Phone: 780.474.7900
Fax: 780.474.8100

Corporate Office:
12983-160A Avenue

Mortgage FAQ

The following are the questions most frequenlty asked by our clients. If you don't see your question on the list, please call us at 780-474-7900 or email us and we will answer your questions.

What is a High Ratio Mortgage?

A high-ratio mortage is one in which more than 80% of the value of the home is to be borrowed. These mortgages require mortgage loan insurance through either CMHC or GE. See our Mortgage Insurance page for more information.


What is a Conventional Mortgage?

A conventional mortgage is one whereby a person puts down 20% or more in downpayment. It is a mortgage that typically does not require mortgage insurance.

What are closing costs and how much are they?

Closing costs are everything that you will have to pay to finish your house purchase. Typical closing costs consist of:

  • Deposit - the initial money you put down on the property
  • Home Inspection - this is to determine if there are any defects in the property that will cost you money down the loan
  • Appraisal - determines the value of the property for the lender
  • Legal Fees/Disbursements - your lawyer will quote his/her fee for closing the purchase, registering the mortgage and title.
  • Taxes - any taxes left owing on the property to the end of the year. If the vendor has prepaid any property taxes you may have to pay to ensure sufficient funds are available to pay the next installment of property taxes when they are due. Your lawyer will show you how that is calculated.
  • Interest Adjustment - Because monthly mortgage payments are due on the first of each month, you must prepay the amount of any mortgage interest accruing up to the first day of the following month.
  • Insurance Premium - if you put less thatn 20% down, a CMHC/GE insurance premium will be added to your mortgage amount. For more information please see our Mortgage Insurance page.
  • Other Fees: sometimes, depending on the type of mortgage and the amount of work, a lender or the mortgage broker may charge a fee as well.

Why should I get a pre-approval?

The benefit of getting pre-approved is that the paperwork is done before you put an offer on a property. This way, you already know how much you can spend on a property and will not waste your time looking at houses or condos that are below or above your price point. It also gives you some negotiating power when you put in an offer since you can tell the vendor that you are already pre-approved for your mortgage financing.

What is the difference between fixed rate and variable rate?

In a fixed rate mortgage, the interest rate is locked in for a fixed period of time (e.g. five years). In a variable rate mortgage, the interest rate fluxuates with any changes in national interest rates. If rates go down, more of the payment goes to principle, but if they go up, more of the payment goes toward interest.

Can I get a mortgage if I'm self-employed or can't prove my income?

Yes, there are a number of mortgage products for people who cannot meet standard income verification practices. Please contact us at 780-474-7900 for details.

Can I get a mortgage if I have poor credit?

It is more difficult to obtain mortgage financing if you have poor credit; however, there are mortgage lenders and products that will work. The interest costs will be higher and there may be a lender fee as well. These amounts are dependent on many variables. Please contact our office and we can walk you through the process and provide you with details.

Can my downpayment be given to me?

Yes, a downpayment can be gifted as long as it's from an immediate family member. The person giving you the money must sign a "gift letter" which states that the money does not have to be repaid.

How much downpayment do I need?

The minimum downpayment is generally at least 5% of the value of the home; however, there is now a program that finances 100% of the purchase price.

Can I borrow money against the equity in my home?

Yes you can through a variety of mortgage products.

Can I mortgage a rental or investment property?

Yes. Many clients mortgage their investment property which enables them to buy more.

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