Frequently Asked Questions
As an independent Mortgage Consultant I represent you, not the lender. I am
not an employee of any specific lending institution. This means I am not
limited in the number of lending products I can offer you. I will help you
find and negotiate the best lender package to suit your specific situation,
whether it’s with a Chartered Bank, Trust or Insurance Company.
Less time is another advantage. “Shopping around” for the best options takes
a lot of time and effort - Understanding which lending product is right for
you can be confusing. Choose the wrong product, and it can cost you
thousands of extra dollars. Also I will pull your credit once and do your
shopping for you. If you do the shopping this will be hard on your credit
score. I am trained and experienced in helping you save money on your loan
and will give you tips and advice that will help over the life of your home
ownership. I will help plan your mortgage and your mortgage future.
Why Shouldn’t I Just Go To The Bank Instead?
There are a number of benefits you get working directly with me. Faster
approval times - Getting lower than best posted bank rates - A personal,
stress-free and informative experience - efinancing and Debt Consolidation
planning at absolutely no cost - Hundreds of lending options - And unbiased
advice, are just some of the benefits you can expect.
How Are You Faster Than Other Mortgage Agents?
In one word: Experience! Karen will respond to your call or email normally
within 1 hour, work with our team to process the paperwork and red tape as
quickly as possible, and in many cases, have a pre-approval back in your
hands as quickly as 4 business hours after submitting an application. Banks
and other agents often take much longer.
If Your Service Is Free, How Do You Get Paid?
My compensation comes directly from the lender (that you ultimately choose),
as a “referral fee” for doing the leg-work on your refinancing. I negotiate& secure the best rates and terms for you, while adding no direct cost to
you or on your home refinance loan or consolidation. Lenders prefer this
arrangement because of the savings of not having to pay any hourly employees
to handle your application. You save and the lender saves. Some may call it
a win-win arrangement.
If I Refinance To Consolidate My Bills, How Much Can I Expect To Reduce My
Monthly Payments By?
Although a lot depends on how much debt you have, and how long you want to
take to repay the loan, but reductions in monthly payments can be as high as
75%.
Will Refinancing Erase My Bad Credit Debts?
Unfortunately, you can’t “borrow” a way out of debt. However, with the right
refinance loan, you can greatly speed up the process and make it much more
manageable. Less payments. Less Interest Costs. More Extra Money Each Month.
Debt Paid Off Sooner.
Why Get Pre Approved??
Before you fall in love with a home, you'll want to know that your financing
has already been arranged. Get a Pre Approval from our team and shop for
your first house with confidence.
A Pre-Approval for your Mortgage ensures:
- A guaranteed interest rate1 for 120 days from the effective date of
the Pre-Approval.
Plus, did you know:
- Many real estate agents may encourage you to get a pre-approval before they begin working with you.
- The fact that you already have your mortgage financing arrangements
in place indicates to prospective vendors that you are a serious buyer.
- It gives you the security of negotiating a house price that falls
comfortably within your budget.
- A Pre-Approval is absolutely free, with no cost and no obligation.
I am very concerned about what is happening in the U.S. and everyone says it
will happen here, is it really a good time to buy a home or refinance?
Of course it is a good time to buy or refinance! What has happened in the
U.S. has affected the global economy, but mostly because there just isn't as
much money out there to loan consumers. Recently our Finance Minister announced that Canada's banking system has been rated #1 in the world for
stability and security. We are the most safe. Canada has always been more
conservative than the U.S., the U.K., and Australia. Our lenders have
removed products that they "deemed" to be higher risk, such as the 40 year
amortization and zero down products, but it is business as usual in Canada.
Now is the time to take advantage of the lower priced real estate, and
record breaking low interest rates. IF you can buy - NOW is the time to buy,
hands down. Don't wait for property prices to go down lower or you may miss
this extraordinary opportunity.
What is a high ratio or insured mortgage?
A high ratio mortgage is any mortgage that is higher than 80% of the value
of the property. The Canada Mortgage and Housing Corporation (CMHC) or
Genworth insures the lender in case of default on the loan.
This insurance is added to the amount of your loan and it is then blended
into your payment schedule. These fees can be as high as 6.60% of the
principal, depending on the product you need to utilize. There are several
options for high ratio mortgages, call me today if you have any further
questions.
I have a 3 year term with my mortgage, what does that mean?
Every mortgage has a start and an end. At the end of your term, it is called
the ‘maturity date’. Anyone can choose a term of any amount from 6 months to
25 years. This is different from your "Amortization". The amortization
allows you to base the payment on a repayment of 25+ years. Without this,
mortgage payments would be too high for anyone to afford.
On the maturity date of your term, you can either choose to go with a
different lender and a different product, or you can accept your lenders
invitation to renew your term. These offers are usually based on the Bank
Posted rates, which are about 2% higher than what I can get for you.
I don't want a 35 year amortization, I don't want to take 35 years to pay
off my mortgage!
This is a response I hear every day. There are many uses for a 35 year
amortization, and the main use is to make it more affordable to get into a
better property right now. If you are purchasing your first or second
property, and NOW that you will not spend the rest of your life there, this
is a good time to consider a 35 year amortization. A 35 year am allows you
to qualify for a higher purchase price, and keep the payments lower, and
more affordable. Once you sell that property, and buy your "forever" home,
this is when you may want to think about a lower amortization. Keep in mind
there are many ways to pay down your principal, while still enjoying the
lower payment of a 35 year amortization. Mortgages in Canada come with"pre-payment" allowances of between 15-20% of the original mortgaged amount
once per year, as well as increasing your monthly payments as well. At the
end of your term, i.e. 5 yr fixed or 3 yr fixed, you have the option of
choosing a different amortization again. So you may need the lower payment
for the first 5 years, but at the end of that term, you do have the choice
of reducing the amortization to a level where you are paying down the
principal more aggressively.
Does a lender charge for renewing my mortgage, and do they always offer me
the best rate upon renewal?
When your are renewing your mortgage with your current lender, they may at times charge you a fee, or try to lure you to renew by offering ‘no fee’.
Banks send out renewal letters to consumers, and most consumers will simply
accept the terms without realizing that they have been offered a much higher
rate than what a Mortgage Professional can give them.
Be pro-active, call me today to make sure you are getting the best possible
product AND rate.
When is it a good idea to break a closed mortgage and pay the penalty?
It is a good idea when the cost of the penalty and legal fees are small in
relation to the money saved on obtaining a lower mortgage rate over the
term.
I have a variable rate mortgage, when do I know when it is a good time to
lock in?
A good time to lock in is upon the advice of your broker. If you feel that
the market is getting unstable, give me a call and I will help you to
understand what the market trends are, what the economists are saying so
that you will have some knowledge to make a good decision for your personal
situation.
I live in Calgary and need to get on the TIPPS program for monthly installments of my property taxes. Who do I contact to arrange that?
Why do Mortgage Professionals get such good rates?
Mortgage Professionals work with many different lenders, all of whom are
competing against the next. They recognize the fact that Mortgage
Professionals can bring them a much larger pool of borrowers than they would
otherwise not have access to, therefore they offer Mortgage Professionals
lower rates to attract more business.
If I Have A Low Credit Score Or Have Filed For Bankruptcy In The Past, Am I Still Eligible To Refinance?
Most people have either credit issues, difficult situation and/or in some
cases, previous bankruptcy. To date, I have been able to help many clients
successfully process their refinance loan. And we’re certain that he can
help you too… But the only way to know for sure, is to call me at
403-781-6665 or 1-888-832-6112.
