Paramjit s. Girn – Mortgage Delivery Guy Mississauga

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Paramjit S. Girn

Welcome! Besides preparing quality content, we help Mississauga, Brampton, Toronto and GTA residents leverage their time and banks money efficiently to make them mortgage free quicker. Having said that, allow me to invite you to meet our licensed mortgage broker expert for an eye opening, no obligation session. Everyone who attends it, loves it. We are almost certain you will too. Don’t forget to down load your mortgage calculator app before you leave today.

Home Mortgage Types

Home Mortgage Types

To make you understand your options better, we have divided topic of home mortgage types into 2 major categories below:

  1. Down Payment dependent
  2. Credit dependent
  3. Private mortgages

Home Mortgage Types you may benefit from:

  1. Down Payment dependent HOME MORTGAGE TYPES
    • High Ratio Mortgages: When a home buyer buys a real estate with less than 20% of down payment in Canada these mortgages are called high ratio mortgages. In this case the borrowers pay a premium as per CMHC guidelines. There are 3 mortgage insurers in Canada namely CMHC, Genworth and Canada Guarantee. The purpose of insurance is to secure the banks money in case the borrowers defaults on their insurance. Under this category, borrower can buy their home with as low as 5% down payment.
    • Conventional Mortgages: When a home buyer buys a real estate with 20% or more down payment then these mortgages are called conventional mortgages in Canada. Under these mortgages borrowers do not pay a CMHC insurance premiums. This could be either Type A or Type B mortgage. Please read more below.

    *In both cases borrowers has to pass the mortgage stress test which is being implemented as of Jan 01, 2018 across Canada.

  2. Credit dependent HOME MORTGAGE TYPES
  3. The magic number for credit score tends to be around 680. While there are a lot more factors which banks look at beside borrowers credit score, you need to speak to a proficient mortgage broker who can guide you more on your credit situation. Your credit score is one of the most important factor for a lowest mortgage interest rate mortgage product.

    “A” Mortgage:

    These mortgage types are the best home mortgages a borrower can get. The rates are low except some variations. The associated terms and conditions depends upon the lender/bank.

    While bank mortgage rate spread is record low, banks offer different types of mortgages catering to specific group of home owners to win their business however due to the variations of associated terms and conditions, it’s important to select your bank/lender carefully.

    Below are some of the specific products you may like to know more about:

    1. No Down Mortgages
    2. New to Canada mortgage
    3. Purchase + Improvement Mortgage
    4. Refinance + Improvements
    5. Investment Property Mortgages
    6. Pre Practicing Professional’s Mortgages
      1. Resident Doctors Mortgages
      2. Licensed Engineer’s Mortgages
    7. Mortgage which allows you to use pre-maternity income while on maternity leave
    8. Non Resident Mortgages
    9. Secondary Home Mortgages
    10. Equity Leveraging Mortgage

    *Chasing lowest mortgage interest rate alone may cause you grief in the future.*

    Disclaimer: All of the above mentioned mortgage products has their own qualifying criterions and every borrowers need to qualify for these mortgage products.

    “B” Mortgages:

    This group of mortgage types encompass available lenders when Canadian Institutional Banks/lenders refuse to lend money against real estate. The mortgage interest rates tends to be higher. Borrower pays lender fees. These B types of home mortgages are a great alternative for borrowers who needs time to address the issues due to which their mortgage application was declined by their banks. Real estate investors use these lenders a lot to buy more properties.

  4. Private Mortgages
  5. The term itself is quite misunderstood out there and is incorrectly used to address the mortgages provided by the Mono lenders. Private mortgage lenders can be a person, group of people or a corporation who lends money against real estate. These types of mortgages are used as an alternative solution when no bank or a financial institution wants to lend money against a particular real estate. The mortgage rates are higher so are the fees associated with it. These types of home mortgages are real estate equity driven rather than the borrower’s income. The mortgage interest rates for first position could vary between 6.99% - 9.99% depending upon the pertinent details.

*If you need to go through a Private mortgage for any reason you are encouraged to know all the details about the commitments terms and conditions clearly. These group of lenders are not regulated as these are private funds.

With the mortgage stress test being implemented as of Jan 01, 2018, Mortgage Delivery Guy believes that more people will go with private mortgages.

To know what types of home mortgage is better, send in your availability and meet with a proficient mortgage broker in Mississauga, Brampton, and Toronto GTA.

Read what our clients think about our services in testimonials:

Paramjit is a wonderful financial advisor. He is very reliable. I work full time and have several other extracurricular activities. He made himself available according to my schedule. Not only he is knowledgeable about the market but also on top of his work. I would highly recommend him to anyone. I cannot say enough wonderful things about him. Sarbjit Pandher

Working with Paramjit was such a positive experience. He took the hassles and headaches out of negotiating a mortgage for us. Once we began working with Paramjit, we knew we were in good hands and that he would negotiate the best mortgage for us. He worked around our schedule to accommodate us, always kept us up to date on everything, and made sure everything got done to secure our mortgage for us. We are very thankful for everything he did for us and will not hesitate to refer his services to anyone we know seeking a mortgage. Ajay Kumar

If you are in the market looking to buy your first home or an investment property or refinancing your existing real estate, meet with a mortgage broker for your free mortgage strategy session.