What is the purpose of Mortgage Insurance?

Mortgage loan insurance is typically required by Lenders when homebuyers make a down payment of less than 20% of the purchase price (e.g. Borrowers who puts 5% to 19% downpayment). Borrowers who have less than 20% downpayment are perceived as higher risk; therefore to reduce the risk of mortgage default (or the Borrower not making their mortgage payments), mortgage default insurance coverage is added to the mortgage.

This insurance is available from CMHC, Genworth and Canada Guaranty. This insurance enables consumers to purchase homes with a minimum down payment of 5% with interest rates comparable to those with a 20% down payment.

To obtain mortgage loan insurance, Borrowers pay an insurance premium or an insurance cost. The premium can be paid in a single lump sum or it can be added to your mortgage and included in your monthly payments.

Mortgage loan insurance is not to be confused with mortgage life insurance which guarantees that your remaining mortgage at the time of your death will not be a burden to your loved ones.

Tagalog - What is the purpose of Mortgage Insurance?

Ang mortgage loan insurance po ay required po ng mga Lenders kung ang downpayment ninyo ay mas mababa sa 20%..example po kung between 5%-19% ang downpayment. Ang mga Borrowers po kasi na mababa sa 20% ang pang-down ay classified na higher risk…kaya po para mabawasan yung risk na hindi makabayad ang Borrower ng mortgage, kailangan po ng mortgage loan or mortgage default insurance. Ang insurance po na ito ay provided ng: CMCH,

Genworth at Canada Guaranty. Dahil meron kayo nito puwede na po kayong makabili kahit na 5% lang ang inyong pang-down at ang interes pa ninyo ay comparable doon sa merong 20% downpayment.Meron po kayong babayarang insurance premium pag kailangan ninyo ito.

Puwede pong isang bagsak or most of the time, dinadagdag po ito sa inyong mortgage and included sa inyong monthly payment. And mortgage loan insurance po ay hindi pareho sa mortgage LIFE insurance. And life insurance po ay ginagarantiya na ang inyong balanse sa inyong mortgage sa oras ng inyong pagkawala ay hindi magiging pabigat sa inyong mga mahal sa buhay.

When you pull my credit history will it affect my score?

When Banks pull a credit history your score will drop because banks offer other loans aside from mortgages like car loans, RRSP loans, credit cards, overdraft etc. whereas when we pull a credit history, Credit Bureau recognizes that you are only applying for a mortgage and you have the right to find out if you are eligible for a mortgage or not. Your score will be the same before and after your credit is pulled.

However, if you keep going to different brokers and you have multiple inquiries on your credit bureau in a short amount of time, then yes your score will drop.

Tagalog - When you pull my credit history will it affect my score?

Pag ang Bangko nag-credit check sa inyo bababa ang inyong credit score dahil ang mga Bangko ay maraming ino-offer na iba’t-ibang mga utang tulad ng: Car loan, RRSP loan, credit cards, overdraft etc. Pero kung kami po ang mag-credit check sa inyo alam naman po ng Credit Bureau na mortgage lang naman ang hawak namin at meron po kayong karapatang malaman kung magkakano kayo mag-ququalify sa mortgage. Ang inyong credit score po ay pareho before at after po kaming mag-credit check. Pero kung kayo ay lalapit sa marami at iba’t-ibang mortgage broker..bababa po talaga ang inyong score

Is it safe to get a mortgage from non-bank lenders?

People worry about lenders closing down for one main reason: they’re scared the lender will force them to repay their mortgage early. In reality however, that rarely happens with prime lenders.

Lenders are not deposit takers. They are lending you money and you are not lending them money…the risk is all theirs. If a lender were to close, another Financial Institution would simply take over the mortgage. The borrower just keeps making the same payments like nothing happened —- to the new financial institution.

Tagalog - Is it safe to get a mortgage from non-bank lenders?

Madalas na nag-aalala ang karamihan na mag-close down ang Lender lalo’t hindi nila kilala…takot silang puwersahin sila ng Lender na i-payout ang mortgage nila ng maaga. In reality, very rare na nangyayari ito sa mga Prime Lenders.And mga Lender ay hindi deposit takers. Sila ang nagbibigay sa inyo ng pera..hindi sila ang humihingi sa inyo ng pera…lahat ng risk ay nasa kanila. Kung magsasara man sila, bibilhin sila ng ibang Lender. Bilang Borrower tuluy-tuloy lang ang inyong pagbabayad as if walang nangyari—sa iba nga lang na Lender.

If I lost my job at the time of renewal of my mortgage, can I still renew it?

Yes you may. The current lender will renew your mortgage without needing an employment confirmation. However, speak to us before signing the dotted line to ensure you are getting the best mortgage deal and terms for you.

Studies show that 70% of clients renew their mortgage without reviewing and comparing their options. Our clients have the benefit of our expertise before signing their renewal and we ensure that we protect their best interest.

Tagalog - If I lost my job at the time of renewal of my mortgage, can I still renew it?

Puwedeng puwede po. Yung current Lender po ninyo ay mag-rerenew ng inyong mortgage ng walang employment verification. Kaya lang po kausapin muna ninyo kami bago ninyo basta bastang pirmahan yung dotted line para maka-sigurado kayo na best deal ang makukuha ninyo.Meron pong study na ginawa ang ilang mga bangko na 70% po ng mga nag rerenew ay hindi ni-rereview or kino-compare ang kanilang options. Ang amin pong mga kliyente ay nakaka benefit sa aming expertise bago nila pinipirmahan dahil sini-sigurado namin na pino-protektahan namin sila.

I am currently on maternity leave, would I still qualify for a mortgage?

Yes you will still qualify for a mortgage as long as you receive a letter from your employer stating when you started your maternity leave, your expected return date, your salary and that they guarantee your position.

Tagalog - I am currently on maternity leave, would I still qualify for a mortgage?

Puwede po kayong mag-qualify basta po makakuha kayo ng sulat from your employer na nagsasabing: kailan kayo nag-umpisa, kailan kayo babalik, kung magkakano ang inyong suweldo at sigurado na meron po kayong posisyon doon pag kayo ay bumalik.

Why do you still require an NOA when I already submitted my T4?

To ensure that we get you the best mortgage product with the best mortgage lender. Some lenders require NOAs and some require T4s, when we have both then we have more flexibility in getting you the best deal in the fastest time possible.

Tagalog - Why do you still require an NOA when I already submitted my T4?

Para makasigurado po kayo na makukuha po namin yung best deal. Yung ibang lender po kasi gusto NOA, yung iba T4. At least kung we have both, flexible po kaming dalhin kayo kahit saang lender na merong best deal.