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- How long does it take to get a reply?
- Where in Canada do you lend?
- Do you do commercial mortgages?
- Do you have to own a home to qualify for a debt consolidation loan?
- Does Verico pre-approve clients?
- Can I get a mortgage on a rental property?
- Is there a benefit to going with a bi-weekly payment?
- What is the difference between a co-signer and a guarantor?
- Do I have to take mortgage life insurance?
- Will Verico release my personal information to third parties?
- Is it possible to get a mortgage through Verico if I am not a Canadian Resident?
- I have a 5-year term with my mortgage what does this mean?
- At the end of the term of my mortgage is the lender obligated to renew my mortgage?
- Does a lender charge a renewal fee?
- Should I take a short-term mortgage or a long-term mortgage?
- What is amortization?
- What is a fixed rate mortgage?
- What is a variable interest rate mortgage?
- What can I do if I have variable interest rate mortgage and interest rates start to rise?
- What is an open mortgage?
- Is there ever a good time to break my closed mortgage and pay the prepayment penalties?
- Are there always penalties when I switch my mortgage to another lender?
- If I see a dramatic increase with mortgage interest rates should I immediately convert to fix mortgage?
- Is there cost to use a mortgage broker?
- Why use a mortgage broker?
- What is a high ratio or insured mortgage?
- When making a mortgage payment is it better to pay weekly, bi-weekly or monthly?
- Is it important to insure my mortgage with life insurance and disability insurance?
- If I have extra cash should I pay off my mortgage or buy a RRSPs?
- Does it make sense at my next mortgage renewal to increase my loan amount to buy RRSPs?
Answers below…
1. How long does it take to get a reply?
A: Usually bout one business days. If you haven’t heard from us by then, please call 403-247-9770
2. Where in Canada do you lend?
A: Everywhere; Verico is a national company.
3. Do you do commercial mortgages?
A: Yes, we have a commercial specialist on staff
4. Do you have to own a home to qualify for a debt consolidation loan?
A: Yes, please see example below to see how you can save thousand of dollars by debt consolidating.
| Current Situation Mortgage (@6%) Car Loan Credit Card/PLC Penalty to break mortgage Total |
Balance $160,000.00 $18,000.00 $15,000.00 $3,000.00 $196,000.00 |
Payment $1,204.00 $540.00 $450.00 $0.00 $2,014.00 |
| New Mortgage Mortgage (@4.95%) Car Loan PAID OFF Credit Card/PLC Penalty to break mortgage Total |
Balance $196,000.00 PAID OFF PAID OFF PAID OFF $196,000.00 |
Payment $1,134.00 1 1 1 $1,134.00 |
Total Savings Per Month: $2,014.00 – $1,134.00 = $880.00
5. Does Verico pre-approve clients?
A: Yes
6. Can I get a mortgage on a rental property?
A: Yes
7. Is there a benefit to going with a bi-weekly payment?
A: If you pay your mortgage every two weeks you will gain the benefit of an additional monthly payment each year. This extra payment allows you to pay off your mortgage faster and saves you money.
8. What is the difference between a co-signer and a guarantor?
A: A Co-signer is placed on the mortgage and is registered on the title. A Guarantor signs a document that personally guarantees the mortgage.
9. Do I have to take mortgage life insurance?
A: Mortgage life insurance is not mandatory however, it is highly recommend.
10. Will Verico release my personal information to third parties?
A: In order to process your request, the financial institutions will need certain information about you. We ensure your information is transmitted over a secure data stream and housed on a secure server. Your non-public information is not sold or released to any third-party marketing companies, nor is it used for any other purposes other than the services you request.
11. Is it possible to get a mortgage through Verico if I am not a Canadian Resident?
A: Yes, but certain conditions may apply.
12. I have a 5-year term with my mortgage what does this mean?
A: Every mortgage has a start date and an end date. The end date is referred to the maturity date. The duration between the end date and start date is the term of your mortgage. You can choose terms of just 6 months, 1, 2, 3, 4, 5, 7, 10 or even a 25-year term. At the end of the term you can either pay off your mortgage or switch it to another lending institution.
13. At the end of the term of my mortgage is the lender obligated to renew my mortgage?
A: No. Then lender is not under any obligation to renew your mortgage. It does not ‘automatically’ renew. In fact if you have ‘missed’ or been late with any payments the lender could use this as an excuse not to renew with you. A loss of a job or a divorce may be another reason. But, in truth, no excuse is necessary for the lender to call in your loan on renewal.
14. Does a lender charge a renewal fee?
A: Often a lender will attempt to charge a renewal fee or tempt you to renew without a fee if you sign within a certain ‘time offer’ at their posted rates. Please keep in mind that most major banks will waive this fee.
