Mortgage Basics Tips

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...

Applying for a loan can be very frustrating when you don’t know what’s involved in the mortgage loan approval process. However, once you learn about the requirements and necessary documents, you’ll realize that home loan approval isn’t that complicated. So, let’s take a look at house loan approval timelines and some tips to speed up the process. Steps in the Mortgage Loan Approval Process We can break down the process into seven steps, starting with an assessment of your financial situation. T...

Toronto is an expensive city, and housing costs are pretty high, making it very difficult to buy a home without getting a mortgage. How good a mortgage you can get depends on how much you can pay for the down payment. The amount also indicates whether you need a mortgage insurance or not. So, let’s take a look at down payment requirements in Toronto and how they affect the mortgage size. What Is a Down Payment and Why Is It Important? The down payment is the amount of money you pay before you...

Down payment is a huge obstacle faced by those looking to buy a house in Ontario, where property is more expensive than in other provinces. Now, if your savings don’t amount to pay the downpayment, does that mean buying a home will remain a dream for the rest of your life? Luckily, there are ways to get a mortgage without a down payment in Ontario. Let’s check them out. Down Payment Requirements in Canada Up until 2008, borrowers could borrow the entire mortgage amount without a down payment....

Toronto is the most expensive city in Canada, and you can’t just go, choose a property and buy it unless you’re pretty rich. Getting pre-approved for a mortgage paves the way to becoming a homeowner. Toronto mortgage pre-approval process is comprised of five main steps. We’ll walk you through these steps to help you stop worrying about getting pre-approved. What Is a Mortgage Pre-Approval, and Why Do You Need One? As the name suggests, mortgage pre-approval is a process that determines whether...

A mortgage broker is an intermediary between you (the borrower) and the lender. The broker feeds off the fee they get from the lender, and some unscrupulous brokers may not offer you the best deal to make more profit out of your mortgage application. But how do mortgage brokers rip you off, and how can you avoid that? Let’s find out. How Mortgage Brokers Rip You Off in Canada Mortgage brokers in Canada take 1% to 2% of the mortgage amount from the lender. So, if the mortgage you qualify for is...

Mortgage is an invaluable asset for anyone who wants to buy a home. However, you must meet the terms and conditions of lenders to qualify for a mortgage. The credit score is a determining factor when a lender is assessing your eligibility for a home loan, and with a low credit score, getting a mortgage becomes challenging but not impossible. So, let’s look into how to get a mortgage with bad credit. What Qualifies as a ‘Not-So-Good’ Credit Score? The credit score is an indication of creditwort...

Buying a house is probably the biggest purchase of your life. For some people, living in their own homes might remain a dream, but with the right financing, you don’t have to be one of them. Let’s see what you can do to increase your chances of becoming a homeowner in Canada, even if you don’t earn much. Assessing Your Financial Situation The first step is understating your current financial situation. How far is the distance between an affordable house and your budget? You need to adopt a fru...

When buying a house in Canada, you can use several mortgage plans, but ultimately, these mortgages can be categorized under two main mortgage types: closed vs open mortgage. Both mortgage types require more or less the same qualifications, but there are some key differences, and you should choose one based on your financial situation. Let’s see how these mortgage plans differ and which is best for you. What is an Open Mortgage? An open mortgage makes it possible for you to pay off the mortgage...

What options are there for first-time homebuyers in Canada, and also more specifically, Toronto? In this article, you will learn about some options out there to take advantage of what’s available. We’ll discuss the incentives and programs that best suit the needs of first-timers in the market; and the eligibility criteria for each. Understanding the First-Time Home Buyer Incentive The First-Time Home Buyer Incentive (FTHBI) was introduced to help make homeownership more accessible for Canadian...