Pros and cons of a mortgage broker

When Chris Vale and his wife Keli Hines bought a home in Oshawa, they arranged a mortgage through an in-house firm their real estate agent’s company had. “We were told, ‘Here’s the rate and here’s what you pay,’ ” Vale recalls of the transaction, which took place several years ago. Then Vale met mortgage broker […]

Buying a house? Don’t go to the bank

I sold my property last week and I’m in a mad scramble to find a new home. With my wish list in hand and a pre-approved mortgage under my belt, I’m confident I’ll eventually find what I’m looking for. Much to the chagrin of my financial planner, a bank employee, I’ve decided to use an […]

A reality test for would-be home buyers

ROB CARRICK | Columnist profile | From Tuesday’s Globe and Mail Never ask anyone who lends money if you can afford a house. Lenders care about their own money. Not yours. So while you’re thinking about how you’ll manage the cost of a mortgage and all your other living expenses, lenders seek the answer to one single question: How […]

Skipping a mortgage payment: Pros and cons

When I logged on to check my bank balance the other day, I noticed a message from the bank saying that I have ‘earned’ a one month mortgage payment vacation. The reason for this  break is that I have been paying off my mortgage faster by making increased contributions each month. My goal is to […]

On The Way: More Stringent Mortgage Qualifications

OSFI, Canada’s banking regulator, is leaning on banks and other federally regulated lenders to clamp down on underwriting practices. It released these draft recommendations yesterday. After reading through 18 pages of changes in detail, our immediate reaction was frankly, concern. That’s not because the guidelines are greatly imprudent. Some are unnecessarily rigid, but most are sound policy. […]

Goodbye to three irritating bank practices

Three annoying things that banks do to customers are about to become history. Following up on commitments made in the past two budgets, the federal government has announced measures that will stop banks from mailing unsolicited credit card convenience cheques to customers, and that will reduce the holding period on newly deposited cheques. The banks […]

The State of Stated Income

Canada has 2.67 million self-employed citizens, about 15% of the work force, says CAAMP. Due to how they report income and deduct expenses, these individuals are frequently reliant on stated income mortgages. A few weeks back, Bloomberg quoted Canada’s bank regulator, OSFI, as saying stated income mortgages “have some similarities to non-prime loans in the U.S.” Just weeks before that, CMHC announced limits on bulk mortgage insurance, which […]

How home closing costs can add up

Home buyers are often advised to set aside one-to-three per cent of the purchase price of their house for closing costs.  These fees are explained during the home buying process, but it is helpful to ask questions so you fully understand how these costs can affect  your budget. Legal fees: On average you should budget $600 […]

Why mortgage penalties are so hard to understand

By Peggy Mackenzie If you want to break your mortgage, there are two ways to calculate the penalty. One uses three months’ interest and the other uses the Interest Rate Differential (IRD).  The bottom line is that with either method, if you want to take advantage of lower interest rates, it’s going to cost you. […]

CHILTON TAKES A SWIPE AT REVERSE MORTGAGES

The list of detractors of reverse mortgage has another name added to it: David Chilton, otherwise known as ‘the wealthy barber’, after the title of this famous book on personal finance. At a speaking engagement Thursday night in Scarborough, Ont., Chilton discussed various mistakes people make while managing their financial affairs. Taking out reverse mortgage, […]

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