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    Thursday, December 6, 2018   /   by Price Team Mortgages

    WHAT’S AN ACCEPTABLE DOWN PAYMENT FOR A HOUSE?

    Ask people this question and you will get a variety of answers.  Most home owners will say 10% is what you should put down. However, if you speak with your grandparents, they are likely to suggest that 20% is what you need for a down payment.
    The truth is 5% is the minimum down payment that you can make on a home in Canada. If you are planning on buying a $200,000 home then you need $10,000.
    It all can be explained by the creation of the Canadian Mortgage and Housing corporation (CMHC) by the Canadian government on January 1st, 1946. Before this time, you needed to have 20% down payment to purchase a home . This made home ownership difficult for many Canadians. CMHC  was created to ease home ownership. This was done by offering mortgage default insurance. Basically what CMHC does is it guarantees that you will not default on your mortgage payments. If you do, they will reimburse the lender who gave you the mortgage up to 100% of what the homeowner borrowed. In return lend ...

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    Wednesday, December 5, 2018   /   by Price Team Mortgages

    MORTGAGE PREPAYMENT(S)- THE PERFECT HOLIDAY GIFT!

    Do you know what kind of prepayment privileges you currently have with your mortgage? Does your current lender allow you to make a 10% prepayment or a 20% prepayment on your principle amount? Can you double your monthly payment? Or can you even increase the amount you are paying monthly?
    This is important information, and the following break down is going to show you why making a prepayment on your mortgage may just be the best holiday gift you can get yourself this season!
    Mortgage Structure
    Mortgage Amount: $400,000
    Term: 60 months (5 years)
    Interest rate: 3.19%
    Payment: $1,932.19/month
     
    After 5 years of monthly payments…
     
    Interest paid: $59,068.97
    Principal paid: $56,862.43
    Balance outstanding: $343,137.57
    Amortization remaining: 20 years
     
    After 5 years of monthly payments with double-up payments twice yearly…
     
    Interest paid: $57,621.44
    Principal paid: $77,631.86
    Balance outstanding: 322,368.14
    Amortization remaining: 20 ye ...

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    Tuesday, December 4, 2018   /   by Price Team Mortgages

    THE #1 MISCONCEPTION ABOUT MORTGAGE FINANCING!

    It is a reoccurring but common misconception that you will qualify for a mortgage in the future because you have qualified for a mortgage in the past.
    This is not accurate!
    Do. Not. Assume. Anything.
    Even if your financial situation has remained the same or has improved, securing mortgage financing is more difficult now than it has in recent years.The latest changes to mortgage qualification by the federal government has left Canadians qualifying 20-25% less. On top of that, guidelines that lenders would use in determining your suitability have been replaced with non-negotiable rules and declarations.
    As mortgage professionals, we keep up to date with the latest trends going on in the mortgage world by understanding lender products and staying attentive to evolving changes.
    From experience, we can tell you that having a plan is crucial to a successful mortgage application. Making assumptions about your qualification or just “winging it” is a recipe for disaster. Here ...

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    Monday, December 3, 2018   /   by Price Team Mortgages

    WOULD A CO-SIGNER ENABLE YOU TO QUALIFY FOR A MORTGAGE?

    There seems to be some confusion about what it actually means to co-sign on a mortgage… and any time there is there is confusion about mortgages, it’s time to chat with your trusted Dominion Lending Centres mortgage professional!
    Let’s take a look at why you would want to have someone co-sign your mortgage and what you need to know before, during and after the co-signing process.
    Qualifying for a mortgage is getting tougher, especially with the 2017 government regulations. If you have poor credit or don’t earn enough money to meet the banks requirements to get a mortgage, then getting someone to co-sign your mortgage may be your only option.
    The ‘stress test’ rate is especially “stressful” for borrowers. As of Jan. 1, 2018 all homebuyers with over 20% down payment will need to qualify at the rate negotiated for their mortgage contract PLUS 2% OR 5.34% which ever is higher. If you have less than 20% down payment, you must purchase Mo ...

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    Friday, November 30, 2018   /   by Price Team Mortgages

    VARIABLE RATE? TO LOCK IN OR NOT?

    This post applies if you are taking a new mortgage, whether it’s for a purchase, refinance, or renewal. The variable remains the main contender.
    But what about all the economists saying if you are currently in a variable rate mortgage then you should rush to ‘lock in’?
    You mean the economists that are employed by profit driven shareholder owned institutions that directly benefit from your locking-in (banks) via instantly increased profit margins and massively higher (up to 900% higher) prepayment penalties that 2/3 mortgage holders will trigger?
    A bit biased, that crowd.Also they are generalists, they’re not specialists.
    But what about independent real estate experts?
    While these experts may have their finger on the pulse of many facets of the real estate market, many remain totally unaware of how exactly mortgage prepayment penalties are calculated, and just how likely you are to trigger them.
    Also generalists, are unaware of many nuances of mortgage pr ...

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