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 Canquest Mortgage, 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.
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 0.25% - 0.50% 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.
The other difference is the payout penalty on a fixed rate is 3 month interest penalty or Interest rate differential whichever is the greater. This is on with all A lenders. On a variable rate the payout penalty is usually 3 month interest.
When you are dealing with some Alternative lenders the variable rate mortgage the penalty is 5 months on the 1st year, 4 months on the 2nd year and 3 months on the 3rd, 4th and 5 year. On the fixed rate is is based on the bond rate not posted rate.
Is it better for me to make bi-weekly payments?
Absolutely! Making bi-weekly 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.
Who pays for my services?
Mortgage agents and Mortgage brokers get paid the financial institution that finances your mortgage. We offer our services to you at no charge!
When you request a 2nd mortgage or a private mortgage or commercial mortgage there will be a fee added to your mortgage to cover the lender, broker and legal etc.
Do you have to own a home to get a debt consolidation loan?
Yes! Canquest Mortgage deals only in mortgages and not regular loans. Therefore, if you do not own a home we cannot provide you with a debt consolidation.
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 but some lenders have a cap on how much equity you can take out at one time.
Do you service all of Canada?
How long does it take to get a reply?
Our goal at Canquest Mortgage 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 403-242-4392 or contact us.
What is the difference between a Collateral Mortgage and a Standard Mortgage charge?
Collateral Mortgages: The amount registered on title is usually more than you received at the time you took out your mortgage. The lender registered 100% - 125% of the value of your property. The reason why the lenders do this is to promote the benefit that is would be more cost effective for you not having to register a new charge each time your request money for renovations, debt consolidation, vacations and property investments.
There is a down side to a Collateral Mortgage being registered:
1) When you need to take out that equity that you have already paid down you have to requalify for the entire mortgage. Any products you have with the existing lender falls under this mortgage charge, i.e. visa cards, line of credits etc. This makes it difficult to refinance if they will not combine your outstanding indebtedness into one. You would not be able to place a 2ndcharge with another lender behind this 1st mortgage charge.
2) At the time of renewal it gives you limited negotiating power for the best rate with the lender. You are unable to transfer your existing mortgage to another lender because you cannot transfer Collateral mortgages. Then if you decide to move to another institution, you will have to start all over again paying a new mortgage registration fee and legal fees.
3) At the time of payout out your mortgage you may have to pay any other outstanding line of credits, charge cards with the lender who has registered this type of mortgage.
Standard Mortgages: The amount registered on title is your mortgage amount that you have received at the time you did your mortgage. The lenders only have the mortgage amount not any other products under this registration.
1) This allows you to take out equity by way of a 2nd mortgage, home equity line of credit (heloc) or private finance if need be. The maximum equity for refinancing is up to 80% depending on the property and you as a client.