Historically low interest rates are making it easier for Canadians to enter the real estate market. Why continue to rent when a mortgage payment could be less than your current monthly lease? If you’re considering the here and now, buying makes perfect sense. With the help of a seasoned mortgage broker, you can easily secure a best rate mortgage that’s cost-effective – but what happens when the market shifts and interest rates begin to rise? Continue reading
Category Archives: MortgageCanadaCalculator
Changes Coming for Mortgage Penalties
One of the easiest ways to ensure you’re getting the best mortgage rate around is to renegotiate your financing terms when interest rates are low. Which is great… except for one small problem: penalties. Banks are notorious for slapping borrowers with hefty penalties, especially those who are looking to wiggle their way out of a long-term fixed rate deal.
It used to be that borrowers could anticipate a penalty charge that amounted to approximately three months’ worth of interest at their current rate. Today, most lenders charge a penalty that is based on three factors:
- The current and past interest rates
- The outstanding balance
- The number of months left in the mortgage term
This is knowns as the Mortgage Rate Differential (IRD). Unfortunately for homeowners in search of a best rate mortgage, the IRD is now significantly higher than in the past thanks to rock-bottom interest rates. Continue reading
Getting to Know Your Debt-to-Income Ratio
Do you know your debt-to-income ratio? If you’re like most Canadians, the answer is no. Unfortunately, failure to fully understand this important element of your financial portfolio could cause you grief when it comes time to secure a mortgage pre-approval. Luckily, calculating your debt-to-income ratio is easy – all you need is a good financial calculator and a few necessary numbers. Continue reading
Items to Consider When Aquiring Rental Property
If you’re ready to purchase your first rental property or still on the fence asking yourself if you’re making the best decision, I am here to assure you that the choice to buy your first rental property is rarely a simple one but once you have done so, you’ll never turn back.
You’re probably asking yourself why should you listen to me, but I have purchased and sold over 10 rentals within the last year or two. I’m here to say that if I simply looked out for these particular 5 items which I will share with you, I would happen to be a much more content camper. Instead, I had to learn the difficult way, one building, and one tenant at a time.
These 5 essential items consist of:
What’s the expected profit from your rental property?
• First lets say that you’re taking a look at a duplex for $200,000
• Through your market research and also the details you obtained from your appraiser, you have determined that the current market rents for your region are X.
• Next you should have received a pro-forma associated with expense for the building consisting of the mortgage, insurance coverage estimate, property tax amount, utilities (in the event the renter isn’t having to pay them) and the property management expenditures.
• Your goal is to have this building placing Excellent Cashflow in your wallet from the first day.
• Not all areas are capable of supporting the rent necessary to cover the mortgage and the costs. My suggestion, don’t purchase within the areas where you know that this will not necessarily work. You are looking at places where you can have favourable cash flow, in the end you’re in this to generate income right?
Choose a neighborhood with lower vacancy rates compared to the remainder of the city.
• From my personal experience, it’s best if you look to invest in a rental home inside a healthier community. There are a handful of factors behind this; one is that you’ll be thinking about a greater rental payment as well as 2, the vacancy rates usually are lower.
Take your time in choosing a qualified tenant.
Taking your time and efforts to choose the right tenant will help you decrease risks in the foreseeable future. An even better qualified tenant also means reduced expenses along with problems as time goes on available for you, the owner.
For your first apartment or two, the house that you purchase ought to be in move-in condition.
• Since you will be active in making sure a home is completely leased out when you take control of it, the best thing that can be done is purchase a unit that’s move-in ready. Now I am not including the small work which includes making cosmetic adjustments for example cleaning or maybe painting a room or two nevertheless the changes should not include things like major fixes.
Purchase low and sell HIGH – continually be on the look out for properties that are listed under the current market price.
• Low sale price does not always mean low value or even low rents
• How do you find these types of deals? Ask. Ask every person you know. Take time to get acquainted with the location you are looking for.
• Be on the look out for pre-foreclosures, foreclosures, as well as homes that have been on the market for a year.
Ok now what do you do? Go obtain a rental unit naturally. Still need assistance figuring out what you can manage? Try out our handy mortgage calculator canada that can assist you calculate payment choices, schedule of payments and much more. Also, follow FamilyLending.ca on Twitter and facebook!
The Advantages of Searching for a Mortgage Online
Locating the best and most cost-effective mortgage has always been a cumbersome activity. Investigating interest rates, evaluating mortgage loans, as well as reviewing sources can take a substantial amount of time, effort, and expertise. Thankfully, on-line mortgage brokers, like FamilyLending.ca, are making it their mission to relieve these stresses and make mortgage browsing faster and easier. Locating the best mortgage offer is a valuable part of the home shopping process – make the search less complicated by utilizing the free online mortgage finance calculator as well as other options made available from FamilyLending.ca.
4 reasons why shopping online to get a mortgage loan is sensible:
It’s simple and convenient
Finding information about rates on mortgages has never been easier, thanks to Online Mortgage Brokers. Online mortgage loan organizations give home buyers endless access to important mortgage loan information and facts, along with the opportunity to shop around, as well as complete the mortgage acceptance process, right from the comfort of their own living room.
It helps secure your personal privacy
Purchasing a mortgage online will help safeguard a potential buyer from obtaining an unfair assessment based upon their social standing or local community ranking. Shopping by using an online mortgage loan website will ensure that you are offered a legitimate rate, and not one that’s based upon an unrelated factor.
It will help deal with Interest Rate volatility
The mortgage loan market is highly unpredictable by nature. The rate you see today could be higher than yesterday’s rates, and lower than tomorrows! Thankfully, on the internet mortgage brokers have got specific tools and techniques set up that make it easy for customers to manage market unpredictabilityand easily compare real-time rates.
It helps prevent low-balling
Mortgage low-ballers are financial institutions who trick customers by quoting them home financing rate they may have absolutely no intention of supplying. This occurs whenever a mortgage lender locks an interest rate with the existing “market price” merely to later increase the price when the time comes to complete the agreement. On-line mortgage loan buyers are not vulnerable to price low-balling simply because they can easily check their price online on the lock date. View our Rates Now!
Learn how to get the ideal mortgage online
There are a few factors you’ll need to understand prior to successfully finding as well as applying for a good online mortgage rate. First, you’ll need to understand the procedure for online mortgage loan searching. Family Lending offers a comprehensive collection of content articles on numerous mortgage loans, mortgage refinancing, the home equity process, and much, much more. You will also discover a free online mortgage loan finance calculator that may help you gain a much better understanding of your financial circumstances. Take some time to review these resources prior to shopping online in order to guarantee your comfortable with the actual mortgage approval procedure.
You’ll also wish to decide on the type of on-line mortgage you’d like – are you searching for a Fixed rate or Variable rate? Would you like to make biweekly installments or monthly installments? Knowing the answers to these questions is likely to make your online mortgage shopping encounter an enjoyable one.
You should not have to have a diploma in economics to understand an online mortgage loan application. Shopping on-line for a reasonably competitive mortgage rate is a great strategy to get educated on home financing, as well as make certain you receive the best possible mortgage. For more information on the online mortgages obtainable from FamilyLending.ca, please contact one of our customer service representatives toll-free at 1-866-941-6678.