Office: 289-505-0631  Toll-Free: 1-866-613-3810

Office: 289-505-0631  Toll-Free: 1-866-613-3810

Frequently Asked Mortgage-Related Questions

How can I find a good deal on a Mortgage?

When a lender offers you a mortgage, you have to repay both the original loan amount and interest through monthly payments. The interest is the biggest cost that you have to incur on a mortgage. A good deal on a mortgage is one that offers you a lower interest rate and easy repayment terms.

You can compare the rates and other terms offered by different lenders to get an idea of what the loan will cost you. In doing so, you will find that most lenders offer pretty much the same basic terms. This is because they are all regulated to a certain extent by the government. However, there could be significant differences in several other charges like closing cost, prepayment fee, appraisal cost, legal fee etc.

How much can I afford to pay for a home?

To determine ‘affordability’ you will first need to know your taxable income along with the amount of any debt outstanding and the monthly payments. Assuming it is your principal residence you are purchasing, calculate 32% of your income for use toward a mortgage payment, property taxes and heating costs. If applicable, half of the estimated monthly condominium maintenance fees will also be included in this calculation. Second, calculate 40% of your taxable income and deduct all of your monthly debt payments, including car loans, credit cards, lines of credit payments. The lesser of the first or second calculation will be used to help determine how much of your income may be used towards housing related payments, including your mortgage payment. These calculations are based on lenders’ usual guidelines. In addition to considering what the ratios say you can afford, make sure you calculate how much you think you can afford. If the payment amount you are comfortable with is less than 32% of your income you may want to settle for the lower amount rather than stretch yourself financially. Make sure you don’t leave yourself house poor. Structure your payments so that you can still afford simple luxuries.

What is a home inspection and should I have one done?

A home inspection is a visual examination of the property to determine the overall condition of the home. In the process, the inspector should be checking all major components (roofs, ceilings, walls, floors, foundations, crawl spaces, attics, retaining walls, etc.) and systems (electrical, heating, plumbing, drainage, exterior weather proofing, etc.). The results of the inspection should be provided to the purchaser in written form, in detail, generally within 24 hours of the inspection. A pre-purchase home inspection can add peace of mind and make a difficult decision much easier. It may indicate that the home needs major structural repairs which can be factored into your buying decision. A home inspection helps remove a number of unknowns and increases the likelihood of a successful purchase.

Adjustable rate vs. Fixed rate - which one should I choose?

A fixed rate means your mortgage will always have a pre-determined interest rate irrespective of the changes in the economic conditions. On the other hand, an adjustable rate can be changed by the lender whenever he feels that the economic conditions have changed.

If you are looking for stable monthly payments and do not want to be dealing with the uncertainty, it is advisable to go for a fixed rate mortgage. But if you have sufficient financial cushion to absorb any increase in your monthly payments, and if you feel that interest rates are likely to go lower in the near future, then an adjustable rate mortgage might be a better option for you.

Although these FAQ would have given you some idea about taking a mortgage, you should try to understand all these concepts in detail to make a sound decision. Take help of a mortgage broker or your financial adviser before you finalize a deal.

What is the minimum downpayment needed for a home?

A minimum down payment of 5% is required to purchase a home, subject to certain maximum price restrictions. In addition to the down payment, you must also be able to show that you can cover the applicable closing costs (i.e. legal fees and disbursements, appraisal fees and a survey certificate, where applicable). Regardless of the amount of your down payment, at least 5% of it must be from your own cash resources or a gift from a family member. It cannot be borrowed. Lenders will generally accept a gift from a family member as an acceptable down payment provided a letter stating it is a true gift, not a loan, is signed by the donor. Where the mortgage loan insurance is provided by Canada Mortgage and Housing Corporation (CMHC), the gift money must be in the your possession before the application is sent in to CMHC for approval. Mortgages with less than 20% down must have mortgage loan insurance provided by either CMHC or GE.

What is the impact of unemployed status to mortgage?

This FAQ is the concern of many borrowers. It is often questioned if the mortgagor will qualify a person for a loan modification when he/she or the spouse is unemployed. The lender will have to conduct a financial review of the total income and expenses of the household of the mortgagee to figure out whether the current household income is enough to make the modified mortgage payments or not. Once the mortgagor has satisfied himself with this condition, he can consult with a legal counsel to determine whether the mortgagee qualifies for the loan modification or not.

