It takes more than a realtor to buy a home

http://www.nikkibroker.com/mortgage-news.html

It takes more than a realtor to buy a home

By Genworth Financial Canada

Buying a home is a somewhat complicated transaction that involves a number of professionals who all perform different functions during the purchase process.

REALTOR® – A realtor will locate houses in your price range and in the areas where you want to live. The realtor will present your “offer to purchase” to the seller until an agreement is reached, usually for a commission. There are a number of realtors to choose from, so it’s advisable to shop around to find one you’re comfortable with. Talk to friends and family to get a referral.


Mortgage Broker – Some purchasers retain the services of a mortgage broker to assist them with arranging their mortgage financing. The mortgage broker should determine the best type of financing that suits your particular financial situation.

Lenders – Banks, credit unions and mortgage companies all lend money to homebuyers. Find out how much you can afford before starting to look. Lenders look at your income, debts, employment and credit histories and the value of the property you want to buy before giving you a mortgage. It pays to know how much you can afford before looking, so consider getting pre-approved. You don’t want to find your dream home and then discover you can’t buy it because it is too expensive.

Lawyer – Your lawyer (notary in Quebec) reviews the agreement of purchase and sale, ensures all closing documents, including title search and title insurance, have been completed properly, obtains signatures and records...............[read more]

Now CMHC has decided it is going to let Canadians buy investment properties with no down payment.

You have to wonder what David Dodge will be thinking this time. Just over a year ago, the Bank of Canada governor met with Canada Mortgage and Housing Corp. because of his fears exotic mortgages were juicing an already robust Canadian housing market. Now CMHC has decided it is going to let Canadians buy investment properties with no down payment.

The Crown corporation, which controls about 70% of the mortgage insurance market in Canada, has quietly introduced changes that lower the down-payment threshold for an investment property. Instead of needing 15% down, Canadians will be able to buy a second property -- not to mention a third and fourth and fifth -- with no money down.

"These enhancements will ensure continued supply of affordable rental accommodations across Canada," said Pierre Serre, vice-president of insurance products with CMHC.

Investment Clubs

One of the key principles of investing is the concept of diversification.  That is one of the main benefits of most mutual funds that are available to Canadian investors.  With that concept in mind we can quickly discuss the benefits of joining an investment club.  An investment club is great if all parties that come to the table are able to contribute and spread their individual knowledge and/or research.  An investment club could also be a great sounding board to bounce your investment ideas off of.

 

Do a search on Google for investment clubs and see what they may have to offer you on your goal to financial freedom.