1. Is there a cost to using a Mortgage Broker?
Our services are free for you as the lenders pay us to bring them business.
2. What documents will I need?
a) Photo ID
b) Proof of income via a letter of employment, current pay stub
c) Last 2 years Notice of Assessment
d) Proof of down payment (90 days account history)
3. Are there Zero Down Payment Mortgages?
There is no longer zero down payment mortgages however there is a flex down mortgage product where you have the ability to borrow your down payment from your own line of credit however restrictions apply. Cashback mortgages are still around but you cannot use the cashback as your down payment, you have to come up with your own money for the down payment and the mortgage rates are higher. If you take a cashback mortgage and break the mortgage early, the amount of money you received from the cashback has to be repaid and is prorated. A gift from an immediate family member is another way to help you come up with the down payment for your new home purchase. We can help you get approved for a mortgage and can help you plan for your down payment so you can get in your home quickly.
4. What mortgage options are available for First Time Homebuyers?
As a first time home buyer, you have the ability to access your RRSP for the down payment without being taxed on them. Speak to your RRSP investment advisor for details. If you contribute money into your RRSP you get a tax break and a nice refund. You can access that money for your first time home buyer down payment of up to $35,000 per applicant. You have 15 years to repay it otherwise you are taxed on the money. The money you deposit into your RSP’s needs to be in your RSP account for over 90 days before it can be withdrawn tax-free under the First Time Homebuyers Program.
5. If I want to buy a rental property what should I know?
Buying a rental property for investment purposes requires a minimum down payment of 20%. Less then 20% down payment requires mortgage default insurance with CMHC or Genworth and they will not insure rental properties. Insured Mortgages are only for owner-occupied homes. If you are planning to purchase a rental property for investment purposes you will need a minimum of 20% down payment to qualify for the new mortgage and it must be from your own saved resources. Some lenders require a higher amount. If you plan on purchasing a duplex or a property that has a legal suite and you live in it, then you can purchase this type of home with a 5% down payment. This type of property can help lower your monthly expenses as a tenant will help offset your mortgage payments.
If you have any other Frequently Asked Questions (F.A.Q) that you need to be answered, please reach out to your Trusted Edmonton Mortgage Broker. Mortgage Tailors has been serving Albertans for 20 years as their trusted mortgage advisor.