Frequently Asked Questions

MonsterMortgage.ca has an exclusive partnership with the Corbo Kelos Group at RE/MAX Hallmark, the MonsterMortgage.ca VIP Realtor Program. Here is how this program can help you:

• You will receive a 1% cash rebate of your mortgage amount with no maximum!
• The cash rebate is separate from any mortgage offer that you would receive from MonsterMortgage.ca.
• The Corbo Kelos Group will deliver the money to you after closing.

Learn more or contact one of our agents for more detailed information.

Your credit history and credit scores are very important if you want to minimize your interest rates and borrowing costs. Here are some quick fixes that will improve your credit score:

• Purchase an investment property
• Do not carry balances on credit cards more than 65% of the credit card limit on an ongoing basis. High regular balance to limit ratio deem you a credit seeker and your score suffers because of this.
• Don’t miss your payments.  Late payments are recorded every time you surpass the grace period. Many credit card companies have Pre-Authorized Payment (PAP) directly from your bank account for the minimum payment. Take advantage of these tools if your schedule is too busy.
• Mobility Bills. Mobile companies like Bell are now reporting any disputes or late payments on credit bureaus. Although these mobile contracts are not necessarily credit cards, the repayment of these facilities now impacts credit repayment tools like the credit bureau. It is extremely important to not take a dispute lightly because they can harm your credit and have long-term implications.

When shopping for a home it’s important to determine the maximum mortgage and the home price you can qualify for. To determine your maximum affordability, lenders take several factors into account, including:

• How much cash or liquid assets you have.
• Whether a monetary gift is part of your down payment.
• What your gross family income is.
• If you have any other debts.

In most the cases, our services are free, but in some scenarios where applicants face challenges over and above conventional means (such as poor credit and/or a unique situation that requires extra attention), there may be a fee incurred. We’ll always explain this fee to you in advance and before any fees are incurred. No surprises.

We are compensated with a finder’s fee by financial institutions to bring great clients to their portfolio. This finder’s fee is disclosed to you by your mortgage agent to promote transparency. This allows MonsterMortgage.ca to provide you with unbiased advice and unlimited access to the best mortgage products in the market.

The amount of time it takes from getting approved to being financed will vary from case to case. However, the typical time frame you can expect is 3-4 weeks. Keep in mind that there are many factors that can cause your mortgage approval to be delayed. It is important to keep in touch with your lenders or mortgage agents regularly. Make sure you have any requested documents on time; this will help you have a smoother mortgage process.

Mortgage closing costs, also known as settlement costs, are fees charged for services that must be performed to process and close your loan application. Examples of mortgage closing costs include title fees, recording fees, appraisal fees, credit report fees, pest inspection, attorney’s fees, taxes and surveying fees. The closing cost of a loan will vary depending on your geographic location.

Lenders are required by law to provide you with two documents – the Loan Estimate and the Closing Disclosure – which outline your closing costs and help you avoid surprises at the closing table.

Instead of focusing solely on rates when you are shopping around for your mortgage renewal, the smarter thing to do is to review your mortgage needs and financial goals. After a period of time, when you have finally paid off part of your mortgage while building up your home equity, you should consider refinancing and gain access to the funds you need. It’s the perfect time to refinance in your mortgage renewal process since you are not breaking your mortgage term and thus won’t occur any penalty.

In the past, we required the following to commence a file:

• Signed Application
• Photo ID
• Preliminary form of income validation (paystub if salaried or previous year NOA if self-employed)

Since January 1, 2018, the new government imposed mortgage rules requires us to collect more documents up front:

•      Signed Application
•      Photo ID
•      Salary Letter from Employer
•      Recent paystub (within 30 days of application)
•      Previous years T4
•      Last two years Notice of Assessments from CRA if Self Employed
•      Last two years T1 General filed with CRA if Self Employed
•      Articles of Incorporation or Business License if Self Employed
•      6-12 months Business Bank Statements if Self Employed to validate active business activity
•      2-4 actual invoices to match deposits in bank Statements
•      Property Tax Statement if existing homeowner
•      Current Mortgage Statement if existing homeowner

However, required documents vary from case to case. Please chat with us so we can do the heavy lifting for you.

