Check out the best mortgage calculator on the market to help you determine your rates.

Best Mortgage Calculator

Though credit scores aren’t always an indicator of financial health, they are used in a variety of ways that could have a major impact on your life. Interest rates (including mortgage rates) are almost always determined by your credit score. Some employers & landlords may require a credit check to see if you have past credit issues.
Remember this is your credit report, not your “I’m Fiscally Responsible” report. Lenders want to know how you have historically handled credit in order to determine if you are a good credit risk. Higher risk = higher rates!

The Rule of Two:
• You should always have 2 “tradelines” going. This can be a combination of 2 credit cards OR a credit card and a line of credit/ loan etc.
• Credit lines should have a minimum $2,000 limit
• Minimum of 2 years old

So, if your credit score sucks, it could be costing you.
The good news is, you don’t have to live with bad credit forever. There are plenty of things you can do to improve your credit score. Use the 9½ tips below, to improve your credit score

#1) Know Your Credit Score and Credit History

Request a free copy of your credit report from both of Canada’s credit agencies (TransUnion and Equifax). You are legally entitled to one free credit report yearly from each credit agency. Check out my BLOG How to Get a FREE Copy of Your Credit Bureau

#2) Review both TransUnion & Equifax Reports for Any Errors or Discrepancies.

If you find any errors in your credit report, you should dispute them with Equifax or TransUnion and request to have them correct any errors.

#3) Pay On Time, EVERY time!

This might seem obvious, but you need to make your payments on time, every time! This is crucial to repairing and maintaining your credit rating. The largest percentage of your credit score is based on your payment history!! Even being a couple of days late will have a negative impact on your score. Staying current with your payments has a huge positive impact. If you can’t pay the balance off in full, pay the minimum amount on time!

#4) Don’t Go Over Your Card’s Credit Limit

Going over your credit limit, even once will have a huge negative impact on your credit score. You need to be aware of your credit limit and your current debt levels to avoid this.

#5) Pay Off Any Overdue Accounts ASAP

Paying off a collection account will not remove it from your credit report, so do your best to avoid going to collections. If you have any overdue accounts that have gone to collections, negotiate to pay them off ASAP.

#6) Reduce Your Debt

Easier said than done, but if you want to increase your credit rating, you need to reduce your debt. The closer you are to your credit limit, the lower your score. In a perfect world you only want to use about 30% of your available credit. If you have a lot of credit card debt you might consider a loan (with lower interest rates than the credit cards) to consolidate your debts.

#7) Limit Your Inquiries for New Credit

You lose points from excessive hard inquiries on your credit bureau. Any attempts to take on multiple loans/credit cards will look bad in your report.

#8) Avoid Closing Credit Cards

Account age is a factor that reflects positively on your credit score. Too many new accounts lowers your average account age and negatively impacts your credit score. For the same reason, you may want to keep an old account open, even if you are not actively using it.

#9) Time is your Friend

When rebuilding your credit, time will be your best friend. The impact of past credit problems lessens with time, so that a late payment from a year ago will have much less weight than a late payment today. Get current and stay current.

#9.5) Protect Your Credit from Identity Theft

As more of our personal information gets circulated via the internet, there’s more room for “bad people” to steal your personal details so that they can make fraudulent purchases in your name. This can be extremely damaging to your credit history. You can protect your credit history from this by paying for a service that can alert you to fraud.

If you have any questions, contact a Dominion Lending Centres mortgage broker near you.

by Kelly Hudson

Did you know that 60 per cent of people break their mortgage before their mortgage term matures?

Most homeowners are blissfully unaware that when you break your mortgage with your lender, you will incur penalties and those penalties can be painfully expensive.

Many homeowners are so focused on the rate that they are ignorant about the terms of their mortgage.

Is it sensible to save $15/month on a lower interest rate only to find out that, two years down the road you need to break your mortgage and that “safe” 5-year fixed rate could cost you over $20,000 in penalties?

