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
1-866-509-1090 Ext 1.
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2.
Where in Canada do you lend?
A: Everywhere; Pro Link
Mortgage 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 |
Balance |
Payment |
|
Mortgage (@6%) |
$160,000.00 |
$1,204.00 |
|
Car Loan |
$18,000.00 |
$540.00 |
|
Credit Card/PLC |
$15,000.00 |
$450.00 |
|
Penalty to break
mortgage |
$3,000.00 |
$0.00 |
|
Total |
$196,000.00 |
$2,014.00 |
|
New
Mortgage |
Balance
|
Payment |
|
Mortgage (@4.95%) |
$196,000.00 |
$1,134.00 |
|
Car Loan |
PAID OFF |
|
|
Credit Card/PLC |
PAID OFF |
|
|
Penalty to break
mortgage |
PAID OFF |
|
|
Total |
$196,000.00 |
$1,134.00 |
Total Savings Per Month:
$2,014.00 - $1,134.00 = $880.00
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5.
Does Pro Link Mortgage 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.
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10. Will
Pro LinkMortgage 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 Pro
Link Mortgage 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.
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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. Often
when you first get a mortgage it is
amortized over 25 years. 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.
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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!
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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.
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24. Is
there cost to use a mortgage broker?
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 broker?
A: As a mortgage
broker, 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 broker, 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.
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26. What
is a high ratio or insured mortgage?
A: Whenever you need a
mortgage loan that is greater than
75.01% 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.
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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.
