Mortgages

Mortgages

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How to get lower loan rates.jpg
Jarek BucholcJarek Bucholc   March 17, 2016   1294   0   2   0   0   0
What is a Vendor Take Back? A VTB or Vendor Take Back is when the seller (vendor) of a property provides you with a some or all the mortgage financing for purchasing his/her property. This type of financing is more common on commercial properties (including multi residential) however you can tap into this strategy on residential purchases. A VTB can also entail the seller covering one or more of your closing costs such as land transfer tax, appraisal, survey or application fees. Why Consider a Vendor Take Back There are many reasons as to why seller-arranged financing may be attractive to you as a buyer: 1. Buying a distressed property. If you are a flipper or looking to buy distressed properties with the mindset of improving/renovating those to increase value then a VTB may come in handy, simply because some lenders may shy away from lending against such a property or may lend at whopping interest rates. When dealing with distressed properties, it is often beneficial that you finance your purchase through a combination of a VTB, Line of credit, your own cash and then approach a lender once you have brought the property to a certain standard. 2. You are unable to obtain Financing through the standard lending sources. Qualifying for a VTB is a matter of negotiating one with the seller while getting a mortgage requires you to qualify with the lender. If your financing application got declined and you have exhausted your...
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Minimum Down Payment Increase for Home Purchases in Canada Explained
Jarek BucholcJarek Bucholc   January 13, 2016   1121   0   2   0   0   0
The federal government introduces some changes to down payment requirements for federally regulated lenders. This video breaks down the "old" rules versus the "new" rules.
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Jarek BucholcJarek Bucholc   February 05, 2014   1583   0   0   0   0   0
A method by which monthly mortgage payments are equalized over the life of a loan, despite the fact that the proportion of principal to interest changes.
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Guest   January 29, 2014   1470   0   0   0   0   0
A blanket loan is one where there is just one promissory note (I promise to pay $10 million ...), but the note is secured by several different mortgages on several different non-contiguous parcels. If the parcels were contiguous (touching), it is customary for the lender to use just one mortgage and to include each of the contiguous parcels in the legal description of the property. Where the properties are clearly different and separated from each other, it is customary to use a separate mortgage for each separate property.   So why would a borrower want to get a blanket mortgage? He might think that he is saving money on closing costs by making the loan just one big deal. In addition, the larger the commercial loan, the slightly lower the interest rate.   But commercial lenders in general do not like to blanket properties, especially if the properties have different uses. Few commercial mortgage lenders would jump at the opportunity, for example, to make a blanket loan across an apartment building and an office building. This is especially true if the commercial mortgage lender loved apartment loans but hated office building loans because they are over-built, or vice versa. Real Estate Investors often use Hard Money Loans at high interest rates and will use a Blanket Loan to refinance to a lower rate or to get Cash out.
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Jarek BucholcJarek Bucholc   January 04, 2008   3078   0   0   0   0   0
Fixed-Rate (Closed) Mortgage With a fixed-rate mortgage you benefit from the security of locking in your mortgage interest rate for a predetermined length of time, usually ranging from six months to five years. Other terms such as three months, or six, seven and 10 years are also available. If you think interest rates will increase, you may want to choose a longer term, such as a five-year term. If you think that rates are going to decrease or remain relatively stable for a long period of time, you may want to choose a shorter term. Most lenders will allow you to make additional payments on your mortgage without any penalty. These could amount to as much as 25 per cent of your original mortgage amount (depending on the institution). However, if you want to pay more than the annual allowable maximum, or pay off the entire mortgage at any time, you will generally have to pay a penalty. Make sure you understand this before choosing your term.  
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Jarek BucholcJarek Bucholc   January 04, 2008   3435   0   0   0   0   0
If you are locked into a closed mortgage, you may want to break your current mortgage contract and negotiate a new mortgage at a lower rate. Some agreements do not allow for a mortgage to be renegotiated, but most do. Financial institutions will usually allow you to pre-pay your mortgage in full, but will add a penalty.  
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Minimum Down Payment Increase for Home Purchases in Canada Explained
Category: Mortgages
The federal government introduces some changes to down payment...
Category: Mortgages
If you are locked into a closed...
Category: Mortgages
Fixed-Rate (Closed) Mortgage With...
Category: Mortgages
A blanket loan is one where there is just...
How to get lower loan rates.jpg
Category: Mortgages
What is a Vendor Take Back? A VTB or...
Category: Mortgages
A method by which monthly mortgage payments are equalized...