Posted on: 01-06-05 22:42:09
Quote:
Orginally posted by jammy
dear mr. chopra,
we are new immigrants and want to get mortage for condo.
how is it here? is it like india where the builder helps u with loans?
and i hear we wld not be able to secure mortgage as we dont have a credit history.
do we approach a condo builder first or a mortgage company first?
and what can we do to ensure that we get a mortgage without having to pay 20 or something percent downpayment. and also without having to pay anything to a broker.
excuse me if i sound very uneducated but i think i am on these amtters.
ur help wld be appreciated
jammy
Hi Jammy,
It is really difficult to get a good mortgage in Canada without an established credit rating and or stable job or income. However, every case is different. I would suggest you to please call me for FREE CONSULTATION (without obligation) so that answers related to your specific situations could be found out.
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Pramod Chopra
Senior Mortgage Consultant
Mortgage Alliance Company of Canada
Dear Mr Pramod,
1.Can you tell me if RRSP loans from AGF Trust show up on the credit bureau?
2. Do other non-registered investment loans show up on the credit bureau?
3. Are mortgages reported to the credit bureau?
My parents say that upto 2 years ago, the mortgage and RRSP loans were not reported to the credit bureau. What is the current situation? I know credit cards and line of credits are reported, but please fill me in on the above
Thanks
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reporter
Quote:
Orginally posted by LSD
Dear Mr Pramod,
1.Can you tell me if RRSP loans from AGF Trust show up on the credit bureau?
2. Do other non-registered investment loans show up on the credit bureau?
3. Are mortgages reported to the credit bureau?
My parents say that upto 2 years ago, the mortgage and RRSP loans were not reported to the credit bureau. What is the current situation? I know credit cards and line of credits are reported, but please fill me in on the above
Thanks
Reporting on Credit bureau depends on the policy of the institute as well. Some would like to report while others may chose not to. However, as a general rule most of the loans be it RRSP or Non registered are reported on the credit bureau by the loan grantor.
The items below are generally reported on the credit bureau:
1. Consumer loans (either from Home Depot, Brick, Future Shop, Teletime etc.)
2. Credit cards.
3. Student loan (OSAP or otherwise)
4. Personal loans and personal lines of credit
5. Secured loans (car loans etc.) and secured lines of credit.
6. RRSP loans and other non registered investment loans etc.
7. If you stand as a guarantor for some one for any loan, line of credit and some times even for a guarantor for mortgage.
8. Consumer credit cards (Sears, Zellers, Bay, Canadian Tire etc.)
9. Any item or lien reported to collection agencies for want of payment
These items are generally not reported on the credit bureau:
1. Telephone bills ( Bell, Rogers, Fido, Sprint etc.)
2. Hydro bill/utility bills
3. Mortgage
4. Rent payments
5. Property tax payments
These lists are only indicative and there could be some other types of transactions which may or may not be reported to credit bureau by the loans grantor depending on their policy or convenience. You can visit http://www.equifax.ca" rel="nofollow">LINK to get more information.
But one thing is sure, if you delay making payments from the first list, it would affect your credit score while if some payments are delayed from the 2nd list, you would end up paying penalty and interest but it would not have impact on your credit history, provided you have not delayed it for 4-5 months or more or not paid it at all when it could be sent to collection and then it would appear on your bureau.
I hope it helps.
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Pramod Chopra
Senior Mortgage Consultant
Mortgage Alliance Company of Canada
Thanks Pramod.
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reporter
Dear Mr Pramod.
Merci bien encore une fois pour vos renseignements.
Just thought I'd add another language to the site as all I ever see is English plus a few phrases in certain people's vernacular.
I have a few more questions if you don't mind.
1. In certain ads I see people advertise that one can get as much as 107% of the mortgage.
2. In others I see upto 7 % cash back.
3. Other ads claim they will pay the closing costs, still others claim one can opt for a deferred 6 month plan on closing costs with OAC in brackets
like this:
Deferred closing cost up to 6 months (OAC).
Can you please clarify the above 3 points. Also what do closing costs comprise of and is there a general rule of thumb as to the amount?
Also is it better to go through a mortgage broker or direct to the banks. Many people tell me that things have shifted nowadays and that many people tend to go to brokers as they can fish around for the best fit for the client.
Even my parents tell me it is best to go to a broker now even though in their day they went straight to the bank.
Thanking you in advance
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reporter
Dear Mr. Pramod.
