Important Questions to Ask Your Mortgage Broker

Most mortgage brokers are experts that work hard finding the right mortgage solution and simplifying the mortgage financing process. Brokers complete all the paperwork and keep up-to-date on industry issues and changes that could affect the decision you make about which mortgage solution is right for you.

In my experience, mortgage brokers offer a high level of integrity, customer service and industry knowledge. And generally speaking, broker services are provided free of charge to clients. Despite all of this I believe it's important to ask your mortgage broker a few key questions to help ensure you're dealing with the right one.

Some important questions to ask your Mortgage Broker

• How long have you been a mortgage broker?

• Can I get references from clients you have worked with?

• How do mortgage brokers make money?

• What is your experience with this type of transaction?

• What is the process for closing my mortgage?

• How quickly can it be done?

• How long has this mortgage broker company been in business?

• What lenders do you work with and why?

CMHC Now Offers 100% Financing on Rental Units

CMHC will now allow real estate investors to purchase rental properties with NOTHING down. This is an innovative product launch by CMHC. Previously, the most generous programs were those offered by Genworth and AIG with 10% down. According to CMHC there is no limit to the number of rental properties you may own under their zero down program.

For people with great credit and provable income but have trouble coming up with the down payment required this could be a great way to to start building your real estate investment holdings.

One drawback to the 100% financing rental program is a higher CMHC premium. CMHC charges an insurance premium of 7.25% on a 100% financing but should be fully tax deductible. The premium decreases with the more you put down.

Another draw back is that right now it's difficult to find a lender that is offering the 100% financing for rental units. It's not unusual for banks to take a bit of time to adopt new lending programs.

Don't hesitate to contact us for more details about your mortgage needs. We can be reached at 1-888-665-1344 or 604-764-6336. We are a mortgage broker located in Canada, BC helping people purchase property.