City Homes Financial.
Whether you are a first-time homebuyer or an experienced buyer, The Collin Bruce Mortgage Team can provide you with access to the best mortgage products and rates across Canada. Let them educate you on no-down-payment mortgages, self-employment programs, rental purchase programs, vacation property programs, and other financing alternatives. Start the process by getting pre-approved, and lock in your rate for 120 days while you shop. They can help you get into your new home much sooner than you expect.
When you are pre-approved for a mortgage, you’ll know exactly how much you can afford before you start your home search. The Collin Bruce Mortgage Team can let you know what you can afford based on your salary, lender criteria, and insurer criteria, and they can tell you what your monthly payments will be.
They can explain the benefits of short- and long-term mortgage terms, the latest programs available, the best mortgage products for your needs, and the other costs associated with buying a home.
They can lock in interest rates for up to 120 days while you shop. By locking in this interest rate, you are guaranteed to receive a mortgage for that rate or better. If rates drop, your locked-in rate drops as well. But if rates go up, yours stays the same. This ensures you will receive the best rate throughout the pre-approval process.
Home buyers can have difficulty choosing between a fixed rate or variable rate mortgage. The decision will depend on your tolerance for risk and your ability to withstand increases in your mortgage payments. Market conditions also play a huge factor in the choice between a fixed or variable rate.
Fixed Rate Mortgages
Fixed rate mortgages appeal to people who prefer a conservative mortgage approach, manage tight monthly budgets, or want stability in their payments.
Variable Rate Mortgages
Variable rate mortgages, however, allow the borrower to take advantage of lower rates, which are calculated on an ongoing basis at a lender’s prime rate plus or minus a set percentage.*
*For example, if the current prime rate is 3.0%, the holder of a prime minus 0.5% mortgage would pay an interest rate of 2.5%. Owners of a variable rate mortgage can sometimes expect a financial benefit, but this will vary depending on the current economy.
Your Collin Bruce Mortgage Team member can discuss the options with you to make sure you understand the risks and rewards of each mortgage type.
Don’t Have the 5% Down Payment Saved Up?
With all mortgages, you need to have at least a 5% down payment. The Collin Bruce Mortgage Team has mortgages available so you can borrow the down payment from a line of credit or loan and still get the best rates available. They can even help you set up a line of credit.
The minimal amount of interest you would pay on the borrowed down payment, compared to the potential difference in higher interest rates and housing prices in future, means you are way further ahead by buying now.
Let The Collin Bruce Mortgage Team provide you with your no down payment mortgage now!
New to Canada.
Are you new to Canada and wanting to purchase your first home here? The Collin Bruce Mortgage Team has expert mortgage advisors available to answer all of your questions, and to help you achieve the home you desire for you and your family.
They’ve assisted many newcomers to Canada in buying their first home here. This can feel like a daunting task, so they’ll be very patient and diligent in explaining each step of the process. Even for those with newer credit, and as little as 5% down, they’ll always do their best to assist each and every client in achieving their goals of home ownership.
Whether you’re a permanent resident or here on a work visa, they want to help. They’re happy to connect you with their wonderful partners; realtors, lawyers, home inspectors – whatever you need! They’ll provide you with their expert advice and always aim to make the process as smooth as possible.
Frequently Asked Questions.
Why should I use a mortgage broker?
When it comes to mortgages, there can be a lot to know. Do you go with a fixed-rate mortgage or a variable-rate? What are the terms? What are the penalties? What is the best payment frequency? With so many questions and so many lender options, it can be hard to find the best solution for you. That is where a qualified mortgage professional can help. Rate is only one of many factors in choosing the best mortgage product. Our Collin Bruce Mortgage Team brokers are familiar with a variety of mortgage products and our goal is to match you with the best product to meet your individual needs. Ultimately we want to do what we can to help you achieve your goals of home ownership, and get you into a home that you love!
What does it cost to use a mortgage broker?
From the first consultation to the signing of your mortgage, our services are free. Based on the large volume of business we send to our lenders, we’re able to negotiate very competitive rates for our clients. We are paid by the lender, based on the volume we send them and the length of your term, not on the interest rate offered. We don’t get paid until your mortgage funds. Our goal is to get you the best product and the best rate possible.
What is the difference between using a mortgage broker and using a bank?
