On a frigid morning in June, the head of Canada’s housing agency is sitting on a white board in his office, trying to persuade a client to sell her house.
The buyer, a lawyer with a family of five, was desperate for cash to pay off her mortgage.
The agent said she could borrow $300,000 from the bank for a $300-a-month down payment.
“You are in a situation where you have the option to buy a house and you have to sell your house and then you are not sure where you are going to live, ” she said.
The lawyer is convinced that the property she wants is the right deal.
She is in good shape financially, and she is a hard worker, she said, and can afford to pay the mortgage.
But she is also scared.
“I don’t want to put my family through this,” she said of her decision to sell.
It is an unsettling prospect for a number of people who are facing tough choices when it comes to buying a home.
It’s not unusual for people to take on new mortgages at lower interest rates, especially those who have been in a downward spiral.
The Bank of Canada, which is the federal regulator for home loans, has made it easier for borrowers to take out new loans in the last few years, and it has encouraged people to refinance mortgages at a lower rate.
But there are many people who have not yet had that opportunity, or who will soon.
The cost of a mortgage can be so high that it can be difficult to sell at all, said Michael Hargreaves, a former Toronto real estate broker who is now managing director of the Toronto Real Estate Board.
“It’s like a no-brainer that you can’t go through,” he said.
“There’s not a lot of information out there about mortgages.”
The number of new mortgages has fallen dramatically since 2008, when the financial crisis hit the country.
But that doesn’t mean lenders are slowing down, said Kevin Macdonald, a real estate analyst with the Toronto-Dominion Bank.
A typical home sale in Canada today is a $3-million loan.
In 2012, a typical sale for a single-family home in Toronto was $7-million.
In recent years, however, those figures have been falling, said Mr. Macdonald.
“In the past, when we were going to sell houses we would have a pretty big margin,” he explained.
Homebuyers and sellers often take on the higher mortgage to make the purchase. “
So, you can go into a house, you are pretty much looking at a $100,000 down payment and a $2,000 mortgage payment.”
Homebuyers and sellers often take on the higher mortgage to make the purchase.
In Ontario, the average interest rate on a 10-year home mortgage is 2.6 per cent, and that’s up from a low of 1.4 per cent in the late 1990s.
But those rates have been declining, and borrowers have been able to refile them at lower rates.
In Alberta, homebuyers are also able to renegotiate their mortgages.
If the lender gives a new home buyer a lower mortgage than the one they originally offered, the buyer can renegotiate the loan, said David Johnson, a professor at the University of Alberta’s School of Business.
“If the borrower says no, the lender can take the $300 out of the purchase price and refinance it, and then they have to pay $600,” he added.
A higher mortgage typically means lower down payments, which can mean higher monthly payments.
If a borrower has more than $1,000 in debt, they can make monthly payments on their mortgage, but that may not be enough to meet the mortgage’s monthly payment.
Many lenders also have higher interest rates than banks, which means they charge higher interest than banks.
That means people with less than $30,000 on their mortgages face higher costs.
But many people with high-paying jobs will find that the rates are lower than banks that are not.
It may seem unfair that people with better-paying careers pay more for a house than people with lesser-paying ones, said Andrew Mathers, president of the Real Estate Institute of Canada.
“But if you look at it, you would have to look at the numbers for a lot more people to come to the conclusion that they should pay more,” he continued.
A home is not the only investment property.
Some borrowers may be able to purchase a mortgage-backed security, which holds the mortgage against the home and makes it less risky.
A $500,000 home may be a safe investment, especially if the borrower is able to buy the property with the down payment reduced, said Scott Waugh, the vice-president of commercial real estate at Cushman & Sun.
The company is a buyer of properties for clients including large Canadian banks and big-box retailers, and has a