There are a variety of different mortgage choices available. Knowing my 9 reasons for a possible break in your mortgage might help you avoid them (and those troublesome penalties)!

9 reasons why people break their mortgages:

1. Sale and purchase of a home
• If you are considering moving within the next 5 years you need to consider a portable mortgage.
• Not all of mortgages are portable. Some lenders avoid portable mortgages by giving a slightly lower interest rate.
• Please note: when you port a mortgage, you will need to re-qualify to ensure you can afford the “ported” mortgage based on your current income and any the current mortgage rules.

2. To take equity out
• In the last 3 years many home owners (especially in Vancouver & Toronto) have seen a huge increase in their home values. Some home owners will want to take out the available equity from their homes for investment purposes, such as buying a rental property.

3. To pay off debt
• Life happens, and you may have accumulated some debt. By rolling your debts into your mortgage, you can pay off the debts over a long period of time at a much lower interest rate than credit cards. Now that you are no longer paying the high interest rates on credit cards, it gives you the opportunity to get your finances in order.

4. Cohabitation & marriage & children
• You and your partner decide it’s time to live together… you both have a home and can’t afford to keep both homes, or you both have a no rental clause. The reality is that you have one home too many and may need to sell one of the homes.
• You’re bursting at the seams in your 1-bedroom condo with baby #2 on the way.

5. Relationship/marriage break up
• 43% of Canadian marriages are now expected to end in divorce. When a couple separates, typically the equity in the home will be split between both parties.
• If one partner wants to buy out the other partner, they will need to refinance the home

6. Health challenges & life circumstances
• Major life events such as illness, unemployment, death of a partner (or someone on title), etc. may require the home to be refinanced or even sold.

7. Remove a person from Title
• 20% of parents help their children purchase a home. Once the kids are financially secure and can qualify on their own, many parents want to be removed from Title.
o Some lenders allow parents to be removed from Title with an administration fee & legal fees.
o Other lenders say that changing the people on Title equates to breaking your mortgage – yup… there will be penalties.

8. To save money, with a lower interest rate
• Mortgage interest rates may be lower now than when you originally got your mortgage.
• Work with your mortgage broker to crunch the numbers to see if it’s worthwhile to break your mortgage for the lower interest rate.

9. Pay the mortgage off before the maturity date
• YIPEE – you’ve won the lottery, got an inheritance, scored the world’s best job or some other windfall of cash!! Some people will have the funds to pay off their mortgage early.
• With a good mortgage, you should be able to pay off your mortgage in 5 years, there by avoiding penalties.

Some of these 9 reasons are avoidable, others are not…

Mortgages are complicated… Therefore, you need a mortgage expert!

Give a Dominion Lending Centres mortgage specialist a call and let’s discuss the best mortgage for you, not your bank!

By Kelly Hudson

Welcome to our Real Estate Blog! Here you can find timely updates of my latest properties, open houses, just solds and much more.

Whether you are interested in buying or selling real estate, I am here to help guide you every step of the way.

If you have any questions about real estate from home evaluations to mortgages to searching for properties in your area, don't hesitate to contact me today!

You may have heard that rates are changing, and that is true. They don’t call it war for nothing and you need an expert by your side!

Think of mortgage brokers as your loyal soldiers. What we are seeing is exactly what we anticipated when prime rate goes up and discounts go down. Confused? Don’t be, variable rates are based on prime and both Bank of Canada Prime and Bank Prime are different.

What the new discount means is what it means – they anticipate prime to go up higher.

With current regulations, borrowers qualify for more mortgages on a variable rates! This is a shift from the previous policy where more Canadians were having to take fixed rates to qualify for the most.

These new discounts on new mortgages getting taken out there discount is lower off of the bank’s prime rate- this does not apply to an existing mortgage

Did you notice earlier I said the bank’s prime rate, you would think they are all the same… right?

This is not the case. In November of 2016 one Canadian lender broke the trend of their counterparts and raised their internal prime to immediately impact their existing customers by adding to their amortization. This discount below was for new clients they increased the discount so it looked bigger.

