Here are our most frequently asked questions.
The advantages to buying a house depend primarily on your current situation, your values and your needs. Becoming a homeowner is definitely a way of enjoying a good quality of life.
If you value stability and the feeling of pride that comes with owning your home, buying is certainly an option. You could be “master in your own home” rather than living at the mercy of a landlord.
From a financial point of view, a house, a condo or a multiplex represents a low-risk asset that gives you the benefit of enjoying it every day while its value will most likely rise over time. Owning such an asset can also become an effective tool to leverage other projects.
Based on to your current budget, you can evaluate whether it is more profitable to rent or buy using our “Rent versus Buy” calculator. This tool will allow you to estimate how many years it will take to make the purchase profitable. How would you feel about becoming a homeowner for the price of your rent? Take the test!
Amortization is the number of years it will take you to pay off your entire mortgage. To choose the period of amortization, it is important to consider your ability to pay, your medium and long-term goals and the down payment your able to make. The period can vary between 10 and 30 years.
If you opt for a shorter amortization period for your mortgage, you will save a lot of money because you will pay less interest on the loan and you will free yourself from your mortgage sooner. However, your mortgage payments will be higher.
To reduce the amortization period, you can also increase the frequency of your payments from monthly to every two weeks or accelerated-week, increase your mortgage payments, make additional capital payments, or make double payments. You can use the Multi-Prêts mortgage payment calculator to simulate different scenarios.
If your needs change, your initial amortization period may be reviewed when you renew your mortgage. It could make a big difference, so look into it! Be sure to read How to choose your mortgage term to learn more.
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.
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. For more details on cash back, the different products available and today's promotions contact one of our Multi-Prêts brokers.
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:
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.
You can also reduce both interest fees and repay your mortgage faster in doubling your usual payments, including principal and interest (taxes & insurance if applicable), at each normal payment date, without commission or penalty. You can choose to double all of your payments or just do it once a year. The whole amount of your additional payment is being applied towards reducing the principal of your loan (capital).
Opting for a fixed rate versus a variable rate depends on your tolerance for interest rate fluctuations and your ability to pay. Choosing a variable rate mortgage product is the best choice on the market, as the rate is generally better than fixed rate mortgage products. However, it is important to understand that with a variable rate, the amount of your payments may change. On one hand, you immediately benefit from rate cuts, so you pay your mortgage faster. Fixed rate mortgage products don’t offer this advantage, but they guarantee the rate and repayments for the term of the loan (from 6 months to 10 years). On the other hand, when rates go up, you must immediately pay more interest and, if your payments become insufficient to pay the full amount, you must increase your payments to maintain the amortization period you initially chose.
Yes, most definitely. Most established financial institutions reserve the right to restrictions towards individuals who may have had financial difficulties in the past. If this is your case, the best way to determine you chances to obtain a mortgage loan is to sit down with one of our consultants. Multi-Prêts'consultants might be able to help through our pool of lenders.
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.
Of course, upon approval, you can get a mortgage for purchasing and/or renovating a home.
Buying a home will be one of the biggest investments you will ever make. Your mortgage comes with a huge responsibility, and it could compromise your family's safety.
What would happen if you were to die suddenly? Or if you were to become ill and could not work while your mortgage payments are still running? Because the Multi-Prets consultants want to offer you the best possible products and service, they offer you, along with your mortage, the possibility to subscribe to an insurance policy from Mortgage Protection Plan, which constitutes a good solution to protect yourself and your family.
The mortgage credit insurance will compliment your existing portfolio of insurances to help you enjoy a worry free mortgage. The main advantage of this insurance is that you can transfer your mortgage to another financial institution without having to change insurer.
The Canada Mortgage and Housing Corporation (CMHC) is a Crown corporation created in 1945 and fully owned by the federal government. Its role is to help stabilize the housing market. How? By providing greater access to homeownership to Canadians by insuring mortgages for which the down payment may be insufficient for lenders.
The government requires lenders to insure all mortgages with a down payment of less than 20%. With its mortgage loan insurance, the CMHC has been protecting banks for many years against payment default by adding its insurance premium to the loan. The calculation of the premium depends on the down payment of the buyer. There are two other players in the business of loan insurance: Genworth and Canada Guaranty.
What are CMHC fees?
You can make an estimate of the loan insurance premium using our Mortgage Payment Calculator.
One to four unit properties, single-family detached, duplex, condo, triplex or quadruplex.
When you meet with a Multi-Prêts advisor, you will determine together your borrowing capacity. In other words, they will establish the amount you can borrow for the purchase of a property based on your financial situation. However, you should also be aware of your personal limit for making payments because your maximum borrowing capacity may not be a “comfortable” zone of payment with respect to your quality of life. Considering your personal limit based on your budget will spare you from finding yourself in an embarrassing financial situation. Examine your personal finances, compare your income with your usual expenses and make sure you can repay your debt without making much of an effort. It is also important to know that you can get an interest rate guarantee for 150 to 180 days depending on the lender. This guarantee protects you from any rate increase. For a simulation of your borrowing capacity, please use the How much mortgage can I afford? calculator.
