Helpful Home Buying Information

Who is CMHC?

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.

Record of employment

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:

  • A signed letter from a full-time employer outlining level of salary, source deductions, and bonuses or commissions
  • A letter of income and pay-stubs from an employer for consistent part-time work over a minimum of two years
  • Three years of financial statements or records, and tax returns for self-employed individuals.

    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.

The other players on your team

Real Estate Agents

Real estate agents are certified professionals who are trained to offer buyers a number of services, including:

  • Providing a menu of properties suitable to budget requirements;
  • Recommending government-sponsored programs; and
  • Conducting negotiations on the buyer’s behalf to complete an Agreement of Purchase and Sale.
    TIP: Prepare some questions for potential real-estate agents to make sure that they will work in your best interests:
  • Are they familiar with the area where you want to buy?
  • How many clients are they personally serving now? Do they have too many to serve your needs effectively?
  • What services can they offer you?
  • Ask for one or two references, and an attack plan for what they will do for you.

Home Inspectors

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.

Real Estate Lawyers

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:

  • Research the property title;
  • Ensure taxes and utility accounts are paid in full;
  • Review subdivision agreements;
  • Verify municipal building and zoning requirements; and
  • Review the property survey to prepare and finalize your mortgage for registration.

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.


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