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  How Much Are Closing Costs in Canada There are quite a few measures one needs to take before purchasing a property. Families in Canada need to come up with a minimum of 5% down-payment or more. But that isn’t all there is to it. There are various closing costs that most families fail to consider that are known as closing costs, and they can end up being a lot down the line for a family that isn’t prepared for them. Budgeting For Closing Costs It isn’t the end of the world, of course! There are several ways you can budget for closing costs. By default, you should have a minimum of 1.5% of your house's value as part of closing costs. Suppose you have your eyes set on a home that costs $300,000 in Canada. You must have saved up at least $4,500 in funds to pay closing costs. Without having saved this amount, likely, you will not qualify for an insured mortgage. In the circumstances that you are buying and selling a property at the same ti
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Using Home Equities to Buy Rental Properties   Ever find yourself thinking about home equity and what it can do for you? It isn’t just a thing you only see in mortgage commercials; it’s an aspect of our lives. Home equity is essentially the money that your home makes for you. Suppose you own a property that was once worth $200,000 but is now valued at $600,000. The $400,000 increase in the market value of your property is your home equity, and it has been growing steadily over the time you have been a homeowner.   Interest rates continue to rise, which means that the initial price you paid for your property will eventually become a small fraction of its current market value. If the value of your property rises by 80%, then perhaps it is time for you to leverage your home equity for a loan on second investment property so you can grow your money even more. Keep in mind that you must go into this with the mindset to cash in on it down the line.   Vacation o
  Everything You Need to Know About Second Mortgages If a second mortgage is what you need, there is no reason to be ashamed of it. There are several reasons why you might need that money, perhaps you wish to return to school, or you need to pay back some credit cards that have been stressing you out for some time. If not, then perhaps you wish to repair your home to make it more livable for your family and increase its property value down the line. You might want to consider taking advantage of your existing property's home equity which is more significant than any cash you might have access to. This post will take a close look at second mortgages and just how you can use them for your rainy day. What is a Second Mortgage? Before we discuss how it can help you, we must first discover what it is. It is essentially a loan taken out against a home you own. You must already pay this property’s mortgage to qualify for a second mortgage. The good thing about

Top Facts About RRSP Home Buyer’s Plan

  Top Facts About RRSP Home Buyer’s Plan Every Canadian knows that if they want to save up for when they retire, putting their funds into a Registered Retirement Savings Plan (RRSP) . It is an incredible tool to help individuals accumulate their Savings. There is virtually no tax charged on any amount put into these accounts, nor is it charged on any interest it generates down the line. Individuals that put their funds in an RRSP account can certainly enjoy not paying tax on their funds while also accumulating interest until such time that they decide to withdraw from this account. That brings us to the point of this post, and that is: can you use your RRSP funds to help with a down-payment on your first property in Canada? The idea is that the funds need to stay in your RRSP account until you are of age to retire so that you are financially secure. Individuals that withdraw their funds earlier have to pay penalties for early withdrawals. However, the RRSP Home
  Top Tips for Getting Your First Mortgage Taking out a mortgage is likely one of the most significant financial decisions you will ever make. With the rising property prices in Canada, more people are looking to take out a mortgage to purchase their first home. If you’re currently looking to buy a new property, here are some top tips to improve your chances of being approved for a mortgage. Improve Your Credit Score Credit scores are categorized as poor, fair, good, very good, and excellent in Canada using a scoring system between 300-900. The category you fall into depends on your previous financial decisions. Being in debt and having several late payments will lower your score, making it less likely for your application to be accepted.   Mortgage lenders will use your score to determine how financially trustworthy you are. They want to lend to people who will be reliable in making their monthly repayments. You can check your credit score for free online to
  Important Factors to Consider When Applying for a Mortgage Unless you’re paying for your new house in cash, you will likely need to apply for a mortgage. There are many important factors to consider when you make an application with mortgage providers. Your Earnings To qualify for a mortgage, you need to have a reliable source of income. Your income can come from several sources, including your salary, child support, or stock dividends. If you are self-employed, it’s usually a more complex process as this line of work is generally labelled as unreliable and inconsistent. However, if you can provide consistent payslips showing earnings from the past three or more years of being self-employed, you are more likely to be accepted for a mortgage. Proof of Income Mortgage lenders will require proof of earnings. They need to know that you are reliable and that you can afford the monthly mortgage repayments. For this