We answer your frequently asked questions!
At Multi-Prêts Hypothèques, we want to offer you the best services and make all the steps related to your mortgage as simple as possible.
Browse through our frequently asked questions!
What are the mortgage solutions for a self-employed person?
As a self-employed person, you need to provide some additional proof and documentation to obtain a mortgage. However, your situation may be a little more complicated.
However, this does not prevent you from accessing financing, since various financial institutions offer mortgage solutions and mortgage loan insurance adapted to your reality.
You can count on the support of a Multi-Prêts broker to find the best mortgage options for your project, no matter how complex your file is!
How much money do you need for a down payment in Canada?
The amount of your down payment depends primarily on the purchase price of your property and its type.
For example, if the home you are buying sold for less than $500,000, you will need a down payment of at least 5% of the sale price.
In the case of a duplex where you would not be living, this should be a minimum of 20%.
Note, however, that certain incentives and the Homebuyer’s Plan can help you accumulate the required amount if you are a first-time home buyer.
Should I take a fixed or variable mortgage rate?
The fixed mortgage rate does not change for the entire term and allows for constant payments, while the variable rate follows the fluctuations (increases and decreases) of the key interest rate.
The choice of mortgage rate depends mainly on what your budget allows and your risk tolerance. While the variable rate is generally lower, an increase in the rate could have an impact on your finances.
Count on your Multi-Prêts mortgage broker to help you make the best decision for your situation!
How to get the best mortgage rate?
To find the lowest rate, it is important to do some research and comparison shopping to identify the options that are most advantageous to you, such as the variable rate or closed mortgage.
You should also open your horizons and store around for your rate with several financial institutions. At Multi-Prêts, we analyze all these elements for you and compare mortgage rates with our numerous partners, some of which are not accessible except through a broker.
We also take advantage of our volume discounts to help you save more!
What is my borrowing capacity for the purchase of a house?
Your borrowing capacity depends on several factors, such as your financial data (household income), your down payment, the mortgage interest rate, your monthly expenses (including those estimated for your future home) and the repayment period.
Our mortgage payment calculator can help you get an idea of this information, but only the mortgage pre-approval will give you an accurate picture of your borrowing capacity and the properties you may be interested in. Fill out our pre-approval form now!
Closing costs: what are they and how much will you pay?
Closing costs must be part of your home buying budget.
These are various legal and administrative fees that must be paid during or after the closing date of your purchase. Examples include transfer taxes (Welcome Tax), loan insurance premium taxes, notary fees and the cost of a certificate of location. Lenders consider 1.5% of the purchase price as closing costs.
At Multi-Prêts, we help you determine which closing costs apply to your situation so that you can fit them into your budget.
What is a line of credit?
A home equity line of credit is a financing solution that uses your property as collateral. It allows you to obtain a certain percentage of the market value of your home.
You are then free to use this money as you see fit to carry out your projects and pay for various expenses. Its very low interest rate makes it a particularly relevant option, whose repayments can be easier than with other types of credit.
What is the term?
The term is the period of time during which you must pay off your mortgage according to specific conditions that you have chosen. Once the term has expired, whether it is open or closed, a new contract must be signed in order to review your terms.
The entire repayment period of your mortgage may consist of several terms, the length of which you can determine (often from 6 months to 5 years). Be aware that the open term usually offers more flexibility than the closed term in terms of your repayments.
What is the amortization period?
The amortization period is the time required to pay off your mortgage in full. The amortization period is a maximum of 25 years if your mortgage is insured and 30 years if it is not. At equal interest rates, a longer amortization period means a greater amount of interest paid.
To determine the ideal repayment period for your financial situation and understand how it affects your payments, use our calculator or consult one of our mortgage brokers!
What is mortgage insurance?
Mortgage default insurance is mandatory for all buyers who purchase a home with less than 20% down payment. It is available at specific institutions and can be paid for at once or added to your mortgage.
It is designed to protect your lender in the event that you fail to make all or part of your payments. Our mortgage brokers can help you estimate how much this insurance will cost you to purchase your home.
Get your Free and personalized estimate !
Our mortgage brokers work with over 25 financial partners to get you the best offers with the best rates and conditions! All this in less than 24 hours.