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Your mortgage must also be eligible for mortgage insurance through Canada Guaranty, CMHC or Sagen (previously known as Genworth.) . The mortgage insurance premium is based on the loan-to-value ratio of the first mortgage only. These can include: Additional legalfees- Since you will be closing on two mortgages, your fees may increase.
When they ultimately sell, the gain may extend beyond the federal tax law’s maximum exclusion amounts on capital gains of $250,000 for single filers and $500,000 for married couples. Understanding the Capital Gains Problem Many homeowners who purchased their homes long ago have seen huge gains in the value of their residences.
Expense Projections : Operating costs like property taxes, insurance, utilities, maintenance, and management fees are then subtracted to derive Net Operating Income (NOI). For example, property taxes might rise after a sale, or insurance premiums could spike in areas prone to natural disasters.
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