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Residential Mortgage Information

Shopping for a new home? Don't forget to pick up a great residential mortgage rate first! If you're considering taking the leap into home ownership, don't wait to research possible mortgage ratesand products – start studying up now. Understanding what to expect when applying for a residential mortgage will help simplify the process and alleviate a ton of unnecessary stress.

Residential Mortgage definition

Very few people are able to buy their dream home outright. That's why so many Canadian families have a mortgage.

A residential mortgage provides a home buyer with the funds needed to purchase a home. The mortgage lender loans this money to the potential home buyer and the buyer is required to pay back the money, plus interest, over an agreed upon period of time.

So, how is an inexperienced home buyer supposed to shop for a great mortgage rate? With the help of an experienced residential mortgage broker, of course. Why worry about your mortgage rate when a Family Lending professional can quickly and easily locate a residential mortgage provider that's perfect for you?

What do I need to get a residential mortgage?

Applying for a residential mortgage is easier than you think. First, contact a mortgage broker at Family Lending or fill in our free, no obligation mortgage pre-approval application. Once you've done that it's time to starting thinking about your current financial situation. When it comes to finding a competitive residential mortgage rate, your mortgage broker will need to know:

1) How much of a downpayment do you need?

The minimum required downpayment is 1% for a Cash Back Mortgage but also commands a higher interest rate. If you have less than 20% downpayment on your home you will be subject to a Mortgage Insurance Premium. This helps protect the lender in case you default on your mortgage and a FamilyLending.ca professional will arrange this for you.

2) If you want to go fixed or variable rate mortgage

Many residential mortgages are based on a variable interest rate. Variable interest rates can rise or fall depending on the state of the market, causing monthly mortgage dues to fluctuate dramatically. Alternatively, home buyers can opt for a fixed mortgage rate for a more stable repayment plan. A fixed rate mortgage stays consistent for the term of mortgage.

3) A general overview of your finances

It's your mortgage broker’s job to act as a liaison between the lender and you, the borrower. This means that your broker will need to have a good understanding of your financial history and current financial situation in order to secure you the best rate. Having your annual income statement handy, along with any information on outstanding debts, will help speed your residential mortgage pre-approval along, and help your mortgage broker find a residential lender rate that works for you.

If you require help with your residential mortgage search, don't just ask a bank lender. The banks only have access to a limited number of residential mortgage products. A mortgage broker will be able to provide you with a more comprehensive comparison, and a seemingly endless option of lender offers. Contact Family Lending today for more residential mortgage advice.

Latest Mortgage News

Taking a Closer Look at CMHC's 2011 Annual Report

May 16 2012

The Canada Mortgage and Housing Corporation marked its 65th anniversary last week with the release of their 2011 annual report. As the nation’s top mortgage insurer (the organization backs $567 billion in default mortgage insurance), the CMHC controls roughly three-quarters of the nation’s mortgage default insurance. Despite inching ever closer to the $600 billion dollar government-imposed limit, the CMHC’s reported that there’s still plenty of room to meet the nation’s core demand for mortgage insurance.

High Home Prices and Bidding Wars: What You Need to Know

May 10 2012

The price of a new home in Canada is on the rise, according to data released by Statistics Canada today. Market information from March shows that the price of a new home in Canada rose by 0.3% from the previous month, marking the 12 consecutive monthly increase. While relatively minimal, the jump was slightly greater than the 0.2% advance predicted by market experts.

Does Your Down Payment Stack Up?

May 07 2012

Think that a 5 percent down payment is enough to secure a great mortgage rate? Think again. Pulling together the minimum 5 percent down payment, while a good start, is just that – a start. If you’re a first time home buyer looking to move up the property ladder, don’t skimp on your down payment. If you’re having trouble pulling together the 5 percent minimum, you’re setting yourself up for a hard, long haul.