What is a high ratio mortgage?
A high ratio mortgage is one where the down payment is less than 20% of the purchase price. Since there is more risk involved, these mortgages must be insured through one of the three major insurers: CMHC, Genworth, or Canada Guaranty. High ratio mortgages do require a mortgage loan insurance premium which can be added to the mortgage amount. These premiums depend on the loan to value of the mortgage and can vary depending on your circumstances. Contact your mortgage broker to find out more information.
What is a conventional mortgage?
A conventional mortgage is usually one where the down payment is equal to 20% or more of the purchase price, a loan to value (LTV) of or less than 80%, and does not normally require mortgage loan insurance.
What Is A Home Inspection?
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.). A written, detailed home inspection prior to purchase 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 variables and increases the likelihood of a successful buy.
What Is A Pre-Approval?
A pre-approved mortgage provides an interest rate guarantee from a lender for a specified period of time (usually 60 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.
Is My Application Secure Online?
Bava Mortgage keeps all of you private personal and financial information confidential and secure. This information is not sent to any lenders or third parties until we have your express consent.
What Fees Are Charged By A Mortgage Broker?
The vast majority of mortgage clients do not pay a fee for the services of a mortgage broker. This allows a broker to seek the mortgage rate and product that best suits the needs of the client and, in almost all cases, at no cost to the client.
In situations where traditional lenders will not approve a mortgage because of poor credit, and where the application must be placed with a private or non-traditional lender, a brokerage fee may be charged to the client. This cost must always be disclosed to the client up front and must be authorized in writing by the client before it can be charged.
Financial institutions sell only their own products to the public through their own sales force. Because of this, they are not able to provide unbiased advice or a wide assortment of financing options since by doing so they risk losing your mortgage to a company whose product may provide more value to you. Bava Mortgage on the other hand, can get you a variety of mortgage products and services as we deal with a wide assortment of lenders from all across Canada. Because of this we can be totally objective in our recommendations to you.
Here at Bava Mortgage we also negotiate on your behalf, structuring deals to meet the criteria of the lenders, and therefore getting you a mortgage solution that works for you.
Bava Mortgage simplifies and speeds up your mortgage application process. For example, when you deal directly with a financial institution and your mortgage is declined, for whatever reason, you must begin the application procedure all over again with another lender. When you deal with Bava Mortgage the application can quickly be passed on to another lender, or several other lenders, to be considered. Here at Bava Mortgage we work to turn your financial dreams into a reality.