Normally in purchase financing, mortgage lenders have a rule that their loan be based upon 1) the appraised value of the property, or 2) the purchase price, whichever is less. But what if the property has appreciated considerably since the purchase price was agreed to years ago, as may be the case in pre-sale condominium and pre-construction purchase agreements and even rent-to-own transactions? The question then becomes, can I get a pre-sale condo mortgage based on the higher market value? Can I use price appreciation as my mortgage down payment?

Client is 55, single, and behind on retirement savings. A case-study in pre-retirement mortgage planning.

I have a client - let's call him Ted - who recently reached out to me to do some mortgage planning.

Last updated November 9, 2022

Essential Mortgage Planning Tips BEFORE you Retire/Quit Your Regular Job

As you approach retirement, before relocating or downsizing, or otherwise before losing your regular predictable employment income, you may want to consider to position yourself to retain access to your home equity and be aware of your future lending options - it's smart retirement planning in my opinion. Once you lose your regular employment income, your lending options are drastically reduced and your home equity may become trapped forcing you to sell or change your plans if there is an acute need for money. I always say, the best time to apply for credit is when you don't need it!  Please enjoy the video (click the image) and the supplementary discussion below.

Using the Equity in Your Home to Purchase Other Properties

What do Bob & Kathy of Calgary and John & Betty from Ottawa both have in common? They both happened to contact my office this past week and they both were trying to figure out mortgage options to finance the purchase of a vacant parcel of land somewhere 3 or 4 hours west of their home cities. For now, the plan was to use the place as a weekend and summer getaway and God knows they could use a getaway in this crazy Covid-ridden world! Down the road, each couple will eventually build a retirement home or cottage.

The job market and economy isn’t what it used to be.  Mike had worked for many years in Canada’s well-paying resource sector but like many others lost his job as international employers abandoned Canada in favour of other parts of the world with less political interference and more investment certainty. With a wife and young children to support, Mike did what he had to do and searched for work overseas. Finally, he got an offer and took up employment with a large multi-national engineering firm with headquarters in the Netherlands and to be paid in Euros.