raymondlesiw1

  This is the most difficult topic related to mortgages and it will continue to be confusing until the laws in Canada are changed to require consistency on how lending institutions charge their penalties. Most lenders charge an early payoff penalty on closed mortgages if the debt is paid prior to the maturity of the term. The lending institution must describe the penalty they could charge on the mortgage document. The most common penalty is: The greater of three months interest penalty OR the interest rate differential. In other words, whichever amount is the larger of these two figures will be your penalty. Other kinds of penalties are listed below. Three Months Interest Penalty If you are paying off your mortgage before the maturity date, most lending institutions charge three months interest penalty (or an interest differential penalty). Your present mortgage balance is multiplied by your current interest rate and multiplied by three. ·     ...

  Lending requirements about the purchase of rental properties are almost as varied as the number of lending institutions. I would definitely discuss your present circumstances and the kind of rental property you would like to buy with your mortgage broker. If you are looking to buy a house in Ontario for you to move into, and it contains an ILLEGAL basement apartment, some lenders will ‘offset’ a portion of the rent (e.g. 75%) to help you qualify to buy the property. If the suite is LEGAL some lenders will allow you to ‘offset’ the whole rental income from your mortgage payments. Other lenders will only add the rental income to your total income – so they are only using 32% of the rent to help you qualify. Refinances Debt Consolidation Private Mortgage Best Mortgage Rate Mortgage Broker If you are considering buying separate rental property then there are generally two ways to consider whether you qualify. You own your present house, you want to rent it out and b...