Frequently Asked Questions
My services add a personal touch to the largest financial transaction you will make. Rather than shopping at multiple financial institutions and negotiating with each on and arm wrestling with them to give you the best deal, it takes one phone call and I do the rest for you. Simply put, it is the most efficient way to get the best-priced and best-structured mortgage.
I don't work for one bank. I am independent and represent several different lenders. This allows me to offer you more choices and competitive rates. It also means my advice is impartial and based on whatever is in your best interest. I will provide a broad range of mortgage options with great rates and will work hard to provide you with the ultimate in convenience when arranging your financing. My job is to listen to your needs and goals then find you a mortgage that helps you achieve everything, simply and affordable.
How much does it cost?
In a majority of cases, my services to you are FREE! I'm paid a one-time finders' fee directly from the lender that is based on the amount you borrow and term - not the interest rate. I never charge anything upfront and I only get paid once the mortgage goes through.
If your situation is "outside the box" of traditional mortgage lenders (credit repair mortgages, private financing, no income verification type mortgages, etc.) then there may be a fee from the lender or broker. However, any fee that is charged is always disclosed in writing and you are never required to pay these fees prior to obtaining your mortgage.
Should I choose a FIXED or VARIABLE rate?
Research shows that, in the past, a variable-rate mortgage has been cheaper than a fixed-rate one. However, times are different. The answer to this popular question is client specific and depends on a variety of considerations (eg: Your financials, spreads between the fixed and variable rate, penalties for breaking your mortgage, alternatives and risk tolerance). I will personally assist you in finding the answer to this question, ensuring the decision you make is the right one.
What is a Pre-Approval?
A pre-approval is an estimate of how large a mortgage you can afford based on your financial situation over the past two years. This is important so you know how much of a home you can afford. However, buyers should be aware that pre-approval for a mortgage is not a commitment from a lender and does not safely eliminate the need for a financing condition in an offer. Once you are approved for a loan, that is a commitment.
Here is what you will need for a pre-approval: Last month's pay stub or other proof of employment; tax returns from the previous two years (if you're self-employed) and a credit report (which I will do).
Using this information, I will be able to tell you how much of a home you can afford.
Home Inspection vs. Home Appraisal
Many clients ask if a home inspection and appraisal are both required to obtain a mortgage. Although both are important in determining your home's condition and value, the home appraisal is intended for the lender's satisfaction to decide on mortgage financing. A home inspection is used to determine the home's physical condition and better assist buyers in making a decision. A home appraisal establishes the market value of a property and will provide information such as the overall condition of the property, the neighbourhood, and variables that contribute to the sale of the property.
If I make an offer on a house and the deal falls through, will I get my deposit back?
If a deal falls through because conditions haven't been met (ie: sale of your current home, poor home inspection, financing, etc) a mutual release is brought to the table. If both parties sign the release, you would typically get your deposit back and the seller is free to put their house back on the market. However, if the deal falls through for other reasons, then you and the seller, through your representatives, will need to negotiate the disposition of the deposit. If an agreement is reached, a mutual release will be prepared reflecting the agreement. If an agreement can’t be reached, it becomes a matter for the courts. In such a case, speak with your real estate professional and a lawyer about your options. It’s important to note that a brokerage can only disburse the deposit in accordance with the terms of a mutual release or on the direction from the court. (see reco.on.ca)
What is Payment Shock?
Simply stated, payment shock is used to describe the impact of increased monthly housing payments on homeowners. Increased payments occur for a number of reasons, including purchase of a new home, refinanced mortgages, and increases to variable rate mortgages.
What areas do you service?
I service residential and commercial mortgage for properties in Toronto, Greater Toronto Area, Markham, Richmond Hill, Aurora, Thornhill, North York and Newmarket areas.