Tag Archives: Variable Rate Mortgage

Draft Guidelines: Residential Mortgage Underwriting Practices and Procedures

More stringent mortgage qualifications are on the way. On Tuesday, the Office of the Superintendent of Financial Institutions in Canada released draft recommendations that would impact Canada’s banks and other federally regulated lenders.

The 18 page document contained a slew of information, the majority of which make complete sense. However, there’s still great cause for concern in the financial sphere. According to this document, the OSFI is proposing a swift implementation that could shake the system off its foundations. One reputable mortgage source described the OSFI’s recommendations as a “policy-initiated free-fall”.

While we encourage home hunters to review the entire document (available via this link), here’s what best rate mortgage hunters need to know. Continue reading →

A Review of 2011 Mortgage Trends

The Canadian mortgage market experienced a number of changes this past year. There were some ups and there were certainly some downs. The following are some of the biggest trends from the past year, and how we expect the market to unfold in 2012. Continue reading →

How to Break Your Mortgage Without Breaking the Bank

Interest rates are low, and from the looks of things, should remain stable well into 2012. If you’re currently paying out the nose because you’re locked into a fixed-rate mortgage, now could be a good time to break your mortgage and refinance your rate. Unfortunately, trying to break a mortgage before your term is up can be a nightmare experience. The penalties for bailing early can be high, so don’t be rash with your decision. Consult with a mortgage broker before you dive in head first. Continue reading →

CAAMP Releases Highlights From Fall 2011 Consumer and Industry Surveys

The focus of these surveys was to gather Canadians’ opinions of the mortgage industry. The report includes specific questions on experiences with their mortgage professional as well as information and feedback from industry members.

The survey results were presented by Maritz Research at Mortgage Forum 2011 in Toronto.

Click here to review the entire report.

Things to Consider Before Buying a House

Buying a home is a big investment – both financially and emotionally. Make sure you’re properly prepared by considering the following things prior to submitting a purchase offer.

Your Credit Rating
If you aren’t aware of your credit rating, now is the perfect time to do a little investigating. Making sure your finances are in order is probably the most important step you’ll need to take prior to purchasing a home. Your credit report will play an important role in the mortgage approval process, plus it will also help determine many of your mortgage terms, including the all important interest rate.

Mortgage Types
There are numerous laws and options associated with mortgages. While you don’t need to know all the ins and outs of the mortgage process (there are lawyers for that!) it is important that you understand the different options available to you. From fixed rates to variable arrangements, there are lots of things to consider when deciding on a lender. A professional mortgage broker can help you narrow down your options, but ultimately it’s up to you to determine which lender is best for your needs.

Mortgage Pre-Approval

Being pre-approved for a mortgage can be a huge advantage to any home buyer. Not only does a mortgage pre-approval allow you to better understand and set your budget, it also gives you an advantage when putting in an offer on a property. Sellers have a tendency to favour offers accompanied by proof that a buyer has a mortgage pre-approval from their bank or lender. This shows there is one less obstacle in the transaction process, and could give you the edge to successfully purchasing the home or property you want.

Needs, Wants, and Real Estate Agents

Before you even start looking for homes, sit down and create a well-defined list of needs and wants. Clearly knowing what you need in a home, what you want, and what you get within your budget, will help you and your realtor find an ideal property. Speaking of realtors; before hiring a real estate agent, take the time to understand the particular duties, loyalties, and roles a real estate agent should, and will play in the home buying process

How to Find Your Home

Today, the most obvious tool available in the home search adventure is the internet. There are dozens of quality home search websites in North America that will put photos, amenities, and prices at your fingertips. Just because the Internet is convenient, doesn’t mean you should neglect “old fashioned” methods like driving to visit neighbourhoods, flipping through newspaper ads and classifieds, or grabbing a local real estate magazine.

Time to Make an Offer

One of the most stressful moments for any home buyer is putting in an offer. You’ve got a mortgage pre-approval, you’ve found a home you love; now it’s time to put your money on the table, and sign the papers. As a standard feature to any offer, it’s important to include a home inspection. This protects you against any hidden issues with the structure and construction of a home. Similarly, when it comes to navigating what can often be a long and confusing contract, be sure to have the paperwork checked over by your real estate agent and a lawyer.

Buying a home can be a long and stress-filled event, but if you follow these tips, and do your research before buying a home, you’ll be well prepared, and find a property that meets your unique needs and wants.

Call the Knowledgeable Staff at FamilyLending.ca today to learn more 866-941-6678

Chantielle Kennedy writer for FamilyLending.ca