If you are self employed, depending on how to earn and report income, a lender could request these documents: - Last two years T1 Generals and statement of business activities - Last two financial statements - Last two business licenses - Incorportation documents or partnership agreements
A down payment can come from several different resources. 1. You can use your RRSP's as a down payment. You are required to pay them back within 15 years but you can deduct them tax free when using an RRSP as a down payment on a home as a first time home buyer. 2. Your
As a general rule of thumb, it’s recommended that you put aside at least 1.5% of the purchase price (in addition to the down payment) strictly to cover closing costs. There are several items you should budget for when it comes to closing costs. Property Transfer Tax is charged whenever a property is purchased, unless
The answer to this question depends on your personal risk tolerance. If, for instance, you’re a first-time homebuyer and/or you have a set budget that you can comfortably spend on your mortgage, it’s smart to lock into a fixed mortgage with predictable payments over a specific period of time. If, however, your financial situation can
Most lenders look at five factors when determining whether you qualify for a mortgage: 1. Income; 2. Debts; 3. Employment History; 4. Credit history; and 5. Value of the Property you wish to purchase. One of the first things a lender will consider is how much of your total income you’ll be spending on housing.
While the lending industry’s benchmark amortization period is 25 years, and this is the standard that is used by lenders when discussing mortgage offers, and usually the basis for mortgage calculators and payment tables, shorter or longer time frames are available – to a maximum of 30 years. The main reason to opt for a
Most lenders offer pre-payments privileges, which allow you to put money down to your principle mortgage amount and pay out your mortgage sooner. The amount of pre-payment every year varies from 10% to 25% of the original mortgage amount depending on the lender. You can also double up your regular mortgage payments.
You might receive the lowest rate your 'bank can offer' to it's loyal customers but unfortunately this does not mean that this will be the lowest rate available in Canada . Typically, your bank will offer a mortgage broker an even a lower rate because we do many mortgages and are competitive with our rates. So before you sign
As a Mortgage Brokerage, we have seen a lot of changes in this regard as of late. In most cases, we can ignore 0 balances on available credit and use just the balance on the credit card or line of credit when qualifying. Many financial institutions, on the other hand, often have to take into account