FREQUENTLY ASKED QUESTIONS
Top Five Frequently Asked Canadian Mortgage Financing Questions
- 1. Where in Canada does MyMortgage.ca lend?
- MyMortgage.ca is a national Canadian mortgage brokerage company.
- 2. Does MyMortgage.ca pre-approve clients?
- Yes, MyMortgage.ca can provide quick no-obligation Canadian mortgage pre-approvals and approvals.
- 3. How long does it take to get a reply from
MyMortgage.ca? - For an online application MyMortgage.ca will reply to you within 24 hours of submission. If you have left a voice mail message for any of our mortgage associates we will do our absolute best to get back to you within 2 business hours. If you haven't heard from us by then, please call 1-866-509-1090.
- 4. Does MyMortgage.ca do commercial mortgages?
- Yes, MyMortgage.ca has a commercial mortgage specialist on staff.
- 5. Why use a mortgage associate?
- A Canadian mortgage associate can provide Canadian mortgage financing that is customized to your needs. Any one lender has a limited number of loan programs they can offer. In contrast, a mortgage associate, who represents dozens of lenders and virtually hundreds of loan programs, can customize a program to the borrower's specific needs and not be limited to the underwriting guidelines of one particular lender.
MyMortgage.ca's advice is impartial and based on what is in your best interest. No pressure and no ulterior motives.
Shopping for Canadian mortgages can be time consuming and frustrating if you do it yourself. MyMortgage.ca will step in to negotiate terms and conditions that are more favorable to you than those you would receive by working directly with the lender.
More Frequently Asked Canadian Mortgage Financing Questions
- Are there always penalties when I switch my Canadian mortgage to another lender?
- No. If you switch from one lender to another at your renewal date there will not be any penalties whatsoever. However if you switch before your maturity or renewal date there may be a penalty. If you have an open mortgage there probably will not be any charge. If you have a closed mortgage you will most likely have a charge. It is important to consult with a mortgage broker, like MyMortgage.ca so that you can determine whether or not a 'break and run' strategy will work for you.
- At the end of the term of my mortgage is the lender obligated to renew my mortgage?
- No. Then lender is not under any obligation to renew your mortgage. It does not 'automatically' renew. In fact if you have 'missed' or been late with any payments the lender could use this as an excuse not to renew with you. A loss of a job or a divorce may be another reason. But, in truth, no excuse is necessary for the lender to call in your loan on renewal.
- Can I get a Canadian mortgage on a Canadian rental property?
- Yes, MyMortgage.ca provides Canadian mortgage loans customized to suit a variety individual needs. Please call MyMortgage.ca at #1-866-509-1090.
- Do I have to take mortgage life insurance?
- Mortgage life insurance is not mandatory however, it is highly recommend.
- Do you have to own a home to qualify for a debt consolidation loan?
Yes, please see example below to see how you can save thousand of dollars by debt consolidating.
Current Situation
|
Balance
|
Payment |
Mortgage (@6%)
|
$160,000.00 |
$1,204.00 |
Car Loan
|
$18,000.00
|
$540.00 |
Credit Card/PLC
|
$15,000.00
|
$450.00 |
Penalty to break mortgage
|
$3,000.00
|
$0.00 |
| Total |
$196,000.00
|
$2,014.00 |
|
|
|
| New Mortgage |
Balance
|
Payment |
Mortgage (@4.95%)
|
$196,000.00
|
$1,134.00 |
Car Loan
|
PAID OFF |
$0 |
Credit Card/PLC
|
PAID OFF
|
$0 |
Penalty to break mortgage
|
PAID OFF
|
$0 |
Total
|
$196,000.00
|
$1,134.00 |
|
|
|
| Total Savings Per Month: |
$2,014.00 - $1,134.00 |
= $880.00 |
- Does a Canadian lender charge a renewal fee?
- Often a Canadian lender will attempt to charge a renewal fee or tempt you to renew without a fee if you sign within a certain 'time offer' at their posted rates. Please keep in mind that most Canadian major banks will waive this fee.
- I have a 5-year term with my mortgage what does this mean?
