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"I
found Personal Choice to be just that ... Personal. Dealing
face-to-face with my mortgage representative was not only an
enjoyable experience but a step above dealing with a faceless bank.
I would not hesitate to recommend Personal Choice to friends and
family looking for a mortgage with a Personal touch".
Mr. & Mrs. G. Sands
"As real estate agents, we would like to express the
professionalism, knowledge and service that Personal Choice
provides...is second to none. We can say this with the utmost
confidence, as we ourselves, have been clients in the past and have
experienced this first hand and will continue to recommend our
clients to Personal Choice for all of their mortgage requirements."
John & Adele Diliberto
"Verico is extremely proud to be associated with Personal
Choice Mortgages ... their high standard of business ethics,
professionalism and
in-depth knowledge of the mortgage industry clearly exemplifies the
standards
of the Verico Broker Network. I am very pleased to
recommend the mortgage
services of Personal Choice Mortgages."
Colin Dreyer
President/CEO
Verico Financial Group Inc
"I have had the pleasure of dealing with Mary and Personal Choice
for the past 9 years, I have since worked with Verico Personal
Choice on over 15 individual mortgages, and would look to no other
for my mortgage requirements, from start to finish a truly
professional organization".
Andy Fitzhenry
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a Personal Choice."
Head Office:
Personal Choice Mortgage Services Inc.
550 Fennell Avenue East
Suite 216
Hamilton, Ontario
L8V 4S9
Email:
905-318-1414
Toll Free:
1-877-318-4141
Fax:
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 Frequently Asked
Questions
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1) I’ve never used a mortgage broker before. Is there a fee
for your service?
No! We get paid by the lender (financial institution) who
agrees to finance your mortgage. This “finder’s fee” is our
compensation for bringing them worthy residential customers
like you. These fees are similar from lender to lender, so
there is no incentive for us to favor one over the other. In
very rare cases, such as if the applicant has non-standard
credit or we are arranging a second mortgage for which we
are not properly compensated, a brokerage fee may be
charged. Otherwise only in the case of commercial financing
is a fee charged.
Please note that as a licensed mortgage brokerage, the
Financial Services Commission of Ontario (FSCO) and the
Mortgage Brokers Act govern us. All of our agents are
registered with FSCO, as well as the Canadian Association of
Accredited Mortgage Professionals (CAAMP). Please see our
links to both of these associations.
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2) What is a
conventional mortgage?
A conventional mortgage is one in which the mortgaged amount
does not exceed 75% of the market value of the property.
This means that the borrower must have 25% or more available
for the down payment or equity remaining in their home.
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3) What is a
high ratio mortgage?
A high ratio mortgage is one in which the financing required
is greater than 75% of the appraised value or purchase price
of the home. More specifically, a high ratio mortgage would
need to be arranged when a purchaser has less that 25% for
the downpayment. In this case, it is mandatory that the
mortgage has to be insured either by CMHC or Genworth, which
protects the lender’s investment should the borrower not be
able to meet the repayment terms.
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4) What is
mortgage loan insurance?
Mortgage loan insurance is for clients who have less than
25% down payment or less than 25% equity in their home. If
this describes your situation, your mortgage is subject to
an insurance premium. This premium insures the lender that
should you default on your mortgage payments they will
reimburse the lender for their investment. See our links to
CMHC and Genworth for a breakdown of insurance premiums.
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5) What is a
fixed rate mortgage?
In a fixed rate mortgage, the interest is determined and set
for the term of the mortgage, which means that there is no
change to your principal and interest payment for that
particular term. Fixed rate mortgages are most desirable
when current interest rates are low.
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6) What is a
variable rate mortgage?
Also referred to as adjustable rate mortgage, a variable
rate mortgage is the opposite of a fixed rate mortgage. The
interest rate on this loan may fluctuate during the term of
the mortgage reflecting changes in current market rates as
dictated by the Prime rate, which is set by the Bank of
Canada.
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7) What is a
“Zero Down” mortgage?
