Golden Girl Finance
 
Jennifer Coy
Posts (20)
 
 

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Q&A: Will I qualify for two mortgages?

December 4th, 2012 by
 

Q: I am buying a presale condo with my spouse. This will be our first principal residence. I am thinking of buying a second presale condo at the same time under my own name as a rental property. How will this affect my mortgage with my spouse? Will I be able to get two mortgages? Appreciate if you can help me.

Asked by Janise, Montreal, QC

 

The answers to these questions depend on many variables, including down payment availability, your current income, your spouse's income, your current debt load, etc.

If you have enough room within the lending guidelines for both mortgages, and you have sufficient funds available for the down payments, then you should be fine.

A couple of things to remember…

  • Rental properties require a higher down payment, and a higher interest rate may accompany them.
  • When qualifying for your rental property mortgage under your own name, only your income will be considered, but both full mortgage payments will be used in the calculations - along with the property taxes and condo fees for both properties.

A qualified Mortgage Professional will be able to help you prepare before entering into these purchases. 

And good for you…for getting out there and building your net worth!

 

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Q&A: New amortization laws - limits & questions

September 24th, 2012 by
 

In 2009, I got a mortgage with a 30-year amortization; my bi-weekly payment was $500. About 9 months later, I decided to increase my bi-weekly payments by $20. Last week, I went to my bank and asked that they no longer take the extra payment. I was told they cannot because my amortization will then go over 25 years and the new laws dictate they cannot exceed this limit. I don't understand because it is not a new mortgage and the $20 extra payment was going towards the capital. How can that affect my amortization?

Asked by Anonymous, Ottawa, ON

 

That information is inaccurate. My advice is to clarify your request. There should be nothing preventing you from decreasing your payment to the original amount.

If you don't feel comfortable with the individual who provided this answer, ask to speak with a mortgage specialist or the branch manager.

My guess is that they are misinformed themselves, or have some internal system difficulty in accommodating your request. This should not be your problem to deal with.

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Q&A: When you marry someone with a home, should you be added to the mortgage?

September 10th, 2012 by
 

I got married a year ago, and moved into my husband's home. This month the mortgage is up for renewal and I'm wondering if there are rules (laws) regarding whether or not I should be involved in this process? He has not yet discussed it with me but I do know he has met with mortgage consultants. I feel like I live in "his" home, though he says it's "ours"; this mortgage renewal is making me feel again that it is his home as I'm not being included in the process. I do not have any intentions of bringing it up, but if there are legal ramifications for him that don't include me, I'd like to let him know. Thanks.

Asked by Anonymous, Toronto, ON

 

I can imagine that this process lacks a little warm and fuzzy feeling. Some research may be important for you to do.

Laws that govern this kind of question are provincial. The two areas you will want to inquire about are the homestead right and joint property or assets. Division of assets and homestead right would be part of family law. You have rights in both cases.

It sounds like you may want and need to bring it up with your husband in order to feel involved. To get informed, I would suggest first talking to a local legal professional or go online to Ontario's Ministry of the Attorney General. Read through the family law section of the site. This should help you to feel prepared.

Remember, being honest and open - and asking questions - is the key to relationship success.

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Q&A: Should I refinance my home mortgage to consolidate debt?

September 9th, 2012 by
 

I have a mortgage on my home for $289K which will be open for renewal in 2 years and 7 months, an equity line for $100K at 11.99% interest, and a mortgage for $64K on a commercial property. I was thinking of refinancing my existing home mortgage to cover all three debts. What is your opinion regarding this?

Asked by Anonymous, Mississauga, ON

 

My first question is why your rate on the new mortgage would be 4.99%? That seems very high, when the best mortgage rates are just over 3%.

Questions you need to ask - yourself or your lender - include:

  • How was this rate determined?

  • What is the approximate value of your home?

  • Are all of these accounts at the same institution?

  • Are they blending your rate to avoid charging you a penalty for paying out your current mortgage early?

  • What did you use the equity line for?

There may be tax implications when combining multi-purpose debt. Get some answers from the financial institutions and lenders with whom you're dealing.

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Q&A: When you remarry & own your own home - should his name be added to the mortgage?

August 31st, 2012 by
 

When my husband died, the family was left without a home. I purchased a house. A few years later, I re-married. The house/mortgage is in my name only. Should both names be on the mortgage? What benefits or pitfalls are there for it to remain as is or place both names on it?

Asked by Anonymous, Wallaceburg, ON

 

This question has a legal aspect to it that is better deferred to a qualified legal professional in Ontario. With that said, each province deals with marital property somewhat differently. One partner may wish to stay off the title for tax or legal reasons, for example.

I can offer my opinion on what I believe is simpler. That is, both names should be on the title and on the mortgage. This provides a homestead right for both parties, and it allows both incomes to be used in qualification for mortgage borrowing needs. Family debt is always considered, so family income should as well.

This is the advice I give to my own clients when they ask. If you can both be on there, make it so.