We know you have a number of questions when it comes to mortgage financing. In fact, thousands of people, just like you, have those same questions. We have the answers.

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• There are two types of Mortgage Classifications:
  
  Conventional Mortgage (Uninsured)
  The mortgage amount does not exceed 80% of the property's value. The purchaser is supplying a minimum of 20% of the property's value for a down payment.
  
  Hi-Ratio Mortgage (Insured)
  The mortgage amount exceeds 80%, but not 95% of the property's value. The purchaser is supplying a minimum of 5% for a down payment. In these cases all lenders will require the mortgage to be insured (for default purposes) C.M.H.C./Genworth Financial Canada (formerly GE Mortgage Insurance)

• Canada Mortgage & Housing Corporation

• A government run program insuring mortgages under the National Housing Act. (Commonly known as N.H.A. Mortgages).

• If your down payment is less than 25% of the purchase price, an insurance premium on the mortgage amount is required (this premium may be added to the mortgage amount).
  
  C.M.H.C./Genworth Financial Canada also charges a premium based on the following loan to values:
  75-80% = 1.00%
  80.1-85% = 1.75%
  85.1-90% = 2.00%
  90.1-95% = 2.75%
  (up to a 25 yr. amortization)
  
  For Example:
  $100,000.00 Purchase Price
  $ 5,000.00 Down Payment
  ---------------------
  $ 95,000.00 Mortgage Required (95% LTV or Loan-to-Value)
  $ 2,612.50 Insurance Premium (2.75% of mortgage amount)
  ---------------------
  $ 97,612.50 Total Mortgage Amount

• The total of your principle, interest, taxes, heat, 1/2 condo fees, and payments cannot exceed 32% of your gross family income.

• The total of your G.D.S. payments plus any personal loans and outstanding credits card payments cannot exceed 40% of your gross family income.

• Length of time that your mortgage agreement covers & for which your interest rate is guaranteed (6 months -25 years)

• Actual number of years it takes to pay off the entire mortgage.

• You are required to provide a minimum of 5% of the purchase price of the home.

• Required by the lending institution to ensure the property is sufficient security for the mortgage advance. Typical charge is $175-$200 (plus G.S.T.). Completed by independent, accredited appraiser.

• A House Inspection must be completed by a Building Inspector. It is suggested to have one conducted if the home you are purchasing is older, or if newly constructed by a builder who is not under a warranty program. Typical charge is approximately $250.

• The Legal Fees includes Lawyers' fee for service (ranges from approximately $500-$700) plus any disbursements & G.S.T. required to register your mortgage, including Sheriffs Certificate, search on title etc. Typical cost for this is around $250-$350.

• This is a tax equal to 1% of the purchase price less $275.00 levied on every purchase and collected upon closing by the Lawyer.

• A Survey Certificate is required by the lending institution to ensure the house is situated on the lot within legal restrictions. Typical costs range from $600 to $900. This may be available from the previous owner so please ask!
  
  Title insurance is another option (check with your solicitor for more information).

• You will be responsible for paying the property taxes for the portion of the year which you own the property.

• You are responsible for arranging insurance on your new home in the event of fire or other damage.

• Life Insurance is available at your option through the mortgage lender to cover the amount of the mortgage in the event of the death of you or your spouse.

• Your Moving Costs are dependent on how far you are moving, how much you have, and who is helping you move.