Mortgage Articles
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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.
Sending Money Internationally
Learn about the differences in international payment systems, what is SWIFT, and how to send money internationally to a Canadian account
Canada’s Mortgage Stress Test
The implementation of the mortgage stress test in Canada has been a significant regulatory measure with far-reaching implications for the mortgage industry, housing market, social dynamics, financial stability, and the broader Canadian economy. This article provides...
Insider’s Look into Mortgage Terms
Navigating the world of mortgages can be daunting for both new and seasoned homeowners. A fundamental aspect of any mortgage is the "mortgage term," which dictates several key financial decisions and outcomes over the course of homeownership. My goal in this article...
Who Are Canada’s Mortgage Finance Corporations?
Mortgage Finance Companies (MFCs) in Canada are financial institutions that specialize in providing mortgage lending and related services. MFCs offer an alternative to traditional bank mortgages (prime lenders) and cater to a variety of borrowers, including those who...
Spousal Buyout Mortgage
Spousal Buyout Mortgage: You want to keep the house, the monthly payment is manageable, but the your refinance limit says no…
Understanding Internal Rate of Return (IRR)
Understanding Internal Rate of Return (IRR): In real estate, it’s easy to get caught up in surface-level numbers—cash flow, purchase price, appreciation. But if you really want to operate like a professional investor, and guide your clients like one, you need a metric that answers a deeper question
How to Calculate Housing Cost
To ensure you do not spend more than 30% of your income on housing costs, it's important to understand how to calculate your housing expenses. In Canada, housing costs typically include: Mortgage Payments: The monthly amount paid towards the mortgage principal,...
The Impact of Mortgage Rates on Residential Property Values
The potential consequences of escalating mortgage rates on the valuation of residential properties are leading to a projected decline of 5% in home prices. By analyzing the impact of rising interest rates on the housing market, my research seeks to shed light on the...
Using Layers in Commercial Financing
Using layers in commercial financing. Each layer has its purpose so you don’t have to play by any one lender’s rules.
Understanding Cash Damming
Cash damming is one of the most effective—and least understood—ways to take advantage of this gap. It’s not about taking on more risk, spending more money, or changing your lifestyle.
Calculating Debt Service Ratios (GDS/TDS)
Discover how to calculate Debt Service Ration for mortgage affordability in Canada.
Understanding Mortgage Costs: Principal, Interest, and Protection
When you take out a mortgage in Canada, you're entering into a long-term financial commitment that involves repaying both the principal amount borrowed and the interest charged by the lender. Understanding the nuances of how mortgage payments are structured, including...
The Mortgage Rate Mirage
Your interest rate is only one piece of the mortgage puzzle. In the real world, mortgages have layers. Once you start peeling those layers back, you begin to see the difference between a mortgage that merely looks competitive and one that actually is competitive.
Ontario’s Credit Lock/Freeze Law
Ontario Credit Lock/Freeze Law: Ontario has just added a powerful new consumer-protection tool to your financial toolbox: the ability to lock or freeze your credit file. Think of it like putting a digital deadbolt on your credit report. It will not stop every form of fraud, and it will not replace common sense, strong passwords, or careful monitoring, but it can make it much harder for someone to open new credit in your name.
Don’t Leave the Lawyer to the Last Minute
Don’t Leave the Lawyer to the Last Minute: Your lawyer protects your legal interests, handles the transfer of ownership, deals with title, coordinates funds, pays out old mortgages, registers new ones, and helps make sure your sale and purchase actually close properly.
Understanding Mortgage Loan to Value (LTV) Ratio
As a professional mortgage underwriter in Canada, I often emphasize the importance of the Loan to Value (LTV) ratio in the mortgage qualification process. The LTV ratio is a critical factor in determining the terms of the mortgage for which a borrower qualifies,...
Understanding Condominium Fees
When considering the purchase of a condominium in Canada, it is essential for potential buyers to understand condominium fees. These fees are a significant component of condo ownership, affecting both budgeting and financing. Here, we will explore the nature of these...
HELOCs and Hidden Land Tax
“Wait… We’re Paying Land Transfer Tax Again?” A lot of homeowners think adding a HELOC is just paperwork. You sign a few documents, the lawyer registers a new charge, and away you go. Easy peasy, right? Well… sometimes. But every now and then, a refinance or HELOC...
The Pre-Approval Process
Discuss the benefits and weakness or getting a mortgage pre-approval. Discover the steps of the pre-approval process and learn if a pre-approval is right for you.
When You Need Mortgage Default Insurance
Discover when and why you may need mortgage default insurance and why mortgage default insurance matters.
Guide to Mortgage Penalties
Understand mortgage penalties in Canada before breaking your mortgage term. Learn about IRD, fixed vs variable rate penalties, and ways to minimize costly fees
Get a Mortgage Agent with a Strong Online Presence
Finding a mortgage agent with a strong online presence is important especially in today’s digital world. A strong online presence is indicator of a mortgage agent’s credibility, expertise, and client-centered approach
Housing as Income Percentage
Financial planners generally advise spending no more than 28% to 30% of your gross monthly income on housing. This guideline is known as the "front-end ratio" and primarily covers housing expenses like mortgage payments, property taxes, homeowner's insurance, and...
Accessing Your Credit Score
In Canada, understanding and monitoring your credit score is crucial for managing your financial health. This score, a numerical representation of your creditworthiness, impacts various aspects of your financial life, from securing loans to negotiating better terms on...
Mortgages: You Better Shop Around
When shopping for a mortgage it is important to think like a bank. Don’t pay the loyalty penalty, get the advantage of having Allen Ehlert shop the market and get you your best mortgage
Property Tax Calculations
Understanding property taxes and their calculations in Canada is essential for homeowners, prospective buyers, and real estate professionals alike. Property taxes are a significant source of revenue for municipalities and directly impact local services and...
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