Mortgage Edge Broker License #10680. Mortgage Edge Agent - Fatima Santos License #M08006082

F.A.Q

WHY SHOULD I -- USE A MORTGAGE SPECIALIST?
MORTGAGE EDGE OFFERS YOU ALL YOUR MORTGAGE SERVICES UNDER ONE ROOF. OUR MORTGAGE SPECIALISTS ARE TRAINED IN MANY ASPECTS OF THE MORTGAGE SERVICE INDUSTRY. THEY CAN HELP YOU WITH MORTGAGE QUALIFICATION, BUDGETING, AND PLANNING FOR YOUR MORTGAGE NEEDS. THE MAJORITY OF OUR CLIENTS DON’T PAY US A FEE BECA– USE THE MORTGAGE LENDERS PAY US FOR GOOD MORTGAGE APPLICATIONS, MEANING CLIENTS WITH GOOD CREDIT, VERIFIABLE TAXABLE INCOME AND YOU HAVE THE DOWNPAYMENT FOR THE HOME YOUR LOOKING TO PURCHASE. IT JUST MAKES SENSE. WE ARE A GROUP OF PROFESSIONALS HERE “WHERE IT’S ALL ABOUT YOU”
HOW MUCH DOES YOUR SERVICE COST ME?

FOR A QUALIFIED RESIDENTIAL FIRST MORTGAGE, A BROKER FEE WILL NOT BE NECESSARY. THE LENDER WILL PAY OUR FEE. THE EXCEPTION WOULD BE IF THERE HAS BEEN A HISTORY OF POOR CREDIT, OR IN THE CASE OF COMMERCIAL, SPECIALTY TYPE FINANCING, 2ND’S, AND PRIVATE MORTGAGES.

WHY DEAL WITH A MORTGAGE SPECIALIST IF I CAN GET MY OWN FINANCING THROUGH A BANK?

MORTGAGE EDGE IS UNBIASED AND WILL SEARCH THE MARKET TO FIND WHO IS OFFERING THE BEST DEAL. WE HAVE MORE THAN 25 DIFFERENT LENDERS, FOR EXAMPLE: RATE AND PRE-PAYMENT PRIVILEGES, AND MORE. HOW CAN YOU POSSIBLY KNOW IF YOUR BANK IS OFFERING THE BEST DEAL UNLESS YOU HAVE SHOPPED AROUND EXTENSIVELY. FRUSTRATION, TIME AND MONEY CAN BE SAVED, WHICH MORE THAN OFTEN, ACCOMPANIES THE PROCESS OF MORTGAGE APPROVAL. MOST IMPORTANTLY THIS IS ALL DONE WITH ONLY ONE CREDIT CHECK.

WHAT ARE THE OTHER COSTS OF BUYING A HOME?
THE OTHER CLOSING COSTS RANGE ON THE AVERAGE BETWEEN 1.5% AND 2% OF THE PURCHASE PRICE FOR THE EXTRAS. THE EXTRAS SUCH AS: LEGAL FEES, TAX AND INTEREST ADJUSTMENTS, APPRAISAL COSTS, INSPECTION COSTS, AND LAND TRANSFER TAX. FEES FOR THE BUILDER, ANY BROKER OR LENDER FEES ARE USUALLY ABOVE THIS ESTIMATION.
HOW DO I START THE APPLICATION PROCESS?

SIMPLY CLICK ON OUR ONLINE APPLICATION AND WE WILL BEGIN BY PROCESSING YOUR APPLICATION AND DETERMINE THE MORTGAGE AMOUNT THAT YOU QUALIFY FOR. WITH YOUR APPLICATION YOU WILL STATE YOUR INCOME AND ANY OTHER DEBTS YOU HAVE INCURRED. THE AMOUNT YOU HAVE AVAILABLE ALONG WITH THE ABOVE AMOUNT WILL CONSTITUTE THE UPPER PRICE RANGE WHICH YOU SHOULD BE LOOKING AT. WE WILL HELP YOU TO ACQUIRE THE BEST OFFER, AFTER WE SECURE A COMMITMENT FROM THE LENDER.

