What can my Mortgage Specialist do for me?
A wide range of products and services are available.
- First mortgages on purchases or refinancing
- Consolidation second mortgages
- First mortgage renewals
- Debt Consolidation
- Lines of Credit
- Re-financing
An independent Mortgage Specialist, works for you, not a financial institution. Therefore, they can offer you impartial financial advice, without brokerage fees. (O.C.O)
The First Steps…
Pre-approved Mortgages
Getting your mortgage pre-approved is as simple as calling me. They can take your application in person or over the phone. In most cases, they will have a choice of lenders for you by the next business day. They will work with you to select the lender who is offering the best rate and supplementary mortgage terms.
The Down Payment
Home Buyer's Plan
You may be able to withdraw up to $20,000 tax-free from your Registered Retirement Savings Plan (RRSP) under Canada Customs and Revenue Agency's Home Buyer's Plan to add to your down payment or to cover other purchase-related costs. Your spouse or partner can do the same for a combined total of $40,000. To participate in this plan, you have to withdraw the amount from your RRSP using form T1036 - Request to Withdraw Funds from an RRSP under the Home Buyer's Plan
Conditions
- You have to make your withdrawal request in the same year you wish to participate in the Home Buyer's Plan
- You have not participated or owned a home within the last 5 years
You have to be a resident of Canada
Mortgage Insurance
What if you don't have 25% down?
If you purchase a home with less than 25% down payment of the purchase price as a down payment, the mortgage must be insured by either CMHC (Canada Mortgage and Housing Corporation) or GEMI (GE Capital Mortgage Insurance Company). This is referred to as a high-ratio mortgage. If you have a high ratio mortgage, you will have to pay a one-time insurance premium of between 1.00% and 3.25% of the total mortgage amount, depending on the size of your down payment.
The table below explains the amount of insurance premium owing depending upon the percentage of the purchase price that is being financed.
Purchasing Costs
Appraisal Fee:
An appraisal assigns a lending value to the property in question. Generally, the lending institution requires an appraisal. The cost for a conventional appraisal is $203.00.
Survey Cost:
A survey is not always required. The lending institution will advise if a survey is necessary. The survey ensures there are no encroachments on neighbouring properties that may present legal difficulties. The cost of a survey is generally $295.00.
Home Inspection:
An inspection is not a requirement of the lender, but is a good idea for the purchaser. An inspection will let you know if there are any major deficiencies with the property. The cost of an inspection is between $ 250.00 - $500.00.
Legal Fees:
Conveyancing or legal fees are always incurred with mortgages. Generally, legal fees are about $800.00.
Tax Adjustment:
If applicable, this is the adjustment to the property taxes owing on the property at the time of purchase.
Interest Adjustment:
If applicable.
Property Purchase Tax:
First time homebuyers who purchase a property for less than $275,000.00 in the Greater Vancouver and Central Fraser Valley are exempt from paying this tax. Other areas of B.C. are limited to a purchase price of $200,000.00. The cost for individuals who do not qualify under the first time homebuyer's plan is 1% of the first $200,000.00 and 2% on the balance.
