If you’re married, your spouse’s credit score or debts could hurt your chance to qualify for a mortgage loan. If you’re divorced, the payments you make each month for alimony could reduce the amount of mortgage money a lender will give you.

Should you take advantage of low interest rates?

Low interest rates might not be great for savers, but they’re great for anyone paying off debt. They can also be beneficial if you’re looking to borrow, especially for major purchases like buying a house.

Can I add my spouse to my mortgage without refinancing?

Adding a co-borrower to a mortgage loan isn’t as simple as calling your mortgage company and making a request, and you can’t add a co-borrower without refinancing the mortgage. With a refinance, you can add someone’s name to the mortgage, as well as take someone’s name off the mortgage.

What are the benefits of low interest rates?

Last week, the Bank of Canada reduced the overnight rate by 50 basis points, to 1.25 per cent, and announced another surprise 50-basis-point cut on Friday. Low interest rates can mean good news for taxpayers. Here are five ways you might benefit as interest rates decline. 1. Loans to your spouse

What are the advantages and disadvantages of adjustable interest rates?

If interest rates decrease, lenders have the advantage by making more money from their customers with higher-interest rate loans. Mortgage loans with an adjustable interest rate often help would-be homeowners buy a house and begin repaying their loan at a lower interest rate.

What happens if you charge your spouse 2 per cent interest?

If you charge your spouse the prescribed rate of interest on the loan, then the attribution rules (which can cause you, and not your spouse, to pay tax on any income on the loaned funds) won’t apply. The prescribed rate is currently just 2 per cent – which you can lock in indefinitely on the loan.

Is it better to pay Hoa or lower interest rate?

HOA fees may be lower on a slightly higher-priced home, especially if fewer services are offered. In low-interest-rate environments, HOA payments can present an excessive monthly burden, so make sure that these payments are factored into your monthly budget.