WHAT TYPES OF PROPERTIES ARE ELIGIBLE?
RESIDENTIAL, 1 – 6 UNITS, OWNER OCCUPIED.
MULTI-UNIT INCOME PROPERTIES (NO LIMIT)
INDUSTRIAL AND COMMERCIAL
MULTI UNIT RESIDENTIAL DEVELOPMENT
COTTAGES, HOBBY FARMS AND RURAL
STORE WITH APARTMENTS UP TOP

AND MANY MORE.

WHAT LENDERS DO YOU DEAL WITH?

WE ARE AGENTS FOR MORE THAN 50 LENDING INSTITUTIONS AND HAVE AN UNLIMITED AMOUNT OF PRIVATE LENDERS. OUR SPECIAL MORTGAGE BROKER SERVICE ENABLES US TO PROVIDE YOU WITH THE BEST RATES POSSIBLE. IF THERE ARE NO PROBLEMS WITH THE APPLICATION, WE ARE PROMISED A RESPONSE WITHIN 4 – 8 HOURS FROM THE LENDER. WE ARE IN TOUCH WITH THEM DAILY, AND THIS ALLOWS US TO PASS ON ANY “RATE SALES OR SPECIAL PRODUCTS” WHICH ARE BEING OFFERED TO YOU OUR CLIENT.

HOW MUCH CAN I AFFORD TO PAY FOR A HOME?

OUR MORTGAGE SPECIALISTS* CAN HELP WITH THIS PROCESS. WE HAVE IMPLEMENTED A PRE-QUALIFIER FORMAT THAT WILL ENABLE US TO PROVIDE YOU WITH ACCURATE DETAILS OF WHAT YOU CAN QUALIFY FOR AND FOR HOW MUCH. THIS PRE-QUALIFIER WILL BE PREPARED FOR YOU BY YOUR FINANCIAL CONSULTANT. BY USING MORTGAGE EDGE’S SERVICES, YOU WILL BE GIVEN THE STEP BY STEP PROCESS FROM START TO FINISH ON HOW TO OBTAIN YOUR DREAM HOME.

HOW DOES BANKRUPTCY AFFECT MY ABILITY FOR A MORTGAGE?
IF YOU ARE A PREVIOUSLY DISCHARGED BANKRUPT THE BEST WAY TO ASSESS WHETHER OR NOT YOU QUALIFY IS TO TALK IT OVER WITH A MORTGAGE SPECIALIST*. THEY KNOW MANY LENDERS TO APPROACH WITH THIS PROBLEM. IT WOULD DEPEND ON THE CIRCUMSTANCES SURROUNDING YOUR BANKRUPTCY AND THERE ARE LENDERS WHO WOULD CONSIDER PROVIDING MORTGAGE FINANCING.

WHAT IS A PRE-APPROVAL AND HOW DO I GET ONE?
A PRE-APPROVAL IS CALCULATED ON INFORMATION GIVEN BY YOU. IT IS USUALLY SUBJECT TO CERTAIN CONDITIONS BEFORE IT IS FINALIZED: THINGS SUCH AS CONFIRMED EMPLOYMENT INCOME AND YOUR DOWN PAYMENT. THE GUARANTEED INTEREST RATE IS USUALLY 90 – 120 DAYS FOR A SPECIFIC TIME PERIOD.

