Frequently Asked Questions
General Mortgage FAQs
Getting a mortgage in Canada can be a time consuming process so an organized approach can help to speed up the process towards a successful approval. The good news is that there are a number of mortgage resources available for first time home buyers and experienced home owners. See more
The Office of the Superintendent of Financial Institutions Canada (OSFI) is an independent agency of the Government of Canada, established in 1987 to protect depositors, policyholders, financial institution creditors and pension plan members, while allowing financial institutions to compete and take reasonable risks. See more
What is B20 and how it has changed the mortgage industry in Canada since the beginning of the economic slowdown in 2008. For this reason Lenders and Mortgage Default Insurers are requiring more supporting documents prior to approving your final mortgage application. It is best to gather as much documentation upfront as possible to ensure a smooth and accurate mortgage process. The following are examples of documents that may be requested to support your mortgage application.
In order to satisfy Canada’s anti-money laundering regulation governing the opening of a mortgage account lenders require two pieces of valid identification. See more
Here is a sample consumer credit report. For more information or to get your credit report visit Equifax or Transunion.
4 Simple Steps to get you out of Debt.
Reverse Mortgage FAQs
If your application for a Reverse Mortgage is granted, our agent will send you a Commitment Letter outlining your available funds, the main terms and conditions, and important details you should be aware of.
- keeping the status of primary residence
- paying real estate taxes
- upkeep of the property
- obtaining insurance
In the event that a borrower misses a recourse loan, the lender may take possession of a sizeable percentage of the borrower’s assets, including those that were not specifically included as collateral in the loan agreement.
Lenders normally require at least 15% to 20% equity in your home to qualify for a home equity loan or HELOC. A strong credit score is also necessary. A typical home equity line of credit requires a credit score of at least 620. A good credit score can also qualify you for a lower interest rate. In general, the better your credit, the lower your interest rate. A total loan-to-value ratio of 80% or less is also required by most lenders, as is a low debt-to-income ratio.
A home equity loan has a larger loan amount, a longer term, a lower interest rate, and typically takes longer to obtain than a home improvement loan.
You’ll need to know how much your house is worth, as well as have paperwork proving your household income, social security number, and any outstanding balances. A mortgage statement, a property tax bill, and a copy of your homeowner’s insurance policy will also be requested by lenders.
If you want to convert a variable HELOC to a fixed interest rate, you need first determine whether this is an option. Not all lenders permit this, but if they do, the process is rather simple. You will have the option of converting all or a portion of your balance to a fixed interest rate throughout the draw period.
You can even buy an Airbnb property using HELOC financing secured by your principal residence. The interest on the HELOC is deductible against your rental revenue in this circumstance. In contrast, if only a portion of the HELOC was used to buy the investment property, only a portion of the interest is deductible.
A balance transfer can be used to pay off your home equity loan.