Mortgage Products

Are you new to Canada?  Learn how to make the dream of owning your own home in Canada a reality.

If you are new to Canada and purchasing your first home, it can be a daunting process.

  • What type of citizenship do I need?
  • How much down payment do I need?
  • What type of credit history is acceptable and what is necessary?
  • What price range do I qualify for?
  • How do I go about getting pre-qualified for a mortgage so I can go shopping with confidence?
  • What documentation do I need to complete the mortgage approval process?
  • What steps are involved in the process of applying for a mortgage?
  • How do I get the best rates for a mortgage in the greater Edmonton area including Devon and Leduc?

As Licensed Mortgage Associates in Edmonton, we can assist you with all of these questions and more.

Call (780) 991-1600 to speak to Dennis Ward or Lorraine Revet,  Mortgage Associates with Advantage Mortgage.

Edmonton Mortgage Brokers answers questions about home purchases for new Canadians

Buying your first home can be overwhelming, but we help to make the experience an easy and enjoyable one.  We understand that you may have many questions you need answers to and guidance to help you through this process.

What type of citizenship do I need and how long do I have to be in Canada to qualify?

In Canada, you can qualify for the New To Canada Programs offered by our insurers with either Landed Immigrant Status or Permanent Resident Status.  Typically you have to be in Canada for a minimum of three months with a history of full-time employment for 3 months. Corporate relocations can be exempt from this requirement. You can qualify for the New To Canada Program for up to 5 years from moving to Canada.

How much down payment do I need and what can be the source of this money?

With Permanent Residence Status, you can qualify for a mortgage with a minimum of 5% down payment. This can come from your own resources or from non-traditional resources, such as a gifted down payment, borrowed money down, or corporate subsidies.

With Landed Immigrant Status, you can qualify with a minimum of 10% down payment with a minimum of 5% coming from your own resources and the additional 5% from non-traditional resources such as gifted down payment or corporate subsidies.

What type of credit history do I need to qualify?

Acceptable types of credit history are:

  • international credit reports (Equifax or Transunion) demonstrating a strong credit profile
  • two (2) alternative sources of credit demonstrating timely payments (no arrears) for the past 12 months

The two alternative sources required are:

  • rental payment history
  • (1) another alternative source (hydro/utilities, telephone, cable, cell phone and auto insurance)

Some other sources of optional credit history can be:

  • a letter of reference from a recognized financial institution
  • (6) months of bank statements from the primary account if international credit reports are not available

How do I get pre-qualified for a mortgage and what is the benefit?

A mortgage associate with Advantage Mortgage will collect all the required documentation to truly qualify you based on your current financial situation and let you know the TRUE BUDGET that you would qualify for based on the government of Canada's new mortgage qualification rules. This allows you to go home shopping with the confidence that you are in your proper price range. This will also allow us to know if there will be any issues with the final approval and completion of the sales process, helping to protect your deposit.

What type of employment do I need to qualify for a mortgage?

Mortgage lenders and insurers each have different guidelines on what type and term of employment will qualify for their programs. The New to Canada Programs requires a minimum of (3) months full-time employment. There are exceptions for corporate transfers.  With access to a large selection of lenders, Advantage Mortgage has options to find solutions for your employment situations.  Call us today at (780) 991-1600 and we'll help you better understand your options for securing a mortgage in Edmonton.

Financing for Vacation or Secondary Homes

 

Advantage Mortgage can show you how to make the dream of owning a vacation home or second property come true.

Purchasing your dream vacation property or second home can be a daunting process. Here are just a few questions you might have:

  • How much down payment do I need?
  • What price range do I qualify for?
  • How do I get pre-qualified so I can go shopping with confidence
  • What documentation do I need to apply for a mortgage on a vacation home?
  • What steps are involved from start to finish?
  • How do I get the best rates?
  • What types of vacation properties or secondary homes are allowed by the lenders?

Our Edmonton mortgage brokers have solutions to help you through the process of purchasing your dream getaway or secondary home to make the experience enjoyable.

You likely have questions about financing for vacation properties and secondary homes. Luckily, we have answers to the most common questions we've answered for our clients over the years.

If your question is not listed, please feel free to request a free, no-obligation consultation at any time.

Do I need Money down to Purchase a vacation property?

In Canada, there is a minimum 5% down needed to purchase a secondary or vacation home.
This can come from your own resources or in some instances from a gifted down payment.

What types of properties qualify for this Program?

There are two classifications of properties:

  • Type A year-round Properties
  • Type B seasonal properties

How do I get pre-qualified and what is the Benefit?

