Frequently Asked Mortgage Questions

What Is a Mortgage Broker?

A mortgage broker acts as the middleman between an individual and a financial institution. A broker, like one of the many professionals at our firm, works on your behalf with several different lenders to find a mortgage product with the most competitive interest rate.

Do Mortgage Brokers Charge Fees?

Most mortgage brokers do not charge their clients any fees. Their fees are paid by the lenders, rather than the borrowers. There may be cases where a broker charges a fee due to a very complicated brokerage process, but those cases are exceptions to the rule.

What Are Fixed-Rate Mortgages?

A fixed-rate mortgage is a loan with an interest rate that remains unchanged through the term of the loan. The primary benefit of a fixed-rate loan is that you are protected from unexpected increases in monthly payments and interest rates. The downside, however, is that you may be unable to capitalize on those periods when interest rates drop.

What Are Adjustable-Rate Mortgages?

An adjustable-rate mortgage (also known as an ARM) is a loan with an interest rate that fluctuates over time. The interest rates will change with the shifts in the market. The benefit of this loan is that you have a chance to capitalize on favourable market conditions. The downside, however, is that the scales may not always be tipped in your favour.

When Should You Refinance Your Mortgage?

Refinancing a mortgage is your chance at reducing interest rates and saving money. If market conditions have shifted in your favour, or your credit situation has improved since you first secured your mortgage, you have the opportunity to obtain lower rates and better terms.

Can a Canadian Newcomer Buy a Home?

Individuals who have immigrated to Canada within the last five years may be eligible for the New to Canada purchasing program. Under this program, down payments can be as low as 5%.

Can I Get a Mortgage if I Have Bad Credit?

If your credit score is 700 or above, you are likely to be eligible for a loan from one of the bigger financial institutions in Canada. If your credit score is below 600, you may still be eligible for a loan with another lender. There are many trust companies and financial institutions that cater to borrowers with troubled credit scores.

Can I Access Home Equity to Finance Home Renovations?

Home equity is a savvy way to finance a renovation project. Interest rates on loans secured with home equity are much lower than other types of loans, making it the perfect choice for a homeowner. That said, you must first be approved for refinancing before you access your equity.

Can I Renegotiate My Mortgage’s Interest Rate?

Some mortgage lenders permit borrowers to renegotiate certain specifics of your agreement before the mortgage term is complete. If your lender is unwilling to renegotiate your interest rate, you can apply for mortgage refinancing.