A Quick Guide to Canadian Mortgages

Posted by | January 29, 2010 | Mortgages | No Comments

Kamloops Mortgage Services

There are several different types of Canadian mortgages including the second mortgage in which borrowers may be able to avoid having to pay high premiums on their mortgage. Such a mortgage is also useful in taking equity out of your home which can then help you to affect consolidation of debts.

The criteria used for obtaining second mortgages are negotiable and not quite as stringent as you would find when applying for a bank mortgage.

Another one of the more useful types of Canadian mortgages, equity financing is a good option for those home-buyers that can only pay twenty-five percent down payment and who have good credit. Equity mortgages are even given without income confirmation. In addition, this type of Canadian mortgage is ideally suited for people that are self employed and who have good credit. All they will need to pay is fifteen percent down payment and show their current tax returns and also prove that they do not owe any taxes.

Another form of Canadian mortgages, the construction mortgage is often overlooked because obtaining such a mortgage often takes a lot of time which is not acceptable to many people. However, if you deal with a broker who knows how to get you a construction mortgage in quick time, this Canadian mortgage type can prove to be very useful.

The big Canadian banks will offer construction mortgages but they only offer such mortgages to those people that can show having personal equity in a construction project. This is why you need to ask a broker to find you a lender who specializes in giving construction mortgages to everyone and on more reasonable terms.

To qualify for different types of Canadian mortgages you will need to use a calculation to see how well you will be able to afford to maintain your repayments on a mortgage. Typically this will involve calculating based on the valuation or the purchase price, whichever is lower. For people that are employed they must provide proof of income including the previous three month’s pay checks, latest P60 and/or reference from your employer and you may also have to show your previous six month’s bank account statements.

In order to qualify for the different types of Canadian mortgages you will need to use calculations that can help determine whether you can afford the repayments. In addition, as an employee you will need to provide certain documentation including previous three month’s paychecks while as a self-employed person you will need to show a different set of documents including three previous years of audited accounts.

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