A mortgage associate will collect all the required documentation to truly qualify you based on your current financial situation and let you know the TRUE BUDGET that you would qualify for.

This allows you to go home shopping with the confidence that you are in your proper price range.

This will also allow us to know if there will be any issues with the final approval and completion of the sales process, helping to protect your deposit.

How do I determine the Budget for my Vacation or Secondary Home?

We will assess your current income levels and financial situation to confirm what budget you qualify for based on the lender and insurer guidelines for debt servicing.

This will help ensure a smooth purchase and closing process.

Financing for Acreage and Country Properties in Alberta

You've found the perfect acreage property, and now you need to know what options you have to secure financing.  Luckily, there are solutions to help you through the process and make the experience an easy and enjoyable one.

First, there are numerous questions you may have about purchasing an acreage in Alberta. We have the answers and can guide help you through this process.

Here are the most common questions we answer about purchasing an acreage or country property in Alberta.  If your question is not listed, please feel free to contact us at any time. Don't forget, our assistance is completely free!

How much money do I need for a down payment to purchase an acreage property?

In Canada, there is a minimum of 5% down needed to purchase an acreage property.

That being said, certain things that may affect the amount of down payment needed are:

  • size of the property (number of acres)
  • the type of house
  • location of the property in regards to the nearest populated city
  • types of buildings on the property
  • the intended use of the property

What Size of Acreage Properties Qualify for financing through a Mortgage Brokerage?

Lenders vary on the number of acres a property can include. Most will go to 5 acres, but some lenders will go to a maximum of 160 acres. Depending on the lender, they will also allow only a particular portion of the land to be included in the appraised value of the property to determine the loan-to-value (LTV) of the deal.

Larger properties may require a more substantial down payment to qualify for mortgage financing.

What types of homes can be on the property?

Most lenders have the same rules on types of homes that qualify for financing on acreage properties in comparison to urban dwellings.

One type of home that does have restrictions is modular or manufactured homes. A home on an acreage property must be permanently affixed to the property with set guidelines and have age restrictions.

There are solutions for these types of properties available through our network of mortgage lenders and may require a more substantial down payment.

What types of Outbuildings are allowed?

Typically garages, personal-use shops and sheds are allowed on the property.

Additional buildings above a house and garage may not be used in the appraisal value of the property to determine the loan-to-value of the financing.  This may require a larger down payment to qualify for the funding.

Buildings that are used for business use, livestock, or farming may make the property ineligible, as it now falls into a different zoning usage.  For business, agriculture, or farming type properties, a different type of financing is utilized.

What type of Zoning is allowed?

Acreage properties in Alberta must be zoned as residential, Ag residential, and in some cases, mixed zoning is allowed.  Farming and business zoning is usually not allowed.

What additional Requirements are there?

Two of the most common additional requirements for an acreage property is:

  • the source of potable water
  • the type of sewage system in place

Acceptable water sources include wells and cistern.  Or, if available, municipal water.  There may be a requirement to get water testing done or to supply a current water evaluation on the property as a condition of finance.

Acceptable sewage systems include holding tanks, sewage fields, septic tanks, or in some cases, lagoons.  Again there may be testing or current certification of the sewage system as a condition of finance.

How close does the Property have to be to an Urban Center?

Simply stated, every lender will have different rules regarding how close to an urban centre property has to be to qualify.

Most financing lenders will have a "distance vs. urban centre population size ratio" guide that they utilize, while some lenders will finance anywhere in Alberta.

Having access to multiple lenders allows us options in placing your mortgage with an acceptable lender that will suit your needs and situation.

Are there any additional factors that may affect the purchase of an acreage?

One of the most common additional factors you may see when purchasing a property in Alberta is the presence of an oilfield component. This may include an oil well, pump jacks, pipeline, or pipeline access directly on the Property.  Different Lenders have different rules in place for these types of properties.

Is there any Difference in Qualifying for an Acreage Property?

Qualifying for an acreage or rural property is very similar to qualifying for an urban property.
Income requirements and debt servicing ratios are the same. However, you cannot use income generated by the property such as farming income to qualify as this is a different type of zoning and would not qualify you for financing.

There are additional qualifying factors for the property as stated above that may affect the amount of down payment needed to fit within the acceptable limits of loan-to-value (LTV) of the financing.

For more information on applying for financing for your acreage property in the Edmonton area, contact Dennis or Lorraine now at (780) 991-1600 for personalized service, all free of charge to you!

MORTGAGE RENEWALS

ARE YOU CERTAIN YOU ARE GETTING THE BEST MORTGAGE AT RENEWAL TIME?