15. Should I take a short-term mortgage or a long-term mortgage?
A: The single biggest dilemma for Canadian mortgage borrowers has been whether or not to lock in to a long-term mortgage or short-term. History has shown that, overall, it has been financially beneficial to go short-term or variable.
16. What is amortization?
A: Your amortization is the total length of time it will take you to pay off your mortgage. The length of time to pay off your mortgage will be determined by the interest charge, the loan amount and the amount of extra payments you make.
17. What is a fixed rate mortgage?
A: The interest rate charged is a fixed amount and does not change during the term of your mortgage.
18. What is a variable interest rate mortgage?
A: A variable rate mortgage is a mortgage that fluctuates up and down with the prime-lending rate.
19. What can I do if I have variable interest rate mortgage and interest rates start to rise?
A: Most variable mortgages give you the right to change to a fixed rate at any time. If you think the interest rise is not just a short-term fluctuation but will be a long-term trend you have the option of converting your mortgage into a fixed term.
20. What is an open mortgage?
A: An open mortgage gives you the most flexibility in making extra payments towards your mortgage principal and even lets you pay off your mortgage entirely whenever you wish to. If you have uncertainty in your life such as a serious illness, a looming separation or a possible job transfer to another city it is better to have an open mortgage. This way if you ‘have to move’ you can pay off your mortgage without nay penalty. This could save you thousands in prepayment penalties. Warning! Not all-open mortgages are created equal. Check with a mortgage broker to see just how ‘open’ your mortgage is!
21. Is there ever a good time to break my closed mortgage and pay the prepayment penalties?
A: Yes! A good rule of thumb is whenever making a change will result in a 1% interest rate saving. This is so popular that it is even has a name – the ‘break and run’ strategy in the lending industry. The improved rate change will absorb any prepayment penalty.
22. Are there always penalties when I switch my mortgage to another lender?
A: No. If you switch from one lender to another at your renewal date there will not be any penalties whatsoever. If you switch before your maturity or renewal date there may be a penalty. If you have an open mortgage there probably will not be any charge. If you have a closed mortgage you will most likely have a cost. It is important to consult with a mortgage broker so that you can determine whether or not a ‘break and run’ strategy will work for you
23. If I see a dramatic increase with mortgage interest rates should I immediately convert to fix mortgage?
A: Absolutely not. We need to ask why an interest rate change is occurring and whether or not it appears to be a long-term trend or a short term ‘blip’. For example, it is not uncommon to see a dramatic interest jump due to a constitutional referendum or a fear of a heated economy. These increase are usually short lived.
24. Is there cost to use a mortgage Specialist?
A: For residential mortgages there is no fee paid by the client. The lender compensates the broker for placing the mortgage with them. For commercial properties a mortgage broker will charge fees but will always put this in writing before any work is commenced.
25. Why use a mortgage Specialist?
A: As a mortgage specialist, I can provide financing that is customized to your needs. Any one lender has a limited number of loan programs they can offer. In contrast, a mortgage specialist, who represents dozens of lenders and virtually hundreds of loan programs, can customize a program to the borrower’s specific needs and not be limited to the underwriting guidelines of one particular lender.
My advice is impartial and based on what is in your best interest. No pressure and no ulterior motives.
Shopping for mortgages can be time consuming and frustrating if you do it yourself. I will often step in to negotiate terms and conditions that are more favorable to you than those you would receive by working directly with the lender.
26. What is a high ratio or insured mortgage?
A: Whenever you need a mortgage loan that is greater than 80.0% LTV it is considered a high ratio or insured mortgage. If you are a first time home buyer then you can borrow up to 95% value and only need to come up with a 5 percent minimum down payment. The Canada Mortgage and Housing Corporation (CMHC) insures the lender in case you default on our loan. You must pay for this insurance premium, up front or you can add it to the mortgage.
27. When making a mortgage payment is it better to pay weekly, bi-weekly or monthly?
A: It is not really the frequency that makes real difference but how much you pay per year. If you pay weekly or bi-weekly you make one extra payment per year. This is the reason you pay off your mortgage sooner. If you were to pay yearly and make one extra monthly payment on your anniversary date you will have your mortgage paid off in the same amount of time as weekly and bi-weekly.
28. Is it important to insure my mortgage with life insurance and disability insurance?
A: Yes, many Canadians have no or inefficient amount of insurance if a family tragedy should occur Life and disability will be offered to you when you obtain mortgage financing.
29. If I have extra cash should I pay off my mortgage or buy a RRSPs?
A: The answer to this questions depends on the potential return on the RRSP and the interest rate you are paying on your mortgage. With mortgage rates at historical lows in most cases it is more beneficial to buy RRSPs.
30. Does it make sense at my next mortgage renewal to increase my loan amount to buy RRSPs?
A: Absolutely. If you are in a high tax bracket and have not taken advantage of our RRSP room it is an excellent opportunity for you to buy a large amount of RRSPs and obtain a large tax refund.
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