WE’RE MORTGAGE BROKERS WORKING WITH YOU. FOR YOU.

A minimum down payment of 5% is required to purchase a home, subject to certain maximum price restrictions. In addition to the down payment, you must also be able to show you can cover the applicable closing costs, approximately 1.5% of the purchase price (i.e. legal fees and disbursements, appraisal fee, land transfer tax and a survey certificate, where applicable, etc.). Regardless of the amount of your down payment, at least 5% must be from your own cash resources or in the form of a gift from an immediate family member. Newcomers to Canada typically need a 10% down payment. Non-residents will need 35%. The down payment cannot be borrowed, even from a family member. Mortgages with less than 20% down must have mortgage default insurance provided by CMHC, Genworth or Canada Guaranty.

Mortgage default insurance is not the same as mortgage life insurance. Mortgage default insurance is required by law to insure lenders against default on mortgages with a loan to value ratio greater than 80%. It is provided by CMHC (a crown corporation), CG-Canada Guaranty or Genworth (both approved private corporations). The premiums range from 0.60% to 6.0% and can be added to your mortgage amount. Sales tax is applicable in some provinces.

We suggest you talk to a mortgage broker 6-12 months before you plan to purchase a new home or refinance an existing home. This allows the time required to gather all the paperwork required, assess your credit and make appointments to discuss what you need and want in a mortgage. Most of our lenders will guarantee an interest rate for 120 days before a closing date. This gives you time to shop for the right home and ensure that you get a great rate. If the rate is lower when you find that right home you get the lower rate. Apply Here.

A pre-approval is not mandatory but has many advantages. It can measure your qualifications and how much house you can afford. Their 120-day rate guarantee protects you if rates rise while you’re house hunting. They make you look more serious to sellers and real estate agents. (In competitive bidding situations, they’re almost mandatory.) They’re free and there’s no obligation to use the lender that pre-approved you. Apply here.

A conventional mortgage is where the down payment is 20% or more of the purchase price. (LTV: loan-to-value of 80% or less.) Mortgage loan insurance is usually not required for this type of mortgage.

A fixed rate mortgage is when the interest rate is locked in for the term of your mortgage, most lenders offer 1, 2, 3, 4, 5, 7 and 10 year terms. A variable rate mortgage is where the interest rate is based on the lenders prime rate. (i.e. Prime minus 0.20%) This rate is based off the Bank of Canada prescribed rate and adjusted by the lenders accordingly. This can lead to an increase or decrease in payments each month, unlike a fixed rate where the payments are the same throughout your term. Variable rates are subject to fluctuation and therefore are a riskier product, however they have the potential to average a lower rate for the term. Contact us to setup an appointment to discuss the mortgage that is right for you and your family.