When you are approved for a mortgage, you will often sign a document that states that they can revoke your approval if your creditworthiness changes before the mortgage is funded. Most people don’t think anything of this, if they even notice it, but it is actually...
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Mortgages
Refinancing is math
Pure and simple. How much will you save on interest, vs. how much will you pay in penalties? Reading the fine print before you sign your mortgage in the first place will help immensely, because then you will know what sort of penalty to expect. But the bottom line is...
Reverse Mortgages
Because of Remembrance Day tomorrow, I'm posting about real estate today. You see these commercials once in a while: happy older couple who are able to stay in their home because of the magic of a reverse mortgage. But what is a reverse mortgage? Basically, it’s a...
Don’t waive a condition until you know for sure
I’ve had this situation happen a few times lately when I have acted for the seller: the buyer waived the financing condition, or didn’t put in a condition of financing at all, and found out shortly before closing that their financing was not actually approved. How...
Are you ready?
I’m stealing today’s post from Ask Ross, a blog about all things mortgages. Here are his top 5 signs that you are ready to buy a house: You have a reliable source of income. Home ownership requires paying regular bills, and being prepared for unexpected expenses. If...
Helping out your children
Most parents work hard to protect and help their children as they grow, and continue to do so when their children become adults. One aspect of helping is often assisting their children in buying a home, often through co-signing a mortgage. Acting as a co-signer or...
Bridging
Last week, I blogged about timing. This week, I wanted to touch on something related: bridge financing. From a legal standpoint, bridging makes your move go much more smoothly. If you have bridge financing in place, I can close your purchase before your sale is...
Co-signing
I see a lot of clients who are unable to get financing on their own, and so one or both of their parents will co-sign the loan. Before you decide to go ahead and do this for your child, however, be sure that you are fully prepared for the possible consequences. Even...
Some what-ifs
I read this interesting article earlier this week in the Globe and Mail. The basic premise is what might happen if the federal government decided to make purchasing a home more expensive by requiring much higher down payments - essentially, getting rid of the five per...
Cooling the market?
The Globe and Mail published this article a few weeks back about proposed new rules from the Office of the Superintendent of Financial Institutions regarding refinances and new mortgages. Essentially, the Office is proposing that banks be required to take a much...