Considering A 5 Year Fixed Closed Term?

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When shopping for a mortgage most of us would be interested in just securing the lowest rate while others may be keen in the lowest payment. The difference is that the lowest rate (ie 5 year fixed closed term at 2.99%) has blended payments of both interest and principal, while an interest only payment may very well have the lowest payment, but there is absolutely no requirement to pay down any principal.   Continue reading “Considering A 5 Year Fixed Closed Term?” »

Conventional or Collateral….What’s the Difference?

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When you approach your lender for a new mortgage, I’m sure one of the most important questions to ask will be “what’s your best rate?” You may have already gone on the internet or talked with a mortgage broker and determined the very best rate for the term you are considering and now are hoping your own bank will match the offer. Continue reading “Conventional or Collateral….What’s the Difference?” »

5 Year or a 10 Year Fixed Term…Which to Choose?

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Firstly, both the 5 year and 10 year fixed term rates are at or near all time lows. Historically, we’ve seen much higher rates. Does anyone remember the early ’80’s when rates were in their mid to high teens?  No one would have predicted that five years earlier. I personally do not believe mortgage rates would ever come back to those levels, but what if they were to double to say 6%? Surprisingly enough, just 5 years ago to the day, our lenders were offering their best “special” 5 year fixed term rate at 5.84%. Most likely one day we will start to see a slow increase of rates so the real question is not if rates will go up, but when. Continue reading “5 Year or a 10 Year Fixed Term…Which to Choose?” »

Self-Employed? Here’s How to Qualify

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If you are self-employed and considering a home purchase with a 5% downpayment, you will need to confirm (if you are a sole proprietor or in a partnership) via business licenses, HST/GST returns, or T1 Generals that you have been in business for at least two years. If you are incorporated, then your articles of incorporation or company financial statements will be required as evidence of self employment. For most of you this will not be a difficult task to fulfill. Continue reading “Self-Employed? Here’s How to Qualify” »

Should I Continue To Rent, Or Is This The Right Time To Buy?

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The “rent versus buy” choice is indeed a life changing decision for you and your family to make. There are many pros and cons on both sides. Some of you may be struggling with the 5% down payment requirement to qualify. Others may have a blemish on their credit bureau report that prevents a lender and the insurer (CMHC/Genworth) to approve you. Continue reading “Should I Continue To Rent, Or Is This The Right Time To Buy?” »