Richards Mortgage Group Articles

Looking to kick-start your BRRRR real estate investment strategy in Canada? Look no further than owner-occupied properties!

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.

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.

In this blog, I provide a refresher on the down payment (equity) requirements for residential mortgages. It is a very common question and the answer depends on many factors. It depends on the property type (house/condo, acreage, vacant lot, farm etc.), who’s going to live in or on the property, how you earn income, and your credit rating. It also depends on whether you are looking for purchase financing or to replace/renew an existing mortgage. In this article, I am going to try and simplify the various ‘lending rule books’ for you in only 600 words!

New housing mortgage policies are coming into effect (again) and leaving many Canadians unclear about how their finances have been affected. The Government of Canada is introducing these new rules in two phases. This article is a quick summation of how you may have been affected. First, however, to understand the new rules it is important to understand the classification of mortgages and the previous rules.