When navigating the complex world of mortgages, having a reputable mortgage broker by your side can be invaluable. That’s where we come in.
We have been assisting clients since 2005, simplifying the process from Pre approval to Possession Date and everything in between.
To help you make informed decisions, we’ve put together a list of 10 of the best questions to ask your mortgage broker, accompanied by insightful answers.
Ready? Let’s dive in!
1. What are the best mortgage options for me?
Based on your financial situation, credit score, and goals, a fixed-rate mortgage might suit you for stability, or an adjustable-rate mortgage if you plan for short-term ownership.
We discuss your goals in detail and provide suggestions based on these conversations and current market conditions.
2. How much can I afford to borrow?
We take into consideration your income (including overtime and bonus), debts, and credit score. We can determine an affordable mortgage amount that aligns with your personal budget objectives and the lender’s approval guidelines. We can provide multiple calculations for your review.
3. What are the qualifications and requirements for this mortgage?
Requirements vary depending on the mortgage request, but generally, minimum requirements include credit score minimums, length of time you have had credit, employment history, income, and down payment amount. Every single request is unique, and we will work with you to provide the information you need to move forward or prepare for future home ownership goals.
4. What will be my monthly mortgage payment?
Your monthly payment includes principal and interest.
We’ll calculate this based on the qualifications for affordability, loan/mortgage amount, term, and interest rate.
5. Are there any prepayment penalties?
Yes, all mortgages have some kind of prepayment penalties (unless you choose an OPEN mortgage, which is unusual as the rate is typically significantly higher than other best rate options)
All the lenders we work with have flexible options to pay the mortgage off faster throughout the term chosen. We’ll explore options to find a mortgage that aligns with your plans, whether that includes early repayment or not.
6. What is the minimum down payment required?
This varies by loan type. Conventional loans typically require 20% down to avoid private mortgage insurance (for example, Canada Mortgage and Housing Corporation fees) but the minimum downpayment in Canada for owner-occupied property, second home/vacation homes, or a home for a family member, can be as little as 5%.
7. What additional costs should I anticipate?
Expect closing costs (e.g. legal fees) to be approximately $2,500 -$3,000 in Saskatchewan for a new home purchase.
Your costs will likely be less for a refinance (approximately $1,000-$1,500), and there are no legal fees for a renewal transaction.
There may be a need for an appraisal. In some cases, this cost is yours, in other cases, it is not. We’ll help you figure that out.
Every situation is unique and dependent on the downpayment, location of the home, type of home, and current market conditions. We will break down all costs you can anticipate at pre-approval.
8. How long will the loan process take?
The pre-approval can be completed within 24-48 hours or less. The quicker you are to provide the supporting documents and information requested, the faster we can confirm the details and process the information to provide detailed calculations and next steps.
The final mortgage approval request generally takes another 24-48 hours (assuming we have all the information on file). We ask for a minimum of 5 business days for financing approval. This minimum time frame is standard across Canada.
9. Is there a fee to use a mortgage broker in Canada?
No, the mortgage broker has a relationship with many lenders across the country, and their fee is paid by the lender. There are no hidden costs. In Saskatchewan, licensed mortgage brokers are regulated by the FCAA (Financial Consumer Affairs Authority), and we are directed to ensure we are always working in the consumer’s best interests.
Please note exceptions to charging fees would be regarding private mortgage transactions (ex: bad credit) or commercial mortgage requests.
10. What can I do to ensure a smooth loan process?
Stay responsive to requests for information, avoid major financial changes like new credit or job changes during the process, and provide accurate and complete documentation.
Remember, every borrower’s situation is unique, and the answers provided by our office, or any other mortgage broker will be tailored to your specific circumstances.
Don’t hesitate to ask detailed questions to ensure you fully understand your mortgage options.
