Pre-Approval

This can be the most important part of the entire mortgage process. Opposed to what most Bank do, which we refer to as a “Rate Guarantee”, we complete a FIRM PRE-APPROVAL. What’s the difference? Although the rate hold or guarantee is very important, especially in an upward rate environment, it is more important to collect, review and approve your information up front, before you purchase a home. We like to have a complete file, which includes:

      Signed application
      Credit report
      Income confirmation
      Downpayment confirmation

Once we have all of this information, the only item left is the Offer to Purchase. Therefore, on the stressful / busy / exciting day when you buy a home, you

will not have any financing concerns because we completed a FIRM

PRE-APPROVAL before hand. You will also be issued a PRE-APPROVAL CERTIFICATE which your realtor will like to have in his possession at the bargaining table.

To us, it just makes sense to do this pre-work well ahead of the buying process. Lastly, this allows you to review, in detail, a mortgage commitment letter and ask lots of questions. An informed client always makes better decisions.
 

Mortgage Life Insurance
 

It is important to ensure that you have House Insurance and Life Insurance when you buy a home. For most people, this is the single biggest asset they own so it makes sense to protect your wealth. We are not in the business of selling life insurance; we are experts in the field of Mortgage Finance. However, we offer a competitive mortgage life & dissability insurance plan to make sure our clients understand the risks involved with not being covered. It is important to note that you are not required to take Creditor Insurance for a Mortgage. Some Banks suggest this so be careful.

Benefits:

• Relatively inexpensive – group rates

• Very easy to set-up

• Peace of mind coverage for your family

Credit Reporting

For $25+/-, Equifax Canada online will give you access to your personal credit report. It is imperative that people review this information every 12-18 months to insure that the information is accurate. Our consultants are trained to review this information with you in detail when you apply for a mortgage.

Most Banks have now embraced a credit scoring system. Referred to as a FICO score or a BEACON score. Most “A” lenders require a score in the 620 or above range. We routinely find mortgages for clients who have lower scores and we can also assist clients in increasing their score over a period of time.

Credit scoring is based upon many different variables. These variable include:

     The number of credit lines that you operate
     Your payment behaviour and pattern
     Credit card and line of credit balance – are you at your upper

          limits?
     Amount of outstanding current debt
     Any collections? Small Judgments?

We cannot overemphasize the importance of knowing and understanding your credit history.