Services
-First Time Home Buyer
-Purchase - upgrading, downgrading, vacation cabin or vacation property, second home/rental
-Renewal / Switch
-Refinance
-Second Mortgage
-Secured Line of Credit
Why choose a Mortgage Broker?
What does a Mortgage Broker do?
There are generally two ways to get a mortgage in Canada, through a bank or a Licensed Mortgage Professional. A Mortgage Broker is a licensed individual who helps you select the mortgage product that best suits your financial needs. They do this by comparing mortgage products offered by a variety of lenders. Acting on your behalf for your financing needs, connecting you, the borrower, with the lender.
At a bank, you are only offered the products and services it has available.
Mortgage Brokers work for you, not the lender or the bank.
FAQ's
How much so I need for a down payment?
The minimum down payment starts at 5%. You will be required to pay Mortgage loan Insurance. If you don't wish to pay loan insurance you will be required to put a down payment of 20%. *some lenders may have different requirements.
What is the stress test?
The stress test is in place to ensure that Canadians can absorb any increase in mortgage rate when they come up for renewal. You have to qualify at the higher of the Bench Mark rate of Canada or 2% above your contract rate.
What is Mortgage Loan Insurance?
Mortgage loan Insurance is required with less than a 20% down payment. This protects the lender in the case of default. There are 3 mortgage default insurance companies in Canada. CMHC, Segan, and Canada Guaranty.
What are closing costs?
Closing cost include convancing fees (lawyer/notary), property transfer tax, adjustment of land tax and utilities from previous owners. There maybe additional closing cost which will be discussed with you prior to offers and closing.
What is an insured Mortgage?
An Insured Mortgage, also now as a high ratio mortgage; is considered where there is under 20'% down payment of the purchase price. This is when you will be require to obtain mortgage loan insurance form one of three insurance companies, CMHC, Segan or Canada Guarantee.
What is a Conventional Mortgage?
A conventional mortgage is where you have 20% or more of the purchase price as a down payment. With this, you will not be required to purchase mortgage loan insurance.
Understanding Credit and the affects it has for financing
Your credit rating affects all aspects of your financial activities when it comes to borrowing money. It is the most important factor needed to determine the value of a house you can buy.
Your credit report itself is simply a listing of all of your mortgage and consumer debt. In Canada, the two main credit reporting agencies are Trans Union and Equifax. Both agencies have a credit history file on anyone who has ever borrowed money. Every time you borrow money, or make a payment on a loan or credit card, the lender then reports the information about the transaction to these two agencies. In addition to credit information, you will also find liens and judgments on your credit report as well as your address and possibly your work history. The accumulation of information is called your credit report.
The information on your credit report varies based on your creditors and what they have reported about you. Potential lenders view your credit history as a reflection of your character. Whether we like it or not, our financial habits have a lot to say about the way in which we choose to live our lives.
The credit score / beacon score, is a number which gives mortgage lenders an idea of your lending risk. Credit scores range from 300 to 900, the higher your credit score the better. The mortgage products and interest rate that you will qualify for are often determined by your credit score. Lenders require a minimum credit score without exceptions, the score rating will vary from lender to lender.
One thing that many people do not know is that you have the legal right to obtain a copy of your credit report. A mortgage professional can help you obtain a copy of this report and go through it with you to verify that all of the information is true and correct and no fraudulent activity has occurred.
The good news is credit fluctuates, if any damage to credit has occurred or you simply just need to build credit, you have the ability over time, to repair any damaged credit and increase your credit score
Helpful Credit Hints to keep you score maximized
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Pay your minimum balance on time!
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Keep your balance under 70% of your available credit limit
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To maximum you credit avoid applying for new credit leading up to Mortgage approval
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Keep old credit cards open to maintain a longer history
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Avoid making any large purchase leading up to mortgage financing, like an automobile loan
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Wait until after the closing date of your home to use credit for purchases such as 'No interest' 'No payment' for items like furniture or appliances.
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Verify your credit report annually to ensure no fraudulent activity has occurred in you name.
Request a First Time Home Buyers Guide
This pdf guide will provide you with information and tips leading
up to purchase financing of your first home! Contact me anytime
for more information, aswell with any questions you have.