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Bank of Canada Holds Interest Rate at 1%

The Bank of Canada today announced that it is maintaining its target for the overnight rate at 1 per cent. For mortgage borrowers this means that those in Variable Rate Mortgages will see no change in their rate. The Bank of Canada has also given no clear indication...
Gifted Mortgage Down Payments

Gifted Mortgage Down Payments

It’s quite common for parents to help out their children or relatives these days with gifted down payments on their property purchases. The minimum down payment required to purchase a home is 5% and while there is still zero down mortgages available many clients...
Interest Rate Differential (IRD)

Interest Rate Differential (IRD)

Fixed rate mortgages typically carry a pre-payment penalty which is either 3 months interest penalty or an Interest Rate Differential whichever is higher. There is typically no IRD penalty on Variable Rate Mortgages. An Interest Rate Differential (IRD) amount is a...
Five C’s of Credit

Five C’s of Credit

When applying for a mortgage it’s important to understand how lenders determine your ability and willingness to repay your mortgage loan. In simple terms lenders use the Five C’s of credit to evaluate your application in the following ways: Capacity...

Mortgage Insurance

The following is a guest post by Desirée Dupuis, Partner at Three Sixty Financial Group. So you’ve just borrowed a huge amount of money from the bank for your new home. As exciting as that is (and most likely overwhelming) it is important to make sure that you...

Dealing with Mortgage Payment Difficulties

Are you behind on your mortgage and concerned about the possibility of losing your home? As your mortgage broker I understand that your home is the single most important investment you may ever make. Unfortunately, sometimes people may encounter financial difficulties...
Total Debt Service Ratios (TDS)

Total Debt Service Ratios (TDS)

One of the ratios used to determine whether or not a borrower is able to carry the debt load for a mortgage. The ratio is calculated as the percentage of annual income required to cover housing costs (GDS) plus any other loans that an individual has, such as those...
Loan to Value Ratio (LTV)

Loan to Value Ratio (LTV)

The amount of the mortgage loan compared to the value of the property. This ratio is calculated by the lender prior to providing the loan. The results of this calculation help to determine whether or not the applicant will qualify for a loan and whether the...