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Tag Archives: Financial Planning

Getting separated is never easy: learn how to move ahead with your living arrangements

Aside from the emotions involved with a separation, there are several things to consider and act upon relative to your current mortgage.

The first important step is to finalize the separation and get an agreement together. This important document outlines how your assets will be divided and how other important financial decisions will made.

There will be two clear paths to take in your housing: 1. will you be buying a new property; or, 2.will you stay in the existing home?

In the event of a new purchase, things to consider include:

  • Will you be keeping or selling the existing house?
  • What can you afford relative to your current financial situation? (getting pre-approved is essential and will help you with this decision)
  • Will one of you be coming off the title of your matrimonial home (should either of you keep the existing residence)?
  • How will you secure a down payment for the new property?

If you are staying at the existing home these things should be considered:

  • Can the equity in the property be used to consolidate joint liabilities?
  • Is there enough to provide a payout if there is one in question to the other party?

A mortgage professional can work in partnership with your lawyer to help navigate whatever scenario you’re in. I’ve helped many people build their new financial future sometimes from scratch. Often debts can be a dispute, but regardless of who pays the bills it’s important to maintain a good credit history. If your ex. decides not to pay some of the credit cards or lines of credit on time it will have a negative effect on your credit history and will affect your ability to get good mortgage financing.

If you’re in a situation where you will be keeping the matrimonial home and buying your ex. out of the house there are ways to refinance your property to 95% of the value. This is normally unavailable in a traditional refinance. However through a separation or divorce equity can be accessed if an agreement of purchase and sale is drafted. This is program that’s offered through all Canadian mortgage lenders as a program through CMHC or Genworth Canada.

Please contact me if you need help navigating this often difficult situation. We have the experience and expertise to move you ahead with your new life.

OSFI Tightens Supervisory Expectations for Mortgage Underwriting

OTTAWA ─ July 7, 2016 ─ Office of the Superintendent of Financial Institutions The Office of the Superintendent of Financial Institutions Canada (OSFI) today released a letter to all federally regulated financial institutions (FRFIs) reinforcing its expectation that federally regulated financial institutions engage in prudent underwriting of residential mortgage loans. With Canadian household debt levels… Read More

Should I buy a house now or wait until I have more money saved?

Canada Mortgage Housing Corporation (CMHC) has some interesting statistics available on home purchases. It normally takes people nine to fourteen months to decide to move. However, once someone has made the decision, they normally act promptly when they see a house they’d like to buy. For the first time in 2015 more first time home… Read More

Clear up debt for 2016: a great financial goal because of low rates

  About a quarter of my mortgage practice consists of people who come to ask advice and help around paying off debt. Considering that a mortgage is normally a person’s largest liability, there are a couple of simple things you can do if you’re carrying balances on credit cards, or lines of credit. As companies… Read More

Housing Market Outlook 2015 and projection for 2016

New Home Market In the Kitchener-Cambridge-Waterloo (KCW) and Guelph areas, housing starts will be lower in 2016 and 2017 compared to 2015. There will be a greater decline in apartment starts (both condominium and rental) in KCW however, single-detached starts will increase slightly as the demand will remain strong and more land will become available… Read More

Trends in 2016 which will impact mortgage borrowers

Trends in mortgage financing that have impacted buyers and sellers in 2015 The overall sentiment of mortgage lenders, be it bank’s or wholesale banks, is more restrictions to lending money and this will continue for 2016. However, if you know these key factors you can use them to your advantage. Working with a seasoned mortgage… Read More

Watching the Mortgage Market: Where do you stand?

Canada Mortgage and Housing Corporation (CMHC) recently published its Consumer Survey for 2015 and sheds some interesting trends. Here’s a summary of what Canadians are doing with their mortgage. When you understand people’s habits around financing, it can help you get a better mortgage. Here’s a summary of the report… Renewing your mortgage We have… Read More

Selling your house? Think there should be no issues in qualifying for another mortgage? Think again.

If you’re contemplating selling your house and buying another one and you don’t think that getting approved for a mortgage will be an issue, think again. In the 15 years that we’ve brokered mortgage, we’re finding more and more people declined by their own bank for their next mortgage. Why? Tighter mortgage regulations are making… Read More