Marital Breakdown? What can I do with my mortgage?

If Marital Breakdown is looming what happens to the mortgage? Can you keep the house? Can you refinance your mortgage without the other party?

There is so much to consider when dealing with a divorce so if you don’t feel like reading and just want to talk, or you are just reading for the sake of research as an Alberta Mortgage Broker I would be more than happy to talk or text through your troubles.  If you just want to know my thoughts and some facts, just keep on reading.

You don’t have the 15% to refinance with the new rules, or your spouse wants to be paid out, or maybe they are threatening a lien on the house.   There is hope after all.   CMHC has some unwritten rules when it comes to this, and knowing a Calgary Mortgage Broker who speaks with them all the time can save you time, stress, and pressure.

CMHC has a program where they will under certain circumstances take your loan back up to 95% Loan to Value (LTV). The main advantage of this new possibility is that you will not be mandatory to come up with 15% equity to refinance.  You can buy out your spouse with the difference, or you may be able to use and option to receive a ‘gift’ of 5% of the value of the home.  This comes from your ex-spouse which acts as your new down payment. This does have its advantageous for payout of joint debt or paying off high interest rate credit cards, and will make the separation easier to handle and hopefully keeping your credit rating intact as possible.

• You must have good credit
• There must already be a finalized Separation Agreement in place.
• Gift letter for the 5% gifted equity by the spouse who is leaving the home
• A statutory declaration must be signed 

 

If you are looking to refinance your mortgage due to a marriage breakdown and are still not sure what to do give me a call or text.  Being a trusted Alberta Mortgage Broker is not always about the best mortgage rates, its about helping people stay in their home.

Finding that down payment, before the rules change again?

Balancing “today you” and “future you” is something we all think about.  Weather its letting the chores pile up so that your “future you” can do it so that “today you” can watch TV is a form of procrastination that many comedies poke fun of.  However saving for a mortgage down payment is no laughing matter.  It’s increasingly hard to do when the rules are changing all the time.      How does one look at creating a nest egg, while increasing its value, and flexibly without having to sacrifice today?  But you want into that home mortgage as soon as possible right?  

There are some tips from a Calgary Mortgage Broker to help you with that.

You can save inside a RSP for a Home buyers plan redemption, or a Tax Free Savings Account, and invest in just a savings account to GIC’s Bonds, mutual funds or even stocks.  Each has different time horizons, and risks.

I do think that the HBP is a great way to save for the purchase of a new home and putting the tax refund towards to the down payment sure does work too.   Before you consider not replacing the money taken out consider that in most cases normal Canadians will need some extra income when they are older for retirement.  However on each side of the spectrum the wealthy do not want more income at their regular tax bracket and the very poor do not want the income as it would bump up their rent or assistance they are getting.

Regardless you should wait 90 days before you plan to withdrawal your funds as this will leave you in a enhanced situation to control if you will be able to have enough money to refill your RRSP. This provides you with flexibility.    The total withdrawals do have to be back into your RRSP each year for 15 years.  Some decided to do this quickly and some decide to take the tax hit every year and don’t replace them.  

Starting up a monthly contribution to replace or to start the nest egg is key to flexibility as you will not notice a small amount being taken off your paycheque. When you do your taxes it is nice to receive a tax refund for any amounts you contribute above the minimum you have to repay or you saved up over the year.   Many do a Investment loan as well more than 90 days out, this if done a the right time of year will also net you a big rebate back.  Even more so if it bumps you down a tax bracket.

If you need some help with investing, planning, or figuring out a plan to get you into the lowest rate mortgage, give a Calgary Mortgage Broker a call, and get some free advice.