Online survey conducted on 2000 people over a span of less than 10 days gave a revealing study of Canadians. It says that they buy their house at the age of 29 years on an average. On a property of $300,000 they make a down payment of approx. $48,000.
Geographic location of Canada:
In Canada, people spend very less time at their home and hence their budget depends upon that. Initially on the first mortgage calculator, they spend around $202,000. This budget varies from place to place .The figures are varied in other parts of Canada. It is $224,000 in Quebec, while it is $326,000-$426,000 in Ontario, British Columbia and Alberta. Prairies are too cheap to be covered under the survey for mortgage. Vancouver stands on the top with $443,000 and Toronto is placed on the second position with a figure of $347,000 for mortgage. The best part is that they made an advance preparation for buying their home. Obviously, it is not possible for them to accumulate such a big savings at a younger stage, so most of them ask for financial help from their parents. Here comes the Mortgage Calculator.
Varied payoff rates for the buyers:
According to a survey, 46% of them opt for fixed rate mortgage while 20% of the respondents apply for variable mortgage rate. People want to become free of the mortgage covers before the given time duration and hence 20% of them opt for the variable rates. 23% of the youngsters go for mortgages before 25 years of age while an amazing figure in the survey says that 16% of the residents have it between 20-24 years of age. On an online survey, 3% of the Canadians report that they can pay their balance within 10 years, while 31% are not sure about it.
Eligibility Criteria for mortgage:
Income, Credit Score and affordability are some of the determining factors. Loan to Value is equivalent to amount of mortgage loan on the property value to be purchased. While Total debt service is a share of gross annual payment required to cover the mortgage payments.
Total Debt Service = (Home Expenses + Car loans +Debts of Credit Cards +Other pending loans/Total Income)
In Income and credit score, bad credit plays a negative role in determining your mortgage payments.
Hence, it would be better if the investor finishes with his previous loans and then thinks to apply for a new one because adding more burdens can give him a risk of health ailments.