Title Insurance – What is it and What is it used for!

Title insurance can be used for several purposes: For mortgage fraud For coverage for defects with title Gap Coverage Gap Coverage is a way that allows lawyers to close a deal quickly before they have registration at land titles For defects with title – it means there can be coverage to help pay to fix a problem with the property that an RPR would have shown. Common issues that title insurance can be used for are fences being built over the property line, encroachment issues, lack of development permits, setback issues, etc. Title issues is an alternative to a real property report in terms of closing a purchase…

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Upcoming Mortgage Renewal

What to do when your mortgage is about to renew! What does it mean if you have an upcoming mortgage renewal? When you have an upcoming mortgage renewal this means that the contract you sign with your existing lender is ending. When you get a new mortgage you choose a term this can be any number of years from 1 to 10. Your term can be open or closed and your rate can be fixed or variable. Either way when your term nears its end it will be time to explore your options! What do you need to do? You have a few different options when your you…

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Thinking of Purchasing an Acreage?

What you need to know A common question we get when buyers are thinking of purchasing an acreage is do you need more than 5% down payment? The answer is no! The minimum down payment to purchase an acreage is the same as an urban home. You only need 5% to purchase an acreage. Acreages can however have their own special circumstances. These can make it different or a bit more complex than purchasing an urban dwelling. The lenders perspective When a lender is determining the value of an acreage property they will generally only take the value of the residence and the surrounding 10-15 acres. This can…

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Equity – How Do I know If I have Enough Equity In My Home to Use!

How do i know if I have enough Equity in my home to take out and payoff other debts? The general guidelines allow you to take out up to 80% of the appraised value of your home to payoff debts, invest or use as you choose. You first need to figure out what that number is, take off the amount owing on your home and the rest is usable equity. As an example you have a property worth $400,000 so 80% of that is $320,000.  You have a mortgage for $300,000 so that means you have $20,000 extra that you can use to payoff those other debts.  It…

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CMHC First Time Home Buyer Incentive Program

CMHC First time Home buyer Incentive Program Update! If you are looking to buy your first home and are waiting until September for when this program is set to be implemented you may want to call us to discuss. As a first time home buyer you may be surprised at how this program really works. How does it work? The government plans to provide first time home buyers with  5% contribution to the purchase of an existing home. They will provide 5-10% contribution to a new home build. It is only available to a first time home buyer. The home buyers household income must be no more than…

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Where Does Your Deposit Go when you Place an Offer!!!

Deposits on accepted offer to purchase. What is it applied to? The amount you give for deposits on your accepted offer to purchase are applied directly to the amount of down payment required Those funds sit at sellors real estate office until needed by lawyer at time of signing legal mortgage documents. So if your full down payment is $10,000 and you have given $2,000 as deposit on your offer you will still owe $8,000. Call Advance Mortgage for further explanation 403-347-0774

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Home Equity Line of Credit

How does a Home Equity Line of Credit work and are they a product that works for your situation. If you have enough equity in your home you may be able to access a home equity line of credit. This type of product is secured against your property. It will show up on your title as a mortgage type charge.  They are reusable. You pay on what you owe and in most cases can pay only the interest amount each month or you can pay out the entire amount. They are on a floating variable rate. Many clients find the flexibility of the product to be very advantageous.…

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Allowable Sources of Down Payment

There are various allowable sources of down payment that you can use for your purchase.  Most lenders will use in some form each of them however some are on a case by case basis. Saved funds – must show 3 months worth of bank statements to prove the accumulation and if there are large deposits you must prove the source of those as well Investment/RRSP  – must prove the funds have been in the investment for at least 3 months and also show the withdrawal of the funds into your bank account Gifted Funds – must be from an immediate family member being a Mum, Dad, Grandma, Grandpa,…

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Purchase Plus Improvements

When house shopping home buyers can usually come up with at least one thing they would change or renovate in a home. Many home buyers will buy a home and plan to do the renovations down the road. But what if they had the option to borrow the money with their mortgage and do the renovations right after they move in! This is actually an option. It is called the purchase plus improvements program. How it works is the lender will lend the mortgage amount based on the Improved value that the home would be worth AFTER the renovations are completed. For example if a family buys a…

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Spring Has Sprung!!! Rate Wars Are On!

Spring has Sprung and along with it is a Great Rate Price War! Which Lenders are doing it, how are they doing it, what are they doing, and Most Important how low are they. Not all lenders are the same and neither necessarily are their rates, products or promotions!!!  Now is the time to be using a Mortgage Broker who has access to every type of product and rate there is available.  And a caution, use a Personal Broker and Not the Online Rate Hubs that only offer a No Frills Basic Service!!!  May Be a great Rate, but????? Call Brenda and Jessica at Advance Mortgage for the…

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