We are available Monday to Friday, 9am to 5pm in office to answer questions. You can give us a call at 519-539-6153 during this time and we are here to help.
Our staff is trained and well-rehearsed on answering almost any mortgage questions. Combined, our staff has over 20 years in customer service, and finance experience.
High work speed
We work to get you into your home, or to stay in your home as quick as possible. Working around the clock, we do all we can to get your financing completed stress-free.
Frequently asked questions
Unlike mortgage specialists, mortgage brokers don’t work for banks. They operate independently and must be licensed. They charge a fee for their service, which is mainly paid by the lender, depending on the deal. The fee is a small percentage of the loan amount, generally between 1% and 2%. When broker fees are to be paid by you, the borrower, it is typically when a mortgage requires private money. There are some exceptions to this, but we will be completely transparent on your costs up front.
Mortgage brokers must disclose all fees up front and can only charge that disclosed fee amount. Each fee should be itemized and the broker should be ready to tell you exactly what each fee was for. Fee costs can vary depending on the size of the loan.
Even if you get a flex (borrowed down payment mortgage), you are still required to have access to 1.5% of the purchase price of your home for closing costs. The following is a list of possible closing expenses.
Legal Fee and Disbursements
A lawyer will charge a fee for their professional services involved in drafting the title deed, preparing the mortgage, and conducting the various searches. The disbursements, on the other hand, are out-of-pocket expenses incurred, such as registrations, searches, supplies, etc. The actual fee that the lawyer will charge will depend entirely upon the deal between you and your lawyer. Be sure to ascertain exactly what this will amount to in a worst-case situation. A typical purchase transaction for a $200,000 property with one mortgage will range between $1,200 to $2,000 including disbursements. We recommend you call one or two lawyers and obtain a quote directly from them including both their fee and estimates of disbursements before choosing which one you’d like to use.
You should budget for insurance on your new home. Insurance costs can include default mortgage insurance, homeowners insurance, mortgage life insurance and title insurance.
Property Tax and Prepaid Utilities Adjustments
At the time of a sale, the lawyer for the buyer must confirm that local taxes have been paid up to date. If they are, a Tax Certificate is issued, from which any adjustments can be made – usually requiring the buyer to compensate the seller for any prepaid taxes. If they are not up to date, the municipality requires that the seller pay them off from the proceeds of the sale. Therefore, remember that if the previous owner has prepaid property taxes or other utilities for the year, they will be credited the prepaid portion on closing. Your lawyer will confirm this for you.
If your lender requires an appraisal report to be completed, it will have to be done before they hand over any mortgage money. They want to be assured that the property is worth what you are either paying for it, or valuing it for, and the cost normally ranges between $325 to $375 depending upon the location and complexity of the property.
A report commissioned by a property owner or purchaser, usually to verify the condition of a property prior to the “firming up” of a Real Estate transaction. The scope and detail may vary, but most reports indicate the specific problem and the cost to repair. Depending on the size and location of the property, a home inspection is around $350.
Interest Adjustment (IA)
If you arrange to make your mortgage payments monthly on the first day of the month, and your transaction closes after the first day of the month, your lender may charge you interest on closing up to the first theoretical payment date, called the Interest Adjustment Date (IAD). Your mortgage agent will calculate this for you. Remember, that all mortgages are paid in arrears so if your possession date is June 1st, and you choose to pay monthly, then your first payment will be July 1st. In this example there is no Interest Adjustment payable. However, if you moved in on May 29th, with your first payment on the first of the month, your first payment would still be July 1st, but there will be a three day Interest Adjustment (from May 29th to to the “official start date” of June 1st).
1. Come see a mortgage broker.
The first step in a home buying process, is to see if you will be able to afford one. Getting pre-approved before beginning the house hunt is ideal. You will know what you can work with, and what price range to shop in. Also, helps give you a leg up in the bidding wars, when you have been pre-approved for financing.
2. Talk to a realtor.
Realtors are the experts, and help you not only find the house you are looking for, but negotiate the price and conditions. They have sneak peeks into the houses that have yet to hit the market yet, and can help you get a feel for the neighbourhoods you are looking in.
3. Take your time!
This purchase is the biggest investment you will make in your life (probably). Make sure you use your head, and not your heart when house hunting. People get wrapped up in picturing their lives in a new home, and forget important aspects that may pop out of them after they put their offer in.
4. Put Your Offer In.
Review your offer a few times, and make sure you include all your conditions before signing. After the offer is accepted, back to the mortgage broker you go – and the paperwork begins.
5. Move In! (This is the exciting part)
A down payment is the amount of money that you put towards the purchase of a home. The down payment is deducted from the purchase price of your home. Your mortgage loan will cover the rest of the price of the home.
The minimum amount you’ll need for your down payment depends on the purchase price of the home you’d like to buy.
|Purchase price of your home||Minimum amount of down payment|
|$500,000 or less||
|$500,000 to $999,999||
|$1 million or more||
If you’re self-employed or have a poor credit history, you may be required to provide a larger down payment.
Normally, the minimum down payment must come from your own funds. It’s better to save for a down payment and minimize your debts.
“Usually people pick their homes before they pick the financing but it should be the other way around,”. She advises determining what you can afford before delving into your home search. Typically, your total housing costs — including mortgage principal and interest payments and heating and housing taxes, should not exceed 32 per cent of your gross monthly income. Your total debt load, including your home costs and other debts such as credit cards and car loans, shouldn’t exceed 40 per cent of your gross monthly income. A mortgage broker looks at your current sources of income and credit report to help you determine what type of home you can afford. – Genworth
Fixed and variable interest rate mortgages are the two most popular options. A fixed interest rate is set in stone when you sign for the mortgage; it won’t change for the entire term. A variable rate, however, will change according to market interest rates. While market fluctuations are hard to predict, “your broker can give you historical data and information around the economic cycle to help you make this decision,”. “The advice we give changes based on what the economy is doing.” Your broker will also determine your tolerance for risk and advise you on the best option based on your financial fitness. – Genworth.