Posts Tagged ‘AIG’
Useful website links for home buyers
Tired of navigating through countless websites to find the exact information that you need? I am too so I decided to put together a list of useful links that you can use yourself. The subject areas covered are, buying a home and mortgage loan insurance premiums, information on the Ontario land transfer tax and refund, enrolling in your city’s pre-authorized payment plan, a link to ordering your own personal credit report as well as a link to the government website listing grants available to home owners who make their homes more energy efficient. Please let me know if these are helpful and if you happen to think of any new links that you would like to see listed here, please pass along your ideas to me and I will attempt to add them. I sincerely hope that these links can save you some time.
Do you need to check if a Mortgage Brokerage, Administrator, Mortgage Agent, or Mortgage Broker is registered and properly licensed in Ontario
Visit the Financial Services Commission of Ontario website at:
http://www2.fsco.gov.on.ca/mbslist/agents.mbl
Do you want to look up the Mortgage Loan Insurance premiums with
Genworth Financial Canada
Mortgage Loan Insurance premiums are available at:
http://www.genworth.ca/mi/eng/product_solutions/premiumRateTable.html
Do you want to look up the Mortgage Loan Insurance premiums with
AIG United Guaranty
Mortgage Loan Insurance premiums are available at:
http://www.aigug.ca/products/premium-rate-chart.pdf
Do you want to look up the Mortgage Loan Insurance premiums with
Canada Mortgage and Housing Corporation or CMHC
Mortgage Loan Insurance premiums are available at:
http://www.cmhc-schl.gc.ca/en/co/moloin/moloin_005.cfm
Do you need to know anything about the Ontario Land Transfer Tax
Or apply for the land transfer tax rebate
Visit the Government of Ontario, Ministry of Revenue website at:
http://www.rev.gov.on.ca/english/taxes/ltt/
Do you need to enrol in the City of Mississauga’s Pre-authorized Tax Payment Plan
Visit the City of Mississauga website at:
http://www.mississauga.ca/portal/residents/taxformscentre
Do you need to enrol in the City of Oakville’s Pre-authorized Tax Payment Plan
Visit the City of Oakville website at:
http://www.oakville.ca/taxpayment.htm
Do you need to enrol in the City of Milton’s Pre-authorized Tax Payment Plan
Visit the City of Milton website at:
http://www.milton.ca/residents/tax/taxpayment.htm
Do you need to enrol in the City of Toronto’s Pre-authorized Tax Payment Plan
Visit the City of Toronto website at:
http://www.toronto.ca/taxes/property_tax/forms.htm#plan
For an in-depth document of the ABCs of mortgages, you can
Visit the Financial Consumer Agency of Canada or FCAC website to read it:
http://www.fcac-acfc.gc.ca/eng/publications/mortgages/Amortization_e.asp
Genworth Financial publishes daily mortgage rates on their website at:
http://www.genworth.ca/mi/eng/misc_pages/interest_rates.asp
Equifax Canada
Order a copy of your consumer credit report:
http://www.equifax.com/home/en_ca
Do you wnt your home assessed for its energy efficiency?
The Energuy
Do you want to see what grants, rebates, discounts and incentives are available
If you make your home more energy efficient?
Please visit the Natural Resources Canada website at:
http://oee.nrcan.gc.ca/corporate/incentives.cfm
This blog was written by Elizabeth Blair, a Licensed Mortgage Agent with Mortgage Edge in Richmond Hill, Ontario. Elizabeth services mortgage clients in Mississauga and all over the Greater Toronto area.
You can contact Elizabeth directly by phone at (905) 510-5785
by email at eblair@mortgageedge.ca
or you visit her website at: http://www.missmortgage.ca
Elizabeth is licensed with the Financial Services Commission of Ontario and is also a Member of IMBA (the Independent Mortgage Brokers Association of Ontario) www.imba.ca
Mississauga – What exactly is mortgage loan insurance?
As a first time home buyer, you may have heard that you may have to pay a mortgage insurance premium.
You will have to obtain mortgage loan insurance when you purchase a home and if your downpayment is LESS than 20%. Remember that lenders do reserve the right to insure your mortgage even if your downpayment is greater than 20% and this decision is often based on the risk associated with the financing. The key players that provide mortgage insurance in Canada today are CMHC, Genworth and AIG United Guaranty. The newest insurer to join is AIG United Guaranty. There may be more mortgage insurers joining the industry who may apply to the OFSI (Office of the Superintendent of Financial Institutions) to become mortgage insurers in Canada. More competition will result in more choice and lower premium costs for Canadians who want to purchase a home.
Here is a sample breakdown to help you understand how a mortgage insurance premium is calculated for a buyer who wants to purchase a home with a 5% downpayment.
|
Price of home being purchased |
(A) $242,000 |
|
Your saved 5% downpayment |
(B) $12,100 |
|
Price less downpayment (A) – (B) = |
(C) $229,900 |
|
Insurance Premium calculated for a 5% downpayment is 2.75% of amount $229,900
Total mortgage loan insurance premium is à |
(D) $6,322.25 |
|
Total amount advanced to you by the Lender total mortgage amount (C) + (D) = |
$236,222.25 |
|
The lender who is reviewing your mortgage application will include the mortgage insurance premium (on your mortgage commitment) as part of your total mortgage loan and this is repaid over the term of your mortgage loan. You can also pay this premium up-front, on closing date, if you prefer.
|
|
It is also important to point out that the mortgage loan insurance premium (calculated in example above) is also subject to provincial sales tax and this tax amount is not included in the total loan amount therefore you would have to pay this sales tax on your closing date.
Here below is a table that gives you an idea on what the typical mortgage loan insurance premiums are, but you should go directly to the various insurer websites to check the current insurance premiums when you are ready to buy.
The mortgage loan insurance premium charges are calculated as follows:
|
Financing Needed on the Purchase |
Insurance Premium
|
|
Up to and including 65%
|
0.50 %
|
|
Up to and including 75% |
0.65 %
|
|
Up to and including 80% |
1.00 %
|
|
Up to and including 85% |
1.75 %
|
|
Up to and including 90%
|
2.00 %
|
|
Up to and including 95%
|
2.75 %
|
You may be asking, so why do I need mortgage loan insurance, is it mandatory, and who does it protect?
Why do I need mortgage loan insurance? It is the lender who requires the mortgage loan to be insured. The mortgage lender passes along the cost of insuring that mortgage, along to the consumer.
Is mortgage loan insurance mandatory? No. There are a few mortgage lenders, on the market, who may provide you with mortgage financing without mortgage loan insurance but there will most certainly be a much higher interest rate offered as well as other administrative fees that could be added to the mortgage loan amount. These other mortgage lenders can be accessed through the mortgage broker community.
Who does mortgage loan insurance protect? Mortgage loan insurance is required by the mortgage lender because it protects the lender, if, the borrower, for some reason, cannot pay their mortgage.
This blog was written by Elizabeth Blair, a Licensed Mortgage Agent with Mortgage Edge in Richmond Hill, Ontario. Elizabeth services clients in Mississauga and all over the Greater Toronto area.
You can contact Elizabeth directly by phone at (905) 510-5785
by email at eblair@mortgageedge.ca
or you visit her website at: www.missmortgage.ca
Elizabeth is licensed with the Financial Services Commission of Ontario and is also a Member of IMBA (the Independent Mortgage Brokers Association of Ontario) www.imba.ca
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