Frequently asked questions that can help you start your mortgage journey with us.
We offer a broad range of services to cater to different financial needs. Our services include residential mortgages for those looking to buy a home, refinancing for those who want to take advantage of better interest rates or terms, and transfers & HELOC for homeowners who want to leverage their home equity. We also provide private mortgages, 1st, 2nd & 3rd mortgages, reverse mortgages for seniors, commercial financing for businesses, and construction & land financing for developers.
The process of renewing a mortgage involves researching and negotiating when ready to renew. If you decide to transfer your mortgage, you must apply for a new mortgage with a different lender who will pay off your existing mortgage. We can assist you in both processes, ensuring you get the best terms and rates possible.
A residential mortgage is a financial product that allows individuals to purchase residential property. The property is used as collateral for the loan, which is repaid over a specified period up to 40 years or interest only. The borrower makes regular payments to the lender, including the principal amount and interest.
Refinancing a mortgage involves replacing your current mortgage with a new one, often with different terms or a lower interest rate. Refinance can be a good idea if you can secure a lower interest rate, and want to change the term length of your mortgage. You might need to access equity in your home in order to pay out debt, buy investment property or any other investments, pay for your kids' school or to renovate your home.
Secured Line of Credit is a type of loan that lets you borrow against the equity in your home. It works much like a credit line, where you have a credit limit and can borrow as much or as little as you need up to that limit. You only pay interest on the amount you borrow. It can be used for various purposes, such as home improvements, debt consolidation, or even to fund a business venture.
A private mortgage is a loan provided by a private entity or other financial institution, such as an individual or a business, rather than a traditional bank. People often choose private mortgages when they have unique financial circumstances that make it difficult to qualify for a traditional mortgage, such as being self-employed or having a less-than-perfect credit history. Private mortgages offer flexibility and can be customized to meet the borrower's needs. Private mortgages are used for the properties that do not meet banks criteria: land, properties under construction, agricultural properties, sub-divisions, etc
A second mortgage is a loan that allows you to borrow against the equity in your home without having to refinance your first mortgage. It's called a "second" mortgage because it's secondary to your first mortgage in terms of priority. A second mortgage might be a good idea if you need a large sum of money for things like home improvements, debt consolidation, or major expenses like education or medical bills. Sometimes people choose to take a second mortgage when penalties to break the first mortgage and access equity are too high.
A reverse mortgage is a financial product designed for homeowners aged 55 or older. It allows you to convert a portion of your home's equity into cash, without selling your home or making monthly mortgage payments. The loan is repaid when you sell your home, move out, or pass away. It's a way to tap into your home's equity to supplement your income during retirement. Reverse mortgages do not have income requirements.
Commercial financing is a type of loan used to fund commercial real estate or business expenses. It can be used to purchase or renovate commercial property, buy equipment, or cover operating expenses. Commercial financing can benefit your business by providing the capital needed for growth or expansion, consolidating business debts, or taking advantage of new business opportunities.
Construction and land financing is a loan used to finance the purchase and construction of a building on that land. The loan covers all costs related to the project, including the purchase of the land, construction costs, and any associated fees. The loan is typically disbursed in stages as the construction project progresses.
A high-ratio mortgage is a mortgage where the borrower contributes less than 20% of the property's value as the down payment. Typically the purchase price cannot exceed one million dollars. High ratio mortgages come with lowest interest rates. Insurance premium is usually added to your mortgage and financed by the bank.
Our pre-approval process is designed to be quick and efficient. After an initial conversation to understand your needs and financial situation, we provide a documentation checklist needed to assess your file. Once we receive your documents, we aim to provide a pre-approval within 24 to 48 hours. By having pre-approval you can lock in your rate upto 120 days.
A co-signer is someone who agrees to take on the responsibility of a loan if the primary borrower is unable to make payments. They are equally responsible for the loan. A guarantor, on the other hand, guarantees the loan and only becomes responsible for the debt if a specific event occurs, such as the borrower defaulting on the loan. Co-signed goes on title and guarantor does not.
A mortgage pre-approval is typically valid for 60 to 120 days. This gives you time to shop for a home with the confidence of knowing how much you can afford. You can always apply for a new one if you haven't found a home before the pre-approval expires.
Yes, we do finance rural properties, land, cottages, and all-season vacation homes. However, we do not finance mobile homes on leased land.
We are both a lender and a mortgage broker. As a lender, we provide our own lending services. As mortgage brokers, we work with all big banks to shop around for the best rate for you or your clients.
We can help consolidate your debt under one umbrella, making it easier by combining it into one monthly mortgage payment. This can alleviate some of the stress associated with covering multiple payments and paying high-interest credit card fees. We offer special products that allow us to customize tailored solutions for you.
Benson Mortgages can negotiate a better renewal term with the existing lender or move your loan to a cheaper lender and save you money. Some lenders cover all the costs associated with moving your mortgage.
Securing a construction loan involves several steps. First, you'll need to provide detailed information about the project, including blueprints, architectural drawings, permits, and a budget. The loan is then given on a progress advance basis, meaning partial amounts of the loan will be released as the project hits certain milestones.
We finance a wide range of commercial properties, including multi-residential buildings, apartment buildings, condominium buildings, car dealerships, retail plazas, strip malls, shopping centres, mixed-use buildings, office buildings, industrial buildings, warehouses, landfills, land, farms and others.
The process of purchasing a home with a private mortgage involves several steps. First, you'll need to apply for the mortgage. We aim to provide approval within 24-48 hours. Unlike traditional mortgages, we don't solely rely on your credit score or income statements. Mortgages can be interest only or amortized.
A Reverse Mortgage offers several benefits. It provides tax-free income, allowing you to maintain home ownership and live your imagined retirement. It's a financial tool that can help you supplement your income, pay off debts, or fund home improvements and travel. You do not need to make monthly payments and your property cannot be taken away from you by going into default.
To qualify for a second mortgage all you need is to have enough equity in your home. The exact requirements can vary based on the lender and your financial situation.
A commercial mortgage offers several benefits. It can serve as a source of business funding, allowing you to access equity as the property value increases over time. This extra funding can help with business growth, debt consolidation, equipment purchases, renovations, and property investment. Commercial mortgages could be tax deductible.
You may be charged a renewal fee if you do not renew your mortgage on time. Your mortgage can be automatically renewed without your knowledge at a much higher rate. If you do not renew, your mortgage could default. It's important to keep track of your mortgage term and start the renewal process well before the mortgage ends.
A Secured Line Of Credit offers flexibility in borrowing and repayment, potential tax advantages, and lower interest rates than credit cards and personal loans.
The requirements for financing vacation homes or cottages can vary based on the property specifics such as: four season access, whether it is well or septic and waterfront access. Generally, we will need to appraise the property. We can provide specific details based on your situation. It also matters if it's for personal use, a rental property or will be used as short term rental.
Bi-weekly mortgage payments can help you pay off your mortgage faster and save on interest costs. By making payments every two weeks, you end up making an extra month's worth of payments each year. This can significantly reduce the amount of interest you pay over the life of the loan.
Failing to maintain monthly mortgage payments can lead to late fees, damage to your credit score, and potentially foreclosure if the payments are not made up. It's important to contact your lender as soon as possible if you're having trouble making your payments.
A fixed-rate mortgage has an interest rate that remains the same throughout the loan term, providing stability and predictability for your payments. On the other hand, a variable-rate mortgage has an interest rate that can change over time based on market conditions. This means your payments could increase or decrease. The choice between the two depends on your financial situation, risk tolerance, and market expectations. There is also a variable rate mortgage with a fixed payment.
Contact Benson Mortgages specialist.