What Are Restrictive Mortgages?
No doubt low interest rate and agree that it is difficult to beat! I am sure other Red, Green and Blue color banks are waiting for a bright sunny day to declare similar or even better rates and that’s where the fun starts. Discover secret facts Canadian mortgage arena does not want you to know about low interest rates mortgages. Rest you be the judge yourself!
- What are Restrictive mortgages?
- What qualifies as a Restrictive mortgage?
- Pros and Cons of a Restrictive mortgage?
As the name suggest, mortgages that restrict you as a borrower. The other fancy name for restrictive mortgages is NO FRILL Mortgages. Please note I am not talking about No Frill Grocery store. They have nothing to do with mortgages.
9 Secrets About Restrictive Mortgages With Lowest Interest Rates
- Only 25 years amortization
- Only 10% Lump-sum Pre-payments privilege NOT more
- Only 10% Optional Payment increase NOT 20%
- Only Refinance with the same bank products unless you sell your home
- No access to Mortgage Cash account
- No Skip a Payment option
- No access to your Equity via Line of Credit
- Not available for Rental Properties
- Fully Close mortgage until you Sell your Home
If you only care about interest rate, go for it. However if you are looking more than just rock bottom interest rate i recommend you to dig in deeper. Learn more on how banks fight for your mortgage business & how you can benefit.
Today’s mortgages are more than just low interest rate. Discover more about Restrictive and Liberating mortgage options to make an educated decision.
Connect for a No Cost No Obligation Mortgage Strategy Session to discuss mortgage options which are customized to your needs.
You always have your Restrictive Mortgages at your disposal!
For all your mortgage and non mortgage solutions to your home ownership remember.
F.A.Q.
FIRST TIME HOME BUYER PROGRAM
This federal government program aka Home Buyers Plan (HBP) allow first time home buyers to withdraw RRSP funds up to $25,000 once with out any income tax on it.
If both you and your spouse/ partner qualifies for this federal government program, you can each borrow up to $25,000.
As long as you or your partner have not owned a primary residence within last 5 years and you are buying this property to live in you may be qualified for home buyers plan (HBP).
YES, you have to pay the rrsp withdrawn under the home buyers plan as a first time home buyer.
As per the plan all first time home buyers should start paying the rrsp loan back from year two onwards.
In general 1/15th of the borrowed rrsp funds under home buyers plan should be paid off every year. Any unpaid amount will be taxed in year 15.
If you buying a primary residnece in Ontario you may qualify for a Land Transfer Tax rebate from provicial government. You may receive back up to $4,000 in taxes you paid when buying your first home in Ontario.
Yes Indeed!
If you are ready to buy your first home in Ontario Canada, You should speak to a mortgage expert who will take time to sit with you, evaluate your situation in detail, gather income and down payment documents and is willing to evaluate your credit details.
Being pre approved has become critical for all first time home buyers since Jan 01, 2018 when mortgage stress test was implemented. Everyone who has purchased a home in past or are first time home buyers has to pass the mortgage stress test.