FAQ

Toronto Mortgage Broker - FAQ

 
 
Credit bureau scoring is a quantitative method of projecting a borrower’s likelihood of repaying a loan. It measures the relative degree of risk a borrower represents to a lender. The most commonly used method is the Fair Isaac Credit Bureau Score (sometimes referred to a FICO). This bases its forecast on actual credit data collected on millions of consumers. The process marks distinctive credit patterns. Each of these corresponds to a forecast of the likelihood of loan repayment.?? The types of information typically used here are:
  • Payment History
  • Outstanding Debt
  • Length of Credit History
  • Inquiries and New Account Openings
  • Types of Credit in Use
FICO scores range from 300 to 900 with the higher score being the better. A FICO score is calculated at each of the major repositories and is based solely on the data within that repository's individual credit file.
Most lending institutions will accept: • Registered Retirement Savings Plans: First Time Home Buyers may use an RRSP as a down payment up to a maximum amount of 25,000. This money is not subject to income tax if repaid within a specified time period. A copy of the RRSP statement is required. • Down Payment As A Gift From Immediate Family: All or part of the minimum equity requirement may be provided by way of a financial gift, as long as all of the following conditions are met: (a) the donor is an immediate relative of the borrower; (b) the Approved Lender has verified that the money is a genuine gift. • Accumulated Savings: This may be verified in the form of a copy of your bank book confirming a balance equivalent to your down payment including the amount of deposit confirming the savings of said amount for a period of not less than 3 months. Should a substantial deposit have been made recently, the source of such funds, i.e. Bonds, Stocks, G.I.C.’s or RRSP receipts will also be required. • Sale Of Existing Home: Here, you will be required to provide a copy of the unconditional "Purchase and Sale Agreement" on your existing property. This needs to be accompanied by a copy of the statement of "Mortgage Balance" on any mortgages presently held against the property. The difference between the sale price and the mortgages owing will substantiate the funds available for your down payment. If the funds are already in the account from the proceeds of the sale of the home, then the unconditional Purchase and Sale Agreement along with the solicitors trust ledger Should reflect this.
In most cases you’ll need :
  • Full-time employment or some other stable income
  • Proof of that income
  • A Good credit rating
  • A verifiable down-payment
To fill out a Mortgage Pre-Approval Application
Getting pre-approved is a recommended way to save time and hassle. Clients who fulfill the lender’s requirements in a timely manner can close a deal in two weeks. Buying with less than 20% of the purchase price as a down payment means the banks will require the mortgage be insured via The Canada Mortgage and Housing Corporation (CMHC). Genworth Financial or Canada Guaranty can help lower your down-payment requirements.

Here are several informative links you may find useful because an educated client is our best customer :

  • Canada Mortgage and Housing Corp
  • Canadian Institute of Mortgage Brokers and Lenders (CIMBL)
  • Glossary of Mortgage Terms from CIMBL
Every purchaser may borrow up to $25,000 from their RRSP under the Home Buyers’ Plan. This program is available to the first time home buyer only. The money must have been in the RRSP for at least 90 days before wthdrawl. Provided you buy or build a qualifying home and meet all of the conditions for making a withdrawal under the Home Buyers’ Plan. Repayment of the funds back into your RRSP can be made over 15 years. (The repayment period starts the 1st full year following the year of withdrawal) If the amount is not repaid in that year, the repayment amount will be added to your income and taxed. The home must be located in Canada and used as your principal residence to qualify. Questions about the HBP program can be directed to the General Enquiries section of your local tax services office. You can find the address and telephone number listed under “Revenue Canada” in the Government of Canada section of your telephone book or go to http://www.cra-arc.gc.ca and reference the Homebuyer's Plan.
Yes. Pls visit the OMJ Mortgage website under commercial products
Yes – However some conditions do apply. You'll need a minimum 25% down and a good credit rating.
Yes . At OMJ Mortgage we have lenders who work around the value of the property and not your credit situation.

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