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Q. What is a mortgage broker ?
A. A mortgage broker acts as an intermediary brokering mortgage loans on behalf of individuals or businesses. Mortgage brokers are regulated to ensure compliance with banking and or finance laws in the jurisdiction of the consumer. As markets for mortgages have become more competitive, the role of the mortgage broker has become more popular and has resulted in mortgage brokers being the largest sellers of mortgage products for lenders.

Q. Why use a broker ?
A.  Brokers are a wonderful part of your mortgage team. They assist you in getting the best mortgage possible. Your broker will explain and guide you through the entire process from the first call to the closing. Brokers have a wide range of lenders to chose from to secure the right mortgage.They'll save you time, stress and confusion.

​Q. How much home can I afford ?
A. We will be happy to calculate your affordability using acceptable ratios by major lenders. Often ratios will permit you to consider a home that has a higher payment than you are comfortable with. In this case you should not go above your comfort level. It's no fun to be "House Poor".

Q. What is CMHC ?
A. CMHC is Canada Mortgage and Housing Corporation, a smiliar supplier is Genworth and both supply mortgage insurance. Consumers often confuse CMHC and Genworth with life inurance or house insurance. It would be much less confusing if the word "insurance" was removed. The role of these companies to to provide default insurance to the benefit of the lender which means that they protect the lender from loss. If a home buyer buys a $100,000  house, they put $5000 down and get a $95,000 mortgage. At some point things don't go as planned and they default on the mortgage. The lender goes through mortgage sale proceeding, has to care for the property, pay taxes, pay the real estate company and when the house is sold and the file closed its very likely the bank will lose money. The mortgage insurance kicks in and pays the loss. CMHC and Gewnwoty charge a fee for this coverage which is added to the loan and included in the debt. Because the insurer is taking more of a risk than the actual lender the insurer must also approve the mortgage application which is why a high ratio or insured mortgage has a 2 part approval process.

Q. What is a variable rate mortgage ?
A. These are mortgages that carry an interest rate that will go up and down as the rate changes. Variable rate mortgages are not always the best for those that are not constantly aware of the cost of money.

Q. What is a fixed rate mortgage ?
A. A mortgage with a guaranteed interest rate for the length of the term of the mortgage. There will be several terms in a full amortization of your mortgage.  

Q. What is my amortization ?
A. Amortization is the full period of the loan, max. amortization is currently 25 years.

Q. How much down payment do I need ?
A. In most cases, at least 5% of the purchase price is required. This can be made up of savings, gifts, RRSPs, etc. If you feel comfortable enough to make a greater down payment you can do that as it will decrease the monthly payments of your mortgage.

Q. I have been bankrupt, can I get a mortgage ?
A. Former bankrupts can be considered for mortgages. Creating new, quality credit for a period of 2-3 years after bankruptcy is very important. Don't ever miss a payment ! Reasons for the bankruptcy can be important so share your reasons. Down payments higher then usual are common, higher rates and co-signers can also be a possiblity.

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