Mortgage FAQs

• 1. What is a mortgage?

  • A mortgage is a loan used to finance the purchase of a home. It is secured by the property itself, and the borrower makes monthly payments over a specified period to repay the loan.

  2. How does the mortgage application process work?

  • The process typically involves pre-approval, house hunting, making an offer, finalizing mortgage approval, and closing. Each step is crucial, and we guide you through the entire journey.

  3. What factors affect mortgage eligibility?

  • Factors include credit score, income, employment history, debt-to-income ratio, and the amount of the down payment. We can assess your situation to determine your eligibility.

  4. What is pre-approval, and why is it important?

  • Pre-approval is a lender's assessment of your creditworthiness and ability to borrow. It gives you a clear budget for house hunting and makes your offer more appealing to sellers.

  5. Fixed-rate vs. variable-rate mortgages: Which is better?

  • Fixed-rate mortgages offer stable interest rates, while variable-rate mortgages may change based on market conditions. The choice depends on your risk tolerance and market outlook.

  6. What is a down payment, and how much do I need?

  • A down payment is a percentage of the home's purchase price paid upfront. In Canada, the minimum is typically 5%, but a larger down payment can offer benefits such as lower interest rates.

  7. What are closing costs, and what do they include?

  • Closing costs are additional expenses associated with finalizing the purchase. They include legal fees, land transfer taxes, property insurance, and other miscellaneous costs.

  8. Can I pay off my mortgage early?

  • Most mortgages offer prepayment options, allowing you to pay off your mortgage faster. However, check your mortgage agreement for any prepayment penalties.

  9. How often can I renew or refinance my mortgage?

  • Mortgage terms typically range from one to ten years. You can renew or refinance at the end of each term. We can help you explore your options and secure the best rates.

  10. What government programs are available for first-time homebuyers? - Programs such as the First-Time Home Buyer Incentive and the Home Buyers' Plan offer financial assistance and tax benefits for eligible first-time homebuyers.

  11. What is mortgage insurance, and do I need it? - Mortgage insurance protects the lender in case of default. It is required for high-ratio mortgages (less than 20% down payment). We can explain the options available to you.

  12. How do I choose the right mortgage broker? - Look for a broker with experience, strong industry connections, and a commitment to personalized service. We pride ourselves on our expertise and dedication to your financial goals.

  Have more questions? Contact us for a personalized consultation to discuss your specific needs and get the information you're looking for.