Posted on
June 22/2020By
northwood
Many things affect a homebuyer residential mortgage — the process of the application contains many safeguards to protect lenders and borrowers alike. A self-employed individual or business owner has unique challenges. A homebuyer residential mortgage falls under a different approval process for the self-employed or business owner. Don’t Forget to Declare Ownership Business owners, in many cases, take a salary from the business they run, and a T-4 reflects their earnings for tax purposes. In the application process, a lender will review the form, but the big mistake here is the failure to declare ownership of the business. This causes…
Posted on
March 28/2019By
northwood
In January 2018, Canada’s new mortgage rules came into effect. These new terms mean that borrowers may be burdened with the need to prove they are capable of paying higher interest rates than those in their lending contract. This stress test will apply to borrowers who have a smaller down payment and those in need of mortgage insurance. Research by the Bank of Canada showed that about 10 percent of Canadians who were approved for a mortgage without insurance between 2016 and 2017 would not qualify under the new rules. That works out to about 100,000 home buyers, according to…
Posted on
December 19/2016By
northwood
If you are planning to buy or sell a home, you should be aware of some of the new rules that are in place, as it might affect your chances as a home buyer or seller. The rules require home buyers to meet new lending criteria and they must qualify for rates that are fixed by the Bank of Canada. Insurance Mortgages Prospective buyers who want to secure mortgage loans must be purchasing a dwelling that has an amortization period of 25 years or less and a value of less than one million dollars. Borrowers who have less than 20 per cent down will have to qualify for a rate that is set by the Bank of Canada. Borrowers with more than 20 per cent down will not have to qualify until Nov. 30, 2016. This gives borrowers who rely on portfolio insurance time to find another means of financing…
