Most people know about Insurance Agents. You could spend the day calling around to all the various insurance companies looking for the best terms on car insurance, or you could call an Insurance Agent to do the research for you. A Mortgage Agent works pretty much the same way. MB Direct Mortgage Agents work with over 30 different lenders to uncover not only the mortgage products with the best rate, but equally importantly the mortgage products with the right set of terms to fit your individual situation.
 

Visiting a bank yourself gives you access to that bank’s products and that bank’s rates. But not all banks offer the best rates on any given product, and not all banks offer the product which might best suit your needs. A Mortgage Agent is a licensed professional who knows the mortgage products offered by all the lenders, including the major banks, but also those products offered by lesser known lenders which might be uniquely suited to your situation. These lenders often offer rates or conditions the banks won`t offer you. The question is: do you want to be limited by the selection of products offered by your financial institution, or would you you rather have a professional Mortgage Agent working on your behalf to find the mortgage that`s right for you?

Call us to have your questions answered today: 1-866-445-3656 or apply online.

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We work for YOU, not the lender- Most lenders in Canada now use the services of Mortgage Agents to perform the origination of their mortgage loans. A few use Mortgage Agents almost exclusively. MB Direct Mortgage Agents qualify you the borrower by verifying income, credit, downpayment and property details, and submit your application to the Lender. For performing this function, Lenders compensate the Mortgage Agent. Knowing that the Mortgage Agent has access to many different institutions, Lenders will compete to provide the best rates they can to secure the mortgage broker`s continued business. Because MB Direct submits hundreds of applications to these Lenders, we are able to secure favourable terms which might be unavailable to consumers approaching these Lenders on their own.
  
Professional Expertise - MB Direct Mortgage Agents are professionals. We have access to up to the minute information from lenders telling us who has the best offers. This means we have access to the lowest rates, of course, but MB Direct Mortgage Agents also know that finding the right mortgage for you may mean thinking outside the box. What good is the best rate for 5 years if you decide to move in 3 years and have to pay a hefty penalty to break your mortgage? Maybe there was another option you hadn`t considered, or which hadn`t been offered to you.  MB Direct Agents will address your needs to find the right mortgage for your particular situation.

Pre-Approvals and Rate Holds - Have you just placed an offer on a property? Are you just looking?  Locking in a rate may be your best first move. Many lenders will lock in a rate for up to 4 months. This gives you the peace of mind to go house hunting knowing that you have a mortgage pre-approval in place with a known rate of interest.

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There are a number of financial institutions involved in mortgage financing in Canada:  Chartered Banks,  Trust companies, Credit Unions, Finance companies, Pension Funds, Life Insurance companies, and Private lenders. MB Direct deals with over 30 lenders with access to financing all across Canada. We have access to the major banks, but we also deal with non-bank lenders many Canadians may never have heard of. Why? Because customer situations sometimes require financial solutions the banks can`t or won`t offer.

Call us to have your questions answered today: 1-866-445-3656 or apply online.

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In the vast majority of cases, MB Direct Agents provide a free service because they receive their fee from the lender providing your mortgage. If there is a fee involved it will be fully disclosed to you.

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The banks have very defined lending parameters, and with the recent “credit crunch”, these limitations have left many Canadians underserved by the institutions they may have been doing business with for a decade or more. Your MB Direct Mortgage Agent can work with you to assess the reasons for the turn down, but most importantly to find out what types of mortgage financing are possible for you now.

Many people experience life events – unemployment, divorce, a death or illness in the family – which may have left them with unpaid bills, collections, or missed mortgage payments. They may have a record of good payment up to that point, but still find that the banks will not assist them.  There are mortgage lenders out there with a wider vision of who they will lend to. Your MB Direct Agent knows these lenders, and can help get you pointed in the right direction. 

Call us to have your questions answered today: 1-866-445-3656 or apply online.

