The mortgage process isn’t something that you do every day and there are many questions that come up over the course of arranging a mortgage or home equity loan in Canada.
For first-time home buyers, mortgages can seem complicated and it may seem hard to know where to start.
We've put together a list of the questions we hear most often. If you have others, let us know. We are here to help you through your mortgage journey!
Where do I get the best mortgage?
The best place to start is to talk to a Mortgage Broker. We are independent, trained professionals who are licensed approach lenders for the best rates. When you talk to a bank they will only offer you the products they carry. Mortgage brokers shop around to the different lenders to find the best mortgage that fits your needs. If you’re looking for more detail contact us for more information and explore our mortgage tips.
What is the difference between a bank and a mortgage broker?
Banks will only discuss and offer the mortgage products they carry. A bank will have posted rates and will sometimes have specials on those rates but in most cases, you have to negotiate with your bank to get the better rate. A mortgage broker on the other hand, has access to many different lenders and, as a result, a variety of different mortgage products. With a mortgage broker the mortgages are already discounted, which means you don’t have to negotiate or haggle for the best rate, because the mortgage broker has done that work for you. The mortgage broker will work with you to get the best rates and options for you.
Will I be approved for a mortgage?
We will work hard to make that happen. Your approval will depend on your current financial situation and whether you have any outstanding debt. You can start by using a mortgage calculator to gauge mortgage affordability but it’s better if you talk to a mortgage specialist like the brokers at Verico iMortgage Solutions. It’s our job to walk you through the mortgage process and find the one that fits you.
How much house can I afford?
To determine how much you can afford it is best to get advice from a professional. There are numerous online calculators what will provide a general amount, but it’s not advisable to go house hunting with only that number in mind. It is always better to speak to a mortgage advisor who can help you complete a proper pre-approval application to get an accurate amount. If you have any outstanding debt a mortgage advisor can offer advice on how to reduce that debt to increase the amount can you qualify for. If you have any questions on this contact us and a Verico iMortgage Solutions advisor can help.
What is the minimum down payment for a first-time home buyer?
The minimum down payment for a home purchaser in Canada is 5% of the total purchase price. This minimum is available for all purchasers and is not exclusive to first-time home buyer mortgages. It is possible however to use other sources for the down payment other than your savings. Contact us for details.
What is the maximum amortization that I can take for my mortgage?
In Canada, the maximum amortization for a home purchase is 30 years and is available only if you have 20% down or more. A purchase with less than 20% down is considered a High Ratio Mortgage and has a maximum amortization of 25 years.
How do I get a down payment?
Simply put, save. A down payment can also come from additional sources like investments or a gift from your family. If you are a first-time home buyer, RRSPs can be a source of down payment up to $25,000. If you already own a home and are hoping to move up, the existing equity in your current home can be used.
Will paying bi-weekly save me money?
Yes, but not as much as you might think. It’s best to make a repayment plan that works best for your budgeting purposes. A Verico iMortgage Solutions Advisor can help with that. Contact us for details.
Can I get pre-approved for a mortgage online?
You can start the process online. Simply fill out the mortgage application form here.
Can I get a mortgage if I’m self-employed?
Yes, but it’s complicated and we strongly recommend that you get some professional advice before moving forward. It takes time and planning to get the pieces into place. A Verico iMortgage Solutions Advisor can advise you. Contact us for details.
Can I get a mortgage if I have bad credit history?
Yes - and no. Your credit score is an important part of the mortgage journey. A Verico iMortgage Solutions Advisor can provide you with a plan to improve your score and make home ownership a reality in the future. Contact us for a no obligation consultation and we can help you get started.
Do I have to negotiate to get the best mortgage rate?
Not if you use a mortgage broker. We do the haggling for you. It is our job to get the best rate and options for you without the stress or hassle associated with shopping around.
What is a Mortgage Broker?
A mortgage broker is an independent, trained professional who is licensed to represent you when he approaches financial lenders. We will provide you with the best advice for your specific needs. Unlike a banker, a mortgage broker's primary expertise is to locate mortgage funds for his clients.
Do I have to pay any fees to use a mortgage broker?
In most cases, it doesn’t cost you anything to use a mortgage broker. The mortgage broker is generally paid by the lender who provides you the loan. In very rare cases there is a fee charged, but if that is the case it will be clearly discussed with you early in the process.