Q. Why are your rates
so much lower than my bank?
Major institutions have a lot of money to lend, but they
also have a lot of expenses!
Overhead, salaries, benefits, desks, utilities, to name
a few.
At Canadian Mortgage Experts - Canada First, we work for you, and not for the
banks. We bring a great deal of business to each bank and
so are offered wholesale rather than retail interest rates.
Major institutions make their money on the profit margin
on the interest rates that are sold. This is why you need
to haggle for the lowest rate possible, and even when you
think you have won the battle, chances are, you have not.
Mortgage brokers are not paid based on the interest rate
sold, but rather on the mortgage amount. Therefore, you
are offered the lowest rate upfront.
Q. What is the difference between
a fixed rate and a variable rate?
Fixed rates remain unchanged for the entire term you
have selected. You will not need to worry about payment
changes, or market conditions. These rates are based on
the bond market and will not need to be renegotiated until
the end of your term.
Variable rates are based on the prime rate. Most variable
programs offer anywhere from .4% - .75% under the prime
rate. Payments on a variable term will usually be lower
than that of the fixed terms, with many people opting to
use their extra money to set their payments higher and pay
down their principal faster.
Interest rates that are based on the prime rate are not
guaranteed to stay the same and will change whenever prime
changes. Most lenders will offer you the ability to lock
into a fixed rate term without penalty if prime begins to
rise.
Q. Is it better for me to make
bi weekly payments?
Absolutely! Making biweekly accelerated payments can
shave years off of the life of your mortgage . Bi weekly
accelerated payments occur every 2 weeks- different than
twice per month. When you make payments every 2 weeks you
will be making 2 extra payments per year. These extra payments
will be applied directly to your principal, potentially
saving you thousands in interest.
Q. How do you get paid?
Mortgage brokers are paid by the financial institution
your mortgage is placed with. In 99% of cases, our services
are offered to you at NO CHARGE!
Q. Do you have to own a home
to get a debt consolidation loan?
Canadian Mortgage Experts - Canada First deals only in mortgages and not
regular loans. Therefore, if you do not own a home we cannot
provide you with a debt consolidation.
Q. Can I refinance my mortgage
to purchase investments?
Absolutely! With interest rates at record lows this has
become a very popular thing to do. You can refinance your
home for just about any purpose.
Q. Do you service all of Canada?
Yes!
Q. How long does it take to get
a reply?
Our goal at Canadian Mortgage Experts - Canada First is to provide prompt
and knowledgeable service. You can expect a reply with
2 hours. If you have not heard from us after 1 business
day, please call 403-294-0033.
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