Following are eight tips to keep in mind between your mortgage approval and funding dates:
1. Don’t buy a new car or trade-up to a more expensive lease. 2. Don’t quit your job or change jobs. Even if it’s a better-paying job, you still are likely to be on a probationary period. If in doubt, call your mortgage broker and they can let you know if this may jeopardize your approval.
You Found Your Dream House? You’ve finally found the house to call home, and you are about to make an offer to purchase? There are some things to remember and keep in mind when you are purchasing a home or waiting for your mortgage to fund. It is very important that you consider all of the following since your application may be declined: 1. Assuming Your Pre-Approval is All You Need Run away from the “non pre-approval”. A full approval means your credit’s been checked, your lender has reviewed the type of income you have, and where your down payment is coming from. I’ve had clients come to me after they had a pre-approval and waived their financing condition, and it turned out the bank had declined their application when their credit bureau was pulled. I always tell my clients that I need to have a full disclosure, that way we can select the most appropriate lender, and make sure there are no surprises down the road. 2. Quitting Your Job, Changing Employers or Starting a Business Undeniably, some job changes are out of our control and inevitable. But if you can, wait to change jobs or quit to start a business until AFTER your closing date.... For US homeowners, mortgage interest is automatically tax deductible. But for Canadians, the write-off is not so straightforward. In order to make your mortgage interest tax deductible, homeowners must be able to prove that the money is being reinvested and is not being used for personal expenses.
A properly structured mortgage-centric tax strategy has several key elements – the most important of which is a multi-component, readvanceable mortgage or line of credit. It’s best to have a single collateral charge with at least two components – usually a fixed-term mortgage and an open line of credit – that can track and report interest independently. This is absolutely essential under Canada Revenue Agency (CRA) rules and guidelines. Second, the strategy must employ conservative leverage-investment techniques – which is why a financial advisor must be involved in order to comply with federal regulations. The financial advisor should be a Certified Financial Planner (CFP) who is experienced in leveraged investing, and able to actively monitor a homeowner’s portfolio on an ongoing basis. Homeowners who opt for a tax-deductible mortgage interest plan make their monthly or bimonthly mortgage payments the same way they would when making any type of mortgage payment. The payments go towards reducing the principal amount of the mortgage and are then moved over to the line of credit as the mortgage is paid down. But in order to be tax-deductible, the funds must then be transferred to an investment bank account, which can be done automatically by your CFP.... |
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