Frequently Asked Mortgage Questions

FAQ 2017-05-04T12:23:22+00:00

Can I borrow against my home for personal reasons?

If you have a minimum of 10% equity in your house (based on a current appraisal on your property), we may be able to renegotiate your mortgage so you can take out equity to buy a new car, home renovations, consolidate your debt etc. Some restrictions apply. In some cases a broker can arrange financing up to 100% of the value of your home.

What can a Mortgage Broker do for me?

A mortgage broker works for you to provide you with information about many lenders products and policies. They are aware of market trends and present mortgage interest rates and can provide you with a mortgage product that is best suited to your individual needs.

How much does a Mortgage Broker charge for their service?

In today’s environment a mortgage broker is paid by a lender for a mortgage that meets prime underwriting guidelines.

Why should I use a mortgage broker?

A broker can often save you thousands of dollars in interest over the term of your mortgage. They can also save you time and a lot of heartache. A broker can help make shopping for a mortgage less stressful. With the experience and knowledge gained by specializing, the broker will ask you all the right questions to present your application in its best possible light. The broker is also able to deal with all the lenders insuring you get the best deal available.

What is a preapproved mortgage and what is the benefit of applying in advance?

A preapproved mortgage tells you exactly how much you can afford to spend on your home and what your payments will be. Your rate is fixed for a certain period (usually 120 days) which means that if rates go up during that period, you keep your fixed rate but if they go down at the time of your purchase, you get the lower rate.

What is CMHC, G.E. CAPITAL or AIG insurance?

If your down payment on you purchase is less than 20% of the value of the property, your mortgage must be insured against payment default by Canada Mortgage and Housing, G.E. Capital or AIG Insurance. You will have to pay a one-time premium which can be added to the principal amount of your mortgage you do not have to come up with this extra cash.

How can I pay off my mortgage faster?

Here are a few options which will help you:

• try to take advantage of all prepayment privileges allowed by your lender
• make accelerated payments as weekly instead of monthly
• choose the shortest amortization period possible

Broker and/or Lender Fee may apply.