- Every mortgage has a start date and an end date. The end date is referred to the maturity date. The duration between the end date and start date is the term of your mortgage. You can choose terms of just 6 months, 1, 2, 3, 4, 5, 7, 10 or even a 25-year term. At the end of the term you can either pay off your mortgage or switch it to another lending institution.
- If I see a dramatic increase with mortgage interest rates should I immediately convert to fix mortgage?
- Absolutely not. We need to ask why an interest rate change is occurring and whether or not it appears to be a long-term trend or a short term 'blip'. For example, it is not uncommon to see a dramatic interest jump due to a constitutional referendum or a fear of a heated economy. These increase are usually short lived.
- Is it possible to get a Canadian mortgage through MyMortgage.ca if I am not a Canadian Resident?
- Yes, however certain conditions may apply. Please contact MyMortgage.ca to discuss your possible options.
- Is there a benefit to going with a bi-weekly payment?
- If you pay your mortgage every two weeks you will gain the benefit of an additional monthly payment each year. This extra payment allows you to pay off your mortgage faster and saves you money.
- Is there cost to use a mortgage associate?
- For Canadian residential mortgages there is no fee paid by the client (OAC). The lender compensates the mortgage associate for placing the mortgage with them. For Canadian commercial properties a mortgage associate will charge fees but will always put this in writing before any work is commenced.
- Is there ever a good time to break my closed mortgage and pay the prepayment penalties?
- Yes! A good rule of thumb is whenever making a change will result in a 1% interest rate saving. This is so popular that it is even has a name - the 'break and run' strategy in the Canadian lending industry. The improved rate change will absorb any prepayment penalty.
- Should I take a short-term Canadian mortgage or a long-term Canadian mortgage?
- The single biggest dilemma for Canadian mortgage borrowers has been whether or not to lock in to a long-term mortgage or short-term. History has shown that, overall, it has been financially beneficial to go short-term or variable.
- What can I do if I have variable interest rate mortgage and interest rates start to rise?
- Most variable mortgages give you the right to change to a fixed rate at any time. If you think the interest rise is not just a short-term fluctuation but will be a long-term trend you have the option of converting your mortgage into a fixed term.
- What is a fixed rate mortgage?
- The interest rate charged is a fixed amount and does not change during the term of your mortgage.
- What is a high ratio or insured mortgage?
- Whenever you need a Canadian mortgage loan that is greater than 80% LTV (loan to value) it is considered a high ratio or insured mortgage. If you are a first time home buyer then you can borrow up to 95% LTV and only need to come up with a 5% minimum down payment. The Canada Mortgage and Housing Corporation (CMHC) insures the lender in case you default on our loan. You must pay for this insurance premium, up front or you can add it to the mortgage.
- What is a variable interest rate mortgage?
- A variable rate mortgage is a mortgage that fluctuates up and down with the prime-lending rate.
- What is amortization?
- Your amortization is the total length of time it will take you to pay off your mortgage. Often when you first get a Canadian mortgage it is amortized over 25 years. The length of time to pay off your mortgage will be determined by the interest charge, the loan amount and the amount of extra payments you make.
- What is an open mortgage?
- An open mortgage gives you the most flexibility in making extra payments towards your mortgage principal and even lets you pay off your mortgage entirely whenever you wish to. If you have uncertainty in your life such as a serious illness, a looming separation or a possible job transfer to another city it is better to have an open mortgage. This way if you 'have to move' you can pay off your mortgage without any penalty. This could save you thousands in prepayment penalties. Warning! - Not all-open mortgages are created equal. Check with a mortgage broker, like MyMortgage.ca to see just how 'open' your mortgage is!
- What is the difference between a mortgage co-signer and a mortgage guarantor?
- A co-signer is placed on the mortgage and is registered on the title. A guarantor signs a document that personally guarantees the mortgage.
- Will MyMortgage.ca release my personal information to any third parties?
- In order to process your request, the financial institutions will need certain information about you. MyMortgage.ca ensures your information is transmitted over a secure data stream and housed on a secure server. Your non-public information is not sold or released to any third-party marketing companies, nor is it used for any other purposes other than the services you request.
www.mymortgage.ca
PHONE: 1.866.509.1090
FAX: 1.866.392.3672
Head Office
Unit 207, 4603 Varsity Drive NW
Calgary, AB. T3A 2V7