Sometimes saving the necessary cash required for your down
payment on a home is not as easy as it looks. However, there
are no-down payment programs that can make homeownership
happen. If you have excellent credit history and can provide
acceptable proof of employment and income, there are
products available for you. Give us a call... we’ll find the
product that best suits you!
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8) What is
an interest only mortgage?
Just as the title describes, an interest only mortgage is a
mortgage loan where you only pay the interest on the
mortgage for a fixed term in monthly payments. At the end of
the term (ie. 5 years), you have the option of paying the
balance owed, refinancing or renewing the mortgage in order
to start paying the principal balance. This product has very
specific uses and is not for everyone. Typically, in the
case where for a period of time cash flow is an issue, an
interest only mortgage is a viable option, although many
financial advisers would recommend it only for a short,
specific period of time.
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9) What is a
pre-approval?
Requesting a pre-approval allows you to shop for a property
within your price range with the comfort of knowing that
financing is available, subject to the lender reviewing the
subject property. A pre-approval, based on your current
financial review and credit check, determines the amount you
can borrow, the size of your mortgage payments and your
interest rate, which is then guaranteed for a maximum of 120
days.
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10) What mortgage options are available for new immigrants?
There are a number of guidelines that govern lenders’
approvals. As a new immigrant without an established credit
history or a beacon score, this can sometimes create
challenges. There are an assortment of products available,
however, that are dictated by down payment (LTV), debt
ratios (GDS/TDS), previous credit, as well as the ability to
provide proof of income whether you are a regular employee
or self employed that will help a new immigrant get a
mortgage. To better understand what you may qualify for,
feel free to contact us and we will research your financing
options for you.
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11) If I have had previous credit problems, can I get a
mortgage?
Conventional lenders such as banks prefer to deal with
borrowers who have very good credit history. However, there
is a wide variety of products available to suite nearly
every potential buyer. Our approach is to find the product
that best suits your financial scenario. Lenders are
realizing that this is a portion of the market that needs
attention and a large number of them specifically cater to
these needs. Call us to find the one that best suits you!
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12)
How can I pay down my mortgage sooner?
There are a number of ways to achieve this. Opting for a
bi-weekly payment schedule is one step in the right
direction, but it is even more effective when coupled with
taking advantage of your particular lender’s prepayment
policy. It is not really the frequency that makes a big
difference, but how much you pay. Any extra payment towards
your principal dramatically improves your amortization
period, thus decreasing your principal balance quicker and
saving you the interest you’d pay over a longer
amortization.
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13) Do I have the ability to make my mortgage interest tax
deductible?
Yes. In a nutshell, there is a very popular strategy
otherwise known as the Smith Manoeuvre. It is a process
where the non-tax deductible portion of your mortgage is
converted into a tax-deductible loan. Using this process,
you not only receive tax refunds, you also build a
retirement nest egg and pay your mortgage off sooner. The
strategic relationship between your Personal Choice mortgage
consultant and our/your financial planner is essential.
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14) Can I get a mortgage to purchase a home and make
improvements?
Yes. This option eliminates the need to finance the
renovations or improvements separately. It can also be done
in the case of high ratio financing, although some
conditions apply. Please note that the funds for the
renovations are not advanced up front. Rather, they are
reimbursed to the clients after an inspection is complete to
insure the value of the work completed is accurately
reflected in the homes new overall value. Please feel free
to call us for further clarification.
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15) Will child support and alimony affect my ability to get
a mortgage?
Where child support and alimony are paid by you to another
person, generally the amount paid out is deducted from your
total income before determining the size of mortgage you
will qualify for. Where child support and alimony are
received by you from another person, generally the amount
paid may be added to your total income before determining
the size of mortgage you will qualify for, provided proof of
regular receipt is available for a period of time determined
by the lender.
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16) Can I use my RRSP’s to help buy my first home?
Yes, first time homebuyers may withdraw up to $20,000 from
their RRSP tax-free. The amount withdraw must be repaid to
the RRSP interest free over a 15 year period commencing the
year following the withdrawal with a minimum annual
repayment of 1/15 of the amount. If both spouses qualify and
are taking joint ownership of the property, up to $40,000
can be withdrawn.
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