the entire duration of your mortgage. Fixed rates depend on bond yields,…

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Using The 3-Legged Stool Method To Save Money On Your Mortgage

Posted onMay 09/2014By

Becoming a homeowner is an exciting prospect. But rising house prices means that Canadians are taking out large mortgages. Interest rates are projected to rise, which can put extra pressure on the homebuyer. However, there are some effective ways to save money on your mortgage. One such money-saving method is known as the 3-legged stool method. The three-legged stool is a symbol for the three factors which influence your mortgage, and the three-legged stool method involves taking each of these three factors into account when working out how to save money on your mortgage. Mortgage amount The first leg of the stool is your principal, or mortgage amount. Clearly, choosing a cheaper home means you will need a smaller mortgage. However, house prices are rising. In addition to ensuring you are not overextending yourself when choosing your home, you will have to consider the other two legs to save money.…

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