Lender who broke the trend prime                             Other lenders prime

    3.65%                                                                       3.45%

  Discount 1.15                                                       Discount ranging from 1.06=.95%

It’s important to note – each lender has unique criteria to be met to get these offers: some only for purchases, some only with switches, some only certain amortizations, and some only certain property types. The list goes on!

Remember your broker shops all these lenders without bias, while protecting your credit score to assist you in finding the best one. It’s important that we evaluate the following criteria with these lenders- here is an example of three lenders:

Lender one

• Bank has a higher Prime than anyone else

• No change to payment

• Increases amortization  which can put into effect a trigger clause- cash call in on mortgage or forced pre-payment and other costs such as appraisal at your expense

• Not portable

• Does have a 12 month penalty payback if getting a larger mortgage at new rates! Best one!

• Have to go to branch to lock in and then be subject to their IRD (usually 3-5% of balance pending where you are in your term).

• Based on history this lender is generally the first to raise their rates and last to decrease

Lender two

• Prime rate consistent with all lenders

• Change to payment so amortization doesn’t increase

• NO trigger clause

• Have to go to branch to lock in and face large IRD between 3-5%

• Not portable but will refund you within 6 months if the mortgage is larger and will get rate available at that time

Lender three

• Prime consistent with all lenders

• Change to payment so amortization doesn’t increase

• NO trigger clause

• lender will pay back penalty within 3 months of getting a larger mortgage with them

• your mortgage expert can assist you with lock in

• If you lock in they have the lowest penalties in the country to break your mortgage in the future, generally 1-1.5% of the balance

With seven-in-10 mortgages breaking before the term is over, this should be weighted very carefully.

Let me demonstrate the following:

A mortgage that gets locked in with first or second lender above at $500,000, by the third year the cost to break a mortgage will be between $15,000 and $25,000. With the third lender the cost would be between $5,000 and $7,500.

What to do with this info?

These new wars apply to new mortgages. If you have a mortgage with a discount less than .50, a renewal upcoming, looking at accessing your equity for home renovations or to consolidate debt and you have a variable rate, it may be time to run the numbers to see if taking a new variable rate mortgage is beneficial for you. One of the significant benefits of having a VRM is to get out at any time with only three months interest penalty (unless a restrictive product was taken for a better rate or had a sale only clause).

As you can see we have only scratched the surface in terms of the differences. There are many other differences and mainly you have to consider as a consumer, do you want to be calling a bank branch and play Russian roulette with the education level and sales goals of the person who guides you through deciding what to do with your biggest asset? Or would you rather have a Dominion Lending Centres mortgage professional who is in the front lines proactively guiding you and assessing the economic factors to give you personalized advice based on their experience and knowledge of the mortgage industry.

Depends on what you value most!

Source: Angela Calla

FIRST TIME HOMEBUYERS PROGRAM (new as of January 16, 2017)

As of January 16, 2017 the provincial government has introduced the B.C. Home Owner Mortgage and Equity Partnership program for First-Time Homebuyers needing help with their down payment.

Eligibility requirements for the new government first-time homebuyer down-payment loan program are:

• Have saved a down payment amount at least equal to the loan amount for which they are applying from government.
• Have been a Canadian citizen or permanent resident for at least five years.
• Have lived in B.C. for at least one year prior to the sale.
• Be a first-time buyer who has not owned an interest in any residential property anywhere in the world at any time.
• The home must have a purchase price of less than $750,000.
• The buyer must already be able to qualify for an insured high-ratio first mortgage for at least 80 per cent of the purchase price.
• The combined gross household income of all people on title must not be more than $150,000.

Applications are open for 3 years starting January 16, 2017 and ending March 31, 2020. For more information check out the link below:
https://housingaction.gov.bc.ca/tile/home-owner-mortgage-and-equity-partnership/

CHIP is a reverse mortgage that let’s seniors unlock the value in their home without having to sell or move. If you’re 55+ and looking for extra money to do important home improvements or meet day-to-day expenses, a reverse mortgage could be a solution for you. Turn up to 50% of your home equity into cash!

