Real Estate Blog - mortgage

The Advantages of Putting 20% Down on Your Home

Is it possible to have a down payment strategy in today’s sizzling Canadian real estate market? From the Prairies to Atlantic Canada, it is clear that all kinds of residential properties are rising in value. And while there are obvious advantages of putting 20% down on your home, current conditions are posing challenges to many homebuyers.

When you factor in higher interest rates, rampant price inflation, and accelerating price growth for single-family homes and condominium units alike, it can be a challenge for prospective homebuyers to find a place.

One of the biggest hurdles for buyers to overcome is the down payment.

According to the federal government’s rules, homebuyers need a minimum of five per cent down…

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4 Options for Financing Your Home Renovations

If your family home lacks space but you don’t want to move, you’ll be joining thousands of other Canadians who have chosen to renovate their properties. Whether you’re adding an extension, overhauling your kitchen, or knocking down walls to create better flow, you can likely count on one thing: you’re about to embark on an expensive project. Don’t fret if your dreams are bigger than your budget—there are a lot of ways to finance home renovations. While it may be tempting to borrow money, just remember you’ll have to pay that loan back, so be sure to make a plan that factors in the potential of further interest rate increases. Here’s how you can pay for upgrades to your property.

1. Take out a personal loan or borrow from family and friends 

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Avoid Doing These 4 Things if You are Closing on a Home

You may breathe a sigh of relief once your offer to purchase a home has been accepted, but you’re not quite done yet. Between the time you come to terms with the sellers and the moment you finally put your key in the front door, you’ll be navigating the closing process—along with its associated costs.

There are multiple steps involved in the transfer of a home. While closing times can vary, it can take up to three months between an accepted offer and signing day, notes David Stevens, a REALTOR® with Royal LePage Coast Capital Realty in Victoria, British Columbia. 

This includes time for processing the deposit, conducting a title search, getting a home inspection organized, finalizing the purchase agreement, the lender’s property appraisal, and…

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Owning Is More Affordable Than Renting in Most of Canada

Is it better to buy or rent a home in today’s sizzling real estate market?

Because the barrier to entry in Canada’s housing sector has intensified over the last couple of years, many prospective homeowners have given up on the dream of homeownership, choosing to maintain their renter status. Even when they save enough for a down payment, the minimum threshold rises because of how rapid price growth is in this environment.

Remember, the national average price for a home in Canada is approximately $820,000.

As a result, many Canadians do not have a choice but to continue renting an apartment from a corporation or leasing a three-bedroom, two-bathroom house from private individuals.

But is this throwing money down the…

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Condo Fees - What Do They Cover?

Condos are often attractive to buyers, not only because they can be in a more favourable price range than single family homes, they can provide easier access to amenities and a low-maintenance lifestyle. 

However, these benefits don’t come without a cost. In addition to your mortgage, you’ll need to plan for the maintenance fees, also known as condo fees. This article will look at what condo fees are, when they can be reassessed, and what they mean for your mortgage, specifically related to an apartment-style condominium building.

What are condo fees?

To put it simply, condo fees are monthly contributions made by unit owners to a condo corporation (the organization that runs the condo building). This money is then pooled together and goes…

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The Lowdown on Private Mortgages

Some prospective homebuyers are turning to private mortgages in this red-hot Canadian real estate market. A private mortgage is a home mortgage from a private individual or company that is not a federally regulated financial institution. In an environment of historically low-interest rates and strengthening demand for limited residential properties, Canada’s private mortgage lending market is thriving amid tighter federal rules and regulations. Private lenders will argue that the current rules are too conservative and could leave too many people on the sidelines, especially when prices are growing at exponential levels.

Statistics Canada data show that non-bank residential mortgages rose to approximately $339 billion as of…

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Mortgage Types You Should Know: Open, Closed, Convertible, Hybrid

Just like searching for a home, there are many options beyond fixed or variable rates when it comes to mortgages. In Canada, there are several types of residential mortgages available for everyone’s unique financial circumstances, no matter if you’re looking for an open mortgage or a hybrid option.

So whether you’re a new buyer qualifying for your first mortgage or an existing holder, what are the key things you need to know about the most common mortgage types? Frances Hinojosa, ​​CEO, co-founder, and principal mortgage broker at Tribe Financial Group offers some insights.

Open and closed mortgages

If you anticipate making any lump sum payments on your mortgage, you might want to weigh your options between a closed or open mortgage.

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What Is a Reverse Mortgage?

Typically, when tapping into your home’s equity, one uses a home equity line of credit (HELOC) or refinances their mortgage. What if we told you this was not the only way to free up home equity for other purposes? While a traditional mortgage is a loan secured by a home or property, the borrower must pay back the loan each month with interest throughout the loan lifetime. A reverse mortgage is the opposite. So, what is a reverse mortgage anyway?

A reverse mortgage is exclusive to Canadians over the age of 55. In a reverse mortgage situation, the homeowner can borrow as much as 55 per cent of the current home’s value. In other words, they are borrowing against the equity in the home. The borrower receives the money and does not have to make any…

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How Will Higher Interest Rates Impact My Mortgage?

How will higher interest rates impact my mortgage? It’s a question more homebuyers and homeowners are asking, in the wake of the Bank of Canada’s recent interest rate hikes. We consider many variables in life before making any big decision, and one of the most important ones to think about when buying a home is the current state of interest rates. While a low interest rate is desirable for a prospective buyer, as it means they have more purchasing power, lower rates may not be all they are cracked up to be.

Interest rates fluctuate. They rise and fall in response to the economy and world events, and can significantly impact the amount you pay for your home over the lifespan of your mortgage.

Typically, mortgage loans are…

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What You Need to Know About First-Time Home Buyer Budgeting

As a first-time home buyer, you probably already know you’ll need a chunk of cash for a down payment. But lots of other costs can creep up when it’s time to jump into the real estate market, so it’s a good idea to save up for them and be ready for when the time comes to make an offer. Here’s how one first-time home buyer is navigating this exciting time.

Start budgeting early 

When Montrealer Kelly Wong decided last summer to buy a two-bedroom condo or small home on her own, she knew she had lots of homework to do, including figuring out what she could afford. 

TIP: Using an online tool like our Mortgage Payment Calculator can allow you to see what your mortgage expenses will look like.

Wong also teamed up with Jean-François Gionet,…

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