Your mortgage broker or agent is a licensed professional who will shop your mortgage around to various financial institutions and find the best possible mortgage product, terms and rate available. A mortgage professional doesn’t work for a specific bank, lender or financial institution – their focus is on you.

Home Equity Line of Credit (HELOC) is a type of mortgage that is secured against your home. As you pay off your mortgage and build up equity in your home, a HELOC allows you to gain access to your home equity to use the funds you need. But keep in mind that you cannot exceed 65% of your home’s value. People usually use HELOC to:

• Consolidate high-interest debt (for example: pay off credit cards)
• Renovate their home
• Pay for higher education, expand your current business, etc…

Getting pre-approved for a mortgage can save time and possibly money when you are in your house-hunting process. Lenders will determine the home price you can afford based on your financial conditions through a mortgage pre-approval. Therefore, you can better plan and budget for your home purchase while you are doing research.

When you get pre-approved for a mortgage, you’ll find out:

• The maximum amount you can afford to buy a home
• The monthly mortgage payment associated with your maximum affordability
• Your mortgage rate for your first mortgage term

Applying for a mortgage pre-approval is free and doesn’t commit you to one single lender. However, getting pre-approved does guarantee that the mortgage rate you are offered by a lender will not change for up till 120 days. By “locking in” your rate, you’re protected if interest rates rise while you’re shopping for a home. If interest rates go down during this time, your lender will honour the lower rate.

A second mortgage may also be known as a home equity loan. The mortgage you obtained when you purchased your home is your first mortgage and a subsequent mortgage, or home equity loan, would be a second mortgage.

Second or third mortgages can be used to consolidate outstanding debt from other sources, renovate your home, pay for your child’s education, start or finance a business or for any reason you see fit.

If you’re considering taking out an additional mortgage on your home, we encourage you to speak with our mortgage specialist who will discuss your unique financing needs. After researching and discussing your options, we will provide you with the best financing solution for you.

The minimum amount you’ll need for your down payment depends on the purchase price of the home you’d like to buy.

• If your home purchase price is $500,000 or less, the minimum down payment required is 5% of your purchase prices.
• If your home purchase price is between $500,000 to $999,999, you are required to have 5% of the first $500,000 of the purchase price plus 10% for the portion of the purchase price above $500,000 for your down payment.
• If your home purchase price is over $1 million, you are required to have 20% of the purchase price of the down payment.

If your down payment is less than 20% of the price of your home, you’ll need to purchase mortgage loan insurance.

Requirements are variable In some cases. For instance, if you are self-employed or have a poor credit history, you may require a larger down payment or to have mortgage loan insurance even with over 20% of the purchase price for your down payment.

If you still owe a balance at the end of your mortgage term, you will need to renew your mortgage for another term. People may overlook the importance of starting research for their mortgage renewal early, but it is never a bad idea to have enough time to shop around for your next mortgage. Make sure you mark your current mortgage maturity date on your calendar and count back 120 days – this is usually the time your lender starts to send you special offers on renewals. Don’t rush to say yes to your lender since it may not be the best option you could get.

The cost of borrowing reflects the annualized interest rate and incorporates all costs associated with the mortgage such as an appraisal cost, mortgage insurance costs, applicable taxes and other required fees. That’s why the annual interest rate is usually higher than the interest rate.

When considering moving or renovating existing homes, people sometimes choose the former option. Sometimes it’s financially wiser to do the home renovations instead of moving because buying a new home will lead to several fees including land transfer fees, legal fees, realtor fees, updating new home costs, etc. A few key renovations can increase the value of your property. If you’re a homeowner we can help you get a home renovation loan based on your home’s equity.

There are numerous reasons why borrowers may choose to refinance the mortgage they already have. Some of these include:

• Consolidate high-interest debts into a much better financial plan with:
  • Lower rate
  • Lower monthly payment
  • Shortened mortgage terms
• Renovate your existing property
• Personal investments (i.e: expand your current business; pay for post-secondary education cost; purchase a new car…)
• Purchase an investment property

Mortgage brokers are specialized in one thing: mortgages. An experienced mortgage professional will be able to access the best mortgage products in the marketplace and their expertise will help you save money.