Real Estate Quotes
A slightly lower mortgage rate may come with restrictions like stiffer mortgage penalties, limited prepayment privileges and shorter closing times (some lenders offer a lower rate when your mortgage closes in 30 to 45 days). In some cases, it can actually make sense to choose a mortgage with a slightly higher rate (e.g., 0.10% to 0.20% higher than the lowest available rate). [2017] - Sean Cooper
In Canada, mortgage penalties depend on the type of mortgage. If you have a variable-rate mortgage, you'll pay three months' interest, but if you have a fixed-rate mortgage, you'll pay the greater of three months' interest or something called the interest rate differential (IRD). Ask how the IRD is calculated. Is it based on the posted or the discounted rate? If it's based on the lender's inflated posted rate, consider this carefully before signing up. Your mortgage penalty could add up to thousands of dollars. To reduce the mortgage penalty, prepay as much of the mortgage as you can before breaking it. [2017] - Sean Cooper
If you'd like to pay down your mortgage sooner rather than later, prepayment privileges are a must. Banks are pretty flexible with payment privileges. Most let you prepay, each year, between 10% and 20% of your original mortgage balance as a lump sum. This is only one prepayment option. Others include increasing your payment and doubling your payment. [2017] - Sean Cooper
If you believe interest rates are going up, you may be better off with a fixed-rate mortgage. If you're planning to pay down your mortgage in five years of less, a variable-rate mortgage may make the most sense, but if it will take you longer, a fixed-rate mortgage is worth considering. [2017] - Sean Cooper
It's the accelerate alternatives that save you the big bucks. When you pay weekly (52 payments per year) or biweekly (26 payments per year) instead of monthly (12 payments per year), the interest savings are minimal. With accelerated weekly (52 payments per year) and biweekly (26 payments per year), you're paying the equivalent of an extra month's payment every year. [2017] - Sean Cooper
Make lump-sum payments whenever you can afford to (most lenders let you do this on one of your regular payment dates during each year of the mortgage term) by tossing "found" money--tax refunds, bonuses, cash gifts--at your mortgage. Lump-sum payments go straight toward principal, saving thousands of dollars in interest and shaving years off your mortgage amortization. By shortening your amortization period, your mortgage payment will be higher, but you can save a ton in interest. Round up your mortgage payments to the closet $25 payment increment, so you're paying a few extra dollars a month toward your mortgage. [2017] - Sean Cooper
By increasing your mortgage payment as if rates are 2% or 3% higher then they are, not only will you pay your mortgage off sooner, you'll be prepared if mortgage rates are higher when your mortgage comes up for renewal. [2017] - Sean Cooper
How I Paid off My Mortgage in Just Three Years: When I bought my house, I signed up for a five-year fixed-rate mortgage at 3.04% with the help of a mortgage broker. I went with a longer amortization period (30 years) to give myself more of a safety net in case I had a financial emergency. I took advantage of all the prepayment privileges my lender offered--I paid my mortgage accelerated weekly, doubled up payments, made lump-sum payments with freelance and rental income and increased my payments yearly. I maximized my prepayment privileges every single year, until I had paid off my mortgage just over three years later. [2017] - Sean Cooper
When you receive your lender's renewal offer, whatever you do, don't sign it! Lenders almost never put their best rate on the renewal. Sometimes you'll get a lower mortgage rate simply by phoning your lender and asking for one. A lower mortgage rate could mean saving thousands of dollars in interest over the life or your mortgage. Your mortgage renewal is too important to leave until the last minute. Start shopping early--four to six months ahead of when your mortgage term ends. This gives you plenty of time to see what else is out there. [2017] - Sean Cooper
It's worthwhile to get an inspection done when buying a condo--new or resale. Hire an inspector familiar with condos. An inspection will typically cover the major components of your condo, including electrical, HVAC, plumbing and the common elements. You can find lists of inspector on industry websites, including the Canadian Association of Home and Property Inspectors (cahpi.ca). You might think twice before taking a recommendation for an inspector from your agent. Select a home inspector before housing hunting. Interview at least three inspectors. Choose one, and have another as backup in case your first choice is busy when you see a property you like and are ready to make an offer. [2017] - Sean Cooper
It's a good idea to start looking for a lawyer before you start housing hunting. Seek out lawyers who specialize in real estate. Interview two to three lawyers. [2017] - Sean Cooper
As a homeowner, through creative living arrangements like living in your home's basement and renting out the upstairs, or sharing your condo with roommates, you can pay down your mortgage even sooner. [2017] - Sean Cooper
Resilient channels and Roxul insulation can help dramatically cut down on ambient noise, but they don't come cheap. Twenty dollars' worth of door sweeps and form tape, though, will go a long way toward reducing it Install on the interior doors separating the basement and upstairs. These alone won't cut all the noise, but you'll be less likely to hear others' conversations and be able to enjoy some well-deserved peace and quiet. [2017] - Sean Cooper
I've had better success finding tenants on paid rental websites. Screen applicants from free websites extra carefully. Other places and ways to advertise include libraries, community centres, grocery stores, newspapers, Facebook and word of mouth. [2017] - Sean Cooper
If you don't own a car, rent out your parking place at your condo (just make sure you aren't breaking any rules). [2017] - Sean Cooper
95% of the units I've purchased have been foreclosures that belonged to landlords who failed and lost their properties to the bank. [2015] - Brandon Turner
House flipping and real estate wholesaling are "jobs." Owning rentals is an investment (hopefully!) [2015] - Brandon Turner
If you are looking to grow your net worth exponentially, consider keeping your job or finding another way to make income. Your business should bring in at least 3X of your current job before thinking of quitting your job. 1X for tax, 1X to survive, and 1X for reinvestment and unexpected events. [2015] - Brandon Turner
How to Make $1,000,000 Through Rental Properties: Buy incredible rental properties, save the cash flow, and reinvest that cash flow into even more properties. This is not a get-rich-quick plan. It plays out over seven to ten years--maybe more, maybe less. This plan works based on ideal numbers. For example, I use a nice, round "3% appreciation" number, because that has been the U.S. historical average. [2015] - Brandon Turner
Buying Standard Example: 1. Multifamily property. 2. Cash flows of $200 per unit, per month after all expenses have been paid. 3. Property must be purchasable for a discount (at 80% of what it's normally worth). 4. Property's value must be capable of being improved by 10% during the first year through "forced appreciation" (such as a paint job and landscaping). 5. Property must appreciate at 3% per year after year one. [2015] - Brandon Turner