Investing or paying off a mortgage faster is one of the biggest questions many people want the answer to. It's a question most people struggle with on their quest for financial freedom. The truth is the answer to this question depends on different factors. Each situation is different, and you must understand your situation before you make a decision. If you'd like more information on whether you should invest your money or whether you should pay off your mortgage faster then you'll find this information valuable. In this post, we’ll take a look at why it might be better to pay off your mortgage first in some situations, how to do it and why it might sometimes be a better option to invest your money first.
Should You Pay Off Your Mortgage Faster?
For many people, the dream is to get out of debt and start...
Edmonton home buyers who are waiting for the market the market to bottom out before they buy a home will have to wait a little longer. Edmonton-area home prices rose slightly in March compared to the same month last year despite Alberta’s economic downturn, Realtors Association of Edmonton figures show Sale prices have dropped during the economic downturn which means Sellers have to price their home aggressively and accordingly.
Right now every community has a large number of homes to choose from, so if you’re in the market for a home or condo as a Buyer you definitely have the upper hand. If you have any questions in regards to the Edmonton and Area real estate market feel free to let us know, email@example.com
Mortgages are not a subject we learn about in high school, although I wish they were.
Credit, interest rates and qualifying for a mortgage are all things that will greatly affect your lifestyle going forward. Some hear about them through friends, family or the Internet.
My concern with this is the mortgage market is a changing and evolving model and it can be a challenge to ensure you’re getting accurate information.
We have mortgage specialist that have been working in the mortgage industry for over 30 years and are still learning new things every day. That being said, there a few mortgage “myths” I hear regularly that I want to take to time to clear up, as I think the more you know about the biggest debt of your life, the better!
You can get a mortgage even if you have a low credit score: Your credit score is only a small piece of the mortgage approval puzzle. In addition to income, down payment, assets and property details, a potential...
Residential inventory in Edmonton & surrounding areas saw another increase in February, surpassing 6,000 listings on the market, ending the month with 6,681 properties for sale on the MLS System. If you are in the market or thinking of purchasing a home this presents a great opportunity for you to buy.
Despite this inventory growth, prices have moderated only slightly compared to last year, so home owners and sellers can maintain some confidence that housing prices are remaining stable.
Total inventory in Edmonton and surrounding Areas still remained quite high. As sales continued to decreased. This provides an excellent opportunity for buyers to jump into the market while interest rates still remain low. The increase in the average days on market just appears to reflect that buyers are taking time to consider their options before purchasing a new home.
2015 was a steady year for real estate in Edmonton. Edmonton and the surrounding areas experienced a decline in sales due to economic uncertainty, but we saw a slight increase in price that demonstrated that the market remained relatively stable. This began to cool in the fall months as inventory remained higher than normal.
We continued to see home buyers take advantage of low mortgage rates. An influx of listings at the beginning of the year, meant that buyers had a larger selection of homes and were able to take more time selecting properties than in previous years.
In the city of Edmonton, the city staff discovered cost savings in a number of areas such as a bus scheduling program that will save the city 27 million dollars. These savings will be derived from a proposed tax increase of 4.9% for each of the next preceding years. For the average single family home with an assessed value of $401,000, taxes will increase as follows:
- 2016 - $109
- 2017 - $114
- 2018 - $120
According to Edmonton’s CFO, Todd Burge, “This is a fiscally responsible budget.” Increases in taxes in nothing new. For many years, citizens within the community have dealt with tax increases to pay for various city operations including, but not limited to, neighborhood revitalization, transit, and law enforcement.
While the council members see these dedicated tax increases as a way to find a balance of sorts between giving Edmontonians what they desire and keeping taxes low, the citizens see it as just political fluff.
Although Edmonton is currently in a Buyer’s Market, prices are headed downward. There are many factors for this; the time of year, inventory, oil and the biggest of all the Alberta economy. If you are looking a deal now may be the time to buy…
Right you could say that the Edmonton Real Estate Market is on somewhat of a “Slippery Slope”. Even though prices rose by roughly 1% - 2% mainly due to the luxury market, sales are still down compared to last year, but the overall inventory has increased quite a bit compared to October 2014…
Alberta Private Mortgage Can Help You Buy A House Even With Poor Credit
Banks generally require a credit score of 680 or above, in order to put a mortgage in place. This, of course, bars many from the mortgage from a bank or traditional lender. Although it is only one of the requirements for obtaining a mortgage, the does play a large factor when attempting to get a traditional mortgage.
