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What are the advantages of owning vs renting ?
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Being the owner of a property enables you to enjoy a better quality of life.
In addition, you invest into a real estate value rather than putting cash into a home which will never be yours.
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2.
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For which kind of property can I apply for a mortgage loan with Multi-Prets and which are the selection criteria to qualify ?
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At Multi-Prets, our mortgage consultants can negotiate on your behalf a mortgage for a new or existing residential property, for a single family dwelling as well as for a multiplex, a condo or a commercial building. We deal with over 15 prominent financial institutions.
We can obtain a mortgage loan for the purchase of a property, transfer your mortgage from one financial institution to another when renewing, or merely refinance your mortgage to enable you to renovate or execute other plans.
Precise given conditions apply for each individual case and for each individual mortgage product considered.
Talk to one of our mortgage specialists to learn more about a particular situation.
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3.
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How much can I possibly borrow to finance the acquisition of a property?
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When you meet with a Multi-Prets consultant, he or she will help you calculate your borrowing capacity ie the potential amount of loan you might qualify for, depending upon your current and past financial situation.
Nevertheless, it is always a good idea to know your personal payment limits. It is actually a fact that your maximum borrowing capacity might not quite be a 'comfortable' cash repayment situation in regards to personal quality of life.
Taking this factor into account in calculating your budget will allow you to avoid embarrassing financial situations.
Look at your personal finances.
Compare your revenues with your current level of expense and make sure you can repay your debt without giving up too much.
It is also worth while to know that you can benefit from a rate interest protection which varies from 150 to 180 days depending on originating lenders. This rate protection guarantees your rate will not increase when market rates go up.
To simulate your borrowing capacity, please use the Multi-Prets calculator which has been designed precisely to this end: Click here!.
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4.
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What are the conditions to meet in order to apply for a mortgage?
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In most cases you will need:
? a proof of revenue;
? a satisfactory solvability report
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5.
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What is the initial down payment to make the acquisition of a property?
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Historically, a downpayment of 5% of the purchase price of the property was required to qualify for a mortgage loan.
Recently, rules have changed and it is now possible to acquire a property with virtually no cash down. To obtain more details regarding this particular mode of financing, talk to your Multi-Prets consultant.
You also have to prove that you are able to pay an amount which equates to 1.5% of the purchase price to cover the loan closing costs, ie legal and notary fees, disbursements, evaluation fees and fees to produce the localization certificate if needed.
In addition, mortgage applications with a down payment which is less than 25% must be complimented by a payment default insurance provided via CMHC or GE Capital.
Note that the higher the downpayment, the lower the global cost of the property is in the long run. In effect, the least you borrow, the less interest you will have to repay and, as years go by an economy is consequently.
| % of downpayment |
Amount of downpayment |
mortgage capital |
Total paid interest* |
| 5 % |
5 000 $ |
95 000 $ |
122 512 $ |
| 10 % |
10 000 $ |
90 000 $ |
116 063 $ |
| 25 % |
25 000 $ |
75 000 $ |
96 717 $ |
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6.
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Where can I find the cash to put on a down payment?
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Here are some common strategies to gather enough cash for an initial down payment:
?have a familly member make a donation to you;
?use your RRSP. With the Federal administrered House Buying Plan (HBP), you can withdraw up to 20 000 $ from your RRSP account, per applicant, without any penalty;
?borrow by leveraging your current assets, such as shares or bonds;
?use your savings.
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7.
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Can I use funds received as 'gifts' to make my initial down payment?
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Generally, mortgage lenders will accept that the origin of funds for a downpayment be a gift from parents or relatives, provided you can produce a document signed by the donator and establishing that it is actually a gift rather than a loan.
Contact one of our Multi-Prêts mortgage consultant : Click here! for more details.
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8.
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How can I use my RRSP account to purchase my first home?
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The House Buyer's Plan federal government program (HBP) allows every Canadian citizen to withdraw up to $20,000 from his registered retirement account without penalty to buy a first home.
