How Much Home Can I Afford?

How much of a mortgage loan can I qualify for?

You can usually obtain a mortgage valued at between two and three times your annual household income, assuming you have an average debt load. Use our mortgage calculator to find out how much you quality for.

What if I have had credit problems?

You will need to explain the circumstances. Mortgage companies realize that things happen in life. If you have overcome the problem and kept up with your obligations on a timely basis for a year or more, most lenders will accept your mortgage application. I also have lenders that look at cases for those with credit that is less than perfect. If you have been turned down for a mortgage, contact me and I will see what I can do.

Why use a Mortgage Broker ?

A mortgage broker has the ability to shop many companies to find you the best mortgage. Check our mortgage website for more information. The best part is you don't pay the broker, the lender does.

How do I apply for a mortgage?

Go to our mortgage website. You can apply online or by fax. Your application will be dealt with quickly. There is no charge for approving you for a  mortgage.

What is the difference between fixed rate mortgages and adjustable rate mortgages?

The differences are that fixed rate mortgages are offered with an interest rate that remains unchanged for the term of the loan. Adjustable rate mortgages, sometimes referred to as ARMs and also called variable rate mortgages, have rates that change at predetermined intervals during the term to reflect general interest rates.

What is a "convertible mortgage"?

This is a mortgage that allows a borrower to convert from an adjustable rate to a fixed rate during specified time periods.

What is an "adjustable interval"?

This is the time between changes in the interest rate and/or the monthly payment on an adjustable rate mortgage.

What is "amortization"?

'Amortization' is the total life of the mortgage. Most mortgages are amortized over 25 years, however they can go higher or shorter. The shorter the amortization period, the higher the payment, but you will end up paying less interest.

What is 'term'?

Term refers to the length of time the interest rate is locked in for. Terms can run 6 months, 1 year, 2 years and so on. Most people lock in for a 5 year term. They can sleep easy knowing what their payment will be every week, bi-weekly or monthly. At the end of 5 years, you would renew the balance owing at current rates. 

What does "APR" stand for?

This stands for Annual Percentage Rate and reflects the annual cost of the mortgage. The APR can be used to compare the annual cost of different types of mortgages.

How much do you charge to arrange a mortgage?

 Nothing. We are paid by the lender. However, there are situations where we have to charge a brokerage fee. If this is the case, you will be notified of the amount prior to signing any paperwork.

What is a "buy-down"?

A "buy-down" occurs when a lender lowers the interest rate on a mortgage -- for a fee -- for the first few years of the loan.

A great mortgage payment tip.

Round up your payment. Say your bi-weekly payment is $378. Make arrangements with your mortgage companay to deduct $400 per payment period. It's only $22 more, and will amount to paying down the mortgage principal by an additional $572 per year. Over a 5 year term, you are looking at $2,860 paid off the principal amount you borrowed. This will save you a lot of interest. Apply for a pre-approved mortgage.

What is "locking-in"?

"Locking-in" means that your lender will guarantee the interest rate on your preapproved mortgage for a limited period, regardless of fluctuations in market rates. If you are concerned that rates will go up between the time you apply and the closing date, you should lock-in . Apply now for your locked in interest rate.

What is "PIT"?

It is simply "Principal, Interest, Taxes" -- the components of your monthly mortgage payment.

What is an appraisal?

An estimate of the value of the property you intend to buy.

What is 'closing'?

"Closing" is the date set when the buyer, seller, lender, and their lawyers agree to legally transfer the property and all associated funds. You cannot close a real estate transaction on a Saturday, Sunday or holiday. Your lawyers office, the mortgage companay and the Land Registry Office must be open to complete the transaction. Any questions regarding this, contact your lawyer.

What happens at closing?

The lawyers for the buyer and seller communicate with each other to legally transfer the property and all associated funds.

Why make mortgage payments bi-weekly rather than monthly?

Let's say your monthly payment is $800. If you want to pay bi-weekly, divide this in half. You will pay $400 every 2 weeks or 26 times per year. After paying for 12 months, you have paid an extra $800 by paying bi-weekly opposed to monthly. This pays your mortgage off quicker, saving you interest. 

What are "closing costs"?

"Closing costs" are those costs that include the mortgage broker's fee (if applicable), lawyers fee, disbursements, adjustments, Land Transfer Tax, title insurance, survey fees(if applicable) and other charges associated with the legal transfer of the property. These costs typically amount to between 2 percent and 3 percent of the mortgage amount. Your lawyer will be happy to give you a breakdown.

How often do I have to make mortgage payments?

This depends on the lender you choose as you may select from monthly, bi-weekly or weekly payments. Apply for a pre-approved mortgage here.

What happens if I'm late with a payment or miss a payment?

Continued delinquency (late payment) or defaulting on mortgage (failing to make one or more payments) can lead to foreclosure or power of sale proceedings. The best advice here is, if you know you are not going to be able to make your payment on time, call your mortgage company immediately. You will be surprised how they will work with you. They don't want to repossess your home, they just want your payments.

What if I want out of my mortgage?

You may pay off the loan prior to the end of the term. Some mortgages do have a prepayment penalty. Ask your lender about the program for which you are applying for.