Q.  What are the benefits of using a mortgage specialist?

A.  Our ability to access vast numbers of mortgage products fits each financial circumstances and goals.  A mortgage specialist provides unbiased professional advice for the client's best interest.   In most cases, our service does not cost our clients any fees, as the majority of the financial institutions pay a finder's fee to a mortgage specialist to enhance their market share.  There are some cases where brokerage fee may become applicable if clients have to seek mortgages from non-confirming lenders or private lenders.  

 

Q. What would be different if we get a mortgage from a mortgage specialist rather than going to our own  bank?

A.  Our industry knowledge and negotiation skills enable us to secure lender's unadvertised rate that is typically 1.5% lower than bank's posted rate.  Some of the leading institutions offer outstanding mortgage products, only through mortgage broker channel. 

 

Q. Can we purchase a real estate without any down payment?

 

Q.What expenses are expected in addition to a purchase price?

A. When purchasing a real estate, closing cost has to be considered.  Rule of the thumb is 1.5% of the purchasing cost. 

Following are the list of the costs:

• Appraisal fee $300
• Survey certificate (if applicable) $270
• Home inspection $400
• Legal fee $800
• Tax adjustment (if applicable)
• Interest adjustment (if applicable)
• Property transfer tax (if applicable) *

*1% on the first $200,000 & 2% on the remaining balance

 

Q.What would be the important factors to consider when deciding a mortgage product?

A. Mortgage specialists would ask questions prior to determining the most suitable mortgage product, however, here are the some of the factors need to be sought out:

• A term (open, open variable or fixed terms)
• Flexibility of the prepayment options (double up payment, top up payment, skip payment)
• Payment frequency (monthly, bi-weekly, weekly)
• Amortization (15, 25, 30, 40 years)   

Q. Can we qualify for a mortgage without an established credit?

A. Although most of the conforming lenders' qualifying requirements are outlined with a certain credit score, a person without an established credit can still qualify for a mortgage.  One way to accomplish is to secure a mortgage with a co-applicant who has a strong credit history.  If such option were not available, non-conforming lenders would be of your alternative source.  Those lenders typically offer mortgages at a higher interest rate compared to those conventional lenders, but often more relaxed in terms of your past bankruptcy or bad credit history.

Mortgage specialists can assist you in selecting a mortgage product that can save you money in a long term until you establish your credit. 

 

Q. Would a person with self-employee status qualify for a mortgage?

A. Numbers of conforming lenders have introduced mortgage products specifically designed for consumers whose employment status does not fit in a conventional employment status.  Those of you who are self-employees, contract employees, commission employees, and part of the income coming from tips, having strong credit records can qualify for mortgages at a discounted rate.  

 

Q. Would a rental suite income be considered when qualifying for a mortgage?

A. Recognizing a rising real estate market, more and more lenders are allowing a certain percentage of the rental income (50% to 80% depending on the lender) to be added to applicant's gross income.   Another methodology is to offset your rental income (30% to 100% depending on the lender) from a computed mortgage payment, hence qualifying for higher mortgage.  However, income- generating suite must be qualified and approved by an appraiser.