You need to provide your Mortgage Agent with a 3 year history of your residence and your employment history. You will also need to provide verification of your employment income through either a letter from your employer, a current pay stub or your current Notice of Assessment. You will also have to provide proof of your down payment.
What can I use for a down payment?
Can I get a pre approval now and then go look for a home?
Yes! You should always get a pre approval so you know how much you can afford to purchase. Depending on the lender you will receive a 60 to 120 day rate guarantee. This provides you with comfort while making the right offer on a property with your realtor. When interest rates are moving up and down you get the best of both worlds. You are protected from higher rates and if the rates fall you get the lower rate during this guarantee period.
What is A High Ratio Mortgage and the Insurance Premium?
Any mortgage that is higher than 80% of the value of the property is considered a high ratio mortgage. The mortgage insurers are one of three: Canada Mortgage and Housing Corporation (CMHC), GENWORTH AND AIG INSURANCE. They each provide insurance to the lenders in case of default. There is an insurance premium which is added to your mortgage to cover the mortgage amount. For more information on high ratio mortgage and insurance premiums, click on our Mortgage Basics link.
What costs are involved in obtaining a mortgage?
To better assist you, we have outlined in more details the possibly costs you could face upon closing under the Closing Costs link.
How long will this process take to complete the mortgage from start to finish?
Your mortgage pre approval will depend on you and how fast you can provide the necessary documentation for a pre approval including the income confirmation. Once that is obtained it should take 24 – 48 hours for an approval. Once you have made an offer on the house that you are purchasing, you should give 5 business days for the financing condition to be approved by the lender. The lender will go and get the insurers approval and have them determine the value of the property. When you are putting down 20% or more, then an appraisal will have to be ordered through an independent approved appraiser who has to be on the lenders approved list. All conditions have to be met before the financing condition can be removed from the Agreement of Purchase and Sale. The necessary information is then forwarded to your lawyer who will prepare who will prepare the mortgage documents for your signature and register it on title.
Why go through a Mortgage Broker?
We specialize in mortgages and we have access to more than one lender. We can find the best mortgage product to suit your financial needs as not all lenders offer all products. We can also provide you with broker rates which are lower than posted bank rates. Best of all, the Mortgage Agent works for you and it costs you nothing for these services in most instances. Click on our Why Use a Mortgage Agent to find more.
What if I have damaged credit or have been discharged from bankruptcy? Would I be able to qualify for a mortgage?
Yes, you can. We would have to look at your credit bureau and determine which lender guidelines you fall under. Contact one of our Mortgage Agents today to further discuss these options.
What if I have no down payment but my credit is good and I have a good job, can you help me?
Yes! You will have to be at the same job industry for a least two years total and your credit must be good to qualify for a cash back mortgage. You will need to come up with 1.5% of the purchase price from your own resources to cover closing costs.
How can I find out how much I qualify for with out filling out an application?
You can use Dominion Lending Centres Funds Corp.’s Mortgage Calculators to determine how much your gross income will be able to handle.
To learn more about the mortgage options available to you, clink on our Mortgage Basics link or contact one of our Mortgage Agents.
