Kamloops Property For Sale Real Estate Blog - Credit Mortgages and Finance

Debt vs. RRSP: What should Canadians put their money towards?

With the Feb. 29 deadline for registered retirement savings plan contributions looming, many Canadians are wondering whether it is better to pay off debt or add to their RRSP.

Financial advisers say that while making any contribution to an RRSP or a tax-free savings account (TSFA) is always a good thing, clearing up consumer debt should be the first priority.

“If they’re in credit card debt then forget it, all they should be focused on is paying off that debt,” said David Trahair, a chartered professional accountant in Toronto. “Forget buying a house, forget RRSPs and focus on making money and spending less so you can pay off first the credit card debt and then the student loan debt.”

Canadians with taxable earnings can contribute up to 18 per…

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Co-buying with a firm legal plan

When friends, family become partners

With home prices moving ahead at a healthy clip, people are choosing to purchase a property with a friend or relative.

A lot of individuals, particularly younger adults, feel as if they have been priced out of the market so go in with a friend or a sibling to purchase the property. I see that as a trend that is going to gain momentum.

However, whether you are purchasing with a friend or relative this is essentially a business deal.

If you're looking at buying a property together, friends are no different from business partners. Consult a lawyer and consider what you are doing, the parties could enter into an agreement ... they should consider that they are business partners. The business is owning a…

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Borrowing with the CMHC improvment mortgage

If you fall in love with a fixer-upper, you may find yourself in a tough spot figuring out how to pay the mortgage and cover the cost of renovations or postponing renos until you can afford them.

 Main Benefits of a Purchase-Plus Improvements Mortgage:

The little-known CMHC improvement mortgage (previously known as the purchase plus improvements program (PPIP)) allows home buyers in that scenario to borrow money to buy and immediately renovate a home with funds from their mortgage lender rather than taking out a separate line of credit that usually carries a higher interest rate and adds another layer of complication to their financial life.

PPIP is generally available with as little as five per cent down. However, buying with less than 20 per…

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Can I Get a Mortgage with Bad Credit?

Is It Possible to Get a Mortgage with Bad Credit in Canada?

You had a few financial setbacks when life’s speed bumps tripped you up, but now you’re on the right path and are ready to take the leap into home ownership. The only problem is: you’re not sure if your pesky credit history is going to prevent a lender from giving you a mortgage loan. The good news is there are some options available to you; the bad news is they don’t always come cheap. Here’s a quick breakdown of how you can check your credit score and, if you need to, get a bad credit mortgage. While many brick-and-mortar banks consider customers with poor credit to be high risk, there are lenders who are willing to extend loans to clients, regardless of their payment history. One option is…

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Four mortgage trends to watch in 2016, like more missed payments and private lending

Mortgage rates weren’t supposed to make record lows in 2015, not if you asked economists and the Bank of Canada two years ago. But they did. And despite all the chatter about the first U.S. rate hike since 2006, Canadian rates could do it again in 2016.

But interest rates won’t be all that’s changing in the coming 12 months. Here are four mortgage trends you need to watch in 2016.

More missed payments?

Seemingly every year the government throws new rules at the mortgage market, lending gets tighter and the housing market gets safer. But one thing Ottawa can’t control is world economics. Despite manufacturing gains from a cheap loonie, global growth is slowing. That and plunging oil means more Canadians could be out of work, and when people lose…

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What Happens to My Deposit if I Cannot Close My Purchase?

A buyer who fails to close on a purchase may be risking more than just the deposit - you could be looking at damages, says lawyer Richard Bell

Q: What happens to my deposit if I cannot close my purchase?

A: Whenever a buyer makes an offer for the purchase of real estate the contract provides for a deposit. The deposit is normally around 5 per cent of the purchase price and in most instances is payable within a day or two of removal of any subjects. The standard subjects are subject to financing and inspection. Where the property is strata titled there will also be subjects for satisfactory review of such items as strata minutes, engineer’s reports and depreciation reports.

The reason for a deposit is to secure the buyer’s commitment to purchase…

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Applying for a mortgage if you're a recent immigrant...

While some move to Canada to be with family members or for gainful employment, many others emigrate here to escape difficult situations in their home nations. Regardless of the motivation for moving, owning a piece of property is both a huge point of pride, and one of the most sought-after components of establishing a home in a new country.

But obtaining a mortgage in Canada for the first time can be a tricky undertaking without the right guidance and knowledge. There are several important points for new Canadians to take note of if they plan to purchase property in the near future.

You're considered a new arrival to Canada during your first five years in the nation, and you will be eligible to obtain a mortgage if you have your permanent…

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Increase to Minimum Down Payments - Canada wide increase from 5% to 10% minimum on houses over $500,000

Todays news from the Canadian Real Estate Association

Today, the government announced its intent to raise the minimum down payment requirements on homes valued over $500,000. Requirements will remain at 5 per cent down payment for homes under 500,000. Any amount over $500,000 will require a 10 per cent down payment. For example a $700,000 home will require a $45,000 down payment, 5 per cent on $500,000 and 10 per cent down on the remaining $200,000. The announced changes will take effect on February 15, 2016.

The government cites its desire to “contain risks in the housing market” as the reason for its decision.

As you know, the issue of an increase to minimum down payments is something CREA has effectively and successfully fought against since…

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The lowdown on low down payments

Mortgage insurance a must for those with high-ratio loans

Hot markets and cold feet might keep some people out of the housing market, but a lack of upfront cash doesn't have to be an obstacle. While it's long been the convention in the industry to start with a 20% down payment, the availability of mortgage default insurance means ownership is still possible with as little as 5% down, as long as the buyer meets industry standards of income and creditworthiness.

"What mortgage insurance allows people to do is to get into the market with today's prices, with today's low interest rates, once they have determined that home ownership is right for them," says Mary Stergiadis, principal for Ontario business development at Canada Mortgage and Housing…

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Paying off mortgage safer than investing the cash

Study after study suggests that Canadians are having a tough time paying off their mortgages, as debt levels continue to hit record levels year after year. Why?

Could it be that there are more opportunities to spend? Could it be that some people don't want to pay off their mortgages faster?

Or are some professionals advising alternate investment strategies, suggesting that paying off the mortgage is not the best financial strategy?

BIG MORTGAGES AFFECT RETIREMENT

Rebecca and Darcy are in their mid-50s and are starting to think about retirement planning; they would like to retire in the next five years.

One of their biggest hurdles is a $225,000 mortgage. Currently, their $2,200 monthly payment would have the mortgage paid off in 10 years.

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