December 14, 2015 –The stand of Pavilion Condo was a hub of activity this fall during the Montreal ExpoHabitation. The event, which took place in the Olympic Stadium October 22 to 25, 2015 once again offered lectures whose relevancy was undeniable.
The representatives of Canada Mortgage and Housing Corporation (CMHC) were amongst the guest speakers. They explained how to calculate one’s capacity to contract a hypothecary loan. Before approaching a financial institution to get such loans, potential buyers are increasingly well informed and prepared, says CMHC.
This being said, knowing its credit worthiness requires a sound analysis, and taking into account other borrowings that relate to personal property, the car loan or any other type of loan, the cost of renting a vehicle and credit cards debts.
Furthermore, those who do not have on hand an initial down payment (20%) to borrow, may under certain conditions, prevail themselves of hypothecary loan insurance offered by CMHC. The buyer shall, however, provide a contribution of at least 5% of the purchase price of a property.
However, be aware that loan insurance is not disability insurance. It will cover the lender if the borrower cannot repay the loan, for example in the case of job loss, "says Lyne Leduc, adding that CMHC provides access to an application to calculate the hypothecary borrowing capacity. This tool can be very useful for a better understanding of this issue.
The next edition of Condoliaison magazine offers a more comprehensive article on the subject. It will be available in January 2016.
