Our home is not just a roof over our head. For most, it is the most significant investment we will make in our lifetimes. Like any solid investment strategy, we want to maximize our buying power and minimize our expenses. We understand everyone is unique and that you need a solution tailored to your life and overall financial strategy. Through our brokerage network, we offer you access to the best-in-market interest rates and mortgages from a wide range of lenders, including most of the major banks and lending institutions. Mortgage products often change daily and we constantly evaluate lending programs to ensure you have the best offer available.
When you deal with one of our brokers, you will receive:
- The lowest rates in Canada
- 100% financing programs (oac)
- Flexible options for future changes to your life
- Canada’s best pre-payment options which allow you to become debt free faster
- Programs available for every credit situation including self employed, and post bankruptcies
- Access to private lenders to assist unique situations
There are a number of mortgage products available to you. We will help you make the right decision.
First time home buyers
We take you step by step through the financing process from understanding your credit, simplifying the application, to getting you approved and beyond. You will feel comfortable making the right decisions so you can enjoy your new home.
We will help you access a mortgage, tailor-made to your needs by providing the latest rates and packages. If you already have a quote from another institution, call us for a second opinion.
Call us at 902-468-4321 anytime to speak with a trusted advisor or fill out the secure online application. We will get back to you with a solution that suits your needs.
To find out how much you will be able to pay for your new home, you need to analyze your taxable income along with the amount of debt that you have to pay off through monthly payments. If it is your main residence that you are going to purchase, calculate approximately 32% of your income to make the mortgage payment, property taxes and heating costs.
Next, you need to calculate 42-44% of your taxable income and from that, deduct all of your other monthly payments such as car loans, credit card bills and other such debts. The lesser of these two calculations will be used to determine how much of your income may be used towards housing related payments, including your mortgage.
Apart from what the ratios tell you, you should make calculations of your own to determine how much you can afford. If the payment amount you are comfortable with is less than 32% of your income you may want to settle for the lower amount rather than stretch yourself financially. Make sure you take all other expenses into consideration too so that you can easily afford the basic luxuries.
A home inspection is a visual examination of a house by a qualified professional to determine the overall condition and value of the home. When conducting a proper inspection, an authorized home inspector should check all the major components of the house such as the roof, ceilings, walls, and floors along with other systems such as the electrical connections, heating, plumbing and drainage and weather proofing. The inspector usually gives the results of the inspection in writing to the home owner within 24 hours of the inspection.
It is always advised to get a home inspection done before making a purchase decision. A thorough inspection is likely to clear a majority of the doubts that you might have when purchasing a home. The inspection gives an idea about the quality of the construction and indicates whether any major repair work will be required. This allows you to calculate all the add-on costs before making the final decision. An inspection will definitely give you a more secure feeling about your purchase decision by removing most of your doubts.
In most cases, you will need to pay a minimum of 5% of the house value as a down payment. You can still do 100% financing in some cases with great credit! In addition to the down payment, you should also be able to show that you have the capacity to cover other closing costs such as the legal fees and disbursements, appraisal fees and a survey certificate.
As a rule, at least 5% of the down payment must be from your own cash resources or a gift from a family member but can be a borrowed amount as well. Several programs are available in the market that allow some alternate sources of down payment. The CMHC is one organization offering such programs. Most lenders also accept gift money from a family member as a down payment. However, such a sum needs a signed letter from the donor stating that it is a gift and not a loan.
For any down payment that is less than 20% of the total value mortgage insurance from either the CMHC or GE is required.
Mortgage Loan Insurance is an insurance cover provided to a lender against default on mortgage installments, when the down payment amount is less than 20%. Like any other insurance, mortgage loan insurance too requires premium payments. The premium amount can vary between 0.5% to 3.75%, depending on the insurance provider and how much of the purchase price is financed by the mortgage; greater the down payment, lesser will be the premium. Mortgage loan insurance is distinct from Mortgage Life Insurance as the latter guarantees that your remaining mortgage at the time of your death will not be a burden to your estate.
A conventional mortgage is one in which the down payment amount is equal to more than 20% of the purchase price (or where the loan value is less than 80%). Such a mortgage normally does not require mortgage loan insurance.
A mortgage which is greater than 80% of the purchase price or appraisal, whichever is less, is known as a High-Ratio mortgage. A High-Ratio Mortgage requires mortgage insurance. Premiums for a mortgage loan insurance can range from 0.5% to 3.75%, depending on the value of the mortgage and are included in your mortgage.
A pre-approved mortgage is one that provides an interest rate guarantee from a lender for a specified period of time (usually 60 to 120 days) and for a set amount of money. The pre-approval is calculated on the basis of information provided by the borrower and is subject to certain conditions being fulfilled before the mortgage if finalized. These conditions usually include factors such as a written confirmation of employment and income among other things. Many brokers prefer it when their clients have a pre-approved mortgage as this gives a clear idea of the affordable price range when hunting for a new home.
