Mortgage Articles
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Neo Financial Mortgages
Neo Financial is a Canadian technology company that has built a modern financial services platform around the idea that Canadians have been underserved by traditional finance for a long time.
Understanding Variable Mortgages
Choosing between a fixed and variable mortgage can feel a bit like deciding whether to pack an umbrella when the sky looks perfectly blue. You may save money by travelling light, or you may get caught in a downpour. The truth is that neither mortgage is automatically...
Understanding Fixed Mortgages
Understanding Fixed Mortgages: A fixed mortgage can feel like putting a fence around one of your household’s biggest expenses: for the length of your term, the interest rate—and usually the required principal-and-interest payment—stays put.
Canada’s Non-Federally Regulated Mortgage Providers
Mortgage providers in Canada are either federally or provincially regulated. Canada's chartered banks are federally regulated while many other lenders (see below) are not. Getting a mortgage from a non-federally regulated mortgage provider in Canada has both...
Ontario Land Transfer Tax Rebate Explained
Imagine you and your partner are excited to buy your first home in Ontario. You spend your weekends looking at homes, dreaming of your future, and planning your perfect space. But then, you start to worry about the extra costs, like the land transfer tax. That's when...
Struggling Under the Stress Test
Discover how the mortgage stress test in Canada impacts the ability of Canadians to afford homes and the actionable steps you can take to address this requirement.
Balancing Financial and Lifestyle Goals
In the realm of personal finance and lifestyle design, real estate often serves as a cornerstone. It represents not only a significant financial investment but also a profound lifestyle choice. As a former realtor, financial advisor, and mortgage agent, I've observed...
Condition of Home Inspection
When purchasing a property, the condition of home inspection gives the buyer the right to hire a professional home inspector to assess the property's condition. If significant issues are uncovered, the buyer can renegotiate the price, request repairs, or cancel the...
Regulating the Canadian Mortgage Industry
The structure of the regulatory framework for the mortgage industry in Canada is intricate and multi-layered, involving federal, provincial, and municipal entities along with key market participants such as the Bank of Canada and the Canada Mortgage and Housing...
Home Appraisal vs Home Inspection
Discover the difference between a home inspection and a home appraisal and how those differences impact your purchase and finance decisions.
Condition of Appraisal
In real estate transactions, an appraisal condition is a clause in the Agreement of Purchase and Sale that makes the buyer's obligation to complete the purchase contingent upon the property's appraised value meeting or exceeding the agreed-upon purchase price. This...
Variable Rate Mortgages: Not All Calculated the Same
Canadians are changing their preferences for mortgages. With a recent decrease in interest rates and speculation that more could be coming, brokers have been advising their clients to return to variable-rate mortgages from the 5-year fixed mortgages that have been the...
40 Year Canadian Mortgages: What You Need to Know
Discover the implications of 40-year mortgages in the Canadian real estate market. Explore the impact on homeowners, developers, and government policies. Find out the pros and cons of extended mortgage terms and seek professional advice before making a decision. Stay informed about interest rate changes and government initiatives for affordable housing.
Condition of Sale of Buyer’s Property
Navigating the real estate market can be complex, especially when conditions like "sale of current property" clauses—commonly referred to as Sale of Buyer’s Property (SBP) conditions—come into play. With the cooling real estate market, these conditions have made a...
Mortgages On Rural Properties
Mortgage lenders in Canada are often hesitant to finance properties in rural areas or properties with active farms for several reasons: Marketability and Resale Value Loan-To-Value Property Appraisal Challenges Zoning and Use Restrictions Maintenance and Condition...
More Than Rate: Pre-Payment Privileges
Learn about the different kinds of prepayment privileges and discover why prepayment privileges are more important than interest rate when it comes to lowering the cost of your mortgage.
Divorce: 4 Mortgage Paths to Moving Forward
Divorce and your mortgage: 4 paths to moving forward. Discover the option that works for you.
Understanding Condo Reserve Funds
Discover what a condo reserve fund is, the signs it may be insufficient, and how to discover and avoid condos with insufficient reserve funds.
How the Trigger Point Impacts Canadians
With interest rate hikes, homeowners are facing the potential detonation of a financial bomb tied to their mortgages, the trigger rate. Let's get into how a trigger point on a fixed-payment, variable mortgage can have such a strong impact on Canadians: Impact of...
Condominium Conditions
When a person in Canada wishes to purchase a condominium, they put in their offer to purchase a condition to enable themselves, their lawyer, their realtor, and their mortgage agent and lender the opportunity to review detailed information about the financial and...
