Reverse Mortgage – Could It Be Right For You?

  CHIP Mortgages(Canadian Home Income Plan)

Reverse Mortgages

As more Canadians reach retirement, they want to continue to stay in a home of their own rather than rent.  The “CHIP” (Canadian Home Income Plan) reverse Mortgage can help make it possible.  Reverse Mortgages have changed a great deal over the past year and may be a solution for you if you don’t have enough retirement income to stay in your home and maintain your lifestyle.

For details about this up coming mortgage solution for Canadian Seniors, You may be surprised at how it can become your solutions!

Contact us to discuss your options

10 Reasons to Use A Mortgage Broker.

 Mortgage Brokers have more solutions than ever!

Don’t let Mortgage Rule changes keep you from getting the mortgage you need.

Working Professional

10 Reasons To Use A Mortgage Broker

What Does It Mean To Be Bankrupt in Canada?

Bankruptcy- An option for those overwhelmed by Debt.

The concept behind Bankruptcy in Canada is this: you assign (surrender) everything you own to a Trustee in Bankruptcy in exchange for the elimination of your debts. Through bankruptcy, a person hopelessly burdened with debt gets a chance to start fresh.

Personal bankruptcy is a legal process, governed by federal law (the Bankruptcy & Insolvency Act). The law is designed to permit an honest but unfortunate debtor to obtain relief from his or her debts while treating creditors equally and fairly.

Bankruptcy in Canada

A person must live or do business in Canada, and must be insolvent. To be insolvent means:

1. To owe at least $1,000.

2. Not to be able to meet your debts as they are due to be paid.

Bankruptcy Trustees are federally licensed. Their fees are regulated and moderate, so the cost of Bankruptcy is reasonable.

Because Bankruptcy is a legal process, there is a “stay of proceedings” that prevents a garnishment or any legal action from happening, and stops your creditors from calling.

You may be entitled to an automatic discharge from Bankruptcy in 9 months, the minimum time set by the Court to be Bankrupt, provided you have never been bankrupt before and you complete various duties and responsibilities.

Your ability to obtain credit in the future could be affected, since Bankruptcy will remain on your credit report for seven years.

Exceptions to the discharge of all debts

Some debts are not erased. Bankruptcy only deals with unsecured debts – things like credit cards, personal loans, income taxes, overdrafts, etc.

A secured debt, such as a car loan or mortgage, is not included. Since you have given an asset as collateral, your creditor does not need the Bankruptcy process to recover the amount owing to them.

Some unsecured debts are also not discharged in a Bankruptcy, such as student loans less than 10 years after you stopped going to school and/or any alimony or child support.

Exceptions to the surrender of all assets

Some assets are not taken from you in Bankruptcy. These are the “exemptions” that the government has determined you need to survive.

A list of exemptions is set by each provincial or territorial governments in Canada. For example, in Ontario, a car worth less than $5,650 is exempt, also personal items such as clothing worth less than $5,650 and household items worth less than $11,300.

For most people the assets they must surrender include their investments, RRSPs, and RESPs, as well as their house.

Exceptions to discharge from Bankruptcy in nine months

The length of your Bankruptcy will be nine months, unless one of the following is true:

  • You fail to perform all your bankruptcy duties, such as regular payments of surplus income to the trustee.
  • You have surplus income (see below).
  • You have been bankrupt before.

How much longer your Bankruptcy period will be depends on the details of your case.

Surplus income adds to cost of Bankruptcy

On top of the trustee fee and your loss of assets, a bankruptcy may cost you some of your income, depending on how much you earn and the size of your household. The principle is that, if you earn more than your household needs to survive, you must pay the “surplus income” to your trustee for the creditors. The formula used is prescribed by law.  The more you earn, the more expensive filing for bankruptcy will become.

Superintendent of Bankruptcy

This article is courtesy of A Farber, Trustee in Bakruptcy

Every Canadian deserves a home they can call their own.  Let “Your Durham Mortgage Solutions Team” at Mortgage Intelligence help you with a low rate solution! Apply today & save!

Appliances- Repair or Replace?

Repair or Replace?

Every appliance has a different life expectancy so knowing when to replace rather then repair is very valuable.  We’d like to share with you some tips that we have found to be worth while. Please enjoy this video

Did you know that “Your Team” at Mortgage Intelligence is here to share their knowledge and experience when you need a Mortgage.

Apply today!

March Break Fun at NEBS Oshawa

March Break- NEBS Oshawa

 

 

 

 

2.999% Rate Special This Week

2.99% rate Special. No Kidding!

New Mortgage applications can qualify for 2.99% for 5 yr fixed rate mortgages.

Compare most major lenders at 3.69% and higher.

No Kidding 2.99% 5 yr mortgages

Contact us for more information or Apply today

All Mortgages for this special must be completed in 45 days from application. OAC applies.

CMHC Fees to Increase.

CMHC Increasing Fees.

On May 1st CMHC will be increasing the fees they charge when you need a mortgage for a homeowners and for rentals with 1-4 living units. Self employed individuals will also be affected.

CMHC fee increase

This is the statment CMHC issued about the increase:

“The higher premiums reflect CMHC’s higher capital targets” said Steven Mennill, CMHC’s Vice-President, Insurance Operations.  “CMHC’s capital holdings reduce Canadian taxpayers’ exposure to the housing market and contribute to the long term stability of the financial system.”

Average Canadians will see this reflected as about a $5.00 increase to their monthly mortgage cost.

Please refer to the chart to see how the increases will affect fees:
Loan-to-Value Ratio -Standard Premium(Current)-Standard Premium
(Effective May 1st,2014)
Up to and including 65%         0.50%                               0.60%
Up to and including 75%         0.65%                               0.75%
Up to and including 80%        1.00%                                1.25%
Up to and including 85%        1.75%                                 1.80%
Up to and including 90%        2.00%                               2.40%
Up to and including 95%         2.75%                               3.15%
Non-Traditional Down Payment    2.90%                      3.35%

CMHC reviews its premiums on an annual basis and, going forward,
plans to announce decisions on premiums in the first quarter of
each year. The homeowner premium increase follows changes
CMHC made to its portfolio insurance product earlier this year.

If you intend to buy a home this year, consider doing so before the fee increase  on May 1st.

Get pre-approved today!

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