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The following four expectations form the cornerstone of the transaction. By ensuring that these expectations are met, the mortgage agent will develop a strong relationship with the borrower and ensure that the industry as a whole is well represented. The best...
The Direct Comparison Approach The direct comparison approach in determining the market value of a property is the most appropriate for mortgage financing and is therefore relied heavily upon in the appraisal report. This method uses the principle of...
Referrals refer to those clients who have been advised to do business with the mortgage agent by a third party. A client may be referred to him or her by a financial planner, a Real Estate saleperson, an insurance agent, a past client, or whoever has come into...
The Financial Components of a Mortgage The basic premise behind every mortgage is the borrower’s promise to repay the amount borrowed. There are several components to a mortgage, as is illustrated in the Standard Charge Terms, but at its core a mortgage payment...
Real estate property appraisals for mortgage financing A mortgage lender is interested in knowing what the market will pay for a property under normal circumstances. A real estate appraiser will produce a document called an appraisal that calculates the market...
You might think that since the mortgage broker finds the borrower, the lender doesn’t have to pay the costs associated with obtaining that borrower, such as advertising and marketing, having branch offices, etc., and therefore dealing with mortgage brokers is more...
What is a high ratio mortgage? A high ratio mortgage is a mortgage that exceeds 80% loan to value. This refers to either a purchase where the purchaser has less than 20% for a down payment or, in a refinancing scenario, where there is less than 20% equity in the...
What is a Reverse Mortgage? A Reverse Mortgage is a type of interest accruing mortgage that is typically provided to seniors. The major provider of Reverse Mortgages in Ontario today is the Canadian Home Income Plan (CHIP). This organization provides...
The loan to value of a mortgage is defined as the amount of the loan, in dollars as a percentage of the value of the property, in dollars. This is calculated by dividing the mortgage loan amount by the value of the property. Example If a borrower wished to...
What is loan to value (ltv)? The ltv is the amount of the loan, in dollars, in relation to the value of the property, in dollars, expressed as a percentage that is typically rounded off to two decimal places (unless it is an exact number). For example, if the...
Registered funds and mortgage investments Registered funds typically eligible for use in a mortgage investment are RRSPs, LIRAs, LIFs, RRIFs, RESPs and TFSAs. The benefits of using registered funds to invest is that the income generated will be tax...
Unlike a standard mortgage that places a charge on title, a collateral mortgage, which has been around for years but typically only used for secured lines of credit, is a promissory note with a lien on the property for the total amount registered. You can...