Purchasing a home is probably one of the largest and most important financial decisions you’ll make in your lifetime. The financial details can seem daunting, but that’s our specialty! Heritage Saving’s lending specialists have the knowledge and experience to help make your dream home purchase as easy and hassle-free as possible.

How to Apply?

We believe that the best way to apply for a mortgage is to talk to the person that will be approving your mortgage. That is why we don’t have online mortgage applications, and instead, we encourage you to drop in and see us or phone your local branch and talk to us. You can be sure your loan is approved quickly and by someone who knows your community.

At Heritage Savings, we love to assist first time home buyers, making it possible for our member to purchase their first home.

The purchase of your first home is an exciting and confusing process. Our friendly staff are able to help guide you along in securing your mortgage, helping you understand the different types of mortgages available, as well as option for repayment.

If this is your first time purchasing a home, make an appointment to speak with somebody in our loan department to see if we can pre-arrange your mortgage, allowing you to:

  • Determine your maximum debt load
  • Understand payment options
  • Secure a guaranteed rate for 90 days

In order to secure your mortgage, we need to complete an application that includes questions about your employment history, income, savings, investments, debts, and any other financial obligations. Gathering this information helps us determine your maximum mortgage amount.

Once your mortgage as been pre-arrange, you are able to begin house hunting without worrying about seeking approval from your financial institution.

Our experience in providing residential mortgages has allowed us create a list of suggestions to protect you during the home buying process:

  • Always ensure a home inspection is completed by an independent and qualified agent who is experienced in determining the overall health of the home.
  • Ensure your offer is conditional on financing
  • Obtain an existing survey, or ask the current owners to provide a survey, as it is required later int he mortgage process
  • Consider obtaining legal advice regarding particular details that are relevant to the offer to purchase.

When completing a mortgage application, here are the types of questions you will be asked and the documentation that may be required of you:

  • Current employer along with letter of employment
  • Length of employment?
  • Yearly income along with your Notice of Assessment and recent paystubs?
  • Proof of savings, investments and RRSPs?
  • What debt and other financial obligations you carry?
  • Is CMHC financing required? (If your downpayment is less than 20% of the purchase price)

Mortgage Protection

In the event of an untimely death or life changing accident, we offer Monthly Premium Mortgage Life & Disability Insurance, ensuring your loved ones and your estate is protected.

Q:What Is The Difference Between The Term Of A Mortgage And The Amortization Period?

A: The amortization period is the length of time it will take you to repay your mortgage. In most scenarios, the amortization period is 20 to 25 years. Your amortization period is broken down into smaller periods of time called terms. Your interest rate is set for that term and you negotiate your mortgage at the end of each term.

Q: What Is The Difference Between A Fixed Rate And A Variable Rate Mortgage?

A: A fixed rate mortgage means your interest rate is locked in for the full term of your mortgage. Your monthly payments of principal and interest are set throughout the length of the term.

A variable rate mortgage means that your interest rate fluctuations with Prime rate throughout your mortgage term. Your monthly payment changes as the amount that goes to interest changes with rate fluctuations.

Q: What Is The Difference Between Open And Closed Mortgages?

A: An open mortgage has no limit on prepayment. In fact you could pay the balance of your mortgage in full during your term with no penalty.

A closed mortgage is locked in for your term, meaning additional payments and paying your mortgage in full before the end of your term can result in penalties. Many closed mortgages offer accelerated prepayment privileges, which allow you to pay off your mortgage faster.

Q: What Is The Difference Between A Conventional Mortgage And A High Ratio Mortgage?

A: A conventional mortgage is when you have a down payment that is 20% of the purchase price of your home.

A high ratio mortgage is any purchase where the down payment is less than 20% of the purchase price. A high ratio mortgage must be insured through the Canada Mortgage and Housing Corporation or CMHC.

Q: What Are My Prepayment Options?

A: Prepayment options give you the power to pay your mortgage off faster. The ability to make additional payments on your mortgage is a key feature, helping you save thousands of dollars in interest costs, as your prepayment goes directly toward your principal balance owing.

Q: What Is Bridge Financing?

A: Often, when homeowners are selling one home and purchasing another, the dates the properties exchange hands don’t match. In those cases, a short-term loan to “bridge” or cover the time gap between the sale and purchase of properties.

Q: What Are Portable And Assumable Mortgages?

A: Having a mortgage that is portable and assumable can be an important feature when you are selling your home. If you currently have a mortgage that has excellent rates and features, this may entice potential buyers, as they have the option to take your mortgage over with the same terms and conditions.

A portable mortgage allows you to take the mortgage with you when you move, transferring the terms and conditions of your mortgage to your new home.

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