Q: Why Deal With a Mortgage Broker?
A: Mortgage brokers work for you. They are not employees of lending institutions. Brokers have unlimited access to many products and will seek out the best lender package available, whether it’s with an insurance or trust company, a chartered bank, or private lender.
Understanding that the mortgage process can be a complicated and time-consuming effort for many Canadians, our mortgage brokers search for the best combination of pricing, interest rates, discounts, conditions, and overall value to you, the borrower. Choosing a trained professional will not only net you the best mortgage to suit your needs, but can also save you thousands of dollars.
The broker’s value is the expertise and knowledge that he or she possesses in mortgage-based financing, as well as the intimate understanding of each lender’s preferred type of lending. These are the factors that often determine whether your mortgage is approved or not, and if you can obtain the most competitive rates.
Q: Can I Use Money Gifted to Me for a Down-Payment?
A: Yes, most lenders will accept a gifted down-payment from an immediate family member, such as a mother, father, brother, sister, or grandparent. A signed gift letter is required from the donor(s), which confirms that the gift is a non-repayable loan.
Q: Do I Need to Switch My Banking Over to the Lender Chosen for My Mortgage?
No, you can maintain your existing bank account and will only need to provide a voided cheque for the mortgage lender to set up an automatic withdrawal for your mortgage payment.
Q: What Can I Use for a Down-Payment?
A: Accumulated savings, money from the sale of an existing property (equity), and gifts from immediate family members can be used as down-payments. Additionally, borrowers can use RRSP investments up to a maximum of $25,000. This amount is not subject to income tax if repaid within a specific time period.
Q: How Much Can I Qualify for?
A: The maximum amount that you can qualify for may vary from lender to lender, based on their criteria and available products. Please contact us now so we can help you to find the best options for your situation.
Q: How Can a Mortgage Broker Get a Better Rate Than My Own Bank?
A: The mortgage broker has direct access to lenders whose only service is lending money. Most of these lenders don’t have local offices in every city or town, and they don’t have the large overhead expenses that banks do. This fact, combined with the large volume of clients that brokers handle, allows them to be more competitive and offer lower interest rates than your bank.
Your mortgage broker stays current with the daily fluctuating interest rates that differ from one institution to the next, as well as preferences for various types of mortgage lending. The broker knows which lender to approach first with your application and can ensure you get the best rates. In fact, many institutions will only accept mortgage submissions directly from brokers.