Dec 30, 2009...Canada mortgage rates may rise in 2010...

You may ask why the Canadian government would want to raise interest rates in 2010, in the face of a still somewhat lagging economy.  With interest rates rates, the cost of borrowing money has never been easier.  But the concern is that because properties are easy to buy, some consumers may get in over their heads and find that they may end up defaulting on their mortgages when interest rates rise.  Property prices may remain low and consumers may find themselves owing more than their property is worth.  And of course, the government, which insures many loan through CMHC, would have to cover the lenders for borrowers who default.

Dec 21, 2009...there's money in your walls...

With Christmas time rolling around, we always want to treat our loved ones with presents and gifts.  But in that exuberance, we sometimes find that we have overspent, and in January, the bills come rolling in (and the shock).  If you feel that you don't have the cash in hand to make the payments, you may wish to consider a Canada home equity loan to get you over the hump.  Use the equity in your house to pay the bills.  It can either be a 1st mortgage or a second mortgage.  Let us know how we can help you before you find yourself behind the eight ball, unable to pay bills, and then ultimately watch your credit score drop.

Dec 14, 2009...More equity helps with a Canada loan...

Here's a few more thoughts to assist you with your Canada debt consolidation mortgage.  If you have poor credit, a private lender may only be able to give you 65-75% of your property value.  But if you own other real estate, such as acreage, raw land, a rental property, or cottage, you should make sure the lender knows.  He can use the equity that you have in both properties to secure the mortgage against.  It is called an interalia mortgage, where one mortgage covers more than one property.

Dec 6, 2009...Canadian lending rules with a consumer proposal...

Here’s a few helpful tips.  It is nearly impossible to get a Canadian mortgage while you are in a consumer proposal.  All conventional lenders in Canada will need you to be out of your consumer proposal for at least 1-2 years and re-establish new “good” credit for at least a year before they will consider you.  Nowadays, lenders view a proposal like a bankruptcy.  So, if this is the route that you wish to go, you should use your best efforts to pay out the proposal, and then establish good credit with some credit cards or other credit that is reported to the Equifax credit bureau.

With Canadian private lenders, they will want you to out of your proposal as well, but as long as you have the necessary downpayment, they will consider you immediately.  Usually a private lender will want at least a 25% downpayment, plus there will be lender and broker fees (so you may need about 30% down).

Nov 30, 2009...Canadian properties that can be mortgaged..

When you are applying for a mortgage for your property, one of the aspects that you should be aware of is "what type of property do lenders accept".  Our private lenders accept most types, but here is a quick list of property types that many conventional lenders do not accept.  Some don't accept multiple dwellings on a single property, commercial zoning, heritage homes, houses with poor interior and exterior conditions, hobby farms or farms, cabins, properties without year round access, properties in remote areas, age restricted buildings, native leased land, co-ops or fractional interests, and private sales.  But as mentioned, we will look at many of these properties.

Nov 22, 2009...Canadian mortgage rates dropping..

The good news is that Canada mortgage rates have dropped a little in the last week.  Over the last month or so, the Ontario mortgage rate has been at about 4.34% for a 5 year mortgage.  During the last week, the 5 year rate has dropped to 4.09%.  The rates are still not as low as they were about 3 months ago (about 3.9%), but they are still very low.  It's a very good time to purchase a house, or do an Alberta mortgage refinance of your current home.  The Canadian Prime rate continues to stay at 2.25%.

Nov 5, 2009...Mortgages and the Power of Attorney

It may come as a surprise, but a number of lenders get concerned, and may not lend, when a mortgage involves the Power of Attorney.  The Power of Attorney is when an individual is given the legal right to represent another individual.  This allows the individual to sign legal documents, do banking, etc.  When applying for a Canadian mortgage, some lenders are hesitant with POA because there has been a lot of fraud involved.  Fraudsters have falsified documents allowing them to misrepresent others, and thus illegally borrow money.

Nov 3, 2009...Is it a good time for a Calgary mortgage

Clients ask me if the timing is right to take out a Alberta equity loan.  And the answer is yes.  Rates are at an all time low.  The prime rate is at 2.25%, and if your credit score is good enough, you can get the mortgage at Prime.  Even if your credit is not perfect, the lender may offer the rate at Prime plus 25 points or slightly more.  But even if it is Prime plus 100 points, you are still paying only 3.25%.  When I took out my first mortgage in 1984, my rate was 15%.  So 3% looks very enticing to me.  Contact me to see if I can help you get these low rates.

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