The Government of Canada placed into effect a very important mandate called Guideline B20. It requires financial institutions and mortgage brokers to provide sound residential mortgage underwriting practices. This was done to reduce the risk of financial loss for lenders. Securing and protect lenders’ finances ultimately reduces the risk and …
Down Payment Requirements for a Rental Property
The down payment required from borrowers by lenders, investors and banks is a major hurdle to buying a rental property Before lenders can approve your investment property mortgage application, they expect you to be able to pay part of the home’s purchase price upfront. This upfront payment is called the …
6 Mortgage Broker Benefits
There are many benefits to working with a mortgage broker to obtain a mortgage or loan. Perhaps your offer on a home was accepted, or your mortgage has come up for renewal and you can refinance for a better rate. Maybe you would like some extra funds for a home …
3 Ways Loan To Value Ratio (LTV) is Important
Before a lender approves a mortgage or loan application, they weigh some important factors. The Loan to Value ratio is one of those important factors. A loan-to-value ratio basically measures the loan amount against the asset’s value. To calculate the LTV ratio, divide the loan balance by the value of …
Keys to Securing a Commercial Mortgage
The keys to securing a commercial mortgage are not foreign to a seasoned mortgage broker. A potential client once told me, “You cannot get a commercial mortgage outside of Toronto.. lenders in Toronto do not think that there is anything of value outside of their area!” In some ways, he …