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Why use a Mortgage Broker!

2009-11-20 | 15:06:36

• Power of professional negotiating expertise.
• One stop convenience for access to numerous mortgage products.
• Unbiased knowledgeable advice.
• Access to unadvertised rates.
• We work for you, not the Bank.
• In most cases service is free *O.A.C. 

What is the Homebuyer's Plan?

2009-11-20 | 14:59:46

• The Home Buyers Plan is a federal government program that allows homebuyers to use $25,000.00 for each purchaser from his/her own RRSP.

• You must not have owned a principal residence within the last 5 years.

• You must intend to occupy your home as a principal residence.

• Minimum repayment is 15 equal annual installments. This schedule can be accelerated.

• The funds to be withdrawn must have been invested into the RRSP for a minimum of 90 days prior to withdrawal.

• You must complete a Form T1036 .

Types of Mortgages

2009-11-20 | 14:58:35

What is an Open Mortgage?

An Open Mortgage allows you the flexibility to pay off some or all of the mortgage at any time, without a penalty. Interest rates are usually higher and are tied to the Bank Prime.

What is a Closed or Fixed Mortgage?

A Closed or Fixed Mortgage offers you the security of locking in your interest rate for the term of your mortgage, so you know exactly how much principal and interest you will be paying on the mortgage during the term. Terms range from 6 months through to 10 years. Should you wish to pay off some or all of the mortgage prior to the end of the term you will have to pay a penalty. 3 months interest or interest differential is standard.

What is a Variable Rate Mortgage?

A Variable Rate Mortgage allows take advantage of today's low Prime Rate. Most variable rate products are set either at Prime or slightly below. The terms range from 3 - 6 years. Payments vary depending on the product or lender you choose. In some cases you can fix your payments for up to 5 years, but the interest rate will fluctuate as the Bank Prime Rate changes. In other cases your monthly payments will fluctuate depending on how many time the Prime Rate Changes during your term.

Do I qualify for the 5% down payment program?

2009-11-20 | 14:57:09

• The home must be located in Canada and is to be occupied as your principal residence.

• You have from your own resources a down payment of at least 5% of the purchase price of the home.

• Your mortgage payment must not exceed 32% of your gross household income. This includes payment of principal + interest + property taxes + heat + condo fees (if applicable).

• You must be able to cover closing costs equivalent to at least 1.5% of the purchase price.

• You meet the lender's eligibility requirements regarding income, employment and credit worthiness.

What should I expect for closing costs?

2009-11-20 | 14:56:00

Closing costs are approximately 1.5% of the Purchase Price. The following are approximate costs:

• Appraisal Fee: $300.00
• CMHC APPLICATION FEE (if applicable): $165.00
• Survey Certificate (if applicable): $300.00
• Home Inspection $250.00
• Legal Fees (approx): $850.00
• Tax Adjustment (if applicable)
• Interest Adjustment (if applicable)
• Property Transfer Tax (if applicable)

What is Property Transfer Tax and do I have to pay it?

2009-11-20 | 14:54:46

• This tax is charged by the Provincial Government and is collected by your lawyer at closing.

• Each Province varies as to the amount but it is usually a percentage of the purchase price. For example in British Columbia, the amount the purchaser must pay is 1% of the first $200,000 and 2% of the balance.

• You are exempt from paying PTT in British Columbia if you have never previously owned a home anywhere. The maximum home price must not exceed $425,000.00 however there is a partial exemption up to $450,000.