Mortgage Basics Tips

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...

Deciding between fixed and variable mortgage rates can be as confusing as any financial decision. Especially with limited information and lots of unknown factors dictated by the market. In this article we will tell you what you need to know about these two mortgage interest types; so you can make the best decision based on your financial goals and risk tolerance. The guide will explain the differences, the benefits and risks to each, and also provide tips to help you make an informed decision....

Mortgage brokers are responsible for more than 40% of residential mortgage originations in Canada, and demand for their services continues to grow. But before hiring, you should know what a home loan broker is, what they do, the pros and cons of working with them, and how you can find the best broker. What Does a Mortgage Broker Do? Let’s start with the basics and define mortgage broker first. What is a home loan broker? They're like your shopping agents for mortgages. They are intermediaries...

Buying stuff is a pleasant experience; some people even go shopping to calm themselves down. But what if the size of your purchase is as big as a house? Sure, it’s still pretty exciting, but it can also be overwhelming to put your financial strength together to qualify for a mortgage. So, how can you afford a home with your financial status quo? Do you have the minimum credit score to qualify for a mortgage? Let’s find out. The Minimum Credit Score for a Mortgage in Toronto The minimum credit...