Important points and Questions About Mortgages and Financing
Securing a mortgage can help you purchase a new home for your family, leading to a lifetime of happy memories. However, when it comes to mortgages, clients have a ton of questions but often find answers difficult to come by.
Consequently, Das Mortgage Finance wants to arm you with the most accurate information to help you understand the mortgage process. To do this, we’ve answered some of the most frequently asked questions about mortgage financing.
1. Why should I use a mortgage broker?
The services provided by a mortgage broker is free, which will save you time and money on doing research. Calling a Mortgage agent is as good as visiting over sixty different Banks, Credit Unions, and Trust Companies. A mortgage agent is also available 24/7 to cater to your financial needs.
2. What is a down payment for a house?
A down payment refers to the funds paid upfront towards the purchase of a property to obtain a mortgage.
3. Where and how should I invest $30,000?
There are several smart ways to invest $30,000. The market offers you many options that include everything from investing in physical assets to acquiring shares in real estate trusts.
Consider the following options:
(a) Use the money as a down payment for a rental property (minimum 20%)
(b) Invest in the pre-construction side of the property business.
(c) Invest in a primary residence purchase with as low as a 5% down payment.
(d) Explore real estate partnerships.
4. How much do I need to put down for a house in Ontario?
The new breakdown is as follows:
(a) For homes with a purchase price less than or equal to $500,000, the minimum down payment is 5%.
(b) For homes with a purchase price greater than $500,000, but less than $1 Million, the minimum down payment is 5% (of the first $500,000) plus 10% (of the remaining balance).
(c) For purchase of $1 Million and above, a 20% down payment is required.
5. What is a mortgage pre-approval?
A mortgage pre-approval is a valuable tool that can help get an estimate of how much you can afford to spend on your home. It means that the lender has checked your credit to approve a specific mortgage/loan amount based on the information provided, which is usually for a particular period, such as 120 days.
6. What is a fixed-rate mortgage?
A fixed-rate mortgage’s interest rate gets set for a predetermined period of usually six months to ten years. It offers the security of knowing what you will be paying for the term selected without rate fluctuation.
7. What is a variable rate mortgage?
Your monthly mortgage payment can fluctuate with a variable mortgage depending on the prime lending rate. Your mortgage payments will go up if the prime rate increases.
8. How can I use my RRSPs to buy my first home?
With the federal government’s Home Buyer’s Plan, you can use up to $35,000 tax-free in RRSP savings ($70,000 for a couple) to help cover the down payment on your first home. From there, you will have fifteen years to repay your RRSP. The RRSP funds you are using must be on deposit for at least ninety days. You will also need a signed agreement to buy a qualifying home to qualify under the First Time Home Buyers plan.
If you have any more questions about mortgage financing, get in touch with the experts at Das Mortgage Finance. As a leading mortgage broker in Mississauga, Ontario, we provide access to a vast network of lenders and render customized services.
Our services include mortgage alliance credit cards, mortgages, home and auto insurance, commercial financing, residential financing, and home equity loans. We also provide investment property mortgages, mortgage refinancing, and private lending mortgages for clients.
We serve clients across Ajax, Clarington, Pickering, Uxbridge, Whitby, Burlington, Halton Hills, Milton, Oakville, Brampton, Richmond Hill, Vaughan, Whitchurch-Stouffville, GTA, and the surrounding areas of Guelph, Shelburne, Alliston, Barrie, Oshawa, Kingston, and Georgetown.
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