FAQs

First-time Mortgage FAQ's

To avoid adding unwanted stress in obtaining your very first mortgage, read the following frequently asked questions. This valuable information will not only answer some question you may have about mortgage brokers, but may also make your first home purchase a money-saving experience

What is required to obtain a first mortgage?
What can I use for a down payment?
What costs are involved in obtaining a mortgage?
How long does it take to complete a mortgage transaction?
Can I get pre-approved before I find the home I want to purchase?
How much can I qualify for?
What is CMHC?
Who does CENTUM Pacific Mortgages Inc. work for?
What is the purpose of a mortgage broker?
How can a mortgage broker get a better rate than my own bank?
Are there extra costs or hidden fees when using a mortgage broker?
What if I have had poor credit or have been discharged from bankruptcy within the last 3 years? Can I apply for a mortgage?

What is required to obtain a first Mortgage?

In most cases:

• Full-time employment or stable income
• Proof of income
• Good credit rating
• Verifiable down-payment
• Filling out a Mortgage Application

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What can I use for a down payment?

In most cases:

• Registered Retirement Savings Plan

RRSP's may be used as a down payment up to a maximum amount of 20,000 and is not subject to income tax if repaid within a specific time period.

• Gift from immediate family
• Accumulated savings
• Sale of existing home
• Sweat equity

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What costs are involved in obtaining a mortgage?

Costs incurred are:

• Legal costs (Usually between $600 - $1000)
• Insurance on the property and mortgage applicant
• In some cases an appraisal is requested

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How long does it take to complete a mortgage transaction?

If all information requested by the lender (i.e. Income verification, down payment verification and property details) is given to the broker in a timely matter than the transaction can be completed in as little as 2 weeks.

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Can I get pre-approved before I find the home I want to purchase?

Yes. Our lenders offer pre approvals from 60 days to 120 days. When it comes to new construction many lenders will extend that pre approval time to fit the construction schedule. This will allow you to hold a great interest rate while you shop for or build a new home.

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How much can I qualify for?

Qualifying guidelines vary depending on the lenders criteria and products available. To find out exactly what you can qualify for, please submit your application for a pre-approval.

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What is CMHC?

Canada Mortgage and Housing Corporation is a federally owned and operated institution that evaluates the client and property to allow the borrower to purchase a home with a lower down payment requirement. This corporation insures the mortgage on behalf of the bank, through a premium added to your mortgage. This way the banks are obligated to provide a mortgage for those with less than a 20% down payment.

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Who does CENTUM Pacific Mortgages Inc. work for?

We only work for you. We are not affiliated with any one single bank or lender; thus allowing us to shop around for the best mortgage rates in Canada.

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What is the purpose of a mortgage broker?

We specialize in mortgages and only deal with lenders who can compete against the local branches for better rates, terms and service. Our only job is to find our clients the absolute best mortgage product to fit their needs.

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How can a mortgage broker get a better rate than my own bank?

The mortgage lenders that we use do not have local branches in each city or town, they have no large overhead and are in the business of lending money for mortgages only. This, combined with their large volumes, allows them to discount the rates far better than your own bank can provide.

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Are there any extra costs or hidden fees when I use a mortgage broker?

There are absolutely no hidden fees. Any costs related to arranging a mortgage are fully disclosed. Any costs incurred would be the same as if you went through a bank. We are here to earn your business today and in the future!

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What if I have had poor credit or have been discharged from bankruptcy within the last 3 years? Can I apply for a mortgage?

Yes you can! Most conventional banking institutions put restrictions on who they lend money to for a mortgage, but we have access to resources to shop for financing regardless of any credit situation.

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