Frequently asked questions
Renewing your mortgage is a simple process that could save you thousands of dollars in interest. Most banks will send out a renewal letter the month before your mortgage term is up, and will offer you the best rates they have available at that time. Heritage Lending Group has the ability to shop for, and hold rates for up to 120 days before your renewal date. The advantage is like having insurance. If mortgage rates increase between your rate hold and your renewal date, then you will get the lowest rate within that period.
Thinking of renovating your home? Want to consolidate debt? We make it easy to use the equity in your home to help achieve these goals. It’s a lower cost way to borrow allowing you to access additional funds by adding them on to your existing mortgage. With recent changes to the Canadian mortgage industry you can now access up to 80% of the appraised value of your home.
You’re in Complete Control!
You can use the money whenever you want, for whatever you want, including:
- Renovating your home
- Purchasing another property
- Buying a car or boat
- Paying for your child’s education
Consolidate and Save
You can refinance your current mortgage to consolidate your debt – including high interest credit card balances and loans – at a lower rate of interest. Just imagine how much you’ll save. Plus, you’ll enjoy the added convenience of having all your debt in one place, where you can pay it off each month.
Call us at 1-877-355-5750 and ask to speak with one of Area Lending Managers. Or simply enter your financial details into our Mortgage Calculator, and it will give you the amount of mortgage you would qualify for based on your current financial situation.
Each lender is different. However here are the general steps for applying for a mortgage.
- Application: We will ask you some question and will require a list of documents (ie: paystubs, income tax, existing mortgage statement, house insurance policy) that we will submit to the lender.
- Underwriting: We will shop the market to find the best possible product for you. The chosen lender will view your situation and send us an approval in writing.
- Satisfying Condition: Most lenders will require an appraisal or additional documents to finalize the process.
- Final Approval: Once the required document and appraisal is received by the lender, they will finalize the approval and set a closing date
- Closing: The lender will forward the document to a lawyer or title insurance company who will then schedule an appointment with you to sign the legal paperwork, arrange for payout of the existing mortgage and registration of the new mortgage. Any additional funds will be available at this point.
Americans already get the luxury of claiming their mortgage interest against their taxes and now there is a way for Canadians to do the same. The Canada Revenue Agency has a tax rule that states if you borrow money to invest in an income producing investment (like a dividend paying stock or investment property), you can deduct the annual interest paid on the investment loan from your income tax.
This mortgage strategy is complex and requires the help of a Financial Planner.
Yes, with today’s lending landscape you need a minimum down payment of 5% to purchase a home.
We have access to over 40 lenders. So if your credit is not up to par then we have the ability to shop the best deals for the lenders who specialize in less than perfect credit.
There is no difference in the process of applying for a mortgage on your principal residence, or a rental/investment property. However, the rental property has to generate enough income to service the monthly debt, and any shortfall you would have to qualify for. There are many options, and certain products that are specifically suited for your needs when purchasing a rental property. Keep in mind with the recent government changes, a 20% down payment is required to purchase a rental or investment property.