The mortgage stress test is a method to find out whether you’ll be able to sustain your mortgage payments after an interest rate increase.
What is a reverse mortgage?
In exchange for a cash loan or line of credit offered by a lender, customers can receive a reverse mortgage, wherein their equity in the home can be utilized for cash with no fixed payments.
Are mortgage rates going to continue to go up in Canada?
The government is increasing its interest rates to fight inflation, so we expect that mortgage rates will continue to gradually rise until we see inflation reduce.
Will your credit standing impact the mortgage application process?
Your credit history indicates to lenders your capacity to repay a loan. Properly prides itself on the access to a wide variety of financial institutions, including finance houses who specialize in offering mortgage services to borrowers with poor credit. We have access to many different credit products, including flexible mortgages that can be devised to suit both the customer’s requirements and their current financial circumstance.
What is the difference between a Mortgage, and a loan?
A mortgage loan is conventional funding secured by a residential property. A mortgage is basically receiving funds in exchange for a promise to repay the funds based on deadlines.
Is it difficult to get approve for a mortgage in this inflationary period?
To qualify for a mortgage, there are certain factors, such as income and credit score, at play. In the vast majority of cases, you will not be challenged for a mortgage loan, but the amount you qualify for can occasionally be challenging.
Fixed vs. Variable Mortgage: Which is better for homebuyer’s today?
A fixed-rate mortgage is a home loan with a set or fixed interest rate for the entire payment period (normally of 1-5 years).
Homeowners who choose fixed-rate mortgages know precisely what they’ll be paying monthly. This makes planning a monthly budget easier.
Those making fixed-rate mortgage payments are liable to pay a premium and will not be eligible for interest rate dips.
A variable-rate mortgage is an interest rate that changes in accordance with market conditions. It is not constant in the way that a fixed interest rate is. Those in a variable-rate mortgage must pay modified payments if interest rates shift towards an increased or lower interest rates.
Regardless of how much variance lies in an interest rate, borrowers are likely to be compensated with a smaller lending rate than they would be for a fixed-rate mortgage. This is meant to compensate for the increased risk the borrower has taken.
Interest rates might otherwise increase as they did last month, and people with variable-rate home loans may experience a spike in their mortgage rates, as well. And they could incur more unaffordable payments.
What is a bridge loan?
A bridge loan is a short-term loan used to cover the gap between your existing home sale closing date, and when you’ve closed on a next home, extracting equity from your existing home.
Bridge loans rarely exceed 90 days, and involve only the interest portion of the loan payment for the duration of the term. In an auction for the sale of a former house, a demand must be submitted.
Sale Assurance: What is it?
A property’s sale assurance lets you purchase a new home preceding to the sale of your previous one. It’s the same as a standard real estate sale. The advantage of the product is that the bank will look at your financial credentials to serve as a guarantor, allowing you to securely take the next steps towards purchasing a new house.
When your current home is sold, your business lease agreement with the buyer that you acquired will replace your Sale Assurance contract.
Is there somewhere I can stay updated and informed on the latest mortgage news for Canada?
In addition to reading the MortgagesToGo blog, we recommend following the Financial Post’s coverage of both real estate and mortgage news.