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Most lenders like to see an established credit history. But what about people who are new to Canada, or just haven`t used credit in the past? You could get a credit card or a car loan and pay it well for the next year or so and then you may be considered by some lenders.  That`s one way.

MB Direct has access to lenders who will consider clients with no formal credit history in Canada enabling them to purchase a home..

Some of these lenders will look at your rental history, cell phone bills, utility bills as a way to determine your creditworthiness. Your MB Direct Agent can assess your situation and fit the terms of your mortgage to allow you to build (or re-build) your credit.

Call us to have your questions answered today: 1-866-445-3656 or apply online.

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Banks use a formula which allows you to pay a fixed percentage of your pre-tax income towards payment of your mortgage payment, property taxes and heat (and condo fees if applicable). This is called the Gross Debt Service Ratio (GDS) and most banks fix this number at 32%. That means someone earning $54,000 a year before tax would be able to afford a payment of $54,000 x 32%, or $1440 a month for the payment of the mortgage, property taxes and heating for the property in question. In this example, assuming taxes of $200 a month, heating costs of $75 a month, this would leave $1165 for payment of the mortgage each month. With a mortgage rate of just under 4%, this translates into a client who could qualify for a mortgage of $250,000 amortized over 30 years.

Banks will also limit how much total debt you can manage, and this limit is known as the Total Debt Service Ratio (TDS). This includes the above monthly obligations, but also all other outstanding debts such as credit cards, car loans, student loans, installment plans and so on. This limit is typically fixed at 40% of your pre-tax monthly income.

There are lenders who can stretch these limits beyond 32% and 40%. These lenders will often ignore the GDS limit and consider only the total amount of outstanding debts a client has, including the mortgage payment, property taxes, heat, and credit cards, loans and so on. By focussing only on the total montly amounts the client must pay, and by stretching that limit beyond what the banks will allow, these lenders can help put you in the home you want, or help you refinance to improve your monthly cashflow.

Call us to have your questions answered today: 1-866-445-3656 or apply online.


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Bankruptcy used to be a barrier to getting a mortgage. Many lenders will consider you for a mortgage only if you are two years out of your Bankruptcy or Consumer Proposal, and have re-established your credit history during that time. MB Direct has access to lenders who will consider clients 1 day out of bankruptcy, and others who will assist you to pay out your consumer proposal as part of your mortgage refinance.  Every situation is different, but your MB Direct Mortgage Agent can help you find the answers.

Call us to have your questions answered today: 1-866-445-3656 or apply online.

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There are two categories of Mortgage Insurance. Each has a different function.

The first, mortgage default insurance, covers the Lender in case of default by the borrower. This insurance premium is mandatory on home financings in Canada where the amount borrowed is greater than 80% of the established value of the property - 80% Loan to Value (LTV). This premium is paid by the borrower, and is typically added to the mortgage amount borrowed. CMHC (the Canada Mortgage and Housing Corporation) is the largest and best known provider of mortgage default insurance in Canada. Other insurers include Genworth and AIG. Some Lenders "self insure" and charge their own premiums as insurance against default. For information on CMHC insurance premiums, go to CMHC`s website at  www.cmhc.ca/en/co/moloin/moloin_010.cfm

The second type of mortgage insurance is mortgage life insurance. Mortgage life insurance protects the borrower by paying the outstanding mortgage balance in the event of the insured`s death. Additional policies are available to cover critical illness and disability . Enrollment in these types of policies is not mandatory as with mortgage default insurance (which is required on properties above 80% Loan to Value), but they are always offered by MB Direct agents to help you protect what is likely your largest investment - your home - and to protect you or your family from loss in the event of your incapacity to pay your mortgage.

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Each lender will have a different maximum age to take out a mortgage. Lenders need to know that you can afford your mortgage payments and therefore if you take out a mortgage that will take you into retirement they will need confirmation that you will have sufficient income in retirement to continue paying your monthly repayments. Lenders may request a shorter amortization period - the length of time it takes to reduce the mortgage balance to zero.

