Tag Archives: buying a home

Major Changes to Mortgage Insurance for Second Home Buyers

Canada Mortgage and Housing Corp. has declared that they will be tightening up the types of mortgage insurance it will offer. The Crown corporation said Friday that it is going to stop offering mortgage insurance on second homes. It will also stop offering mortgage insurance to self-employed people whose income cannot be validated through traditional means.

These changes affecting those who buy second homes also means that if they currently have an insured mortgage; they will not be eligible to act as a co-borrower on another insured mortgage.The CMHC says that its second home program and its self-employed-without-third-party-income-validation programs account for less than 3 per cent of its insurance business volumes in terms of the numbers of mortgages insured. A recent press release stated:

“Given the limited use of these products, their discontinuation is not expected to have a material impact on the housing market.”

The Crown Corporation has been offering insurance on second homes since 2005. This has enabled people to buy more than one home with a smaller down payment than they would otherwise need. It has been offering insurance to self-employed people without strong income validation since 2007. CMHC will cease offering both products as of May 30.The CMHC also noted that

“self-employed Canadians can still qualify for CMHC insured financing through CMHC homeowner products with a validation of their income using traditional methods.”

Those might include a notice of assessment, audited financial statements, or unaudited financial statements prepared by an independent third party.

For the full article go to: http://m.theglobeandmail.com/report-on-business/economy/housing/cmhc-tightens-mortgage-insurance-offerings/article18224612/?service=mobile

Benefits of Home Ownership vs. Renting

A young couple standing in their new home kitchen

Overall, while renting is a good solution for the short term, in the long run buying a home definitely is more advantageous.

There are numerous people that want to give up renting for home ownership, but they stand on edge wondering if they are potentially making the worse mistake ever. It is true that buying a home is one of the most important decisions a person will ever make. It is important to be well informed about the home buying process in order to be in the best position to buy the property that is best for one’s personal circumstances. While renting may be “safe” in some aspects, it doesn’t really allow individuals to take full advantage of their ability to build their own wealth. Thus, the following details the many benefits of home ownership in comparison to renting.

One of the biggest benefits of home ownership is the building of equity and personal wealth. People that own their own are constantly increasing their equity when they pay a mortgage each month. As the mortgage is paid down and eventually paid off in full, a home becomes a piece of property that can be used to build personal wealth. When renting, any money that is paid goes to the landlord or the apartment complex. The renter does not obtain any benefit in the long term when paying for use of a property on a monthly basis. However, when buying a home in Burlington, Ontario, the monthly mortgage payment is paying off the 15 or 30 year mortgage that was used to secure the home. This is truly one of the main benefits of home ownership that all monthly payments actually bring people a step closer to building their own wealth.

An additional reason people should consider buying a home is to have security. Owning a home is the only way to truly know where one will live a year, five years and ultimately 30 years from now.  People that rent an apartment of home may encounter a number of interesting situations if their landlord is not paying the mortgage on the building where they reside. Numerous people find themselves homeless when they discover that their landlord did not pay the rent on their building. To avoid this form of upheaval, it is best to consider the benefits of home ownership. Once a home is purchased, the buyers can remain in the property as long as they pay their mortgage in a timely manner or until they decide to move.

Buying a home definitely becomes an advantage for people at tax time. Homeowners qualify for a number of tax breaks. This can help to greatly reduce the amount of money that people pay during the tax season. Each year, homeowners qualify for a number of different tax breaks for everything from purchasing energy efficient appliances to being a first time home buyer. Also, some of the tax related benefits of home ownership include the ability to deduct the mortgage interest from income taxes and deduct real estate taxes. These are some of the major tax and financial benefits of home ownership that people should consider.

One of the best things about buying a home is the ability to personalize your property. Everyone knows how picky landlords and apartment complexes can be about personalizing space. Renters are usually forewarned that they are not allowed to add or remove anything from the property. Likewise, most renters are subjected to the ever boring “white walls” that often lack personal style and character. However, homeowners can do whatever they please with their property because they own it. This is one of the best benefits of homeownership. Personalization of the living environment is something that many people want in order to feel comfortable. When buying a home, the ability to personalize and make home feel like a home is something renters will appreciate.

Overall, while renting is a good solution for the short term, in the long run buying a home definitely is more advantageous.

Considering Purchasing A Home? Here Are Some Tips

You have made a decision to purchase a completely new home. But before you sign anything – in fact, before you even start looking – take a close look at your way of living, and get the responses straight down on paper. How you live can without a doubt allow you determine where you live; things like pastimes, the amount of socializing you do, just how much hours you spend at home, and even what sporting activities you get pleasure from – all these may have a effect on the home you ultimately opt for.

It’s interesting, but a majority of folks don’t give as much consideration to their way of life as they do to the structure quality of the home.

While a profile needs to be created for each family member, form a list for the family as a whole, charting family priorities or the strongest and weakest tastes of each member. It might be difficult to fulfill every person’s wish list equally, but this kind of user profile is going to specify which components are generally most important to all.

Likewise, writing it down don’t just helps keep them in mind when you’re house-hunting, but could also make you aware about traits you could have in any other case neglected. The following are some points to bear in mind in drawing up the profiles.

Recreation. The majority of people enjoy some kind of leisure-time activity, whether a sports activity or a hobby. Regardless, it could have an impact on the home you decide on. In case you lean toward active sport, then you certainly should look for a home and community that allow you to fulfill these requirements handily and simply.

In case you are still working, to enjoy the most time at home, opt for a site suitable to your job, or very near to a fast commute. And in the event that your spare time is limited, chances are you’ll want to have a home in an area where virtually all of the outdoor maintenance is done for you. Residence living is the greatest option for a low-maintenance lifestyle that amplifies spare time.

Exactly how effective do you reckon you will be in starting a new way of living? Most individuals are creatures of habit in certain regard and they follow the same likes and dislikes and pursuits even though they’ve moved to a different location. Other individuals regularly develop new interests and new approaches to have a great time. People are most likely to be pleased in a home and neighborhood which gives them precisely the same fulfillment they enjoyed before.

Could there really be room for everything? You could have an amount of china or artwork, an excellent library or wine cellar. Your kids may have favorite items, too. Select a home in which these items can be shown and cherished.

How about price? Exactly how much do you want to invest in your home in relation to other interests? A mature adult couple now residing in a single-family home may decide to use their resources to move into a similar condo. In contrast, a more youthful couple may want to spend more on a home in a recreation-oriented community for them to enjoy activities that would cost them much more individually.

As you answer these questions regarding your personal way of living, you may discover additional questions you should ask yourself, to help you to determine precisely how you desire to live. Once you answer them all, the search will be a lot simpler.