To calculate the overall balance between what income is coming in monthly minus other household debt payments, mortgage brokers and lenders will assess both the Debt Servicing Ratio (GDS) and Total Debt Servicing Ratio (TDS).
Read more about Difference Between Debt Servicing Ratio (GDS) and Total Debt Servicing Ratio (TDS) »
Handling multiple household debts is one such larger financial issue. Any decision that you make today to try to pay down this debt or any new debt you wish to take on can have the potential to hold long-term economic effects either positive or negative.
Read more about How Can I Pay Off Multiple Debts? »
In the beginning of July 2021, The Canadian Mortgage and Housing Corporation (CMHC) announced that the changes that were made a year earlier would be reversed to the original numbers.
Read more about CMHC Changes Underwriting Practices on Mortgage Loan Insurance »
The Covid-19 pandemic has left many homeowners with questions regarding their mortgage arrangements. Homeowners may have concerns resulting from increased difficulty making monthly mortgage payments while trying to also pay all associated housing costs and any other ongoing monthly debt payments.
Read more about Covid-19 Ontario 2021 Update – Can Lenders Perform Evictions? »
Another option open to homeowners with significant equity built in their homes is a Home Equity Line of Credit (HELOC). This second mortgage option acts like a revolving line of credit enabling funds to be available as the balance is paid off, a homeowner only needs to pay the monthly interest on the line of credit.
Read more about Home Equity Lines of Credit (HELOC’s) as a Private Mortgage Loan Option »
Regardless of the type of mortgage financing that works best for your immediate financial needs, you can properly prepare for your meeting with a mortgage broker by being aware of what your broker should be addressing.
Read more about Checklist While Working with a Mortgage Broker? »
Throughout Ontario, private lenders are well-established and experienced in negotiating private secured second (and sometimes third) mortgage options for existing homeowners with poor credit or high household debt ratios.
Read more about What If Your Credit Is Damaged? »
Just as in all second mortgage loan options, all lenders will be assessing the degree of equity in a homeowner's property. To calculate home renovation loans a lender will also ask to see a current appraisal to determine the current value of the property.
Read more about Short Term Home Renovation Loan – Upgrade the Value of Your Home »
Of all the criteria that Ontario lenders assess, credit remains top of the list when it comes to approving refinancing options utilizing your home equity.
Read more about How to Refinance a Principal Mortgage »