Mortgage Canada 123 :: FAQ :: Frequently
Asked Questions
Why
are your rates so much lower than my bank?
Major institutions have a lot of money to lend,
but they also have a lot of expenses!
Overhead, salaries, benefits, desks, utilities, to
name a few.
At Mortgage Canada 123, we work for you, and not
for the banks. We bring a great deal of business to
each bank and so are offered wholesale rather than
retail interest rates. Major institutions make their
money on the profit margin on the interest rates
that are sold. This is why you need to haggle for
the lowest rate possible, and even when you think
you have won the battle, chances are, you have not.
Mortgage brokers are not paid based on the interest
rate sold, but rather on the mortgage amount.
Therefore, you are offered the lowest rate upfront.
What is the
difference between a fixed rate and a variable rate?
Fixed rates remain unchanged for the entire term
you have selected. You will not need to worry about
payment changes, or market conditions. These rates
are based on the bond market and will not need to be
renegotiated until the end of your term.
Variable rates are based on the prime rate. Most
variable programs offer anywhere from .4% - .75%
under the prime rate. Payments on a variable term
will usually be lower than that of the fixed terms,
with many people opting to use their extra money to
set their payments higher and pay down their
principal faster.
Interest rates that are based on the prime rate are
not guaranteed to stay the same and will change
whenever prime changes. Most lenders will offer you
the ability to lock into a fixed rate term without
penalty if prime begins to rise.
Is it better for
me to make bi weekly payments?
Absolutely! Making biweekly accelerated payments
can shave years off of the life of your mortgage .
Bi weekly accelerated payments occur every 2 weeks-
different than twice per month. When you make
payments every 2 weeks you will be making 2 extra
payments per year. These extra payments will be
applied directly to your principal, potentially
saving you thousands in interest.
How do you get
paid?
Mortgage brokers are paid by the financial
institution your mortgage is placed with. In 99% of
cases, our services are offered to you at NO CHARGE!
Do you have to own
a home to get a debt consolidation loan?
Mortgage Canada 123 deals only in mortgages
and not regular loans. Therefore, if you do not own
a home we cannot provide you with a debt
consolidation.
Can I refinance my
mortgage to purchase investments?
Absolutely! With interest rates at record lows
this has become a very popular thing to do. You can
refinance your home for just about any purpose.
Do you service all
of Canada?
Yes!
How long does it
take to get a reply?
Our goal at Canada Mortgage
Approved is to provide
prompt and knowledgeable service. You can expect a
reply within 24 hours or less. If you have not heard from us
after 1 business day, please call 416-822-0772.
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