If you're thinking of buying a house in the near future, it is prudent to get a pre-approval on your mortgage as this will:

1. guarantee you an interest rate for up to 120 days providing peace of mind as it eliminates worrying about rates increasing while you search for the right property, should rates drop, most lenders will give you the lower rate.
2. keep you focused on shopping for homes within your price range, thus saving you the horrors of falling in love with a property you can’t afford.
3. Provides details on monthly mortgage payments, thus facilitating proper planning.

How pre-approval works

Getting a mortgage pre-approval means you’re preparing to take the next step in the home-buying process. Working with a mortgage broker to be your guide through the pre-approval process. The MortgageMc is your best partner to walk with you throughout the process to ensure your success.

We will discuss your financial strategy and needs, mortgage amount, down payment, purchase price, etc. and match these with the best mortgage options that best suit your needs. These options include fixed versus variable rate, interest terms, payment options and amortization period.

In order to complete the process we will take an application, which will require you to provide details on your; employment, income, assets, down payment (if applicable), liabilities and you will give us written permission to obtain a credit bureau report. All this will be used to acquire a conditional approval, after which you will be required to provide documentation substantiating the information provided in the application in order to meet the conditions of the approval.

It is important to note that pre-approvals are subject to you maintaining good credit and are usually good for 60, 90 or 120 days depending on the lender and the situation that suits you best.

Why get pre-approved?

1. Negotiating Power -
   Your pre-approved status may give you more negotiating power with a seller.
2. Guaranteed Interest Rate -
   Locks in an interest rate for up to 120 days providing peace of mind as it eliminates worrying about rates increasing while you search for the right property, should rates drop, most lenders will give you the lower rate.
3. Focused When Home Shopping -
   keep you focused on shopping for homes within your price range, thus saving you the horrors of falling in love with a property you can’t afford.
4. Facilitates Planning -
   Provides details on your monthly payment amounts, as well as how much your down payment will be, thus facilitating proper planning.

Many first time home buyers as well as seasoned home buyers grapple with the question, “When should I get pre-approved for a mortgage, in the house buying process?”

Short answer: Before you start house-hunting!

Long answer: The best move is to get pre-approved for a mortgage before you start looking for a home. A mortgage pre-approval will not only help you set your budget but also your expectations. A pre-approval is like money in your pocket as it allows you to know how much you can afford. It’ll also signal to real estate agents and sellers that you’re serious about buying a home and have the money to back it up, which affords you greater negotiating power when making an offer on a house.

A pre-approval basically says that a lender will loan you a certain amount of money at a certain interest rate so that you can afford to buy a home. There’s no fee, no commitment and you can get pre-approved by using my Online Application or Make an Appointment and the MortgageMc will be happy to walk with you through the process.

Important Pieces of Documentation Required:

• Identification – to verify you are who you claim to be.
• Proof of income – pay stubs, a letter from your employer, notice of assessment and T4s will be needed to justify or verify your income.
• Bank account and investment statements – to prove you can cover down-payment and closing cost.
• Proof of assets – like a car, cottage, or boat.
• Information about your debt & credit – this includes student loans, car loans, and credit cards. Additionally, you will give written approval for your credit report to be accessed.

The MortgageMc will be your guide through the process to ensure it is very successful.

Refinancing a mortgage means paying off an existing loan and replacing it with a new one. There are many reasons why homeowners refinance:

• To obtain a lower interest rate
• To shorten the term of their mortgage
• To convert from an adjustable-rate mortgage (ARM) to a fixed-rate mortgage, or vice versa
• To tap into home equity to raise funds to deal with a financial emergency, finance a large purchase, or consolidate debt

Since refinancing can cost between 3% and 6% of a loan's principal and—as with an original mortgage—requires an appraisal, title search, and application fees, it's important for a homeowner to determine whether refinancing is a wise financial decision.

A flex down mortgage option is a great way to buy a primary residence without having the mandatory minimum of 5% down payment saved up. With this program, you borrow the 5% down payment through a loan or line of credit separate from the mortgage.

To qualify you can’t own other properties and you must have strong credit, a score of 680 and above with a clean credit history. It is crucial that, when all your debt is totalled, including the principal and interest payment for this mortgage, property taxes and heating cost for this property, combined with the repayment amounts of the loan or line of credit to be used for the 5% down payment and any other debt such as credit cards, car loans etc, this amount cannot exceed 44% of your annual gross income.

Buying a home will always require some amount of cash upfront, also known as a down payment. ... The main reason is simply that the larger your down payment, the less you'll need to borrow, and the less interest you'll pay. However, just getting approved for a mortgage relies on the down payment as well.

What is a Reverse Mortgage?

In Canada, a reverse mortgage is a type of loan that is secured against your principal residence. This special Mortgage gives you access to tax-free cash with no mandatory ongoing payments. While you continue to, own and live in your home, and you’ll never be forced to move or sell your property, as long as:

• you live there for at least six months per year
• you keep your residence in good order
• you remain current with your property tax payments
• you adhere to the loan terms

You may be eligible for a reverse mortgage if:

• you are 55 years old or over
• you live in the major urban centres of Ontario, Quebec, British Columbia, or Alberta
• your home is your principal residence (you live there for at least six months of a calendar year)
• all title holders of the residence apply as joint borrowers (in ON, AB, BC)
• the residence is owner-occupied and not a secondary home or cottage
• your home is detached, semi-detached, condo, or townhome

You can use a reverse mortgage for things like:

• paying off debt
• covering everyday expenses
• making renovations
• supporting your family
• paying for in-home care

Interest is calculated on the outstanding balance of both principal and interest throughout the life of the loan. The outstanding balance will increase accordingly over time.

Your reverse mortgage must be repaid when the last remaining homeowner leaves the home, which generally happens through sale of property where the proceeds are used to pay back the loan.

As long as you meet your mortgage obligations you will never owe more than the fair market value of your property where Fair Market Value is the amount that would be paid on the open market, on the applicable date, to buy the property, assuming there are no legal claims against the property.