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What’s a First-Time Home Buyer Incentive? If you want to get technical, the incentive is a shared equity mortgage. That means thegovernment of Canada will help you finance part of your first home — without adding toyour financial burden Basically, the federal government will lend you a certain amount based on the purchaseprice of your home subject to the property type. This will help first-time...

There are several reasons that a mortgage app may have been declined. While alender is certainly incentivized to lend out the institution’s money as amortgage, there are times when doing so represents a greater level of risk thanthe institution is willing to take. Some of these risk factors are presented below: 1. Poor or insufficient credit history The biggest reason that a lender may decline a...

How key inputs calculate a borrower’s debt service ratios. To receive the best quality decisions in the shortest timeframe, here is someinformation on the treatment of the key inputs used to calculate a borrower’s debtservice ratios. Gross Debt Service Formula: Principal + Interest + Taxes + HeatGross Annual Income Total Debt Service Ratio Formula: Principal + Interest + Taxes + Heat +...

Financial Statements Financial analysis begins with a review of Income Statements, the BalanceSheets and the Rent Roll. We will typically consider the last two years. Thecurrent twelve month period is the best indication of recent performance whichshould serve to establish the market value of the property. The capitalization rate (cap rate) also known as the income approach is themost commonly used...

Whether you’re buying, selling or refinancing your home, one of the mostimportant people you’ll work with is your real estate lawyer or notary. No matterwhich process you’re going through, your lawyer’s overall responsibility is tomake sure your paperwork is filed, your rights are protected and your transactiongoes through. Here’s a breakdown of their other duties, and answers to some ofthe most...

In case you didn’t know, the Registered Retirement Savings Plan (RRSP) contributiondeadline is March 1st. It’s the same day every year, which is why you’ll always see adsrunning promoting RRSPs in January and February. An RRSP is one of the best vehicles to save for your retirement, but many people haveno idea how they work. If you’ve never looked into RRSPs, they can be a bit confusing,but...

If you’re looking to buy a home or property, chances are you’ll need a mortgage. Amortgage is a loan that allows an individual to purchase a property. Most people require amortgage because few have the cash on hand to buy a home outright. As with all loans, youmust repay the amount borrowed, plus interest. That’s a very broad overview of how mortgages work. But there’s some other key thingsyou...