Here are few mortgage facts that will be useful to know if you’re 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.
- Most lenders will require at least a 5% down payment.
- You are required to have mortgage loan insurance if your down payment is 20% or less. 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.
- For a guaranteed interest rate for a specified period of time (30 to 90 days), go to a lender in the initial stages of your home search. This way you will have a guaranteed interest rate, even if the interest rate rises.
- 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 OR try these other calculators from your favourite bank: