Frequently Asked Questions
Q Can I buy a house with NO MONEY DOWN?
A Yes, if you have a good job and decent credit history we can get you 100% financing...fill out an online application and we will be able to tell you if you qualify.
Q What documents should I gather when applying for a mortgage?
A For salaried individuals, employment letters, recent pay stubs and/or T-4 slips are fine. For self employed individuals, new mortgage products are available that require only proof of being self employed for a min. of 3 years (Business registration), and confirmation that your previous years taxes have been paid by way of your most recent Notice of Assessment. Either way the bank will require proof that you have access to the down payment by way of photo copies of Investment statements or Bank accounts showing a 3 months history.
Q What other costs should I/we expect to pay on the day of closing?
A There is not an exact number that we can give you. You will have your lawyers fees plus disbersments, land transfer taxes, and sometimes Property Tax adjustments. If you are buying new construction you will also have various hook up fees and levies. We recommend that you take the purchase price of your home and set asside 2.0% of the purchase price as an estimate for your closing costs. Your lawyer can give you more specific details.
Q How does the amortization effect my mortgage?
A The amortization of your mortgage can have a huge effect on the amount of interest you will repay. A $150,000 mortgage with a 25yr. amortization will have a monthly payment of $977.61 With a 20yr. amortization the payment will increase to only $1,085.18 The potential savings in interest will now be $63,669.38!
Q When should I get Pre-Approved?
A The fact that you are at this site suggests you that are serious about purchasing a home so lets get you Pre-Approved. However, there are two steps to a Pre-Approval. The first step is to determine what your upper limits are when applying for a mortgage. This way, you can focus on specific properties. The second step in the Pre-approval process is to guarantee a rate ahead of time. This way it ensures that you receive the lowest rate between the time of the Pre-Approval and your closing date.
Q Which mortgage lenders does Assured Mortgage Service act as agents for?
A Many clients assume that we have some magic lender or source for our mortgage funds to provide these discounted rates. It is true that we do have some lenders who are not accessible to you, hovever people are often shocked when we tell them that their own bank may be one of the lenders that we act as agents for. A few of the lenders ar TD Canada Trust, CIBC, Bank of Nova Scotia, Bank of Montreal, National Bank plus many, many others.
Q What is your profit margin if you are able to offer rates that are l.25% lower than the Banks vs obtaining a rate that is 0.75% below the Banks posted rate?
A Mtg. Brokers don't get paid this way. For Bank qualified deals we are paid a referral fee from the institution we place the deal with. This referral fee is relatively standard through out the industry (no matter what Bank or lender we deal with) It is not dependent on the discount offered to the client. For instance, if the very best fixed 5yr mtg is 5.25% and I will get the same referral fee for recommending this mortgage vs. choosing another lender who offers 6.00% for a 5yr fixed rate. The difference 'other than the obvious rate difference' is that the lender offering the higher rate might have looser lending guidelines compared to the lender offering the 'deep discount'. Our job therefore, it to work with the client to get them the best mortgage that meets their needs.