What is mortgage loan insurance?

Mortgage loan insurance is insurance provided by Canada Mortgage and Housing Corporation (CMHC), a crown corporation, and GE Capital Mortgage Insurance Company, an approved private corporation. This insurance is required by law to insure lenders against default on mortgages with a loan to value ratio greater than 80%. The insurance premiums, ranging from .50% to 3.75%, are paid by the borrower and can be added directly onto the mortgage amount. This is not the same as mortgage life insurance.

What is pre-approved mortgage?

A pre-approved mortgage provides an interest rate guarantee from a lender for a specified period of time (usually up to 120 days) 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. Conditions would usually be things like ‘written employment and income confirmation’ and ‘down payment from your own resources’, for example. 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 can you acquire a home for as little as 5% down?

Most lenders now offer insured mortgages for both new and resale homes with lower down payment requirements than conventional mortgages – as low as 5%. Low down payment mortgages must be insured to cover potential default of payment, and their carrying costs are therefore higher than a conventional mortgage because they include the insurance premium. With all low down payment insured mortgages, you are responsible for: :appraisal and legal fees :an application fee for the insurance :the payment of the mortgage default insurance premium (although the amount of the premium may be added to the mortgage amount).

How can you use your RRSP to help buy your first home?

Today, about 50% of first-time home buyers use their RRSP savings to help finance a down payment. If you are a first-time home buyer, the Home Buyers Plan (HBP) allows you to withdraw money from your Registered Retirement Savings Plan (RRSP) tax-free to make your down payment. The HBP is administered by the Canada Revenue Agency (CRA). There are certain conditions you must meet to be eligible for the HBP. For more information, contact CRA at www.cra.gc.ca. How much can you withdraw? – You can withdraw up to $25,000 from your RRSP – If you buy the home together with your spouse, partner, or someone else, each of you can withdraw up to $25,000, for a total of up to $50,000. – The withdrawal from your RRSP does not need to be included in your income on your annual income tax return, and no tax is taken off the money you withdraw. What is the payback period? – You don’t have to start paying back the money to your RRSP until two years after the purchase of the home. – You must pay back all withdrawals from your RRSP within 15 years by making RRSP deposits each year, starting the second year following your withdrawal. CRA will determine what your minimum yearly repayment will be and will notify you once you need to start repaying the amount. – If you do not repay the amount due in a given year, it is included in your taxable income for that year and you’ll have to pay income tax on this amount. source: Financial Consumer Agency of Canada.

What are the costs associated with buying a home?

First and foremost, you have to make sure you have enough money for a down payment – the portion of the purchase price that you furnish yourself. To qualify for a conventional mortgage you will need a down payment of 20% or more. However, you can qualify for a low down payment insured mortgage with a down payment as low as 5%. Secondly, you will require money for closing costs (up to 2.5% of the basic purchase price). If you want to have the home inspected by a professional building inspector – which we highly recommend – you will need to pay an inspection fee. The inspection may bring to light areas where repairs or maintenance are required and will assure you that the house is structurally sound. Usually the inspector will provide you with a written report. If they don’t, then ask for one. You will be responsible for paying the fees and disbursements for the lawyer or notary acting for you in the purchase of your home. We suggest you shop around before making your decision on who you are going to use, because fees for these services may vary significantly. There are closing and adjustment costs, interest adjustment costs between buyer and seller and (depending on where you live) land transfer tax – a one-time tax based on a percentage of the purchase price of the property and/or mortgage amount. Finally, you will be required to have property insurance in place by the closing date. And you will be responsible for the cost of moving. Remember, there will be all kinds of things you’ll have to purchase early on – appliances, garden tools, cleaning materials etc. So factor these expenses into your initial costs.

What should be the length of my mortgage term be?

