Mortgages by Adrian Kania

CREATIVE FINANCING SOLUTIONS FOR HOMEOWNERSHIP AND INVESTORS

Convenient

The Mortgage Process

The benefit of using an independent mortgage agent is that we assess your application and documentation to match it with the best options available in the industry depending on varying criteria of different lenders.

I will accommodate your schedule and preferences – any time, any day, any method. We can meet in person at one of the many offices around Ontario or at any location suitable to you; we can also meet over web-conferencing as the entire mortgage process can be completed digitally.

Step-by-Step Guidance

Consultation

We accommodate your preferences. The consultation can occur in person at the office or a convenient public location, or we can meet on web video or simply a phone call to discuss your real estate needs and goals. Please refer to the mortgage glossary of terms to prepare for a consultation.

Application

The next step is completing an application by providing your personal information and consent for a credit bureau report. No need to worry, our mortgage specialists are available to answer questions at any moment to accurately complete the application.

Documentation

Based on the application details, we will gather all of the documents necessary to satisfy the identification, income, and networth verifications required by lenders. The list of documents is exhaustive and constantly expanding in the mortgage industry to protect parties against potential fraud.

Pre-Qualification

After reviewing the application and documentation, we will provide an assessment and discuss the best mortgage options to determine the budget and expectations for the realtor.

Financing Approval

After signing an Agreement of Purchase and Sale for your new home, we will advise on additional documents required to provide you with a Mortgage Loan Commitment from a bank or lender. It’s important to note that all Approvals are subject to the satisfactory completion of an appraisal, which can impact the initial Commitment.

Solicitor Conditions

After signing the Commitment, the process is completed with the broker and transferred over to the lawyers. It’s important to note that all Approvals are subject to the satisfactory completion of solicitor conditions, such as a title search, which are typically conducted the week of your closing date.

Funding

After satisfying all lender conditions, such as obtaining property insurance, the lawyers will advise on the necessary actions, such as preparing the bank draft to ensure a smooth acquisition. There are creative solutions like “Bridge” financing for a very short period should there be unexpected delays on obtaining the funds for downpayment.

Standard Criteria

Institutional Banks approve mortgage applications based on the borrower meeting the below criteria:

Debt Servicing (DS): The maximum mortgage loan amount is computed using a ratio of your verified income and debt obligations. The lowest rate options are available to borrowers meeting the industry benchmarked DS requirements, with some alternative lenders offering higher rate options to borrowers with higher DS.

Creditworthiness: A credit bureau report is pulled from Equifax or Transunion. Most mortgage products require a minimum credit score of 640, but some alternative lenders have higher rate options available to borrowers with lower scores.

Downpayment: The source of funds must be clearly defined, such as savings or gifted from a family member. The minimum downpayment is 5% for property values up to $500,000, plus 10% of every additional portion up to $1,000,000, which requires 20% thereafter. A downpayment of less than 20% is only available with an insured mortgage product, which includes an insurance premium added to the mortgage loan amount.

Appraisal: The type of real estate being purchased may impact the mortgage options that are available, such as a rural cottage or land. The other important factor is whether or not the appraised value covers the purchase price, as most lenders use the appraised value when computing the mortgage loan amount.