MOST SUCCESSFUL REAL ESTATE PROFESSIONALS WILL INSIST ON KNOWING YOU HAVE A PRE-APPROVED MORTGAGE BEFORE THEY WILL BEGIN SHOWING HOMES. THIS IS TO MAKE SURE THE PROPERTY WILL BE WITHIN YOUR AFFORDABLE RANGE. TO GET A MORTGAGE PRE-APPROVAL, CALL YOUR MORTGAGE SPECIALIST*. THEY WILL IN TURN DETERMINE YOUR FINANCIAL SITUATION AND CALCULATE THE MORTGAGE RANGE IN WHICH YOU WILL QUALIFY. ALONG WITH THIS INFORMATION AND YOUR AUTHORIZATION, THEY WILL THEN PROCEED TO ARRANGE A PRE-APPROVED MORTGAGE, IF YOU WILL BE BUYING IN THE NEAR FUTURE.

PLEASE CONTACT US FOR FURTHER INFORMATION ABOUT A PRE-APPROVED MORTGAGE.

APPLYING ONLINE. HOW SECURE IS IT?
OUR SITE IS A SECURE SITE, ALTHOUGH IF YOU FEEL MORE COMFORTABLE YOU CAN PRINT OUT OUR APPLICATION AND CONTACT US WITH YOUR FAXED APPLICATION. YOU CAN ALSO HAVE ONE OF OUR MORTGAGE SPECIALISTS* VISIT YOU IN THE PRIVACY OF YOUR OWN HOME, OR YOU MAY DROP IN TO ONE OF OUR LOCATIONS.

WHAT IS A CONVENTIONAL MORTGAGE?
A CONVENTIONAL MORTGAGE DOES NOT REQUIRE MORTGAGE LOAN INSURANCE. IT IS USUALLY ONE WHERE THE DOWN PAYMENT IS EQUAL TO 25% OR MORE OF THE PURCHASE PRICE, WHICH IS A LOAN TO VALUE OF OR LESS THAN 75%.
WHAT IS A HIGH-RATIO MORTGAGE?
A HIGH-RATIO MORTGAGE USUALLY REQUIRES MORTGAGE LOAN INSURANCE AND MUST BE PROVIDED BY EITHER CMHC OR GE CAPITAL. IT IS A MORTGAGE IN WHICH THE AMOUNT TO BE BORROWED IS MORE THAN 75% OF THE PURCHASE PRICE OR THE APPRAISED VALUE, WHICHEVER IS LESS.

THE BENEFIT TO A BORROWER IS THAT IT ALLOWS THEM TO PURCHASE A HOME WITH LESS THAN 25% DOWN PAYMENT. THE INSURANCE PREMIUM IS PAID BY THE BORROWER AND CAN BE ADDED DIRECTLY TO THE MORTGAGE. THE MORTGAGE LOAN INSURANCE PREMIUM IS PAID TO CMHC OR GE AND PROTECTS THE LENDER IN THE EVENT THE MORTGAGE IS NOT REPAID AND THE BANK HAS TO TAKE BACK THE PROPERTY.

BORROWERS WITH A 5% DOWN PAYMENT WHICH IS A LOAN TO VALUE OF 95% WOULD PAY A PREMIUM OF 3.75%. THOSE WITH A 20% DOWN PAYMENT, A LOAN TO VALUE OF 80% WOULD PAY AN INSURANCE PREMIUM OF 1.25%. MORTGAGE LOAN INSURANCE PREMIUMS RANGE FROM .50% TO 3.75% OF THE MORTGAGE AMOUNT, AND ARE BASED ON THE OVERALL LOAN TO VALUE.

WHAT IS THE MINIMUM DOWN PAYMENT NEEDED TO BUY A HOME?
A MINIMUM DOWN PAYMENT OF 5% IS REQUIRED TO PURCHASE A HOME. ALTHOUGH, IF THE HOME IS OVER $250,000, YOU WILL REQUIRE A 10% MINIMUM DOWN PAYMENT. ALSO, YOU MUST CONFIRM THAT YOU ARE IN POSSESSION OF THE APPLICABLE CLOSING COSTS (FOR EXAMPLE, LEGAL FEES AND DISBURSEMENTS, APPRAISAL FEES AND A SURVEY CERTIFICATE, WHERE APPLICABLE).