For a couple deciding to jointly acquire a first property, this can represent a maximum of $40,000.
Each RRSP account owner then has up to 15 years to repay the withdrawn amount.
Please inquire with your Multi-Prets consultant for details.
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9.
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What are the other expenses I should plan for when buying a property?
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Before you make up your mind on the subject of acquiring a piece of property, evaluate all one time expenses as well as reccurring charges related to the purchase and maintenance of a house.
To establish your budget, consider the following expense items:
.Fees associated with the purchase of a house:
.evaluation fees;
.notary fees;
.certificate of location;
.land transfer tax;
.mortgage insurance premium (CMHC, GE Capital);
.mortgage insurance premium 9% tax;
.moving expenses;
.housing insurance;
.municipal tax adjustement;
.monthly mortgage payment (capital and interest) ;
.real estate (municipal) tax;
.mortgage life insurance;
.heating costs ;
.condominium fees (if any) ;
.house maintenance costs.
Your Multi-Prêts financing consultant will be able to help you evaluate these costs.
>Click here to contact him(her)!
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10.
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Can I get pre-approved for a loan before I even find the property of my dreams?
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Absolutely.
Our lenders all offer pre-qualifications ranging from 60 to 180 days.
Besides, in the case of new construction, many lenders will also grant an appropriate delay considering the planned work schedule.
There is a definite advantage in being pre-qualified:
you know in advance your borrowing capacity and can shop for your house with assurance and piece of mind.
In addition you will have locked the rate for the considered period while you are looking for a house or building one, being safe from any sudden rate increase.
To contact one of our consultant on this issue, >Click here!
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11.
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What will my monthly mortgage payments be?
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The amount you will have to repay each month for your mortgage will depend upon the total amount borrowed (property purchase price minus the initial downpayment), the total amortization period for the loan as well as its actual interest rate.
You can use our >«payment simulator» mortgage calculator to determine the approximate amount of your mortgage payments.
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12.
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What does a mortgage broker do?
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The Multi-Prets financing consultants negotiate on your behalf with over 15 financial institutions to get you the best possible rates and conditions in regards to your particular situation.
Since Multi-Prets generate a high transaction volume with the various lenders, they grant us rate discounts which you can get benefit from.
In addition, we receive a commission fee from the lender, which authorizes us to offer you this brokerage service for free for residential mortgages.
In short the mortgage broker gets the best out of more than 15 financial institutions and offers it to you straight, along with pertinent advice.
Finally your financing consultant supervises your transaction from the initial presentation of the application to one or several lenders, up to its completion when signing the deal at the notary's place.
Contact your Multi-Prêts mortgage financing consultant right now: >Click here! to obtain more details.
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13.
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What will a Multi-Prets mortgage specialist exactly do for me?
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The Multi-Prets mortgage consultant already went through all the promotions and special deals being offered by the financial institutions, which spares you the hassle and loss of time when shopping for a mortgage.
He can help you determine which lenders' offers best fit your needs.
Forget about mortgage shopping!
The Multi-Prets experience is one of simplicity and efficiency. In addition the service is being offered free of charge for any residential mortgage! (5 loging units and less).
Using up-to date technology, your Multi-Prets consultant is linked with the financial institutions via a computerized system which delivers a fast service with the best quality.
The consultant has access to up-to-date rates, conditions and refund options available on the market and can find a suitable product for almost any financial situation.
The mortgage specialist handles exclusively mortgages and has a refined knowledge of its market. Multi-Prets offers a compulsory training to its consultants of over six weeks to ensure you get the best possible standards in terms of quality of service, profeciency and ethics.
Contact one of our Multi-Prets specialists: Click here to obtain more details.
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14.
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Which mortgage transactions can I submit through Multi-Prets?