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Consolidate debts Are you paying high rates on credit cards, department store cards or unsecured loans? Consolidating debts by refinancing your mortgage may save you money and increase your cashflow. Let an MB Direct Mortgage Agent show you how you can reduce your monthly payments by consolidating them in a lower rate mortgage.

Reduce your mortgage rate It may be possible to break your current high rate mortgage and save money over the long term, or improve your cashflow.

Lock-in  Are you concerned that rates may rise? You can convert your variable rate mortgage to a fixed rate mortgage.

Renovate/Invest Use the equity in your home to improve it. Refinancing your mortgage can free up this equity for home improvements or to purchase investments, pay for children`s university fees or any of life`s expenses.


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A lower interest rate will often save you money if you plan to stay in your home for more than a few years. You can use our mortgage calculator to see how much you will save by refinancing. 

Every situation is different. Penalties to break a mortgage before renewal are calculated in different ways by different lenders. While these penalties can sometimes seem large, including high interest rate debts in your refinance can make paying a penalty well worth your while, especially if this allows you to lock in a lower rate and extend the term of your mortgage. Refinancing can free up cashflow which can be used to pay down your mortgage even faster. Your MB Direct Mortgage Agent can help you make the right choice.

Call us to have your questions answered today: 1-866-445-3656 or apply online.

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The other costs associated with the purchase of a home may include the following:

•    Inspection fee-required if a professional is to inspect the house prior to the completion of the purchase 
•    Appraisal fee-required to ensure the property is acceptable security for the mortgage 
•    Legal fees-includes lawyer`s or notary`s fees plus any disbursements required to transfer the property and register the mortgage 
•    Survey certificate fee-required to ensure the house is positioned on the lot within legal restrictions 
•    Tax adjustments-you will be responsible for paying the taxes for the portion of the first year that you own the property 
•    Mortgage insurance-if the down payment is less than 20% of the purchase price, an insurance premium on the mortgage amount is required (it may be added to the mortgage amount) 
•    Home insurance-arranged to cover the property in the event of fire or other damage
•    Mortgage protection insurance-optional, but is available to cover the mortgage amount in the event of death, disability, loss of employment, or critical illness 
•    Moving costs-vary depending on how far you`re going and who is helping you move
     Land Transfer Tax - paid by the purchaser, this tax can vary by province and municipality

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Mortgages are available with a fixed rate of interest for various terms, ranging from six months to 10 years, with payments amortized over periods of up to 35, and in some cases, 40 years. We also offer variable rate mortgage options, typically with a 5 year term.

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A federal government plan allows first-time homebuyers to use their Registered Retirement Savings Plan (RRSP) to help finance their home purchase. This money can be used as a down payment, or to help with other closing costs. RRSP home ownership withdrawal forms are available from your RRSP holder. The criteria are as follows:

•    Each applicant can withdraw up to $25,000
•    Applicants cannot have owned a principal residence within the past 5 years, unless it was a revenue property
•    You must reside in the home for at least one year after closing.
•    The RRSP funds must have been invested for more than 90 days before withdrawal to qualify 
•    The withdrawn amount must be repaid, over an interest-free repayment period that can be as long as 15 years

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A co-signer is placed on the mortgage and is registered on title. A guarantor signs a document that personally guarantees the mortgage. In either case, these parties may be called upon to make good on the mortgage in the case of default by the borrower. Most lenders will consider applications with a co-signer or a guarantor. Typically, a co-signer or guarantor is requested by the lender when some aspect of the mortgage application needs strengthening.

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If your mortgage is due to close in the middle of the month, but your regular payments are set for the start of the month, your first mortgage payment could be delayed for several weeks. To cover this, a date is set as the IAD and an amount is collected on closing to cover this IAD period.

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In short, Title Insurance protects both borrowers and lenders against losses related to the ownership of or title to a given property. Title defects, existing liens, encroachment issues, errors in surveys, and title fraud are some of the losses that may be covered by Title Insurance (source Financial Services Commission of Ontario).

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