You may hesitate in replying to my last question as to whether brokers or bankers are better, so please feel free to let me know if you'd rather not say.
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reporter
Quote:
Orginally posted by LSD
Dear Mr Pramod.
Merci bien encore une fois pour vos renseignements.
Just thought I'd add another language to the site as all I ever see is English plus a few phrases in certain people's vernacular.
I have a few more questions if you don't mind.
1. In certain ads I see people advertise that one can get as much as 107% of the mortgage.
2. In others I see upto 7 % cash back.
3. Other ads claim they will pay the closing costs, still others claim one can opt for a deferred 6 month plan on closing costs with OAC in brackets
like this:
Deferred closing cost up to 6 months (OAC).
Can you please clarify the above 3 points. Also what do closing costs comprise of and is there a general rule of thumb as to the amount?
Also is it better to go through a mortgage broker or direct to the banks. Many people tell me that things have shifted nowadays and that many people tend to go to brokers as they can fish around for the best fit for the client.
Even my parents tell me it is best to go to a broker now even though in their day they went straight to the bank.
Thanking you in advance
Hi LSD,
First of all my apologies for late reply as I presently am quite busy because of the hot housing market. Any ways, to answer your questions:
1. Some people advertise 107% finance and this means that the person do not have to put any thing down from their sources and the lenders would pay the 'insurance fee' themselves and add it in to the mortgage and also would pay you some cash back which you can use for closing costs. Looks good but you end up paying much higher 'insurance premium' and you do not get the 'best discounted' rates. Further you have to have a very good credit and qualify based on your income. This type of mortgage is not for every one. This is benefitial for those people who do not have down payment but can get a house and would not mind paying thousands of dollars extra in interest over the term of the mortgage.
2. This also works on the same principal. Two sides of the same coin.
3. This claim of paying closing costs is done by the Real Estate Agents mostly (as they get a good commission and would not mind sharing some) and not by the mortgage brokers ( who do not get paid that handsomely in comparison to Real Estate brokers). The claim for deferring closing cost is also mostly done by Real Estate Agents in order to garner the business because the closings costs could be a sizable amount ( closing costs are any where between 1.5% to 1.75% of the cost of the house being purchased) and by deferring them the Realtor is helping them to pay down the same after 6 months or in installments. Of course, nothing is free and has some strings attached (like fine prints) and you have to have a good credit and income source in order for the Realtor to give you this facility.
Now the most important question: 'Wheather to use a Bank or a mortgage broker'. Its your choice but like an Insurance agent a mortgage broker does the shop around from more than 20 lenders and get you the best product suited to your needs. You do not have to pay any fees for his advice and services (the lender pays the mortgage broker a finder fee) and you get the product you need in the comfort of your own home. To clarify a bit more I would give you certain points below and you can make a decision yourself:
Why Use A Mortgage Broker?
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A mortgage broker is an independent real estate financing professional who specializes in the origination of residential and/or commercial mortgages.
Mortgage brokers have the ability to obtain the best possible mortgage for your situation by shopping all approved lenders. Since the broker works with many different national lenders they are not forced to recommend one set of loan programs to you but can seek out many different options that are offered. Brokers do the shopping for you. When you apply for a loan with a mortgage broker you are effectively applying for a loan with all the lenders the mortgage broker is dealing with.
Mortgage brokers obtain rates at wholesale. It costs no more to do business with a mortgage broker. Mortgage brokers work on a contingency basis. They are not compensated until the loan closes. ( In some cases where a client does not qualify for a “prime” mortgage, such as a client with credit issues, a fee may be charged which is paid on closing)
When working with a mortgage broker only one credit report is used. If you were to apply to multiple lending institutions for a mortgage, each lender would do a credit check. This may lower your credit score. A lower credit score could mean you may not qualify for the best interest rate possible with any lender.
A mortgage broker deals exclusively with mortgages. By combining professional expertise with access to many different lenders and hundreds of loan products, a broker provides consumers the most efficient and cost-effective method of offering home financing options while still providing individualized attention tailored to the consumer`s needs and wants.
A mortgage broker represents you in obtaining financing that best fits your specific financial goals.
I hope I have answered your questions. However, should you have any more questions or need claification you can email me (its more convenient for me) or call me at 416-560-6951 for a 'no obligation' meeting or advice.
Good Luck
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Pramod Chopra
Senior Mortgage Consultant
Mortgage Alliance Company of Canada
