**Rates subject to change without notice Last Updated: Friday, March 22, 2013
What is the difference between a high ratio mortgage and a conventional mortgage?
A conventional mortgage is a first mortgage where the amount of the loan does not exceed 75% of the appraised lending value of the property (you put less than 25% down). If the loan amount exceeds 75% then it is considered a high ratio mortgage. High ratio mortgages are typically subject to mortgage insurance through CMHC (Canadian Mortgage and Housing Corporation) as well.
How are Mortgage Agents able to acquire lower rates?
As brokers, we work with a wide variety of lenders, all of whom are competing for your business. Therefore we are able to demand the lowest rates and best terms available for our clients. Lenders understand that if they are not competitive, then they will not receive the business of our clientele.
What is required to Qualify for a Mortgage?
To qualify for the majority of mortgage products, you should have steady employment within the same industry and good credit history. There are however, lenders who will provide mortgage financing for alternative and unique situations as well.
What documentation will I need during the mortgage process?
If you do not have this required documentation, there are many lenders who will still lend with minimal documentation; however higher rates may apply.
- Confirmation of Permanent Employment:
- Employment letter and recent pay stub
- 2-3 years of tax returns
- 2-3 years of Notice of Assessments for Self employed and Business Owners
What documentation do I need to verify my down payment?
Down payment verification can be shown through any of the following: a gift letter from a family member, 3 months of bank statements, RRSP or investments statements, a notice of account from your lawyer showing net sale proceeds from the sale of home, or an existing mortgage commitment to show available equity.