One of the first steps in the process of buying your home is finding out how much you can afford. Contact me for help identifying potential lenders and pre-qualifiying for your loan. Mortgage brokers want to be your source for mortgage advice providing help, advice and ongoing guidance. They simplify the financial side of home ownership
The legal contract of a purchaser and a seller go into. We recommend that you have your offer prepared by a professional realtor that has the knowledge and experience to satisfactory protect you with the most suitable clauses and conditions
The number of years it takes to repay the entire amount of the financing based on a set of fixed payments.
The process of determining the market value of a property.
What you own or can call upon. Often used in determining net worth or in securing financing.
A legal document signed by a buyer that requires the buyer to assume responsibility for the obligations of an existing mortgage. If someone assumes your mortgage, make sure that you get a release from the mortgage company to ensure that you are no longer liable for the debt.
Equal payments consisting of both an interest and a principal component. Typically , while the payment amount does not change, the principal portion increases, while the interest portion decreases.
CMHC is a federal Crown corporation that administers the National Housing Act (NHA). Among other services, they also insure mortgages for lenders that are greater than 80% of the purchase price or value of the home. The cost of that insurance is paid for by the borrower and is generally added to the mortgage amount. These mortgages are often referred to as ‘Hi-Ratio’ mortgages.
A mortgage that cannot be prepaid or renegotiated for a set period of time without penalties.
The date on which the new owner takes possession of the property and the sale becomes final.
An asset, such as term of deposit, Canada Savings Bond, or automobile, that you offer as security for a loan.
A mortgage up to 80% of the purchase price or the value of the property. A mortgage exceeding 80% is referred to as a ‘Hi-Ratio’ mortgage and the lender will require insurance for that mortgage.
A system that assesses a borrower on a number of items, assigning points that are used to determine the borrower’s credit worthiness.
A loan where the balance must be repaid upon request.
A sum of money deposited in trust by the purchased on making an offer to purchase. When the offer is accepted by the vendor (Seller), the deposit is held in trust by tht listing real estate broker, lawyer, or notary until the closing of the sale, at which point it is given to the vendor. If a house does not close because of the purchaser’s failure to comply with the terms set out in the offer, the purchaser forgoes the deposit, and it is given to the vendor as compensation for the breaking of the contract (The offer).
The difference between the market value of the property and any outstanding mortgages registered against the property. This difference belongs to the owner of that property.
A debt registered against a property that has first call on that property.
A mortgage for which the interest is set for the term of the mortgage.
It is one of the mathematical calculations used by the lenders to determine a borrower’s capacity to repay a mortgage. It takes into account the mortgage payments, property taxes, approximate heating costs, and 50% of any maintenance fees, and this sum is then divided by the gross income of the applicants. Ratios up to 32% are acceptable.
A person with an established credit rating and sufficient earnings who guarantees to repay the loan for the borrower if the borrower does not.
A mortgage that exceeds 80% of the purchase price or appraised value of the property. This type of mortgage must be insured. To avoid the cost of the insurance, a 1st mortgage up to 80% is arranged and a 2nd mortgage for the balance (up to 90% of the purchase price).
The date on which the mortgage terms will begin. This date is usually the first date of the month following the closing. Ths interest cost for those days from the closing date to the first of the month are usually paid at closing. That is why it is always better to close your deal towards the end of the month.
A mortgage on which only the monthly interest cost is paid each month. The full principal remains outstanding. The payment is lower than an amortized mortgage since once is not paying any principal.
A mortgage is a loan that uses a piece of the real estate as a security. Once that loan is paid-off, the lender provides a discharge for that mortgage.
The person who borrows the money using a mortgage
A mortgage for which the interest is set for the term of the mortgage
Principal Interest, and property tax due on a mortgage. If your down payment is greater than 25% of the purchase price or appraised value, the lender will allow you to make your own property tax payments
An existing mortgage that can be transferred to a new property. One would want to port their mortgage in order to avoid any penalties, or if the interest rate is much lower than the current rates.
The number of days the lender will guarantee the mortgage rate on a mortgage approval. This can vary lender to lender anywhere from 30 to 120 days.
When the mortgage term has concluded, your mortgage is up for renewal. It is open at this time for prepayment in part or in full, then renew with the same lender or transfer to another lender at no cost (we can arrange).
A debt registered against a property that is secured by a second charge on the property.
To transfer an existing mortgage from one financial institution to another. We can have this arranged for you at no cost to you.
The period of time that financing agreement covers. The terms available are: 6 month,1,2,3,4,5,6,7,10 year terms, and the interest rates will be ficec for whatever term one chooses.
It is the other mathematical calculations used by lenders to determine a borrower’s capacity to repay a mortgage. It take into account the mortgage payments, property taxes, approximate heating costs, and 50% of any maintenance fees, and any other monthly obligations (i.e. personal loans, car payments, lines of credit, credit cards debts, other mortgages, etc.), and this sum is then divided by the gross income of the applicants. Rations up to 40$ are acceptable.
A mortgage for which the interest rate fluctuates based on changes in prime.
A mortgage provided by the vendor (seller) to the buyer.