WHAT IS A PRE-APPROVAL?
We highly recommend that you get pre-approved before you start your property search. It is a FREE service and will allow you to: narrow down your property search to within your price range, have the confidence to negotiate your purchase, understand what your mortgage payments will be, and lock in a rate for up to 4 months while you search for a property.
PROPERTY TRANSFER TAX?
This tax is charged by the Provincial Government and is collected by your lawyer at closing. Each Province varies as to the amount but it is usually a percentage of the purchase price. For example in British Columbia, the amount the purchaser must pay is 1% of the first $200,000 and 2% of the balance.
FIXED OR VARIABLE?
A Closed or Fixed Mortgage offers you the security of locking in your interest rate for the term of your mortgage, so you know exactly how much principal and interest you will be paying. A Variable Rate Mortgage allows you to take advantage of today’s low Prime Rate. Most variable rate products are set either at Prime or slightly below. We typically recommend going with a fixed rate for rental properties and variable rates for your primary residence; however, the rate you choose is completely up to you and what you’re comfortable with.
IMPROVING CREDIT?
It is important to maintain an excellent credit history if you are interested in applying for a mortgage. You can improve your credit by paying your bills on time and by keeping your credit account balances below 75% of the authorized limit. It is best to make the minimum payment instead of missing payments altogether.