Real Estate Blog - mortgage

The Difference Between Being Pre-Qualified and Pre-Approved

Purchasing a home can be confusing with all the different terms and requirements. Two steps involved in the mortgage process are pre-qualification and pre-approval. But what’s the difference between being pre-qualified and pre-approved?

Prospective homebuyers should consider getting pre-qualification at the onset of their home-buying process. It allows them to consider their budget and gain insight into their mortgage options.

Prospective homebuyers should consider getting pre-approval when they are more involved in the home-buying process, ideally within three months of the expected purchase date of their new home. It allows them to understand their financial position better and narrow their options.

Being Pre-Qualified

Getting…

359 Views, 0 Comments

Buying a House on a Single Income

Through the 21st century, the number of Canadians buying a home on a single income is steadily growing as more remain unmarried. Since single mortgage applicants rely on only one salary and one credit profile, it can be trickier to obtain a mortgage. However, there are many instances in which buying a house on a single income is the best thing to do, and it is possible to get a mortgage if you plan ahead and ensure that you are in a good financial position.

When Buying a House on a Single Income Makes Sense

There is no “right” time to buy a house, and it can be even more nerve-wracking to purchase a home on a single income. However, there are times when buying a place on a single income does make sense.

If you are…

328 Views, 0 Comments

What Are Condo Fees?

What are condo fees, how are they calculated, and what do they cover? Condos have become the home of choice for many Canadian homebuyers, particularly first-timers, but increasingly move-up buyers as well. But many don’t understand this lifestyle option before deciding that it’s right for them.

Homeowners are drawn to condo living for a variety of reasons. It is a good option as residents age and can no longer care for a house or want to downsize. There is less maintenance and repair responsibility and more security features. But the big draw is often on-site amenities such as a swimming pool that you would not otherwise be able to afford.

Affordability is a big factor behind the relatively recent shift to condo living,…

456 Views, 0 Comments

How Do You Pay Off Your Mortgage Faster?

Buying a home is a big investment and a huge commitment, but most homeowners will attest that the pay-off is worth the pains and strains of making those regular mortgage payments. Most people focus on their mortgage interest rate as a way of saving money (or at least, ensuring more of it goes toward your principal), but there are other ways to decrease the amount paid in interest. One way is to pay your mortgage off faster. More on that below, but let’s start with a basic mortgage 101.

What is a mortgage?

In order to buy a home in Canada, you’ll need a down payment of at least five per cent of the home’s purchase price (but it can be more). These funds are typically saved over time and can be boosted with the help of…

497 Views, 0 Comments

What Happens If I Can’t Pay My Mortgage?

While you might have felt perfectly capable of making mortgage payments when you bought your house, sometimes financial situations arise that affect your ability to make regular mortgage payments. This can have a huge negative impact on your credit score and can put your home in danger of being repossessed if you don’t take immediate action. Luckily there are options that can give you time to turn your finances around. Here’s what you should do if you can’t pay your mortgage.

What Happens If I Can’t Pay My Mortgage

Determine the Reason You Can’t Pay

In most cases, people do not fall behind on mortgage payments on purpose. Rather, there is an underlying reason that you can’t afford to make your mortgage payments. Once…

452 Views, 0 Comments

Locking In a Variable Rate Mortgage

When mortgage interest rates were on a downward trend in the early days of the coronavirus pandemic, a variable mortgage rate made sense. With no signs of tightening on the horizon, the housing market boomed at extraordinary levels never seen before.

Now that interest rates are rising as the central bank attempts to rein in out-of-control price inflation, the discussion is how high mortgage rates will go. It is a crucial conversation, since rising rates will increase your monthly mortgage payments. While it’s challenging to forecast just how high mortgage rates will climb, Canada Mortgage and Housing Corporation (CMHC) thinks they will start to stabilize in 2024, which is when some market analysts expect the Canadian real estate market to…

356 Views, 0 Comments

What Is a Clean Offer?

What is a clean offer? This term actually has nothing to do with housework. Below, we answer some of important questions about what a clean offer is, how to go about presenting a clean offer, and the risks and benefits of making one.

What is a clean offer?

A clean offer is an offer to purchase a home without any conditions attached to it. Also called a contingency-free offer, a clean offer aims to entice the seller with the promise to buy a home without any caveat that might cause the deal to fall through, which can happen based on the conditions specified in the offer. Conditions, and reasons to renege, may relate to the buyer or seller, and may include conditions like an unsatisfactory home inspection, the buyer’s…

330 Views, 0 Comments

A Look at Financial Help and Incentives for First-Time Homebuyers

Despite recent softening in the housing market, home ownership in Canada is expensive and can be intimidating if you’re a first-timer. Luckily, there’s financial help and incentives for first-time homebuyers, which can help offset the cost of purchasing a new home. You don’t need to feel as if you have to do it all alone – read below to see what incentives are available.

Incentives for First-Time Homebuyers

Home Buyers’ Plan (HBP)

The Home Buyers’ Plan (HBP) offers an alternative way of securing funds for a down payment for first-time homebuyers. If you have a Registered Retirement Savings Plan (RRSP), you may withdraw up to $35,000 from the account to buy or build a qualifying home for yourself or a related person…

446 Views, 0 Comments

What’s Mortgage Pre-Approval? Canadian Real Estate Questions Answered.

To get pre-approved for a mortgage, do I just have to be really nice to the broker?  You have questions about Canadian real estate. Read on for answers.

Though you’re probably that aware posting selfies with the house you’re interested in buying and tallying “likes” has nothing to do with pre-approval. But you may have other questions about the Canadian housing market, mortgages, offer conditions and negotiations and selling. It can all be a little overwhelming, and sometimes you need help.

That’s why RE/MAX Canada decided to hit the streets and talk with Canadians, to see what real estate questions they may need answers to.

How Much do People Really Know About Canadian Real Estate?

How much does the average person…

441 Views, 0 Comments

What Are the Steps to Buying a Home?

What are the steps to buying a home? You’re starting to think about becoming a homeowner, or maybe you’ve even started to look at listings. Either way, you likely have lots of questions, from the general “how tos” to specific queries around financing, different home types and locations, to how to make an offer. To help simplify what can be a complicated process, we’ve outlined the steps to buying a house in Canada.

What Are the Steps to Buying a Home?

There’s a lot to do, but we’ve narrowed it down. Here’s our 10-step home buying process checklist to get you started!

1. Choose a real estate agent that’s right for you.

A home is a huge investment, so work with a realtor that’s knowledgeable, professional and…

299 Views, 0 Comments