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You can require our services for several mortgage loan projects:
-to purchase a property
-to refinance an existing loan on a property
-to renew an existing mortgage loan coming at its term
-to transfer your mortgage loan from one lender to another
-to obtain advice regarding your mortgage loan
-to get information on the Home Buyers Plan program
-to learn about the financing programs aimed at self employed people
-to book a mortgage with a cash refund
-to get pre-autorized for a mortgage loan of a given amount
Contact one of our mortgage specialists at Multi-Prets: Click here! to obtain more details.
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15.
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Which are the fees charged by a mortgage consultant?
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The services being provided by the mortgage consultant are entirely free of charge for most residential mortgages.
It is the financial institution which pays finder's fees to the consultant for every mortgage loan request which he transmits to the institution and which is closed at the notary's place.
The financial institutions actually bear the cost of these fees in their structural distribution costs, there are then no hidden fees to the consumer.
To obtain more information, contact one of our Multi-Prets consultants: Click here!.
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16.
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What allows a mortgage broker to offer a best rate than that of my own bank?
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The Multi-Prets consultants negotiate on your behalf with over 15 established financial insitutions to obtain the best possible rate rebates at the best conditions to match your requirements.
Since Multi-Prets Hypotheques generates a high volume of transactions with the different lenders we deal with, these latter grant us volume rate rebates which are directly reflected to you.
Conatct one of our Multi-Prets consultants: Click here! to obtain more details.
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17.
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If you select a shorter amortization period for your mortgage loan, you will save a lot of money and will get mortgage free sooner than expected.
Find how much you can save on the total of your interest fees for a $ 80,000 mortgage loan amortized on 15 years, compared with the same mortgage loan borrowing scenario over 25 years.
Interest rate | Monthly payment | Total repayment* | Total interest fees* | $ 80 000 mortgage, 25 years amortization period : | | 5 % | 465,29 $ | 139 583 $ | 59 583 $ | $ 80 000 mortgage, 15 years amortization : | | 5 % | 630,50 $ | 113 490 $ | 33 490 $ | * Assuming a constant inerest rate for the duration of the amortization period. Interest rate compounded semi-annually and not in advance. |
To further reduce the amortization period, you can also increase the frequency of your debt repayments to accelerated weekly or bi-weekly, increase the amount of your periodic payment, make lump sum payments on the capital or double your payments.
Use our Multi-Prêts mortgage payment simulator to simulate different scenarios and compare the savings and time decrease on the repayment delays which you can achieve.
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18.
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What is a cash refund?
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A mortgage product with a cash refund, or cash rebate, is a mortgage product in which the lender actually pays the borrower a cash amount which can be used by the borrower to make renovations, cover the closing costs of the mortgage, buy new furniture or equipment or pay other existing debts. If you choose this type of product, you could even make an anticipated payment on the capital of your mortgage, and potentially save thousands of dollars in interest fees! To learn more about the cash refund option, the present offers and to discover the multiple products which are being offered to you, communicate with a Multi-Prets consultant.
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19.
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How can I save on my mortgage loan?
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The simplest way to save on a mortgage loan, is of course to obtain the best possible interest rate on the loan, but also to reduce your interest fees by repaying your capital faster. Four strategies exist in order to do this:
-Increase the frequency of your periodic payments- ask us how much you could save in interest in doing accelerated weekly or bi-weekly payments.
-make a lump sum payment - each year, at the anniversary date of your loan, you can usually repay up to 15 to 20% of the initial amount of your loan, without having to pay any commission or penalties.
-Increase the amount of your monthly payments
-Once a year you can also increase up to 15%, the amount of monthly payment initially determined for the length of your loan, without paying any commission or penalty.
-Take advantage of <> options; you can reduce both interest fees and repay your mortgage faster in doubling your usual payments, including principal and interest, at each normal payment date, without commission or penalty. You can choose to double all of your payments or just do it once a year, you decide.
The whoile amount of your additionnal payment is being applied towards reducing the principal of your loan (capital).
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20.
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Fixed rate mortgage or variable rate mortgage? How to determine which product is best fits my requirements?
