Mortgagenomics Canada

Rental Property Mortgages - how to qualify for them. Qualifying for a mortgage when purchasing or refinancing a rental property can get really confusing.  Here are the key qualification criteria when qualifying for a Rental Property Mortgage: the minimum down payment to qualify for a rental property mortgage ranges from 20% to 35% (refinances are limited to 65% of the appraised value) rental...

The Mortgage Cash Back Ladder: (for a $500,000 mortgage) 1.0% cash back ($5,000) = 2.89% 5 year Fixed Rate, or 1.45% Variable Rate  1.5% cash back ($7,500) = 3.04% 5 year Fixed Rate, or 1.50% Variable Rate 2.0% cash back ($10,000) = 3.19% 5 year Fixed Rate, or 1.60% Variable Rate 3.0% cash back ($15,000) = 3.49% 5 year Fixed Rate, or 1.85% Variable Rate 5.0% cash back ($25,000) = 3....

Click Here to be re-directed to the podcast blog for more detailed transcripts. Here is a summary outline of the key qualification criteria for Alternative Lending mortgages in Canada (formerly known as subprime mortgages): minimum down payment of 20% is required debt servicing ratios are as much as 35% higher than triple-A lenders (this means applicants can qualify for more mortgage) income quali...

With virtually every economic indicator calling for rate hikes, Canadian mortgage holders are left wondering how to prepare and react to the already-in-progress wave of interest rate volatility. Regardless of the degree and timing of the pending increases, concerned mortgage holders in Canada have the opportunity to control their own destiny and minimize (or even eliminate) potential ris...

Buying a home while selling your current one? The transition from selling one property to purchase another sounds simple, but there are a few critical events throughout the timeline that you need to be aware of. Here are 6 key points to know when scaling up from one property to another: CLICK HERE to read the entire transcript (1) perhaps the biggest dilemma: SELL first, then BUY, or BUY firs...

Can BC Provincial Nominees qualify for a mortgage? Yes! A BC Provincial Nominee is eligible to qualify for a mortgage in Canada. Here are the key mortgage qualification criteria to be aware of when qualifying for a mortgage as a BC Provincial Nominee: you can purchase a property with as little as 5% down payment, but only for purchases under $1M for purchases that are $1M or greater the...

How to get the lowest possible mortgage payment? Sometimes life presents you with some expensive curve balls and before you know it your monthly budget creeps up and you're suddenly in a pinch. This happens to Canadians more than you can think and oftentimes the mortgage payment is looked upon as the primary means to bring you back to that financial comfort zone. Here are 4 ways to get the lo...

Here is a breakdown of the the two types of variable rate mortgages: Capped Variable Rate Mortgage: the interest rate fluctuates when a lenders prime rate changes generally, your payment amount stays fixed for a determined period of time or up to a certain threshold of rate increases (as outlined by your specific lenders loan terms and conditions), however, the interest rate will fluctuate with an...

8 First Time Homebuyer Tips 1) Be aware of the minimum down payment requirements 5% up to $500,000, then 10% on the balance thereafter up to $999,999 20% for $1M purchases up to $2.5M, then 40% on the balance thereafter 2) Be aware of closing costs Closing costs are ancillary expenses throughout the process of completing your real estate transaction. In addition to your down payment...

Intro (pre-amble): up to 13:10 mark of podcast (Canada's post election promises; tax the flippers, ban the foreigners, eliminate blind bidding, and increase the minimum down payment cut-off to purchase a home | is China's Evergrande shrapnel Canada bound?) Ok, so this isn’t necessarily the 100-step procedure on how to get a mortgage if you are new to Canada, but these are a summary of the most com...

Pre-episode Talk (up to 11 minute mark): Modern Monetary Theory, Canada's inflationary path, and my thoughts on how to position yourself on the right side of a volatile economic environment. Episode Notes: Down Payment Sliding Scales: Over the years down payment guidelines have inserted a component within the qualification criteria known as "sliding scale". Oftentimes it could catch a buyer o...

