About Admin

This author has not yet filled in any details.
So far Admin has created 2 blog entries.

Types of Mortgage Loans Explained

A home is the largest purchase you will ever make in your life. Understanding how mortgages work is crucial, as it allows you to discover the best lending options for you. There are numerous mortgage types, but to help introduce some lending jargon, we have listed the five most popular. Conventional Mortgages As the name itself indicates, this is one of the most popular mortgage options. A conventional mortgage requires you to put down a minimum down payment of 20%, with the remaining amount being covered by your loan. A down payment is usually funded by your own savings, but an alternative to fund a down payment is withdrawing money from your RRSPs. Example: If Mary wants to buy a $100,000 home, she will be required to submit a downpayment of at least $20,000. High Ratio Mortgages These mortgages require the borrower to place a down payment less than 20%. The minimum down payment is 5%, with the lending institution covering the remaining 95%. Because these mortgages are more high risk, they do require the purchase of mortgage default insurance, the cost of which is passed on to you as a lender. High ratio mortgages are capped at residential properties


Understanding Your Credit Score

You’re looking to buy a new home and you understand the importance of a credit score, but you’re not completely sure what it is f. Credit refers to your ability to borrow money and can be considered your “reputation” in the lending world. According to CBC, 31% of Canadians don’t know how to attain a good credit rating and more than half have never checked their current score. Good credit history is essential in many large life events, such as renting an apartment, purchasing a car, or getting a mortgage, and is crucial to your overall financial health. Check Your Credit Score If you develop bad credit, banks and other financial institutions will view you as a risk. You may be wondering if there is a way to know your credit rating in advance. There are two types of credit checks: A Soft Credit Check. This is when a credit check is made as part of a background check or personal inquiry and will not impact your overall credit score. A Hard Credit Check. This occurs when a prospective lender makes an official request to view your credit in an effort to decide if they should lend to you. Hard