FAQs

You likely have questions, and we have answers.
Here are some of the most frequently asked mortgage questions from our clients. If you have other questions that are not answered here, please drop us a line!

Q: Why should I choose you over my own bank?

A: Banks are limited to their own product offerings and cannot access better solutions outside of their own organization. This means that the chances of you getting a best solution really depend on your bank being the most competitive lender in the marketplace. These days, this is one of the biggest reasons that borrowers are more likely to use our services because we have access to numerous lenders, which allows us to find you more, and better, options.

Furthermore, we don’t only help those that get denied by their banks, which is a common misconception. Although it’s true that we help community members that are declined by their banks, CMS also helps homeowners and homebuyers with great jobs, excellent credit, and have lots of equity in their homes.  Remember, we have access to a wider variety of solutions!

Q: Can I get a mortgage with bad credit? My bank, who I’ve been with for many years, has already declined to help.

A: Major banks are very particular about the applications and borrowers they approve. Remember, banks do not care about loyalty when their money is on the line. If they determine that your application is outside of their risk tolerance, then they may decline you – even if you have been a stellar client of theirs for years. Luckily, if your bank has denied you a mortgage approval based on your credit qualification, don’t worry, we specialize in getting you approved and making it work for you. We understand that your credit may not allow you to receive the traditional financing from your bank, but our lending partnerships with various institutions allow us to find opportunities to get the financing you deserve!

Q: What is Home Equity?

A: In the simplest of terms, your home equity is the difference between the value of your home and the sum of all existing mortgages and/or liens against your home. For example, if your home has a market value of $800,000 and the remaining debt to the property is $360,000, your Equity would, in this case be $440,000. Did you know that leveraging your home equity is one of the best ways to access immediate funds to be used towards your various personal or business needs?

Q: Why would I want to consider an Equity Take-Out over other types of loans?

A:  An equity take-out provides your home as collateral against which the loan is approved. This means that it is considered a ‘secured’ loan. Since the lending institution has collateral against the approved loan, they can offer much better interest rates as compared to the alternative unsecured loans you would otherwise need to consider. Ultimately there is a much lower perceived risk with secured loans than that of ‘unsecured’ loans. Overall, you can often borrow more money at a lower interest rate in order to service your intended goals for the use of those funds.

Q: I’m just calling around, what's the best rate you can offer me?

A: Qualifications have changed over the last 3-5 years with the addition of many lender requirements for default insurance…  and of course, everyone’s favorite “stress test” (*sarcasm*). There are also many variables within each application that we must understand before we can accurately provide you with the best rate that you qualify for. Most of our competitors advertise the ‘lowest rate’, which mislead borrowers to believe that there is one rate that applies to all. However, if you read the fine print, you’ll begin to understand that that the advertised lowest rate is not applicable to you. We call this ‘bait and switch’.

For example, the lowest rates in today’s market are applicable to borrowers that require a “high-ratio insured mortgage” for the purchase of their home. This means that borrowers must be purchasing and would need to put less than 20% on a purchase of less than $1 Million. However, you may be looking to refinance your existing mortgage, which then disqualifies you from those advertised rates. We choose not to bait and switch our clients with rates because it is poor practise. By that we mean, we will not promise a specific rate that we can offer you without assessing the factors that will affect the approval of that rate. No institution, brokerage or lender can accurately predict if you will qualify for their lowest rates without first determining your qualification for those rates. The best way to determine the best rate for YOU is to set up a consultation with us (5-10 minute phone call at most). Don’t worry, you won’t be wasting our time and we definitely won’t waste yours!

Q: What other factors should I consider when shopping for a mortgage?

A: A common misconception many borrowers have is placing a heavy emphasis on the importance of the “lowest rate.” Although this is our primary objective for you, there are other factors that may be considered equally important, depending on the circumstance of the borrower. Some mortgage products allow the borrower to make considerable prepayments against their mortgage balance without penalty, others give you a cashback options, excess funds for home improvements, etc. This is why it is important to speak with us so that we can fully understand your needs and in turn, educate you on the options best suited for you based on that understanding.

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