FAQ

Who qualifies for a mortgage?

Anyone can qualify for a mortgage as long as some basic criteria is met. Steady income, stable employment history, good credit rating and total net worth are some of the factors that the lenders take into consideration when approving a mortgage. Each lender can be slightly different therefore it is a good idea to contact us so that we can help you through the process.

How Can I pay off my mortgage before the maturity date?

Most lenders offer many options for prepayment of mortgages. Before you get the mortgage, discuss your intent for paying off the mortgage before the maturity date so that you can get the mortgage with the best options for this scenario. You can also pay down the mortgage at renewal time. There are also options with different mortgage solutions and lenders for scheduling additional payments, doubling the payments or even annual payments that can help you pay down your mortgage.

Should I get a long-term or short-term mortgage?

Getting a long-term or a short-term mortgage depends on several factors. Some things to consider are the economic conditions, whether there is a chance that rates might fluctuate, your personal financial situation, your risk tolerance and many more aspects. This can be a confusing thing to decide therefore it is best to speak with a mortgage expert who can help you navigate through the decision making process that is best suited to your individual needs

Who is the beneficiary of my mortgage?

You can designate anyone to be the beneficiary of your mortgage, provided they meet the lender’s criteria and can make the appropriate payments if and when required.

Should I renew my mortgage before or after it matures (is paid off in full)?

Most lenders send out renewal notices at least 120 days prior to the renewal of the mortgage term. They will also offer you guaranteed rates at this time for your peace of mind. However, it’s a good idea to compare and negotiate the rates at this point to get the best rate possible. If you are moving to a different financial institution, they will also give you their best rate to win your business. However, it is best to consult with a mortgage expert who can help you with the best rate and the fine print of your mortgage terms and conditions.

What is a down payment?

The down payment is the money that you have to provide when you are purchasing a property. These are your own funds that cannot be borrowed. All buyers need to have a percentage of the purchase price up front and the balance gets financed via a mortgage. The larger down payment you have, the smaller the mortgage will be and more the savings in the long run.

Can I use RRSPs to pay for a mortgage?

Most first time homebuyer’s can use the savings in their RRSP’s for a down payment. Each individual can withdraw up to $25,000. These funds are not taxed and do not count towards your income. You have to begin repaying this amount two years after the purchase of the home and you have 15 years to pay back the total amount. You can obtain more detailed information at www.cra.gc.ca or talk to one of the experts at JD Lending.