Carol Plaisier, CFP®, FMA, AMP

Investment Advisor, HollisWealth, a division of Industrial Alliance Securities Inc.
Insurance Advisor, Hollis Insurance Agency Ltd.

Oceanside's Financial Expert, With Over 30 Years Experience

Carol Plaisier

Oceanside's Financial Expert

Carol Plaisier - Financial and Mortgage Expert

Mortgage Reports

Listed below are a number of reports which will help in your mortgage research. If you have a specific question about mortgages or financing, feel free to contact me at carolplaisier@invis.ca. To receive any of the free reports just fill out the form below.

Report Type

Mortgage Glossary

Accredited Mortgage Professional (AMP)

The Accredited Mortgage Professional (AMP) is Canada’s national designation for mortgage professionals. Launched in 2004, the AMP was developed by CAAMP as part of an ongoing commitment to increasing the level of professionalism in Canada’s mortgage industry through the development of educational and ethical standards.

Adjustments on Closing

There are two types of adjustments for which a buyer can be charged on closing;

Prepaid services. Where the sellers have prepaid property taxes or certain utilities, the buyers can be charged for the amount of prepayment on a pro-rata basis, depending on the date of occupancy. For example, if the sellers have paid the property taxes to the end of the year, and the sale closes on October 15th, the purchasers will be charged with an adjustment of 77/365’ths (the number of days remaining in the year) of the total paid for the year.

Interest. This is the amount of interest required to be prepaid up to the Interest Adjustment Date (IAD). IAD is the point at which the mortgage interest starts accumulating “in arrears”. In Canada all mortgage interest is calculated and paid after the period to which it applies. This differs from the way in which rental and lease payments are calculated, which is “in advance”. The good news on this one is that if you prepay for say 3 weeks you won’t have to make your first payment for almost two months. Also, if you take a biweekly payment term, the longest interest adjustment period is less than two weeks, by definition.

AIG United

One of Canada’s private mortgage insurers. For more details see Mortgage Insurance.

Amortization

The process of paying off the principal balance owed of the mortgage through scheduled, systematic repayments of principal and extra payments of principal at irregular intervals. Usually associated with a target period (the standard being 25 years) over which the initial blended payment is calculated. The maximum amortization period available in Canada is 35 years.

Appraisal

This is an estimate of the current value of the property for the lender (the ‘subject property’), using one or both of the following techniques;

Market value comparison approach: The majority of residential appraisals use this technique, comparing recent sales of similar properties (‘comparables’ or ‘comps’ in real estate jargon) and adding and subtracting the differences in value of the same features in the subject property. For example, if a house of the same size on the same street and in the same condition as the subject property recently sold for $200,000, but this ‘comparable’ had a triple garage and a finished basement and the ‘subject’ does not; the appraiser calculates the market value of these features (say, $12,000 in total) and deducts this amount from $200,000, giving an ‘adjusted value’ of $188,000. This is usually done with at least three ‘comparables’ and either averaged or the middle (‘median’) value used.

Depreciated cost approach: This technique is a supporting measurement of value used by many appraisers, whereby the land value is estimated and added to an estimate of the depreciated building value. Where there are few comparables available, relatively more weight might be given to this method.

Assessment

The “assessed” value of a property is a historical, static estimate of the value of your property used by a municipal (local) government as a basis for calculating annual property taxes. An “assessment notice” from the municipality contains the “assessed value” and when multiplied by the current “mill rate” the property taxes for the year can be calculated. In some municipalities, the mill rate is provided on the assessment notice and in others it is provided separately

Assignment of Interest

Most Provinces allow a legal assignment of interest in a mortgage to have full legal effect without having to discharge and re-register the existing one. This is particularly useful in:

  • Switch situations, where the costs of transferring lenders would otherwise be very high.
  • Second mortgage situations where a postponement may be difficult to obtain.

Assumable Mortgage

The A mortgage which a qualified buyer can take over from the current owner of a property upon its sale. Assuming a mortgage can provide a buyer with a below market interest rate, (if rates are now higher), as well as saving on the legal costs of creating and registering a whole new mortgage. “Assumption” entails a simple amendment to the mortgage document registered on title (see “switch”).