You have completed your current Mortgage Term and it is time to Renew. Your Lender sends you a Renewal Contract and gives you options to pick to renew with them. Are you getting the Best Rates Available??
Are there any conditions on your Current Mortgage that may penalize you in the Next Term if your situation changes and you want to Upgrade or Sell? Have your Financial Goals changed since you Acquired your Current Mortgage?  There are many things to consider before you sign that Renewal.

Here are some of the Factors you should consider before signing that Renewal.

How do I ensure I am getting the Best Rates Available for my new Term?

Your current Lender may not Offer you the best rates they have on your Renewal or even offer the Best Rates Available. There may be other Lenders with Better Rates Available at your Renewal Time. A Mortgage Associate has Access to Many Lenders and can place your Mortgage to Ensure you get the Best Rate Available that meets your needs.

How can Using a Mortgage Broker Save me Money and Help me Pay off my Mortgage Sooner?

If you are able to secure a Lower Interest Rate you will save money on your Mortgage Repayment in the Next Term. Also, you have the option of shortening the Amortization Term on your next term allowing you to pay off your Mortgage years earlier. Both of these will help you save money in Interest Repayment over the term of the Mortgage.
We will also try to find you a Lender with the Best Prepayment options where you can pay a Percentage of the Prinicpal every Year without Penalty, saving you Interest. Some Lenders also allow you to increase the Monthly Payment which again will save you Interest over the Term.

How do I ensure that if my Situation Changes and I need to Sell or Upgrade, I will be paying the least amount in Penalties if I have to get out of my Current Mortgage Term?

If you need to terminate your Current Mortgage Term there are two major ways Banks or Lenders calculate the Penalty that you will Pay. The first is a Three Month Interest Penalty.
The Second is a IRD ( Interest Rate Differential) Penalty Calculation. Many Lenders calculate this from their current Posted Interest rate and Not the Discounted Rate that you signed your current Term at. This Difference is used in a Calculation with the Remaining Term on your Mortgage to Calcualte your Penalty. They will then Charge the Larger of the two Types of Penalties. A Mortgage Professional can help find Lenders that do not use this type of Difference Calculation and it is based off of your actual Signed Rate and not the higher Posted Rate.
They can also give you options of Varialble Rates or Open Terms if your Situation going forward would benefit from that type of Mortgage.

What if I am thinking of Upgrading, but not for a few Years?  Are there options to assist me to minimize penalties? Yes, Mortgages with Portability Options.

When renewing and you know a possible Upgrade or Move is in your Future, having a Mortgage Professional make sure that your new Mortgage is Portable will help you save money in fees.
Portability means you can move your Mortgage to another Property, minimizing Penalties, and if needed, allowing you to Port the current Mortgage Amount and Add additional funds to the Mortgage amount if you are Upgrading to a more Expensive Property.

Your time is Valuable. Let a Mortgage Associate assist you in Acquiring The Best Mortgage for you to save you Time and Stress.

We have access to many Lenders and will shop around to get you not only the Best Rates for your Situation, but the Best Terms for Purchase such as Pre payment and Portability. We will also help you decide if Fixed and Variable Rates are best for you, as well as, Open or Closed Terms and what amortization Term best suits your Goals.

What does having a Mortgage Associate cost to assist me at Renewal Time?

Mortgage Associates are paid by the Lenders. They are also paid on the Amount of the Mortgage and not the Interest Rate, so they will look out for your best interests. Our goal is always to provide the Best service Possible, as we rely on Referals and repeat Customers to grow our Business.

REFINANCING

ACCESSING THE EQUITY IN YOUR HOME FOR INVESTMENTS OR FINANCIAL RESTRUCTURING

You have worked hard to build equity in your Primary Investment, your home. But now your Financial Goals have changed and you want to use some of that Equity for Investment,  to restructure your Financial Situation, pay off debt and save money in Interest Charges. How do you proceed and what are the Guidelines of how much equity you can access? Is the Time right during the Term of your Mortgage? How do you qualify for a Refinance in today's Lending Environment and Economic Situation?

Here are some common Questions that you may have with a Refinance

How do I ensure I am getting the Best Rates Available for my new Mortgage?

With access to a Large Selection of Lenders we can shop around and find you the Best Rate for your new Mortgage that best meets your needs and Financial Situation.

How much of the Equity in my Home can I Access?

Lenders will go to 80% Loan to Value on a Refinance Mortgage. That means you can access up to 80 % of the Value of your Home for Investment or Debt Consolidation. Typically an Appraisal will be required to get an accurate Value for your Home in the Current Market Conditions.

