18 September 2019

“It’s much more difficult today with the existing stress test,” – says Nick Kyprianou, president and CEO of Mortgage Investment Corporation. “The problem is qualifying again, but already with a single salary. The stress test makes this challenge a lot harder”.

Extra costs may include a new home appraisal, application fee, discharge fees. In case you have a five-year mortgage and it’s been only two years that you have it, you will face certain penalties.

Boutet also explains how the law works when one spouse is the mortgage holder and the other is not.

“Let’s assume she is the mortgage holder, and he moves in, paying a certain sum each month, which could be put towards mortgage payments, but still remains below the standard market rent. So, basically, she’s providing him with some kind of a financial break”, – she said. “Will his part of the payments go towards a little equity in the property, as he helps with paying the mortgage? Or is he already benefitting from the situation, as he’s been paying much less than he would have in case of a usual rent? In this case, the couple decided that he will be given a percentage of his payment as compensation for helping her with mortgage, and he will not have any rights for this property”.

Boutet insists that couples who live together and only one of them is a mortgage holder should discuss the question of payments as soon as possible, as people may not understand where their payments will go.

“Sometimes the partner who pays the rent has a false understanding, thinking the payments go towards the mortgage.”