Found 4 blog entries tagged as finances.

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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Confused about closing costs? We’ve got you covered. From insurance costs to legal fees, here’s what you need to know.

What Are Closing Costs? 

In short, closing costs are additional (generally one-time) costs and fees a buyer is required to pay upon completing a home purchase. While the exact total will vary depending on the property type, experts recommend setting aside at least one to three percent of a home’s overall sale price.

What Do They Cover? 

Closing costs may include (but aren’t limited to): 

Land Transfer Tax

Land title transfer tax is a mandatory fee paid by the buyer when property ownership is transferred (to the buyer) by the seller. Land title transfer fees in Alberta are based on both the size of your mortgage…

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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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