We offer a full range of residential mortgage products to our clients from many different lenders. Let us work with you to find you the best mortgage for your financial needs. We offer refinancing so that you can consolidate debt or to help you fund that home renovation. First mortgages, second mortgages, third mortgages. Home Equity lines of credit (HELOC). Mortgages for people with bruised credit, and for people with hard to prove income.
5% Down Mortgage
Purchase Plus Improvement
Self Employed Mortgages
Bruised and Damaged Credit
Manulife One Mortgage
The time period that the mortgage will be paid over. A new non-conventional mortgage can not be amortized for longer than 25 years.
The length of time before your mortgage will renew and you will have to negotiate a new rate with the lender. Terms are usually between 1 to 5 years. Longer terms are available but are not very popular.
An open mortgage allows the borrower to break their current mortgage. There will be a charge for doing so and it can be very expensive.
A closed mortgage means that the borrower is locked in for the term of their mortgage. Some lenders will only allow you to break the mortgage if you sell the home, and there will be a significant penalty for breaking the mortgage.
A mortgage where the loan to value ratio is 80% or less. (or to put it another way your down payment is at least 20%). A conventional mortgage does not have to be insured by CMHC or Genworth. This allows the lender to be more flexible when it comes to the terms of the mortgage. For example a conventional mortgage can have an amortization that is longer than 25 years.
High Ratio Mortgage
Otherwise known as a non-conventional mortgage a high ratio mortgage is any mortgage with a loan to value ratio greater than 80% up to 95%. (In other words any mortgage where the down payment is between 5% to 19.999%) a high ratio mortgage must be insured by CMHC or Genworth or Canada Guaranty. A high ratio mortgage can not have an amortization period of greater than 25 years.
Loan to Value Ratio
The percentage of the value of the property that you are borrowing. If you are buying with 5% down your loan to value ratio would be 95%.
Gross Debt Service Ratio
This is a formula that lenders use to determine the maximum amount of mortgage that you are allowed to borrow. This is often shortened to the GDS or GDSR. the formula for gross debt service ratio is Principal + Interest + Property Taxes + Heating cost + 50% of Maintenance fees. With excellent credit most lenders will allow a GDSR of up to 39% of you and your co-borrowers income. Should your credit be less than excellent then the GDSR amount allowed would be lower. As an example if the combined income of you and your co-borrower is $100,000 per year and you both have great credit, then the lender would allow you to get a mortgage where the annual cost of mortgage payments (principal and interest) + Property taxes + Heating + 50% of condo fees does not exceed $39,000 per year.
Total Debt Service Ratio
Often expressed as TDS or TDSR the total debt service ratio is another important formula that lenders use to determine how much you are able to borrow. With excellent credit the maximum tdsr that most lenders will allow is 44%. TDSR is calculated as GDSR + your other monthly debt obligations. These can include things like car payments, credit card payments, lines of credit, other mortgage payments, student loans etc. As an example, if both you and your co-borrower have a total income of $100,000 per year and you both have great credit then the lender would allow a loan where your total debt service is $44,000 per year or less. (annual cost of mortgage payments (principal and interest) + Property taxes + Heating + 50% of condo fees + all other monthly debt obligations)
Mega Mortgage Inc.
All Mortgage products are placed through Mega Mortgage Licence #12060. Rick Honeyford Mortgage Agent licence #M15001685