Entries by webadmin

Halt to Further Mortgage Tightening – The Stress Test

Mortgage Professionals Canada has asked the Department of Finance for a moratorium on mortgage rule changes until the effects of the current changes are known.Speaking before the Standing Committee on Finance this week, MPC CEO Paul Taylor spoke to the association’s key concerns about the new rules and its hope that certain aspects will be […]

How Does the Bank Pre-Qualify You For A Mortgage?

Video #1 – Mortgage Pre-Approval A mortgage pre-approval shows you, the homebuyer, what price of home you can afford and the mortgage payments associated with various purchase prices.  It also guarantees a mortgage rate for a period of time (usually 90 days), that will lock in your rate if potential rates increase. You are not […]

What Is Your Credit Score and How Can You Improve It?

A credit report is a detailed up-to-date report of your credit history. It shows banks/lenders the level of risk if they lend you money. It is also an indicator of how consistently you pay off your bills and debts. Your credit score is one of the factors lenders consider when qualifying you for a mortgage. A good […]

Are My Property Repairs Tax Deductible?

By Gabor Palos – D&H Group LLP, Chartered Accountants Owners of residential rental properties often spend significant money on the maintenance and improvement of their investments. And they often wonder whether they can deduct these expenditures on their income tax returns. The answer is: it depends. The tax rule says that the cost of maintenance is […]

How Does the Bank Determine Your Maximum Affordability?

Video #2 – Gross Debt Service Ratio and Total Debt Service Ratio It’s a good idea to understand how the bank/lender will calculate the maximum amount they will loan to you for a mortgage. The two calculations a bank/lender calculates are: your gross debt service ratio (GDS) and your total debt service ratio (TDS). To […]

RRSP Home Buyer Plan Information

Video #3 – Using Your RRSP’s for Your Down Payment. One great source of funding for your mortgage down payment is a Registered Retirement Savings Plan (RRSP). The Canadian Government’s Home Buyers’ Plan (HBP) allows you to borrow up to $25,000.00 from your RRSP for a down payment, tax-free. However, since the HBP is considered a […]

Fixed Rates Compared to Variable Rates

Video #4 – Should You Select a Fixed or a Variable Rate When You Obtain Your Own Mortgage? One of the first decisions homebuyers and mortgage shoppers face is whether to select a fixed rate or variable rate mortgage. With a fixed rate mortgage, the mortgage rate and payment you make each month will stay […]

What Is Mortgage Default Insurance? Do I need It?

Video #5 – Do I Need Mortgage Default Insurance When I Transfer The Property Into My Name? Mortgage default insurance, commonly referred to as Canadian Mortgage and Housing Corporation (CMHC) insurance, is mandatory in Canada for down payments between 5% (the minimum in Canada) and 19.99%. Mortgage default insurance protects lenders if a homeowner defaults on […]

Land Transfer Tax – What Is It and Does It Apply to Me?

Video #6 – Land Transfer Tax (LTT) is a full tax everyone has to pay unless you are a first time home buyer. Land Transfer Tax is charged by the Land Title office when you make changes to a property’s title (ex. you are putting the property title from someone else’s name into your name). This is not the […]