The Canadian Housing and Mortgage Corporation (CMHC) is Canada’s national housing agency, and provides mortgage insurance for lending institutions. This provides Canadian banks and lenders with default insurance on mortgage loans with a down payment lower than 25%, which are considered high-risk. If your mortgage falls into this category, you may need to be prepared to have some funds available to cover additional fees that may be added to your loan to cover the costs of this insurance.
We can show you ways to avoid these extra costs!
Mortgage for Less can show you how to avoid paying the CMHC premium using a second mortgage. This option can save you thousands of dollars, but you won’t get it through your bank because they can’t provide second mortgage financing.Talk to a Mortgage for Less mortgage loan specialist about how you can take advantage of this option.
A lender or mortgage company will expect to see a two to three-year history record of employment from a mortgage applicant. This could include:
TIP: To eliminate obstacles in the mortgage loan process, keep up-to-date financial information and get your records in order before you begin to look for a new property.
Real estate agents are certified professionals who are trained to offer buyers a number of services, including:
A formal offer to purchase agreement usually includes a clause for an inspection of the property. A buyer is not legally required to arrange a home inspection; however, an inspection provides an objective opinion regarding the condition of the property the buyer wishes to purchase.
You can find a home inspection association in your local telephone directory and they can provide a list of qualified home inspectors who can provide a written inspection report.
TIP: Be prepared to budget approximately $300-$400 for the inspection fee – remember, though, a home mortgage is potentially a profitable, long-term investment, so this is a relatively small amount to spend.
Completing a property purchase and finalizing the mortgage financing will require the services of a lawyer. When a lender issues a mortgage commitment, they will forward copies of the mortgage instructions to your lawyer.
Your lawyer will:
On the day the property transfers ownership, the buyer’s lawyer will meet with the seller’s or vendor’s lawyer at a registry office to exchange relevant documents, money and keys. The transaction is declared “closed” when these exchanges take place.
The lawyer is then required to register the documents that transfer the property title to the buyer(s) name(s), and when this is completed he or she will relinquish any keys to the client.
TIP: A lawyer in general practice will be able to complete your purchase; however, lawyers with a focused real estate practice may prove a better resource if you are unsure of what to do, or have complications in your purchase agreement or mortgage.
At Mortgage for Less, we want you to be “A client for life”, so we recommend only realtors, lawyers and home inspectors that provide the same unmatched service that we do.Back