Mortgages are pretty complex, so it's not a wonder you have questions! Luckily for you though, I have answers. I've answered some of the more frequently asked questions I get here, but am always available to answer anything you might be curious about.
In most cases, it's completely free to work with me because I'm paid by the mortgage lender rather than my clients. There are times when I may have to charge a fee, typically for alternative financing options. In any case, any time a fee needs to be charged, I will clearly communicate that with you upfront, both verbally and written, well before you sign into any agreements.
Mortgage Agents and Brokers work with YOU. Mortgage specialists at the bank work for the BANK.
As a Mortgage Broker with BRX Mortgage, I am in the business of getting you the best mortgage for your situation. With access to mortgage lenders nationwide, I'll do the shopping for you to compare not only interest rates, but other mortgage features that you might not have even considered before. I can then present your options to you based on what your priorities are. I'm available 7 days a week, even outside of regular business hours and you always talk to me directly. No need for formal communication either; you can call, text, email, or set up an in-person appointment during the mortgage process and beyond. The best part is that I'm paid by the mortgage lenders in most cases, so you get all of these perks FOR FREE!
These two terms are used interchangeably by most people, but there are some key differences between them.
'Pre-Qualified' means that you have given me all of the information I need to reasonably estimate what your maximum purchase price is. It may or may not involve a full credit check - that's completely your choice! It doesn't include a rate hold feature, so if rates go up while you're shopping for a home, you'll end up with that higher rate amount.
'Pre-Approved' means that you have given me all of the information that both me and the mortgage lender need to reasonably estimate what your maximum purchase price is. It requires a full credit check. It allows you to put a hold on current rates if we're in a rate environment where they might go up! While a pre-approval doesn't guarantee an approval, they can be handy if you're in an increasing rate environment or if your situation is unique and you need that extra assurance that the mortgage lender is okay with giving you financing. Sometimes, a pre-approval certificate can give you a competitive edge when you're putting offers in on homes because it gives the seller more confidence that you can actually afford to buy their house.
100% YES! I can't emphasize this enough. Going through my quick pre-approval process will give you and your Realtor the confidence you need to put in that winning offer on your dream home! It can also help you figure out if there's anything you need to do before you start making offers, like building your credit or paying down some debts. Whatever the outcome of your pre-approval, I'll be there to support you along the way so you can reach your homeownership goals!
There are 4 main expenses when buying a house that are owed at different times throughout the process:
Deposit. This is an out-of-pocket amount payable to your realtors' trust account at the time your offer is accepted by the seller. Your Realtor can help you decide how much you want to offer as a deposit, but it's usually an amount up to 5% of the purchase price. It is included as part of your total down payment amount.
Home inspection: This is an optional (but recommended) cost that is payable to the home inspector before or on the date of the inspection. They'll help you find any potential issues with the house you're buying. You can expect this to cost between $300-$600, but varies based on the complexity of the inspection.
Down payment. This is money that you owe to the seller by the closing date. Deposit amounts are subtracted from your total down payment amount owed. The minimum down payment required depends on the purchase price. The next FAQ answers this!
Closing costs. These are costs that are due when you sign the final paperwork with your lawyer. They might include Land Transfer Tax, title insurance, legal fees, or any other legal processes that were necessary to complete the purchase. You should expect that closing costs will be between 1.5% and 4% of the purchase price.
There are other costs that you may need to consider, such as appraisal, property tax pre-payments, utility hook-up pre-payments, land survey, tax on mortgage default insurance, and so on. This list isn't exhaustive, but I can help you to estimate costs specific to your purchase when we work together.
The minimum down payment needed in Canada is based on the purchase price:
$500k and under: 5% of the purchase price
$500,001 to $1.5M: 5% on the first $500k, plus 10% the amount between $500k and $1,499,999.
$1.5M and up: 20% of the total purchase price
Neither option is necessarily better than the other, but there are advantages and disadvantages of each that can make one a better option for you and your situation.
Fixed rate mortgages offer you the peace of mind that your interest rate will stay the same for your entire mortgage term. This may help you better manage your monthly expenses. The downfall of fixed rates is that the penalty to break your mortgage early can be higher when compared to the penalties for their variable rate counterparts.
Variable or adjustable rate mortgages have interest rates that rise and fall when your mortgage lender's Prime Rate does. You might save money going this route, but because there is a risk of rates going up, you have to be willing to take the chance you might spend more, too.
I joined BRX Mortgage mostly because of all of the amazing things I had heard about it from other people... and now that I'm here, I'm realizing that there's even more to love than I could have imagined. Here's a video and more info on why I chose BRX (and why you might want to, too!): https://www.whybrx.com/jess-dusome
That's okay! I still learn something new about mortgages every single day, because this industry is ever-changing. You can put your questions in an email, book a call with me, or simply shoot me a text and I'll do my best to answer any questions you have!
BRX Mortgage Inc.
Brokerage Lic. 13463
I 💚 BRX Mortgage... here's why!