The money you receive is tax-free and yours to use as you wish. You can take it all as a lump sum or receive monthly payments. Best of all, you don’t have to make any payments at all until you move or sell!

– pay off debts
– pay unexpected medical expenses
– improve your home
– help your children or grandchildren
– travel
– improve your day-to-day standard of living

“Live a better retirement”

For a free quote, please call Antonietta Gaudet, CRMS, at (250) 218-2184 (call or text)
For more info please visit http://www.lowest-rates.ca/chip



…and what you need to know to get you started toward buying your 1st home!

People fear what they don't understand. A good example is the purchase of a home. The average consumer knows very little regarding the home buying process. Between finding the right house, making sure it won't fall apart the day after it is purchased, and finding the best financing, it is no wonder that so many people are afraid to purchase homes.

Buying a home is one of the most important financial decisions an individual will make. For a first-time homebuyer, the decision to purchase a home can be daunting. It will represent a major step forward as the individual/family will be assuming potentially its largest responsibility. As with any major decision, it is important that everyone, especially first-time homebuyers, take full advantage of the information and training that is available to more clearly understand the home buying process.

To prepare, you should do research and be fully informed before beginning the search for a dream home. Here are six steps to get started:

STEP 1: Before you start your house search, think carefully about what it will be like to be a homeowner. For most people, homeownership can be one of the most significant financial turning points in their lives. The advantages (tax benefits, pride of homeownership, financial investment) far outweigh any drawbacks.

STEP 2: Your credit history is one of the first things a lender will look at in making a decision on your loan. Visit www.equifax.ca to obtain a credit report.  Review it carefully to be sure all the information is correct. If you find discrepancies, you should work with the credit agencies to resolve them.

STEP 3: Saving for a down payment can be one of the biggest barriers to homeownership. Mortgage lenders recognize this dilemma and many now offer low down payment loans. Five percent is usually the minimum requirement for a down payments.

STEP 4: Before you begin working with a realtor, find a mortgage broker you can trust and ask them to pre-approve (not prequalify) you for a mortgage. Getting a pre-approval is easy. You just call a mortgage broker, provide some basic financial information, ie. documentation to confirm your employment, the source of your down payment and other aspects of your financial circumstances.

Most lenders will provide this service free of charge. Pre-approval will let you know exactly how much you can spend on a home purchase BEFORE you start your search. A preapproval in hand also makes you a more attractive buyer when you are ready to make an offer on a home. Home sellers are more likely to accept an offer from a buyer who can demonstrate the ability to secure financing.

STEP 5: Many mortgage lenders, nonprofits, and even realtors offer homebuyer education guides to prepare you for homeownership. Some of the topics covered are how to apply for a loan, find the right realtor, make an offer on a home, and the advantages and responsibilities of homeownership.

STEP 6: The mortgage broker vs. banks and mortgage companies. A mortgage broker has many different banks, savings and loan companies and mortgage companies that they "broker" their loans to, something like a stockbroker or independent insurance agent.

 Since a mortgage broker does business with lots of banks throughout Canada, they can:

• Send the loan to many different underwriters  

• Shop for the best rates and programs

• Save you money by not charging loan origination fees

So, what's in it for you?

 You can finds ways to get out of the "trap" of paying rent.

 You are confident that you made the right decisions about your mortgage.

Nobody rushed you into the wrong mortgage program because you had to apply for your mortgage within 3 days of signing your purchase agreement.

 Is 3 days long enough for you to make a decision that could last for 30 years?

 Your desire to own a home, combined with my knowledge, will increase your chances dramatically.

 Most banks want to "cherry pick" the easy ones.

 Not me, because I have so many more options than they do.

 Well, I hope I got you thinking.

 You probably have some questions.

 However, we guarantee that you can save thousands of dollars. Your time is precious too, so we won't waste that either.

 We can give you a detailed analysis of how much you will save by owning instead of renting.

