Home buyers resources
Frequently asked question
- Why use a mortgage
consultant rather than a bank?
- Are there any fees involved with a mortgage consultant?
- Should I wait for my mortgage to mature?
- What is mortgage loan
insurance?
- What is a conventional
mortgage?
- What is a high-ratio
mortgage?
- What can I use for a
down payment?
- What is the minimum down
payment needed to buy a home?
- How much can I afford
to pay for a home?
- How does bankruptcy affect
my ability to qualify for a mortgage?
Why use a mortgage consultant
rather than a bank?
When dealing with a bank, you are limited to their product
line, which may not be the best product for you. But they
won't tell you that, because it's their job to sell you their
products.
Mortgage consultants can provide you with a wider range of
mortgages designed to suit your needs, and you can benefit
from comparisons of different lenders selected who best fit
your requirements. As your broker, I look after YOU and your
best interests.
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Are there any fees involved
with a mortgage consultant?
In most instances, there are no fees involved. Mortgage
consultants receive a commission from the lending institution
that received and funded your mortgage application. If you
do not qualify normally due to bad credit, job instability
or other unseen factors there may be a brokerage fee, but
it will be disclosed to you prior to proceeding.
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Q. Should I wait for my mortgage to mature?
A. No. Allow us to to begin shopping around for an interest
rate at least 120 days before your mortgage matures. Lenders
will often guarantee you an interest rate as much as 120 days
before your mortgage matures. This means a rate promised well
in advance of your maturity date, which eliminates any worries
about higher rates and if rates drop before the actual maturity
date, the lender will adjust your interest rate to the lowest
it has been during the 120 days since the application was
submitted. To sign up for our renewal alert, click here.
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Q. What is mortgage loan insurance?
A. Mortgage loan insurance is provided by Canada Mortgage
and Housing Corporation (CMHC), a crown corporation, and Genworth,
an approved private corporation. This insurance is required
by law to ensure lenders against defaults on mortgages with
a loan to value ration of more than 75%. The insurance premiums,
ranging from .50% to 2.75% are paid by the borrower and can
be added directly into the mortgage amount. This is not the
same as mortgage life insurance.
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Q. How much do I need for a deposit?
A. In most cases:
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