Mortgage Tips 1


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  1. There is no break up fee for residential mortgages, a mortgage broker can charged a break up fee if it is a commercial mortgage.

  2. The normal mortgage brokerage fee is between 2% to 4%, and the lender fee is between 1% to 3%, it will consider as expensive if it is over this range, ie : the mortgage broker in Case Study A is definitely charging an excessive mortgage brokerage fee ( close to 15%).

  3. No mortgage brokerage fee can be paid in cash, therefore, the mortgage broker in Case Study A did not follow the guideline of a mortgage broker.

  4. Most of the mortgage brokers are monitored and controlled by the Canadian Institute of Mortgage Brokers and Lenders.

  5. There are four levels of financial institutions that a mortgage broker can submit their mortgage deals to:
    1. Chartered Banks, Schedule A Banks.
    2. Schedule B Banks and some Trust companies.
    3. Small Trust companies and Finance companies.
    4. Private lenders.

  6. What is “Beacon Score” on the Credit Bureau?

    “Beacon Score” is very essential to a credit application, most financial institutions are basing their credit decision on this “Beacon Score”.

  7. What affected this “ Beacon Score” on the Credit Bureau?

    “Beacon Score” is affected by the number of credit enquiries, the credit rating of the applicant’s existing credit facilities, any judgements or derogatory credit information.

  8. Is it true that the higher the number the better for this “Beacon Score”?

    Absolutely, the highest number that Angela, the Money Lady has seen is 870 & the lowest number is 375. Some financial institutions are not interested to proceed with the credit application if the “ Beacon Score” falls below 600.

  9. How can the public improve this “ Beacon Score”?

    The best way to improve this “ Beacon Score” is to use your credit facilities regularly, ie : your credit cards, and paid out the whole balance off on or before due date of the statement.

    The best way to improve your “ Beacon Score” is to use a mortgage broker to shop for the best rates and the best products for you, as the mortgage broker uses “ One Credit Enquiry” versus several “ Credit Enquiries” when you shop directly with different financial institutions. The number of “ Credit Enquiries” can directly reduces your number on your “ Beacon Score”.

  10. What is “Credit Rating”?

    Credit rating on your Credit Bureau is ranging from R1 to R9, R1 is A-1 rating & R9 is pretty close to “ Bankruptcy”.

Testimonials

"Angela exceeded all my expectations of a Mortgage Consultant. She is extremely professional and sees her responsibility as one of providing service that is exceptional..." -- Lincoln E.C Greenidge    Click here to view full testimonial


"What 2 things would have improved the experience for you?"
"I can't think of anything, it was an all around positive experience even reflecting upon it a year later. In my overall house purchasing experience (first purchase by the way), the one bad thing that sticks in my mind is that my Building Inspector missed some big things. I wish I asked Angela to recommend someone for me. I greatly appreciated the time she took to calculate all of the monthly expenses I'd encounter." --- Robert Hoffmann


"Friendly. Engaging answers to problems. Angela has the right approach to customer care. I wish her well and all the successes. I have referred [Angela] and will refer her to people when they come up." --- Ray Bou

 


Click here for Mortgage Tips 2 : First Time Homebuyers