(RRSP) Home Buyers’ Plan: Saving for Your Home
RRSP Home Buyers Plan or Home Buyer Plan. Unlock your RRSP savings to buy your first home with the Home Buyers’ Plan. Learn how to make a tax-free withdrawal for your down payment.
Real Estate Conditions
In Canadian real estate transactions, conditions are specific clauses included in a purchase agreement that must be satisfied for the deal to proceed. These conditions are designed to protect the buyer (or sometimes the seller) and ensure that certain requirements or...
Condition of Financing
When purchasing a property, buyers either pay for the entire property with their existing funds or they need to seek out financing by getting a mortgage. Previous to looking for a home, buyers need to have a relationship with a mortgage agent to create a financial...
Understanding HELOCS
A Home Equity Line of Credit (HELOC) is not a traditional mortgage but a type of revolving credit secured against the equity in your home. Canadians are very creative in their use of HELOCs using them for everything from investing, to debt consolidation, to using...
Understanding Amortization
When entering the world of homeownership, understanding the dynamics of your mortgage is crucial for financial planning. Among the key concepts in mortgage management is amortization. This article aims to demystify mortgage amortization, differentiate it from the...
12 Reasons for Breaking Your Mortgage
Breaking Your Mortgage: Explore the implications and potential penalties for terminating your mortgage before maturity, and learn about options like portability and refinancing.
Understanding Cash Back Mortgages
Cash Back Mortgages. Home buying is a naturally expensive thing to be doing. You not only have to pay for the house, but you have substantial closing costs as well. You might want to make your new house ‘home ready’ by getting a few new pieces of furniture and don’t forget new window coverings like blinds, drapes, and curtains (never cheap). Wouldn’t it be nice to get a few thousand dollars back when you fund your mortgage to cover these costs?
Mortgage Term: Non-Recourse Loan
Discover what a non-recourse loan is and what that means for mortgages in Canada. Is your mortgage a non-recourse loan, and what does that mean for you?
Insured, Insurable, Uninsurable Mortgages Explained
Understand the differences between Insured, Insurable, and Uninsurable Mortgages for making informed decisions on your home purchase in Canada.
Critical Guide to Emergency Funds
An emergency fund is an essential financial safety net designed to cover unexpected expenses or financial disruptions without the need to incur debt. It acts as a buffer that can help you maintain your financial stability during unforeseen circumstances such as job...
Alternative vs Prime Lenders
Alternative vs Prime Lenders
Mortgage Assumption in Divorce
Mortgage Assumption in Divorce: When a marriage ends but the home still makes sense financially and emotionally, the question becomes: how do you keep the house without blowing up the mortgage?
Does the Stress Test Apply to Private Mortgages?
The mortgage stress test, as mandated by the Office of the Superintendent of Financial Institutions (OSFI), primarily applies to federally regulated financial institutions, such as banks. However, private mortgage lenders, which are not federally regulated, are not...
Are You Prepared? Homeowners Brace for Mortgage Renewals
Discover the challenges and potential impacts of mortgage renewals on Canadian homeowners and the banking industry. Prepare yourself for potential payment shocks and find out how banks are gearing up.
Finding the Right Realtor
Finding a realtor is not just about hiring a professional to help you buy a home; it's about choosing a partner for one of the most significant financial decisions of your life. I used to be a realtor with Royal LePage, then later Sutton Group. I was a consultant at...
Home Insurance Essentials
Home insurance is an essential safeguard for homeowners, providing financial protection against unexpected damage or loss due to a variety of risks. This article explores the critical aspects of home insurance, including its necessity for mortgage holders, coverage...
Divorce: Alternative or Private?
Divorce: Alternative or Private mortgages. Divorce can turn even the strongest household balance sheet upside down. One income disappears, support payments appear, debts get divided, and suddenly the mortgage that worked perfectly before no longer fits the lender’s rules.
Featured Publications
Articles
- Extended Amortizations and Hypothetical Calculations
Office of the Superintendent of Financial Institutions (OSFI) - Minimum Qualifying Rate for Uninsured Mortgages
Office of the Superintendent of Financial Institutions (OSFI) - Residential Mortgage Underwriting Practices and Procedures
Office of the Superintendent of Financial Institutions (OSFI) - Guideline on Existing Consumer Mortgage Loans in Exceptional Circumstances Financial Consumer Agency of Canada
Book: “The Program”
- Part 1 – Building Your Down Payment
- Part 2 – Mortgage Payoff Strategies
- Part 3 – Building Wealth Through Real Estate