The first step in obtaining a loan is to determine how much money you can borrow. In the case of buying a home, you should determine how much you can afford even before you begin looking.
Although Canadian lenders conform to standards set by Canadian government agencies, loan approval guidelines vary depending on the terms of each loan. In general, approval is based on two factors: your ability and willingness to repay the loan and the value of the property.
A mortgage associate will take a mortgage application by phone, in person or a client is welcome to submit an application online at their convenience. Once your mortgage application has been received we will start the loan approval process immediately by way of MyMortgage.ca verifying all of the information you have given.
Canadian home financing loans come in many shapes and sizes. Deciding which loan makes the most sense for your financial situation and goals means understanding the benefits of each. Whether you are buying a home or refinancing, there are 4 basic types of Canadian home financing loans. Each has different reasons why you'd choose them.
1) Fixed Rate Mortgage
Fixed rate mortgages usually have terms lasting 1 to 10 years. Throughout those years, the interest rate and monthly payments remain the same. You would select this type of loan when you:
2) Adjustable Rate Mortgage
Adjustable Rate Mortgages (often called ARMs) typically last for 3 to 5 years. But during those years, the interest rate on the loan may go up or down. Monthly payments increase or decrease. You would select this type of loan when you:
3) Combination Rate Mortgage
Combination rate mortgages combine fixed interest rates and adjustable interest rates. You would select this type of loan when you:
4) Home Equity Lines of credit
MyMortgage.ca can offer Home Equity Line of Credits (HELOC) up to 65% LTV, so homeowners can enjoy access to additional funds with more flexibility and convenience. Lines of credits have become an innovative way to finance your home purchase. With as little as 35% down you can utilize a line of credit on your home. In the past clients had to put down 20%. This new line of credit is fully open for repayment without penalty and can be used for any purpose, such as home renovations, investments, a vacation, child’s education, or debt consolidation. You can borrow and pay back as much as you need, up to your credit limit, and pay interest only.
80% Home Equity Line of Credit:
The client will submit to the mortgage associate any appropriate documentation required (ie: job letters, pay stubs, offer to purchase, feature sheet).
Click here to access Document Check List.
The mortgage associate will then shop the application for the best Canadian mortgage financing product and rate.
The mortgage associate will send the mortgage approval (commitment) to the client via email or fax.
The mortgage associate will then review the mortgage commitment with the client.
Any additional documents that the lender may request should be sent to the mortgage assocaite no later than 10 days after mortgage approval.
The mortgage lender will send the mortgage instructions, to your lawyer.
After your loan is approved, you are ready to sign the final loan documents. You must review the documents prior to signing and make sure that the interest rate and loan terms are what you were promised. Also, verify that the name and address on the loan documents are accurate. The signing normally takes place in front of a notary public or lawyer.
There are also several fees associated with obtaining a mortgage and transferring property ownership which you will be expected to pay at closing. Bring a bank draft check for the down payment and closing costs if required. Personal checks are normally not accepted. You also will need to show your homeowner's insurance policy, and any other requirements such as flood insurance or fire insurance, plus proof of payment.
Your mortgage financing loan will normally close shortly after you have signed the loan documents.
Please Note – If there are any changes to your application please notify your mortgage associate immediatly as this may effect your approval.
Please Note – If you decide to change your payment frequency, term or mortgage amount you must notify your mortgage associate and provide appropriate paperwork to support changes applicable.