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.

Set Realistic Expectations for Your First-time Homebuyer Mortgage

So you’ve decided to buy your first home in Edmonton: you’re doing reasonably well in your job and maybe want to move into a bigger place to start a family. Being a first-time homeowner can be challenging, especially in the current economic climate.

You may need to set realistic expectations regarding your first-time buyer mortgage rates. Before you can look around for securing a mortgage from the best mortgage brokers in Edmonton, there’s a checklist of items you need to conduct to ensure that you are financially ready to buy a new home.

Credit Report Check

Even before looking for a mortgage lender, order a copy of your credit report. Check to make sure you have a good credit score. Based on your credit score, a potential mortgage lender may

Refuse your application
Approve you for a lower mortgage amount or at a higher interest
Consider your application with a larger down payment
Have somebody to co-sign with you on the mortgage
Get mortgage loan insurance, even with a 20% down payment

Budgeting Wisely

You need to do a bit of homework on your current and expected future financial situation before seeking a mortgage for your new house. As you know, mortgage lenders will look at your financial records to determine if you can afford to pay your monthly mortgage rates in Edmonton.

Specifically, you need to have a closer look at your income before taxes, your expenses, loan amount requested, existing debts, credit score and amortization period.

Be aware that your monthly housing expenses should not exceed 35% of your gross household income. You may qualify for a mortgage even if your monthly housing expenses are slightly higher but you will be exposed to the risk of taking on more debt than you can comfortably pay back.

Moreover, you will need to make sure that your total debt load, including monthly housing costs plus other debts, does not go over 42% of your gross income. While you may still qualify for a mortgage with higher debt load, you leave yourself exposed to more risk of paying back the debt.

Stress Test

Before lending institutions such as banks and brokers can arrange for a mortgage for you, you will need to pass a stress test. This stress test will require you to prove that you can afford payments at qualifying interest rates in Edmonton. Generally, this rate is higher than the mortgage rate in your contract.

First-time Homebuyer Incentive Program

This program is intended to help qualified first-time homebuyers reduce their monthly mortgage costs without adding to their financial stress. This allows qualified homebuyers to finance a portion of their home purchase through a form of shared equity mortgage with the Canadian Government.

An incentive amount of 5% is available for the purchase of existing homes. On the other hand, an incentive amount of 10% is available for the purchase of newly constructed homes.

How To Set Realistic Expectations Regarding Your First-time Homebuyer Mortgage

Credit Report Check

Budgeting Wisely

Stress Test

First-time Homebuyer Incentive Program

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