Blend and Extend

A closed mortgage can often be “opened” for the purpose of extending the term. Most lenders will blend the penalty for breaking (usually an Interest Rate Differential) with the rate for the new extended term. The idea is to get a lower rate and protect against rate increases in the future

Buy-down

“Paying down” the mortgage rate by paying the lender a premium at time of funding. This is often used as a marketing feature by new home builders, particularly on high ratio second mortgages.

Buyer’s Agent

A Realtor who acts contractually on behalf of the buyer. Traditionally, and still in most cases, the Realtor is the Agent of the Sellers and is paid by them out of the proceeds of the sale. A Buyer’s Agency Agreement allows a Realtor (with full disclosure to the sellers or their agent) to negotiate on behalf of the buyer, with no legal conflict of interest. The seller still pays the Buyer’s Agent fees, but this is always spelled out and acknowledged in the Offer to Purchase.

Canada Mortgage and Housing Corporation (CMHC)

A federal crown corporation which administers the “National Housing Act” (NHA), and through which all federal housing policies and programs are implemented.

Cap Rate

The highest rate that a borrower will pay within a defined time period. Examples are; the rate committed on a commitment letter or a mortgage pre-qualification (also known as a “rate hold”); or the maximum rate that will be paid by the borrower during the term of a “protected variable rate mortgage”. A lender will usually have to incur a cost to insure against rate increases during the capping period. This insurance is called a “hedge”.

Closing

The final exchange of consideration and legal completion of a transaction, involving either a house purchase, a mortgage registration, or both.

Closed Mortgage

A mortgage whose terms state that it cannot be paid out, even with a penalty, unless the lender agrees. In some cases, a closed mortgage may be discharged at a defined cost, usually Interest Rate Differential (IRD), but sometimes with a punitive penalty such as full interest to maturity.

Commitment Letter

A written commitment from a lender to lend mortgage funds to specific borrowers as long as certain conditions are met within a specified time period before closing. A key component of the commitment, particularly in a period of volatile interest rates, is the “rate hold”, where a lender may “cap” a rate for a defined period, such as 60 days or 90 days. Commitments on financing for new homes, which usually have longer closing dates, can be negotiated between the lender and the builder and be held for as long as 6 months, and even a year.

Compliance Letter

Required in many municipalities throughout Canada before a property transfer can take place. This is an acknowledgement from the building department that the property either has, or is clear of outstanding work-orders. Work-orders are specific clean-up or fix-up requirements that the owner must complete, particularly before a transfer of ownership.

Connection Charges

Some local utility companies (hydro, gas, oil) charge a fee on closing to connect new buyers up to their service. More normal, however, is an extra charge on the first billing.

Conventional Mortgage

A mortgage usually amounting to 80% (Loan to Value ratio) or less of the value of the property.

Convertible Mortgage

This allows you to convert your mortgage to a new one of longer term while it is still in effect.

Credit Report

A record of an individual’s payment history available at a credit bureau. Individuals can order a copy of their own report by contacting their local bureau.

Default

Failure to make monthly mortgage payments as agreed, or to meet certain other terms of a mortgage agreement.

Double-Up

This feature (not offered by all lenders) allows you to double up your mortgage payments anytime without penalty. This feature is often associated with the ability to “skip” an equivalent number of payments. This can be used either to accelerate the pay-off of a mortgage (as it is an enhanced prepayment privilege) or to manage a volatile cash flow. For example, commission-based individuals such as Realtors could “double-up” with each commission cheque, and “skip” during low cash flow periods.

Down Payment

The amount of cash paid towards the purchase transaction by the buyer of a home. This is also known as the purchaser’s initial “equity” in the property.

Equity

The difference between the value for which you could sell your property and what is owed against it. There is an important distinction from “down payment” to a lender. For example, if a buyer purchases a home without a down payment, he/ she can have “equity” if the value of the property quickly goes up.

First Mortgage

First Mortgage A mortgage registered before all others on title. Gives the lender a primary lien/charge against your house and property that has precedence over all other mortgages. Priority is determined by the date and time registered, so a first mortgage was literally and legally registered “first”. A new first mortgage can therefore only be registered as a “first” mortgage upon the discharge of an existing one if the holder of a second mortgage “postpones” (i.e., “puts back in time”) to a time immediately following the registration of the new first mortgage.

