Did you know that reverse mortgages are the fastest growing mortgage product in the country?

For so many Canadians, their wealth is tied to the equity in their home.

The reverse mortgage allows those who are 55 or older to use this equity with no obligation for future payments required. You don’t even need income or credit to apply!

With today’s interest rate market being less than friendly, current and future homeowners are wondering if there is a way to find a lower interest rate like what we saw between 2020-2021.

For future home buyers, one option is they can consider finding a seller who has an ‘assumable’ mortgage that they can take-over.

Real estate investing can be a smart way to build wealth over the long term, and it can be especially clever during a recession if you are prepared.

While the value of real estate may fluctuate in the short term, it has historically increased over the long term, making it a safe and lucrative investment. In addition, there are several specific reasons why investing in real estate during a recession can be a good idea.

One reason to consider real estate investing during a recession is affordability.

When the demand for housing decreases or in our current situation when mortgage rates prevent buyers from qualifying for that a higher price, prices will also decrease. This can create opportunities for investors to buy low and hold for the long term while prices go back up.

Here is part 2 of our series on how alternative lending can be useful during times of high interest rates. Before you dive into the second part of our series, if you have not yet read part 1 click here to start from the beginning.

Quick and Easy Approvals

If you are competing on a property, your realtor may suggest putting in a quick possession date so the sellers can receive their sale proceeds in a matter of weeks, instead of the typical 1 – 4 months.

With interest rates being the highest they’ve been in over 10 years, along with the stress test reducing what buyers qualify for this has created a number of issues for buyers attempting to find an approval for their home purchase or homeowners to complete their refinancing.

For this reason, among many others alternative financing is becoming increasingly popular as people try to find creative ways to get the job done.

Alternative financing allows current and future homeowners access to bank programs otherwise unavailable through traditional forms of financing.

Simply put, these programs are very versatile and open the door of possibilities when you keep running into rejections from your traditional lender.

Assuming a Special Assessment is a Bad Thing

A special assessment also known as a special levy, is when the members of a strata vote to make major repairs or upgrades on the building. This leads to the strata imposing a levy on the unit owners for part of the costs of the repairs. 

1. Not Making the Mortgage Re-Advanceable

This tip stems from tip #3 from the first part of this series where we discuss putting your attention towards the type of financing that leaves room for cash flow and avoiding the common pitfall of thinking the lowest possible interest rate should be the primary focus of your financing.

With the real estate market on its way to a correction in market values for many parts of Canada, savvy investors who are prepared will have some great opportunities to purchase new assets to add to their portfolios. 

If you’re planning to purchase a vacation property, pay for children’s education, or require cash to cover a sudden expense, then pulling equity from your home through refinancing can be a good option.

When it’s mortgage renewal time, many people just simply sign that renewal letter they will get in the mail from their lender. While there’s nothing wrong with that approach, mortgage renewal is a fantastic time to find a better deal, save money and take advantage of mortgage features and products that may be better suited for you. 

There is no disguising that after 2 years of historically low interest rates due to the pandemic, rates are now on the rise in an attempt to reduce inflationary pressure.

Taking your first steps towards a mortgage and getting a foot on the property ladder can be a really exciting time. But it’s also important you’re armed with the right information before you start your journey to homeownership. However, splitting the fact from fiction isn’t all that easy, particularly when some of the mortgage myths out there have been doing the rounds for many years. To make sure you know fact from fiction, we have written down a few myths commonly heard amongst friends, family and co-workers.

‘How low can you go?’ has been the mantra for interest rates for years since the start of the pandemic. However, when there is a chance of a possible interest rate increase to the prime lending rate, it is common to wonder whether now is the time to convert your variable interest rate and lock into a fixed rate. However, before deciding to lock in, there are three options you should consider that may better address your concerns and allow you to keep the savings you’re receiving from the variable. As an expert in the field, I, Cody Rowe, want you to be able to make a sound decision by equipping yourself with expert information and knowledge. Read on to find out your options.

When someone chooses a five year fixed mortgage term for their home financing, more often than not it is for one simple reason – security. A fixed interest rate provides the comfortability of knowing that your interest rate, and therefore your regular payment, will not change for the life of the mortgage term typically 5 years. For this simple reason, this is the default choice for many homeowners when shopping for a mortgage rate. But what if I told you that if you broke that fixed rate early you would be looking at a drastic penalty that will equate to around 4.5% of your mortgage balance? This would maybe make you wonder if there was another option that provided a stronger protection against the changes of life.

Unless you have a couple hundred thousand dollars or more to spend, you can’t just plunk down cash and buy a home. Instead, you need to go through a process that takes you from getting loan approval to sitting down at the closing table. This can be overwhelming, but if you break the procedure down into steps and take your time, you can be a homeowner one day, living in your dream home! To help first-time buyers like you understand the many steps involved in purchasing your first home, Cody Rowe - Mortgage Broker has written down a Beginner’s Guide to buying a home.

Once you’ve decided to buy your first home, there’s a good chance that you’re planning to obtain a mortgage to finance the purchase. Acquiring a mortgage can seem intimidating and complicated to most first-time homebuyers, but it doesn’t have to be. When you prepare appropriately and have the right professionals to assist you, applying for a mortgage is pretty easy.

Applying for a mortgage is never simple, but it’s even trickier when you don’t know what to expect. There are different aspects that you need to consider before settling on a mortgage product. You need to consider the mortgage term, conditions, down payment, etc. But most importantly, you need to consider what kind of interest rate to choose for the term of your mortgage.

Original Article Source Credits:    Dominion Lending Centres , https://dominionlending.ca/

Article Written By:  Sherry Cooper

Original Article Posted on:  June 15, 2021

Link to Original Article:  https://dominionlending.ca/economic-insights/canadian-housing-continues-to-moderate-in-may

Original Article Source Credits:   Better Dwelling , https://betterdwelling.com/

Article Written By:  Daniel Wong

Original Article Posted on:  JULY 2, 2021

Link to Original Article:  https://betterdwelling.com/canadian-real-estate-brokers-see-a-big-cut-in-revenue-pushing-the-gdp-sector-lower/

Original Article Source Credits:   Financial Post , https://financialpost.com/

Article Written By:  Clayton Jarvis

Original Article Posted on:  Jul 02, 2021

Link to Original Article:  https://financialpost.com/moneywise/mortgage-debt-in-canada-is-soaring-thats-no-reason-to-panic