This site is for mortgages and loans on property located in British Columbia, Canada only. We are a Canadian corporation, we have no connection, association or affiliation with any bank, lender or corporation in the United States. Non residents of Canada may be eligible only if they are purchasing or own property in Canada.

F.A.Q. & GLOSSARY

  F.A.Q.

How can I tell whether or not I qualify for a Bank Rate Mortgage? In many cases we can tell you right on the telephone! Here are some "Red Flags" that may prevent you from qualifying: You are self employed and cannot provide 3 full years of financial statements. You have been on your job for less than 1 year, and have a record of job instability. You have a poor or marginal credit rating. You do not have your down payment.   Who are private lenders?     In most cases private lenders are retired people who are looking for a better rate of return than is available to them at a bank. They are willing to fund mortgages for individuals who, for one reason or another, may not qualify at the Bank. Private mortgage lenders base their rates and fees (bonuses) on the area, type of property, degree of risk they perceive, and estimated costs of administration (collection).   Are there hidden costs?     NO, we will tell you up front about any and all costs, e.g. appraisals, C.M.H.C. fees, legal fees, broker/lender fees etc. There may be situations where we are unable to quote exact fees, e.g. legal fees, this is due primarily to continually increasing government charges, costs for land title registration and other services beyond our control.   What happens if I can't pay?     The important thing to remember if you have a payment problem is to work with the lender. Contact the lender immediately when you have a problem. They will always try to work things out with you. NO lender wants to foreclose. There are times when it may be best for you to list and sell your property rather than to lose it through foreclosure. In most cases an arrangement or a refinance can be completed to assist you.   Can I still sell my home, if I have a mortgage on it?     YES, the sale is normally handled by a Realtor first, then a lawyer or notary. When the sale completes the lawyer/notary simply calls the lender to ascertain the balance owing and then pays out the mortgage and you receive a cheque for the difference.   GLOSSARY   MORTGAGE - A conveyance of a property to a creditor, as security for payment of a debt. This security is redeemable on payment in full of the debt.   MORTGAGEE - is the lender.   MORTGAGOR - is the borrower.   P.I.T. - Principal, interest and taxes.   SURVEY - a survey done by an accredited surveyor is required on new construction and some existing homes. This determines whether the building is located within the property lines and complies with setbacks and local building bylaws.   MORTGAGE TERM - set by you and the lender, the term, usually 5 years, spells the end of the mortgage at which time the mortgage must be renewed or refinanced. Lenders usually renew at the end of the term but rates can be changed.   AMORTIZATION PERIOD - The am or amortization period is the time over which equal payments would totally pay off your mortgage. This statement assumes that the interest rate stays constant. The normal am period is 25 years. Lower the am period and your payments increase, but you will save money by paying your mortgage off faster.   APPRAISED VALUE - An opinion as to the market value of your home.   C.M.H.C.  - Canada Mortgage and Housing Company. They provide default insurance for the lenders benefit, where the down payment is less than 25% of the purchase price.   LOAN TO VALUE - is one of the yardsticks a lender uses to measure the risk involved in lending you money. For example: Your home is worth $100,000, you owe $50,000, the loan to value is 50%. If you want to borrow another $15,000 on a 2nd mortgage, the 2nd mortgage lenders loan to value will be 65% ($50,000 1st, $15,000 2nd = Total $65,000).   BALLOON BALANCE - This is the amount owing when the term of your mortgage is due.   EQUITY - Equity is the difference between what your asset (in this case your home) is worth on to days market and what you owe on that asset. The amount owing will include the 1st mortgage, any other (2nd) mortgages, and any liens or judgments that may be registered.   TITLE INSURANCE - an insurance policy written by a title insurance company that protects the property owner against loss in case the title is imperfect.   COMMITMENT - A definite agreement by a lender to make a loan to a particular borrower on a particular property. Basically this will authorize all terms and conditions of the loan. This commitment will have an expiry date. The lender must hold the funds at the rate promised until the borrower decides to proceed or cancel or until the expiry date passes..   G.D.S. - Gross Debt Service Ratio, is the total of any mortgage payments, property taxes and heating cost divided by the gross income of the borrower(s).   T.D.S. - Total Debt Service Ratio, is gross debt service, (G.D.S.), plus payments on other debts such as bank loans, finance company loans, credit card payments, alimony, etc. divided by the gross income of the borrower(s).   MORTGAGE LIFE INSURANCE - A form of reducing term insurance recommended for the borrower. In the event of the death of the borrower or one of the co-borrowers, the insurance pays the balance owing on the mortgage. The intent is to protect survivors from losing their home   HI-RATIO MORTGAGE - Mortgage loans in excess of 75% of the loan amount divided by the lower of the sales price or appraised value.   PENALTY - A sum of money paid to a lender for the privilege of prepaying a mortgage in part or in full, outside the privileges set out in the terms of the mortgage.   PORTABLE MORTGAGE - Upon the consent of the lender, the mortgagor may transfer the balance of their existing mortgage to a new property being mortgaged.   Creative People = Creative Solutions

To Reduce Your Stress!! Contact:
Advanta Mortgage Corp.

FOR FASTER SERVICE

Phone:  250-769-1214

(Low broker/Lender fee may apply)
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