Mortgage Top Questions

Are mortgage brokers free?
For most traditional mortgages, the cost is nothing to the client. The lending institution pays a referral fee to the brokerage once the transaction is complete. For private lending, there’s fees that are charged to the client from both the lender and the broker.
 

Do I need 10% to put down with the changes that came into effect February 2016?
Yes and No.. If you are purchasing an owner occupied residence, you may put 5% down on the first $500,000. For mortgages greater than $500,000 you’ll need to put 10% on the additional funds.

For example,
$600,000 purchase price:
$500,000 x 5% = $25,000
$100,000 x 10% = $10,000
Total down $35,000

 

What are the costs associated with getting a mortgage?
Legal fees, cost of appraisal (if the lender requires one), title insurance (depending on the lender), fire insurance and regular moving expenses. This is in addition to the mortgage insurance premium that will be added to the mortgage if you are borrowing more than 80% of the home value.. In some cases the premium will be added on even if you’re borrowing less than 80%.

 

What is Mortgage Default Insurance?
Mortgage loan insurance is typically required by lenders when homebuyers make a down payment of less than 20% of the purchase price. 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 with a 20% down payment.

To obtain mortgage loan insurance, lenders pay an insurance premium. Typically, your lender will pass this cost on to you. The premium payable is based on a percentage of the home’s purchase price that is financed by a mortgage. The premium can be paid in a single lump sum or it can be added to your mortgage and included in your monthly payments.

Mortgage loan insurance is not to be confused with mortgage life insurance which guarantees that your remaining mortgage at the time of your death will not be a burden to your estate.

 

How much are the premiums?









Do mortgage brokers only facilitate purchases?

No, we can help refinance your home to payout debt, secure a lower rate, purchase a vacation or rental property. We can also help with the renewal of your existing mortgage to ensure you’re getting the best rate and product that suits your needs.