The length of mortgage terms varies widely – from six months right up to 10 years. As a rule of thumb, the shorter the term, the lower the interest rate the longer the term, the higher the rate. While four or five year mortgages are what most home buyers typically choose, you may consider a short-term mortgage if you have a higher tolerance for risk, if you have time to watch rates or are not prepared to make a long-term commitment right now. Before selecting your mortgage term, we suggest you answer the following questions: 1. Do you plan to sell your house in the short-term without buying another? If so, a short mortgage term may be the best option. 2. Do you believe that interest rates have bottomed out and are not likely to drop more? If that’s the case, a long mortgage term may be the right choice for you. Similarly, if you think rates are currently high, you may want to opt for a short to medium length mortgage term hoping that rates drop by the time your term expires. 3. Are you looking for security as a first-time home buyer? Then you may prefer a longer mortgage term, so that you can budget for and manage your monthly expenses. 4. Are you willing to follow interest rates closely and risk their being increased mortgage payments following a renewal? If that’s the case, a short mortgage term may best suit your needs.

What are the monthly costs of owning a home?

Needless to say, you’ll have financial responsibilities as a home owner. Some of them, like taxes, may not be billed monthly, so do the calculations to break them down into monthly costs. Below you will find a list of these expenses. The Mortgage Payment For most home buyers, this is the largest monthly expense. The actual amount of the mortgage payment can vary widely since it is based on a number of variables, such as mortgage term or amortization. Property Taxes Property tax can be paid in two ways – remitted directly to the municipality by you, in which case you may be required to periodically show proof of payment to your financial institution; or paid as part of your monthly mortgage payment. School Taxes In some municipalities, these taxes are integrated into the property taxes. In others, they are collected separately and are payable in a single lump sum, usually due at the end of the current school year. Utilities As a home owner, you’ll be responsible for all utility bills including heating, gas, electricity, water, telephone and cable. Maintenance and Upkeep You will also have to cover the cost of painting, roof repairs, electrical and plumbing, walks and driveway, lawn care and snow removal. A well-maintained property helps to preserve your home’s market value, enhances the neighbourhood and, depending on the kind of renovations you make could add to the worth of your property.

What is a fixed rate mortgage?

The interest rate on a fixed-rate mortgage is set for a pre-determined term – usually between 6 months to 25 years. This offers the security of knowing what you will be paying for the term selected.

What is variable rate mortgage?

A mortgage in which payments are fixed for a period of one to two years although interest rates may fluctuate from month to month depending on market conditions. If interest rates go down, more of the payment goes towards reducing the principal; if rates go up, a larger portion of the monthly payment goes towards covering the interest. Open variable rate mortgages allow prepayment of any amount (with certain minimums) on any payment date.

