Mortgage Intelligence

Oshawa's Mortgage News Desk!


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Why Mortgage Before March 17?

db14142_fb_homeowners_i14759090_miIf you’re in the market for an insured mortgage, then you might want to get that mortgage before March 17.

Canada Mortgage and Housing Corporation (CMHC) is raising premiums for insuring mortgages on Canadian homes for the third time in three years. Canadian homebuyers are required to have mortgage insurance if they have less than a 20 per cent downpayment. The insurance provides protection for the lender in the case of a default.

How will it hit your wallet? The increase is not too significant for those making the minimum downpayment required. A homebuyer with a $250,000 mortgage and a 5 per cent downpayment will only pay about $5 per month more in insurance premiums.  We can calculate exactly how much the increase will mean to you if you get your mortgage approval on or after March 17.

The increases are actually more substantial for larger downpayments of 15 per cent or more. Those with 20 per cent or more downpayment aren’t required to have mortgage insurance, although it’s used by lenders that securitize their mortgages. As a result, any increased cost will likely be passed on to customers through higher rates.

Premiums are also increasing for “non-traditional” insured mortgages i.e. home buyers with borrowed downpayments, a type of mortgage downpayment that could grow in popularity as homebuyers strive to gain entry in the housing market.

The premium change will come into effect on March 17. Homebuyers will be able to access the current lower rates if they have bought a home and are approved before the March 17 deadline, even if they have a later closing date.

If you are looking to buy, get in touch with the team at MiMortgage.ca today!


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Get the best mortgage rate: Five Tips to “financial fitness”

financial-fitness

Image by courtsey of towpathcu.com

When the time is right for you to buy a home, make sure you are financially fit and eligible for the best possible mortgage rates. Here are our top five tips to boost your “financial fitness”:

1.     Whip it. Whip your credit rating into shape: pay your bills on time… every time.  Keep your oldest credit card for its history, and make sure it is always paid on time. Try not to apply for new credit.

2.     Follow the 33% rule. Never run up a credit card or line of credit past 33% of its available limit. If you’ve got a $3000 limit, then $1000 is your absolute ceiling.

3.     Cash is king. Gather up the maximum downpayment possible. The more money you put down on a home, the better.

4.     Be prepared. Put together a file folder with the following: pay stubs, or proof of self-employment income, list of debts and assets, and current bank statements. We can advise what documents you will need.

5.     Start a dialogue. Talk to an expert at MiMortgage.ca about your plans. Find out if you can pre-qualify, and ask about how you might qualify for the best possible rate.

The process of qualifying for a mortgage begins long before you decide to buy a home! But if you make a plan to improve your financial fitness… you’ll have no shortage of lenders willing to compete for your business. Contact us now to get on the right path to financial fitness!


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Did you know???

When buying a home, you can borrow your down payment through

Image by courtesy of makaaniq.makaan.com

Image by courtesy of makaaniq.makaan.com

  • Personal loans
  • Lines of credit
  • Credit cards

Thinking of buying a home? Speak to an expert at Mimortgage.ca today, to find out how you can qualify under the “Flex Down” plan.


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Rent-to-own for beginners (7/7)

How does rent-to-own serve a person with bad credit?

If you are looking to buy a home on rent-to-own and want to find out more information on how you can improve your credit, contact the mimortgage.ca team today. To get pre-approved today, apply now through our secure online website or speak to one of our agents at (866) 452-1100.


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Rent-to-own for beginners (5/7)

Can I choose the home?

If you want to choose the home you are looking to buy for rent-to-own and would like more information, contact the mimortgage.ca team today. To get pre-approved today, apply now through our secure online website or speak to one of our agents at (866) 452-1100.