The COVID-19 pandemic has affected the employment and income of many hardworking Albertans. As a means of helping homeowners pay their bills during these times of economic uncertainty, several of Canada’s largest banks are offering payment relief by means of deferred mortgage payments.

Here’s what you need to know:

What is the Mortgage Payment Deferral? 

An agreement between you and your lender, a mortgage payment deferral allows you to pause or suspend your payments for an allotted period of time. Sometimes referred to as a mortgage forbearance agreement, the deferral is a temporary measure that, upon ending, will see your payment schedule return to normal and the missed payments repaid.

Note: A mortgage payment deferral includes payments…

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Bulk-up your down payment savings with the help of these simple, practical strategies:

Finding Money in the Margins 

Save your down payment faster by doing away with lavish expenses and saving any additional funds that come your way: 

  • Amass windfalls – Instead of looking at work bonuses, raises, or other unexpected monies as a reason to spend, consider them a reason to save (if feasible, you may even want to consider asking for a raise).
  • Consider a staycation – Trading in your tropical getaway for a week at home may not sound glamourous, but it will be worth the sacrifice when you’re holding the keys to your new home.
  • Sell some stuff – If you have any stocks, now is a good time to cash in. Otherwise, you may be able to capitalize on…

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Become mortgage-free a whole lot faster with the help of these five easy tips:

1. Opt For Accelerated Payments

Depending on the terms and conditions outlined in your mortgage contract, you may be able to make accelerated payments. This option allows you to make weekly or biweekly payments, amounting to roughly the same total you’d expect monthly. However, by paying more than once a month, you’ll be able to save on interest charges and make approximately one extra mortgage payment per year.

2. Increase Your Payments 

Of course, increasing how much you pay, even if it’s only by a small amount, is a surefire way to become mortgage-free faster. Here again, you’ll have to refer to your mortgage contract as you may only be able to boost your…

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Gross Debt Service and Total Debt Service ratios are the two primary calculations lenders use during the loan application process. Together, these ratios play an integral role in determining your ability to qualify for a mortgage and how much home you can afford.

Here’s what you need to know:

GDS Ratios

Your GDS ratio refers to the percentage of your annual income needed to cover monthly housing costs – specifically your mortgage payment (principal and interest) as well as taxes, condo fees (50%, if applicable) and heating. As per the Canada Mortgage and Housing Corporation (CMHC), this percentage should be no higher than 35% when applying for a mortgage loan. 

How to Calculate Your GDS Ratio:

Your GDS ratio is the sum of your monthly…

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If you’ve been dreaming about buying your first home but can’t seem to come up with enough cash, these first-time buyer programs may be the answer.

Home Buyers’ Plan

The Home Buyer’s Plan (HBP) allows first-time buyers (or anyone who hasn’t purchased a home in the last four years) borrow up to $35,000 from their RRSPs to put towards a down payment. The same applies to partners and spouses (for a total of $70,000), with the same four-year clause.

Details:

  • The qualifying home must be your primary residence
  • When applying for the HBP, you must provide a written agreement to purchase (or build)
  • RRSP funds must be available 90 days before purchase
  • Withdrawals under the HBP are tax-free but must be paid back in full within 15…

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As a home buyer, you’ll inevitably have to decide between committing to a fixed rate or variable mortgage loan. While both have their benefits as well as their drawbacks, one will likely be better than the other depending on your unique situation (i.e. lifestyle, finances, risk and reward tolerance etc.). Here’s what you need to know:

Variable Rate Mortgages 

A variable interest mortgage (sometimes referred to as an adjustable-rate mortgage) is a form of home loan in which the interest rate “varies” according to current market conditions. In this situation, the lender will offer you a loan at Prime rate (the interest rate set forth by the Bank of Canada) plus or minus a certain percentage.

For instance, if Prime is 3.00% and you opt for a…

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Homeowner’s insurance, mortgage insurance and mortgage life insurance all play an important role in homeownership. But they’re also all very different in the benefits they provide. Read on to learn more about these types of insurances and how they help you as a homeowner.

Homeowner’s Insurance

What is homeowner’s insurance? 

Just as car insurance covers damages to your vehicle, homeowner’s insurance covers damages to your home. Also, like car insurance, you can opt to pay insurance premiums monthly or annually, depending on your unique situation (this amounts to approximately $1,200 a year, according to a recent study). 

How does it help? 

Although homeowner’s insurance isn’t mandatory, it is highly recommended as it will cover the…

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