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How to Invest in Real Estate

Posted onJanuary 16/2015By

Real estate is an attractive investment, and it’s getting more attractive all the time. Land is a finite resource, but Canada’s population is increasing. The basic laws of supply and demand mean that land, in general, will become more valuable in the future. Real estate investment has also kicked into high gear recently as low mortgage rates inspire many to buy additional investment properties. Although attractive, real estate investment is complicated. Here are several different approaches to entering the world of real estate investment: 1. House Flipping Many people first become involved in the real estate market through house-flipping. This is when you buy a house when the market is low, renovating it, and selling it when the market is high again. An advantage of this approach is the ability to live in a house while waiting for its value to mature. This option carries one major risk: the cost of…

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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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Is it Hard to get Approved for a Mortgage if You’re Self-Employed?

Posted onDecember 31/2014By

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…

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Multiple Credit Cards: The Good and Bad

Posted onDecember 24/2014By

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…

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