REGARDLESS OF THE AMOUNT OF YOUR DOWN PAYMENT, AT LEAST 5% OF IT MUST BE FROM YOUR OWN CASH RESOURCES OR A GIFT FROM A FAMILY MEMBER. IT CANNOT BE BORROWED.

IF A FAMILY MEMBER GIVES YOU A GIFT AND YOU ARE USING IT AS DOWN PAYMENT, THE MONEY MUST BE IN YOUR POSSESSION BEFORE YOU APPLY TO CMHC FOR APPROVAL. IF THE MORTGAGE LOAN INSURANCE IS PROVIDED BY GE CAPITAL (GE), THE GIFT MONEY IS NOT REQUIRED UNTIL THE CLOSING DATE. LENDERS WILL USUALLY ACCEPT A GIFT FROM A FAMILY MEMBER AS AN ACCEPTABLE DOWN PAYMENT AS LONG AS YOU CAN PROVE IN WRITING (AND SIGNED BY THE DONOR) THAT IT IS A TRUE GIFT AND NOT A LOAN.

MORTGAGES WITH LESS THAN 25% DOWN MUST HAVE MORTGAGE LOAN INSURANCE PROVIDED BY EITHER CMHC OR GE CAPITAL.

CAN I GET A MORTGAGE TO PURCHASE A HOME AND MAKE IMPROVEMENTS?
YES, BUT THIS IS SUBJECT TO QUALIFICATION. EVEN A PURCHASER WITH 5% DOWN PAYMENT COULD QUALIFY. FOR HIGH-RATIO FINANCING, BOTH CMHC AND GE CAPITAL INSURED MORTGAGES ARE AVAILABLE TO COVER THE PURCHASE PRICE OF A HOME AND ALSO AN AMOUNT TO PAY FOR IMMEDIATE MAJOR IMPROVEMENTS OR RENOVATIONS. THIS ELIMINATES THE NEED TO FINANCE THE IMPROVEMENTS SEPARATELY. OF COURSE SOME CONDITIONS APPLY.

IF THE IMPROVEMENTS ARE TO BE STRUCTURAL, THE MORTGAGE LOAN INSURANCE PREMIUM IS INCREASED BY .50% OVER THE STANDARD SCHEDULE. IF IMPROVEMENTS ARE COSMETIC, THE MORTGAGE LOAN INSURANCE PREMIUM IS UNCHANGED FROM THE STANDARD SCHEDULE.

WHAT IS A CONVENTIONAL MORTGAGE?
A CONVENTIONAL MORTGAGE DOES NOT REQUIRE MORTGAGE LOAN INSURANCE. IT IS USUALLY ONE WHERE THE DOWN PAYMENT IS EQUAL TO 25% OR MORE OF THE PURCHASE PRICE, WHICH IS A LOAN TO VALUE OF OR LESS THAN 75%.
HOW WILL CHILD SUPPORT AND ALIMONY AFFECT MY MORTGAGE QUALIFICATION?
IF YOU RECEIVE CHILD SUPPORT AND ALIMONY FROM ANOTHER PERSON USUALLY THE AMOUNT YOU RECEIVE CAN BE ADDED TO YOUR TOTAL INCOME BEFORE DETERMINING THE SIZE OF MORTGAGE YOU WILL QUALIFY FOR. OF COURSE PROOF OF REGULAR RECEIPTS MUST BE AVAILABLE FOR A PERIOD OF TIME WHICH IS DETERMINED BY THE LENDER.

IF YOU ARE PAYING CHILD SUPPORT TO ANOTHER PERSON, USUALLY THE AMOUNT PAID OUT IS DEDUCTED FROM YOUR TOTAL INCOME BEFORE ASSESSING THE SIZE OF MORTGAGE YOU WILL QUALIFY FOR.

