Frequently Asked Questions

A mortgage is a loan that is used to purchase a property. The property is used as collateral for the loan, and the borrower is required to make regular payments to the lender until the loan is paid off.

Your mortgage affordability will depend on your income, credit score, and other factors such as your existing debt and expenses. A mortgage broker can help you determine how much you can afford to borrow and what kind of mortgage would be best for you.

A fixed-rate mortgage has an interest rate that remains the same for the entire term of the loan, while a variable-rate mortgage has an interest rate that can fluctuate based on market conditions.

The minimum down payment required for a mortgage in Canada is 5% for homes that are less than $500,000, and 10% for homes that are more than $500,000.

The length of time it takes to get a mortgage approved can vary depending on the lender and the borrower's financial situation. On average, it can take anywhere from a few weeks to a few months to get a mortgage approved.

A mortgage broker is a professional who works with multiple lenders to find the best mortgage products for their clients, whereas a bank is a financial institution that offers mortgage products to their customers.

When applying for a mortgage, you will typically be required to provide proof of income, employment, and credit history. Other documents that may be required include your identification, proof of down payment, and proof of property ownership.

To improve your chances of getting approved for a mortgage, you should work on improving your credit score, paying off any existing debt, and saving for a larger down payment. It's also a good idea to work with a mortgage broker who can help you find the best mortgage products for your financial situation.

If you miss a mortgage payment, your lender may charge a late fee and report the missed payment to the credit bureau. If you continue to miss payments, your lender may take legal action to foreclose on your property. It's important to contact your lender as soon as you know you will miss a payment to discuss your options.

A pre-approval letter is a document issued by a lender that states that you qualify for a certain amount of mortgage financing based on your creditworthiness, income, and other factors. It's important to note that a pre-approval letter is not a guarantee of mortgage approval; the lender may still need to verify your information and approve the loan based on the property being purchased.

There are several types of mortgages available in Canada, including conventional mortgages, high-ratio mortgages, and refinance mortgages. Conventional mortgages typically require a higher down payment and have a lower interest rate, while high-ratio mortgages require a smaller down payment and have a higher interest rate. Refinance mortgages are used to pay off an existing mortgage and can be used to consolidate debt or make home improvements.

Yes, it is possible to change your mortgage term after it has been approved. However, it is important to note that doing so may result in a higher interest rate or additional fees. It's a good idea to speak with your lender before making any changes to your mortgage term.

Yes, you can make extra payments on your mortgage.

 A refinance mortgage is a type of mortgage that allows a borrower to pay off an existing mortgage and replace it with a new one. The new mortgage may have different terms, such as a lower interest rate, different amortization period, or a different type of loan.

The benefits of a refinance mortgage include:

• Lowering the interest rate and monthly payments,

• Shortening the loan term and paying off the mortgage faster,

• Consolidating debt and accessing the equity in your home,

• Changing the mortgage type to suit your financial needs.

To qualify for a refinance mortgage, you will typically need to have good credit, a stable income, and a sufficient amount of equity in your home. Your lender will also consider your debt-to-income ratio and your ability to repay the loan.

The cost of refinancing your mortgage can vary depending on the lender and your specific situation. Some of the costs associated with refinancing include appraisal fees, legal fees, title insurance, and discharge fees.

Refinancing may be right for you if you can qualify for a lower interest rate, you want to consolidate debt, you want to access the equity in your home, or you want to change the type of mortgage. It's important to speak with a mortgage broker or lender to determine if refinancing is the right option for you.

The length of time it takes to refinance a mortgage can vary depending on the lender and your specific situation. On average, it can take anywhere from a few weeks to a few months to complete the refinance process.

 It may be more difficult to qualify for a refinance mortgage if you have bad credit, but it's not impossible. It's important to speak with a mortgage broker or lender to determine if you qualify for a refinance mortgage and what options may be available to you.