Posted on
December 31/2014By
northwood
In today’s entrepreneurial-focused economy, a lot of people have left their cubicles to pursue a path of self-employment. In a lot of cases, this means more money and a more flexible work environment! Unfortunately, in spite of all the perks to self-employment, there are also a few pitfalls—one of those being the ability to easily qualify for a mortgage. Self-employment doesn’t make getting a mortgage impossible, but it does make it more challenging. With the right steps and savvy, getting a mortgage can be just as easy for you as it is for someone with a high-paying desk job, but the steps you’ll have to take to get there will just be slightly different. What to Expect Unfortunately even if you’re bringing in as much money annually as somebody with a traditional, stable job, a lot of lenders will be wary of offering you a mortgage. This shouldn’t turn you…
Posted on
December 24/2014By
northwood
Credit is a tricky beast. Falling into a black hole of credit card debt is very easy to do, and very dangerous. On the flip side, avoiding credit cards altogether is just as dangerous. If you don’t have at least one credit card, you won’tearn a credit rating, which means you won’t be able to secure a mortgage, a loan, or even store credit without a co-signer. So when should you use it, and how many credit cards should you have? Unfortunately, the answer isn’t simple, but this is a general overview of how it breaks down: Don’t Think of Credit Cards as Supplemental Income If you can manage this, then it doesn’t matter how many credit cards you have. But as soon as you start thinking of your credit card(s) as your own money to spend, you’re stepping on a slippery slope. When people max out their first credit…
Posted on
December 17/2014By
northwood
If you’re trying to buy your first home, you have to ask yourself a lot more questions than would-be homeowners did twenty years ago. One of these questions is, “Should I invest in a house or a condo?” This is especially true in large metropolitan cities where traditional house prices are soaring and the condo market is booming. But the question is a lot more complex than deciding whether a backyard or concierge is more important to you. In fact, one thing that a lot of homebuyers don’t consider is whether or not they’ll be able to secure a mortgage for the home they want to buy. Contrary to popular belief not all mortgages are made equal, and one factor that can make a big difference is whether you’re trying to buy a house or a condo. Is it easier to get a mortgage for a house or a condo?…
Posted on
December 10/2014By
northwood
Many people are under the impression that once you reach a certain age, you won’t be able to qualify for a mortgage. Although there is some logic tied to that myth, it doesn’t make it true. In fact, as long as you’re a legal adult (over the age of 18), it’s illegal for a mortgage lender to decline you based on your age—regardless of being 21, 60, or 99-years-old, you can’t be denied a mortgage because of your age. But this isn’t to say that mortgage lenders are obligated to offer you a loan. Even if you’re in the prime of your life, you’ll have to prove to your lender that you can afford your mortgage and that the odds of you going into foreclosure are slim. Here are the factors that lenders do look at: Debt to Income Ratios Most lenders expect that your total monthly debts will equal…
Posted on
December 03/2014By
northwood
As of spring in 2014, hopeful homeowners in Ontario could sign up for a five-year fixed mortgage rate of only 2.89%, which in comparison to local trends of the area is a decently favorable rate. However if you go a further east, and you can secure a five-year fixed mortgage with only 2.84% interest, if you’re purchasing in British Columbia. Alberta, Saskatchewan, and Manitoba share the same rate as Ontario, while Quebec and all of the Maritime Provinces come in within two-hundredths under 3%. So why is this the case? It can seem slightly confusing that there is so much variation across provinces even though 5-year fixed mortgage rates are driven by 5-year government bond yields. The short answer is that mortgage rates don’t vary as much from province-to-province as they do from lender-to-lender. Cait Flanders of RateHub has recently offered a little insight on the matter: “Individual lending institutions…
