Oliver and Associates: buy, sell real estate in the London area

Two Types of Mortgage Classification + More Information

Conventional Mortgage (Uninsured): The mortgage amount does not exceed 75% of the property's value. The purchaser is supplying a minimum of 25% of the property's value for a down payment.

Hi-Ratio (Insured): The mortgage amount exceeds 75%, but not 95% of the property's value. The purchaser is supplying a minimum of 5% for a down payment. In these cases all lenders will require the mortgage to be insured (for default purposes) C.M.H.C./G.E. Capital

CMHC Info/Programme + More Information

C.M.H.C. - Canada Mortgage & Housing Corporation: A government run program insuring mortgages under the National Housing Act. (Commonly known as N.H.A. Mortgages).

Mortgage Insurance: If your down payment is less than 25% of the purchase price, an insurance premium on the mortgage amount is required (this premium may be added to the mortgage amount). Application fee to C.M.H.C. or G.E. Capital is $235.00.

C.M.H.C./G.E. Capital also charges a premium based on the following loan to values: 75-80% = 1.25%, 80.1-85% = 2.00%, 85.1-90% = 2.5%, 90.1-95% = 3.75%

For Example:	$ 100,000	Purchase Price
	$ 5,000	Down Payment
	$ 95,000	Mortgage Required (95% of L/V)
	$ 3,562.50	3.75% of Mortgage Amount
	$ 98,562.50	Total Mortgage Amount

Sales Tax: Effective July 1/93 an 8% sales tax is payable to the government through your lender at time of closing.

G.D.S.R. (Gross Debt Service Ratio): The total of your principle, interest, taxes, heat, 1/2 condo fees, and payments cannot exceed 32% of your gross family income.

T.D.S.R. (Total Debt Service Ratio): The total of your G.D.S. payments plus any personal loans and outstanding credits card payments cannot exceed 40% of your gross family income.

Term: Length of time that your mortgage agreement covers & for which your interest rate is guaranteed (6 months -25 years)

Amortization: Actual number of years it takes to pay off the entire mortgage.

Other Costs to Purchase a Home + More Information

Down Payment: Minimum of 5% of the purchase price.

Appraisal Fee: Required by the lending institution to ensure the property is sufficient security for the mortgage advance. Typical charge is $150-$175 (plus G.S.T.). Completed by independent, accredited appraiser.

Inspection Fee: Completed by Building Inspector. Suggested if the home you are purchasing is older, or if newly constructed by a builder who is not under a warranty program. Typical charge @ $250.

Legal Fees: Includes Lawyers' fee for service (ranges from approximately $450-$700) plus any disbursements & G.S.T. required to register your mortgage including Sheriffs Certificate, search on title etc. Typical cost around $250-$350.

Land Transfer Tax: A tax equal to 1% of the purchase price less $275.00 levied on every purchase and collected upon closing by the Lawyer.

Survey Certificate: Required by the lending institution to ensure the house is situated on the lot within legal restrictions. Typical cost @ $800. This may be available from previous owner so please ask!

Tax Adjustments: You will be responsible for paying the property taxes for the portion of the year which you own the property.

Home Insurance: You are responsible for arranging insurance on your new home in the event of fire or other damage.

Life Insurance: Available at your option through the mortgage lender to cover the amount of the mortgage in the event of the death of you or your spouse.

Moving Costs: Dependent on how far, how much and who is helping you move.

Try The Mortgage Calculator Now + More Information

Mortgage Calculator:
Price:		Down Payment:
Rate:	%	Amortization:
nb: CMHC premiums not included

Buying a home is a joyful, exciting time you will want to share with your family and friends. But shopping for and arranging a mortgage can create so much stress that you have little time to really enjoy such a major event in your life.

Try the OMAC Pre-approval online System

OMAC Website

Imagine a service that promised to search the crowded world of mortgage lenders and find the best deal available; a service that would make all necessary arrangements with the financial institution and meet with you at your convenience, evenings and weekends included; a service that could deliver the best mortgage rate and get an approval in 4 hours or less. Imagine if all this were offered absolutely free.

If this sounds too good to be true, you haven't dealt with the Ontario Mortgage Action Centre Ltd. With more than 22 years of lending and banking experience, OMAC can do all this and more.