Your Questions Answered

There are so many questions that come up when our clients are buying a home or property. Check out our FAQs below to learn about mortgage types, affording a home, refinancing, documentation, income properties and more.

FAQs

Answers to All the Things You need to Know when Financing a Property.

  • purchases / refinance
  • Documents
  • manulife one
  • wealth building

The answer depends on your situation, your long-term versus short-term needs and what else you may want out of your mortgage. You’ll want to compare your best options for a variable and fixed rate mortgage, choose the appropriate amortization, and review the payment schedule. Our team of experts is here to provide an in-depth analysis of your finances so we can find the best products for your situation.

We take the time to listen to short- and long-term goals so that we can build you a plan that includes acquiring additional mortgages for second homes, commercial properties, or income properties.

Mortgage loan insurance is insurance provided by Canada Mortgage and Housing Corporation (CMHC), a crown corporation, and Genworth, an approved private corporation. This insurance is required by law to insure lenders against default on mortgages with a loan to value ratio greater than 80%. The insurance premiums, ranging from 0.50% to 7.0%, are paid by the borrower and can be added directly onto the mortgage amount. This is not the same as mortgage life insurance.

The interest rate on a fixed-rate mortgage is set for a predetermined term, usually between 6 months and 10 years. This offers the security of knowing what you will be paying for the term selected.

Generally speaking, you can purchase a home with a value of two to three times your annual household income. However, the amount that you can borrow will also depend upon your employment history, credit history, current savings and debts, and the amount of down payment you are willing to make. You may also be able to take advantage of special loan programs for first time buyers to purchase a home with a higher value. Give us a call and we can help you determine exactly how much you can afford.

Bankers open chequing and savings accounts, offer customers car and credit card loans and sometimes do home mortgages. However, they are restricted to lending only what their particular bank offers.

 

Mortgage brokers do not lend money. They negotiate loan terms between the borrower and the lender. Most brokers are paid a fee for their services on a specific loan by either the borrower or the lender.

 

A lender is a financial institution that makes loans directly to you. They offer a wide array of products and programs and are not incentivized by opening chequing and savings accounts. They are focused on giving borrowers the best home loan possible for their individual needs.

We take the time to understand your short- and long-term goals so we can create a specific plan, including repayment and exit strategy This plan is designed for flexibility to save you money in the long run—an approach that helps our clients build long-term wealth.

That’s what we’re here for. We can explain all of your options to help you decide what’s best for you, your family, and your home.

A conventional mortgage is usually one where the down payment is equal to 20% or more of the purchase price; a loan to value of or less than 80%, and does not normally require mortgage loan insurance.

A variable-rate mortgage is one in which payments fluctuate month-to-month depending on prime. If prime goes up, so does your payment. NOTE: Rules and guidelines are subject to change, please contact us to discuss this option.

Years ago, it made sense to only refinance if your new interest rate was at least two points below your existing one. But the cost of refinancing has dropped significantly in recent years. It is never the wrong time to think about a new loan! A refinanced mortgage is often worth its costs several times over, considering the benefits that come, as well as the lower interest rate.

This could be your bank statements from the past 3 months (you can find these via your online banking), a letter confirming that a gift was received from a family member for some or all of the down payment, or an RRSP or investment statement from the past 90 days that shows proof of withdrawal.

A signed purchase agreement is the contract between the property buyer and seller, which outlines the details of the sale. It includes the broker copy of the MLS listing and all waivers.

This could be a letter from your employer or a pay stub. If you are self-employed, you will need financial statements from your accountant, your most recent Notice of Assessment and T1 Generals from your accountant or CRA Tax account.

Your most recent mortgage statement will show details required for refinancing, including your mortgage balance, current interest rate and time remaining on the mortgage term. Your current mortgage provider sends this statement by mail on an annual basis. You can also get an updated version through your lender’s website.

Your mortgage broker requires the MLS listing from your realtor because it provides the necessary details about the property (e.g., square footage, lot size) that will be required for your loan application.

You’ll need government-issued photo identification, such as your driver’s licence or passport, as well as a credit card.

Get this via your online banking or as a pre-authorized form from your bank.

Manulife One combines your income and borrowing into one account to give you financial flexibility, save you thousands of dollars in interest and help you pay off your mortgage years sooner. It uses what you have to reduce what you owe.

Making a payment to your Manulife One account is easy. All you need to do is deposit money into your account. You’re encouraged to deposit your income into your Manulife One account so each time you get paid, you automatically reduce your interest costs. Here are some other ways you can deposit money into your account:

  • Direct deposit
  • Fund transfers
  • Mobile cheque deposits
  • ABM deposits
  • Interac® e-transfer

If you have a closed-term sub-account, you can only make payments monthly, and your payment will be automatically taken from your main account on the last day of each month. Unfortunately, this can’t be changed. For your main account, you can make payments (deposits) whenever you wish.

Manulife One can help you become debt-free sooner than with a traditional mortgage. But for it to work, you need to ensure you’re depositing more money into your account than you’re withdrawing. One of the best ways to do this is to have your income automatically deposited into your account. That way, your income automatically reduces your debt as soon as you receive it. And, the money you have left over at the end of the month can stay in your account, reducing your debt and saving you interest.

If you’re having difficulty reducing your debt, you may also want to add some structure to your account. You can do this by putting part of your debt into a term sub-account. A term sub-account is a traditional mortgage that sits within your Manulife One account. It has regular, structured principal and interest payments just like a traditional mortgage and this structure might make it easier for you to ensure you're paying down your debt over time.

You can always see how much interest you’ve paid in your monthly Manulife One statement. Come tax time, your December statement will list the total interest paid that year.

The Manulife One solution works best when you use it as your day-to-day banking.

Interest in your main account is calculated on your daily closing balance and debited from or credited to your account on the last business day of the month. It takes into account all deposits and withdrawals you made during that time. If your account has a negative balance, you’ll be charged interest. If your account has a positive balance, it’ll pay you interest.

Manulife One gives you the flexibility to divide your debt between sub-accounts so you can track portions of it separately. There are two types of sub-accounts:

  • Tracking sub-accounts, which have the same variable rate as your main account and offers interest only or principal and interest payment options.
  • Term sub-accounts, which have a fixed or variable interest rate and a specific amortization period. They offer predictable monthly principal and interest payments.

There are lots of ways you can withdraw money from your Manulife One account:

 

  • Deposit or withdraw cash at 3,500+ ABMs
  • Send and receive Interac® e-Transfers
  • Make debit purchases across Canada
  • In-store cash back at participating retailers
  • Transfer money to or from your accounts at other Canadian banks
  • Make bill payments
  • Make pre-authorized payments
  • Deposit or write cheques
  • Send or receive wire transfers

You will require a 20% down payment, good credit, and either a rental market analysis, lease agreement or statement of rental activities from your T1 General (if you already own another rental property).

We have access to mortgage products and line of credit facilities to help you effectively organize your finances prior to retirement. It’s important to properly prepare for your income decrease, as it may mean you have fewer options if you need money for a large expense, such as home repairs or health care treatment.

Simply put, by planning. At Mortgage Winners, we have the knowledge and expertise to help you structure your mortgages efficiently so you can prepare for future investments or the cottage or vacation property you’ve always dreamed of.

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