FAQ – Mortgage

Here are 15 of the most frequently asked questions about mortgage :

How can I lower my amortization period and my interest fees?

If you choose a shorter amortization period, you will pay off your mortgage faster and save a lot of money. To reduce your amortization period even more, you can increase the payment frequency to bi-weekly or even weekly accelerated, increase the amount of your mortgage payments, make additional payments on capital or double your payments. Use Multi-Prêts’ mortgage calculator to simulate various scenarios and compare the savings and gains based on various reimbursements set-up.

What is a cash back?

Cash back mortgage, or discount is a product whereas the lender gives back a certain amount of money that could be useful for renovation projects, closing fees, buying furniture or appliances or pay off existing debts. If you opt for this product, you could even make an anticipated payment on the capital of your mortgage, potentially saving thousands of dollars in interests.

How can I save on my mortgage?

The best way is to simply obtain the best possible interest rate and also to reduce your interest costs by repaying your capital faster. Here are some worthwhile strategies:

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  • Increase your payment frequencies. Ask us how much you could save in interest by making accelerated weekly or bi-weekly payments.
  • Take advantage of lump-sum payments
  • Increase your payments
  • Take advantage of the double up option

Each year, at the anniversary date of your loan, you can usually repay up to 20% (could be higher with some financial institutions) of the original borrowed amount without having to pay any commissions or penalties.

Once a year, you can also increase by as much as 20% your regular payment amount without commissions or penalties.

Variable rate or fixed rate mortgage? Which option is best for me?

Determining which one is better is as simple as looking at your ability to handle risk and your payment capacity. Selecting a variable rate mortgage product is the best choice, as the rate is generally more advantageous than for fixed rate mortgage products. However, you must understand that with variable rates, your monthly payment amount might change. If interest rates go down, more of the payment goes to principal; this is a privilege not available with a fixed rate product that guarantees rate and payment for the duration of the term (from 6 months to 10 years). On the other hand, if there is a rate increase, you will immediately pay more interest and if your periodic repayment amount is not sufficient to cover the capital and interest payment due, you will have to increase your payment in order to keep the same amortization period chosen initially.

What are the advantages of consolidating my debts through a mortgage refinancing?

You could save a considerable amount of money by consolidating all you high interest loans and credit cards with your mortgage. Your mortgage interest rate is usually lower than the sum of your other loans. You will have peace of mind knowing you will only have one payment to make.

Can I get approved on a mortgage for buying and/or renovating a home?

Of course, upon approval, you can get a mortgage for purchasing and/or renovating a home.

What is the CMHC?

The Canadian Mortgage and Housing Corporation (CMHC) is a federally owned corporation created in 1945. Through its mortgage loan insurance programs, the CMHC has been protecting the banks against any payment default by adding a compulsory insurance premium to certain mortgage loans which present particular risk.

Who do the Multi-Prêts mortgage consultant work for?

The Multi-Prêts mortgage consultants only work for you! Since Multi-Prêts is not affiliated with any bank or lender, its consultants are truly independent and provide you with the best rates available amongst 20 financial institutions in Quebec only.

How long has Multi-Prêts been in business?

Founded in Montreal in 1981, Multi-Prêts Mortgage Broker is the leading mortgage brokerage firm in Quebec.

How does Multi-Prets protect my personal information when I submit an online request?

All online requests entrusted to us with personal data are protected by a security system. It means that all communication between you and Multi-Prêts is strictly private and secure. It is however your own responsibility to ensure that you local system is adequately protected using appropriate anti-virus, anti-spam and anti-spying software.

What is the Multi-Prêts privacy policy?

The privacy of our clients is our priority. We only collect the information that will be useful to our lenders to appropriately assess your financial situation. Only the lenders we deal with have access to your personal information. The information you entrust to us is deemed confidential and will not be disclosed without your prior consent.

Why can a mortgage broker get a better interest rate than I can at my own bank?

Multi-Prêts’ mortgage consultants negotiate on your behalf with over 20 established financial institutions to get you the best rates at the best possible conditions according to your particular needs. Since Multi-Prets generates a high volume of transactions with different lenders, we consequently obtain rate rebates from which you benefit directly.

What are the fees charged by a mortgage broker?

The services of a mortgage broker are totally free on residential mortgages. It is the financial institution that pays a finder’s fee for every mortgage loan request transmitted to the institution and that is ultimately closed at the notary’s office. The financial institutions actually bear the cost of these fees. As such, there are no hidden fees to the consumer.

How much can I borrow?

To determine what price range you can target for your home, we could help you assess the state of your personal finances and determine your borrowing capacity. Nevertheless, it is important for you to know the highest mortgage payment you can afford. How can I use my RRSP to buy my first home.

Can I get pre-approved for a loan even before I have found the property I wish to buy?

Of course. Our lenders offer pre-approved mortgages with interest rates guaranteed for a period of 60 to 180 days. Besides, in the case of a new construction, many lenders will also grant an appropriate delay considering the planned work schedule. There is a definite advantage in getting a pre-approval: you know exactly how much your can borrow and can shop without worries. You have guaranteed yourself an excellent interest rate and a protection from interest rate increases while you are looking for your new home or building one.

If I have further questions which are not dealt with in the Frequently Asked Questions pages, who should I contact?

For any question dealing with the services being offered by Multi-Prets, please communicate with us at 514.388.7888 or use our online request for information form.