SHOULD I WAIT FOR MY MORTGAGE TO MATURE?
NO, HAVE A MORTGAGE SPECIALIST* START LOOKING AROUND FOR AN INTEREST RATE AT LEAST 90 DAYS BEFORE MORTGAGE MATURES. MOST LENDERS WILL GUARANTEE AN INTEREST RATE TO YOU AS MUCH AS 90 DAYS BEFORE YOUR MORTGAGE MATURES. AND AS LONG AS YOU ARE NOT INCREASING YOUR MORTGAGE, THEY WILL COVER THE COSTS OF TRANSFERRING TOO. THIS MEANS A RATE PROMISED WELL IN ADVANCE OF YOUR MATURITY DATE, WHICH WILL ELIMINATE ANY WORRIES ABOUT HIGHER RATES. AND IF RATES DROP BEFORE THE ACTUAL MATURITY DATE, THE NEW LENDER WILL USUALLY ADJUST YOUR INTEREST RATE LOWER AS WELL.

MOST LENDERS SEND OUT THEIR MORTGAGE RENEWAL NOTICES OFFERING EXISTING CLIENTS THEIR POSTED INTEREST RATES. THE RATE YOU ARE BEING OFFERED IS USUALLY NOT THE BEST ONE. ALWAYS ASK A MORTGAGE SPECIALIST* TO INVESTIGATE THE POSSIBILITY OF A LOWER INTEREST RATE WITH THE LENDER OR ANOTHER LENDER. IF YOU DON’T YOU MAY END UP PAYING A MUCH HIGHER INTEREST RATE ON RENEWING A MORTGAGE THAN YOU NEED TO.

SCAN I -- USE GIFTED FUNDS AS A DOWN PAYMENT?
MOST LENDERS WILL HONOUR FUNDS THAT ARE A GIFT FROM FAMILY AS AN ACCEPTABLE DOWN PAYMENT. A LETTER SIGNED BY THE DONOR AND STATING IT IS A TRUE GIFT AND NOT A LOAN IS USUALLY REQUIRED. IF THE MORTGAGE REQUIRES MORTGAGE LOAN INSURANCE, CMHC REQUIRES THE GIFT MONEY TO BE IN THE PURCHASER’S POSSESSION BEFORE THE APPLICATION IS SENT TO THEM FOR APPROVAL. IF MORTGAGE LOAN INSURANCE IS PROVIDED BY GE CAPITAL, THIS IS NOT A REQUIREMENT.
WHAT IS A HOME INSPECTION AND SHOULD I HAVE ONE DONE?
A PRE-PURCHASE HOME INSPECTION CAN ADD PEACE OF MIND AND MAKE A DIFFICULT DECISION MUCH EASIER TO HANDLE. IT MAY STATE THAT THE HOME NEEDS MAJOR STRUCTURAL REPAIRS WHICH CAN HELP YOU MAKE THAT BUYING DECISION. IT ALSO HELPS REMOVE A NUMBER OF UNKNOWNS AND INCREASES YOUR LIKELIHOOD OF A SUCCESSFUL PURCHASE.

IT IS A VISUAL EXAMINATION OF THE PROPERTY AND DETERMINES THE OVERALL CONDITION OF THE HOME. THE INSPECTOR SHOULD BE CHECKING ALL MAJOR COMPONENTS SUCH AS ROOFS, CEILINGS, WALLS, FLOORS, FOUNDATIONS, CRAWL SPACES, ATTICS, RETAINING WALLS, ETC. AS WELL AS ELECTRICAL, HEATING, PLUMBING, DRAINAGE, EXTERIOR WEATHER-PROOFING, ETC. THE INSPECTOR’S RESULTS SHOULD BE GIVEN TO THE PURCHASER IN WRITTEN FORM, IN DETAIL, USUALLY WITHIN 24 HOURS AFTER THE INSPECTION.

