We have seen more regulatory changes to the mortgage financing industry over the past couple of months and pretty much every year for the past four years.  One other change that is in the works is a reduction on the maximum loan to value allowed for Secured Line’s of Credit.  Right now a Secured Line of Credit can go up to 80% of a property value.  This could be cut to 65%.  With generally mortgage refinancing now at 80% (it was 95%  four years ago) regulators are trimming back how much equity a borrower can pull out of their properties.
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Typically sources of down payment have to come from the borrower’s own resources .  These would include:
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Mortgage amortization is the length of time that a mortgage loan is set up for.  In other words this is the maximum amount of time a borrower has to pay out the loan based on the initial mortgage payment set up.   Currently the longest amortization in Canada based on Government rules is 30 years.

More than 1 in 4 renters are planning to buy a home in the next two years according to recent study commissioned by The Mortgage Group (TMG).  This could translate to about 12% growth in ownership.  Of those surveyed, more than 54% said they would likely buy sooner if they expected interest rates to rise 2% or more in the next year.  While the fear of future rate hikes often drives consumers psychology, a budding homebuyer may also want to consider:
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Long term mortgage rates for both 7 year and 10 year are now under 4%.  Having a mortgage locked in under 4% for next 7 to 10 years is an amazing option especially on a investment property.

With RRSP season in full flight allot of people wish they had the income available to invest into their RRSP.  An investment in a RRSP reduces a person income tax and at the same time builds wealth (if invested correctly) for the future.  If you have large contribution room in your RRSP but do not have the funds to invest why not try taken equity from your home.  The borrowing cost today are extremely low, you will receive a healthy cheque back from revenue Canada or reduce your over all taxes while building wealth for the future.  You could also reduce your overall mortgage costs with a very low interest rate.

Call or email me with questions on this tax strategy.

The Minimum down payment required for a mortgage is 5%.  On rental or investment properties it is 20%.  This is a government law.

Sources for down payment can be banks accounts, investments, Lines of credit (secured against property), Gifted funds.
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The main objective of any mortgage borrower is to pay down there mortgage as soon as possible.  Naturally coming up with the money to do this is not that easy.  Two ways to chip away at your mortgage is to take an accelerated payment frequency and take advantage of the automatic payment increase allowed on your mortgage by your mortgage lender.  Here is an example.
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I hope the kids are not to wired today after all that sugar last night.

When your mortgage is up for renewal you do have options.  Believe it or not nearly 85% of Canadians sign their mortgage renewal letter without actually considering other options for a better rate or product.  When you receive a renewal letter from your lender, the lender (mainly banks) will not offer you the best discount rate.   They are hoping (and in most cases are correct) that you will just sign the renewal letter and send it back to the lender.  The lenders (banks) save allot of money by taken this approach.
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Hi,

below are some reason why you should always check in with your mortgage broker before signing any renewal agreement with a bank.  You do not have to renew with your current lender at renewal time.  Your mortgage contract is open again and you can go elsewhere.

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