Did You Know?
From our experience helping individuals achieve their financial goals, we've uncovered some common facts that people are surprised to learn.
Hey London, Ontario! Here are some things people are often surprised to learn when it comes to mortgages and working with our mortgage brokers:
We don't charge any fees.
All of our services are free. We work for you and have your best interest in mind. It's only on the rarest occasion that we would have to charge a fee, such as in the event of a situation requiring a challenging credit solution. It's typically when financing isn't possible through a bank, and you would be made aware of this potential for charges ahead of time.
The cost of buying and selling a home is more than you think.
We have many people who believe that when you buy the home you only need the down payment and approximately $1000 for legal fees. However, the real cost can run much more than that. When you are selling a home, you need to consider the real estate fees, legal fees and the fees associated with the purchase of another home. Then, there is also the Land Transfer Tax, title insurance and tax on real estate fees. The more you know ahead of time, the less surprised (and stressed) you’ll be during the process. We like to make sure that our clients are informed and have a good understanding of what fees they can anticipate. To assist in planning how much you will be allotting to the purchase or sale of a home, we have a fee guide to help track all the different expenses you can anticipate.
There is a program that allows you to do improvements on a newly purchased home.
DIY and home renovation is popular amongst buyers who are looking to put in a bit of sweat equity. To accomodate this, most lenders will allow a 10% increase in price of the home in order to support the cost of these improvements. The improvements must be stated at the beginning of the application for approval, and once the improvements are completed, a signed appraisal saying they are complete will release the funds to the clients which will allow them to pay off any debt they have incurred. If you are interested in this option, let us know and we can explain the details of how to begin the application process and go through the potential benefits for your situation.
There are different types of mortgage charges.
Not all mortgages are created equally. It’s important to understand the differences between a collateral and a standard charge mortgage.The primary difference is that a collateral charge mortgage registers the mortgage for more money than you require at closing instead of with a standard charge mortgage, which is just the amount you need to close your transaction.
The major downside to a collateral charge mortgage is when it comes to renewing your mortgage. For borrowers who want to keep their options open at maturity and have negotiating power with their lender, this isn’t the best product feature because collateral charge mortgages are difficult to transfer from one lender to another.
If you want to change lenders in order to seek a better product or rate in the future, you have to start from the beginning and pay new legal fees, which range from $500 to $1,000. With a standard charge mortgage, in most cases, the new lender will cover the charges under a “straight switch” in order to earn your business.
You can still get approved for a mortgage even if you have poor credit history.
To be honest, everyone makes mistakes. Just because you have made a few financial slips doesn’t mean that home ownership is out of your reach. We can work closely with you to identify where you need to improve and determine a step-by-step approach to improving your credit and setting you on the path to getting pre-approved. While it may be difficult to get a mortgage through a traditional institution, there are lenders who are experienced in working with individuals who have poor credit history. Get in touch with us to book a no-obligation consultation, so we can sit down and develop a plan that is unique to your needs.
You can buy a house with 0% down payment.
Sound too good to be true? It’s not! We still have lenders who will allow a 100% mortgage. This is usually reserved for those who have an exceptional credit history. While the interest rate will be slightly higher, this allows you to acquire the property fast and best of all: with no down payment. To learn more about how you do not need to have a 20% down payment, check out our blog post on this topic.
We assist with mortgage financing in London, Ontario AND all across Canada.
Although we serve the mortgage needs of those in London, ON (our homebase), we are able to assist with mortgage financing for individuals across Canada. The only province that we do not serve is Quebec.