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Do Mortgages Cover Home Repairs?

Posted onJanuary 13/2015By

Yes, they can. Most mortgage terms will allow buyers to make initial major renovations or repairs to the property. Many refinancing options not only permit, but also insist, that all refinanced funds to go towards home repairs. Either option will allow you to perform home repairs, under certain conditions. Not only can mortgages be used to cover repairs, but often, they should! Mortgages are typically the lowest-rate options for financing repairs. Mortgages pay for about 15% of Canadian home repairs, making them the most popular form of credit used in renovations. The Policies The Canadian Mortgage and Housing Corporation (CMHC) provides the majority of mortgage insurance to first-time buyers. CMHC policies allow for home buyers to build equity into their homes by renovating them after purchase. To obtain additional funds in a mortgage, you will provide an estimate, preferably with quotes by contractors, for all the repairs in your home.…

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Are Mortgages Different for Properties that you’re Intending to Rent?

Posted onJanuary 09/2015By

Mortgages for buildings you’re planning on renting depends on the property. If a property is used primarily as a personal residence, but includes rental units, then your mortgage will be similar to a normal home mortgage. Alternatively, if the property is only intended to be rented out to others, you will need a different and often more difficult-to-obtain mortgage. Mortgages for Personal Residences with Rental Units Many houses have outbuildings, basements, or additional floors that can be used as rental properties. Even if you are intending to rent these out, the mortgage process will be similar to a normal personal residence. This also applies to second homes that are rented out to lodgers during some months of the year. Like a standard mortgage, you must provide 5% money down. You will also need to provide proof of income. Fortunately, you can add in projected rental income. This income may help…

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Benefits of Paying off your Mortgage Early

Posted onJanuary 06/2015By

Even when you get the best deal possible on your mortgage, having those monthly payments loom over your head can be enough to stress out even the most financially sound. So what happens if you find yourself in a situation with more money than you expected at this point in your life? Should you invest it, spend it, or pay off your mortgage? Early mortgage repayment is not for everyone, or every situation. However, if you can afford early repayment, there are several benefits for your life and financial situation. 1. Net Income Increase A common reason why people are delaying their repayments is the low interest rate on their mortgage. When your rate is only slightly above inflation, it’s extremely attractive to keep refinancing it indefinitely and use that money for investing. There’s one problem though: the reason that mortgage rates are so low is because investment returns in…

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