Five-Percent Down Program

This allows buyers to obtain up to 95% financing on properties up to a certain value. The loan must be insured against default by Genworth , AIG or CMHC (Canada Mortgage and Housing Corporation). This maximum home value will vary according to location (local Realtors should know the applicable limit) and eligibility can vary with personal circumstances.

Genw

orth Mortgage Insurance Corporation

One of Canada’s private mortgage insurers. For more details see Mortgage Insurance.

Gross Debt Service Ratio (GDS)

The percentage arrived at by dividing your monthly shelter costs (principal, interest, property taxes, heating and half of condo fees) by your gross monthly income and multiplying by 100. This is used by all lenders as a yardstick by which to measure the ability of a borrower (or borrowers) to make mortgage payments. For example, most lenders require that this ratio be no more than 32% for a particular application, while others allow higher limits.This is also the maximum qualifying GDS for most default insurance applications.

High-Ratio Mortgage

A mortgage which is greater than 80% (Loan To Value ratio) of the value of the property. Normally requires insurance to be paid to protect the lender. (see Mortgage Insurance)

Home Inspection Report

A report commissioned by a property owner or purchaser, usually to verify the condition of a property prior to the “firming up” of a Real Estate transaction. The scope and detail may vary, but most reports indicate the specific problem and the cost to repair. Unfortunately, no licensing is required, and this service is not specifically regulated other than by general consumer protection legislation. The best safeguard against inadequate work is to ask for the resume of the Inspector, and if possible check references from previous customers.

Interest Rate Differential

A penalty for early prepayment of all or part of a mortgage outside of its normal prepayment terms. This is usually calculated as “the difference between the existing rate and the rate for the term remaining, multiplied by the principal outstanding and the balance of the term”.

Example:

  • $100,000 mortgage at 9% with 24 months remaining.
  • Current 2 year rate is 6.5%.
  • Differential is 2.5% per annum.
  • IRD is $100,000 * 2 years * 2.5% p.a. = $5,000.

Land Transfer Tax (LTT)

A tax payable to the Provincial Government by the purchaser upon the transfer of title from a seller.

Lien

This is a claim made against a property for the payment of a debt or obligation related to the property or its owners.

Loan-to-Value Ratio (LTV)

The percentage of the value of the property for which a mortgage is required. This ratio is important in determining whether or not default insurance is required, and if so, what the cost of that insurance will be (see “Mortgage Insurance”) For example, if the property value is $200,000, the down payment available is $20,000 and the required mortgage is $180,000. The LTV is $180,000/$200,000 or 90%.

Mill Rate

A rate that multiplies by each one thousand dollars of property assessment to give the annual real estate taxes.

Mortgage Broker

A registered agent who negotiates with lenders on behalf of a borrower to obtain the best overall mortgage for that borrower’s circumstances. Mortgage Brokers are particularly useful in financing “non standard” situations which cannot be funded by a major national lender. This is possible because a Mortgage Broker has access to lenders who do not advertise nationally or operate retail locations.

Mortgagee

Also known as the “lender” — the funder and holder of the mortgage.

Mortgage Insurance

If your down payment is less than 20% of the purchase price of the property, the lender is going to require either private mortgage insurance or public mortgage insurance through Genworth, AIG or Canada Housing Mortgage Corporation (CMHC). The fee is calculated as a percentage of your mortgage. This is known as default insurance. (Please note that Invis will calculate this amount for you automatically if your mortgage falls into this category.)

Multiple Listing Service (MLS)

A service of a local Real Estate Board which publishes and exchanges details of properties registered with them. While this used to be for the exclusive use of registered Realtors, it is now possible for a private individual to “list” a property without committing to pay a Realtor a “listing commission” if the property sells. The majority of properties sold in Canada are sold through the local MLS.

Municipal Levies

Special levies can be charged by municipalities to recover the cost of special services, if these services cannot, for some reason, be funded out of general revenues, or apply primarily to home buyers. Examples: Water meter installation; road improvements, sewer improvements.