Words From Our Customers

Raj
Raj
16:22 28 Nov 22
Rajiv is very professional and passionate broker. He recently helped me in last minute deal with excellent terms , he got personally involved and personally monitored the progress till closing and even after the closing to ensure nothing is left behind. I always depend on him for mine and my family mortgage needs
Jashan pahwa
Jashan pahwa
15:12 02 Nov 22
Lakhvir is a phenomenal mortgage broker. She is focused on going above and beyond for her clients. Through her outstanding problem-solving skills, She finds solutions for every situation. She is positive, professional and goal oriented. Always looking out for the best outcomes of her clients. Do not hesitate to contact Lakhvir. You will not be disappointed. Thank you Lakhvir for your fantastic customer service. She really made mortgage process Simplify for us.
Bhuvana Ramesh
Bhuvana Ramesh
15:25 08 Aug 22
Mr.Verma is a very reliable and trustworthy gentleman. We have been fortunate to get his service both the times we.purchased houses. He gave us confidence that things will go smooth and they did go smooth. Thanks for your help and support Mr.Verma
Mee and me
Mee and me
16:04 18 Jul 22
Very helpful . To go person for all your mortgage needs from start to finish. Will highly recommend.
Muneeb J (-TubeNews-)
Muneeb J (-TubeNews-)
15:35 02 Jun 22
One of the most professional services I have ever received, Simplify Mortgage Team guided us through our mortgage possibilities and helped us stay in the loop every step of the way. Truly a company you can put your full trust and reliability on. Will definitely recommend to all friends and family. Thank you once again.
Sarita Swain
Sarita Swain
03:08 01 Jun 22
Rajiv Verma and team from simplify mortgage solutions have been incredible to deal with. They were very professional and quick to respond. We definitely recommend to our family and friends for mortgage.
Abhilash Mohapatra
Abhilash Mohapatra
03:02 01 Jun 22
Rajiv have been incredible to deal with.We found him to be very informative and to give excellent guidance when it came to our mortgage.They were professional, quick to respond to all our questions and were able to get us a great rate at the shortest time with one of the leading financial organization.
Neville Miles
Neville Miles
01:21 20 May 22
Thanks Rajiv for your excellent service. Once again you have proven yourself to be trustworthy and always provide a professional service, thank you.
harbinder kailey
harbinder kailey
19:56 28 Apr 22
Working with RAJIV VERMA experienced five star service ,reliable and trustworthy always recommend for all your mortgage needs
manga singh
manga singh
19:44 27 Apr 22
Working with Rajiv Verma was a great experience. He is very knowledgeable about the mortgage process and provided me with a lot of information that I didn’t know. He is super reliable as he was very quick to respond to my urgent request. Overall, I highly recommend working with him.
Jalpa Patel
Jalpa Patel
22:43 21 Apr 22
Rajeev was all the things you want for house mortgage – really knew his stuff, helpful, responsive, but beyond that he also suggested better options for house mortgage that I was not aware off. Rajeev was very helpful and responsive, and very very professional in his work. He made the whole home mortgage process easy and we were kept informed the whole way. Thanks Rajeev!
Avinash Patel
Avinash Patel
22:20 21 Apr 22
I had problem doing my house mortgage, and then I came across Rajeev. He's so good with his work that he has explained every step of process, and I didn't need to worry about anything about my mortgage. He also got my mortgage done before closing very smoothly.
jitesh kumar
jitesh kumar
23:39 31 Mar 22
I had an excellent experience with Mr. rajeev verma, he solved my all queries very calmly, i would 100% recommend simplify mortgage solutions to my friends and family.
Aarthi Pradeep
Aarthi Pradeep
15:43 23 Mar 22
We recently closed our Mortgage with Simplify Morgage and Rajiv was a extremely professional and a delight to deal with. He had the nuance of navigating all the intricacies that's typical to processing a Mortgage and has abundance of knowledge in guiding us through the entire process. Rajiv took personal care to ensure that our Mortgage processing is meticulously prepared and processed from the get go and delivered what was promised 100%. I would strongly recommend Rajiv to be your go-to point of any of your Mortgage needs! Thank you Rajiv!
Pradeep Narayanan
Pradeep Narayanan
14:25 04 Mar 22
I have had the pleasure of having my mortgage solution managed by Rajiv, who has been extremely diligent and professional throughout the process. Rajiv went extra the mile to ensure all the parameters are checking out correctly and had valuable suggestions and guidance to help complete the process in a timely manner, with the accuracy that was required in such a process. What's critical to note is that Rajiv stood by his commitment to ensure the process is favorably completed and never left a stone unturned to ensure the approval is delivered as promised. Overall he was a great resource to work with when you are looking to have positive outcome to your mortgage applications, Rajiv is the resource you seek.
