What is Aging in Place?

Aging in place refers to living safely, comfortably, and independently in your home for as long as possible. It involves having access to necessary services, healthcare, and support to ensure security and comfort at home.

The Benefits of Aging in Place

More than 90% of Canadians dream of aging in place. Staying in your home allows you to remain rooted in your community and preserves the memories you’ve created. It also means maintaining independence without adhering to a structured mealtime or activity schedule. Being close to family and friends and continuing day-to-day activities that bring meaning and fulfillment can enrich your quality of life.  Here’s a quick overview of the benefits of aging in place:

• You don’t have to downsize your home or your possessions
• Enjoy the comfort and familiarity of your home and surroundings
• Maintain control over your daily schedule
• Keep your independence and privacy

Overcoming Challenges with the  Reverse Mortgage

Financial challenges, reduced mobility, and costly home modifications can make aging in place difficult. Fortunately, the  Reverse Mortgage can allow Canadian homeowners aged 55+ to access up to 55% of their home’s value in tax-free cash. You can receive funds as a lump sum, monthly, quarterly, or a combination, with no required payments until you move or sell your home.

How the Reverse Mortgage Supports Aging in Place

Here are three ways that funds received from the Reverse Mortgage can support you:

1. Home Improvements for Accessibility:  Enhance your home’s accessibility and safety, such as adjusting electrical switches or relocating the laundry room to the main floor.
2. At-Home Care: Hire cleaning services or in-home caregivers to ensure you receive the necessary assistance.
3. Support for Assisted Living: If a spouse or loved one needs to transition to assisted living, the Reverse Mortgage can provide financial support.

Buying a home is one of the most exciting ventures in life! To ensure it goes smoothly, you need to have a proper budget in place to protect your financial security and help you make the best decision for your future location. However, the cost of the home is not the only cost that you need to budget for! The temptation will always be to start looking at the very top of your budget but fees, such as mandatory closing costs, can easily put you over the top. Knowing the real numbers will make it that much easier to stay within your budget and maintain your financial comfort.

Closing costs are a one-time fee associated with the sale of a home and are separate from the mortgage insurance and down payment. Typically, these costs range from 1.5-4% of the purchase price, depending on your location. This means, for an $800,000 home, you would be looking to budget around $22,000 on average.

Here are a few closing costs to keep an eye out for:

• Land Transfer Tax: This is calculated as a percentage of the purchase price of your home, with the amount varying in each province. Some cities, such as Toronto, also have a municipal LTT.
• Legal Fees and Disbursements: You can expect to incur a minimum of $500 (plus GST/HST) on legal fees for the preparation and recording of official documents around your purchase.
• Title Insurance: Most lenders require title insurance to protect against losses in the event of a property ownership dispute. This is purchased through your lawyer/notary and is typically $300 or more.
• PST on CMHC Insurance: Though CMHC insurance itself is financed through the mortgage, PST on the insurance is typically paid at the lawyers and sometimes deducted from your advance.
• Home Inspection Fee: A home inspection is highly recommended as a condition of your Offer to Purchase to prevent any future surprises. This can cost around $500.
• Appraisal Fee: An appraisal is performed to certify the lender of the resale value of the home in the case you default on the mortgage. The cost is usually $400 – $600 but is typically covered by the lender.
• Property Insurance: Property insurance covers the cost of replacing your home and its contents, and must be in place on closing day. This is paid in monthly or annual premiums.
• Prepaid Utility Bills: You may need to reimburse the previous owner of your property for prepaid costs such as property taxes, utilities, and so forth.
• Property Taxes: Property taxes are due on an annual basis and are calculated as a percentage of the home value and vary by municipality. You also may need to reimburse the previous property owner if he/she has already paid property taxes for the full year.

Knowledge is power and understanding the hidden costs associated with purchasing a home can help you create a realistic budget and ensure you remain within your financial means. Contact a DLC Mortgage Expert if you have any questions about your current purchase process or if you are looking to buy a new home now or in the future!

Is your home in desperate need of an upgrade? Are you dying to renovate your bathroom, kitchen, or other space but not sure how to fund this renovation project? Did you find a home you’d like to buy but it needs work?

We’ve got good news! When it comes to covering the costs of renovating, there are some options available to you outside of some good ole savings!

Mortgage Refinancing

One option for funding a renovation could be through mortgage refinancing. Keep in mind, you’ll want to do this at the end of the mortgage term to avoid breaking your mortgage and owing penalties. Some mortgage products may allow you to refinance outside of that, but you will want to check with your mortgage professional. This is best suited to larger-scale renovations or remodels.

• Refinancing will allow you to borrow up to 80% of your home’s appraised value (less any outstanding mortgage balance).
• Refinancing your mortgage (if approved) will allow you to access funds immediately and tends to have lower interest rates than a standard credit card or personal loan.

Purchase Plus Improvements (PPI) Mortgage

If you haven’t yet bought that home, financing your renovation at the time of purchase with a purchase plus improvements mortgage can save you some hassle down the line. This type of mortgage is available to assist buyers with making simple upgrades, not conducting a major renovation where structural modifications are made.

• Simple renovations include paint, flooring, windows, a hot-water tank, a new furnace, kitchen updates, bathroom updates, a new roof, basement finishing, and more.
• Depending on whether you have a conventional or high-ratio mortgage, if it is insured or uninsurable, and which insurer you use, the Purchase Plus Improvements (PPI) product can allow you to borrow between 10% and 20% of the initial property value for renovations.

Financing Improvements Upon Purchase

Similarly to the PPI mortgage solution above, there is another option allowing you to finance your renovation project at the time of a new purchase by adding the estimated costs to your

mortgage with CMHC Mortgage Loan Insurance.

