If you’re a homeowner in Canada, chances are you took out a loan to pay for your house. That loan, when taken out from a bank or other lender to pay for a first home, is called a first mortgage.
Mortgage brokers are independent, trained professionals licensed to represent and provide you with the best advice for your mortgage needs.
Mortgage brokers/agents primary expertise is locating funding for mortgage financing. They know where the best rates can be found. What’s more, they have the knowledge required to present a proposal for financing to lenders in the best way possible to successfully obtain mortgage financing.
Mortgage brokers/agents represent you, the customer, not the lender. Because they are not employees of a lending institution, brokers/agents are not limited in the product they can offer you. Brokers/agents seek out the best lender package to suit your specific situation, whether it’s with a chartered bank, trust or insurance company, or private funds.
There is a wide assortment of options and features available to home buyers today. Shopping around takes a lot of time and effort; many Canadians are intimidated by the mortgage process. In today’s very competitive marketplace, it pays to work with a mortgage professional who will represent you and ensure the mortgage you get is the one best suited to your needs. Choosing the wrong mortgage can cost you thousands of extra dollars. Mortgage brokers are the trained professionals who can help.
Some lenders will consider your mortgage application depending on the circumstances surrounding your bankruptcy and your credit history since the bankruptcy has been discharged. The best way to determine if you can qualify for a mortgage after being discharged from bankruptcy is to call a mortgage consultant.
Canadalend is skilled and experienced at assisting individuals with bruised or questionable credit to secure their dream home and set them on the path to financial peace of mind.
Before making a home-buying decision, calculate both the one-time and ongoing costs associated with buying and operating the home. As a guide for preparing a budget, consider the following:
Costs associated with the purchase of a home include:
Cost to obtain a survey
Land transfer taxes
CMHC / GEMICO mortgage insurance (if applicable)
Property tax adjustment
The minimum down payment is 10% to purchase a home, subject to maximum price restrictions. However, you must be able to confirm that you can cover costs incurred to close your mortgage. These costs may include legal fees, appraisal fees, survey certificates, etc.
- Registered Retirement Savings Plans (RRSPs may be used as a down payment
up to a maximum amount of $20,000 and are not subject to income tax if repaid
within a specific time period)
- Gift from immediate family
- Accumulated savings
- Sale of existing home
- Sweat equity
Mortgage brokers/agents do not always charge a fee for their services, but if a fee is warranted, it is negotiated up front and documented. Fees are based on complexity, strength, and type of project. They are a one-time only charge and are quoted once the details of the deal have been examined.
Your investment in the professional services of a mortgage broker/agent is generally returned very quickly, not only in time saved, but also in the quality of the financing received.
A professional presentation to a lender on the first application will get the best response and save you valuable time and money. Secondary applications with previous credit bureau inquiries may be more costly.
Often the success of obtaining mortgage approval depends on the way a proposal is presented and to whom it is sent. Your mortgage broker is trained to present your mortgage proposal where and how it will get the most immediate, positive result.
You don’t call an insurance company for insurance—you use an insurance broker, because of their expertise, product knowledge, and rates. So remember, call your mortgage broker first!
Canadalend can place all types of loans provided they are backed by mortgage collateral. All sizes of loans, from small loans backed by a residential property to commercial properties in the millions of dollars, are readily available. Mortgage-backed loans in the millions are not uncommon with private pension funds and private lenders.
In addition to handling straight mortgages, we are often called on to assemble financing (based on mortgage collateral) for businesses. Canadalend excels in this type of financing package because of our expertise in looking at loans from a mortgaging perspective, as well as our knowledge of financial institutions’ interests and desires for a particular product at specific times.
Canada Mortgage and Housing Corporation is a federally owned and operated institution that evaluates the client and property to allow the borrower to purchase a home with a lower down payment requirement. This corporation insures the mortgage on behalf of the bank, through a premium added to your mortgage. This way the banks are obligated to provide a mortgage for those with less than a 20% down payment.
When you are buying a home you will want to know two things: whether you are paying the right price and whether the condition of the home is as promised. To determine the value of the home you may need a professional appraisal. If you are taking out a mortgage loan the lender usually requires a professional third party appraisal of the home to determine the lending value.
Distinct from mortgage life insurance or home, property, fire, and casualty insurance, mortgage insurance provides protection to the lender in the event of a default.
If the amount of the mortgage exceeds 80% of the lending value of the mortgaged property, the mortgage is considered “high ratio”. Accordingly, and as required by law, mortgage insurance must be purchased for the full amount of the mortgage. Mortgage insurance is available from CMHC and GEMICO.
The easiest way to reduce the interest costs on a mortgage is to pay it off sooner. Here are three ways this can be done:
Increase Payment Frequency – paying weekly or bi-weekly, rather than monthly, can save a significant amount of interest.
Prepay Lump Sums on Your Mortgage
Increase Payments – mortgage payments can be increased annually
Mortgages are available with either a fixed rate or variable of interest for various terms, ranging from 6 months to 10 years, with payments amortized over periods of up to 35 years, or variable rate mortgages.
Simply use the Canadalend Mortgage Calculator to determine your monthly mortgage payments and outstanding mortgage amounts at the end of your mortgage term.