Top 5 Questions to ask your Mortgage Broker in Canada

Introduction

When buying your first home or renewing your mortgage, choosing the right mortgage broker is critical in ensuring that you get the best mortgage product to suit your needs. There are many questions that you should ask your potential mortgage broker to ensure that they are the right fit for you. Here are the top 5 questions to ask your mortgage broker in Canada:

1. How much can I borrow for a mortgage?

2. How long have you been in business?

3. What is your experience with assisting clients in my situation?

4. What is the best mortgage rate you can offer me?

5. What fees are associated with a mortgage?

How much can I borrow?

This is perhaps the most common question asked of a mortgage broker. The answer depends on a number of factors, including your income, your debts, and your down payment. A good broker will make you feel at ease through the mortgage process.

In general, the higher your income and the lower your debts, the more you can borrow for a mortgage loan. If you have a down payment of 20% or more of the purchase price of the home, you will likely be able to qualify for a conventional mortgage. If your down payment is less than 20%, you will likely need to get a high-ratio mortgage, which usually requires mortgage default insurance.

Your mortgage broker can help you understand how much you can borrow and what kind of mortgage will best suit your needs.

What is the best mortgage interest rate you can offer me?

1) What is the best mortgage rate you can offer me?

Is a fixed-rate mortgage better than a variable in the market today?

2) What are the terms and conditions of the mortgage rate?

3) How long will the mortgage rate be locked in?

4) What are the fees associated with the mortgage?

5) How much can I borrow? How much will my mortgage payment be?

6) Do I need mortgage insurance?

What is the term of the mortgage?

The term of your mortgage is the length of time you have to pay back the money you’ve borrowed from your lender. In Canada, mortgage terms are usually either five years or less, or longer than five years.

If you have a short-term mortgage, you will have higher monthly payments, but you will also save on interest costs over the life of your loan. Longer-term mortgages usually have lower monthly payments, but they also mean you will pay more in interest over time.

When you’re considering a mortgage, be sure to ask your broker about the different options available and which one would be best for your situation.

What is the amortization period?

The amortization period is the length of time it will take to pay off your mortgage, based on your monthly payments. The standard amortization period in Canada is 25 years, but you can choose a shorter or longer period of time, depending on what works best for you. Your mortgage broker can help you determine which amortization period is best for your situation.

What is the minimum down payment?

In order to qualify for a conventional mortgage in Canada, you will typically need to put down a minimum of 20 percent of the purchase price — PandaTip: if you are putting less than 20 percent down, you will be required to purchase mortgage default insurance, which protects your lender in the event that you are unable to make your payments and default on your loan. The cost of this insurance is typically added to your mortgage balance and is paid off over the life of the loan.

If you are a first-time home buyer, you may be able to take advantage of special programs that allow you to put down less than 20 percent. For example, the Home Buyers’ Plan (HBP) allows first-time buyers to withdraw up to $25,000 from their RRSPs to help with their down payment (the money must be repaid within 15 years). You may also be eligible for a nested down payment program offered by some banks or provinces/territories, which can help reduce the amount of money you need to save for a down payment.

How to Choose the Best Mortgage Broker in Canada

A mortgage broker’s job is to Mediate between you and the lender, in order to get you the best deal on your mortgage. There are several things you should take into consideration when choosing a mortgage broker. Here are a few tips:

– First of all, make sure that your chosen broker is properly licensed.

– It is also a good idea to check if the broker is a member of any professional organizations.

– Furthermore, you will want to check if the broker has any complaints against them.

– Finally, it is always a good idea to ask for references from past clients.

What Does a Mortgage Broker Do?

A mortgage broker’s job is to help you find the best mortgage rates and terms that fit your needs. They do this by mediating between you and the lender and shopping around for the best deals on your behalf. Essentially, they act as a middleman between you and the financial institution.

Mortgage brokers are paid by commission from the lender, which means that their services are free to you.