Search found 13 matches

by dougboswell
29 Nov 2022 16:34
Forum: Stocks, Bonds, ETFs, Funds, REITS and More
Topic: Royal Bank (Symbol-RY)
Replies: 315
Views: 71894

Re: Royal Bank (Symbol-RY)

It will be interesting to see what happens on the HSBC mortgage side. Currently, HSBC offers low rates to consumers and some of the recent specials have been the lowest in Canada. Will RBC let this branch operate independently? If this division is absorbed along with low rates, the consumer loses big time.
by dougboswell
20 May 2022 11:22
Forum: Property: Owning, Renting, Managing, Investing and Mortgaging
Topic: I want to pay down the mortgage but...
Replies: 10
Views: 2615

Re: I want to pay down the mortgage but...

Equitable Bank is very safe to put your money into. It is the 9th largest domestic bank in Canada and manages assets over $43 billion.
Before you start doubling up your payment read your contract carefully. Some lenders allow doubling a payment but only once a year and usually on a regular payment date. If you have prepayments such as 10% or 15% per year, you can make additional lump sum payments this way to reduce your principle. This would be actaully a faster way to pay it down as opposed to doubling a payment once a year.
by dougboswell
30 Nov 2019 00:06
Forum: Property: Owning, Renting, Managing, Investing and Mortgaging
Topic: Reverse Mortgage Application Process?
Replies: 13
Views: 5602

Re: Reverse Mortgage Application Process?

I cannot answer your question but after learning about reverse mortgages for a friend I always caution people against using them. The main problem is that they give you all the money right away. Let's say you need $1000 per month to make ends meet. With a home equity line of credit you borrow an additional $1000 every month and pay interest only on as much as you've borrowed so far. But with a reverse mortgage they lend it all to you up front and you start paying interest on the entire amount immediately. They never mention that in the advertisements. Of course there are other considerations, like you have to qualify for a HELOC and at least make interest payments. But what's one month of interest on $1000 (your first month)? About three d...
by dougboswell
26 Apr 2016 13:47
Forum: Property: Owning, Renting, Managing, Investing and Mortgaging
Topic: Bruised Credit Mortgages
Replies: 1
Views: 968

Re: I never knew this.

There are companies that will lend to people with bruised credit. Any mortgage agent can find these lenders. However I strongly suspect that your friend did not get a good rate. With a score below 500 the mortgage is probably for 1 or 2 years maximum with a significant high rate. The person may have had to pay an acceptance fee which would have been added on to the total also. However it probably meant saving the home and buying time for the person to get their debts under control and paid down.
by dougboswell
06 Feb 2016 18:31
Forum: Property: Owning, Renting, Managing, Investing and Mortgaging
Topic: First time home purchase.
Replies: 13
Views: 4263

Re: First time home purchase.

Regarding amortizations. If your down payment is less than 20% and CMHC insured, the maximum would be 25 years. If it is over 20% down then most lenders let you go either up to 30 or 35 years.
by dougboswell
05 Feb 2016 11:01
Forum: Property: Owning, Renting, Managing, Investing and Mortgaging
Topic: First time home purchase.
Replies: 13
Views: 4263

Re: First time home purchase.

With respect to a mortgage ask the potential lender how the mortgage will be registered - standard charge or collateral? TD, RBC and National Bank register their mortgages as collateral. If you decide to transfer to a new lender at the end of the term a collateral mortgage will require you to pay for a lawyer as opposed to a cost free switch if it is a standard charge
by dougboswell
05 Feb 2016 10:56
Forum: Property: Owning, Renting, Managing, Investing and Mortgaging
Topic: Mortgage renew coming up - whats your approach
Replies: 8
Views: 2918

Re: Mortgage renew coming up - whats your approach

As mentioned above you should select a mortgage that fits the terms you want. Perhaps you want to be able to put down up to 20% as a prepayment each year. Perhaps that does not matter but you would like to add a couple of extra payments a year so an accelerated mortgage such as accelerated biweekly might be what you want. Do you anticipating moving in the short term ie 5 years, or do you foresee needing to refinance? You will want a mortgage lender that offers favourable terms to calculate the penalty. The big banks tend to use posted rates as a their rate as opposed to monoline lenders that use their current rate. The one item is that even economists cannot agree upon is where and how high rates will be in the next 2-5 years. Variable rate...
by dougboswell
05 Feb 2016 10:42
Forum: Property: Owning, Renting, Managing, Investing and Mortgaging
Topic: First time home purchase.
Replies: 13
Views: 4263

Re: First time home purchase.

