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Christine Q Xu's Team at Mortgage Architects

Some lenders we negotiate:

 

Mortgage FAQs
1. How much will it cost me to get a mortgage with you?
2. What is the best mortgage to consider?
3. Does the amortization affect the amount of interest I pay?
4. What does mortgage loan insurance cost?
5. What are GDS and TDS?
6. What is the minimum down payment I can use?

How much will it cost me to get a mortgage with you?

For most residential mortgages I am compensated by the lending institution, the service is free to the client.

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What is the best mortgage to consider?

The best way to determine what mortgage will best suit you is to consult with experienced mortgage specialist. Short term and variable rate mortgages offer better rates, but longer terms provide the safety and comfort of a prolonged period of guaranteed payments.

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Does the amortization affect the amount of interest I pay?

The amortization has a dramatic effect on the interest paid on the loan over the length of the mortgage term. Consider the following example of a $200,000 mortgage at 6.0%:
  With a 25 year amortization the monthly payments are $1,279.61
  With a 20 year amortization the monthly payments are $1,424.38 - a savings in interest compared to 25 years of $42,032.60.
  With a 15 year amortization the monthly payments are $1,679.77 and the savings in interest compared to 25 years is $81,524.82.
  For insured deals, the maximum amortization is 25 years. For uninsured deals, some lenders will go up to 30 or even 35 years.

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How much does mortgage loan insurance cost?

The mortgage loan insurance premium is calculated as a percentage of the loan and is based on the size of the down payment in relation to the total purchase price. Most lenders nowadays allow amortization longer then 25 years. For each 5 years extension, another 0.20% will be added to the premium. Business for self applicants will pay a higher premium than the salaried applicant.
 
Loan-to-Value Ratio
Premium
Up to and including 80%
1.00%
80.01%-85%
1.75%
85.01%-90%
2.00%
90.01%-95%
2.75%
95.01%-100%
3.10%
 
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What are the GDS and TDS?

GDS means Gross Debt Service. The Gross Debt Service is the maximum percentage of your gross income allowed to pay the costs of carrying your home. This ratio combines your principal and interest mortgage payment, property taxes, heating and condo fees, if applicable. The allowable GDS ratio is 32% for most lenders.
TDS means Total Debt Service. The Total Debt Service is the maximum percentage of your gross income allowed to pay the costs of carrying your home, plus other debts. This ratio combines everything from the GDS as well as any other outstanding debt obligations (i.e. loans, credit card balances, lines of credit). The allowable TDS ratio is 40% for most lenders.

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What is the minimum down payment I can use?

Depends on your income, you may be able to apply for 100% mortgage. Down payments under 20% of the purchase price will be subject to mortgage insurance premiums.

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Christine Q Xu
Mortgage Broker
Mortgage Architects
Phone: 905-305-8499  Fax: 905-305-8982  Toll Free Fax: 1-866-908-6698
E-mail: inquiry@moneybroker.ca
Website: www.moneybroker.ca