Question 1

What is a mortgage pre-approval?

Accepted Answer

A mortgage pre-approval is a preliminary assessment by a lender to determine how much they may be willing to lend you based on your financial information. It gives you an idea of the price range you can afford while house hunting.

Question 2

What is the cost for mortgage pre-approval?

Accepted Answer

Applying for a mortgage pre-approval is free and lender can hold the mortgage rate you are offered for 90 to 120 days.

Question 3

What factors determine mortgage eligibility in Alberta?

Accepted Answer

Mortgage eligibility in Canada is based on several factors, including your credit score, employment status, income, debt-to-income ratio, and the size of your down payment.

Question 4

What is the minimum down payment required for a mortgage in Alberta?

Accepted Answer

The minimum down payment required in Canada is 20% but you can buy a property valued up to $500,000 with 5% down with CMHC insurance.

Question 5

What is mortgage default insurance in Canada?

Accepted Answer

Mortgage default insurance, also known as CMHC insurance, is a type of insurance that lenders require if you are making a down payment of less than 20% of the purchase price of your home. It protects the lender in the event that you are unable to make your mortgage payments. The premium for this insurance is added to your mortgage amount.

Question 6

What is the home buying process in Canada?

Accepted Answer

The home buying process in Canada typically involves the following steps:

1. Get pre-approved for a mortgage before you start house hunting: You’ll need to provide a lender with details about your income, debt, and assets to get an estimated loan amount.

2. Start house hunting: You can start searching for a home either online or with a real estate agent.

3. Make an offer: Once you’ve found the right home, you’ll need to make an offer and negotiate with the seller.

4. Home inspection: Before closing, it’s important to get a home inspection to make sure the property is in good condition.

5. Closing: The closing is when all the paperwork is finalized and you officially become the owner of the home.

Question 7

What is the difference between fixed and variable mortgage rates in Canada?

Accepted Answer

Fixed mortgage rates in Canada are set for the duration of the mortgage term, typically 1-5 years. This means that the interest rate and monthly payments remain the same for the entire term. Variable mortgage rates are based on the prime lending rate, which fluctuates over time. The interest rate and monthly payments can vary throughout the term, depending on the prime lending rate.

Question 8

What are the closing costs in Canada?

Accepted Answer

Closing costs vary from province to province, but typically it is 1.5% of the property price and covers for lawyer fee, appraisals, mortgage default insurance, land transfer taxes, title insurance, and property taxes. Reach out &  we are happy to provide you with an estimate of the closing costs involved in your mortgage application.

Question 9

Should I get pre-approved for a mortgage before I start house hunting?

Accepted Answer

Yes. It's important to get pre-approved for a mortgage before you start house hunting. This lets you know exactly how much home you can afford so you won't waste time looking at properties that are outside of your price range. Your real estate mortgage broker will take you through the pre-approval process to secure the mortgage amount you need.

Question 10

Can I change the payment frequency for my mortgage?

Accepted Answer

Yes, you can change how often you pay your mortgage. You can choose monthly, semi-monthly, bi-weekly or weekly payments.

Question 11

How can I pay off my mortgage sooner in Canada?

Accepted Answer

There are a few ways to pay off your mortgage sooner in Canada. You can make additional payments on top of your regular payments, increase the frequency of your payments from monthly to weekly or bi-weekly, or make a lump-sum payment when you have the extra funds available. It is also important to ensure that you are getting the best possible interest rate on your mortgage. Mortgage PreApproval can help you find the best rates and terms available.

Question 12

Do buyers pay realtor a fee in Canada?

Accepted Answer

One of the most common questions that homebuyers in Canada have been whether they are responsible for paying realtor fees. In general, the property seller pays any real estate commission in Canada. This commission is typically split between the seller's and buyer's agents.

Question 13

Is now a good time to buy a house in Edmonton?

Accepted Answer

This depends on your personal financial situation and the current housing market. It is always a good idea to meet with your mortgage broker to discuss your options and determine the best time for you to purchase a home in Edmonton. Mortgage Pre-Approval can help you assess your current financial situation and provide you with the information you need to make an informed decision.

Question 14

What are the costs associated with buying a home in Canada

Accepted Answer

The costs associated with buying a home in Canada vary depending on a number of factors, including the location of the home, the type of property, and the amount of the down payment. Typical costs associated with buying a home include legal fees, land transfer taxes, mortgage loan insurance premiums, property taxes, and home inspection fees.

Mortgage Pre-Approval can help you understand all of the costs associated with buying a home in Canada and provide you with the information you need to make an informed decision.

Question 15

What is the ongoing monthly cost of owning a home in Canada?

Accepted Answer

The cost of owning a home in Canada can vary widely depending on the size of the home, the location, and the type of mortgage you choose. 
Generally, the ongoing costs of owning a home include mortgage payments, utilities, property taxes, home insurance, maintenance costs, and any other fees associated with the home.

It is important to make sure that you factor in all of these costs when budgeting for a home. Mortgage PreApproval can provide you with more information about the costs associated with owning a home in Canada.

Question 16

What is the mortgage stress test in Canada?

Accepted Answer

The mortgage stress test is a set of criteria used by the federal government to ensure that borrowers can still make their mortgage payments if interest rates were to rise. It requires lenders to make sure that borrowers can afford their mortgage payments at a rate that is the greater of the Bank of Canada’s conventional five-year mortgage rate or two percentage points higher than their actual mortgage rate.

Question 17

What should I consider before applying for a mortgage in Canada?

Accepted Answer

Before applying for a mortgage in Canada, work with your mortgage broker who can help guide you through the process and ensure you get the right mortgage.

Firstly, make sure you have the necessary financial documentation to get pre-approved. This includes proof of income, credit history, and other financial documents.

Secondly, get pre-approved for mortgage to assess your financial situation and ensure you can comfortably afford the mortgage payments.

It is important to consider the type of mortgage that suits your needs, the amount of money you can afford to borrow, and the terms and conditions associated with the loan.

Question 18

What are Cash Back Mortgages in Canada?

Accepted Answer

A #CashBackMortgage can be a great option, especially if you are buying your first home.

Its a type of mortgage that provides borrowers with a lump sum cash payment upon closing their mortgage. Getting 3% cash back on the total mortgage amount can be a big financial boost and provide much needed breathing room after closing on the most expensive purchase most people make. The funds can help pay for things like closing costs, renovations, and moving expenses.

It's crucial to conduct a thorough financial analysis and consider the long-term implications before choosing a cash back mortgage in Canada.