canadian mortgage: Paying Your Mortgage Off Faster? - 09/08/10 10:38 AM

How do I pay off my mortgage faster?
Paying off your home doesn’t have to take a lifetime. By planning ahead and sticking to the plan, youhave the opportunity to pay your mortgage off faster. Here are seven ways to pay your mortgage downfaster and decrease the amortization and interest costs off your mortgage:
Choose a mortgage with a prepayment option - A prepayment option gives you the right toprepay specified amounts of your mortgage principal Shorten your amortization period - By shortening your amortization period to less than 25years you can create huge interest savings Increase your regular … (1 comments)

canadian mortgage: What is the minimum down payment needed for a home? - 08/28/10 10:29 AM

A minimum down payment of 5% is required to purchase a home, subject to certain maximum price restrictions. For instance, in the Greater Vancouver area the maximum purchase price with 5% down is $250,000. Any purchase price in excess of $250,000 requires a minimum of 10% as a down payment. In addition to the down payment, you must also be able to show that you can cover the applicable closing costs (i.e. legal fees and disbursements, appraisal fees and a survey certificate, where applicable).Regardless of the amount of your down payment, at least 5% of it must be from your … (1 comments)

canadian mortgage: How much can I afford to pay for a home? - 08/18/10 01:32 AM

To determine 'affordability' you will first need to know your taxable income along with the amount of any debt outstanding and the monthly payments. Assuming it is your principal residence you are purchasing, calculate 32% of your income for use toward a mortgage payment, property taxes and heating costs. If applicable, half of the estimated monthly condominium maintenance fees will also be included in this calculation.Second, calculate 40% of your taxable income and deduct all of your monthly debt payments, including car loans, credit cards, lines of credit payments. The lesser of the first or second calculation will be used … (3 comments)

canadian mortgage: Mortgage Shopping - 08/07/10 05:47 AM

When shopping for a mortgage, keep your goals and needs in mind. There are many options, and a mortgage can be customized for your own circumstances. Types of mortgages include uninsured low ratio or conventional mortgages and high ratio mortgages. Then there are a variety of features and payment options to consider. Mortgages are available on a closed or open basis, at fixed or variable rates and can have various terms generally ranging from six months to five years, but some institutions will offer seven or 10-year terms. Generally, most mortgages are amortized over 25 years.Other features and options to … (1 comments)

canadian mortgage: Short Term or Long Term, Fixed or Variable? - 07/22/10 07:40 AM

Choosing between a short or long term and fixed rate or variable rate depends on:•    The level of interest rate risk you can take•    Your flexibility•    The level of security you need.Generally, you get lower interest rates with a shorter term (i.e. 1 year) and higher interest rates with a longer term (i.e. 5 year).Consider a short term mortgage when:•    You are willing to follow interest rates closely and risk a higher rate when your term is up for•    renewal•    You think the current interest rate is high and expect interest rates to fall in the short term.•    Consider a … (1 comments)

canadian mortgage: Fixed or Variable Rate Mortgage? - 07/09/10 08:06 AM
How about both? According to the annual RBC Homeowners Survey released this week, 40 percent of people surveyed who are planning on buying a home in the next two years would opt for a combination mortgage. This is a stark rise above the 32 percent who chose this option last year. Not surprisingly, 16 percent of those surveyed say they would opt for a variable rate mortgage in 2010 down from 20 percent in 2009. Fixed rate mortgages are guaranteed not to rise during the agreed mortgage term. They provide a feeling of security to Canadians who want predictable monthly payments … (1 comments)

canadian mortgage: U.S. Gives Kudos to Canada’s Mortgage Market - 07/09/10 08:04 AM
Canada’s mortgage market was a highlight of a recent industry meeting sponsored by the U.S. Federal Reserve Bank of Cleveland. Virginie Traclet from the Bank of Canada was there to present rules governing our mortgage market. Wall Street Journal housing reporter and blogger James R. Hagerty noted key differences in the Canadian mortgage system presented by Traclet, that likely helped stave off an implosion similar to the US housing crash:
Interest on mortgage debt in Canada is not tax deductable, thus lowering the incentive among homebuyers to take on more debt. Lenders in Canada can go after borrowers’ other assets … (0 comments)