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Frequently Asked Questions

1) WHY SHOULD I USE A MORTGAGE BROKER?

A mortgage brokers job is to work for you, unlike the staff of financial institutions who work for their own company. By using a Mortgage Broker you will have the resources of another person on your team, that is dedicated to getting you the best possible mortgage available through the financial industry.

We have availability and access to a wider range of products from more financial institutions, such as Banks, Trust Companies, Insurance Companies and Credit Unions, along with Private sources of finance. Interest rates are generally less because of the volume of mortgages we deal with and the fact that the Bank does not have to pay us as employees.

With our computer system we are linked to a wide range of mortgage lenders and can match your financial situation, to the best possible mortgage for you. Your mortgage will be tailored to your needs, instead of the banks.

2) SHOULD I BE PRE-APPROVED BEFORE LOOKING FOR A HOME?

You should obtain a pre-approval before you look. This will allow you to know exactly how much you can afford to spend on a new home. In addition to knowing how much you can spend, it will also allow you to secure an interest rate guarantee that can be held for 90 to 120 days. The pre-approval will be subject to employment and down payment verification as outlined in the pre-approval. If interest rates happen to drop, you can get the benefit of the lower rate.

3) HOW MUCH MONEY DO I NEED TO PURCHASE A HOME?

The minimum downpayment required to purchase is 5% of the purchase price or appraised value (which ever is less) of the home. In addition to the downpayment you must also prove that you have sufficient funds for legal fees and any adjustments for the mortgage.(referred to as closing costs). The downpayment can either be saved money or a gift from a family member. The 5% downpayment can not be from borrowed funds.

4) CAN I CONSOLIDATE MY DEBTS INTO MY MORTGAGE?

You have two ways of consolidating your debts, which will depend on how much money you will need. If your mortgage balance and debt you wish to payout is less than 75% of the value of your home, you can obtain what is referred to as a Conventional Mortgage.

An appraisal is done on your home to confirm the value and as a result you pay no CMHC fees on your mortgage obtained. The second way is, if the mortgage balance and the debt exceeds 75%, you can obtain up to 90% of the value of your home. Which will have to be approved by CMHC and is subject to a CMHC fee. We can help calculate the best way for you to go.

Please contact All Canadian Mortgage for further details.

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