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What is a high ratio or insured mortgage? |
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A high ratio mortgage is any mortgage that is higher than 80% of the value of the property. The Canada Mortgage and Housing Corporation (CMHC) or Genworth insures the lender in case of default on the loan.
This insurance is added to the amount of your loan and it is then blended into your payment schedule. These fees can be as high as 6.60% of the principal, depending on the product you need to utiliize. There are several options for high ratio mortgages, call me today if you have any further questions. |
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I have a 3 year term with my mortgage, what does that mean? |
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Every mortgage has a start and an end. At the end of your term, it is called the ‘maturity date’. Anyone can choose a term of any amount from 6 months to 25 years. This is different from your "Amortization". The amortization allows you to base the payment on a repayment of 25+ years. Without this, mortgage payments would be too high for anyone to afford. So you may have a 5 year fixed term at 6.25% amortized over 25 - 40 years, it is your choice.
On the maturity date of your term, you can either choose to go with a different lender and a different product, or you can accept your lenders invitation to renew your term. |
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| Q |
I don't want a 40 year amortization, I don't want to take 40 years to pay off my mortgage! |
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This is a response I hear every day. There are many uses for a 40 year amortization, and the main use is to make it more affordable to get into a better property right now. If you are purchasing your first or second property, and KNOW that you will not spend the rest of your life there, this is a good time to consider a 40 year amortization. A 40 year am allows you to qualify for a higher purchase price, and keep the payments lower, and more affordable. Once you sell that property, and buy your "forever" home, this is when you may want to think about a lower amortization. Keep in mind there are many ways to pay down your principal, while still enjoying the lower payment of a 40 year amortization. Mortgages in Canada come with "pre-payment" allowances of between 15-20% of the original mortgaged amount once per year, as well as increasing your monthly payments as well. At the end of your term, i.e. 5 yr fixed or 3 yr fixed, you have the option of choosing a different amortization again. So you may need the lower payment for the first 5 years, but at the end of that term, you do have the choice of reducing the amortization to a level where you are paying down the principal more agressively. |
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Does a lender charge for renewing my mortgage, and do they always offer me the best rate upon renewal? |
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When your are renewing your mortgage with your current lender, they may at times charge you a fee, or try to lure you to renew by offering ‘no fee’.
Banks send out renewal letters to consumers, and most consumers will simply accept the terms without realizing that they have been offered a much higher rate than what a Mortgage Professional can give them.
Be pro-active, call your Mortgage Professional to make sure you are getting the best possible product AND rate. |
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When is it a good idea to break a closed mortgage and pay the penalty? |
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It is a good idea when the cost of the penalty and legal fees are small in relation to the money saved on obtaining a lower mortgage rate over the term. |
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I have a variable rate mortgage, when do I know when it is a good time to lock in? |
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A good time to lock in is upon the advice of your broker. If you feel that the market is getting unstable, give me a call and I will let you know what the best scenario is for your personal situation. |
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| Q |
I live in Calgary and need to get on the TIPPS program for monthly installments of my property taxes. Who do I contact to arrange that? |
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# E-mail: property.tax@calgary.ca
# Fax: (403) 268-3550
# Phone: (403) 234-7480 |
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Why do Mortgage Professionals get such good rates? |
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Mortgage Professionals work with many different lenders, all of whom are competing against the next. They recognize the fact that Mortgage Professionals can bring them a much larger pool of borrowers than they would otherwise not have access to, therefore they offer Mortgage Professionals lower rates to attract more business. |
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Can a Mortgage Professional get me a personal loan? |
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No. We are licensed Mortgage Originators only. |
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What if I have been in bankruptcy? |
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As long as you have been discharged for at least a year, I can work with you. Give me a call so we can discuss your personal situation. |
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I have no money for a down payment but great credit and a good job, can you help me? |
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Yes! As long as you have been in the same industry for two years in a row, and your credit is great, I can get you into your first home with zero down. Some instances your credit can be less than perfect as well, call me or apply online today to get qualified! |
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How can I find out how much we can qualify for? |
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You can use my mortgage calculator, or apply today for a quick quote. |
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| Q |
I am a first time buyer but I have a lot of debt. Can I buy my new home and roll all my current debts into the mortgage so that I will have only one easy payment? |
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No, this is a general misconception. The only way you can "roll your debts into your mortgage" is when you already own real estate, and do what we call a "debt consolidation". This means that you refinance, and use the equity in your property to pay out your existing debts. |
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