Posted on: 21-09-08 23:59:36
Whats the website to see mortage rates on daily basis, like in USA, below website shows the current rate.
http://www.freddiemac.com/
Also with household income of 100K per annum how much house can i buy.
Also what the amount of money i need to plan for
1. Down payment
2. Closing formalities
3. Etc
I was hoping to buy 300K house and give 30K down, please advice.
Quote:
Originally posted by tanzdhaliwal
Whats the website to see mortage rates on daily basis, like in USA, below website shows the current rate.
http://www.freddiemac.com/
Also with household income of 100K per annum how much house can i buy.
Also what the amount of money i need to plan for
1. Down payment
2. Closing formalities
3. Etc
I was hoping to buy 300K house and give 30K down, please advice.
It depends on the 'amortization' you take on your mortgage. On a 25 year amortization you can generally borrow up to 3.5 times of your household income. As you increase the amortization to 30 or 35 years, you can borrow up to 4 times of your household (verifiable) income. If you are looking to buy a house worth $300,000 and are going to put $30,000 as down payment, you would not have any problem in qualifying subject to your credit being good and the income is verifiable and you do not have much debts, meaning your GDS and TDS are in order.
You can put down payment any where from 5% of the property value to whatever maximum you can afford. If you put less than 20% down payment, then the property has to be 'insured for mortgage default' by an insurers such as CMHC, GENWORTH or AIG and you have to pay the premium and provincial tax on the premium. If you are in Ontario, it would be 8% on the premium amount. While the Insurance Premium can be added to the mortgage (paid by your lender on your behalf and added to the mortgage) the tax amount has to paid by you at the time of closing.
Closing costs are typically 1.5% to 2% of the property value which include the cost of land transfer tax, legal costs, PST on insurance premium etc. You may also have to make arrangements for the costs of appraisal ($250 to $275 plus GST) and home inspection ($300 to #350 plus GST).
For knowing latest mortgage rates, you can visit my website http://www.pramodchopra.com" rel="nofollow">LINK and here you can also sign up free to receive a weekly mortgage rate update.
Good luck.
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Pramod Chopra
Senior Mortgage Consultant
Mortgage Alliance Company of Canada
Pramod ji thanks a lot for your reply, i will contact youonce i am in Toronto.
My credit score is considered excellent in USA, but dont know if it means anything in Canada.
No debt at all, everything is paid for and my employement is with Canadian goverment as full time employee , so i guess it can be easily verified.
Again thansk for your response, i have saved your websiet in my favourites.
Quote:
Originally posted by Pramod Chopra
You may also have to make arrangements for the costs of appraisal ($250 to $275 plus GST)
Pramodji,
Great post once again from you.
I was wondering what this appraisal cost is for? Appraisal of the house/property? Who conducts the appraisal? What happens if the property has been 'over-appraised' but the appraiser and the market value is actually lower? What are the legal consequences on appraisers with respect to current sub-prime mortgage situation in the US?
The OPs original question was answered fully, so I am taking the liberty to hijack this discussion...
Hope you dont mind.
Hiren
Quote:
Originally posted by hchheda
Quote:
Originally posted by Pramod Chopra
You may also have to make arrangements for the costs of appraisal ($250 to $275 plus GST)
Pramodji,
Great post once again from you.
I was wondering what this appraisal cost is for? Appraisal of the house/property? Who conducts the appraisal? What happens if the property has been 'over-appraised' but the appraiser and the market value is actually lower? What are the legal consequences on appraisers with respect to current sub-prime mortgage situation in the US?
The OPs original question was answered fully, so I am taking the liberty to hijack this discussion...
Hope you dont mind.
Hiren
The appraisal for the house is only required when some one is putting more than 20% in down payment. If the borrower is paying CMHC insurance, the the appraisal is NOT REQUIRED as the insurer makes sure of the cost of the house is in line with the sale purchase agreement and the bank is then not concerned about the same.
However, If you are putting more than 20% down payment then in order to find out the latest and correct value of the house, the bank would ask you to get an appraisal done on the property from an appraiser who holds the designation of either AACI or CRA and he/she & the firm is on the APPROVED LIST of the Bank. You can go on this http://www.oaaic.on.ca/index.php?section=1 to find out more about the appraisers and their regulatory body.
To answer your question; If the appraiser does any thing to over appraise the cost of the house, then he/she is committing a fraud and is liable for his/her actions. And Yes, the same types of frauds (overpricing the value of the house, jacking up the income and other things as can be read on the website for which the link was provided by the OP) were committed by the appraisers, loan officers and mortgage brokers in US, the effect of which is being faced by every one. However, these people are now going to be facing legal actions and some are already in BIG HOUSE.
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Pramod Chopra
Senior Mortgage Consultant
Mortgage Alliance Company of Canada
Quote:
Originally posted by tanzdhaliwal
Pramod ji thanks a lot for your reply, i will contact you once i am in Toronto.
My credit score is considered excellent in USA, but don't know if it means anything in Canada.
No debt at all, everything is paid for and my employment is with Canadian government as full time employee , so i guess it can be easily verified.
Again thanks for your response, i have saved your website in my favourites.
If you have a permanent full time job in Canada but no credit score here, some lenders would ask for your US Bureau and work from there and you would be fine.
Good Luck.
EDIT: I just noticed that in a different thread you have asked for information on Incorporation for which you will get replies. However, I would just like to emphasise one thing here that for mortgage requirements one should have a permanent full time salaried job with no probation but if you are an Independent Contractor then the banks would like to see your 2 years of job history in Canada with Notice of Assessment etc. to verify your income and see if no tax is owing to CRA. Hence, if you want to buy a house first then you should delay incorporating your company. Any questions, you can either email or call me.
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Pramod Chopra
Senior Mortgage Consultant
Mortgage Alliance Company of Canada
I had perfect credit in the US but had problems even getting a credit card over here in Canada. So will be interested in knowing more about your case buying a house. I went for 35% down and was not subjected to credit check.
