Christine Buemann Mortgage Broker

It is vital that you determine how much you can afford before you start looking for a house. If you begin by looking at houses outside of your price range, you may set unrealistic expectations and the homes you can afford may appear disappointing by comparison. You also want to be confident that your monthly payments are sustainable and realistic for your budget. Here are a few tools to help you carefully consider the size of mortgage that is most suitable for you: Household Budget Calculator http://www.cmhc.ca/sharing/en/householdbudget.html Mortgage Affordability Calculator http://www.cmhc.ca/sharing/en/affordability.html Mortgage Payment Calculator http://www.cmhc.ca/sharing/en/mortgage-payment-calculator.html http://www.christinebuemann.com

Consistently tightening mortgage rules combined with low interest rates have caused several lenders to revise their guidelines for gifted down payments. As per CMHC, the person gifting the funds has to be a relative and the funds have to truly be a gift (no repayment required). Traditionally, they have only required a gift letter signed by both parties along with proof of the funds being deposited into the recipient’s account. Several lenders have now adjusted their supporting document requirements and they will now need to see one of the following along with proof of the funds being in the recipient’s account: 1.        Proof of the funds being in the relative’s account prior to the transfer of funds 2.        A letter from the relative’s financial institution stating that they have adequate funds to cover the gifted amount   Lenders now have more pressure to evaluate the overall risk of a file and although CMHC does consider this type of down payment to be “traditional”, m