What Should Be My Budget While Purchasing Home?
Before making a home-buying decision, calculate both the one-time and ongoing costs associated with buying and maintaining the home you want.
One-time costs may include:
- Appraisal fees
- Land transfer taxes
- CMHC / GENWORTH mortgage insurance application fee and insurance
- premium (if applicable) – may be added to the mortgage amount
- Moving expenses
- Legal fees
- Property and School Tax Adjustment
- Heating, Hydro and Water Adjustment
- Title Insurance
- Utility Connections
- Home Inspection Fee, if necessary
Ongoing housing costs include:
- Mortgage payments
- Home Insurance
- Property taxes
- Condominium fees (if applicable)
Your lawyer and real estate agent can provide estimates of some of these costs and should consult with you before you sign any documents or make any commitments.
What Is A “Low Ratio” And A “High Ratio” Mortgage?
Conventional – ‘Low Ratio’ – The mortgage loan amount is equal or less than 80% of the market value of the home. In other words, you have a down payment of 20% or more.
Insured – ‘High Ratio’ – The mortgage loan amount is greater than 80% but less than 95% of the market value of the home. In other words, you have less than 20% of a down payment. High ratio mortgages can be insured by Glenworth Financial Canada, a private insurer, or Canada Mortgage and Housing Corporation (CMHC), which operate under the National Housing Act (NHA).
What Will My Mortgage Cost Be Per Month?
You can use our Mortgage Calculator to determine approximate monthly payments.
Can I Pre-Arrange My Mortgage?
Based on your financial situation, we can provide you with a Pre-Approval Certificate that pre-qualifies you for a maximum amount of mortgage financing at a guaranteed interest rate for 120 days* from the certificate date. Subject to change.
Can I Increase The Amount Of My Existing Mortgage During The Term And Avoid Any Penalty?
Yes. When you wish to increase the amount of your mortgage to obtain additional funds or buy another property in Canada most lenders can provide you with a “blended fixed rate”. This rate is a blend of your existing mortgage rate and the fixed mortgage rate applicable to the additional funds requested. No interest penalty will be charged but the resulting term of the mortgage must be equal or greater than the remaining term on your existing mortgage. If you have a variable rate mortgage we can also provide additional funds; however, rate blending is not available and a modest interest penalty may apply.
Can I Take My Mortgage With Me When I Move?
Yes. Subject to credit approval, when you move from one home to another in Canada, you may be able to take your existing mortgage balance with you, at the same interest rate, for the remaining term. Alternatively, you may be able to combine your existing mortgage balance with additional financing at a blended rate to finance a new home (applicable to fixed rate mortgages only). No interest penalty
Can I Switch My Mortgage From My Current Lender To Another?
Yes, if you already have a residential first mortgage on your home in Canada with another approved lender, we can help you switch to one of our preferred lenders for the best possible interest rates. Certain conditions may apply and prepayment penalties or other costs may be charged by your current lender.
When Is Mortgage Insurance Required?
If the amount of the mortgage exceeds 80% of the lending value of the mortgaged property, the mortgage is considered “high ratio”. Accordingly, and as required by law, mortgage insurance must be purchased for the full amount of the mortgage. Mortgage insurance is available from CMHC, Genworth and Canada Guaranty. An application fee and an insurance premium (which can be added to the mortgage amount) are payable to the insurer.