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

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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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    Budgeting for New Home Ownership

    Smart Budgeting Smart budgeting is required when buying your home. Saving the down payment and crunching numbers help determine how much mortgage you can afford. But the costs don’t just end there. Planning in advance ensures that financial surprises will not interfere with your homeownership plans. Be prepared for these additional costs. Deposit This is due when your Offer to Purchase has been accepted and is essentially a gesture of good faith between the buyer and the seller. Your deposit becomes part of your down payment if the deal proceeds. A minimum deposit is usually a [...]

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    Case study: a 6-plex in Northern Ontario

    Deal Description: Refinance a converted home,  now a six-plex-  a “B” building in a “B” neighbourhood, with a “B” borrower. Purpose: To refinance the building at a higher Loan to Value and use the equity to finance the repair of other buildings Employment: The applicant is a professional Landlord, with 50 plus units, personally held.  This number of personally held units limits his ability to obtain conventional financing. As a self-employed Landlord, his NOAs do not reflect his actual income. Credit: Similarly, his credit [...]

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    Interest Rate Increase

    Interst Rate Fixation I’ve said previously that there is no explaining the fixation that Canadians have on interest rate. Interest rate is only a small part of every mortgage and there are many other factors that affect the cost of borrowing. Instead of asking about the interest rate, people should be comparing the costs of their mortgage. There should be little interest in the interest increase of a reverse mortgage, To begin with, the interest rate on a reverse mortgage, depending on the term, is a few points higher that a normal HELOC.  It is this difference which [...]

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