Home Mortgage Rates

Next Bank of Canada Meeting
June 5th, 2012

 

Special conditions apply

Mortgage Rates subject to change.

Special conditions apply
Mortgage Rates subject to change.

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Refinancing

Refinancing process
Mortgage transfer process
Documents required (employee)
Documents required (self employed)
Reminder of costs
Things to discuss with your broker
Reminders

Refinancing process (when you increase the size of the mortgage)

  • Figure out if this is a refinance or mortgage transfer
    • A refinance is defined as increasing the size of the mortgage
    • A mortgage transfer is moving the mortgage to another lender without altering the size of the current mortgage
  • Contact your broker
    • Complete online application
    • Discussion what options best suit your needs
    • Get pre-approved and obtain a rate hold (if selecting a fixed rate)
  • Review existing liabilities
    • Strongly consider adding any existing liabilities to the mortgage if your interest rate is higher on the liabilities
  • Provide documentation
  • Instruction process
    • The solicitor or lender will contact you to arrange a time to sign final docs
    • We will provide a trusted solicitor contact if required

 

Mortgage transfer process (when you move the mortgage to another lender without altering the size of the current mortgage)

  • Figure out if this is a refinance or mortgage transfer
    • A refinance is defined as increasing the size of the mortgage
    • A mortgage transfer is moving the mortgage to another lender without altering the size of the current mortgage
  • Contact your broker
    • Complete online application
    • Discussion what options best suit your needs
    • Get pre-approved and obtain a rate hold (if selecting a fixed rate)
  • Are you breaking an existing contract (term)?
    • Refinancing early is simply a numbers game, sometimes it works and sometimes it doesn’t. To figure this out, we need to know the following:
      • Original mortgage amount?
      • Current lender?
      • Remaining term/ amortization?
      • Current value of your property?
      • What your penalty is from the current lender to pay out early?
  • Review existing liabilities
    • Strongly consider adding any existing liabilities to the mortgage if your interest rate is higher on the liabilities
  • Provide documentation
  • Instruction process
    • The solicitor or lender will contact you to arrange a time to sign final docs
    • We will provide a trusted solicitor contact if required

 

Documents required (employee)

It is very important to send in your document prior to writing an offer. We will spend time reviewing everything to make sure the information provided is accurate. If something needs correction, it’s better to find that now instead of during subject removal.

  • Job letter from employer confirming start date, position and minimum annual salary (must be on company letter head with address and phone number) *click here for an example
  • Two recent pay stubs
  • Current mortgage statement(s)
  • DCR (debit credit ratio) sheet
  • Recent NOA’s (notice of assessment)
    • This isn’t usually required but takes 2-3 weeks to obtain if you can’t find it and the lender asks for it
    • You don’t need to send them in but please have NOA’s available
  • Proof of cash for closing costs (usually 1.5% of mortgage)
  • Current property assessment(s)
  • Proof of down payment (3 month history required)
    • Bank statements
      • Must have name and account number
    • RRSP statements
    • Gift letter *click here for an example
      • This must be signed by the  donor (family members only)
      • Confirmation of that money must be transferred from their account into yours
    • Investment/ stock statements

 

Documents required (self employed)

It is very important to send in your document prior to writing an offer. We will spend time reviewing everything to make sure the information provided is accurate. If something needs correction, it’s better to find that now instead of during subject removal.

  • 2 year NOA’s (Notice of assessment)
    • Taxes must be paid
    • We may use this to show income
  • 2 years T1 General’s
    • Or business license (if applicable)
    • Or Articles of incorporation (if applicable)
  • Current mortgage statement(s)
  • DCR (debit credit ratio) sheet
  • Proof of cash for closing costs (usually 1.5% of mortgage)
  • Current property assessment(s)
  • Proof of down payment (3 month history required)
    • Bank statements
      • Must have name and account number
    • RRSP statements
    • Investment/ stock statements

 

Reminder of costs

The following are estimates of potential closing costs.

  • Lawyer or Notary: $400 – $1,200 (only when refinancing)
    • Ask us about our no fee refinance
    • There is no lawyer or Notary cost when transferring a mortgage
  • Appraisal (We can usually get the bank to cover this): $250 – $350

 

Things to discuss with your broker

  • What type of rate should I take: fixed or variable?
  • Should I be considering a re-advancable mortgage at this stage?
  • How can I pay off my mortgage faster?
  • How can I write off the interest on my principle residence?
  • What is the best payment for me? (monthly, semi-monthly, bi-weekly, weekly)
  • What is the Smith Manoeuvre?
  • Does the lender collect property taxes for me?
  • What is TDMP
  • What is a Frozen VRM payment?
  • What is the new qualifying rate and how does this affect me?
  • How can I subscribe to Jessi’s video blogs?

 

Reminders

  • We can only new refinance a for a maximum of 90% Loan to value (LTV)
  • If you are including commissions, overtime and bonuses in your annual income your will need to also show last 2 years Notice of Assessments to confirm income.
  • Just because you are refinancing, doesn’t mean you can’t lock in a rate. We can hold a rate for you up to 120 days which gives you time to get things together.

 

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