FAQ

WHY USE A MORTGAGE BROKER?

Getting a mortgage is stressing, especially if you have no experience with such long-term commitments. More than that, knowing the market, your best options and having the time and the skills to negotiate the best rates can make a huge difference to the amount you get in the end. We can do all these on your behalf and consult our large network of lenders in order to get you the best deals. Over 40 banks and private lenders will compete against each other to win you as a client and this is only to your advantage. And the good news is that we will stay on your side at all times, including after you’ve received the money – to renegotiate rates later on, to apply for renewals, to hunt for the house of your dreams and to support you until you settle in.

AS A NON-RESIDENT, DO I QUALIFY FOR A MORTGAGE?

The answer is yes, you can access a mortgage even if you are a non-resident. Although with some banks it can be tricky to get the amount you need, mortgage brokers can work on your behalf and get you the best deals, even better than a bank can offer. You can get up to 80% of your property value, but each case is evaluated on an individual basis. All you need is proof of income, credit history from your country of residency and down payment.

I’M RETIRED. WILL MY PENSION BE CONSIDERED TOWARDS A MORTGAGE?

Yes, by all means you are entitled to applying for a mortgage and have the same rights as still employed people. Age discrimination is not accepted in Canada and the mortgage system doesn’t allow such unethical practices. Therefore, your pension counts as any other income.

SHOULD I WAIT FOR MY MORTGAGE TO MATURE BEFORE APPLYING?

Of course not. You can start taking a look and even shopping around 90 days before your mortgage matures. Please pay attention to the rates as well – lenders usually guarantee an interest rate up to 120 days before mortgage matures and they also cover all the costs of parts of the costs needed to transfer the mortgage. The new lenders will offer lower rates usually, but we will negotiate them on your behalf as many times as needed because we are aware that the first offer isn’t always the best.

DOES CHILD SUPPORT OR ALIMONY AFFECT MY CHANCES TO GET A MORTGAGE?

Child support or alimony can affect your chances in a positive way if you are the one receiving child or alimony as long as you can prove it by receipts. If you pay it to someone else, then that amount you pay will be deducted from the declared income.

HOW DOES BANKRUPTCY AFFECT MY ABILITY TO QUALIFY FOR A MORTGAGE?

Going bankrupt can impact your chances of getting a mortgage, especially with a bank. Our private lenders are open to discussing your personal context, see what happened and only after that decide if you qualify for financial support.

CAN I USE GIFT FUNDS AS A DOWN PAYMENT?

The answer is yes, as long as you can bring a letter from the donor, stating that the money was offered as a gift and not a loan. You also need to be aware that, in case you need a mortgage loan insurance, the money has to be in your possession before you get your mortgage approval.

WHAT DOCUMENTATION IS REQUIRED TO CONFIRM MY DOWN PAYMENT?

It depends where your funds are coming from. If it’s a bank account, you will need a bank statement. For other funds, you might need the most recent statement (in case of RRSP, GIC, etc.) or the sale agreement (in case of property sale).

WHAT IF MY CREDIT HISTORY IS NOT THE BEST?

Most banks don’t make exceptions on credit history, but private lenders are happy to discuss individual circumstances and offer a mortgage. The terms of the loan, as well as the rates depend from case to case.

CAN I STILL GET A MORTGAGE IF I AM UNABLE TO CONFIRM MY INCOME?

The general answer is “yes”. As long as you have a down payment, you can be considered for a mortgage with very good chances to get it. You need a few more documents, such as a good credit and an estimated income. The amount you will get can go to up to 75% of the property’s market value.

CAN I GET A MORTGAGE TO RENOVATE MY PROPERTY OR PAY OFF CREDIT CARDS?

You most certainly can. With our financial support options, you can borrow money to purchase a property, renovate it, refinance a mortgage or renew it. More than that, you can use your mortgage equity to pay credit cards and reduce interest rates on your monthly bills.

WHAT IS THE DIFFERENCE BETWEEN VARIABLE RATE AND FIXED RATE MORTGAGES?

Fixed rates are set when deciding the mortgage terms and they stay like that for the whole term. Variable rates change through the term and are calculated according to a specific formula, usually based on the rates set by the Bank of Canada.

WHY LOOKING INTO PRE-APPROVED MORTGAGES?

A pre-approved mortgage helps you lock in a certain mortgage rate for up to 120 days. If the rates go higher then you have nothing to worry because you will pay at the agreed rates. However, if they go lower, you will be able to repay at the new rates. More than that, with a pre-approved mortgage, you know well in advance what kind of house you can afford and how much to pay monthly. This way, you can start the hunt with more confidence and total peace of mind.

WHAT IS A HIGH RATIO MORTGAGE?

A mortgage can be offered based on income or the market value of the property. The mortgages we offer are usually based on the market value, allowing clients to get more money. A High‐Ratio Mortgage can be as much as 80% of the purchase price or appraisal. Please bare in mind that with a high ratio mortgage you need Mortgage Loan Insurance and the price of this can vary from 0.6% to 3.6% of the borrowed amount.

 

You can find out how much your insurance will be by using our Mortgage Loan Insurance Calculator.

WHAT IS A CONVENTIONAL MORTGAGE?

It is a mortgage where you don’t usually need to purchase a Mortgage Loan Insurance and your down payment is a minimum of 20% of the purchase price.

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