Arranging a Mortgage
Mortgage Broker (lic# 316147)
The Mortgage Firm - Dominion Lending Centres (lic# 315912)
3889 Arcola Avenue E
There are generally two ways to obtain a mortgage in Canada: From a bank or from a "licensed mortgage professional"
While a bank only offers the products from their particular institution, licensed mortgage professionals like Kim Seifert, AMP for The Mortgage Firm - Dominion Lending Centres sends millions of dollars in mortgage business each year to Canada’s largest banks, credit unions, trust companies, and financial institutions; offering his clients unbiased advice, more choice, and access to hundreds of mortgage products and unpublished mortgage rates!
That’s why it’s important to talk to the experts. In this section RE/MAX and The Mortgage Firm bring you detailed information on home financing. You’ll find expert advice and the tools you need to make arranging a mortgage an easy and comfortable experience.
What are the General Mortgage Requirements to Qualify for a Home?
· The home is located in Canada.
· For CMHC-insured mortgage loans, the maximum purchase price or as-improved property value must be below $1,000,000.
· You will typically have a minimum down payment starting at 5%. For a purchase price of $500,000 or less, the minimum down payment is 5%. When the purchase price is above $500,000, the minimum down payment is 5% for the first $500,000 and 10% for the remaining portion.
· Normally, the minimum down payment comes from your own resources. However, a gift of a down payment from an immediate relative is acceptable. For eligible borrowers, additional sources of down payment, such as lender incentives and borrowed funds, are also permitted.
· Your total monthly housing costs, including Principal, Interest, Property Taxes, Heating (P.I.T.H.), the annual site lease in the case of leasehold tenure and 50% of applicable condominium fees, shouldn’t represent more than 39% of your gross household income (Gross Debt Service (GDS) ratio). Use the GDS form to calculate how much you can afford in housing costs to be eligible.
· Your total debt load shouldn’t be more than 44% of your gross household income. The Total Debt Service (TDS) ratio is your P.I.T.H. + the annual site lease in the case of leasehold tenure and 50% of condominium fees (if applicable) + payments on all other debt / gross annual household income. Add up your costs and determine your Total Debt Service ratio using the TDS form.
You also need to think about
closing costs (for example, legal and land transfer fees) equivalent to 1.5% of
the purchase price. Many first-time buyers are surprised by these costs. This
CMHC Home Purchase Cost Estimate
worksheet form will
help you calculate your total home buying costs.
Closing costs include but are not limited to one-time items such as lawyer fees, GST and PST as applicable, land transfer tax if applicable, adjustments, etc., to allow you to complete the house purchase.
· Other requirements may apply and are subject to change. For details, please contact Kim Seifert.
How Much Does Working With a Mortgage Broker Cost?
From the first consultation to the signing of your mortgage, a Mortgage Broker's services are free.
A fee is charged only for the most challenging credit solutions that lead us to look at Alternative Lending Solutions where finder's fees are not paid to the brokerage, and it’s especially under those circumstances that a mortgage professional can do for you what no other bank or financial institution cannot.
While many Canadians take advantage of self-employment opportunities, those who are self-employed sometimes face roadblocks when they are in the market to obtain personal financing, such as a mortgage or vehicle loan. Even though each self-employed scenario is different here is a basic overview to help get you started.
Purchase Plus Improvements:Genworth Canada, CMHC, and Canadian Guarantor can help qualified home buyers make their new home just right for them, with tailored improvements, immediately after taking possession of the purchased property. All this can be done with one manageable mortgage and with only 5% down. Genworth Canada provides a nice overview. You can use the Interactive Mortgage Calculators to see your payment options.
are designed for businesses and investors who wish to purchase or refinance
commercial, income producing properties and offer a flexible way to raise
Benefits of using a Leasing Professional at Dominion Lending Centres: A leasing
professional can help you in discovering multiple ways to structure lease
financing for new equipment, a sale-lease back to extract capital from existing
assets, or solve other equipment acquisition opportunities. Many of our lease
professionals are also mortgage brokers who can use commercial and residential
mortgage and property credit-line products alone or in combination with
lease-financing to help you achieve the best solution for equipment
For a List
of Mortgage Rates: Click Here
A mortgage is more than just a rate! With hundreds of mortgage products and over 29 lenders to choose from it would be best to discuss the correct mortgage option for you and your specific scenario.
Home Purchase Calculators:
Whether you're thinking of buying a new home, getting a home equity loan or line of credit, or refinancing an existing Mortgage, my Interactive Mortgage Calculators will allow you to explore your Mortgage options to make the right home financing decision.
Can't decide to keep renting or purchase a new home? With this easy to use Rent vs. Buy Calculator you can see the numbers for yourself.