 Please give me a call while this is fresh on your mind and you are excited about the possibilities.

 Even if you are skeptical, which is only natural, a phone call can't hurt.

 The worst that you will do is spend a few minutes learning.

 The best you can do is have "peace of mind" and save yourself lots of money.

Or, if you wish, we can send a pre-approval package out to you today, or fax information to you.

What are you waiting for...give me a call and lets get started!

 Antonietta Gaudet (250) 218-2184 (call or text)  

Fill out an application today!

http://www.lowest-rates.ca/how-to-apply-mortgage

 P.S. Think about it. Now is the time to escape from endless rent payments. We can mail you a Pre-Approval Kit to get you started on your road to homeownership today!

 P.P.S. More people who are renters now qualify to become a homeowner. Don't let fear or ignorance stand in your way. Our job is to educate and advise you. Call us today to take one step closer toward realizing your dream of one day becoming a homeowner.

It is a very difficult time going through a separation or divorce especially if you have children.   Your home is your most valuable asset and stability for your children. Decisions regarding possession, division of equity and liability for repayment of the mortgage loan are all tied together. Once your relationship has come to an end there are two basic options. One is to sell your property, split the proceeds and go your separate ways. The other is for one of you to keep the home.

Do you buyout your spouse and keep the house?
In a buyout the person who remains in the home refinances the mortgage and pays the other spouse his share of the equity. A Separation Agreement may specify that one spouse make the mortgage payments, but if both spouses’ names are on the mortgage, both are liable even if the paying spouse defaults on the loan. Also do not assume that because you transferred title to the property to the other that you have been released from your mortgage obligations. Make sure to get a release or letter from the bank releasing you of your obligation.

The person who chooses to remain in the home can either assume the mortgage or refinance the home in their sole name.   As your mortgage professional I will find out your options on your existing mortgage as not all mortgages are assumable or if you decide to refinance I will work with you to meet the credit and income requirements to qualify you for that new mortgage. Let me do the homework for you to find out what works best for your situation.

Reapplying for that Mortgage
After a separation or divorce, you must provide the lender with your Separation Agreement if you have one. You may also be required to have an appraisal or valuation of your property done. You will have to prove to the lender that you are capable of covering the mortgage payments on your own, without the help of your spouse because the lender is under no obligation to remove the other from the mortgage unless you can demonstrate you can afford the payments on your own. Even if you do qualify for a mortgage on your own you may want to consider borrowing more in order to buyout your spouse. Spousal and child support will also impact your mortgage qualifications so you will have to consult with your me, your mortgage professional, to determine your specific situation.

Get Pre-Approved
If you plan on keeping your home or purchasing a new home, get a mortgage pre-approval to see how much you can afford to spend. It is likely you will have a good down payment for your next home if you have enough equity in your previous home and you receive funds from either the sale or a buyout. As a mortgage professional I will analyze your situation in detail to get you the best financing that suites your needs.

Credit Rating
A separation or divorce can get very messy. Try to keep your credit rating as clean as possible during this difficult time. Joint debts during your relationship are considered to be the responsibility of both parties. Even if the other person is responsible for that debt during your separation and they miss a payment your credit rating could be affected. Make sure any joint debts are handled in a timely fashion. Try to close all joint accounts and credit cards. Put a freeze on any accounts you cannot close and try to make the minimum payment in the meantime until you can transfer the joint debt to the other or pay it out.

If you do not have a credit history, it is important that you start to establish one independently of your spouse. Begin by applying for your own credit card, even if it’s for a small amount of credit and make sure you make your minimum payment on time.

Bad credit? Let me work with you to help you improve your credit score before applying for a mortgage.

1. What’s the best rate I can get?
Your credit score plays a big part in the interest rate for which you will qualify, as the riskier you appear as a borrower, the higher your rate will be. Rate is definitely not the most important aspect of a mortgage, however, as many rock-bottom rates often come from no frills mortgage products. In other words, even if you qualify for the lowest rate, you often have to give up other things such as prepayments and porting privileges when opting for the lowest-rate product.