Vikas Manocha
Vikas Manocha
19:30 23 Feb 22
It is a pleasure to work with Rajiv ji. Every step of the way, I received the impression that they were looking out for our best interests. We purchased two Houses,so there were a lot of questions and intricacies regarding the process that we weren't aware of. Rajiv not only informed us of the specifics, but also took the time to ensure that we understood them. Rajiv was really patient with us and was able to handle all of our worries and questions concerning the transactions. Rajiv ji you are the best, stay the way you are.
S.D. Houvardas
S.D. Houvardas
12:12 18 Feb 22
We contacted Rajiv to look at options for a mortgages. He proposed a number of excellent options, with very competitive rates. Rajiv was so flexible to work with and he communicated regularly with us. I would highly recommend Rajiv if you are looking for a mortgage.
Priya Mehta
Priya Mehta
18:40 14 Feb 22
Working with Rajiv Verma for the mortgage process was amazing. He was readily available to answer all the queries we had as first time home buyers. Thank you for making the experience a good memory. Highly recommended for all mortgage advice seekers.
tamana sid
tamana sid
18:19 17 Jan 22
This was my first time working with Rajiv Verma from Simplify Mortgage Solutions. He was great and very helpful and quick at responding to our questions. Rajiv is very knowledgeable and answered all my questions and took the time to explain things we did't understand and provided us with solutions for any concerns we had. The thing we loved the most; was how detailed he was and provided us with solutions for any concerns we had. My family is a repeat client with Rajiv for all the mortgage needs.Just wanted to say BIG THANK YOU to Rajiv Verma for all the hard work through this process. You won't be disappointed when choosing them as your mortgage broker.
Khawaja haris Siddiqi
Khawaja haris Siddiqi
02:02 17 Jan 22
Working with Rajiv Verma from Simplify Mortgage Solutions was an absolute pleasure. Every step of the way I felt they had our best interests in mind. My family was doing refinance, so there were a lot of questions and details we weren't aware of/didn't know about the process. Rajiv not only made those details known to us, but took the time to make sure we understood them. Rajiv was incredibly patient with us and was able to address the several questions and concerns that we had about this transaction. I would highly recommend Rajiv Verma from Simplify Mortgage Solutions. The professionalism, trust, reliability and dedication turned what we thought would be a daunting process, into a seamless and pleasant one.
Bikram Brar
Bikram Brar
13:45 13 Jan 22
Rajiv is a great mortgage agent to work with. Would highly recommend giving him a call for all your mortgage and pre-approval needs. Rajiv offers advice, has competitive rates and is easy to work with. I’ll continue to visit Rajiv for all my future needs.
Ramiz Siddiqi
Ramiz Siddiqi
00:10 12 Jan 22
I had a great experience with Rajiv Varma. He is a highly competent, and caring professional. He is on top of the mortgage process making sure things move forward in a timely manner.Rajiv goes above and beyond with his customer service as well as his follow-up. What I appreciate most about Rajiv was his prompt response to my communications. He picked up or returned my call within a half-hour even on the weekend.I was the first home buyer, so I had a lot of questions. Rajiv really helped me through, and he also gave me the best deal. I would recommend Rajiv to everyone.Thank you Rajiv so much! I never thought it would have been possible but with your help, everything was so easy and painless.
Satyen Sharma
Satyen Sharma
23:50 11 Jan 22
I am glad, I was introduced to Simplify Mortgage Solutions by my friend. Rajiv’s expertise and knowledge made whole mortgage process very simple and convenient. I will recommend Simplify Mortgage Solutions to all my friends and relatives. Thanks Rajiv, for all your help.
Indu Sharma
Indu Sharma
17:15 11 Jan 22
Rajiv Verma of Simplify Mortgage Solutions provided us with all the information and discussed in detail all the mortgage options available to us. We had a positive experience while going through the whole process. I personally appreciate the fast , convenient professional service that we received from Rajiv. Thanks and I would recommend him to all our friends and known
Dhandabani Ramakrishnan
Dhandabani Ramakrishnan
03:34 09 Dec 21
Rajiv Verma of Simplify Mortgage Solutions is a pleasant and humble personality to deal with and keeps his cool in the dismal situations. He is very knowledgeable and proactive and I convincingly recommend him and Simplify mortgage to anyone with the mortgage need.
harmeet dhaliwal
harmeet dhaliwal
17:34 26 Nov 21
If you need professional mortgage service plz contact Rajiv Verma .
Andrew Ragnauth
Andrew Ragnauth
15:43 27 Sep 21
Rajiv was very good in providing us with very professional and positive service. He was patient with us and answered all questions we had. He is reliable and gets the job done. He has helped us 2 times now and both times he provided us with great service and got the job done. Definitely will continue to use him in any future endeavors.
Alper Bryan
