Investment Properties

Options include increasing payment frequency, making lump-sum payments, and shortening the amortization period.

Closing costs include appraisal fees, legal fees, title insurance, land transfer tax, pst on default insurance if applicable and others. They generally range from 1.5% to 4% of the home’s purchase price.

Fixed-rate mortgages typically charge the greater of the Interest Rate Differential (IRD) or three months of interest. Variable-rate mortgages typically charge three months interest. *Pro Tip: Variable rate mortgages offer much more flexibility since the penalty to break the mortgage early is only three months interest.

Fixed-rate mortgages have a set interest rate for a term (usually 1-5 years), giving stable payments. 

Variable-rate mortgages fluctuate with the Prime rate and can result in savings if rates drop or additional costs if rates rise.

The stress test ensures borrowers can handle payments even if rates rise. You must qualify at the greater of your rate + 2% or the Bank of Canada’s qualifying rate, currently 5.25%. This test applies to both uninsured and insured mortgages, affecting the total loan amount you may qualify for. *Pro Tip: there may be changes to the stress test coming soon as Canada deals with the current housing shortage – Contact me for more details. 

The amount depends on factors like income, credit score, existing debts, and down payment. Mortgage lenders use a Gross Debt Service (GDS) ratio and a Total Debt Service (TDS) ratio to determine how much you can afford. *Pro Tip: Download my mortgage calculator app to run your numbers and see what you potentially qualify for:https://bit.ly/NicolesMyMortgagePlanner

The best interest rate you can get for a mortgage depends on several factors, such as:

1. Credit Score: Higher scores usually qualify for better rates.
2. Down Payment: with less than 20% down payment, default insurance is required and these insured mortgages typically have the lowest rates b/c the risk is lower for the lender.
3. Income and Debt-to-Income Ratio: Lenders favor borrowers with stable incomes and lower debt levels.
4. Loan Term and Type: Fixed rates for 5-year terms may differ from shorter terms or variable rates.

The most competitive mortgage rates available are typically reserved for high-ratio mortgages (those with a down payment of less than 20%) and may vary based on factors such as your credit score, income, and the specific lender. It’s advisable to compare offers from multiple lenders and consider consulting with a mortgage broker to secure the best rate tailored to your financial situation.

A financing condition allows you time to secure a mortgage approval before committing to the purchase. It protects you in case you’re unable to secure financing. To learn more, check out our blog post. The Risks of Not Having A Financing Condition in Your Offer to Purchase

You’ll typically need proof of income, credit history, employment details, property details, and other financial documents.

Yes, you can use gifted funds for a down payment, but there are specific requirements to follow.

Yes, a home inspection is recommended to identify any potential issues with the property before purchasing it.

The mortgage approval process involves several steps. You’ll need to provide financial information, documentation, and consent for a credit check. Lenders assess your creditworthiness, debt-to-income ratio, and other factors. They will determine the mortgage amount you qualify for and provide a pre-approval or approval letter. The process may vary slightly depending on the lender and your circumstances.