Here are few mortgage facts that will be useful to know for anyone looking to buy a home and needing a mortgage.

With less than a 20% down payment your mortgage will be considered “high ratio” and you will be required to have loan insurance. The fee for this insurance is typically added to your mortgage principal and included in your monthly payments.
  • Lenders will not typically lend you 100% of the purchase price for a home; most will require at least a 5% down payment.

    Mortgage Facts

    Ensure you are able to comfortably support your mortgage!

  • With less than a 20% down payment your mortgage will be considered “high ratio” and you will be required to have loan insurance. The fee for this insurance is typically added to your mortgage principal and included in your monthly payments.
  • If you are unsure about how much you can afford, you can speak to a lender to find out. You can talk to a lender at any point throughout your search for a new home.
  • By going to a lender in the initial stages of your home search you can also get a guaranteed interest rate or a specified period of time (30 to 90 days). This means that even if the interest rate rises over that time period, you are guaranteed a lower rate.
  • Lenders consider many things when looking at how much they are willing to lend you. Things such as credit history/rating, income, employment, savings, debt, typical expenses (such as property taxes), etc.

Shop around for the best rates and terms for your mortgage. Negotiate a mortgage that suits you.

Want to learn more? Try Scotiabank’s mortgage calculator ORtry these other calculators from your favourite bank: