Frequently Asked Questions
Top Mortgage Related Questions
Your bank is only 1 lender and therefore only has 1 set of rates and products to offer you. A mortgage broker has numerous lenders available to them. All these lenders compete for your business so they are offering the very best mortgage rates possible. Whether it is a Chartered Bank, Trust Company, Mortgage Lender or Private Mortgage Company, Canada Mortgage Team knows where the best rates can be found with the prepayment privileges that are important to you.
Yes. Because your bank is competing with all the other lenders for the mortgage broker business, they offer the mortgage brokers the lowest rates they can. This often results in a better mortgage rate for you than if you applied on your own.
In most cases, the lender pays the brokerage firm. You pay nothing! Sometimes fees may be charged for securing second mortgages or larger commercial mortgages.
A Co-signer is registered on title with you. A guarantor guarantees the mortgage, and that the payments will be made. After a period of time, a guarantor can apply to CMHC/GE to be removed off title should the owners of the property be able to qualify on their own.
A Mortgage Broker knows all the different rules and mortgage products offered by each lender and therefore knows where you would have the best chance of getting approved. This helps you to get a quick approval with a great rate. Your mortgage broker will also explain the mortgage commitment in detail and let you know what documents are required.
No. But sometimes it is a good idea to get either mortgage insurance or term insurance. Knowing that your house would be paid off if something should happen to you, gives you peace of mind.
No. A mortgage broker does the shopping for you, so you don’t have to. When you go into bank #1 and apply for a mortgage, bank #1 pulls a credit bureau. Then you go into bank #2 and apply for a mortgage, bank #2 pulls a credit bureau and so on. Every time a credit bureau is pulled on Equifax, you lose points on your beacon score. Your beacon score is a score that rises with good credit and lowers with bad credit or too many inquiries. The beacon score is how many lenders determine if you are a good risk. By applying at Canada Mortgage Team, we pull one credit bureau and have the capabilities of sending that same credit bureau to any or all of our 40+ lenders should it be necessary. Our lenders include companies such as Chartered Banks, Credit Unions, Trust Companies, Mortgage Companies and more.
Are there some questions still unanswered? If so, please dont hesitate to contact us.