 2. What’s the maximum mortgage amount for which I can qualify?
To determine the amount for which you will qualify, there are two calculations you’ll need to complete. The first is your Gross Debt Service (GDS) ratio. GDS looks at your proposed new housing costs (mortgage payments, taxes, heating costs and 50% of strata/condo fees, if applicable). Generally speaking, this amount should be no more than 32% of your gross monthly income. For example, if your gross monthly income is $4,000, you should not be spending more than $1,280 in monthly housing expenses. Second, you will need to calculate your Total Debt Service (TDS) ratio. The TDS ratio measures your total debt obligations (including housing costs, loans, car payments and credit card bills). Generally speaking, your TDS ratio should be no more than 40% of your gross monthly income. Keep in mind that these numbers are prescribed maximums and that you should strive for lower ratios for a more affordable lifestyle. Before falling in love with a potential new home, you may want to obtain a pre-approved mortgage. This will help you stay within your price range and spend your time looking at homes you can reasonably afford.

 3. How much money do I need for a down payment?
The minimum down payment required is 5% of the purchase price of the home. And in order to avoid paying mortgage default insurance, you need to have at least a 20% down payment.

 4. What happens if I don’t have the full down payment amount?
There are programs available that enable you to use other forms of down payment, such as from your RRSPs, a cash-back product, or a gift.

 5. What will a lender look at when qualifying me for a mortgage?
Most lenders look at five factors when determining whether you qualify for a mortgage: 1. Income; 2. Debts; 3. Employment History; 4. Credit history; and 5. Value of the Property you wish to purchase. One of the first things a lender will consider is how much of your total income you’ll be spending on housing. This helps the lender decide whether you can comfortably afford a house. A lender will then look at your debts, which generally include monthly house payments as well as payments on all loans, credit cards, child support, etc. A history of steady employment, usually within the same job for several years, helps you qualify. But a short history in your current job shouldn’t prevent you from getting a mortgage, as long as there have been no gaps in income over the past two years. Good credit is also very important in qualifying for a mortgage. The lender will also want to know that the house is worth the price you plan to pay.

 6. Should I go with a fixed- or variable-rate mortgage?
The answer to this question depends on your personal risk tolerance. If, for instance, you’re a first-time homebuyer and/or you have a set budget that you can comfortably spend on your mortgage, it’s smart to lock into a fixed mortgage with predictable payments over a specific period of time. If, however, your financial situation can handle the fluctuations of a variable-rate mortgage, this may save you some money over the long run. Another option is to opt for a variable rate, but make payments based on what you would have paid if you selected a fixed rate. Finally, there are also 50/50 mortgage options that enable you to split your mortgage into both fixed and variable portions.

 7. What credit score do I need to qualify?
Generally speaking, you’re a prime candidate for a mortgage if your credit score is 680 and above. The higher you can get above 700 the better, as you will qualify for the lowest rates. These days almost anyone can obtain a mortgage, but the key for those with lower credit scores is the size of the down payment. If you have a sufficient down payment, you can reduce the risk to the lender providing you with the mortgage. Statistics show that default rates on mortgages decline as the down payment increases.

 8. What happens if my credit score isn’t great?
There are several things you can do to boost your credit fairly quickly. Following are five steps you can use to help attain a speedy credit score boost:

1.  Pay down credit cards. The number one way to increase your credit score is to pay down your credit cards so they’re below 70% of your limits. Revolving credit like credit cards seems to have a more significant impact on credit scores than car loans, lines of credit, and so on.

2. Limit the use of credit cards. Racking up a large amount and then paying it off in monthly instalments can hurt your credit score. If there is a balance at the end of the month, this affects your score – credit formulas don’t take into account the fact that you may have paid the balance off the next month.

