Lifestyle

Of Prime Interest: Common questions about mortgages

Today we would like to offer some answers  to questions commonly asked to mortgage brokers about financing a mortgage.

Is it true we can only get a 25 year amortization on our mortgage?

One of the changes to mortgage financing was reducing the amortization on mortgages with less than 20 per cent equity (high ratio mortgages) from 30 to 25 years.

The fact is, if you have a conventional mortgage with 20 per cent equity or more, you can obtain an amortization up to 35 years.

Why should we use the services of a mortgage broker?

A mortgage broker will work for you and obtain the best terms and conditions available in the market place.

We have access to several financial institutions that offer the best rates and pre-payment conditions. Also, we complete one credit check and we are paid by the financial institution, not you.

If my credit is damaged what can you do for me?

We can find a lender that will allow you to re-establish your credit to allow you to refinance with a major lender once your credit has improved. This allow you to get back on your feet financially.

What type of mortgage should we take?

We will walk through all the various scenarios with you and give you the options that will best suit your needs. It’s not just what is good for you right now but we ask questions as to your future requirements. We will make you aware of your prepayment options and help you save interest costs.

Why do we have to have a lawyer/notary involved with the mortgage?

A lawyer/notary will ensure the mortgage is in good standing and all previous charges are discharged so there will be no surprises later on that could adversely affect the title.

What does it mean if you have a “pre-approved” mortage?

Pre-approval means just that. In order to have a full approval all conditions have to be met. All the information must be submitted to the lender for the final approval. In the case of a property purchase that means: confirmation of employment, credit checks, an accepted offer to purchase appraisal if required and confirmation of down payment. In the case of a refinance: confirmation of employment, credit checks, mortgage statement if applicable and an appraisal if needed.

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