Posted on
September 05/2019By
northwood
When looking for mortgage solutions, the number of options at your disposal can be daunting. For instance, some people may opt for a second mortgage, while others may opt for a 30-year fixed-rate mortgage instead. In Canada, the 30-year fixed-rate mortgage is more popular than the second mortgage option, and accounts for roughly 80% of all home purchases; its popularity has not waned since its inception. Here, we will focus on how monthly payments work for a 30-year fixed-rate mortgage. What is a fixed-rate mortgage? A 30-year fixed-rate mortgage is a loan issued by a financial institution that has an interest rate that is fixed for the duration of the loan. It usually has a repayment term of three decades, although the homeowner can refinance or sell their home before the 30-year term ends if they wish. The interest rate is determined when the loan is first issued to the…
Posted on
August 28/2019By
northwood
While retiring is something that many Canadians look forward to, the celebrations can be cut short if they have a substantial amount of debt to deal with in their twilight years. For instance, many Canadians may worry about retiring with a mortgage. In fact, a recent Equifax study found that Canadians over the age of 65 have accrued debt at a much faster rate when compared to other Canadian demographics. As such, many Canadians may need to turn to innovative commercial and residential mortgage solutions in order to deal with their rising debts. Here, we will focus primarily on the things you will need to consider when retiring with a mortgage in Ontario. Focus on Paying Off Your Debts Many middle-aged people will focus on helping their children pay off their student loans or car payments, or will prioritize the growth of their investment portfolios, while they slowly but surely…
Posted on
August 19/2019By
northwood
More often than not, you will need to take out a mortgage in order to purchase a home, as a home is a serious investment that should not be taken lightly. However, while taking out a mortgage is a significant investment, there are other costs that you will incur when you purchase a home. For instance, you will also be required to pay mortgage closing costs in order to get the keys to your new home. Here, we will discuss some of the mortgage closing costs that you will be expected to pay in Ontario. Appraisal In Ontario, the normal range for mortgage closing costs will be between 2% and 5%. Moreover, before a lender decides to extend a loan for a client, they will need to appraise the value of the home that is being bought. The quintessential scenario is that the purchase price and the verified value will…
Posted on
August 08/2019By
northwood
If you are a self-employed worker, and would like to purchase a new property or remortgage, then you may have to deal with certain challenges that conventional “9-to-5” workers aren’t privy to. A quick way to help you get started is to use a mortgage qualifier calculator. It should also be noted that it has been more difficult, since the post-credit crunch, for freelancers, contractors, and self-employed workers to obtain a mortgage, but, as we shall see in this article, it is not impossible. What You Will Need to Qualify In order to qualify, you will need to basically prove your income to the mortgage lender that you want to apply to. In most cases, each prospective lender will ask that you provide a minimum of two years’ worth of tax returns or accounts. However, providing more than two years of accounts may actually help your case. In any event,…
Posted on
August 01/2019By
northwood
If you currently have a reverse mortgage, then you probably know when your loan will need to be paid. In most cases, the loan will be due when the person dies, no longer lives in the home on a permanent basis, or decides to sell their property. Here, we will be focusing on what happens to heirs when the original owner passes away. In other words, we will be looking at the three options that heirs have for paying off the loan; namely, selling, keeping, or simply walking away from the home. Option One: Sell The first option at your disposal is to sell the home that you have inherited. Taking option one will allow you to pay off the reverse mortgage loan by using the money you have made from the sale of the home. Also, if there is any extra money left over after the reverse mortgage loan…
