What are the most common questions that our clients ask when they apply for their first mortgage, refinance or want to up-size?

Read our quick mortgage guide cheat sheet to see what are the most common questions and gain an invaluable knowledge on the process of getting your mortgage. For more details call Kelly Wilson at 613-266-3570.

If you’re in the process of applying for a mortgage or loan here are some of the most common questions:

1. What is a pre-approval?

2. What is the difference between fixed, hybrid and adjustable-rate mortgages?

3. What are closing costs?

4. Can I qualify to buy a new home if I recently changed jobs?

5. How do I know which mortgage solution or loan is best for me?

6. When should I refinance my loan?

7. What is CMHC Mortgage Insurance?

8. What’s in a mortgage payment?

 

Pre-approval

An in-depth assessment which gives you a pre-approval from the lender for a specific loan amount prior to purchasing a home. It also shows the seller and REALTOR® that you are serious about purchasing a home and gives you an advantage if someone else is interested in the same property.

Cost of a Pre-approval

By the way obtaining a pre-approval is free.

Fixed and Variable Mortgages

A fixed rate remains constant. The interest rate and payment is the same over the life of the loan. An adjustable rate mortgage (also known as an ARM), has a variable interest rate that may increase or decrease over the life of the loan. Monthly payments may increase or decrease with interest rate changes.

Closing costs

Closing costs are fees that both the buyer and the seller must pay for services performed to process and close the mortgage and other real estate transaction fees such as lawyer fees and commissions. Examples are: appraisal fees, title and recording fees, etc. These are in addition to the purchase amount and may vary by state. See here for a more detailed list for typical closing costs in Ottawa.

Change of Job

Your lender will evaluate your employment history and earnings along with other factors to establish a loan amount for you.

CMHC Mortgage Insurance

Mortgage loan insurance is typically required by lenders when home buyers make a down payment of less than 20% of the purchase price. Mortgage loan insurance helps protect lenders against mortgage default, and enables consumers to purchase homes with a minimum down payment starting at 5%* — with interest rates comparable to those with a 20% down payment.

Hope this Quick Mortgage Guide Cheat Sheet help you and call us for more information on the lowest mortgage rate solutions.