Richards Mortgage Group Articles

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?

Last updated September 22, 2023 The current law in Canada requires residential mortgages with less than 20% down payment be CMHC-insured against borrower default. The insurance premiums can be in the tens of thousands of dollars, and many prospective buyers wonder how to or if they can avoid CMHC fees. This article explores the costs and benefits of CMHC mortgage default insurance to determine its significance. In summary, mortgage default insurance allows you to stop dreaming and start doing!