Five Tips For Increasing Your Home’s Equity

Posted onMarch 27/2017By

Equity is the magic word when it comes to homeownership. There are equity mortgages and other products that you can tap into when you’ve increased the value of your home. However, equity doesn’t grow on trees, so here are five tips for increasing your home’s equity: Pay off the principal: The quicker you pay off the mortgage principal, the more equity you build up. Look into acquiring prepayment privileges from your lender. Or if the prepayment penalty isn’t that great, it may make sense to pay off your principal as quickly as you can even if you’re penalized because you’ll be that much closer to getting an equity mortgage (or similar product). Hire an inspector: A certified home inspector will tell you how much your home is currently worth and what improvements are necessary to up its equity. Make upgrades to the kitchen and bathrooms: Get rid of old tiling,…

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Fixed Rate Mortgages: Should You Choose A 15-Year Or A 30-Year?

Posted onMarch 20/2017By

Once you’ve decided that you want a fixed rate over a variable rate mortgage, you then have to determine if you want 15 or 30 years. Taking on a loan for 15 years may seem impossible to some people, while others may think that’s just the right amount of time needed to pay it off. Generally, Canadians opt for anywhere from 25 to 30 years for their mortgages, but that doesn’t mean you have to too. Fixed rate mortgages: 15 years With 15-year fixed rate mortgages, you have the advantage of paying off the loan faster. Once you’ve paid off your mortgage, you can focus on putting money aside for other things like your retirement, children or grandchildren’s educations, vacations, etc. You’ll also save money on interest since you’ll pay more interest over 30 years than you will over 15. For example, 4% interest on a $200,000 home is $66,288…

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Which Factors Affect Mortgage Rates?

Posted onMarch 13/2017By

When it comes to mortgage rates in Canada, there are so many factors involved it can be hard to keep track. You’re probably aware that the Bank of Canada is a top player in how mortgage rates are determined, but there’s more to it than the BoC simply deciding what rate to set at any given time. Everyone is looking for a low mortgage rate, but the factors that affect variable mortgage rates are different than those that affect their fixed rate counterparts. Below, we’ll explore the differences. Variable mortgage rates A variable rate mortgage is a loan where the interest rate may change during the mortgage’s term. As the borrower, your monthly payment will be same, but if there is a low interest rate, you will still be able to take advantage of it. For example, if the interest rate increases, the amount of your monthly payment that is…

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Five Things You Need To Know About Ontario’s Land Transfer Tax

Posted onMarch 06/2017By

When people think of buying a home, they often forget about land transfer tax. People tend to be so preoccupied with finding the perfect property, coming up with a down payment and securing a mortgage that they overlook the other costs associated with home buying. Land transfer tax (LTT) is an important aspect of buying a property. Here are five things you need to know about LTT, from who pays it to how to find a land transfer tax calculator. What is land transfer tax? In Ontario (and every province in Canada with the exception of Alberta and Saskatchewan), you are required to pay a fee when land is purchased. Land is defined as any building that currently exists, or parcels of land where a building (or buildings) will be constructed. Who pays land transfer tax? Anyone who is purchasing land in Ontario has to pay LTT. Furthermore, if you…

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