So you borrowed from your RRSP account to utilize the governments First Time Home Buyers Plan (HBP). Now you have to repay that borrowed sum to your RRSP account within the next 15 years. So how do you do that, and what happens if you miss one of those repayments?
For many, home ownership is a good step towards building a financial nest egg, but what happens when traditional lenders won’t approve you for a mortgage? Until recently, only about 4-5% percent of mortgages in Canada have been from private lenders, but as stricter rules have come into effect, we are seeing that number starting to rise. (more…)
Home ownership, to most, is an essential part of their life goals, and financial security! Sometimes, for various reasons, people are held back from this dream because they can’t qualify for a traditional mortgage. Instead of being trapped in a cycle of renting, choosing to enter a rent-to-own agreement is one solution that can help such individuals obtain the dream of home ownership. (more…)
Most mortgage borrowers don’t know what a collateral mortgage. When a lender registers your mortgage they can either register it as a “Collateral charge” or a “Conventional Mortgage Charge”. There are several lender’s who have done Collateral only mortgages for the last 8+ years so yo may very well be in a collateral mortgage without knowing it. So what does this mean to you?
1.something pledged as security for repayment of a loan, to be forfeited in the event of a default.
synonyms: security, surety, guarantee, guaranty, insurance, indemnity, indemnification; backing
“she put up her house as collateral for the loan”
The definition of collateral is self explanatory, however the way it works in mortgage lending is a more of a “Readvanceable Loan”. Let me explain the difference between Collateral and Conventional.
There are many type’s of mortgages available in the Canada’s Lending Market, which makes being a home buyer an overwhelming process. That is why using a Mortgage Agent is always advised as we will take the time to explain your options and help find you the right mortgage product for your current and future needs. At AKAL Mortgages Inc., we have made a list that will hopefully help you understand what is right for you. This list comprises some of the most common types of mortgages available in Halton, Kitchener, Waterloo, Cambridge, Guelph and surrounding area’s. (more…)
The Home Buyer’s Plan (HBP) is a government offered program that allows prospective home buyer’s to utilize their RRSP contributions to assist in the purchase of a home (to be used for the down payment and/or the closing costs of your home purchase).
To utilize this program you must meet the eligibility criteria. (more…)