Information alone is not enough. A professional mortgage broker has something far more valuable: years of experience and your needs in mind. They put the information in context, they anticipate the variables and find the best loan for you. This is the kind of help you don’t want to be without.
Also, If you are looking to purchase a property with less than 20% of the purchase price as a down payment, all banks require that the Mortgage be insured through either The Canadian Mortgage and Housing Corporation (CMHC), Genworth Financial Canada or Canada Guaranty. These institutions provide mortgage insurance to home buyers and have identical premiums of which are listed below.
|LTV Ratio||Premium rate|
|Up to 65%||0.60% (in special circumstances)|
|65.01%-75%||0.75% (in special circumstances)|
|75.01%-80%||1.25% (in special circumstances)|
|80.01% – 85%||1.8%|
|85.01% – 90%||2.40%|
|90.01% – 95%||3.60%|
|*LTV: loan to Value||**premium is non-refundable|
Add 0.25% for each 5 year increase in added to amortization over 25 years
Mortgage loan insurance helps protects lenders against mortgage default, and enables consumers to purchase homes with as little as 5% down payment, with interest rates comparable to those with a 20% down payment!
To obtain mortgage loan insurance, lenders pay an insurance premium. Your lender will pass this cost on to you. Furthermore, the premium payable is based on a percentage of the home’s purchase price that is financed by a mortgage. The premium can be paid in a single lump sum or it can be added to your mortgage and included in your monthly payments.
For more information about mortgage insurance,
"I was very pleased with the professionalism I received from James and at Mortgages.ca. The rate I received from Mortagages.ca was more competitive than other rates I received online. I also appreciate very much that James followed up with me after the fact to ensure that everything ran smoothly. I would recommend James and Mortgages.ca."
- Karen C