It isn’t just poor credit that will keep an otherwise worthy buyer from purchasing a home. Many people such as contract workers or self-employed, for whatever reasons, do not disclose all their income or have not been in a contract or self-employed long enough (typically able to show 2 years of steady contract or self- employed earnings) to qualify for the traditional mortgage....
RBC was first out of the gate, so to speak. This past weekend, this major Canadian bank shaved an average of 10 basis points off of various fixed-rate mortgages. The five-year closed rate went down to 3.69 percent. No celebration, no fanfare. The rate just quietly dropped from its previous 3.89 percent. It wasn’t long before more of Canada’s major banks followed suit.
At last count three banks joined the discounting mortgage rates parade. Scotiabank lowered its five-year fixed rate to 3.49 percent this past Tuesday. Previously it was at 3.59 percent. Not to be outdone Bank of Montreal, or BMO, lowered its five-year fixed rate by 20 basis points, from 3.89 percent to 3.69 percent. TD Canada Trust lowered its five-year fixed to 3.69 percent, a 10 basis point reduction. Other mortgage loan terms and packages also saw reductions at the latter two banks. Then there is True North Mortgage, a brokerage that is offering a mortgage rate of 3.19 percent, currently the lowest in the...
Verification of Income:
Salaried or Hourly Wage Employees
Letter of Employment on company letterhead with name and contact information for party authorized to verify the information; must state minimum guaranteed income/hours, rate, tenure and position
Most recent pay stub: showing year-to-date earnings if possible
Most recent T4 or ROE*
Most recent 2 years’ Notice of Assessment
*These items may be requested if you are not guaranteed hours
Self – Employed**
Most recent 2 years’ Notice of Assessment
Most recent 2 years’ T1 General with Statement of Business Activities
Articles of Incorporation with list of directors or shareholders
Corporate Tax Return/T2 General
**Any two or more items in this...
Getting a mortgage these days is tough enough, trying to achieve the same lofty goal if you’re self-employed is even worse. Granted, when the economy was in the darkest depths of the financial downturn, self-employed parties needed an extra large dose of luck. Even then the chances were almost nil.
Fast forward a few years and you have a collection of successful folks who decided to go it alone once they lost their jobs during the recession. It was one solution to an endless parade of closed doors and rejections. Now some of these entrepreneurial business people have reached a point where they want to upgrade their homes to better accommodate their office space. Or, they may even consider a stand alone office.
Either way, the majority of these buyers will need a mortgage. Lending companies are starting to take a second look at these individuals and seem to be receptive to self-employed mortgages, with reservations. Essentially, the more you do your homework before you step foot in a...
The firm of Harris Decima recently conducted a survey across Canada regarding mortgages. In it they found that for the third straight year, Canadians tend to favour fixed rate mortgages over the variable. Another find, on the issue of the mortgage rates themselves, was that the more Canadians are of the belief that the low mortgage rates of today will be around for at least the next year.
On the fixed versus variable mortgage issue, 45 percent of those surveyed would select a fixed mortgage. Of those in the 25 to 34 year old demographic, 54 percent would make a similar choice. This indicates that most first home buyers would lean this direction. Some 26 percent of those surveyed would choose a variable mortgage, and 25 percent were in the uncertain column. That 25 percent is a marked increase over the 16 percent that were in the undecided column in the 2012 survey.
Colette Delaney, CIBC Executive Vice President of Mortgage, Lending, Insurance and Deposit Products, responded...
The Bank of Canada concedes that the nation’s economic picture is currently a bit weaker than expected, that same entity did predict a reversal in the near future. Growth on the economic front in Canada did not quite live up to the predictions by the Bank or a considerable number of financial analysts. At the same time the housing market and consumer debt situation seem to be stabilizing. In the United States and across Europe, there are still concerns about debt and the markets, but things are improving.