Open Mortgage

This allows you to pay back the borrowed funds without notice or penalty. There are two types of open mortgages:

Fixed rate mortgages; the term is usually fairly short (6 months to a year) and the interest rate will be higher than on a closed mortgage.

Variable Rate Mortgages (VRM’s) are usually open (and are “collateral” type mortgages) but recently, several institutions have introduced closed versions.

PITH

Principal, Interest, Taxes, Heating and half of Condo Fees, if applicable. Otherwise known as your “shelter expenses”. This is a basic component of the ratios used to determine whether or not you qualify.

Portable Mortgage

A mortgage which allows you to transfer the amount and terms over to a new property without cost or penalty. The mortgage will, of course, have to be registered on title of the new property, so strictly speaking it is not identical in all respects. While most mortgages have a portability feature, in the event you might need more money when you transfer the mortgage over to the new property, make sure you either have the right to blend in any new funds required, or can arrange the additional funds separately.

Prepayment Privilege(s)

The right to repay periodically more than the scheduled principal payment. Historically this was limited to a single annual payment on the anniversary date of no more than 10% of the original principal. In recent years, however, prepayment privileges have become more lenient, reflecting peoples’ desire to pay their mortgages off on an accelerated basis. See also Double-Up.

Prepayment Penalty

If your mortgage is not fully open, you may be charged a penalty if you want to pay off all or part of your mortgage before the end of the fixed term. The normal prepayment penalty is the greater of three months’ interest or the Interest Rate Differential (IRD) on the amount to be prepaid. CMHC (for insured mortgages) and a few of the major lenders set the maximum penalty at 3 months interest after the mortgage has been in effect for three years, regardless of the number of times it has been renewed.

Principal

The amount of money owing on your mortgage, including accrued unpaid interest.

Refinance

Obtaining a new mortgage on an existing property. You might be looking for more money, a better rate, or different prepayment terms.

Registration Fees

Fees paid to the provincial government for recording a title transfer, mortgage registration or other instrument such as an Assignment or Lien with the local authorities.

Registered Retirement Savings Plan (RRSP)

A Federal Plan which allows a taxpayer to contribute approximately 18% of earned income — to a maximum of $13,500 into a retirement plan “tax free”. If the taxpayer has already paid tax on personal income, then the RRSP contribution (which can be made until March 1st of the year following the year in which the income was earned and taxed) can result in a significant tax rebate.

Since RRSP’s can be caught up retroactively, this facility and the large cash refunds it can generate are central to numerous Realtor-driven programs designed for first time buyers.

Simple Interest

Interest which is computed only on the principal balance. It is not compounded by calculating interest payable on accrued interest.

Survey

The legal written and/ or mapped description of the location and dimensions of your land. The survey should also show the dimensions and placement on the lot of any structure, including additions such as pools, sheds and fences. An up-to-date survey is often required by a lender as part of the mortgage transaction.

Switch

This is the term almost universally applied to changing lenders at the end of a term, when the mortgage becomes “open”. Most lenders will now pay all of the costs of a “switch.” (as well as giving them a reduced rate to lure them away from a competitor)

Tax Certificate

At the time of a sale, the lawyer for the buyer must confirm that local taxes have been paid up to date. If they are, a Tax Certificate is issued, from which any adjustments can be made — usually requiring the buyer to compensate the seller for any prepaid taxes. If they are not up to date, the municipality requires that the seller pay them off from the proceeds of the sale. If there are insufficient proceeds, then it may fall upon the buyer to pay them.

Title Insurance

Insurance offered by Title Companies to protect a landowner, and thus the mortgage lender against any “clouds” or legal questions on the title to the real estate, or of legal priority of the mortgagee.

Total Debt Service Ratio (TDS)

The percentage arrived at by dividing your monthly shelter costs (principal, interest, property taxes, heating and half of condo fees) PLUS all other monthly debt obligations by your gross monthly income and multiplying by 100. This is used by all lenders as the “upper limit” yardstick by which to measure the ability of a borrower (or borrowers) to make mortgage payments. For example, most lenders require that this ratio be no more than 40% for a particular application, with some as low as 37%. 40% is also the maximum qualifying TDS in most applications for default insurance.

