Question 1

Can We Make Changes To The Mortgage Application, Such As Length Of Term, Repayment Frequency, Etc., Once The Application Has Been Submitted?

Accepted Answer

Yes. Your ideal mortgage formula has probably already been created, but if you want to consider a change let’s review the possible benefits and implications.

Question 2

Is GST Paid On A Resale Home?

Accepted Answer

There is no GST unless the house has been renovated substantially, and then the tax is applied as if it were a new house.*

Question 3

What Is An IAD Or Interest Adjustment Date?

Accepted Answer

If your transaction is due to close in the middle of the month, but your regular mortgage payments are set for the start of the month, your first mortgage payment could be delayed for several weeks. To cover this, a date is set as the IAD and an amount is collected on closing to cover this Interest Adjustment Date period.

Question 4

How Much Of A Downpayment Will I Need?

Accepted Answer

The downpayment usually represents between 5-20% of the total price of the property.

Question 5

What Is A Rate Cap?

Accepted Answer

A rate cap locks in the maximum interest rate a client will receive for their mortgage. The rate cap is based on the rates at the time of application for the selected product, less any discretionary pricing if given.

Question 6

Can The Interest Rate Cap Be Extended?

Accepted Answer

No, the rate cap is set for the period chosen. If the rate cap expires, current rates will take effect.

Question 7

Is The Land Draw Deducted From The 1st Draw?

Accepted Answer

Yes, when a land draw is approved on a conventional mortgage the 1st draw is split into two portions (remember lands draws can be approved on conventional mortgages only).

Question 8

After The First Draw Can I Change The Terms And Conditions Of The Mortgage?

Accepted Answer

There are times when you can change your final mortgage terms after the first draw. You usually do not sign the final mortgage documents until the house is complete and therefore can make changes until that time.

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