First-Time Mortgage Questions
How much can I afford to pay for a new home?
The amount you can afford on your first-time home purchase depends on income and your expenses. It is vitally important that you are honest and thourough when listing these. If you over commit and cannot afford your mortgagae payments, you might risk the foreclosure of your new home. Try Canada's best mortgage calculator to aid you in formulating your budget plan.
What amount is required for a deposit?
In today's market, you can purchase a home with as little as no money down. All you need to have is a good credit history. Please talk to one of our mortgage brokers to see if you qualify for the no money down mortgage.
What is a high ratio mortgage?
A high ratio mortgage means the amount borrowed from the lender is in excess of 75 per cent of the actual price, or value, of the property being purchased. A significant level of mortgage insurance is likely to be required with this type of mortgage. However, this insurance can often be added to the loan. A benefit of having a high ratio mortgage is that a large down payment is usually not required.
What is a conventional mortgage?
A conventional mortgage means the buyer's deposit is 25 per cent (or exceeds 25 per cent) of the total purchase price, so only 75 per cent or less is borrowed from the mortgage lender. This type of mortgage does not normally require mortgage insurance,but a higher initial deposit is required. Because you are borrowing less, you will also be paying less interest over the long-term.
How can a mortgage broker help me find the right mortgage?
Mortgage brokers are independent and have no vested interest in any particular companies. This means their advice is objective and unbiased. Professional mortgage brokers have access to a vast range of Candian lenders. They can research and compare the best possible deals available in Canada.
How much are mortgage broker services?
In general, clients do not pay for mortgage broker services. Most lenders attribute a broker's fee to the brokerage company when a client takes out a mortgage with that lender. A marginal fee may be required in the attainment of a poor credit mortgage, but would be discussed prior to services being rendered.
