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Posted by: Adam Sale
The Benefits of Converting an Outstanding HELOC balance to a Mortgage to Help Purchase a 2nd Home Firstly, lets look at why someone may keep a large outstanding balance on their Home Equity Line of Credit: Low monthly debt burden, only interest payments are required, not interest & principal Flexibility to pay off the entire HELOC […]
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Using Rental Income to Purchase Your Next Investment There are 3 categories of rental properties on a mortgage application, each has a distinct way of calculating rental income. The 3 categories are: owner occupied + basement suite, subject property, non-subject property. Owner-occupied + Basement Suite Rental – When the property is owner-occupied, lenders typically allow […]
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Writing a Subject Free Offer – Mortgage Tips Subject free offers seem to be the new normal in Vancouver’s real-estate market. In regards to financing, here are some tips for purchasers writing a subject free offer: Prior to writing the subject-free offer obtain the Property Disclosure Statement, MLS Listing, Strata Form B (if available) & Depreciation Report (if […]
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OSFI Proposes New Stress-Test for Uninsured Mortgages The new proposal for the qualifying rate for uninsured mortgages is the higher of 5.25%, or the mortgage contract rate +2%. This is an increase from the current stress-test of 4.79%. Increasing the stress-test specifically on uninsured mortgages will affect homebuyers purchasing with a 20% down-payment by decreasing […]
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Yesterday (March 10) the Bank of Canada kept their word on keeping the overnight interest rate unchanged. They’ve mentioned numerous times their plan is to keep the target interest rate unchanged until 2023, at which point they believe the economy will show decreased unemployment numbers and the economy will be operating near capacity. However, the […]
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How to use RRSP Contribution to help cover Closing Costs. Most first-time home buyers know $35,000 in their RRSPs can be withdrawn tax-free for use towards the purchase of their first home. What they may not know is the funds must be held in their RRSP for at least 90-days. The minimum 90-day rule creates […]
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Does it make sense to go with the cheaper Variable Rate mortgage or the more expensive Fixed Rate mortgage? It all depends on what the buyer is planning on doing with the property. Scenario 1 – Buy and Flip When purchasing a property to flip the variable rate mortgage adds flexibility to pre-pay the mortgage without […]
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Bond Market Signalling Mortgage Rates Will Start Increasing There’s been recent movement in the government bond market which dictates Canada’s mortgage rates. When bond yields rise mortgage rates tend to follow. Bond yields rise on positive economic outlook, and decline on negative outlook. Several factors in the recent weeks are creating an optimistic outlook for […]
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Flexibility of a Variable Mortgage Product with the certainty of a Fixed Payment Today I spotlight a cool variable-mortgage product offered exclusively by TD. It’s their variable mortgage. Variable mortgage products are excellent for those who have a higher risk tolerance, but want the flexibility of paying off their mortgage without incurring outrageous penalties. Current […]
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How to Make Your Mortgage Tax Deductible Did you know in Canada there are 2 ways to make the interest you pay on your mortgage is tax deductible. The first way, is by owning a rental property. Interest accrued throughout the year on a rental property is a deductible expense from the rental income. This […]
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