HOW MUCH DOES IT COST TO -- USE A MORTGAGE SPECIALIST*?
THE WORK OF A MORTGAGE SPECIALIST IS CONSIDERED A FREE SERVICE. IN SOME CASES ADDITIONAL FEES WILL BE APPLICABLE…..SEE OUR “ HOW MUCH DOES YOUR SERVICE COST ME?” SECTION. AS A RULE, WE ARE ABLE TO GET A BIGGER SHARE OF THE MARKET THEREFORE MOST LENDERS WILL PAY A FINDER’S FEE TO MORTGAGE BROKERS AND ALSO OFFER THEM THE BEST DISCOUNTED RATES AND FAST APPROVALS TO GET THEIR BUSINESS. THIS IN TURN WILL LET THE MORTGAGE SPECIALIST* SHOP AMONG THE VARIOUS FINANCIAL INSTITUTIONS FOR THE BEST MORTGAGE RATE AND PRODUCT THAT WILL SUIT THEIR CLIENT. THIS IS USUALLY DONE WITH NO COST TO THE CLIENT.

IN CASES WHERE TRADITIONAL LENDERS WILL NOT APPROVE A MORTGAGE DUE TO POOR CREDIT AND WHERE THE APPLICATION MUST THEN BE PLACED WITH A PRIVATE OR NON-TRADITIONAL LENDER, A BROKERAGE FEE MIGHT BE CHARGED TO THE CLIENT. IF THIS HAPPENS, THE COST MUST ALWAYS BE GIVEN TO THE CLIENT BEFORE IT CAN BE CHARGED.

WHAT ABOUT PREVIOUS CREDIT PROBLEMS?
IN MOST CASES WE CAN USUALLY SECURE A MORTGAGE FOR YOU PROVIDING THE SITUATION IS AS FOLLOWS:

YOU ARE NOW IN A POSITION FINANCIALLY, TO TAKE ON THE RESPONSIBILITY TO OWN YOUR OWN HOME. IN THE CASE OF BANKRUPTCY, IF YOU HAVE BEEN DISCHARGED FOR 24 MONTHS MINIMUM AND YOU HAVE RE-ESTABLISHED A GOOD CREDIT RATING FOR AT LEAST 12 MONTHS, 90 – 95% CMHC INSURED MORTGAGES ARE AVAILABLE.

A CONVENTIONAL FIRST AND SECOND MORTGAGE IS ANOTHER WAY TO OBTAIN A MORTGAGE IN CASE YOU DO NOT MEET CMHC REQUIREMENTS. IF YOU DO NOT HAVE A FULL INCOME CONFIRMATION, THERE IS A FEATURE WHICH IS ESPECIALLY GOOD FOR SELF- EMPLOYED INDIVIDUALS AND THESE LENDERS WILL APPROVE MORTAGES IN THE 65% – 85% RANGE. THESE RATES WILL DEPEND ON, CREDIT RATING, TYPE OF PROPERTY AND ON LOAN TO VALUE. IN THE RANGE OF 65% – 75%, FINANCING OF A MORTGAGE IS ALSO AVAILABLE, EVEN TO RECENTLY DISCHARGED BANKRUPTS. HOWEVER, THE RATE WILL NORMALLY BE 1 – 2% HIGHER. SOMETIMES IN SECONDARY FINANCING OR VENDOR TAKE BACKS, UP TO 90% AND POSSIBLY 100% IN SOME CASES. PLEASE DO NOT DELAY AND CONTACT US TO DISCUSS YOUR OPPORTUNITY OF SECURING A MORTGAGE. THIS WILL BE IN STRICT CONFIDENCE AND YOU WILL NOT BE OBLIGATED IN ANY WAY. NOT EVERYONE IS BLESSED TO GO THROUGH LIFE AND NOT HAVE FINANCIAL PROBLEMS. WE WILL DO OUR UTMOST TO HELP YOU QUALIFY FOR A MORTGAGE WHICH IS BEST SUITED TO YOUR PERSONAL NEEDS.