WHY SHOULD I DEAL WITH MORTGAGE MAKERS INC. INSTEAD OF MY BANK?

We work for you, our client and we provide lending options from a multitude of lenders, banks included. This provides you with a wider selection of mortgage options and low rates. Every lender has their suite of products, our job is to make sure that you are getting the right mortgage product for you.

Nothing. Mortgage Makers is paid a finders’ fee by the lenders that we place your mortgages with – not by you the borrower. Our compensation is affected mostly by the size of the loan and the length of the term. 99% of the time we do not charge our clients a fee. Occasionally, however, and with full disclosure in advance, we may need to charge a fee in the event that we are securing specialty financing, such as a second mortgage, commercial mortgage, or some other unusual circumstance.

WHAT LENDERS DOES MORTGAGE MAKERS DEAL WITH?

We have access to a large lending pool which includes major banks, credit unions, trust companies, Mortgage Backed Securities lenders, and more! It’s our job to select the mortgage lender that offers the best product at the best rate to suit your specific needs. So your circumstances and the mortgage options you are looking for will determine what lender will best suit you.

HOW LONG WILL IT TAKE TO COMPLETE A MORTGAGE TRANSACTION?

That all depends on your deal, how fast you can provide documentation, which lender we are dealing with etc. For a stress-free closing you should plan on at least a month. That would include: taking the application, submitting the deal, signing the documentation, sending to lawyers and then funding. We have done and can do deals more quickly but this can in some case limit your lender options, most clients don’t want to be to rushed so we recommend possession to be about a month or so away.

WHY SHOULD I GET PRE-APPROVED?

There are a number of reasons to sitting with a mortgage professional and completing a mortgage pre-approval before you head out into the housing market. First, the pre-approval will give an an accurate idea of how much you qualify for or more importantly what mortgage amount coincides with the payment amount that fits your budget. We can also secure mortgage rate holds for up to 120 days and protects you against rate hikes during that time period. Being pre-approved also helps top speed up the final approval once you have found a property as much of the work has already been done. This process helps us to determine what types of documentation will be needed to finalize your mortgage giving you ample time to gather these items. Lastly many realtors prefer to work with clients who have done their homework ahead of time to make sure they are not wasting your time and theirs looking at the wrong properties. Don’t be fooled! Pre-qualification is not the same as Pre-approval! Make sure you are pre-approved, without actually evaluating your circumstances in advance and providing you a proper rate hold it can be tough to know what you qualify for, at Mortgage Makers we work through that process thoroughly to make sure you are ready to make that first or next real estate purchase.

WHAT ARE CLOSING COSTS?

Closing costs are those costs that are associated with obtaining and finalizing a mortgage. The most common closing costs can include some or all of the following, legal fees, appraisal fees, survey fees, title insurance, property tax adjustment, moving expenses and utility hook ups and Realtor fees.

CAN I GET A MORTGAGE TO RENOVATE MY PROPERTY OR PAY OFF MY UNSECURED DEBTS?

Most certainly. Lenders will allow you to access the equity in your home for a number of different reasons. Some clients borrow to complete home improvements, others to consolidate unsecured debt, some to invest in property or a business or even the stock market. There are many reasons for you to borrow against the equity in your home, let us show you how.

WHY DO I NEED TO PAY A CMHC MORTGAGE INSURANCE PREMIUM?

You pay a mortgage loan default insurance premium when you put less than 20% of the property value as a down payment. Smaller down payments translate to higher risk for the lender as the homeowner as less equity invested. Default insurance helps to protect the lender against mortgage losses should things lead to a mortgage default or foreclosure. The benefit of default insurance from a client’s standpoint? Well it provides those clients who do not have larger down payments access to the same lender and rates as those clients who do possess the 20% or more needed for conventional financing.

WHAT SOURCES CAN I USE TO SUPPLY MY DOWN PAYMENT?

Down payment funds can come from a variety of sources. It can come you’re your savings, investments, gifted funds from family members, RRSPs if you are a first-time home buyer and it can even be borrowed. This gives you lots of options to come up with the down payment funds needed for your first or next purchase.

First-Time HomeBuyer Incentive Program

The First-Time Home Buyer Incentive Program was created and administered by the Canadian Government as a way to help the first time home buyers navigate the home buying market with an interest-free loan. The program is designed to top up the down payment by 5% on the majority of homes and 10% on brand new home models. The loan is not due back until the house is sold or after about 25 years. There are several benefits to the program and it’s important to learn more about it and whether you apply. Read on to learn more about the first-time home buyer program and how it’s making homeownership far more affordable below.

How It’s Helpful

Higher down payments can result in a lower overall mortgage price by reducing monthly payments. The program does not have interest or regular payments and can often be repaired without you having to pay any prepayment penalties. When repaying the loan, the home’s value is calculated on the overall value of the home based at that time (5% for most homes and 10% for newer homes). This means that the home buyer is partially protected if there is a significant drop in the market.

Who Is the Program For?

The incentive is most commonly for the following:

First-time home buyers
Individuals overall household income has to be under $120,000
The down payment must be at least 5% or more
The down payment would have to be less than 20%

Is It Feasible In All Housing Markets?

While there are several home buyers across Canada that can benefit and qualify for the incentive program, some markets may be more challenging to find a home than others. These home buyers may find it exceedingly difficult to find a home that sells for a price that qualifies from the incentive. For example, the Toronto housing market is one where the FTHBI program may not qualify. The ability to use the program is largely based on each city and the income, how much of the down payment the prospective buyer is putting down and the price of the home they want to purchase.

Is The FTHBI Worth It?

Depending on the market and whether you qualify, it’s important to consider whether the FTHBI is right for you or too much of a risk. For prospective buyers that will be unable to pay the 5% down payment, the financial risk may be too high and not worth investing your time in. Even if you’re able to afford and pay the down payment, you could be stuck with rising interest rates and maintenance costs. It’s also important for buyers to be aware of any appraisal, legal and mortgage refinancing fees that could come later on.

The team at Mortgage Makers is committed to finding prospective home buyers the best mortgage rates in Edmonton. If you’re deciding to buy a home, you can count on us to provide you with the right knowledge and guide you through this exciting process to find a rate that fits your needs. Contact us today to learn more

Guide To Understanding The First-Time Home Buyer Incentive Program

How It’s Helpful

Who Is the Program For?

Is It Feasible In All Housing Markets?

Is The FTHBI Worth It?

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