I remember the first time I learned about how compound interest can work for you.  I was introduced by a friend to someone in the financial services industry and he explained a simple technique to easily calculate how compound interest can work for you – the Rule of 72.  I was so excited and started […]

With an increase in fraud, lending institutions are getting strict on documentation for mortgage approval. As part of the mortgage approval process your mortgage broker will ask for documents to show proof of your income, down payment and possibly other items such as proof of permanent residency and other identification.  Since most of that paperwork […]

Buying a second home or a vacation property requires special consideration when trying to access mortgage financing. First you need to understand the difference between the two types of properties. A second home is purchased for families wanting a home in or outside the city to avoid long commutes for work or as a home […]

One of the most common questions I get from first time home buyers is how to pay property taxes. Property taxes are payable the first week of July every year to each municipality. This may vary by city so always check the city website to confirm. For example taxes in Vancouver are payable twice each […]

Courtesy of  Canada Mortgage and Housing Corporation (CMHC) Canada Mortgage and Housing Corporation (CMHC) announced today two additional changes as it has completed the review of its homeowner and multi-unit mortgage loan insurance business. These are:   CMHC mortgage loan insurance for the financing of multi-unit condominium construction will be discontinued effective immediately. CMHC’s mortgage […]

One of the main requirements to secure mortgage financing is the down payment.  Here are some down payment do’s and don’ts. DO Source 5% for a down payment Consider your own savings or RRSP account Look at a 2.5 percent cash back Gifted from a family member   DO Show proof of your savings in […]

Effective May 30,2014 CMHC rule changes for second homes take effect.  CMHC introduced the second home product in 2005 to offer borrowers more financing options when purchasing an owner-occupied second home located anywhere in Canada.  The recent changes will limit the availability of homeowner mortgage loan insurance to only one property (1-4) units per borrower […]

If you are a home buyer with less than 5% in cash for a down payment you may want to consider some other options.  Is a cash back mortgage a good deal? There are some financial institutions offering cash back towards your down payment as incentive for a home buyers business.  At first glance the […]

With tax returns due for filing in April just a friendly reminder on the documents to keep at tax time.  Delays on approval for mortgage applications in most cases occur for the same reason, lack of documents for mortgage approval. For those who are paid hourly or with fluctuating hours each pay period or on […]

Following the annual review of its insurance products and capital requirements, CMHC will increase mortgage loan insurance premiums for homeowner and 1 – 4 unit rental properties effective May 1, 2014. The increase applies to mortgage loan insurance premiums for owner occupied, self-employed and 1-to-4 unit rental properties, including low-ratio refinance premiums. This does not […]