Why use a Mortgage Broker?
Their services are free – meaning no cost to you whatsoever (on approved credit) Mortgage brokers shop the market to save you time. Calling a mortgage agent is like calling over 50 different Banks, Credit Unions, and Trust Companies. They are available on your terms – daytime, evenings, and weekends
What is a down payment?
This refers to the amount of money you pay up front to obtain a mortgage.
How much money do I need to make a down payment on a house in Ontario?
The new breakdown is as follows: For homes with a purchase price less than or equal to $500,000, the minimum down payment is 5%. For homes with a purchase price greater than $500,000, but less than $1M, the minimum down payment is 5% (of the first $500,000) plus 10% (of the remaining balance).
How can I use your RRSPs to help me buy my first home?
With the federal government’s Home Buyer’s Plan, you can use up to $25000 in RRSP savings ($50000 for a couple) to help cover the down payment on your first home. From there, you’ll have 15 years to repay your RRSP. The RRSP funds you’re using must be on deposit for at least 90 days. You’ll also need a signed agreement to buy a qualifying home.
When does my lender need mortgage loan insurance?
Lenders will require mortgage loan insurance if a borrower has a down payment of less than 20% of the purchase price of the home.
What is a mortgage pre-approval?
A mortgage pre-approval can be useful as an estimate of how much you can afford to spend on your home. “Pre-approval” is a valuable tool. This means that the lender has actually checked your credit to approve a specific loan amount; usually for a particular time period such as 120 days, based on the information provided.
What is a fixed rate mortgage?
The interest rate on a fixed rate mortgage is set for a pre-determined period – usually 6 months to 10 years. This offers the security of knowing what you will be paying for the term selected.
What is a variable rate mortgage?
Your monthly mortgage payment can fluctuate with a variable mortgage depending on the prime lending rate. Your mortgage payments will go up if prime increases.