Negative amortization is a situation where your mortgage payment is not enough to cover the interest due. The interest then builds up and your total principal owing increases instead of shrinking. Negative amortization can occur when you have a fixed-payment variable-rate mortgage and prime rate rises. When considering a variable product you should always consider one that […]
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5 C’s Of Mortgage Lending
Collateral – The property itself that you are hoping to purchase. Capital – Where is your down payment coming from? At a minimum, you need 5% down for a “high ratio” insured mortgage or a “conventional” mortgage with 20% down. This money can come from your own resources or can be gifted from a family […]
DLC Buys Mortgage Architects
Canada’s mortgage behemoths have long been the likes of RBC, TD and Scotiabank. But as of today, they have stiffer competition: Dominion Lending Centres (DLC). After months of negotiation, DLC has won the bidding for Mortgage Architects (MA), one of Canada’s top national superbrokers with 1,287 mortgage agents and brokers. That now gives DLC’s three […]
Co-Signor or Guarantor For A Mortgage
If a buyer can’t obtain a mortgage due to poor credit, employment history, lack of down payment or income — most lenders will consider lending if there is someone to act as co-signor or guarantor for a mortgage. The two options provide different requirements. Co-signer or guarantor for a mortgage, which is best? People often […]
Your Mortgage Up For Renewal?
Mortgage renewal time is a very important time. I see too many people though treating it too lightly. Most financial institutions will not touch base with you until about 30-45 days from your renewal date which does not give you a ton of time to figure out what to do. Especially in our busy lives. […]