Rental Property Financing

Lending requirements about the purchase of rental properties are almost as varied as the number of lending institutions. I would definitely discuss your present circumstances and the kind of rental property you would like to buy with your mortgage broker. If you are looking to buy a house in Ontario for you to move into,

Mortgage Application Basics

At some point during the purchasing process your mortgage broker will need to complete a mortgage application on your behalf. The following information will be needed for each applicant and any guarantors. Full name and date of birth Address and postal code, how long you have lived there Previous address and how long you lived

Mortgage Discharge Penalties

This is the most difficult topic related to mortgages and it will continue to be confusing until the laws in Canada are changed to require consistency on how lending institutions charge their penalties. Most lenders charge an early payoff penalty on closed mortgages if the debt is paid prior to the maturity of the term.

How the mortgage market works in Canada

In Canada, mortgage rates are set by the major financial institutions, in a “follow-the-leader” manner, with one of them, usually a major bank, taking the “leader” role. All major financial institutions earn a large part of their income on the “spread”, which is the difference between loan/ mortgage rates they charge to borrowers and the

Guarantor

A person who promises the lender she or he will repay a debt if the principal debtor defaults. A guarantor will be requested if the clients who apply for a mortgage are unable to obtain financing by themselves. Circumstances where this could happen would include: insufficient employment history, poor history of debt repayment or un-confirmable