• You can obtain financing with only 5% down payment for both the purchase of your home and the renovations for up to 95% of the value after renovations!
• There are no additional fees or premiums and you can earn added rebates for energy-saving renos.

Line of Credit or Home Equity Loans

Lastly, you always have the option of utilizing a secured line of credit or home equity loan to pay for your renovation.

• Securing your renovation loan against the equity in your home can typically be up to 80% of the property value; accessible at any time. This will typically provide lower interest than non-secured financing and allows you to access funds at any time.

If you’re looking at doing a small or large renovation this year, make sure to reach out to your DLC Mortgage Expert before you start to ensure you’re making your money and mortgage work for you!

If you’re seeking a mortgage, but your application doesn’t fit into the box of the big traditional institutions, you’ll find yourself in what’s commonly referred to in the industry as the “Alternative-A” or “B” lending space.

These lenders come in three classifications:

• Alt A lenders consist of banks, trust companies, and monoline lenders. These are large institutional lenders that are regulated both provincially and federally but have products that may speak to consumers who require broader qualifying criteria to obtain a mortgage.
• MICs (Mortgage Investment Companies) are much like Alt A lenders but are organized following the Income Tax Act with an incorporated lending company consisting of a group of individual shareholder investors that pool money together to lend out on mortgages. These lenders follow individual qualifying lending criteria but tend to operate with an even broader qualifying regime.
• Private Lenders are typically individual investors who lend their funds but can sometimes also be a company formed specifically to lend money for mortgages that carry a higher risk of default relative to a borrower’s situation.  These types of lenders are generally unregulated and tend to cater to those with a higher risk profile.

Managing mortgage affordability in the alternative lending landscape requires careful consideration of several factors to ensure financial stability and avoid potential risks. Here are some strategies to help:

• Assess Your Financial Situation: Evaluate your income, expenses, debts, and savings to determine how much you can afford to borrow. Consider your credit score and history, as alternative lenders may have different requirements than traditional lenders.
• Research Alternative Lenders: Review the abovealternative lending options with help from your Dominion Lending Centres mortgage expert. Compare interest rates, fees, terms, and eligibility criteria to find the best fit for your financial needs and situation.
• Understand Loan Products and Terms: Familiarize yourself with different types of mortgage products offered by alternative lenders, such as adjustable-rate mortgages (ARMs), interest-only loans, and balloon mortgages. Pay attention to the terms of the loan, including the interest rate, loan duration, prepayment penalties, and any potential changes to the monthly payment.
• Calculate Affordability: Discuss with your mortgage broker to estimate your monthly mortgage payment based on the loan amount, interest rate, and term. Consider other homeownership costs, such as property taxes, homeowners insurance, private mortgage insurance (PMI), and maintenance expenses, when calculating affordability to ensure you do not over-extend.
• Budget and Plan for the Future: Create a budget that accounts for your mortgage payment and other housing-related expenses while leaving room for savings and unexpected costs. Plan for potential changes in your financial situation, such as job loss, salary changes, or interest rate increases, by building an emergency fund and having a contingency plan.
• Get Pre-Approved: Obtain pre-approval through your mortgage broker to determine how much you can borrow and demonstrate your seriousness as a buyer. Be prepared to provide documentation of your income, assets, debts, and credit history during the pre-approval process.
• Seek Professional Advice: Consult with a Dominion Lending Centres Mortgage Expert who can provide personalized guidance and help you navigate the alternative lending landscape.

By carefully managing mortgage affordability, whether within alternative lending or traditional, you can make informed decisions that support your homeownership goals while mitigating financial risks.

As we gear up for the approaching summer season, why not revitalize your outdoor area to bask in the warmth and embrace the sunshine? There’s a plethora of fantastic outdoor projects awaiting, whether it’s in your backyard or on your balcony, to elevate your space and maximize your enjoyment of the season.

Let’s explore some fresh ideas:

1. Introduce an Outdoor Rug: A simple yet effective trick! An outdoor rug effortlessly injects vibrancy into your space without the hassle of extensive renovations. It’s an economical choice that can remarkably enhance the ambiance.
2. Embrace a Fountain: Whether grandiose or petite, fountains add an enchanting touch to any outdoor setting. Beyond aesthetics, the gentle sound of flowing water promotes serenity, enhancing your relaxation experience.
3. Illuminate with String Lights: Transform your space with the whimsical allure of fairy lights. These versatile adornments, available in various designs and hues, are a budget-friendly way to infuse charm and create a captivating atmosphere.
4. Craft a Vertical Garden: Maximizing space is key, even in compact areas. Consider a vertical garden, featuring low-maintenance plants like succulents. With a bit of creativity, repurposed materials can yield stunning results, elevating your greenery game.
5. Adorn with a Trellis: Elevate your outdoor aesthetic with a trellis, adding architectural interest and serving as a focal point for your garden or seating enclave. It’s a simple yet impactful addition that can redefine your outdoor space.
6. Design a Garden Path: Establishing pathways enhances both functionality and aesthetics. Opt for materials like stone or gravel for easy upkeep, adding structure and a sense of seclusion to your outdoor retreat.
7. Furnish with Comfort in Mind: Transform your patio into a cozy haven with thoughtfully selected furniture pieces. From loungers to dining sets, each addition contributes to a welcoming atmosphere. Consider DIY options using wooden pallets for a personalized touch, accentuated with vibrant cushions for a pop of color.

Remember, regardless of the size or layout of your outdoor space, infusing it with your unique style can significantly elevate your enjoyment. Seize the opportunity to curate your personal oasis and savor the season to the fullest!