3. Check credit limits. If your lender is slower at reporting monthly transactions, this can have a significant impact on how other lenders view your file. Ensure everything’s up to date as old bills that have been paid can come back to haunt you. Some financial institutions don’t even report your maximum limits. As such, the credit bureau is left to only use the balance that’s on hand. The problem is, if you consistently charge the same amount each month – say $1,000 to $1,500 – it may appear to the credit-scoring agencies that you’re regularly maxing out your cards. The best bet is to pay your balances down or off before your statement periods close.

4. Keep old cards. Older credit is better credit. If you stop using older credit cards, the issuers may stop updating your accounts. As such, the cards can lose their weight in the credit formula and, therefore, may not be as valuable – even though you have had the cards for a long time. Use these cards periodically and then pay them off.

5. Don’t let mistakes build up. Always dispute any mistakes or situations that may harm your score. If, for instance, a cell phone bill is incorrect and the company will not amend it, you can dispute this by making the credit bureau aware of the situation.

 9. How much will I have to pay for closing costs?
As a general rule of thumb, it’s recommended that you put aside at least 1.5% of the purchase price (in addition to the down payment) strictly to cover closing costs. There are several items you should budget for when it comes to closing costs. Property Transfer Tax is charged whenever a property is purchased. The tax will vary from jurisdiction to jurisdiction, but I can help with the calculation. GST/HST is only charged on new homes, and does not affect homes priced at less than $400,000. Even homes that exceed the price threshold are only taxed on the portion that exceeds $400,000. Certain conditions may apply. Please contact you lawyer/notary for more detailed information. Your lawyer/notary will charge you a fee for drawing up the mortgage and conveyance of title. The amount of the fee will depend on the individual that you use. The typical cost is $900. If you’re purchasing a single-family home, you’ll need to give your lender a survey certificate showing where the property sits within the property lines. Some exceptions are made, however, on low loan-to-value deals and acreage properties. A survey will cost approximately $300-$350, but the lender will often accept a copy of an existing survey. Other costs include such things as an appraisal fee (approximately $200), title insurance and a home inspection (approximately $350).

 10. How much will my mortgage payments be?
Monthly mortgage payments vary based on several factors, including: the size of your mortgage; whether you’re paying mortgage default insurance; your mortgage amortization; your interest rate; and your frequency of making mortgage payments. You can view some useful calculators to find out your specific mortgage payments. Click below to view it: 

Open Up Ultimate Mortgage Calculator

1. Get Pre-Approved
Talk to your mortgage professional about how much home you can afford and get pre-approved before you start looking. If you find a house you’re crazy about, you can make an offer knowing exactly how much you can reasonably afford to pay each month on your mortgage.

2. Keep Your Credit Clean
Run a credit check on yourself and contact any creditors who haven’t updated your record in terms of canceled cards, balances that have been paid off, etc. Pay off outstanding high interest credit as soon as possible to make it easier to obtain approval for a mortgage.

3. Determine Your Priorities
Make a list of what you want, need and don’t want in a home.   Give a copy to your Realtor. If certain home types are definitely not for you, let your Realtor know. It will save both of you invaluable time and effort.

4. Check Out the Neighborhood
Familiarize yourself with the schools, property taxes, and other neighbourhood features. You’re getting more than just a home,, you’re buying the whole neighborhood package. Also review any covenants or homeowner’s association agreements thoroughly.

5. Consider Your Future Needs
As you look around the house, determine if it has adequate space for you and your family both now and in the future.

6. Keep Your Eyes Open
When you’re looking at a home, pay close attention to anything that might appear out of place, such as furniture awkwardly arranged to hide holes or stains in the carpeting. Turn on lights and appliances to see if you notice any irregularities in the wiring. Ask the seller when the roof, water heater and furnace were last replaced.

7. Write Out the Details
When you do make an offer, be sure to include everything you want from the seller, such as home inspection contingencies, items included with the sale of the house and any concessions you’d like the seller to make. Put everything in writing. Don’t trust any verbal agreements.

8. Get the Best Deal
Don’t be afraid to negotiate. This is especially true in a buyer’s market or when the seller is motivated to sell. Don’t worry if your first offer is rejected. You may have to offer more money the second time around, but at the same time you can ask for additional repairs. The offer you sign is a legally binding contract!

