When it comes to Mortgages, Think Outside the Branch

Mortgage brokers are trained professionals licenced to represent and give you the best advice for your home loan.  Mortgage brokers are experts in locating funding for your home financing and finding the best rates.

Mortgage brokers are critical members of your real estate team.  Good brokers can save you thousands of dollars in mortgage costs and make the application process simple.  A skilled mortgage broker can be the difference between getting approved or declined by a lender.

Mortgage brokers are paid by the lender, so there is no cost to you!  If you require a private lender, however, you will be charged a fee since private lenders do not pay the mortgage broker.  In this case, you will be made aware of the fee upfront.

Talking to a mortgage broker and getting a pre-approval should be your first step in the home buying process.  A pre-approval will allow you to understand how much you qualify for so that you can look for homes in that range.

Mortgage brokers have access to numerous lenders including both public and private sources.  Different lenders provide different financing products, some of which are not available at most banks and conventional sources.  Brokers will get you the best deal for your situation.

Mortgage brokers have connections with lenders and brokers and thorough knowledge of interest rates. They know which homes attract favourable interest rates from certain institutions but higher rates at others. They keep current on changing interest rates and know which lenders to approach.

The amount that you think you can afford and the amount that a lender thinks you can afford might not always match.  Lenders compare your pre-tax monthly income with the monthly mortgage payment and other fees.  They also consider your credit score and any outstanding loans including vehicle loans, credit card balances, etc.  Getting a pre-approval is a great way to understand what purchase price you can afford.

The minimum down payment is 5% of the purchase price.  Lenders will need to see where your down payment is coming from through a 90-day history of accounts, a gift letter, or a paper trail.  While it is possible to qualify for a mortgage without a down payment, specific conditions must be met.

A pre-approval is a basic application that determines the purchase price of a home that you can afford.  Once you have a pre-approval, you can begin house hunting with a budget in mind.  You also don’t have to worry about a spike in interest rates since the pre-approval gives you a guaranteed interest rate for up to 120 days.

Applying online is very secure.  If you are not comfortable providing specific information such as Social Insurance Numbers or other details online, you can leave that information blank and I will get those details from you later.

Yes, it is possible to get money for renovations if you plan on doing renovations in your new home.  This is called purchase plus improvement, and it requires quotes for the work, and you will have to pay for the renovations up front.  Once they are completed, the bank will release the funds to you.

Mortgage default insurance is a requirement for all homeowners who put less than 20% down for a down payment.  The smaller the down payment, the larger percentage the insurer will charge.  Default insurance is often referred to as CMHC insurance, although three companies in Canada offer this insurance.

You are not obligated to have life and disability insurance to have a mortgage, although we do recommend it.  Mortgage payments are major financial obligations and insurance is there to help protect yourself and your family if death or accidents occur.