WELCOME TO REAL ESTATE FOUNDATIONS

FUNDAMENTALS FOR THE FUTURE

Real estate

ABOUT US

SYAN SINGH

Competitive squash player (Canada #1)

Assistant Property Administrator at Equity Builders Inc.

Passionate about real estate investing

Aspire to provide real estate literacy for Canadian youth

Advocate for affordable housing

RAYA SINGH

Competitive squash player

Assistant Property Administrator at Equity Builders Inc.

Successful social media influencer in health and nutrition

Passionate about educating youth on financial literacy and real estate knowledge

Mortgage

Mortgage concept

“The best investment on Earth is earth.”


Louis Glickman

WHAT IS A MORTGAGE?

You need a mortgage when you have some but not all of the money to buy a property. Most people who buy a house will need a mortgage. A mortgage is an agreement between you and a bank. The person borrowing the money is referred to as the “Borrower.” The person lending the money (the bank) is called the “Lender.” If your home is worth $100,000, a bank will usually give you a loan for 80% of the value of the home ($100,000 x 80% = $80,000) and you will need to pay the balance ($100,000 - $80,000 = $20,000).


HOW DOES A MORTGAGE WORK?

The lender gives a set amount of money to buy the home. You agree to pay back the money – with interest – over several years. If you do not repay your loan, the lender can sell your home and use the money.


HOW MUCH MORTGAGE CAN I GET?

If your home is worth $100,000, a bank will usually give you a loan for 80% of the value of the home ($100,000 x 80% = $80,000) and you will need to pay the balance ($100,000 - $80,000 = $20,000).


HOW DO I GET A MORTGAGE?

Getting a mortgage is easy if you have a regular job, a good amount of income from the job, and a good credit score.

CREDIT SCORE

Credit score report

WHAT IS A CREDIT SCORE?

A credit score is a three-digit number ranging from 300-850, which shows how likely you are to pay your bills on time. It is like a report card for how well you manage your money. Lenders use this score to decide whether to give you money. The higher the score, the more likely you will be approved for a loan. A good credit score gives you opportunities to borrow.

HOW TO START BUILDING YOUR CREDIT SCORE AS A TEENAGER

Historically, building credit as a teenager is difficult as you cannot apply for loans or credit cards until you reach 18. However, the market has realized a need to serve teenagers, and many banks will issue secured credit cards. A secure credit card is like a traditional credit card, but an upfront security deposit is required. For example, if you want a $500 spending limit on your credit card, the bank wil hold a $500 deposit for the entire time you have the card. This protects the bank if you use the card and do not pay it. Your credit score decreases if you do not make the monthly payment on time. Making payments on time increases your credit score.

Credit Score Concept on Laptop

INTEREST & TIMING

TIMING OF MORTGAGE

The mortgage amortization is the length of time it will take you to pay off the loan. The most common mortgage amortizations are 25 and 30 years. The mortgage term is for how long the interest rate on your loan is fixed. The most common mortgage term is five years. This means that the bank will change the interest rate they charge every five years.

percentage sign percent symbol percentile icon interest rate silver 3d sale discount label
buying a house

INTEREST RATES

The higher the interest rate, the higher the mortgage payment.


FREQUENCY OF PAYMENTS

The most common payment frequency is monthly payments.

Gray Concrete Building

WHY REAL ESTATE

"Real estate investing, even on a very small scale, remains a tried and true means of building an individual's cash flow and wealth."


Robert Kiyosaki

Tangible Asset:

Stocks, for example, are intangible assets. All you have to show for your investment is a piece of paper. If the stock market crashes, it could be worthless. Real estate is a tangible asset. Although there is never any guarantee your real estate will increase in value, the land is worth something even if the house burnt down. The chances of your real estate investment going to zero is not likely.


Values typically increase over time:

Even if there is a real estate market crash, the values will go up over time. This is because everyone needs a roof over their heads, so homes will always have value.


It does not need a lot of money:

In other investments, you need $100 of your own money to invest $100. However, in real estate, you only need about $20 of your own money to be able to invest $100 as the bank will give you a $80 loan.

contact US for more information:

Photography of City Buildings

Syan Singh

syansingh2@gmail.com

Raya Singh

rayasingh05@gmail.com