Can I be pre-approved for a loan before I have found a property?

Absolutely! We not only support the idea, but strongly encourage it. By getting pre-approved now, you will know exactly what you qualify for before you begin shopping. Agents and sellers will know you are a serious buyer because your financing is already arranged. This may be an advantage when making an offer. We take into account your current income, debt and credit history in order to pre-approve you and determine the amount for which you qualify. Once you find a property, and sign a sales contract, we can continue processing your loan.

Why is an appraisal necessary?

Appraisals compare the current market value of your home to other homes in your area that have recently been sold. A current appraisal is necessary for the lender to justify the loan amount you've requested. You should not, however, rely on the valuer for assurance about the condition of your home or as a guarantee of the value of your home.

How is the appraisal obtained?

After you have reserved your funds, we will arrange a date and time for the property appraisal. You will be asked to provide a contact name after you have reserved your funds. The appraiser will call the contact person you list for access to the property. If you are purchasing a home, you can list either your real estate agent or the seller's agent. Once the appraisal is complete, the appraiser will send us the results, and your personal mortgage processor will contact you.

What is a home equity line of credit?

Also known as HELOC, a HELOC is a secure line of credit using the available equity in the applicant's residence as collateral.

How do interest only products work?

A customer pays interest only payments for the first three, five, seven, or ten years of the loan. During the Interest Only period, the loan will be re-amortised at the remaining principal balance each month, allowing the customer to benefit from any principal curtailments made during the interest only timeframe.

How much down payment will I need?

The minimum down payment required depends on the mortgage program you select. Usually at least 5% to 10% is required. If you put down less than 20% on your rate may be subject to mortgage insurance.

If you are concerned about having enough money to purchase a home you may want to consider our options for rolling your closing costs into either your interest rate or your loan amount. You will still need to come up with money for your down payment but this will help reduce the amount of additional money that you will need to bring to close.

When should I start shopping for a mortgage and how do I know what I can afford?

The best time to look for a mortgage is before you look for a house. This way you will know exactly the amount of money you can borrow. You can use the calculators on this site to help you determine these numbers as well as your estimated monthly payments. Get pre-approved for a mortgage before shopping for a home and you will maximise your negotiating power. It's free and will take only a day to get a decision, and there's no obligation until you want to reserve your funds.

Do I need to sell my existing home before I apply for a new mortgage loan?

Absolutely not! You can apply for a new mortgage loan before you sell your current home. However, depending on your income and debt levels, you may need to sell your current home before you can close on your new home.

How often do interest rates change?

Interest rates change regularly with the fluctuation of the market.

How can I customise my rate?

Once you submit, we will recommend a loan program for you. This program will be associated with a specific interest rate and possibly with points. If you would like, you will have the ability to customise this rate. You also may have the opportunity to roll the bank's settlement costs into your loan amount. Once you select the program that best fits your financial objectives you will be presented with different rate options. An interest rate is not locked until you request to lock the rate and submit.

What factors go into determining my personalised rate?

We evaluate your credit history and reward your good credit with a better rate. We also take into account your loan to value, as well as your income, your assets, the purpose of the loan and how you intend to occupy the property. Naturally, all of this is impacted by the current market conditions

Once I have selected a program, what are my rate options?

You will be presented with rate options that are applicable to your loan purpose, closing date and qualification. The possible options are listed below.

Fixed Rates

By fixing in your rate, you have committed to the rate.

Once you fix your rate, the rate and point combination will not change, regardless of what happens with interest rates, as long as you close on or before the offer expires.

Vairable Rates

By opting to vairable, you have not selected or committed to any rate. Therefore, your ultimate rate is subject to both up and down market fluctuations until you decide to fixed rates.

What if interest rates go down after I have fixed my rate?

Once you fix the rate, it cannot be changed. For that reason, it is important to consider carefully the timing of your rate fix. If you follow the market or plan to watch it closely, be sure you're comfortable with the trends you see before you fix.

How long is my Letter of Approval valid?

If the information you provided to us remains the same, the letter of approval will remain valid until you close your loan. If any of the information you provided to us changes, such as your income or debt, we will need to re-evaluate your approval. We will also need your permission to re-evaluate your credit every 30 days to make sure nothing has changed.

What does a mortgage lender consider when making a loan decision?

A mortgage lender generally looks at three areas:
Income and Assets: To determine your ability to repay the loan.

Debts and Credit History: To evaluate your buying habits and your history of repaying other financial obligations.

Property Information: An appraiser compares the home you are buying to similar homes in your area to make sure the property provides sufficient collateral for your loan.

How long will it take to get my loan decision?

In most cases, you will receive a mortgage pre-approval in days, after you complete the six easy steps and submit. However, there are always situations that will need further review before we get back to you with a loan decision.

Can I change the loan amount, down payment or program after I've received my loan decision?

Yes, as long as you meet the criteria for the new loan amount or new program you've selected. Your personal mortgage processor can help you determine if you meet the requirements.

What documents will I need to provide to complete my loan transaction?

We have included a list of some sample documents you may be required to submit. This list is not all inclusive.
A fully executed agreement of sale for the property being purchased
Financial statements for bank and brokerage accounts
Settlement statement on the property you are selling
Copy of your most recent pay stub
Copy of a rental lease
Homeowner's insurance policy

Do have to attend settlement? What are my options?

It is not required that you attend the settlement.

How much homeowner's insurance does a lender require?

Your homeowner's insurance policy must cover the cost to rebuild the home. The insured amount may be higher or lower than the actual purchase price as long as it meets the program requirements. The insurance company you choose can give you an actual quote based on specific information about the property.

What type of inspections do I need before I settle on my home?

Certain inspections may be required under your particular loan program. However, depending on the home and the location, there are a variety of inspections you may want to consider before you close on your new home even if they are not required under your program, such as:
Home Building Inspections
Pest & Termite Inspection
Home Valuation