Purchasing a home is one of the most exciting and important decisions you will make. It is very important to use not only a Real Estate Agent that you trust, but also a Mortgage Broker or Bank Advisor who you can trust and who can get you the best mortgage product that suits your needs. 

What is the difference between a Bank Mortgage Advisor and a Mortgage Broker? 

The bank can only offer you their own product where Mortgage Brokers deal with banks, credit unions, mortgage companies, alternative lenders and private lenders. So how do you know what option is best for you?

If you already have a great relationship with your bank, you can always start there first. If your bank is unable to provide you with the approval you would like, a mortgage broker may have better options for you.

What about different types of mortgage products?

Traditional or Conventional Mortgages

These are mortgages that do not require mortgage insurance because they meet the requirement of having a 20% down payment. 

High Ratio Mortgages

In this scenario the Buyer has a down payment that is less than 20%, requiring the lender to provide a higher ratio of the loan. If you're a buyer with a high-ratio mortgage then you are required by law to have mortgage default insurance, provided by CMHC or a provider of the like. 

Variable Rate Mortgages 

This is a type of mortgage where the interest rate of the loan fluctuates based on the current prime rate. With a VRM your monthly payment will remain the same because the amount that fluctuates is the amount of your payment that is applied directly to your mortgage principal. A VRM allows you to keep some stability in terms of consistent monthly payments, but also allows you to reap the benefits if the interest rate falls. Rates are typically lower with a VRM than they would be with a fixed rate mortgage. 

Nothing can happen until you get pre-approved for mortgage.... 

This is the first step to home ownership. There are many factors that come into play when determining how much you can afford to spend on your new home. 

Debt to Income Ratio (Your Monthly Payments vs. Income)
Property Taxes
Utility Costs
Current Debt
Credit Score

If you haven't been pre-approved yet, we have trusted mortgage brokers! 

We also have relationships with different banks. Give us a call for a referral at 905-963-7355.

Once you are pre-approved and ready to start the home buying process, our Home Buyer Specialists are ready to help.