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Frequently Asked Questions

What are the benefits of choosing a mortgage agent ?

A mortgage agent offers the opportunity for you to get independent advice on your financial options.

Independent mortgage agents are not tied to any one lender or range of products. Our goal is to help you successfully finance your home or property by first getting to know you and your home ownership goals. We will make a recommendation, drawing from available mortgage products that match your needs, and we will decide together on what’s right for you.

Read More > Top 10 reasons to use a mortgage broker/agent.

What is a Home Equity Line of Credit ?

A home equity line of credit is a credit facility which allows you to borrow money against the accumulated value or equity of your property. Home equity lines of credit work like a regular revolving credit line. When you make payments on the debt, the payment is added back to the original amount borrowed.

Can I restructure my mortgage to get the money I need to travel ?

You can restructure your finances by using the equity in your home. This is an opportunity to save a ton of money so you can do the things you really want to do! Travel, Renovate, etc.

Many people are interested in consolidating high interest credit card debt, lowering their monthly payments and increasing their cash flow. Some people dream of taking elaborate vacations, renovating their homes or taking advantage of investment opportunities.

Refinancing your home and utilizing the accrued equity can be an excellent way to achieve this.

Do I qualify for a mortgage if I am self-employed ?

There are opportunities for those that are self-employed to qualify for a mortgage. As a mortgage agent, we have various lending partners to pick from, and each of those partners have different criteria. We review each person’s request individually.

The following is an example.

Solutions for borrowers with stated income less than a 2 year track record.

Just one of our Lenders criteria:

These solutions are suitable for borrowers who are self-employed for less than two years or who earn commissions or bonuses that cannot be documented for two years. Borrowers stating their income from any reasonable source, including full-time or part-time employment are eligible. A Notice of Assessment (NOA) is not always required.

Income Requirements

• Fully documented verifiable income or,

• Self-declared income letter, and one of (in order of preference):

• NOA not more than 2 years old

• Accountant prepared financial statements or T1 Generals

• Accountant’s letter

• 3 – 6 month’s bank statements

• Any one of the above may also need to be supported by copies of contracts or sales orders or a business licence

• Evidence that income taxes are paid current (NOA, Accountants’ letter or T1 Generals

What is a Gift Letter?

A gift letter can be used when a relative or friend is giving you gift money to help with a down payment on a house purchase. A lender or bank requires a written documentation that the money is in fact a gift not a loan.

What are the benefits of being a First Time Home Buyer ?

If you are purchasing a home for the first time, or have not owned your principal dwelling place for the last 5 years, you qualify as a first time home buyer.

1. First-time Home Buyers’ (FTHB) tax Credit – in 2009, the Government of Canada introduced a FTHB Tax Credit. A $5,000 non-refundable income tax credit is available for those who qualify. To qualify for this credit, the home must be located in Canada and can include freehold homes, mobile homes, condominiums, and apartments. Shares in co-op housing that have an equity stake will also qualify.

2. RRSP withdrawal availability for a first time home buyer to use as a down payment is allowed up to $25,000. The money is not taxed, but you do have to repay the money starting in 2 years and completely paid back in 15 years.

3. Ontario Government offers a land transfer tax refund up to $2,000. In the City of Toronto, a first time owner can receive a maximum of $3,725.

Relevant Links

http://www.cra-arc.gc.ca/gncy/bdgt/2009/fqhbtc-eng.html

http://www.cmhc-schl.gc.ca/en/co/buho/buho_008.cfm

http://canadaonline.about.com/od/personalincometax/qt/home_buyers_tax_credit.htm

http://www.getwhatyouwant.ca/buy-with-brel/first-time-buyers-2/first-time-buyers
http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/rrsp-reer/hbp-rap/menu-eng.html

My mortgage is coming up for renewal. What do I need to do?

1. Have you explored all your options?

2. Are you comfortable with your payments?

3. Do you need cash flow for other things?

4. Can you handle fluctuating rates?

5. Will you sell soon?

6. Are you thinking about a major renovation?

7. When do you want to be “Mortgage-Free”?

8. Could you use your home equity to fulfill other goals?

9. Have your insurance needs changed?

10. Are you getting the best rates and terms?

Read more > 10 Things to consider before your mortgage renews.

What is a Home Improvement Mortgage?

Looking to build a new home that requires some fixing up? How about improving your home through some needed renovations? CMHC (Canadian Mortgage and Housing Corporation) Improvement Program (formerly known as the Purchase Plus Improvements program) enables mortgage professionals to offer greater financing choice to borrowers who want to renovate with the outcome to increase the value of their property.

Mortgage Features

• New home construction and purchase or refinance with improvements

• CMHC insured advances during construction or improvement period with flexible advancing options

• Up to 10% mortgage amount against the value of the home after improvements are made for home purchase

• Up to 20% for refinancing with improvements

• Funds can be advanced when needed throughout the project with no additional fees

http://www.cmhc.ca/en/hoficlincl/moloin/hopr/upload/CMHC_Improvement.pdf