1.       I have received my pre-approval, what are my next steps? 

As soon you receive your pre-approval confirmation letter and pre-approval numbers for us, you are ready to start searching for a property in your budget!

o   Find a realtor if you don't have one yet. We can recommend trusted realtors to work with if needed.

o   Start searching for properties within your budget.

o   After you have viewed the property and want to place an offer, send us the realtor MLS and we will perform full due diligence on the property and calculate your maximum purchase price using the exact property taxes and condo fees (if applicable). We will also advise you of any potential red flags regarding the property. Check out our property red flags list here. This is also the point where we'll let you know if there are any lower rate options available than the one we've already held for you.

o   If you decide to make an offer and it's accepted, send us the signed agreement of purchase & sale and the MLS listing. At this point, your deal is considered "active," and you are no longer in the pre-approval stage.

2.       How does the mortgage rate affect my maximum purchase price?

Mortgage borrowers must pass a stress test to determine if they can afford their payments if interest rates rise, which includes qualifying at the contract rate plus 2% or the benchmark rate of 5.25%, whichever is higher.

3.       What is the difference in qualification with credit unions vs. other financial institutes?

Credit unions, being provincially regulated, are exempted from the federal mortgage stress test, which could potentially enable borrowers to qualify for a higher purchase price. Although, this only applies to uninsured mortgages.

4.       What is the difference between a rate hold and a pre-approval?

"Rate hold" is a term used by lenders when they hold an interest rate for your mortgage for 120 days to safeguard you in case rates rise. During this period, lenders do not review any specific properties or documents until they have a Purchase & Sale Agreement.

Our pre-approval process involves a comprehensive assessment of your financial situation, which includes credit checks, document review, and risk mitigation strategies. A pre-approval is valid for a more extended period than a rate hold. However, if there are changes to your financial situation, (read potential changes that impact your mortgage here), we recommend contacting us, and we can revisit your pre-approval to ensure you are ready for your purchase.

5.       My pre-approval letter states a rate hold with a specific bank. Am I tied to this bank when my file becomes active?

No, you are not obligated to use that bank when your file becomes active. After you purchase, we will present you with various mortgage options and collaborate with you to identify the best product and lender to suit your unique circumstances.

6.       What costs are included in “closing costs?”

There are a number of factors that go into calculating closing costs. Primarily closing costs include Land Transfer Tax, lawyer fees & disbursements.   

7.       Do I need to close on the purchase, or is having a purchase and sale agreement by the rate hold expiry date sufficient to secure the rate?

You must close on or before your expiration date to obtain the rate hold.

8.       Am I responsible for paying the mortgage insurance upfront?

Your mortgage insurance premium will be added into your total mortgage amount and deducted on closing day. You are not responsible for paying it up front.

9.        My realtor is asking that I place a deposit down with my offer. Is that in addition to my down payment?

It will be deducted from your total down payment upon closing.