Welcome to REMIC’s mortgage and life insurance education blog; your source for licensing tips, industry updates, and professional training insights
Co-Ownership of Real Property Property can be owned by an individual or by several individuals, referred to as co-ownership. Co-ownership occurs in one of two ways: by a tenancy in common or through a joint tenancy. Mortgage brokering in Ontario is...
The Direct Comparison Approach The direct comparison approach in determining the market value of a property is the most appropriate for mortgage financing and is therefore relied heavily upon in the appraisal report. This method uses the principle of...
The Financial Components of a Mortgage The basic premise behind every mortgage is the borrower’s promise to repay the amount borrowed. There are several components to a mortgage, as is illustrated in the Standard Charge Terms, but at its core a mortgage payment...
You might think that since the mortgage broker finds the borrower, the lender doesn’t have to pay the costs associated with obtaining that borrower, such as advertising and marketing, having branch offices, etc., and therefore dealing with mortgage brokers is more...
What is a high ratio mortgage? A high ratio mortgage is a mortgage that exceeds 80% loan to value. This refers to either a purchase where the purchaser has less than 20% for a down payment or, in a refinancing scenario, where there is less than 20% equity in the...
What is a Reverse Mortgage? A Reverse Mortgage is a type of interest accruing mortgage that is typically provided to seniors. The major provider of Reverse Mortgages in Ontario today is the Canadian Home Income Plan (CHIP). This organization provides...
What is loan to value (ltv)? The ltv is the amount of the loan, in dollars, in relation to the value of the property, in dollars, expressed as a percentage that is typically rounded off to two decimal places (unless it is an exact number). For example, if the...
Registered funds and mortgage investments Registered funds typically eligible for use in a mortgage investment are RRSPs, LIRAs, LIFs, RRIFs, RESPs and TFSAs. The benefits of using registered funds to invest is that the income generated will be tax...
Unlike a standard mortgage that places a charge on title, a collateral mortgage, which has been around for years but typically only used for secured lines of credit, is a promissory note with a lien on the property for the total amount registered. You can...
The purposes of using a mortgage There are traditionally four distinct purposes for using a mortgage: 1) Purchase, 2) Refinance 3) Equity take-outs, and 2) Bridge Financing Purchase People use mortgages to assist in purchasing a home in combination with a down...
What is a mortgage broker? A mortgage broker is a practicing professional who assesses a borrower’s financial goals with respect to real estate financing and, after detailed analysis, provides solutions to meet those goals by acting as an intermediary with the...
Choosing a mortgage brokerage Choosing a mortgage brokerage for whom to work can be a difficult process if you don’t know what questions to ask or what to look for. With several hundred brokerages licensed in Ontario, you certainly have choice, so the first tip...