You will need to put an offer in. If you have enough funds a 20% down payment will save you CMHC fees. A home inspection is optional but unless you are knowledgeable in all aspects of construction it is worth your money to have one done. The conditions you need inserted are for financing and the home inspection. Try to get 7 or 8 business days not 5. It takes some lenders up to 2 days to look at your application. I would not have the home inspection done until you have approval for the financing. Depending upon the value of the home and location some lenders may require a formal appraisal as part of the approval process.
by dougboswell
21 Mar 2015 09:50
Forum: Property: Owning, Renting, Managing, Investing and Mortgaging
Topic: First time mortgage questions
Replies: 26
Views: 4491

Re: First time mortgage questions

The points I raised in my first post are red flags that the big banks do not talk to you about unless you know to ask those questions. Whether to go with a variable or not basically comes down to your level of risk tolerance. A 5 year fixed gives you piece of mind and you know exactly what your payments will be. If you have extra cash you can make prepayments up to the annual allowable amount. Variable mortgages do carry risk in that if and when the Bank of Canada raises its prime rate the variable rate will rise also. At some point your monthly payment will rise also, If you don't mind risk and can sleep at night variable may be the answer. If you would be laying awake at nights worrying about if you can afford any new increase in monthly ...
by dougboswell
19 Mar 2015 11:55
Forum: Property: Owning, Renting, Managing, Investing and Mortgaging
Topic: First time mortgage questions
Replies: 26
Views: 4491

Re: First time mortgage questions

You need to ask a couple of more questions from RBC. Ask them if this mortgage is being registered as a collateral (probably yes) and ask what the pros and cons of a collateral are compared to a standard. With a collateral, if you ever decide to move to a different lender ( ie: you want to switch at the end of your 5 year term) you will have to pay lawyer's fees to have it discharged ($750 - $1000 these days). If you are in a 3 or 5 year variable most lenders let you switch to a fixed mid-term. However if you are in the 2nd year of a 5 year and want to switch they will not convert you to a 3 year fixed to complete the term but it has to longer than the 3 year. More importantly you do not keep your variable rate but are given a fixed which c...
by dougboswell
07 Feb 2015 18:55
Forum: Property: Owning, Renting, Managing, Investing and Mortgaging
Topic: Do I need title insurance?
Replies: 19
Views: 6692

Re: Do I need title insurance?

If you were to get a secured line of credit against the condo it would be registered. No-one can take out another mortgage on it without you or your lender knowing. You don't have to use it but it is there.
by dougboswell
03 Feb 2015 12:40
Forum: Property: Owning, Renting, Managing, Investing and Mortgaging
Topic: Buying a house after bankruptcy
Replies: 2
Views: 1723

Re: Buying a house after bankruptcy

There are different "B" lenders that will look at applications from those that have gone through bankruptcy. They offer regular mortgages although they will be at higher rates. Some require 1 year discharged from bankruptcy while others may require 2 years discharged. Usually they want to see a rebuilding of credit over the time from discharge such as with a credit card and/or line of credit. Depending on the lender they may want 25% to 30% down payment. Everyone's situation is different so lenders look at an application on an individual basis. I would caution you against using a private lender. Usually it is for 1 or 2 years only but it will be at a much higher interest rate. At the end of the 1st or 2nd year you are back in the ...
by dougboswell
24 Jun 2013 11:45
Forum: Property: Owning, Renting, Managing, Investing and Mortgaging
Topic: What costs to expect when buying a cottage?
Replies: 35
Views: 11874

Re: What costs to expect when buying a cottage?

Many excellent valid points have been written in response to your questions. My biggest concern would be pooling with relatives. No matter how much you may love them do you really want to mix business and pleasure with them? What happens when 1 set decides they want out and want their fair share of equity? If the remaining do not have the cash to buy them out you may find the cottage being sold against your wishes. same thing happens when 1 of the group dies? You could but it using equity in your house. Depending on the location and age etc some banks are very sticky when it comes to lending mortgages ie water access only - not much hope.You would be better to discuss the financing with a credit union in that area. You might pay a higher ra...