FAQ

FAQ

DO YOU HAVE ANY QUESTIONS?

We're here to answer them.

A mortgage is a loan that you take out to buy a property. The mortgage amount is based on the value of the property purchased minus the down payment made to acquire it.

THE PAYMENTS

The most common term for paying off a mortgage is 25 years. However, if you can afford it, you can choose a shorter term to pay it off. At your convenience, you can choose a shorter term to pay off your mortgage.

  • Monthly payments (12 per year)
  • Bi-monthly payments (24 per year)
  • Bi-weekly payments (26 per year)
  • Weekly payments (52 per year)

In addition, if your situation permits, you can make accelerated payments. This will help you save money and pay off your debt faster.

A person’s credit rating is a measure of his or her ability to use credit products responsibly. This rating is obtained by Equifax and TransUnion, the two credit bureaus in Canada. The higher your score, the better the credit options, offers and products you have access to, including your mortgage.

How do I get a good score?

  • Avoid applying to creditors for more credit.
  • Limit the opening of new accounts, especially if they are for the same type of credit (e.g. several credit cards).
  • Pay your accounts before the due date. Even a small delay leaves its mark.
  • Keep your credit card and line of credit balances low (ideally at 35% or less of the authorized balance).
  • Accounts (credit cards/line of credit/personal loans) that have been open for a long time are more “paying” for your score.
  • Keep your address and work stable.
  • Have an emergency fund for unexpected expenses and in case of job loss or reduced income.

Step One

Open an account at a financial institution and make a savings amount each month – for your down payment, for example. This will show some stability in terms of how diligently you put money aside. A paying credit behaviour.

Step Two

Build up a credit history. The starting point is as simple as always paying your rent and utility bills (electricity, heating, telephone, mobile, internet, cable and others) on time. By doing so, you will build a good payment history, which will benefit your credit rating. Your payment history over the past 12 months will certainly be considered in the credit assessment.

Step Three

Demonstrate your ability to manage your debts. For example, you can take out small loans at your financial institution to prove that you can repay your debts as agreed. You can also get a credit card to show that you are diligent in paying off the balance owing on time. The idea is to build up a history of transactions that shows you are rigorous in managing your debts.

The sooner you start, the faster your history grows and becomes a good indicator of your credit.

Traditional source options

  • Traditional source options
  • Savings in a banking institution (including inheritance)
  • Withdrawal from an RRSP
  • Non-RRSP investments (stocks, bonds, TFSAs)
  • Home Buyers’ Plan (HBP) that allows each borrower to withdraw up to $25,000 from an RRSP tax-free (subject to certain repayment terms).
  • Non-refundable donation from a relative (parent, brother or sister)
  • Proceeds from the sale of a property (net value acquired)
  • Loan secured by a confirmed asset (unencumbered land, net value of a first property pledged as security for the purchase of a second)
  • Capital outlay grant (non-repayable amount provided by a federal, provincial or municipal agency)
  • Refinancing a property

Non-traditional source options

  • Donation or repayable loan from a relative (other than father, mother, brother or sister) or a friend
  • Personal loan

Debt ratios are percentages based on formulas that are linked to your income and expenses.  They are used to assess your ability to repay your mortgage.

There are two types of debt ratios: the gross debt service ratio and the total debt service ratio.

Gross Debt Service Ratio (GDS)

This ratio is used to determine the percentage that your occupancy costs (your annual expenses to live in your principal residence) represent compared to your annual income.

It includes occupancy costs:

  • Your monthly payments;
  • property taxes;
  • school taxes;
  • annual heating costs;
  • 50% of the annual condo fees (if applicable).

For an insured mortgage loan, i.e. a loan with a down payment of less than 20% of the purchase value of the property, this ratio must not exceed a maximum limit of between 32 and 39%, depending on the financial institutions.

LEASING OR BUYING?

Here are a few points to help you decide.

You own your property

You can transform it according to your tastes, lifestyle and aspirations.

  • Renovation of the interior or exterior
  • Enlargement
  • Addition of ecological equipment (heat pump, geothermal system or other)
  • Landscaping
  • Construction of a terrace
  • Installation of a swimming pool

Having a property gives you more privacy.

Being a homeowner saves you from having to leave your home because your landlord wants to take over your home for a family member.

Your property is an investment

  • It grows in value over the years.
  • It allows you to build an estate.
  • It offers you tax advantages.
  • What’s more, you’ll enjoy it throughout your life as a resident. Your rent is an expense. Period.

Your first property can be a lever

It can be your starting point towards the property of your dreams – small happiness will become big – or any other project you wish to realize in the future.

You can use the equity in your property as leverage to

  • Realize a life project
  • Investing in investments
  • Buying a second home
  • Get a larger property
  • much more!

Vous cherchez une institution ou un professionnel?

Consultez notre page annuaire.

Cette page pourra vous aider. Elle contient de nombreux liens, pour communiquer avec différentes institutions financières, assurances, services de villes, et bien plus, sans compter qu’il y a de la documentation qui pourrait vous intéresser. Mettez là dans vos signets, elle vous sera certainement très utile.

Terme

La période pour laquelle les modalités de l’entente hypothécaire sont en vigueur. Le terme est normalement de 6 mois à 5 ans.

TAUX CONVERTIBLE

Il permet à l’emprunteur de changer son taux variable vers un taux fixe en cours de terme.

TAUX FIXE

Le taux et les versements resteront les mêmes pour la durée du terme.

TAUX VARIABLE

Le taux et les versements fluctuent en fonction des hausses ou baisses du taux directeur.

POURQUOI CHOISIR MULTI-PRÊTS?

Voici plusieurs bonnes raisons de nous faire confiance.

LA NOTORIÉTÉ

Chef de file en courtage hypothécaire depuis plus de 30 ans, la réputation de Multi-Prêts Hypothèques n’est plus à faire. Nous avons plus de 6 000 spécialistes hypothécaires, dont 400 au Québec.

POUVOIR DE NÉGOCIATION

En matière d’hypothèque, Multi-Prêts a le plus grand pouvoir de négociation au Québec. Aucune institution financière ne peut surpasser ça à elle seule.

DU CHOIX, DES ÉCONOMIES

Vous aimerez certainement économiser plus! Votre courtier Multi-Prêts travaille dans votre seul intérêt. La preuve, c’est qu’il ne se limite pas à vous offrir les produits d’une seule institution financière, mais bien les produits d’une vingtaine d’entre elles. Votre banque sera toujours limitée à ne vous offrir que ses seuls produits.

CLIENTÈLE SATISFAITE

Nous sommes fiers d’avoir servis plus de 120 000 clients au Canada en 2015, dont 15 000 au Québec. 95% de nos clients se déclarent prêts à recommander nos services à leurs proches.