What is a mortgage?

A mortgage is a loan that’s secured by a property. The loan amount is called the principal, which the borrower must repay, along with the interest, over the mortgage’s repayment period. You can finance many different things with a mortgage:

• A new or existing home
• A cottage or second home
• Home renovations
• Debt consolidation

A mortgage is fully secured, so you typically pay less interest than you would with most other types of financing.

How much do I need for a down payment?

For conventional mortgages, you need a down payment of at least 20% of the purchase price of a home. You can also get a mortgage with a down payment as low as 5%, but you must insure the mortgage against default. The insurance premium would be included in your regular mortgage payment.

What costs should I expect when I buy a home?

In addition to the purchase price, there are closing costs you need to be prepared for. These costs can include:

• Legal costs and disbursements
• Appraisal fees
• Home inspection fees
• Survey fees
• Title Insurance
• Government transfer tax
• Property taxes and utility bills prepaid by the previous owner

These costs can range as high as a few thousand dollars, depending on the value of the home you purchase.

What happens when it’s time to renew my mortgage?

You must renew your mortgage at the close of your mortgage term. Through your mortgage broker, the Preferred Rate mortgage ensures that you will always get a great rate.

What is a Preferred Rate mortgage?

The Preferred Rate mortgage is our commitment to you that you will always receive a competitive rate every time - no hassles, no surprises! Other lenders may give you a competitive rate when you get your first mortgage from them - but come time to renew or refinance, they may offer an inflated posted rate. That’s not how we do it at Macquarie Financial. You deserve a preferred rate, and that's what we give you - every time! In fact, our Preferred Rate is usually 1% lower than the banks' posted rates and you get this rate automatically, with no negotiations.

What happens to my mortgage if I want to sell my home?

If you’re moving to a new property, you can take your mortgage with you and keep its existing terms. This makes sense when you already have a great interest rate.  Alternatively, the person purchasing your home may qualify to take over your mortgage.