How do I ensure that if my Situation Changes and I need to Sell or Upgrade, I will be paying the least amount in Penalties if I have to get out of my New Mortgage Term?

If you need to terminate your Current Mortgage Term there are two major ways Banks or Lenders calculate the Penalty that you will Pay. The first is a Three Month Interest Penalty.
The Second is a IRD ( Interest Rate Differential) Penalty Calculation. Many Lenders calculate this from their current Posted Interest rate and Not the Discounted Rate that you signed your current Term at. This Difference is used in a Calculation with the Remaining Term on your Mortgage to Calcualte your Penalty. They will then Charge the Larger of the two Types of Penalties. A Mortgage Professional can help find Lenders that do not use this type of Difference Calculation and it is based off of your actual Signed Rate and not the higher Posted Rate.
They can also give you options of Varialble Rates or Open Terms if your Situation going forward would benefit from that type of Mortgage.

What if I am thinking of Upgrading, but not for a few Years?  Are there options to assist me to minimize penalties? Yes, Mortgages with Portability Options.

When Refinancing and you know a possible Upgrade or Move is in your Future, having a Mortgage Professional make sure that your new Mortgage is Portable will help you save money in fees. Portability means you can move your Mortgage to another Property, minimizing Penalties, and if needed, allowing you to Port the current Mortgage Amount and Add additional funds to the Mortgage amount if you are Upgrading to a more Expensive Property. We can also adjust your Mortgage Term to Minimize any Penalties you may incur.

DEALING WITH PROPERTY SEPARATION IN BUSINESS OR DIVORCE

We are Separating.. How do we deal with our Home??

Dealing with Divorce or Partner Separation is difficult enough, but what happens to your home? Can one of the parties keep it and pay out the other Partner? Are you forced to sell and uproot your family? What are the steps and documentation needed? Who do you turn to for help?

Dealing with a Divorce or Partner Separation can be a daunting process. When a property is involved, what are your options as far as splitting up the equity and being able to secure another property to live in? Do you have to sell and uproot your family from their established lives and friends? What is the process and what documentation is needed to solve this issue? As Licensed Mortgage Associates, we can assist you through this process and help ensure that your best interests are being looked after.

There are Solutions and Options to help you through  these Stressful Times

There are many questions you may have and you need the answers and guidance to help you through this process. Here is a Top Ten List of the most Common Questions we are asked. If your question is not listed please feel free to Request a Free Private Consultation at any time.

Can one Partner buyout the other Partner?

Yes.. There are Spousal buyout programs available that allow one partner to finance up to 95% of the value of the home to allow Equity to be given to other partner.  This Program is also available to Partner Separation whether it be a Common-law Partnership or Partners such as siblings, Parental, or Non-Related Partners that have Purchased a property together and now want to split that Co-ownership.

How do we deal with joint debts in the relationship?

There are options where the joint debts can be paid out before the remaining equity is divided between the partners.

We are retired and neither would qualify for a Mortgage. What Now?

There are options to get equity out of the property without having to sell or obtain a New Mortgage in one of the Partners Names.

What do we need for Legal Documentation to show the terms of the separation?

Depending on the situation, (ie. Dependants or Support payments) will determine the type of documentation needed, such as Legal Separation agreements or Statutory Declarations. We can discuss your individual situation and help answer those questions.
Always get proper Legal Representation during a Separation or Divorce to ensure your best Interests are being looked after.

Does our Separation have to be Complete before we can proceed in dealing with our home?

Each individual situation will determine what the steps and documentation needed will be to proceed with the Process. We can advise you on these steps.

What is the process for getting the Second home and how do we qualify and know our budget?

We would assist you in knowing what your Budget is based on your situation, assist with Pre-Qualification so you are prepared to buy with confidence. We will work to get you the best Rates and Terms based on your individual Situation. We will also Advise you with the documentation needed to complete your purchase and answer any questions along the way.

Does it cost me to get Assistance?

No, it does not. Getting assistance and Guidance from a Mortgage Associate does not cost you any up front fees. We will discuss your situation and answer your questions regarding your individual situation.

When can I ask for assistance?

Even if you are not sure that you are separating and would like some advice or information, our Assistance is always available to answer any questions you may have about the process with no Obligation.

Talk about this portfolio piece--who you did it for and why, plus what the results were (potential customers love to hear about real-world results). Discuss any unique facets of the project--was it accomplished under an impossible deadline?--and show how your business went above and beyond to make the impossible happen.

Ready to find out more?

Let us answer any Questions you may have on the Mortgage Products available to you to Best meet your Needs.