Benefit of getting pre-approved before your purchase
Getting pre-approved allows you to determine how much you can comfortably afford to pay each month and what price range of home you can look at purchasing. Pre-approval gives the borrower protection for 120 days from any increase in interest rates while borrower is searching for a home. The bonus is, if the rate goes down the banks will generally give you the lower rate.
Can I use a gift of funds as a down payment?
Yes, a gift from family is an acceptable down payment. Donor will need to sign a gift letter that I will provide.
What is a Conventional Mortgage?
A conventional mortgage is when a borrower puts 20% or more of the purchase price down as a down payment. This mortgage does not require CMHC insurance.
What is a High Ratio Mortgage?
A High-Ratio mortgage is a mortgage required when a borrower’s down payment is less than 20% of the purchase price. These mortgages will require mortgage protection from an insurer. The current insurers in Canada are; Genworth, CMHC, and Canada Guarantee.
Variable vs. Fixed interest rate
With a variable mortgage the interest rate will change on a periodic basis during the term of the loan. This is typically based on the prime-lending rate set by the Bank of Canada.
Fixed rate mortgages provide security that the interest rate will not change throughout the term of the mortgage, but is set at a fixed rate at the beginning of the term.
How much does it cost for mortgage broker services
There is no fee for using a mortgage broker. The broker is paid a commission from the lenders once the mortgage is funded.
How a Mortgage Broker works.
As a mortgage specialist, I understand that shopping around for a mortgage that is best for you can be very time consuming and stressful.
As a broker I take your application and submit it to up to 40 different institutions. I attempt to match the individual with a mortgage and institution that best suits their current and future goals. Why limit yourself to one institutions offer???
Benefits for the client
Credit Check: Every time your credit is run, it has a negative impact on your credit rating. Most individuals limit themselves to a few institutions because every institution will run a credit check. I run one credit check and submit that to all the institutions, therefore, you get maximum exposure with only one credit check.
Rate holds: I am able to get an individual a rate hold up to 120 days in advance. What does this mean? It simply means that if you like the current interest rate I can get it for you today. I can hold it for you while you look for a home. If the rate goes down within the 120 days you will get the lower rate, and if the rate goes above that hold rate, you will be given the lower rate promised 120 days earlier. In addition, I can get rate holds from 12 to 18 months on new construction