Monish Mehta - Mortgages

02/22/2021

It's a good idea to understand how lenders calculate the maximum amount they will loan you. The two calculations a lender does are: your gross debt service ratio (GDS) and your total debt service ratio (TDS).

To see how both calculations work, read more below.

Gross Debt Service Ratio (GDS)

To calculate your GDS, lenders try to figure out the proportion of your income you would be paying each month to own a particular property. If the answer equals less than 32 per cent (industry standard), the lender can feel confident in your ability to pay your monthly housing costs.

Total Debt Service Ratio (TDS)

To calculate your TDS, the lender will take the same GDS calculation but add in any other monthly payments you might have to make, including loans or the minimum payments on any credit card debt. If the answer equals less than 40 per cent (industry standard), the lender will know you have the money to make all of your monthly payments and you will be on track with getting approved for a mortgage.

What happens if I'm over the industry standard?

If either of your answers go over than the industry standards, you may want to save more for your down payment and/or pay off some existing debt before buying. If you have a high credit score or some valuable assets, you may still qualify for a mortgage, even if your GDS and TDS are slightly higher than the industry standards.

02/09/2021

Are you looking to rebuild your credit or not able to get an credit card because of low/no credit?

Whatever the reason, the Home Trust Secured Visa can help rebuild your credit. Here are some of it's features.

💳 Annual fee: $0

🖥️ Virtually guaranteed approval

🏦 Credit limit is set by the amount of security deposit put down, between $500-$10,000

If you want to know more about this and other ways to rebuild your credit score to qualify for a mortgage contact me at 647-609-9355.

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02/01/2021

The assumption that brokers place their residential mortgages with private lenders and not banks is untrue.

Essentially, people are looking outside the traditional lenders to qualify for a mortgage and mortgage lenders can help find lenders that will best serve your credit score, income and homeownership goals

01/20/2021

01/20/2021

🗣️ Breaking News🗣️ : The Bank of Canada has announced that it will maintain the current benchmark rate at 0.25%

This means the fixed interest rates will remain low and variable rates will not change.

01/18/2021

How much research do you do before buying a new phone📱, a new TV 📺, or a new car? 🚗

Don’t you want to make sure you’re getting the best possible deal for your mortgage as well.

Here’s how much you can save by shopping around for a mortgage.

Let’s say you’re a first time home buyer in Tornoto. We’ll also assume you’re taking an mortage of $350,000 and Bank X is giving you an interest rate of 3.34%.

Mortgage 🏠: $350,000
Mortgage interest rate: 3.34%
Monthly mortgage payment 💸: $1,806
Interest cost: $31,764

Now you meet us, and through our connections with lenders we offer you a interest of 1.90 %

Mortgage balance 🏠: $350,000
Mortgage interest rate: 1.90%
Monthly mortgage payment 💸: $1,465
Interest cost: $18,065
Total interest savings 💰: $13,699

Hopefully our short little math lesson will convince you that a few minutes of your time will be more than worth it.

01/11/2021

Here are some of my predictions for mortgage and housing market in 2021.

🏦The Bank of Canada will leave rates unchanged 🏦

The Bank of Canada slashed its overnight lending rate to 0.25% early in 2020,and that it will likely not increase it until inflation hits its 2% target.

🏠 Real estate prices will appreciate by 4 – 7% 🏠
With Canadians working from home, the demand will continue to be strong for more space,We expect larger homes outside of the city centre will see the strongest demand.

🏢Downtown condo prices will fall in early 2021 🏢
University students learning remotely, the lack of immigration, and the crack-down on Airbnb will continue to weigh on condo prices. With home values surging, condominiums will also be the only option for priced out first-time homebuyers

👫Changes in first-time home buyer incentive 👫
The government of canada is expanding it’s first time home buyer incentive by raising the income threshold from $120,000 to $150,000. The changes mean that the maximum home price for eligible first-time home buyers goes from $505,000 to approximately $722,000

That is it from me, Feel free to reach out to me if you have any questions about mortgages

12/25/2020

2020 wasn’t as expected but 2021 is going to awesome and wholesome.

Take time with you family to rejuvenate, revitalize and reenergize.

In case, you are want to make your next year merrier by buying a new house. Let’s sit down during the holidays to discuss. Call or dm me.

12/21/2020

The age of your credit history generally accounts for 15% of your total credit scores.

A longer history shows you have more experience using credit, while a short credit history shows you have less experience.

In theory, the longer your credit history, the more accurate lenders can be in determining the level of risk they take on when lending to you.

Therefore, we suggest not to cancel your older credit cards, instead just make one transaction per month and pay your bills on time to continue building credit history.
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Before securing your mortgage, be sure to do your research! Drop an emoji below if you found these tips useful!

12/16/2020

If you’re an aspiring first-time home buyer in Canada, you’ve may have heard about the first-time home buyer incentive program.

While the incentive is an interesting program that offers a lot to people in the right situation, it has qualification conditions that limit how useful it can be. This post has everything you need to know to understand whether you can benefit from the incentive.