FAQ’S

Fixed-rate Mortgages: Interest rates that remain the same for a set period, usually 3, 5, or 10 years.

Variable-rate Mortgages: Interest rates that fluctuate based on market conditions, typically tied to the Bank of Canada’s prime rate.

High-ratio Mortgages: For homebuyers who are unable to make a 20% down payment. These are insured through the Canada Mortgage and Housing Corporation (CMHC), Genworth, or Canada Guaranty.

Conventional Mortgages: For borrowers with a 20% or more down payment, not requiring mortgage default insurance.

First-time Homebuyer Programs: Special mortgage options and government programs tailored for first-time homebuyers, such as the First-Time Home Buyer Incentive (FTHBI).

Refinancing: For those looking to refinance to get a better rate, access equity, or consolidate debt.

Home Equity Line of Credit (HELOC): Access the equity in your home for ongoing financial flexibility.

At Mortgages on Point, we are committed to providing personalized service and offering a variety of mortgage products from top lenders across Canada. Our team of experienced mortgage brokers takes the time to understand your unique financial situation and guide you through the mortgage process, ensuring you get the best possible rates and terms for your needs.

You can apply for a mortgage with us in several easy ways:

• Online Application: Complete our secure online application form for an initial assessment.

• Phone Consultation: Speak directly with one of our mortgage brokers for personalized advice and recommendations.

• In-person Appointment: Schedule an in-office consultation to discuss your mortgage options and walk through the application process.

To qualify for a mortgage in Canada, lenders typically assess the following factors:

• Credit Score: Lenders usually require a minimum credit score of 600-650, though higher scores can help you secure better rates.

• Income & Employment History: Lenders will assess your stable income sources and employment history to ensure you can meet your mortgage payments.

• Debt-to-Income Ratio (TDS): Your total monthly debt payments divided by your gross monthly income, typically should not exceed 40-44%.

• Down Payment: The minimum down payment required is usually 5% for homes under $500,000. For homes over $500,000, a 10% down payment is required for the portion exceeding $500,000.

• Pre-qualification: A quick estimate of how much you might be able to borrow based on basic financial information like income, debts, and assets. This is generally informal and doesn’t involve a credit check.

• Pre-approval: A more detailed process where the lender evaluates your financial situation, checks your credit report, and confirms how much they are willing to lend you. A pre-approval carries more weight, especially when you are ready to make an offer on a home.

Closing costs are the fees associated with finalizing your mortgage and purchasing your home. In Canada, closing costs typically include:

• Land Transfer Tax: A provincial tax that is calculated based on the purchase price of your home (this varies by province).

• Home Inspection Fees: An optional but often recommended service to ensure the home is in good condition.

• Legal Fees: Costs associated with hiring a lawyer or notary to handle the legal aspects of the transaction.

• Appraisal Fees: In some cases, an appraisal may be required to determine the home’s market value.

• Title Insurance: Protects against any issues with the title or ownership of the property.

• Mortgage Default Insurance (if applicable): Required if your down payment is less than 20%.

Closing costs typically range from 1.5% to 4% of the home’s purchase price, depending on the property and location.

The time it takes to secure a mortgage can vary depending on several factors, such as the complexity of the loan and how quickly you can provide necessary documentation. On average, our lenders provide a mortgage approval in 24-72 hrs from the time the deal is submitted to them, we will always be upfront and advise the timelines on your specific circumstances.

Yes, refinancing is a common service we offer at Mortgages on Point. Refinancing can help you secure a better interest rate, reduce your monthly payments, consolidate debt, or access the equity in your home. Our brokers will walk you through the refinancing process and help you understand whether it’s the right option based on your goals.

Yes, We do this all the time, we have clients that feel the need to switch to another lender to manage their finances due to changing life situations. Since Nov 21, 2024, there has been no Stress-Test on any switches / transfers. This makes getting approvals easier for us and peace of mind for you.