All of this adds up to the Bank of Canada deciding that interest rates should remain where they are, and stay there for the foreseeable future.
In a rare move, the announcement that the Bank of Canada was not raising the interest rate was coordinated with the release of their Monetary Policy Report. This quarterly publication outlines all the factors, domestic and global, that affect Canada’s economy.
The interest rate will remain at one percent, where it has been...
Edmonton is considering a zoning bill intending to make use of unused spaces in some of the city’s more mature neighbourhoods. A number of community leagues are not pleased at the idea of putting up infill housing and it is possible that bill will have to be totally redone.
This coming Monday the bill will be brought to the executive committee. The idea is to let homeowners subdivide lots that are 50-feet or 15 metres wide, increasing the number of duplexes and semi-detached dwellings that could be added to areas that are currently zoned for single family homes. Also on the bill are new rules about adding front garages that are so often found in suburban settings.
This past Thursday 28 community organizations got a jump on those proceedings. They sent a joint letter, requesting council to do the entire bill over after consulting the communities involved. In short, they gave the entire idea a resounding “no thanks.”
Rob McDonald, who was the Strathcona Community League’s...
Those in the know now expect that Canada’s real estate market will not endure the predicted bubble, but rather will weather a softer landing. The market is still seeing a bit of a slowdown, largely due to the change in mortgage lending rules set down this past July. But according to RBC, Royal Bank of Canada and other leading bankers a serious downturn such as that seen in the United States in 2008 is not likely.
That 2008 crash affected not only the United States’ economy but contributed to the global economic situation. Caused by an increase in mortgage rates that affected sub-prime mortgages and the resulting defaults, it was an economic disaster with effects still being felt in some places.
Canada does have a few sub-prime mortgages, but not nearly as many as in the United States. In addition, Canada’s real estate prices have seen a steady increase, with a few exceptions, one being the first few months of the 2008-2009 recession. Some of the less affluent areas of Canada also saw...
It would seem logical that putting down a large down payment on a property would be a smart move. As it turns out, a smaller down payment may actually save you money in the long run. Because of government mortgage default rules on insurance, it is not as much of a risk for lending institutions to front a loan to someone with a five percent down as it is to a borrower with a heftier 20 percent down payment.
It turns out that 20 percent is the magic number. Borrowers in Canada not putting down at least that amount are required to purchase default insurance on their mortgage if they are dealing with a traditional bank that is federally regulated. The cost for this insurance can run as much as 2.75 percent of the amount of money borrowed on a typical 25-year amortized loan. The loan is guaranteed by the Canada Mortgage and Housing Corporation, a Crown corporation. Another words, the federal government is backing that loan.
Secondary lenders, notes Canadian Mortgage Trends’ Rob McLister, are offering lending rates...
Do you have a mortgage? Then there’s likelihood you have mortgage insurance. This type of insurance is provided by the lender and not the government (CMHC insurance). The purpose of lender mortgage insurance is that if you become utterly ill or pass away before paying off the mortgage, the coverage will kick in and pay it off for you. It is intended to offer the consumer assurance that your family will not have the financial burden of a mortgage when you are deceased or gravely ill.
There’s a huge grey area when it comes to this. In this video (provided by CBC Marketplace), two families who acquired the coverage and thought they were protected, later realized that their claims had been turned down when loved ones became sick or died. In each case, the insurer claims that each party falsely filled out the required forms.
It turns out a regular visit to the doctor could be reason to deny your claim, if you don't mention it. Have you had a nurse or doctor put on a cuff to inflate on your bicep? That counts as being...
Have you found your dream home but were denied a mortgage? A problem with your application doesn’t necessarily mean that you’ll be stuck paying rent for the rest of your life. There are ways of working around issues like debt; credit ratings and low income so don’t despair.
Appeal the Decision - First, find out what the issue was and rectify it. After it has been addressed resubmit your application. A little restructuring can go a long way.
Find a Guarantor - If you were denied for a second time it might be a good idea to find a guarantor. It can be a great help but the deal is only as good as the guarantor’s credit. In fairness don’t resort to this unless you have to because if you default on the loan it’s then the guarantor’s...