Frequently Asked Questions
There are many ways to qualify for a mortgage when purchasing and refinancing. Some mortgages are based on the equity of your home with no income qualification required, while others are based on salary and credit worthiness.
Each mortgage application is treated differently and can be approved subject to your specific needs and qualifications. At Maple Leaf Mortgages, we are experts in determining the route to process your application in order to obtain the best mortgage rate and product available in the marketplace.
What is the difference between a fixed-rate mortgage and a variable-rate mortgage?
A fixed-rate mortgage is when your mortgage has a set interest rate for a pre-determined term ranging from 6 months to 10 years. This option will allow you to know the exact amount that you will be paying monthly for the entire length of the term selected.
A variable-rate mortgage is when your mortgage payment is fixed for the pre-determined term of one to ten years, but your interest rate may fluctuate monthly depending on the market conditions and the prime rate. When the prime rate goes down, more of your payment will go towards the principal; when the prime rate goes up, more of your payment will be used to cover the interest.
How does bankruptcy affect my qualifications?
If you own a house and have equity, we can get your home refinanced for you, even if you have a prior bankruptcy. In order to purchase a home, depending on your down payment, we can get you a mortgage provided, you are discharged from bankruptcy.
Learn more about our bankruptcy and consumer proposal services here .
I am in business for myself and can’t prove income; can I still get a mortgage?
Yes. We can still get you approved for a mortgage. The qualifying process is different: rates and terms may vary depending upon your credit score. If it is a refinance or consolidation mortgage, then it depends on the equity in your property and your down payment towards your purchase.
You will need to answer 4 simple questions:
- How is your credit
- How much are you putting down (if it is a purchase)? / What is the equity in your home (if it is a refinance)?
- What is your income?
- How long have you been in your job?
Learn more about our services for self-employed individuals here .
Rates can be held between 90 to 120 days. If they drop, you get the lowest rate at the time of closing.
Rates are typically held after obtaining our pre-approval, read more about them here .
Can we arrange bridge financing?
Bridge financing can be arranged depending on the closing date and is usually no more than 6 weeks of the new purchase.
Can we switch from a variable to a fixed rate?
Depending on the terms of your mortgage, you can switch to a fixed rate term from a variable rate mortgage at anytime, and vice versa. However, you should always speak with a mortgage professional beforehand as there may be fees to be paid.
I have bruised credit; can I still get a mortgage?
Although it will be more difficult to do so, as long as you have equity in your property, we can get you approved for a mortgage or refinance with bruised credit or no credit.
If you have credit issues, learn more about what Maple Leaf Mortgages can do for you here .
With excellent credit, job stability and proof of income, we can arrange a mortgage with no money down, up to 100% of the property value or purchase amount (subject to availability).
What is a home inspection and is it important?
A home inspection is when the overall condition of the home is determined after a thorough visual examination of the property. The inspector will identify any components in the home that are deficient or unsafe. These results are documented in a written report and provided to the purchaser within 24 hours of the inspection.
Although an inspection is not mandatory, we would highly recommend that you get one so that you can be comfortable with your purchase decision. This inspection will help ease your mind by knowing beforehand the exact physical state of your potential new home.
Can I use gift funds as a down payment?
Most lenders will accept gift funds as a down payment. The donor and the receiver must both sign a Gift Letter stating that the funds are a gift. This letter will be given to you from the lender or mortgage broker and they will also need to see the actual bank or money transfer to you as proof of the gift.
What are some of my monthly costs if I own a home?
Mortgage payment:
Mortgage payments are typically the largest monthly expense of owning a home. Monthly payments will be based on the principal amount, the mortgage interest rate, the mortgage term and the amortization period.
Property taxes:
Property taxes can either be paid monthly by the lender as a part of your mortgage payment, or you can remit it directly to your municipality along with proof of payment to your financial institution.
School taxes:
School taxes, in some municipalities, are integrated into your property taxes. Or, in others, they are collected separately and amassed into a lump sum that is due at the end of the school year.
Utilities:
There are several utility bills that must be paid monthly when you own a home, such as; heating, air conditioning, gas, electricity, water, telephone, cable and internet.
Maintenance and upkeep:
To maintain your property well, you will need to cover the cost of painting, roof repairs, electrical and plumbing, walks and driveway, lawn care, snow removal, and any other potential renovations or damages.
Note: some of the aforementioned expenses (like your taxes) are not billed monthly. To break them down into monthly costs, you will need to do some calculations.
