Renewals & Refinancing

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.

In Canada, the minimum down payment is 5% for homes valued up to $500,000. For homes priced between $500,000 and $1,500,000, the minimum is 5% of the first $500,000 and 10% of the remainder. Properties over $1.5 million require a 20% down payment. Pro Tip: Ask me how to get a down payment fast and build credit!

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.

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

The choice between fixed and variable-rate mortgages depends on your risk tolerance and market conditions. Fixed-rate mortgages offer consistent payments over the term, providing stability but might have slightly higher initial rates. Variable-rate mortgages can offer lower initial rates but come with the risk of fluctuating payments based on market interest rates.

In most cases, brokers are compensated by lenders, which means their services come at no direct cost to you. However, there are situations where brokers charge a fee, disclosed upfront, for their services. It’s essential to discuss fees with your chosen broker to understand the specifics.