FAQ and Resources
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Why should I use a Mortgage Broker?
When it comes to mortgages, there can be a lot to know! Do you go with a fixed-rate mortgage or a variable-rate? What are the terms? What are the penalties? Which is the best payment frequency? With so many questions and so many lender options, it can be hard to find the best solution for you. That is where a DLC Mortgage Professional can help.
Rate is only ONE of the many features in selecting the best mortgage product that meets your financial goals. With access to hundreds of lending institutions, Dominion Lending Centres Mortgage Professionals are familiar with a variety of mortgage products allowing them to help find the best mortgage for YOU! Plus, unlike banks, mortgage agents are a third-party service focused on YOUR needs. This means that you can get the best rates and unbiased advice all for FREE from someone whose only goal is helping you achieve your dream of home ownership.
What does it cost to use a Mortgage Broker?
The best part about using a broker is that it is FREE to use our services! Though rare and only in certain circumstances, if there are any fees or costs, they are all disclosed and discussed upfront.
How do I get in contact with you?
Call me at 780 717 2833 or email me at email@example.com
What is the minimum down payment required?
5% down payment is required at minimum to purchase a home in Canada.
Do I need good credit to get a mortgage?
No you don’t. There are mortgages available for every credit situation out there. Better credit and higher credit scores will allow for lower mortgage interest rates and lower down payments. Poor credit will require you to have a larger down payment and will be subject to higher interest rates.
What is the difference between a pre-qualification and a pre-approval?
Getting pre-qualified for a mortgage will allow you to have a general idea of how much you qualify for, what your mortgage payments would look like and more. However to be considered pre-approved, you will need to submit to your broker all the supporting documentation needed for finalizing a mortgage application. This can include income verification, down payment verification, existing property documentation, etc. A pre-approval is good for 120 days and during this time, you can lock in an interest rate that will protect you from possible increasing rates while you are out shopping for a home. If mortgage interest rates increase during that time, you are locked in at the secured rate, and if mortgage interest rates decrease during that time, you will get the lower rate. Win Win!
What are the costs associated with getting a mortgage?
You should budget to have a few extra thousand dollars over and above the funds set aside for the down payment. These are your ‘closing costs’. There will be legal fees associated with your mortgage to close the transaction and register the title in your name and all that back end legal work. Also most buyers like to get a property inspection done, and depending on your transaction the cost of an appraisal.
Can I get a mortgage if I am self-employed?
Yes you can! When you are self employed you win the paperwork lottery! It is best if you are self employed for a minimum of 2 years, or potentially less than 2 years if you are working in the same industry. It will be important to make sure that all of your income taxes, both personal and corporate( if applicable) are up to date.
What do I do when my mortgage is up for renewal?
You call me! Your existing lender will not always give you the most competitive renewal rate that is on the market. It is best to call me and we can take a look at your current situation, compare it to your future goals and shop around for a mortgage renewal! Other lenders are willing to take care of the legal costs to switch your mortgage over, so why not take advantage and see if you can save a few dollars!
What is the difference between and open and a closed mortgage?
An open mortgage means that you can break the term with no penalty. A closed mortgage means that there is a penalty to break the term before maturity. The penalty can be either Interest Rate Differential (IRD) or 3 months interest.
What is IRD?
IRD stands for Interest Rate Differential. This is a type of penalty that can be charged on a closed fixed rate mortgage term. It can be a very complicated calculation depending on the lender, however in simplest terms, the difference between your current rate and the rate at the time you break the term, multiplied by your remaining mortgage balance and multiplied by the time remaining in your existing term.
All I want is the lowest rate.
Though rate is important in a mortgage transaction, it is not the only factor you should consider. A lender with the lowest mortgage rate might have the highest penalty calculations. The terms of a low rate mortgage may be very restrictive and not allow you flexibility or freedom. If you are only focused on the interest rate, you may be setting your self up for disaster in the future. Make sure when you are considering a mortgage that you look at all the aspects, including, penalties, payment terms, privileges, flexibility, and rate.
What is the difference between a fixed rate and a variable rate?
A fixed rate will be locked in for the length of your chosen term and will not change. A variable rate is based on the Bank of Canada prime rate and can fluctuate when that rate changes.