FREQUENTLY ASKED QUESTIONS

Yes. you can use a gift with a gift letter from a family member and use it to purchase a house.

It depends on your income, when we meet we can calculate it for you since everyone has a different situation.

to visually look for anything that needs to be repaired or replaced. Home inspections in Ontario are typically conducted before a home is purchased to make sure there are no major issues.

For a 1st time buyer and under 500K purchases you only need 5% downpayment.

Mortgage loan insurance helps protect lenders against mortgage default, and enables consumers to purchase homes with a minimum down payment starting at 5%* — with interest rates comparable to those offered with a larger down payment. To obtain mortgage loan insurance, lenders pay an insurance premium.

A conventional mortgage or conventional loan is a homebuyer’s loan that is not offered or secured by a government entity. They are often compared to FHA loans, which are designed to allow low-income families, or those with low credit scores or little savings, to access mortgage loans.

Though filing for bankruptcy won’t eliminate your mortgage, you can still keep your home. The Bankruptcy and Insolvency Act prohibits your mortgage lender from repossessing your home simply because you’ve declared bankruptcy. They can only do so if you default on your mortgage payments.

Where child support and alimony are received by you from another person, generally the amount paid may be added to your total income before determining the size of mortgage you will qualify for, provided proof of regular receipt is available for a period of time determined by the lender.

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The best answer is to talk to a mortgage broker and discuss your case.

Mortgage pre-approval is a more significant milestone in the process because a lender is actually checking your credit and verifying your financial information. If you’re pre-approved, a lender is making an actual commitment (subject to conditions such as a property valuation) to loan you money.

For most switches, the penalty fees will negate any interest savings received from switching to a lender with a lower interest rate, so it’s best to wait until your mortgage term is about to mature before you make a switch.

A down payment is a sum a buyer pays upfront when purchasing a home or car and is a percentage of the total purchase price. The higher the down payment, the less the buyer will need to borrow to complete the transaction, the lower their monthly payments, and the less they’ll pay in interest over the long term.

In Canada, you can put in as little as a 5% down payment (depending on the purchase price). A minimum of 5% down can help you own a home (see below for purchase-price limits). Any down payment between 5% and 20% of the home price is called a high ratio mortgage.
Here’s how to turn this dream into a reality.
  1. Find the best interest rate. …
  2. Take advantage of prepayment privileges. …
  3. Shorten your amortization period. …
  4. Pay a big lump sum before you renew. …
  5. Choose accelerated weekly or accelerated biweekly payments. …
  6. Increase your mortgage payment. …
  7. Make annual lump-sum payments.
Here’s how:
  1. Get an RRSP loan from your Caisse within your RRSP contribution limit.
  2. Deposit it in your RRSP for at least 90 days.
  3. Withdraw this non-taxable amount from your RRSP and pay off your loan at your caisse.
  4. Use your income tax refund as a down payment to acquire your home.

Closing costs are one-time fees that the real estate buyers must pay when they decide to purchase a property in Canada. These costs include, but are not limited to: land or property transfer taxes, lawyer fees and inspection fees. In most cases, they have to be paid upfront and cannot be rolled into your mortgage.

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Although the most popular term is 5 years, the usual frame of length for a complete mortgage term may divert from six months to ten years. The shorter the mortgage term, the lower the interest rate.

Total housing expense is the sum of a homeowner’s monthly mortgage principal and interest payments plus any other monthly expenses associated with their home such as insurance, taxes, or utilities.

Over the long term, you will undoubtedly save more money with a 15-year mortgage. Your total interest costs and total amount paid will be dramatically lower. Short-term, though, you save money on your monthly payment by choosing the 30-year mortgage.

A fixed-rate mortgage, simply put, is a mortgage where your interest rate and monthly payments stay the same for the duration of the term, whether it’s 6 months, 1 year, 2 years, 3 years, 4 years, 5 years, 6 years, 7 years, or even 10 years.

  • The rate can change as the market fluctuates, over the course of your term.
  • Your payments can change as the rate changes.
  • You benefit from rate decreases in the market during your term, but you are exposed to rate increases.

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