Why choose The Biggar Mortgage Team?
We are a well-established, local mortgage team that offers expert guidance, advice and competitive rates. This has led us to become a top 10% producing BMO Mortgage Specialist team in Canada.
How much do I need for a down payment?
Mortgage insurance products allow home buyers to put as little as 5% down payment on a home. We can help you decide how much of a down payment you’ll need to purchase the home you want, while still maintaining your budget over the long term. Your down payment can come from savings, home equity or from a financial gift provided by a family member.
What is the benefit of getting pre-approved?
A mortgage pre-approval is just like applying for a mortgage, but it is done before you shop for a home. You will determine how much you can comfortably afford to pay each month and what price range of home you can look at purchasing. With a mortgage pre-approval you can shop with confidence, knowing that the biggest hurdle during the home buying process has been jumped. A mortgage pre-approvals terms and conditions are guaranteed by the bank up to 90 days, giving you the protection of ‘locking in’ a mortgage rate if rates increase while you look for a home to purchase. If interest rates go down during the 90 days, you will be offered the lower rate. You will still need to write a “subject to financing” condition on the purchase agreement when you write an offer. The bank will still need to approve the home you are purchasing and have your mortgage application approved by a default insurer, if applicable.
What is the best term to consider?
Usually the shorter the term, the lower the rate. However many people prefer the comfort of a longer mortgage term for its stability. We often recommend a longer term for first-time buyers. Variable rate mortgages are also a very attractive product that may be right for you. Talk to us to determine whether fixed or variable is best suited for you.
What is a high ratio or insured mortgage?
When you purchase a home in Canada with less than a 20% down payment, it is considered a high ratio or insured mortgage. Canada Mortgage and Housing Corporation (CMHC), Genworth Financial and Canada Guarantee are default insurance companies that protect the banks in the event a borrower defaults on their mortgage. If a borrower stops making their mortgage payment, the insurer will handle the legal proceedings and compensate the bank if there is a loss after the property has been sold. Default insurers charge a one-time insurance premium, included on top of your mortgage amount.
Do you have a question for our team? Contact us and we would be happy to help answer any questions.