Can You Roll Closing Costs into a Mortgage?

Posted onMay 02/2017By

There are many costs associated with buying property, in addition to the down payment and your mortgage loan. Any fees that go over the price of the property itself are called closing costs and include fees such as appraisal fees, title insurance, credit report fees, legal fees, and loan origination fees. Closing costs are incurred once the seller transfers the property to the buyer. Closing costs usually end up being about 2-5% of the price of the property. An example of a common closing cost would be a loan origination fee. This is usually charged by the bank upon creation of the loan, and often comes to about 1% of the mortgage. Another example of a closing cost would be title insurance, which protects the lender and the buyer from any past contractors making claims against the property. Obviously this is incredibly important if you want to avoid any complications…

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4 Benefits Of A Short-term Mortgage

Posted onJanuary 06/2017By

In today’s uncertain economic climate, getting a short term mortgage is a move that many homebuyers are taking. While the amortization period doesn’t change, a short-term mortgage allows you to renegotiate your mortgage in light of changing interest rates. While a short-term mortgage may not appeal to homeowners looking for stability and peace of mind, it is good for those who are more cognisant of economic conditions. What are some of the benefits of a short-term mortgage? Flexibility If you expect interest rates to fall within a short time period, then a short-term mortgage allows you to renegotiate in light of the lower interest rate once the current mortgage expires. You can change houses if your circumstances change or there is a housing boom. For investors, a short-term mortgage allows one to “time” the housing market. Once you have found a favourable rate, you can lock into that rate over…

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How To Secure A Mortgage When You’re Self-Employed

Posted onNovember 21/2016By

There are many advantages to being self-employed, but one disadvantage is that it is much more difficult to prove your income to financial institutions. It gets especially complicated when your income is much less on paper than it actually is— especially when you factor in the deductions made from business expenses. Recent rule changes have made it much more difficult for self-employed workers to qualify for a loan, but if you are self employed, there are ways to increase your chances of successfully securing a loan. Have A Good Credit Score Although it is not the only requirement for securing a mortgage, it is still critical. If you know your credit score is low, try to improve your score before approaching the bank, because it is one of the first things they will look at. Keep Your Business Books Keep track of your financial records. Practise good bookkeeping and keep…

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Renewal VS. Refinance: What’s The Difference?

Posted onFebruary 12/2016By

Home mortgages in Canada are actually not normally paid off over the life of the term. This is because, usually, lenders amortize the loan for a period between 15 and 30 years. However, the longest allowable loan you can receive from a Canadian bank is for ten years. The result is that many homeowners who pursue financing through the traditional channels will have to renew their mortgage at least once. However, some homeowners prefer to refinance at the end of their loan deal, rather than renewing the loan. It’s important to understand the difference between renewing and refinancing. The Difference Between Renewing and Refinancing A renewal of a mortgage is pretty straightforward. At the end of a five or ten year deal, if the loan has still not been fully paid off, you can opt to simply renew the deal and pay off the loan at the previously agreed upon…

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How Will Your Student Loan Affect Your Mortgage?

Posted onFebruary 05/2016By

There’s a growing concern in recent years about the increasing number of people who are graduating from post-secondary education and finding themselves drowning in student debt. Whether it’s a person earning a general baccalaureate degree or someone graduating from a professional program and entering a lucrative field of work, crushing student debts are following people around for decades after they’ve finished school. Getting the right education to suit your skills and prospects is invaluable, but tens or even hundreds of thousands of dollars of student debt can really hold you back, especially when coupled with academic inflation and a scarcity of jobs. But the fact is that many people have student debt and they can still become homeowners. This article will detail how your student loan can affect your mortgage. Analyzing Debt: The Percentage of your Monthly Wage that Pays off your Debts Obviously, the best case scenario when applying…

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