A First Time Home Buyer does not require a 20% down payment to enter the market. The minimum down payment for a First Time Home Buyer or a repeat home buyer is 5% of the first $500k of the purchase price and 10% for any amount above $500k
When putting down less then 20% down payment on a new home yes there are additional costs. As per Federally Regulated Rules when a buyer is putting less then 20% down the mortgage must be insured by one of the 3 Mortgages Insurance Companies in Canada; Canadian Mortgage Housing Coporation (CMHC - Government Run Mortgage Insurance Company), Sagen Financial and Canada Guaranty, both privately run Mortgage Insurance Companies. The premium that get added to the mortgage loan you have been approved for is tiered based on your down payment. A 5%-9.99% down payment has a 4% insurance premium that gets added to the mortgage amount calculated based on the mortgage amount approved. A 10%-14.99% down payment has a 3.10% insurance premium that gets added to the mortgage amount calculated based on the mortgage amount approved. A 15%-19.99% down payment has a 2.80% insurance premium that gets added to the mortgage amount calculated based on the mortgage amount approved.
When a down payment of 20% is available the Mortgage Insurance Premium is not required. In some circumstances a premium might apply based on the transaction and borrower requirement.
Buying an investment property is rapidly becoming a preferred investment for current homeowners. As real estate values generally appreciate over time, it is considered a secure option to invest in. The DNA Lending Group team is committed to facilitating a seamless investment experience for you by ensuring a coherent application process and addressing any inquiries that may arise along the way!
Refinancing a mortgage is the process of replacing an existing mortgage with a new one, typically to obtain a better interest rate or loan terms, access equity in the home, or consolidate debt.
Refinancing your mortgage can help you lower your monthly payments, reduce your interest rate, or access your home equity for other financial needs. When you work with a trusted mortgage brokerage like DNA Lending Group, a team of Mortgage Alliance, we can ensure you know all the steps of the process ahead of time to ensure you’re in the best position to secure a refinanced mortgage. We’ll discuss your financial situation before shopping lender options, delivering you expertly negotiated products that ensure you’re getting the best deal.
The best time to refinance your mortgage is when it makes financial sense for your situation. Here are some situations where refinancing may be a good idea:
Yes, it is possible to refinance a private mortgage, although the process may be different than refinancing a traditional mortgage through a bank or other financial institution. We can work with any unique situation when it comes to refinancing, all you have to do is let us know, and we’ll negotiate on your behalf!
When a mortgage is renewed, the existing term comes to an end, prompting the need for renegotiation or extension of the loan. We guide clients through this process by first assessing their current financial situation and reviewing the terms of their expiring mortgage. We discuss available options, including renegotiating interest rates, adjusting the term length, or exploring alternative lenders. We also assist in gathering necessary documents, ensuring a smooth transition to the renewed mortgage term that aligns with the client's financial objectives.
The ease of renewing your mortgage largely depends on your individual circumstances and prevailing market conditions. Generally, if a borrower has maintained a good payment history, a stable financial situation, and a decent credit score, obtaining a renewal tends to be straightforward. However, certain factors, such as changes in income, credit issues, or shifts in the real estate market fluctuations, can influence the renewal process.
Renewing a mortgage and refinancing are two distinct processes. Mortgage renewal involves extending or renegotiating the terms of an existing mortgage without significantly altering the loan amount. On the other hand, refinancing involves replacing an existing mortgage with a new one, often under different terms and a new interest rate. It may also involve accessing additional funds against the home's equity.
An alternative mortgage lender operates as a financial entity, often smaller in scale, such as a credit union or boutique bank. Their primary distinction lies in their flexibility to extend loans to individuals who fail to meet the stringent standards set by conventional mortgage providers. These lenders might consider unconventional factors like non-traditional income sources or lower credit scores.
Alternative lenders function by offering a more inclusive approach to loan approvals compared to traditional mortgage institutions. They tend to have more lenient eligibility criteria, which can make the application process more accessible and increase the likelihood of loan approval for individuals who may not meet the strict requirements of mainstream lenders.
The critical aspect to grasp about alternative lenders is the need for thorough scrutiny of the mortgage terms they present. While these lenders may offer loans to individuals considered higher risk by traditional standards, they often come with altered terms. Borrowers might encounter higher interest rates, varying loan durations, or specific additional conditions that deviate from the norms of traditional mortgages. Hence, comprehensively reviewing the offer becomes imperative to understand the implications and make an informed decision. As your mortgage broker team, we have extensive expertise and in-depth knowledge of alternative lenders, thus assisting you in navigating complex requirements, matching you with suitable options, negotiating terms, and streamlining the application process.