Undertaking

This is a promise by a Lawyer to ensure that certain conditions (usually of the lender) are met (usually after closing, due to time constraints). The best example is the undertaking to register a discharge of an old first mortgage after the new one has been registered, because there is simply not enough time to do so at closing. It also governs such closing dynamics as releasing funds before a new mortgage document is officially registered.

Underwriting

The process of deciding whether or not to lend you money (or how much to lend you) based on all the information you have given the lender. Every lender has a different underwriting process and lending criteria which differ to some (usually small) extent from other lenders.

Variable Rate Mortgage (VRM)

The interest rate is usually compounded monthly and fluctuates with the prime rate at the chartered banks. In most, but not all cases, the VRM is fully open.

Verification of Employment

The lender will sometimes contact an applicant’s employer in order to verify information provided in a mortgage application or a job letter; your income structure, length of employment, position, and so on.

Work Orders

Municipal by-laws (“zoning” by-laws) require among other things that residential property be maintained in a safe and habitable condition, and that a property’s use conform to specific requirements (no illegal basement apartments, satellite antenna, etc.).

Mortgage FAQ

If you have any questions about mortgages visit our Frequently Asked Questions page, or contact Carol directly at (250) 248-5997 or send her an e-mail.




What paperwork do I need to provide for approval of my application?

What paperwork do I need to provide for approval of my application?

What do I need to bring to my initial consultation?

What do I need to bring to my initial consultation?

How does bankruptcy affect my ability to qualify for a mortgage?

How does bankruptcy affect my ability to qualify for a mortgage?

Depending on the circumstances surrounding your bankruptcy, generally some lenders will consider providing mortgage financing.

How much can I afford to pay for a home?

How much can I afford to pay for a home?

To determine ‘affordability’ you will first need to know your taxable income along with the amount of any debt outstanding and the monthly payments. Assuming it is your principal residence you are purchasing, calculate 32% of your income for use toward a mortgage payment, property taxes and heating costs. If applicable, half the monthly condominium maintenance fees will also be included in this calculation.

Second, calculate 40% of your taxable income and deduct all of your monthly debt payments, including car loans, credit cards, lines of credit payments. Both of these two calculations will be used to help determine how much of your income will be used towards housing payments, including your mortgage payment. The calculations are based on lenders’ usual guidelines.

In addition to considering what the ratios say you can afford, make sure you calculate how much you think you can afford. If the payment amount you are comfortable with is less than 32% of your income you may want to settle for the lower amount than stretch yourself financially. Make sure you don’t leave yourself house poor. Structure your payments so you can still afford simple luxuries.

What is the minimum down payment needed to buy a home?

What is the minimum down payment needed to buy a home?

A minimum down payment of 5% is usually required to purchase a home, but there are exceptions. For instance at Invis we have relationships with lenders that will actually lend you 100% of the purchase price or appraisal value of your home. However to qualify for this your credit must be clean and in good standing. Regardless of the down payment chosen you must be able to show that you can cover the applicable closing costs (Legal fees, appraisal fees and a survey certificate when appropriate).

What can I use for a down payment?

What can I use for a down payment?

In most cases:
  • Registered Retirement Savings Plans (RRSP's) may be used as a down payment up to a maximum of $20,000 and is not subject to income tax if repaid within 15 years.
  • Gift from immediate family
  • Accumulated savings
  • Sale of existing home
  • Equity

What is a high-ratio mortgage?

What is a high-ratio mortgage?

A high-ratio mortgage is one where the amount to be borrowed is greater than 80% of the purchase price or appraised value. High-ratio mortgages generally require mortgage loan insurance provided by either CMHC, a crown corporation or Genworth, a private insurer.

The mortgage loan insurance premium paid to CMHC or Genworth protects the lender in case of default in the event the mortgage is not repaid, and the bank has to take back the property. The benefit to the borrower is that they can purchase a home with less than 20% down, to as low as 5% down. The insurance premium is paid by the borrower and can be added directly into the mortgage amount. This is not the same as mortgage life insurance.

What is a conventional mortgage?

What is a conventional mortgage?

A conventional mortgage is usually one where the down payment is equal to 20% or more of the purchase price; a loan to value of less than 80%; and does not normally require mortgage insurance.

