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Frequently Asked Questions

Here are some of the most asked questions that our brokers receive from our clients.

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Q: What is a mortgage consultant?

Answer: A mortgage consultant is a professional, independent business person who works directly for you.  They negotiate on your behalf with financial institutions and private sources to help you secure the best available mortgage to meet your financial needs. We do everything in our power to deliver the exceptional service we’ve always been known for—and find new ways to make it better all the time.

Q: Why use a mortgage specialist instead of a bank?

Answer: Banks deal with one lender. Mortgage specialists deal with many lenders at a time providing clients with a broader choice of services. Mortgage specialists use a lot of institutions which give them extra benefits such as lower interest rates and quick approval.

Q: Do I need mortgage insurance?

Answer: Mid Island Mortgage and savings suggests you have mortgage insurance in place for your family’s peace of mind. However, we offer you the options of whether you wish to be contacted by an insurance agent or whether you wish to decline the insurance.

Q: What is the cost to use a mortgage specialist?

Answer: For most people it is a free service as it is the lender who pays our fees.

Question: Can I put 5% down to obtain a mortgage?

Answer: There are programs available that allow 5% of the purchase price or appraised value as a minimum down payment.  This applies to property valued at $500,000 or less. For properties valued at $500,001-$1,000,000 the requirement is 5% on the first $500,000, and 10% on the balance.

For purchases over $1,000,000 you require a minimum of 20% down.

The down payment must be from your own resources or a financial gift from an immediate relative. You also have to show that you are able to cover closing costs of 1.5% (approx.) of the purchase price.

Down payments can be saved in various investments including First Time Home Buyers Savings Plans (FTHBSP), Registered Retirement Saving’s Plans (RRSP), Tax Free Saving’s Accounts (TFSA).  Speak to your mortgage professional for potential benefits.

Question: How do I know if my income is enough to qualify?

Answer: A major factor to qualifying for a mortgage is Debt Servicing.  Is your income enough to “service” the mortgage and your other debts.

GDSR: Your maximum gross debt service ratio (GDSR) cannot exceed 39%. This means your principal, interest, property taxes and heating costs cannot exceed 39% of your gross income.

TDSR: Your maximum total debt service ratio (TDSR) cannot exceed 44%. This means your principal, interest, property taxes, heating costs and monthly obligations including loans and credit cards cannot exceed 44% of your gross income. The mortgage loan insurance premium can be added onto the mortgage or paid separately. Your credit history must be in good standing.