Interest-only mortgages can offer homebuyers lower payments initially, but they could cost more than a traditional loan in the long run. If you’re planning to buy or refinance a home, researching different types of mortgages is an important step. One loan option you might consider is an interest-only mortgage. Interest-only mortgage loans allow you to…
Are you ready to read alot of numbers? Canadians continued to rein in borrowing for the second straight quarter, according to recent data from Statistics Canada. Household credit market borrowing slowed slightly to $25.1 billion. The slowdown was largely driven by a decline in consumer credit lending, which fell from $7.8 billion in the first…
Your gross debt service (GDS) ratio is your housing costs divided by pre-tax income. Your total debt service (TDS) ratio includes payments on any other debts you may owe. When determining how much you can afford when buying a home, lenders will look at two significant factors: your gross debt service (GDS) ratio and your total…
Despite recent interest rate cuts, the Canadian real estate market remained slow this summer. This has prompted some in the industry to call for an end to the stress test – a tool that determines whether a person can qualify for a mortgage. But would it be a good idea? Christopher Alexander, president of Re/Max Canada, is…
Porting a mortgage, also known as transferring a mortgage, is a process all homeowners should be familiar with. The porting process allows you to apply your current mortgage terms to a new home loan with the same lender — all without breaking your mortgage contract. Porting a mortgage allows you to sell your house in the middle of…
With many Canadian homeowners facing a sharp rise in mortgage payments, many of them have decided to bail, resulting in the highest number of Toronto housing units for sale in more than a decade and signaling a big drop in prices in the coming months. In Toronto, a city where two-thirds of the country’s condominiums…
Found a home you love? Ready to start the mortgage process? Awesome! What’s next? Paperwork! One of the first things lenders will ask of you is a list of documents – so having this organized beforehand is essential. These documents are intended to provide information about your financial stability and other key factors to help…
Canadian households are finally starting to realize why so many agencies warned against borrowing so much debt. A new report from Equifax Canada shows more households are struggling to repay their super-sized debt loads. The agency notes the trend is amplified in more expensive regions, where delinquencies are rising faster than the national average. Even worse, early…
Your amortization period is the length of time it takes to pay off your entire mortgage. The maximum amount of time you are given depends on how much of a down payment you make when you purchase your home. You already know that the minimum down payment you can make is 5% of the purchase price; however, if you…
Canada’s banking regulator says high borrowing costs and a wave of expected renewals in the coming 18 months pose key risks to Canada’s financial system. With 76% of outstanding mortgages expected to come up for renewal by the end of 2026, OSFI says homeowners face the risk of payment shock, particularly those who took out…
