FAQs

Frequently Asked Questions

The bank will forget about you the day after your loan is finalized. Indeed, there’s a good chance that every interaction you have with your bank will be at your initiative, on the day Rinat and Jacob calls you to let you know that the market has changed and how you should prepare for it. In most cases, banks are not equipped in terms of human resources or expertise to give strategic service. It’s not reasonable to expect that you will receive follow-up on your mortgage or be contacted on an ongoing basis by the bank to try to improve your mortgage’s ability to serve your financial goals. Furthermore, their ability to help you is limited to the programs their bank offers. Only an independent expert can prepare you to deal with the market and make sure you’re poised to take advantage when a window of opportunity presents itself.
Another feature that can save you money is your ability to reduce the penalty at any given time. Some lenders will let you pay 20% of the mortgage mortgage or 40%, depending on your timing, before moving to another lender. This way you’ll save 20% on your penalty. Some will restrict you to give a notice of 30 days or more, which is a big limit on your flexibility.
Our goal is to strategically manage your mortgage, maximizing your savings not just over the five year term, but over the twenty five to thirty year life of the loan. Every time a bank offers a promotion that affects you, or the market or your situation changes, we’ll invite you to check your options to save more money. Once each year, we’ll check in with you and see if your needs and priorities have changed, and if adjustments need to be made to your mortgage based on payment pressures, or changes in the rates in the market. Our aim is to prepare you for the rates change and adjust your payment according to the inflation rate, protecting you from unnecessary payment shock at the end of the term. Gradual adjustments will prepare you for the change in your monthly payment and cash flow.
Appraisal fees are usually in the range of $350 to $500, depending on location. Residential appraisals take 2-3 days while commercial appraisals may be $3000-$5000 and take a month to complete. Both are paid by you. In most cases, the insurer pays the appraisal for an insured mortgage.
You get to choose your lawyer or notary public and control the cost. It averages at $800-$1200 depending on the solicitor. You pay for it, and are most encouraged to look for a good deal. In some cases the lender limits you to use a solicitor in their list. They also have the right to veto your choice.
Inspection is not mandatory, but it’s highly recommended to include the inspection as one of your contract’s subjects (terms). An inspection will provide you with an extensive report on your property’s condition and major deficiencies if any exist. This info will be a significant factor in your decision to finalize your commitment and purchase the property. The average cost for a residential house is $500-$1000.
PTT (Property Transfer Tax) is paid by you, upon purchase, as part of your closing costs. It’s a big expense, calculated as a percentage of purchase prices. You may pay 10K+ for a house of 600K. Call us to hear about the exemption for first time buyers, for buyers who purchase a new developed property, as well as the special tax for foreign buyers in BC and Greater Toronto
Home insurance is a mandatory charge. In order to conclude the mortgage process, you’ll need to provide the lender and/or lawyer with existing home insurance (in case of refinance) or a new one (for a purchase). The cost varies with the location, age, size and type of the property as well as whether part of it is rented, serves as an office, etc.
For each client’s profile there is a different Best rate. For example, at a certain time the best rates that were offered to insured mortgages (less than 20% down payments) were significantly lower than those offered for regular mortgages. When calculating the insurance premium, the overall cost for regular mortgages was much lower than the insured, although the rate was much appealing. At Sneg Mortgage Team you’ll always get access to the best rate in your category.
If you’re working with a bank officer who is excellent at his or her job, there’s a good chance that he or she will be promoted to a senior position in a different branch, and if not, he or she might well part ways with your particular bank. In either case, it’s far from ideal for you. You’re either in the hands of a less experienced bank employee, and the personnel will change, or you’ll keep the same banker – but that means that the bank chose not to promote him or her. What does that mean for you?