What is mortgage loan insurance?

What is mortgage loan insurance?

Mortgage loan insurance is provided by Canada Mortgage and Housing Corporation (CMHC), a crown corporation, or Genworth and AIG UNited, approved private corporations. This insurance is required by law to ensure lenders against defaults on mortgages with a loan to value ration of more than 80%. The insurance premiums, ranging from .50% to 2.75% are paid by the borrower and can be added directly into the mortgage amount. This is not the same as mortgage life insurance.

Should I wait for my mortgage to mature?

Should I wait for my mortgage to mature?

No. Allow me to to begin shopping around for an interest rate at least 120 days before your mortgage matures. Lenders will often guarantee you an interest rate as much as 120 days before your mortgage matures. As long as you are not increasing your mortgage, they will cover the costs of transferring your mortgage as well. This means a rate promised well in advance of your maturity date, which eliminates any worries about higher rates and if rates drop before the actual maturity date, the lender will adjust your interest rate to the lowest it has been during the 120 days since the application was submitted.

Are there any fees involved with a mortgage consultant?

Are there any fees involved with a mortgage consultant?

In most instances, there are no fees involved. Mortgage consultants receive a commission from the lending institution that receives and funds your mortgage application. If you do not qualify normally due to bad credit, job instability or other unseen factors there may be a brokerage fee, but it will be disclosed to you prior to proceeding.

Why use a mortgage consultant as opposed to a bank?

Why use a mortgage consultant as opposed to a bank?

When dealing with a bank, you are limited to their product line, which may not be the best product for you. But they won't tell you that, because it's their job to sell you their products. As well, the bank has to look out for their bottom line and at times clients suffer by getting much higher rates than they deserve.

When dealing with a mortgage consultant like me, it's much different - a consultant can provide you with a wider range of mortgages designed to fit your needs, and you can benefit from lower rates without the haggling. You can also rest assured that I will be fully looking out for your best interests, and you can expect the highest level of customer service from me, as a result of my long experience in the financial industry.

Costs to Consider

Buying a home costs more than the offer you make. There are numerous other expenses that will add to the amount that you'll need to spend. This purchase price checklist outlines all the costs you can expect. Please note that they can vary by province and are subject to change.

Purchase Price

The starting point in your calculation... if you're like most first-time home buyers, you'll need a mortgage for the majority of this!

Lawyer's Fees

Although fees vary across the nation, it can cost you up to $2,500 depending upon whether you are re-mortgaging your existing home or buying new. As prices do vary, INVIS has negotiated with the Canadian Lawyers Network (CLN) to provide superior service at a reasonable price. Contact us or your realtor to help with this process.

Land Transfer Tax

A tax payable to the Provincial Government by the purchaser upon the transfer of title from a seller. This amount is usually not expected by most homeowners. It can be sizeable. The amount varies from province to province and is generally a percentage of your purchase price. We can advise you.

Registration Fees

Fees paid to the provincial government for recording a title transfer, mortgage registration or other instrument such as an Assignment or Lien with the local authorities.

High Ratio Insurance

Must be purchased if you are buying a home for less than 20% down. A sliding fee scale applies, depending on the percentage of the purchase price required in a first mortgage (some minor exceptions).

Compliance Letter

Obtained by your lawyer and required in many municipalities throughout Canada before a property transfer can take place. This is an acknowledgement from the building department that the property either has, or is clear of outstanding work-orders. Work-orders are specific clean-up or fix-up requirements that the owner is legally required to do, and which must be completed before ownership can be transferred.

Tax Certificate

Obtained by your lawyer at the time of sale to confirm that local taxes have been paid up to date. If they are not up to date, the seller is required to pay them from the proceeds of the sale. If there are insufficient proceeds, then you may be legally required to pay the outstanding taxes. If, on the other hand, taxes have been prepaid, you may have to compensate the seller for them.

Provincial "New Home Warranty Program" premiums — New Homes Only!

A third party (provincial) warranty program between a builder and a buyer. With the exception of Ontario and Quebec, membership in such a program is voluntary for the builder. Through these programs, your home is guaranteed against defects for at least one year. All homes with a high-ratio insured mortgage (greater than 80% loan to value) must be enrolled in such a program.

