The 8 Most Frequently Asked Mortgage Questions
- When should I obtain a mortgage pre-approval for an Ontario mortgage?
A. There are a lot of frequently asked mortgage questions about rates. There are also a number of frequently asked questions about how long rates can be held for. You should obtain a mortgage pre-approval if you plan on buying in the near future in order to secure an interest rate guarantee from the lender. There are a lot of frequently asked mortgage questions about rates. The interest rate can usually be held for 120 to 180 days. A pre-approved mortgage in Canada is based on the information you provide to us in your application and is subject to verification of conditions such as employment and down payment verification.
- Can I get a pre-approved mortgage before I find the home I want to purchase?
A. This is another frequently asked mortgage question and the answer is Yes. Our lenders offer pre approvals from 120 days to 180 days days. When it comes to new construction many lenders will extend that pre approval time to fit the construction schedule. Having a pre-approved mortgage will allow you to hold a great interest rate while you shop for or build a new home.
- How much can I qualify for?
A. Qualifying guidelines vary depending on the lenders criteria and products available. To find out exactly what you can qualify for, please submit your application for a quick approval.
- Can I use money gifted to me for a down payment?
A. Yes, most lenders will accept down payment that is gifted from a family member. A gift letter is usually required to be signed by the donor to confirm it is not a loan.
- What is the minimum down payment required to purchase a home in Ontario?
A. The minimum down payment is 5% to purchase a home in Ontario, subject to maximum price restrictions. In addition to the 5% you must be able to confirm that you can cover costs incurred to close your mortgage. These costs may include legal fees, appraisal fees, survey certificates etc. Subject to qualify, the 5% down payment can be borrowed with an additional default insurance premium added to the mortgage (an extra 0.15% if you are using a cash-back mortgage or borrowing the funds (from credit card, line of credit, etc.) as your down payment..
- If I have a declared bankruptcy can I still qualify for a mortgage?
A. Some lenders will consider your mortgage application depending on the circumstances surrounding your bankruptcy and your credit history since the bankruptcy has been discharged. The best way to determine if you can qualify for a mortgage after being discharged from bankruptcy is to call a mortgage consultant.
- What is required to obtain a first Ontario mortgage?
A. In most cases:
* Full time employment/proof of income
* Good credit rating
* Verifiable down payment
* Online Approval Application
8. What can I use for a down payment?
A. In most cases: * Registered Retirement Savings Plan (RRSP’s may be used as a down payment up to a maximum amount of 25,000 and is not subject to income tax if repaid within a specific time period: http://yourmortgagedoctor.com/first-time-home-buyers/
* Gift from immediate family:https://www.investopedia.com/terms/g/gift-in-trust.asp
* Accumulated savings
* Sale of existing home
* Sweat equity