Mortgage Basics Tips

Thinking of taking out a mortgage to buy a house of your own, but you are not sure you can afford it in the long run? In that case, you need that mortgage to be stress tested to make certain that you will not run into any serious financial crisis in the future. We are going to tell you everything essential to know about the mortgage stress test and how it’s done. What Is The Mortgage Stress Test In Canada? The Canadian mortgage stress test was introduced by the Office of the Superintendent of...

Thinking of moving to another house, but you already have a mortgage plan with great rates? Well, there is an option, and it’s called porting your mortgage. But is it the right move? Are there certain qualifications you need to have? We will be answering these questions and much more in detail in this post. Stay tuned! How Does Porting a Mortgage Work? When you want to buy a new house and do not have the entire money at hand, like most people, you will need a mortgage on that house, but what i...

Do you want to reduce your monthly payments, accelerate your mortgage payoff, and lower total interest? If yes, you need to know the difference between mortgage term vs amortization. Today we’re going to break down these key concepts and reveal how choosing the right combination impacts your payments and overall cost. Let's get you mortgage-savvy. What is a Mortgage Term? The mortgage term is the length of your initial agreement with a lender, specifying the interest rate and other conditions...

According to Forbes Advisor Canada, about 3% of mortgage renewals are denied in the country. The million-dollar question is: what happens if your mortgage renewal is denied? Keep reading to see why mortgage renewals are denied in the first place, how you can avoid this situation, and what are your options in case of denial. Why Would Your Mortgage Renewal Be Denied? Banks can deny mortgage renewals due to credit score issues, missed mortgage payments and/or arrears, changes in income or emplo...

Co-signing a mortgage is a big deal, one that you need to make sure you have enough knowledge about before undertaking it. It is true that by becoming a co-signer for a home loan, you will be helping out someone you trust and care about, but in the event that they fail to keep up with the payments, it will be your responsibility to step in and pay. There are several things to be aware of before deciding to become a co-signer for a house loan, and we will be telling you about them here in this po...

Going for a mortgage broker or finding a home loan on your own is a choice, one that is heavily influenced by mortgage broker compensation. So, want to know how mortgage brokers get paid? That’s the question we will be answering here. How Do Mortgage Brokers Get Paid? A mortgage broker is someone with a professional license who acts as a middleman between the money lender and the money borrower in the case of buying a house. They look at your finances, analyze them, and they will try to find a...

Don't miss your chance to significantly reduce taxes this year! The home mortgage interest deduction in Canada offers substantial savings, but you need to understand the rules. Read on to learn eligibility criteria, claiming steps, and specific pros and cons. Is Mortgage Interest Tax Deductible in Canada? Canada tax mortgage interest deduction doesn’t apply to primary residence. However, if a home is used to generate income, run a business, or as a rental property, the mortgage interest is eli...

Mortgage contracts are in effect for a specific period, AKA mortgage term. Mortgage renewal occurs at the end of each term, where you need to pay the full balance or renew mortgage for another term. In this guide, we’ll see how does a mortgage renewal work, what are its key steps, and how to find and secure the best offer. Let’s get started. How Does Mortgage Renewal Work? The mortgage renewal process begins with receiving a renewal statement from the lender, at least 21 days before the curre...

The world of mortgages is vast and varied, and exploring it always starts with this question: What is a mortgage? In the simplest terms, it is a loan for purchasing real estate, AKA your dream home. This guide walks you through the essentials of mortgages, helping you understand the key terms and considerations involved. Shall we begin? How Does Mortgage Work? How house mortgage works? The mortgage process in Toronto begins with pre-approval, ensuring your affordability based on income, credi...

The Canadian dream of homeownership often hinges on securing the right mortgage. For many, that means a 30-year mortgage – a commitment that feels exciting and daunting at the same time. But considering today’s market, understanding the 30 year mortgage in Canada is more crucial than ever. This post breaks down everything you need to know about this mortgage (from pros/cons to eligibility requirements) to help you make the best decision for your financial future. How Does a 30-Year Mortgage Wo...