The benefits of getting a pre-approved mortgage are many. First of all, pre-approval gives you an idea of what you can afford, making your search for a new home much simpler. It also does away with the tension of trying to find out what your monthly installments are going to be. Probably the greatest advantage of getting a pre-approved loan is that it allows you to lock in a rate. As the lender guarantees a fixed rate when pre-approving the mortgage, the borrower can secure that same rate even when the market prices climb up. In case a situation arises where the interest rates fall below those that were pre-approved, the lenders usually offer the lower rate.
Some lenders may consider you eligible for a mortgage even though you have faced bankruptcy. However, this decision may vary from lender to lender and will greatly depend on the circumstances surrounding the bankruptcy. Certain measures can be taken by the prospective borrowers to improve their credit rating. Contact us for more details!
To make your mortgage application process as simple and lucid as possible, it is advisable that you collect all these documents beforehand so as to avoid any interruptions later.
- Personal information (Name, SIN#, address etc)
- Job details, including confirmation and proof of income.
- Your sources of income.
- Proof of financial assets if using investments for down payment
- If using a co-signer, their information is required as well
- Source and amount of down payment.
- Proof of source of funds for the closing costs (usually about 1.5% of purchase price)
If you are paying child support and alimony to another person, generally the amount paid out is deducted from your total income before determining the mortgage amount that you would qualify for.
If you are receiving child support and alimony from another person, the amount paid to you will be added to your total income before determining the mortgage that you will qualify for. However, you will be required to produce a regular receipt for the same for a set time period as specified by the lender.
In a fixed rate mortgage, the interest rate is pre-determined at the beginning of the loan term, which can range from 6 months to 35 years. The advantage of this type of mortgage is that it offers a security of knowing your monthly payments beforehand and allows you to plan accordingly.
In a variable or floating rate mortgage, the payments are fixed for a period of one or two years but the interest rates can fluctuate every month depending on the market conditions. If the interest rates drop, more of the payment goes towards reducing the principal; if the rates go up, a larger portion of the monthly payment goes towards covering the interest. The interest rate is based on a predetermined formula which is in-turn based on the prime-lending rate.
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Mortgage refinancing can prove beneficial in several ways:
- Consolidate additional mortgages, high interest credit cards, loans and lines of credit
- Lower your monthly payments and increase cash flow
- Allow cash for renovations and home improvements that will increase property value
- Assist with financing children’s education or other needs
- Obtain money for investments such as additional real estate or financing a business
Mortgage refinancing is becoming a popular financial solution, especially for those who are burdened by large monthly payments or multiple debts.
Some of the potential benefits of refinancing:
The interest on a fixed rate mortgage that you took several years ago may have dropped drastically. Refinancing the existing mortgage will entitle you to the reduced interest rate and lower your payment or allow you to pay off the mortgage faster.
The interest rates on an adjustable rate mortgage (ARM) might be low initially, but the fluctuations are unpredictable. Many prefer to refinance the mortgage to a secure, fixed rate from a variable rate.
Making payments on two or more mortgages at the same time can be a burden. Consolidating multiple mortgages into one with a lower fixed interest rate will save you both time and money.
The proceeds from your refinanced mortgage can be used to pay off credit card bills and other similar expenses which can drastically reduce the interest you pay and lower your monthly payments.
You can refinance your existing mortgage to free a larger amount of cash, depending on your home equity. Since a mortgage is a secured loan, the interest applied is considerably lower than that of an unsecured loan.
The decision to refinance should be evaluated to avoid any complications at a later stage. By carefully studying the status of your current mortgage and comparing it to your income and other debts, our experienced mortgage professionals help you pick the refinance solution that best suits your current financial status. We have access to lenders that offer some of the lowest and most competitive mortgage rates in the market. Regardless of your requirement, whether it is to consolidate existing mortgages or obtain a better rate, we will secure the best deal possible.
When it is time to renew your mortgage, shop around for the best rate and terms. Our experienced mortgage professionals have access to lenders that offer the best-in-market interest rates and mortgages.
- We shop around, at no charge to you
- It will not cost you anything to switch
- Canada’s best prepayment options
Renewing your mortgage is as important a financial decision as selecting your first one. When renewing your mortgage, you are in a stronger financial position than you were when you first purchased. Your home equity grows over a period of time and by decreasing your principal loan balance, you are in a good position to negotiate. We will help you access the best rate and mortgage package that caters to your individual needs.
We offer unique builder financing programs to meet your needs. Whether you are constructing hundreds of homes a year, or you specialize in customized construction, or you are a small builder just starting out, our construction loans are well designed to suit your requirements.
Our dedicated turnkey services include: Credit Facility Management, Purchaser Mortgages, Draws, Inspections and much more. Our application process is straightforward and simple.
We offer financing to the builder on both a pre-sold and construction basis. There are no front or back end fees. Cancellation fees are waived with certain mortgages plans. We also offer competitive construction rates and flexible draw schedules.
Our mortgage programs also allow you to receive funds on each home as construction proceeds. Advances are available to you at each stage of construction.