Category Archives: Financial Tips

Reverse Mortgages on the Rise

Aging Canadian’s in need of a financial boost are cashing in record numbers, according to data released earlier this month. A report released by the parent company of HomEquity Bank, the nation’s sole provider of reverse mortgages, states that a record number of reverse mortgages (with a rough total worth of $67.2 million) were closed in the fourth quater of 2011.

Reserve mortgages are becoming increasingly popular among the nation’s elderly, especially those who have failed to save enough to fund a comfortable retirement. Reverse mortgages allow seniors to borrow up to 50% of the appraised value of their home; principal repayment (along with interest) is not collected until the home is sold.

Is a reverse mortgage right for you? It could be, especially if you’re house-rich but cash-poor. The following is a full analysis of the pros, cons and alternatives to Canada’s newest mortgage craze. Continue reading →

Mortgage Brokers Offer Tangible Benefits

Very few people can afford to pay for their property in full. This is by no means a bad thing – property is expensive and it’s perfectly normal for an investment of this size to require long-term financial planning.

That’s what mortgages are all about.

Banks and lenders provide individuals with the option of borrowing money in order to afford a property purchase. But how do you know what kind of lending agreements are out there? The most obvious course of action is to head to your bank. But let’s not be hasty. Banks can only provide you with access to a small slice of the mortgage pie. A qualified mortgage broker, on the other hand, can connect you with lenders of all shapes and sizes, including trust companies, chartered banks, credit unions and private funds.  Continue reading →

How to Get a Mortgage When You’re Self-Employed

More and more Canadians are leaving the head office for a home office, quitting corporate jobs in order to start their own companies. In fact, statistics show that nearly 20% of all income earners in Canada are now self-employed. Which is fantastic… until you need to apply for an affordable mortgage rate. Securing a mortgage when you own your own company can be difficult, especially if your business is relatively new. Today, lenders want proof of a stable income before considering adding you to their accounts. Here are a few ways to ease the process and increase your chances of qualifying for the best mortgage rates. Continue reading →

How to Check Your Credit Score

Did you know that your credit score can mean the difference between an affordable mortgage rate and an astronomical one? This three-digit number can unlock endless possibilities for your financial future, but only if you know how to properly maintain it. The first step? Knowing how to check your credit rating. Continue reading →

How Much Does Mortgage Insurance Cost?

As a first-time homebuyer, chances are you’ve never heard of mortgage default insurance. More often than not, it isn’t until you’re sitting across from your lender that you learn about this expensive requirement. You see, in order to qualify for certain types of mortgage products in Canada you are required to be “insured”. While most insurance products are designed to protect your dependants in the case of an unexpected accident, mortgage default insurance actually protects your lender if ever you are unable to make your mortgage payments. It’s a strange concept for many property virgins, but one that should be discussed early in the homebuying process. Continue reading →