In most cases, you must have:
Your Multi-Prêts consultant will determine your capacity to repay.
At least 5% of the purchase price is required to buy a single-family home or a duplex.(on a purchase price of less than $500,000) A minimum of 10% on amounts exceeding $500,000. Contact a Multi-Prêts mortgage broker for more details on this type of financing.
You must also prove that you have funds equivalent to 1.5% of the purchase price to cover the closing costs, such as legal fees, notary fees and disbursements, appraisal fees and the costs of a certificate of location.
Also all mortgages with a downpayment of less than 20% will need to be complemented by a mortgage loan insurance through CMH, Genworth or Canada Guaranty.
The higher your down payment, the lower the overall cost of borrowing.
You'll find up-to-date information on rules and regulations regarding down payments here.
Read more about down payments.
Yes, it is generally an accepted form of down payment. When the source is a gift from your relatives, you have provide a letter signed by the donor confirming that it is a gift, not a loan.
Contact a Multi-Prêts broker.
The Home Buyer's Plan (HBP) lets you withdraw from your RRSP up to $25,000 per person tax-free and without penalties. For a couple, this could represent $50,000. The only condition: you must repay the amount withdrawn from your RRSP within 15 years. Contact a Multi-Prêts broker for more details.
Before deciding whether to buy a property or not, evaluate all one time expenses as well as recurring charges related to the purchase and maintenance of a house. To establish your budget, consider the following expense items:
Costs associated with the purchase of a house:
Your Mutli-Prêts consultant will be able to help you evaluate these costs.
You can get prequalified for a loan even before you find the property you want to buy. You can get a mortgage pre-qualification here.
Our lenders offer preauthorizations that protect your rate against increases for periods ranging from 60 to 180 days. Moreover, in the case of a new construction, many of them grant an appropriate delay considering the scheduled construction work. There is a definite advantage to obtaining your pre-authorization: you will know your borrowing capacity and will be able to look for a home stress-free. In addition, you will have an excellent interest rate during the time you are looking for or building a new home, as well as being protected from any rate hikes.
Multi-Prêts Mortgages offers you an exclusive online tool allowing you to obtain your mortgage prequalification in less than 5 minutes. You will quickly get the best deal among our 20 mortgage lenders, for free. One of our mortgage brokers will follow up on your request and will accompany you throughout your transaction by ensuring that you have the product best suited to your needs.
The amount you will pay for your mortgage each month will depend on several factors including the total amount of your mortgage (purchase price minus down payment), the amortization period, the interest rate and the frequency of your payments.
How can I calculate my mortgage payments?
You can use our Mortgage Payment Calculator to determine the approximate amount of your monthly payments. Our Multiple Scenarios Calculator also allows you to create several scenarios and compare different options to see which one suits you best according to your budget. It also lets you see how much you can save on interest and whether you can pay off your mortgage faster. Note that our Multi-Prêts brokers are always available to guide you and give advise on the best solution for your you. Feel free to try our other calculators, like “How much can I afford?” and “Rent versus Buy” to learn more.
You can use our services for several types of mortgage loan projects:
The mortgage broker is the intermediary between a person wishing to subscribe to a mortgage loan and the financial institution that will lend the desired amount.
Advantages of a mortgage broker
Their role is primarily to advise, negotiate and obtain the most advantageous loan for the buyer from the financial institution. Dealing with a mortgage broker offers several benefits.
Multi-Prêts advisers negotiate for you with more than 20 recognized financial institutions to get the best rates on the best terms, according to your needs.
As Multi-Prêts Mortgages brokers generate a large volume of transactions with various lenders, they give them rate reductions which you benefit from directly. In addition, the financial institutions pay us, the service is offered to consumers free of charge for any residential mortgage. Finally, the Multi-Prêts advisors ensure the process of your transaction runs smoothly, from presenting your application to the lender until you sign the deed of sale before a notary.
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 to fit your particular needs.
Since Multi-Prêts generates a high volume of transactions with different lenders, we consequently obtain rate rebates from which you benefit directly. Also, since financial institutions pay us for our services, the service is free for residential mortgages. The Multi-Prêts mortgage consultant will ensure smooth completion of your mortgage transaction, from the initial file presentation to the lender, to the final act of sale at the notary's office.
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.
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-Prêts generates a high volume of transactions with different lenders, we consequently obtain rate rebates from which you benefit directly. Contact a Multi-Prêts consultant for more details.
Founded in Montreal in 1981, Multi-Prêts is the leading mortgage brokerage firm in Québec.
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.
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.
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 your local system is adequately protected using appropriate anti-virus, anti-spam and anti-spying software.
For any question dealing with the services being offered by Multi-Prêts, please communicate with us at 1-800-798-7738 or use our online request for information form.