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Deciding which type of mortgage loan interest, fixed or variable, to settle for depends very much on your degree of tolerance to the risk of fluctuating of interest rates and on your payment capacity. If you cannot afford to have a variable mortgage budget, because of a tight financial situation, a fixed interest rate is usually a good choice. A variable rate mortgage product is usually the best choice, because the rate is usually more advantagous than the fixed rates at time of booking. Nevertheless, you have to understand that rate levels will fluctuate, and with them your repayment amount.
On the one hand you benefit directly from the rate decrases and thus pay your mortgage faster than with a fixed rate which guarantees the rate and payment for the length of the loan term (6 months to 10 years). On the other hand, when rates increase, you have to pay more interest and if your periodic repayment is not sufficient to cover the capital and interest payment due, you will have to increase your payment level in order to keep the same amortization period for the loan.
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21.
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Will a bankruptcy history influence my mortgage request?
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Yes. Most established financial institutions have restricting mortgage loan approval processes to deal with customers who have experienced financial difficulties. If such is your case, the best advice to evaluate your potential capacity to get approved for a mortgage financing is to discuss it directly with one of our advisors. The Multi-Prets Consultants, have access to many different lenders and products, some of which may be able to accomodate your particular situation.
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22.
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What are the advantages of consolidating my current debts in refinancing my mortgage?
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You could save a significant amount if you consolidate all you loans with high interest rates and all your credit card balances with your mortgage loan. The interest rate of your mortgage is usually far lower than the cumulative rates of your different loans. In addition, the consolidation simplifies the process by leeting you handle all debts with a single payment planification.
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23.
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Can I get approved for a mortgage loan to buy and/or renovate a residence?
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Of course you can, if your credit situation is approved, obtain a mortgage for buying and/or renovating a property.
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24.
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Why should I subscribe to a mortgage insurance program?
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Your property is one of the larger investments you will ever make. The mortgage loan which accompanies it is a huge responsibility and can compromise the security of your familly; what would happen indeed, if you died suddenly? Or if you became ill and could not work while your mortgage payments are still running?
Because the Multi-Prets consultants want to offer you the best possible products and service, they offer you, along with your mortagge loan, the possibility to subscribe to an insurance of the mortgage protection regime, which constitutes a good solution to protect yourself and your familly. The mortgage credit insurance will compliment your existing portfolio of insurances to help you enjoy a worry free mortgage.
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25.
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What is the CMHC?
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The Canadian Mortgage and Housing Corporation (CMHC) is a federally owned corporation created in 1945.
Through to its mortgage loan insurance programs, the CMHC protects the banks against any payment default by adding a compulsoty insurance premium to certain mortgage loans which present particular risk.
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26.
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Who do the Multi-Prets Hypotheques consultant work for?
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The Multi-Prets Hypotheques consultants only work for you! Since Multi-Prets is not affiliated with any bank or lender, its consultants are truly independent and provide you with the best rates available amongst over 15 financial institutions in Quebec only.
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27.
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For how long has Multi-Prets been in business?
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Founded in Montreal in 1981, Multi-Prets Hypotheques is the most prominent mortgage brokerage firm in Canada.
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28.
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How does Multi-Prets protect my personal information when I submit an online request?
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All of the online requests in which you trust us with personal data are being protected by a security system. This involves that the communication between you and Multi-Prets is strictly private and secure.
It is your own responsibility though to ensure that you local system is adequately protected using appropriate anti-virus, anti-spam and anti-spying software.
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29.
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What is the Multi-Prets policy regarding confidentiality?
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The privacy of our clients is a priority for us. We only collect the information which will be usefull to our lenders to evaluate your financial situation appropriately. Only the lenders we deal with have access to your personal information. The information you trust us with is deemed confidential and will not be divulgated without your prior consent.
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30.
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If I have further questions which are not delt with in the Frequently Asked Questions pages, who should I contact?
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For any question dealing with the services being offered by Multi-Prets, please communicate with us at 1-800-798-7738 or use our online communication form.
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