A couple in their 30s contacts me for a mortgage. They want to buy a new home. She’s a high school teacher and he’s a computer firm manager. Incomes are good. I check their credit.
Let’s stop here for a minute… If they have good credit, an approval is simple and we can provide the clients with several mortgage options.
But let’s assume that this couple ran into some debt and credit issues three years ago… and they made three different choices about how to resolve those credit problems: 1) Credit Counselling; 2) Consumer Proposal; or 3) Bankruptcy. I want to take you through each scenario and show you how long each of these three options affects your ability to finance a home. I bet the results will surprise you! Continue reading “Credit counselling, Consumer proposal or Bankruptcy… Which option is most favourable?”
Canada’s a nation of immigrants. It truly is the land of opportunity. Chances are, your parents, grandparents or great grandparents came here from another country.
There are many reasons why people left their homeland. Some left by choice to pursue a better life. Others had to leave for safety reasons. Whatever the reason, most of us have a common goal: A better life.
Homeownership has always been an important part of that dream. We want to own something. We want to plant roots. There’s a pile of statistics to support this claim. In my 28 years in the financial services industry, I can attest to this claim.
Continue reading “Yes, you can still buy a home in Canada… Keeping the dream alive”
Mortgage stress test is the buzz phrase in mortgage lending for 2018. Every borrower, regardless of how much down payment you’re making, must pass a stress test to qualify for a mortgage. The math is simple, yet intimidating. Lenders must now use your mortgage contract rate PLUS 2.00% to qualify you.
Yes, that’s correct. You need to qualify at a rate that’s 2.00% higher than your actual rate. And it doesn’t matter if you have 35%, 40%, 50%, 60% or even 70% down payment. That will not have any impact on your approval. It’s all about how much income you can prove you earn and the strength of your credit worthiness.
For many, this new rule will prevent them from qualifying for a mortgage. And for seniors or people approaching retirement who still require a small mortgage to get through the next 10 or 20 years, these new mortgage rules are a killer. The stress test is surely causing stress among many Canadians!
I’M RETIRING AND WANT TO STAY IN MY HOME…
A reverse mortgage is a terrific option for homeowners who are at least 55 years old. It empowers them to be able to stay in their home and access tax-free equity without having to make regular payments.
Continue reading “Reverse Mortgages growing in popularity… Product of the year 2018?”
Debt. It’s a popular topic. Personal debt. Govt debt. Corporate debt. Back in 2013, I published an article comparing Canada’s debt with the rest of the world. Back then, like today, there was so much negative news being written about our so-called high personal debt level. I thought I’d turn the tables on the govt and see how they were doing.
Here we are, 2018 and five years later. We’re supposedly experiencing fantastic economic times. Lowest unemployment in 40 years according to the Dec 2017 job report. Things are so good that we can increase minimum wage by over 30% in Ontario and other Provinces. We must really be doing great, right? Scorecard time…
The logical conclusion, or the simple math equation is with GOOD TIMES OR A STRONG PROSPEROUS ECONOMY = LOWER NATIONAL DEBT…. Consumers are expected to lower their personal debt levels. Isn’t the govt supposed to lower or work on eliminating our national debt? One would think so. Let’s find out… Continue reading “World Debt clock comparison… How’s Canada doing compared with the world?”
TIME IS ALMOST UP..
With just days to go before the new mortgage rules take effect on January 1st, we are seeing a flurry of mortgage applications. Panic buying and refinancing is at its peak. And rightfully so.. next year, you will qualify for at least 15% less mortgage.
(TIP… get a preapproval before Dec 31st and it will remain valid for 120 days from the date of preapproval. You do not have to enter into a purchase agreement before Dec 31st. And if refinancing, you don’t have to close prior to Dec 31st. This is not with all banks. Call my office for more info.)
LET’S BEAT UP ON THE SELF-EMPLOYED SOME MORE Continue reading “Last call for mortgage approvals under the current rules….and an in-depth look at how these new rules will impact YOU in 2018.”