• Mitch Speigel – Mortgage Agent
    Your Mortgage Group Professional
    Kora Management
    License #M08003984, FSCO #10315

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    Debt Consolidation and Debt Settlement

      Debt-to-Income Ratio It seems as if the debt-to-income ratio is always in the headlines. Just recently it was reported that the ratio edged down to 177.1% in the second quarter of this year, from 177.5% between January and March. The number means Canadians owe $1.77 in debt – including mortgages and consumer debt like credit cards – for every dollar of disposable income. In 2016, the ratio was sitting at 167.3% and increased each year until October 2018, when it started to come down, thanks to both a slowdown in borrowing and healthy income growth. For the most part, consumers [...]

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    Tiny Homes Are In!

                      It’s happening in many parts of the country; tiny homes are popping up in laneways, in backyards and on acreages, and demand for them is growing. There are even tiny house communities being built. Prices are also getting higher. One tiny home sold recently in Oshawa, Ontario for $200,000. Those buying tiny homes are first-time home buyers getting into the market, or people who are retiring and downsizing. While interest in tiny homes is high in Canada, especially in Alberta, British Columbia [...]

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    Forget HELOCs. Follow the trend to Reverse Mortgages

    Your home as an ATM Canadian homeowners in their golden years have a new favorite way to use their home like an ATM. Office of the Superintendent of Financial Institutions (OSFI) filings show the balance of reverse mortgage debt is now at a new all-time high, and still posting growth above 20% growth. Tap your home equity, without selling. Also called an “equity release,” the borrower pledges his home for a lump sum loan or regular payments.  Similar to a home equity line of credit (HELOC), but the borrower doesn’t have to make payments, nor does the borrower have to [...]

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    Property Taxes in Ontario: Are they equitable?

                  Last week, the Globe and Mail published a table showing the property taxes paid in cities across Ontario, at different assessments. These assessments are set by MPAC, the Municipal Property Assessment Corporation, the entity charged with establishing the “market value” of all Ontario properties. Appraisals, upon which mortgages are dependent, establish a similar short-term value. Unfortunately, the values established by MPAC are similar to appraised values only coincidently. Table of taxes     [...]

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    It's that let's-go-looking time of the year. Vacations give us time to spend with family and friends, a time to kick back and relax, away from the noise and hustle of home. Some might consider owning their own piece of paradise. Having a second home for getaways sounds great, and often, it’s even a really good long-term investment. The Good News Buying a vacation property is easier than you think, but don’t jump in blind. You need to work with professionals with specialized knowledge to help you purchase and finance that property.  Work with a knowledgeable realtor and work with to [...]

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    Case Study: an equity take-out mortgage finances a new business.

                        Deal Description: The Borrower had a single-family residence, with a minor first mortgage. He needed an equity take-out to refinance to repay his mother’s estate and to finance his new business. Purpose: To use the equity from his home to finance his new business Employment: Neither the applicant nor his spouse was employed. Credit: Their credit scores were decent Problem There was no income coming into the household and no ability to pay the interest. Final outcome: We [...]

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    Are reverse mortgages worth the extra costs?

      It Depends. A recent article, (paraphrased), written by a CBC reporter provides a somewhat balanced approach to Reverse Mortgages and the answer is. “It depends”. A reverse mortgage allows you to pull money from the equity of your home without having to sell it or make payments. Deciding whether to get one comes down to the math, writes Mark Ting Getting a reverse mortgage can inject some tax-free money into your bank account, without reducing your income-tested government benefits. A reverse mortgage allows you to pull money from the equity of your home without [...]

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    Case Study: Alternative &quote;B&quote; mortgage saves a house.

                                Deal Description: The borrower was living in his partner’s home. When they split, the separation agreement allowed him to buy the home for the existing mortgage amount Purpose: To purchase the home in which he was living for the outstanding mortgage balance. Employment: The applicant was a professional DJ, working by himself and for himself, with little provable income. Credit: His credit was good, although he had some [...]

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    Case Study: A Reverse Mortgage Rescues Cross-Collateralized properties.

    Deal Description: Refinance a single family home that had an existing first mortgage, with a cross-collateral. Purpose: To refinance the property on which there was a collateral mortgage from another property. Employment: One of the applicants is retired. The other applicant is semi-retired with some part-time BFS income. Credit: Their credit scores are decent Problem The parents and a child each had a first mortgage with the same lender. At the time of the mortgage, neither had the credit nor the financial [...]

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    Mortgage Relief and Cannabis

    Mortgage Relief: Part of the recent federal budget was to assist “First-Time Home Buyers”, the budget includes the following: First-time homebuyers Incentive: First-time homebuyers whose household income is under $120,000 may qualify for an interest- free loan from Canada Mortgage and Housing Corporation of 10% for new homes and 5% for existing homes. This allows you to put more money down and borrow less for your mortgage. This will go into effect in September of 2019. Borrowers must have a down payment of at least 5%,  but less than 20%, and a household income of [...]

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