Alper Bryan
16:05 23 Sep 21
I have got to know Rajiv through a close friend who recommended Rajiv to me. From the start to the closing, Rajiv made the whole process so smooth that we were so happy to have his service. The most importantly, he is a very understanding and accommodating person. You will be very happy to have his service.
Aalia Alper
Aalia Alper
14:28 23 Sep 21
We had a great experience working with Rajiv who has patiently guided us and answered all our questions from day one to the closing date, also, he accommodated our needs patiently. We really appreciate his professionalism
PARAMVEER WALIA
PARAMVEER WALIA
01:19 13 Sep 21
Simplify Mortgage solution are one of the best Mortgage solutions providers. They have immense knowledge of the products from various financial institutions and they can align your mortgage needs with them. Their expertise and services they provide makes them stand out from other mortgage solution providers. I strongly recommend them for any mortgage solutions.
jay b
jay b
15:08 26 May 21
Thank you for getting the job done and will recommend you to anyone.
Aqeel Jan
Aqeel Jan
18:42 02 Feb 21
I've worked with Rajiv on a mortgage my house. Rajiv took the time to educate me about getting a mortgage. Rajiv was extremely knowledgeable. He was able to match the exact mortgage for my situation and save my money. Rajiv was extremely responsive to any request or question. I was able to close the mortgage on time without any setbacks. I highly recommend using Rajiv Verma as your mortgage adviser & SME.
navraj singh
navraj singh
01:49 10 Dec 20
Very intelligent, honest and trustworthy person Mr Rajiv , I will recommend everyone who is planning to buy new house.. highly recommended.. further more clearly explained everything in Very professional manner..once again thanks Mr Rajiv for your outstanding services.
Armaan Sekhon
Armaan Sekhon
19:36 04 Nov 20
Great service and very professional.I would for sure recommend Rajiv Verma and Chetan Sharma
lazeez sandalwood ching
lazeez sandalwood ching
12:10 17 Oct 20
Excellent service yet once again. Rajiv has been diligent in his work and advice. Simplify mortgage solutions definitely simplify mortgage process and live up to their name. Glad we found them. Keep up the good work.
Abdul Samad
Abdul Samad
02:59 01 Oct 20
Rajiv is one of the best mortgage agent I ever dealt with. I am extremely happy with his services. He always have a good knowledge on market trend. He work for his client and bring best market rates for them.Before, we were little scared after listening terrible stories of different people, which they faced due to their unprofessional agents at the time of closing.Rajiv made our closing process very easy and smooth. I always highly recommend Rajiv to all my friends.
PARWINDER PADDA
PARWINDER PADDA
22:23 26 Sep 20
I would like to thanks Simplify Mortgage Solutions team for providing me the right advice regarding my refinance and renewal for mortgage needs. They gone above and beyond the efforts to find a suitable and best possible solution for my needs. They are very very knowledge able and professional. Thier experience makes a difference when advice matters. I will recommend their services to all my family and friends. Thanks once again.
Amandeep Bhandal
Amandeep Bhandal
22:11 26 Sep 20
I would like to thanks Rajiv Verma from Simplify Mortgage Solutions team for their honest and knowledgeable advice for first time home buyers journey for first home. He is very professional and detail orient mortgage broker. I will recommend him for professional and friendly advice to everyone.
manoj khanna
manoj khanna
19:59 08 Sep 20
I got very competitive Rate of interest and timely done closing. Very straight forward person and preaching you for other issues also.
Shivdeep Walia
Shivdeep Walia
18:46 30 Aug 20
Totally solution oriented service. Thanks for helping out my clients with their mortgage and other financial needs. Appreciate the professional service. Highly recommended.
Karamjit Singh Ghuman
Karamjit Singh Ghuman
23:14 26 Aug 20
Great team & Great work
Yudvir Sandill
Yudvir Sandill
02:04 03 Jul 20
Thank you for your help and support in getting the mortgage approval letter in such a short time. Will definitely recommend your name to family and friends.
Vishal Burathoki
Vishal Burathoki
02:55 16 Jun 20
Recommended for Mortgage and related financial services and advise. Professional, quick and thorough solutions.
Divyang patel
Divyang patel
21:45 20 May 20
Mr. Rajive helped me to refinance my mortgage. He provided very professional and reliable service starting from answering my questions to closing the deal. Thank you Simplify Mortgage Solutions for great service.
Anis Askani
Anis Askani
23:19 04 Mar 20
Great mortgage broker with all the help you need. Answers all your questions and gets you the wright advice. Was a pleasure to work with you Rajive
Harneha Gulati
Harneha Gulati
23:49 07 Jan 20
Very professional services. The best part of our experience was the optimism attached to it. Successful transaction with in detail processing was their top priority! For reliable services, please contact Simplify Mortgage Solutions! They will get you what you want!!!! 💪
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