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Mortgage Information
Whether you're planning the purchase of your first or fourteenth home, it pays to obtain a pre-approved mortgage from the lender of your choice. Here's why.
Pre-approval protects you
A pre-approval locks a rate for a set window, confirms your price range and signals to sellers that your offer is real. It costs nothing and takes little time.
Down payment and insurance
With less than 20% down, your mortgage must be insured — the premium is added to your loan. At 20% or more you avoid the premium and open up more amortization options.
Fixed versus variable
A fixed rate buys certainty for the term; a variable rate can cost less over time but moves with the prime rate. The right answer depends on how long you plan to hold the property and how much payment fluctuation you can live with.
Programs worth asking about
First-time buyers should ask their lender about the Home Buyers' Plan for RRSP withdrawals and any current federal or provincial incentives before finalizing financing.
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