Q: Why should I use a mortgage broker?
A: As an independent mortgage professional, I’m not tied to any one lender or range of products. My goal is to help you successfully finance your home or property. I will start by getting to know you and your home ownership goals. I will then make recommendations on mortgage products based on your needs from a network of major lenders in Canada so your options are extensive.
Q: What is the cost of a mortgage broker?
A: There’s absolutely no charge for my services on typical residential mortgage transactions. How can I afford to do that? Like many other professional services such as insurance, I am paid a finder’s fee when we introduce trustworthy, dependable customers to a financial institution.
Q: Should I be pre-approved before I shop for a house?
A: Before you begin looking for your new home, you will want to know what your financial limits are. Obtaining a pre-approval lets you know exactly how much you can afford and allows you to shop with confidence. Additionally, you can lock in an interest rate in case interest rates rise before you purchase your home.
Q: What is the amount of the minimum down payment required?
A: The minimum down payment is 5% of the purchase price under $500,000.00. For houses over $500,000.00 you are required to have a 10% down payment for the portion of the purchase price that is over $500,000.00. You will only need a 5% down payment for portion up to $500,000.00.
Q: I don’t have the down payment required can I still buy?
A: The down payment can come from a variety of sources:
1. Savings- Funds from your personal savings.
2. Registered Retired Savings Plan- First time home buyers receive a tax break.
3. Gifted down payment from an immediate family member.
4. Borrowed funds from a loan or line of credit.
Q: What if I have poor credit?
A: A derogatory credit rating can be a problem, but it does not mean there is no hope. I can help put you back on the road to a good credit rating and have the freedom to borrow once again.
Ann Marie Drohan
East Coast Mortgage Brokers