FAQ

A home inspection is a visual examination of the property to determine theoverall condition of the home. In the process, the inspector should be checking all major components (roofs, ceilings, walls, floors, foundations, crawl spaces, attics, retaining walls, etc.) and systems (electrical, heating, plumbing, drainage, exterior weather proofing, etc.). The results of the inspection should be provided to the purchaser in written form, in detail, generally within 24 hours of the inspection.

A minimum down payment of 5% is requiredto purchase a home, subject to certain maximum price restrictions. In addition to the down payment, you must also be able to show that you can cover the applicable closing costs (i.e. legal fees and disbursements, appraisal fees and a survey certificate, where applicable). Mortgages with less than 20% down must have mortgage loan insurance provided by either CMHC or GE.

Either from your accountant or at https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/a-copy-your-notice-assessment-reassessment.html

For many Canadians, the T4 is the key piece of paper they need for their taxes. Officially known as T4 Statement of Remuneration Paid, the slip provides mostof the important information you need to complete your return. You are required to report all your T4s in the year you earned the income.

These allow you to more aggressively pay down your mortgage. You can increase your monthly payments, which allows you to pay more on your mortgage each month or you can pay as a lump sum, meaning put an additional sum of money toward the mortgage principal

A conventional mortgage is usually one where the down payment is equal to 20% or more of the purchase price, a loan to value of or less than 80%, and does not normally require mortgage loan insurance.

Most Canadian lenders offer collateral mortgages, which allow you to borrow money from your home throughout the mortgage term. You don’t have to refinance your mortgage to take advantage of this, and there are no legal fees. You just have to maintain at least 20% equity in your home to borrow up to 80% of its value. Collateral mortgages can’t be transferred from one lender to the next, even at the end of your term. If you did want to switch lenders, you’d need to hire a real estate lawyer to get out of your contract. Therefore, besure you ask about collateral mortgages; if you might switch lenders in a few years, this isn’t for you.

Yes. Subject to credit approval, when you move from one home to another in Canada, you may be able to take your existing mortgage balance with you, at the same interest rate, for the remaining term. Alternatively, you may be able to combine your existing mortgage balance with additional financing at a blended rate to finance a new home (applicable to fixed rate mortgages only). No interest penalty is charged.

Most lenders now offer insured mortgages for both new and resale homes with lower down payment requirements than conventional mortgages -as low as 5%. Low down payment mortgages must be insured by CMHC or Genworth to cover potential default of payment.

A closed mortgage has a restriction on the amount that you can prepay on your mortgage. If you pay off your mortgage balance or pay too much during the term, you could incur penalties. An open mortgage can be repaid at any time without penalties.

A variable mortgage is based on the prime rate set by the Bank of Canada. When the prime rate increases, so does your variable interest rate. When the prime rate decreases, your variable follows! A lot of people have benefited from getting a variable mortgage, but you have to understand that it is a gamble. You do not want to get caught when the prime rates rise! A fixed mortgage is the opposite. You will lock in for a set amount of time (5 years for example) and your interest rate will not change for that period.