There are generally two ways to get a mortgage in Canada: from a bank, or from a licensed mortgage professional. While a bank only offers the products from their particular institution, The Collin Bruce Mortgage Team sends hundreds of millions of dollars in mortgage business each year to Canada’s largest banks, credit unions, trust companies and financial institutions. This allows us to offer our clients more choices and access to hundreds of mortgage products. As a result, clients benefit from the trust, confidence, and security of knowing they are getting the best mortgage for their needs. Whether you are purchasing a home for the first time, taking out equity from your home for investment or pleasure, or renewing your mortgage, it’s important that you are making an educated decision with unbiased professional advice.
Do I need good credit to get a mortgage?
No you don’t. There are mortgages available for almost every credit situation out there. Better credit and higher credit scores will allow for lower mortgage interest rates and lower down payments. Poor credit will require you to have a larger down payment and will be subject to higher interest rates.
What is the minimum down payment required?
A 5% down payment is required, at minimum, to purchase a home in Canada. Some lenders will allow you to borrow the 5% down payment.
What is the mortgage stress test?
The mortgage stress test is a set of rules put in place to help determine how much you can qualify for, for a mortgage. The Canadian government sets a minimum qualifying rate to ensure you’ll still be able to afford your payments should interest rates increase.
What is the Home Buyers’ Plan?
Thanks to the federal government first-time home owners are able to leverage up to $35,000 of their RRSP savings ($70,000 for a couple) to help finance the down payment.
What does a lender consider when reviewing your mortgage application?
- Credit. Your credit score – meeting payment obligations (and timeliness), length of time managing credit, how much debt you carry.
- Capital. This is your net worth – assets minus liabilities.
- Capacity. Your income to debt-ratio. This determines whether or not you can afford the loan.
- Character. How long you’ve been employed and lived at your present address, ability to meet past payment responsibilities. Past behaviours predict future tendencies!
- Collateral. The condition of the property, location and history – essentially the characteristics of the real-estate that will secure the mortgage.
What is the difference between a pre-qualification and a pre-approval?
Getting pre-qualified for a mortgage will allow you to have a general idea of how much you qualify for, what your mortgage payments would look like and more. However, to be considered pre-approved, you will need to submit all the supporting documentation needed for finalizing a mortgage application. This can include income verification, down payment verification, existing property documentation, etc. A pre-approval is good for 120 days and during this time you can lock in an interest rate that will protect you from possible increasing rates while you are out shopping for a home. If mortgage rates increase, you are locked in at the secured rate, and if mortgage rates decrease, you will get the lower rate. Win win!
What are the costs associated with getting a mortgage?
You should budget to have a few extra thousand dollars over and above the funds you set aside for the down payment. These are your ‘closing costs’. There will be legal fees associated with your mortgage to close the transaction, register the title, and all the back end legal work. Most buyers like to get a property inspection done, and depending on your transaction, an appraisal possibly as well.
I am looking to purchase a home with an income suite. How does this affect my borrowing power?
Your income dictates how much you’ll qualify for. Adding a mortgage helper, such as an income suite, will add income to your application and increases your mortgage qualifying amount.
Can I get a mortgage if I am self-employed?
Yes, you can! However, when self-employed you will need to submit additional documentation including:
- Two years notice of assessment
- Two years of T1 Generals
- Proof of being in business for yourself for two years (i.e.: business license)
- If you don’t have all the required documents, or your personal claimed income is lower, we still have options. Please contact us for more details!
What is the difference between variable and fixed rates?
A fixed rate means you are locked-in for a term. The benefit is that you know your monthly mortgage payment and it will stay the same. With variable rates, they are often lower than a fixed rate but they can fluctuate with the Bank of Canada posted rate.
What is the difference between an open and a closed mortgage?
An open mortgage means that you can break the term with no penalty. A closed mortgage means that there is a penalty to break the term before maturity. The penalty can be either Interest Rate Differential (IRD) or 3 months interest.
What is IRD?
IRD stands for Interest Rate Differential. This is a type of penalty that can be charged on a closed fixed rate mortgage term. It can be a very complicated calculation depending on the lender, however in simplest terms, the difference between your current rate and the rate at the time you break the term, multiplied by your remaining mortgage balance and multiplied by the time remaining in your existing term.
Can I make a large purchase after I’ve been approved for a mortgage?
We do not recommend it! A lender can pull credit 30 days prior to closing if the original information on the approval changes. Making big financial commitments such as a car or financing furniture, before closing on your home may result in the deal going sideways.
What do I do when my mortgage is up for renewal?
Call us! Your existing lender will not always give you the most competitive renewal rates. It is best to give our team a call so we can present you with our best renewal rate options. Other lenders are willing to take care of the legal costs to switch your mortgage over, so why not take advantage and see if you can save some money!