9. Get An Inspection
Have an inspection done to protect yourself. Skipping it could cost you several thousand dollars in the end so don’t skimp to save a couple hundred now. After you have the inspection done, read the report carefully and ask about anything you don’t understand. Follow the inspector as he/she performs the inspection. Ask any questions you may have.

10. Closing Costs and Considerations
Go over your closing costs before you close and ask any questions that may arise. You need to include these in your budget. They’ll include your first mortgage payment, property tax payments, legal fees, appraisal fees, mortgage application fee and any other fees. Your mortgage professional will provide you with written good faith estimate of closing costs. They will be happy to explain anything that is unclear to you at the time.

Once your Offer to Purchase has been accepted, go to see your lender. Your lender will verify (and update, if necessary) your financial information and put together what’s needed to complete the mortgage application. Your lender may ask you to get a property appraisal, a land survey, or both. You may also be asked to get title insurance. Your lender will tell you about the various types of mortgages, terms, interest rates, amortization periods and, payment schedules available.

Depending on your down payment, you may have a conventional mortgage or a high-ratio mortgage:

• A conventional mortgage is a mortgage loan that is equal to, or less than, 80% of the lending value of the property. The lending value is the property’s purchase price or market value — whichever is less. For a conventional mortgage, the down payment is at least 20% of the purchase price or market value.

• If your down payment is less than 20% of the home price, you will typically need a high-ratio mortgage. A high-ratio mortgage usually requires mortgage loan insurance. CMHC is a major provider of mortgage loan insurance. Your lender may add the mortgage loan insurance premium to your mortgage or ask you to pay it in full upon closing.

Mortgage Term
Your lender will tell you about the term options for the mortgage. The term is the length of time that the mortgage contract conditions, including interest rate, will be fixed. The term can be from six months up to ten years. A longer term (for example, five years) lets you plan ahead. It also protects you from interest rate increases. Think carefully about the term that you want, and don’t be afraid to ask your lender to figure out the differences between a one, two, five-year (or longer) term mortgage.

Mortgage Interest Rates
Mortgage interest rates are fixed, variable or adjustable:

• A fixed mortgage interest rate is a locked-in rate that will not increase for the term of the mortgage.

• A variable rate fluctuates based on market conditions. The mortgage payment remains unchanged.

• With an adjustable rate, both the interest rate and the mortgage payment vary, based on market conditions.

Open or Closed Mortgage

• A closed mortgage cannot be paid off, in whole or in part, before the end of its term. With a closed mortgage you must make only your monthly payments — you cannot pay more than the agreed payment. A closed mortgage is a good choice if you’d like to have a fixed monthly payment. With it you can carefully plan your monthly expenses. But, a closed mortgage is not flexible. There are often penalties, or restrictive conditions, if you want to pay an additional amount. A closed mortgage may be a poor choice if you decide to move before the end of the term, or if you want to benefit from a decrease of interest rates.

• An open mortgage is flexible. That means that you can usually pay off part of it, or the entire amount at any time without penalty. An open mortgage can be a good choice if you plan to sell your home in the near future. It can also be a good choice if you want to pay off a large sum of your mortgage loan. Most lenders let you convert an open mortgage to a closed mortgage at any time, although you may have to pay a small fee.

Amortization
Amortization is the length of time the entire mortgage debt will be repaid. Many mortgages are amortized over 25 years, but longer periods are available. The longer the amortization, the lower your scheduled mortgage payments, but the more interest you pay in the long run. If each mortgage term is five years, and the mortgage is amortized over 20 years, you will have to renegotiate the mortgage four times (every five years).

Payment Schedule
A mortgage loan is repaid in regular payments — monthly, biweekly or weekly. More frequent payment schedules (for example weekly) can save some interest costs by reducing the outstanding principal balance more quickly. The more payments you make in a year, the lower the overall interest you have to pay on your mortgage.