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From payment calculators to refinancing, choose from one of our seven comprehensive online mortgage calculators to quickly get the answers you may be looking for. |
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JENCOR MORTGAGE
305 - 1822 10th Ave S.W.
Calgary, Alberta
T3C 0J8
Toll Free Number: (877) 245-3636
Phone Number: (403) 245-3636
Fax Number: (403) 229-3113
E-mail: info@jencormortgage.com
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What is the purpose of a pre-approved mortgage?
A pre-approval gives you the peace of mind in having an interest rate guaranteed (usually 90-120 days), and knowing the price range you can afford when shopping for your dream home.
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How much does it cost to use a Mortgage Agent?
For the average client, nothing! A brokerage fee will only be charged in special circumstances. Generally, the only costs associated with getting a mortgage are your legal fees, a CMHC/Genworth application fee or an appraisal fee.
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What are debt servicing ratios?
These are the guidelines lending institutions use to qualify you for a mortgage. There are 2 ratios they use in unison to make sure you will be able to afford your home and your lifestyle.
The 1st is GDSR, or Gross Debt Service Ratio. This includes your mortgage payment, property taxes, heating costs and, if applicable, your condo fees.
The lending institutions will only allow up to 32% of your gross income to be used for your GDSR.
Monthly Mortgage Payment + Monthly Property Tax + Heating Costs + ½ Condo Fee
Monthly Gross Income
The 2nd is TDSR, or Total Debt Service Ratio, which includes the variables from GDSR and any monthly liability payments you may have, such as car payments, credit card payments, etc. The lending institutions will only allow up to 40% of your income to be used for your TDSR.
GDSR + Liability Payments
Monthly Gross Income
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What is CHMC and Genworth?
When buying a home in Canada with less than 25% down, it must be insured for both the client’s and the bank’s safety. CMHC (Canada Mortgage and Housing Corporation) or Genworth protect the bank against default payments and also protect your investment by ensuring the value of the property is in line with your purchase price at the time of purchase. They charge a premium that is added to your mortgage, depending on the amount of down payment you supply, for their services. The chart below shows the Loan to Value and the premiums charged by both CMHC and Genworth
| Loan to value |
Premium |
| Borrowed or Flex Down |
2.90% |
| Up to and including 95% |
2.75% |
| Up to and including 90% |
2.00% |
| Up to and including 85% |
1.75% |
| Up to and including 80% |
1.00% |
The Example below shows the purchase of a home with a 5% down payment.
| Purchase Price: |
$200,000.00 |
| (5% Down payment) |
($10,000.00) |
| Basic Mortgage Amt : |
$190,000.00 |
| + 2.75% CMCH/Genworth Premium: |
$5,225.00 |
| Total loan amount: |
$195,225.00 |
How long does it take to get a mortgage approval?
Generally, a mortgage approval takes 1-2 business days to obtain. However, it depends on the lender and your specific situation.
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What is the purpose of using a Mortgage Agent?
A Mortgage Agent is not only a helping hand along the way but also a way to save thousands of dollars over the life of your mortgage. We will find the best mortgage product and term to match your needs. Mortgage Agents walk you through the whole process of obtaining a mortgage, from helping you choose a realtor to making sure your lawyer has all the documents needed to complete your mortgage approval. As a bonus, we can usually offer a rate at more than 1% off banks’ posted rates.
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What kind of paperwork do I need?
The paperwork needed to obtain a mortgage depends greatly on your unique situation. You will need to confirm your employment and income. This may be obtained from an employment letter and pay stub or by tax information. You will also need to confirm your down payment, whether it be from savings, RSP or sale of existing home. Your mortgage agent will let you know what paperwork will be required upon application.
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What if I am not using a realtor?
Not using a realtor is becoming more and more common. This is not a problem. We will work directly with you and your lawyer to make sure your purchase goes smoothly.
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Can I borrow my down payment?
Programs have been introduced recently that help clients with good credit history buy a house with borrowed down payment. There are 2 programs; both depend on credit history and job stability, and also charge a higher insurance premium. The first is Genworth’s Free Down Payment program. In this program, the bank supplies the down payment for you in exchange for a higher interest rate over the term of your mortgage. With this program, you must take a 5 year closed mortgage. The second program is CMHC’s Flex Down Program. This program allows you to borrow the down payment from a credit card, line of credit or bank loan with a discounted rate. You can take any term from 6 months to 25 years. Both programs affect qualifiers differently; you and your mortgage agent should discuss the best option for your situation.
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