Stress Test - What has Changed?

Posted by Sean Stewart on 3 May 2021
Stress Test - What has Changed?
The mortgage stress test is simply am interest rate which you must use to calculate mortgage qualification. When lenders calculate what mortgage amount you qualify for they do not use the actual interest rate that they offer you, called the contract rate, instead they use a higher interest rate, which is called the stress test interest rate.

Currently, the stress test interest rate is set at 4.79% for all mortgage products. This is not the interest rate that you will pay, it is just used to ...
Posted in: Key Tips  

LENDER FEE - Why Lenders Charge a Fee

Posted by Sean Stewart on 19 April 2021
LENDER FEE - Why Lenders Charge a Fee
When you get into alternative lending you will start to see lender fees being charged by the lender. No A-lender will charge a lender fee, only alternative or private lenders will charge a lender fee.

Any type of lending is based on RISK. The riskier the transaction, the higher the cost of borrowing.  Alternative lenders have two ways to compensate for the increased risk which is associated with alternative mortgages, (1) increase the interest rate, and (2) charge a fee. So, why charge ...
Posted in: Mortgage Products  

PRIVATE FINANCING - How Does it Work?

Posted by Sean Stewart on 5 April 2021
PRIVATE FINANCING - How Does it Work?
Private financing in Canada has exploded over the last few years. With tighter mortgage regulations it has become harder for borrowers to qualify for the mortgage that they need. This has forced homeowners to search for alternative forms of home financing.

Qualification: In general, private lenders do not use the typical debt servicing calculation to qualify you for a mortgage. Though, the lender does want to see that you have the ability to make your mortgage payments. Hence, it tends to be...
Posted in: Mortgage Products  

First Time Home Buyer - Mortgage Insurance

Posted by Sean Stewart on 22 March 2021
First Time Home Buyer - Mortgage Insurance
  Mortgage insurance, what is it and why do I need it?

If you are putting less than 20% down payment on purchasing a property then it is a federal law that you have to pay for mortgage insurance. That's right, you have no choice. It is federal law, there is no way around it.

Mortgage insurance is insurance that protects the lender in case you default on the loan. If for whatever reason you are not able to pay your mortgage then the lender can make an insurance claim to get their mo...
Posted in: First Time Home Buyer  

MORTGAGE PRE-APPROVAL - Get Pre-Approved in 15 Minutes

Posted by Sean Stewart on 8 March 2021
MORTGAGE PRE-APPROVAL - Get Pre-Approved in 15 Minutes
Are you looking to purchase a property and want to know how much of a mortgage you qualify for? Knowing your purchasing power allows you to buy with confidence. There is a lot of information that goes into mortgage qualification and it takes an experienced expert to provide you with accurate advice. With our proprietary system we can give you an accurate maximum mortgage pre-qualification approval in just 15 minutes. A simple call allows me to ask you pre-qualification questions about incom...
Posted in: Mortgage Products  
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