How to use your RRSP’S to BUY NOW!
Calgary
is definitely a buyers market as we all know and have heard many times. So why aren’t people buying? We have all been complaining on how we didn’t buy more properties a couple years ago when the prices were so great. Well now that time has come again but yet there aren’t many are buying. I know that a lot has to do with fear of what is happening in the States and most believe prices will drop much more, but for many I believe the problem starts with not having the down payment. If you are a first time home buyer now is a great time to get into your first home. One way of doing that is using your registered retirement savings plan (RRSP) before they are worth even less. You can use up to $20,000 if you qualify as a first time home buyer. That is at least a 5% down payment on a great property here in
Calgary. Interest rates are low right now which could make your monthly costs cheaper to be in your own home then renting somewhere else. Not to mention with so many properties on the market you can negotiate better terms and lower prices. Read more
Hard Money Loans now more Popular
With the major banks making it harder to get access to capital, Hard Money Loans might just become the way to go. This may be a new term for many Calgarians, but all it really means is quick and easier money at higher interest rates. Like any mortgage or loan now a days, it is secured against your home. This is generally not for a long term solution but can be a great tool to get money quickly.
The main advantages of a Hard Money Loan are that it is quicker and very easy to qualify for. They don’t really look at your credit or job but they look at the value and the amount of equity you have in your home. Equity is the value of your home minus any mortgage you have left on the property. You can sometimes get access to money within 24 hours. The main disadvantages are that it is a little more expensive. Usually it is 2-5 % set up fee and then depending on your terms you are looking from 9% - 19% a month. Many who won’t look at the option of a Hard Money Loan because of they typically higher interest rates. If you are using this for investment purposes then you just have to calculate what your Rate of Return is and then see if it is worth paying for it. If using the private financing will allow you to make $50,000 and it costs you $10,000 is it still worth using?
To gain access to Hard Money there are many companies and people willing to lend it to you. You can always “Google” it, but be careful of those out there that are not always trust worthy. If you are looking for companies that are reputable and offer great service, feel free to contact me.
Calgary Mortgage Brokers
The previous article covered items to be cautious with when working with Mortgage Professionals. Here are some helpful tips to look for in a local
Calgary Mortgage Broker.
Read more
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