Week 11 Flashcards
What is the first step to take before entering the housing market?
Take a holistic approach to building wealth
What type of portfolio should you create before buying a home?
A balanced investment portfolio
How long has the Canada Mortgage and Housing Corporation (CMHC) been helping Canadians?
More than 70 years
What are the cornerstones of CMHC operations?
- Prudent risk management
- Strong corporate governance
- Transparency
What is a mortgage pre-approval?
A process where a lender evaluates your financial situation to determine how much they are willing to lend you
What should you provide to your lender or mortgage broker during the pre-approval process?
Financial information such as income, debts, and credit score
What is one of the first considerations during the mortgage pre-approval process?
How much you are spending now
What should you figure out regarding upfront costs?
Hidden costs
What should you understand about your budget as a homeowner?
How it will look as a homeowner
What terminology should you understand before getting pre-approved?
- Amortization
- Terms
- Variable/Fixed Rates
- Open/Closed Mortgage
What financial aspect should you know before applying for a mortgage?
Your credit score
What is mortgage insurance?
Insurance that protects the lender in case the borrower defaults on the loan
What does a Debt Service Calculator help you compare?
Monthly debt payments and housing expenses to gross household income
What does an Affordability Calculator estimate?
How much mortgage or rent you can afford
Where can you find ‘How to…’ videos related to real estate investing?
LinkedIn Learning via FOL
True or False: CMHC provides biased housing research and advice.
False
