Frequently Asked Questions
- What’s the difference between a Broker and My Bank?
- How much do I need to put down to avoid paying CMHC Insurance fee?
- How much do I need to have available for closing costs?
- What’s the minimum I can put down to purchase a home?
- Can I still get a mortgage if I have bad credit?
- What is a 2nd mortgage?
- What is the average interest rate for a 2nd mortgage?
- Can I get a 2nd to the value of my house?
- What happens if I miss a payment (do they take my house)?
- How do I make payments?
- What fees will I have to pay?
- Can I use my own lawyer?
- Who will have to sign on this mortgage (everyone on title)?
- Does all of my money go to interest?
- Will we need an appraisal?
- Who chooses the appraiser?
- Do I have to bring the fees in to the lawyer in cash?
- What am I allowed to use the money for?
- WHAT IS CCSP - GUARANTEED RETURN POLICY?
- WHAT IS PARTICIPATING WHOLE LIFE INSURANCE?
- IS GRP AN RESP?
- HOW MUCH DO I NEED TO CONTRIBUTE TO A GRP?
- HOW LONG IS THE CONTRIBUTION PERIOD?
- WHICH IS THE BEST WAY TO FUND THIS PLAN?
- ARE THERE AGE LIMITATIONS FOR OPENING A GRP?
- WHO CAN OPEN A GRP PLAN FOR A CHILD?
- WHAT ARE THE TAX IMPLICATIONS OF A GRP PLAN?
- HOW SAFE IS THE PLAN?
- WILL I KNOW HOW MUCH THE GRP WILL GROW DURING MY CHILD’S LIFE?
- WHAT IS A FREE PERSONALIZED PLANNING TOOL?
- HOW DOES ONE ACCESS THE MONEY IN THE PLAN?
- HOW CAN I OPEN A GRP PLAN?
A Broker has access to all Major Banks and as well as many non conventional (private) lenders. The broker knows the lending guidelines of all these lenders and can offer you greater flexibility in qualifying and on the mortgage terms. A broker does not work for a specific institution and is focused only on YOUR NEEDS!
You will need a minimum of 20% down.
Though this varies depending on your location and specific circumstances, most First Mortgage lenders require you to show 1.5% of the purchase price. Second mortgages vary widely depending on the lender but you will be given the total costs along with your original quote.
Minimum down payment required is 5% of the purchase price.
Yes but you will likely need a larger down payment and may get a rate that’s higher than our lowest rates.
A second mortgage is a loan secured by your home which goes behind your 1st mortgage.
2nd mortgage rates will range between 10% and 15%
No, 2nd mortgages are available to 85% of the value of your home, 90% on exception.
They will not take your house for being one month behind, but as with your 1st mortgage you cannot fall 3 months behind or they will take legal action.
In most cases, for a 2nd mortgage you will provide the lender with 12 post dated cheques. For a first mortgage you will usually provide the lender with a void cheque and payments are taken directly from your bank.
For a 2nd mortgage you will be responsible for the brokerage fee, legal fee, lender fee and an appraisal fee.
Yes, for 1st. mortgages you can. For 2nd mortgages the lender will have their own lawyer which you must use. However, you may use your own lawyer as well, but an additional solicitor will add to your total cost.
Everyone on the title to a property will have to be on the mortgage.
Most often yes, but some of the 2nd mortgage lenders will allow you to pay principal and interest. Most of the 1st mortgage lenders allow principal and interest payments.
All refinances will require an appraisal at the clients’ expense. A home purchase may not require an appraisal depending on the property.
The lender will choose the appraiser.
For a refinance: You can either bring the closing fees to the lawyer in cash or have them deducted from the equity. For a purchase: you will have to bring all fees in to the lawyer at closing.
You can use the money for anything you’d like.
A Guaranteed Return Policy (GRP) is a specifically designed Participating Whole Life Insurance Policy. The plan provides 3 major benefits: -
- Guaranteed Cash Values,
- Tax-Free annual dividends and
- Permanent Whole Life Insurance.
This unique combination guarantees that the family will have a fund that keeps growing tax-free. The money can be used at any time, for any reason at all;
The child will be insured for their entire life;
In addition to all of this, they will ALWAYS still leave a substantial amount of money for their beneficiaries. (creating Generational Wealth).
Participating whole life insurance allows the policy owner to “participate” in the insurance company's profits. They provide guaranteed cash values and annual tax-free dividends. This is typically used by corporations and more affluent families.
No. It is not. An RESP (Registered Education Savings Plan) is a government program whereby the government, through the CESG (Canada Education Savings Grant), will match 20% of any RESP contributions, to a maximum of $500 per child each year.
The maximum lifetime CESG grant amount for each child (including additional grants) is $7,200.
While an RESP provides a government grant, is does have certain restrictions on the use of funds since it is only for education.
A GRP is your private plan which is designed to last for the rest of the child’s life, and on to the next generation. It can provide for education anywhere in the world, or fund any need the parent or child may have.
There are no hard and fast minimums or maximums. The ideal amount will depend solely on your family budget. While the average family contributes about $200. Per month per child, there are those who see it fit to contribute $500. Per month or more.
Your GRP Plan will be completely paid up for life, after 20 years of contribution.
Each parent or guardian receives the Canada Child Benefit (from the government) from birth to age 18 for each child. This amount has increased substantially in the past 4 years. (Currently the average family, with a combined income of $80,000. receives $336. /month /child). We encourage parents to use some of the Canada Child Benefit to partially fund the Guaranteed Return Policy, which is designed to be totally funded in 20 years.
Calculate your Canada Child Benefit qualification amount- https://apps.cra-arc.gc.ca/ebci/icbc/prot/proc_witb1
The GRP plan can be opened once your child is 14 days old. While the benefits are greater for children of younger ages, the plan can be opened for children over 18 years old.
A GRP can be opened by a parent, grand parent, aunt, uncle or legal guardian of the child.
All dividends paid into the plan are tax-free.
All values accumulate in the plan tax-free.
On the death of the insured child, the Life Insurance Value is paid out to the chosen beneficiary/beneficiaries, tax-free.
The plan can be collapsed at any time and the cash value withdrawn. In this case the withdrawn amount will be subject to taxes at the marginal tax rate of the plan owner.
The core of the plan is a Life Insurance policy which is backed by one of Canada’s Largest Insurance companies. The plan is extremely safe because Insurance companies are all regulated by the government and are totally regulated. Life Insurance companies provide Guarantees n=because they are not allowed to leverage their assets.
Yes. You may request a Free Personalized Planning Tool which will give you a complete breakdown of the growth of the plan over the years. This tool will be specific to your child’s age, and the amount of your contribution.
This is a personalized analysis designed specifically to your child’s age, gender and your chosen contribution amount. It will detail the growth of the cash values dividends and the Tax -Free Life insurance pay out to your child’s beneficiary.
You can request a Free Planning Tool by clicking here.
All cash values in the plan can be accessed by either termination the plan, or by taking what is called a policy loan for up to 90% of the cash value in the plan at any time. Policy loans are not taxable. The loans may be paid back into the plan at any time. If not repaid, the insurance company will deduct the loan principal plus accrued interest, from the death benefit, at the time of the death of the insured child.