Category Archives: Mortgage Down Payment

Alternative Down Payment Funding Sources

The theme for 2012 mortgage rules was pretty obvious: crack down on homebuyers who were looking to purchase a home with little money down. Changes barring cash-back mortgages by the Canada Mortgage and Housing Corp. made it clear that regulators wanted to dissuade cash-poor consumers from taking on more debt. Yet, even despite these changes, first time homebuyers can still manage to enter the real estate market with as little as 5 percent down.

Is this the best way to take your first step onto the real estate ladder? Not necessarily. However, if you’re well-qualified, (aside from the down payment), and have enough potential resources to withstand a loss of income along with the ever present threat of falling real estate prices, you might be better off borrowing to buy instead of throwing your money away on rent.  Continue reading →

How To Buy A House When You Have Bad Credit

According to recent reports, more than one in eight adult Canadians are expected to declare bankruptcy or negotiate a debt settlement with creditors. And yet, Canada’s homeownership numbers are currently at a record high. This just goes to show you that devastated credit doesn’t have to leave you high and dry when it comes to entering the housing market. Granted, credit-challenged consumers are bound to encounter more than their fair share of bumps along the road to homeownership. Even so, poor credit history isn’t insurmountable. Here’s what you need to know if you’ve recently gone through a bankruptcy or consumer proposal but are still optimistic about buying your first home. Continue reading →

What if the Government Didn’t Back Mortgages?

Saving for a down payment on a home takes dedication, perseverance, and sacrifice. For many, it also takes a long, long time. According to a recent report from Rate Supermarket, come 2020 the average cost of a home in Canada will be $553,000. To accumulate a measly 5 percent down payment for such a home, recent graduates should expect to spend at least 12 years saving up. If you’re hoping to pack away 10 percent, prepare to squirrel away your savings for roughly 21 years.  Continue reading →

Avoid Homebuyer’s Regret With These Tips

While buying a home is the biggest investment the average Canadian will ever make, many first-time home buyers still don’t take the time to perform sufficient financial due diligence before signing their offer to purchase. A recent survey commissioned by TD Canada Trust has found that the two biggest regrets include not saving for a larger down payment and not doing enough research into the actual costs of maintaining a home.  Continue reading →

Questions to Help You Avoid Mortgage Penalties

Thinking about opting out of your fixed rate mortgage in order to take advantage of ultra low variable rates? Be careful! Interest rate differential (IRD) charges – commonly referred to as mortgage penalties – could leave a large dent in your wallet if you’re not careful.

Unfortunately, banks have historically made it nearly impossible to figure out just how expensive switching mortgages is. But that’s about the change. A new “voluntary” Code of Conduct has been implemented by the Department of Finance whereby banks are now required to provide their mortgage customers with clearer explanations of prepayment charge calculations, as well as provide calculators so that mortgage holders can estimate their own penalty estimates. Mortgage calculators can now be found on the official websites of the Bank of Montreal, CIBC, HSBC, ING Direct, Laurentian Bank, National Bank of Canada, Manulife Bank, Royal Bank, Scotiabank and TD Canada Trust. Continue reading →