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October 16, 2017

Accelerated or non-accelerated weekly payments? That is the question. What is the difference between an accelerated weekly payment and a non-accelerated payment? Simple!  If your mortgage costs you $1,000 a month, and you want to pay it weekly, your financial institution will ask if you want to make the accelerated payments or not. Here is how the accelerated payment works: $1000/month divided by 4 = $250 a week for 52 weeks.  This equals a total annual payment of $13,000 instead of $12,000 ($1000 x ...

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Achat, Hypothèque

October 09, 2017

Caroline and Benoit buy their first condo. Caroline and Benoit, both twenty-five, just graduated from university. Both have found a job in their respective field with annual salaries of around $42,000. Their job probation period is over and now they want to purchase a condo. They are mainly motivated by the fact that they want to stop paying $750 a month rent on lodgings that don’t belong to them. Benoit’s father advises the young couple to meet with us to get a ...

September 25, 2017

These are the two most frequently asked mortgage related questions. In order to simplify the answers, we have divided the following article into sections using the Four Pillars of Credit : Revenue, Debt Ratios, Credit Score, and the Property in question. Admissible Revenues: The first step to follow in finding out the maximum amount you are eligible to borrow for your mortgage is to establish your total admissible revenue. In reality, there are certain rules banks and credit unions follow when establishing your income, ...

September 04, 2017

According to the changes made by Finance Minister few years ago, you can no longer refinance* a mortgage for more than 80% of the market value of a home. Over the last 5 years, we have noticed that many of our clients return to our offices seeking mortgage refinancing in order to consolidate their debts. Sometimes this would occur only months after the initial purchase of the home. Often, this was due to the fact that the new owners had ...

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Hypothèque

August 28, 2017

Proof of income: Documents that are proof of your income are very important. They will be the hardest to find and require the most work, so it is absolutely essential that you be prepared if you want to avoid a lot of stress. Salaried employees must produce a recent pay stub and a letter confirming their hiring date, their position, salary, and employment status (permanent or temporary). This letter has to be recent, usually six months prior to your mortgage request. For ...

August 21, 2017

We often want to move because we want to buy a bigger home. However, several factors, such as hesitating to leave a neighbourhood your family is fond of or the high cost of a larger home, might lead us to ask ourselves, "Why not just expand our current home instead?" Would adding a garage with an extra room above and some additional storage space, do the trick? Here are the questions you need to ask yourself when considering such a project: How much ...

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Hypothèque, Prêt Hypothécaire, Rénovation

August 14, 2017

Their youngest has just left the nest. Monique and Jean-Claude are in the mood to travel and enjoy some well-deserved  R&R.  Mowing grass and shoveling snow are not part their retirement dream. They fall in love with a beautiful downtown condo with magnificent city views, but it costs considerably more than the value of their current home. The market value of their bungalow is approximately $300,000 and their dream condo costs $400,000. At their age, they are not looking to take on ...

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Achat, Hypothèque, Prêt Hypothécaire

August 07, 2017

This is a question frequently asked concerning mortgage financing... I have credit card debts, could my house be the solution to my debt issues? The answer is YES, if you have the necessary equity to refinance your property. The principle is simple: calculate 80% of the market value of your home and then subtract the current mortgage. Is there any equity left?  Is it enough to pay off your debts? Here is a concrete example: Townhouse purchased several years ago for $250,000 Current market or ...

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Hypothèque, Prêt Hypothécaire

July 10, 2017

A home equity line of credit can be an interesting product, but only in certain situations; so it is important to give this option some thought before choosing it. Vigilance is essential because it is easy to spend beyond one’s budget when money is available as if by magic. Analyze your needs before negotiating a home equity line of credit If you are looking for a way to finance your vacation, a home equity line of credit is not the right way ...

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Achat, Hypothèque, Prêt Hypothécaire, Rénovation

July 03, 2017

Although the kitchen, the bathrooms as well as the floors are rarely to our taste when we visit houses for sale, is this a reason to reject a house that has many other assets? The CMHC purchase-renovation program, growing in popularity, is even necessary in certain renovation situations since the change in mortgage lending rules. It is now impossible to borrow more than 80% of the value of the property. Thus, refinancing after doing the renovations will definitely not free up ...