With real estate prices soaring across the country many applicants are seeking assistance when it comes to qualifying for a mortgage.  More commonly, the assistance comes in the form of gifted down payments from the Bank of Mom & Dad, but coming in a close second these days is the addition of applicants to help combat the rigid income qualification criteria.  You have likely heard of...

If you're about to secure a mortgage, here's something you might want to consider regardless of whether it's a purchase, refinance or renewal.  Make the mortgage readvanceable . What does readvanceable mean? Firstly, a readvanceable mortgage starts out as a typical mortgage where a specific portion of your payment goes towards the interest charge and the rest gets directly applied towards the...

Why are personal income tax documents required when qualifying for a mortgage? In most cases, personal income tax documents are required particularly when qualifying self employed applicants. But over the past few years, the Canadian mortgage underwriting standards have increasingly expanded upon its qualification criteria. As a result, the request for personal income tax documents from...

If the banks say no, what is your Plan B? (and yes, there is also a Plan C) For most Canadians the end game to qualifying for a mortgage is landing with one of Canada's Prime lenders (also known as the Big 5 or 6). And along with that comes the satisfaction of defeating/fulfilling the sometimes (or more like, everytime) extraneous qualification guidelines and eligibility criteria. But at...

With over 300,000 new residents arriving to Canada (and about 400,000 expected on an annual basis for the next 2-4 years), Canada's banks have been continuously altering and modifying their lending guidelines to accommodate for immigrant-friendly mortgage qualification programs. Today, I want to talk about mortgage qualification for temporary residents, particularly for work pe...

A mortgage refinance is often a momentous and rejuvenating experience. For most homeowners it's an opportunity to reset and forge a new pathway to a more promising outcome (i.e. paying off high interest debt with low interest mortgage funds), and in the process of doing so, perhaps establishing or creating a more pronounced awareness of spending and more importantly, recognizing the consequen...

I often get asked what the minimum down payment requirement is to purchase another home. And by another , I mean residing in your current home as you are and purchasing another home that you or any one of your family members will frequent at one point throughout the year...like a home away from home. For example, it may be a vacation property a couple of hours from where you currently li...

11th hour mortgage qualification collapses...how to avoid them There is no better feeling than closing a real estate transaction, especially if the journey to get there was rocky and filled with intense drama all the way to the bitter end. And if you’ve ever purchased a property before, you’ll know what I’m talking about...Regardless of the severity of these unexpected stressful deals, in most cas...

Is there such a thing as tax deductible mortgages? If you are a resident of the United States, the answer to this question is - yes.  For decades Americans have been able to apply the interest portion of their mortgage as a tax deduction against their personal income.  Regardless of whether it was an investment property or a principal residence - the interest was an eligible tax deductio...

A couple of weeks ago I talked about intergenerational wealth transfer and how reverse mortgages have propelled into the market place as a vehicle to access valuable equity with absolutely no monthly payment obligation.  The homeowner (who must be at least 55 years of age) can apply to access up to 55% of their home equity and use the proceeds for anything they desire.     Anot...

Today I'm gonna talk about one of my favourite qualification guidelines - the High Net Worth mortgage .  This is truly one of those money-talks type of products...money talks as in, the more liquid assets you hold, the more mortgage you can qualify for.   This mortgage really comes in handy for those applicants that are short on qualifying income, but instead are flush with liquid assets...

Wouldn't it be great if there was a mortgage that didn't require an income to qualify for it? And better yet, absolutely no obligation to make a single payment on the principal debt throughout the life of the mortgage?   Well there is! It's called a Reverse Mortgage.   Whether you're a fan of them or not, these mortgages are becoming increasingly popular every year an...

When it comes to income verification for a mortgage a recent paystub and an employment letter will typically do the trick, even if you're a new hire and just have one full pay cycle under your belt.  However, things could get a little dicey if you are currently in a period of probation with your new employer.    The most common workaround for an applicant who is in the midst of a pr...

On Thursday April 8 (yesterday), The Office of the Superintendent of Financial Institutions, OSFI (the Canadian Bank watchdog) announced that they are  proposing changes  to the current stress test rule. So basically, consider this the last-call bell to qualify under the current stress test until  June 1, 2021 . It’s not 100% official as of yet, but the chances of OSFI not...