Download Document Check List:

• Standard Requirements 

• Business Requirements 
  

How much do I charge?

This is a very common question I get ask during my initial meeting with each client. Typically I am compensated directly through the lender of your choice. Everything paid to me will be disclosed to you. This has no additional cost to you however, legally in British Columbia all mortgage brokers must disclose monies paid by completing a Form 10. Lastly, needing to explore a private lending route? Because private lenders do not pay me any commission for my services. I will charge a service fee depending on the nature and difficulties of your mortgage application.

Mortgage Specialist Vs. Bankers

Being an employee at the bank you are required to follow the bank’s guidelines. Bank representatives do not have the same educational background as an independent Mortgage Specialist. Bankers are limited to only selling their own products and services. They do not have access to alternative rates and lending options. Lastly they only operate on a 9-5 schedule.

As a Mortgage Specialist we are completely self employed meaning our schedules are more flexible. Our goal is to help you achieve your financial freedom while sustaining a long term relationship. We have access to multiple “A” lenders and optional private lending. Lastly we are regulated directly by the provincial government. That means mandatory registrations for on going educational classes and scheduled exams.

What is a Pre-Approved Mortgage?

A pre-approved mortgage provides an interest rate guarantee from a lender for a specified period of time and for a set amount of money. The pre-approval is calculated based on information provided by you and is generally subject to certain conditions being met before the mortgage is finalized. Most successful real estate professionals will want to ensure you have a pre-approved mortgage in place before they take you out looking for a home. This is to ensure that they are showing you property within your affordable price range. In summary, a pre-approved mortgage is one of the first steps a home buyer should take before beginning the buying process.

How to pay off Mortgage sooner?

• Choose bi-weekly accelerated or weekly frequency

• Double up one payment a year

• Making additional lump-sum payments

• Select shorter amortization at renewal

What is Fix-rate Mortgage?

The interest rate on a fixed-rate mortgage is locked in for a pre-determined term. This offers the security of knowing what you will be paying for the term selected.

What is Variable-rate Mortgage?

Your mortgage payments will fluctuate depending on prime. If the interest rates were to rise the payment stays the same however, more of the payment goes to interest resulting in an increased amortization.

What is Conventional Mortgage?

Putting more than 20% down payment of purchase price, which doesn’t usually require one to purchase mortgage loan insurance.

What is Mortgage Loan Insurance?

Usually required and purchased through Canada Mortgage and Housing Corporation (CMHC), Sagen (formerly known as Genworth Financial) and Canada Guaranty. This insurance is required by law to insure lenders against default on mortgages with High Ratio. Mortgage loan insurance is a premium paid by the borrower and may be added onto mortgage amount.

How much is closing cost?

Generally speaking you want to budget 2% for closing cost in addition to your down payment. Quick summary of closing cost click here.

How much is Property Transfer Tax?

In British Columbia it is 1% on the first 200k and 2% on the remaining up until 2million. Anything greater than 2million is 3%.

• 1% of the fair market value up to and including $200,000

• 2% of the fair market value greater than $200,000 and up to and including $2,000,000

• 3% of the fair market value greater than $2,000,000

Example purchase price is $3 Million Dollars:
2,000(1% x 200k) + 36,000(2% x 1.8m) + 30,000(3% x 1m) = $68,000.00

Who must pay Property Transfer Tax?

Transaction types include:

• Agreement for sale

• Life estate

• Foreclosure

• Lease

• Fee simple

• Court order

• Quit claim

• Lease modification

• Amalgamation

• Prepaid lease

• Escheat

• Forfeiture

What is Form B?

Generally referred to as “Information Certificate.” Detailed information about a strata lot and the strata corporation. Typically, is prepared during a purchase of any strata unit. An authorized buyer or owner will request this document and usually prepared within 7 days from the strata corporation.

What is a Covenantor or Guarantor on a mortgage?

Covenantor - is on property title and is also on the mortgage application.
Guarantor - is NOT on property title, but is on the mortgage application.