Mortgage Appraisal and Application Fees

Application fees apply on high ratio mortgages only while appraisal fees are common to most mortgages. Generally $150 — $235 each would apply.

Home Inspection

A report commissioned by a property owner or purchaser, usually to verify the condition of a property prior to the "firming up" of a purchase agreement. The scope and detail may vary, but most reports outline any particular problems and associated repair costs. Unfortunately, no licensing is required, and this service is not specifically regulated other than by general consumer protection legislation. The best safeguard against inadequate work is to ask for the resume of the Inspector, or select a name firm, such as Carson Dunlop, who stand by their work.

Land Survey

The legal written and/or mapped description of the location and dimensions of your land. The survey should also show the dimensions and placement on the lot of any structure, including additions such as pools, sheds and fences. An up-to-date survey is often required by a lender as part of the mortgage transaction.

Title Insurance

New to Canadian consumers over the last few years is the introduction of title insurance into the home buying process. Title insurance can be purchased by home buyers to protect against potential deficiencies in a number of areas, such as the land survey. There are numerous benefits to this product, and you should consult your lawyer or Ann Marie today.

Connection Charges

Some local utility companies (hydro, gas, oil) charge a fee on closing to connect new buyers up to their service. More common, however, is an extra charge on the first billing.

Property Tax and Prepaid Utilities Adjustments

If the previous owner prepaid property taxes or other utilities, they will be credited the prepaid portion on closing. If they paid all their taxes by April, expect a large adjustment cost on closing!

Interest Adjustment (IA)

If you arrange to make your mortgage payments monthly on the first day of the month, and your transaction closes after the first day of the month, your lender will charge you interest on closing to the next interest date, called the Interest Adjustment Date (IAD), when your payment cycle will commence. This can be a sizeable amount, but it is the correct interest you should pay. For example, close on June 15th, pay 15 days interest on closing and start payments on August 1st.

Mortgage Calculators

Home Purchase Calculators

Mortgage Qualifier: The first steps in buying a house are ensuring you can afford to pay at least 5% of the purchase price of the home as a down payment and determining your budget. This calculator steps you through the process of finding out how much you can borrow. Fill in the entry fields and click on the payment schedule button to see a complete amortization schedule of your mortgage payments.

Mortgage Calculator: Use this calculator to generate an amortization schedule for your current mortgage. Quickly see how much interest you will pay, and your principal balances. You can even determine the impact of any principal prepayments! Press the report button for a full amortization schedule, either by year or by month.

Mortgage Refinance Interest Savings: How much interest can you save if you refinance your mortgage? This calculator helps you find out! Enter the specifics about your current mortgage, along with new loan amortization, rate, and closing costs. We will then determine how much interest refinancing can save you.

Net Worth: Your net worth is the value of all of your assets, minus the total of all of your liabilities. Put another way, it is what you own minus what you owe. If you owe more than you own, you have a negative net worth. If you own more than you owe you will have a positive net worth. This calculator helps you determine your net worth. It also estimates how your net worth could grow (or shrink!) over the next ten years.

Rent or Buy Analyzer: Should you rent or should you buy your home? It takes more than looking at your mortgage payment to answer this question. The first steps in buying a house are ensuring you can afford to place at least 5% of the purchase price of the home as a down payment and determining your budget. This calculator helps you weed through the fees, taxes and monthly payments to help you make a good financial decision.

Mortgage Compare: Determining which mortgage provides you with the best value involves more than simply comparing monthly payments. Use this calculator to sort through the monthly payments, fees and other costs associated with getting a mortgage. By comparing these important variables side by side, this calculator can help you pick the mortgage that works best for you. 

Refinance Calculators

Mortgage Refinance Calculator: Use this calculator to see how much interest you can save by refinancing your mortgage!

Interest Only: Use this calculator to generate an amortization schedule for a interest only mortgage. Quickly see how much interest you will pay, and your principal balances. You can even determine the impact of any principal prepayments! Press the report button for a full amortization schedule, either by year or by month.

Mortgage Payoff Calculator: Use this calculator to generate an amortization schedule for a interest only mortgage. Quickly see how much interest you will pay, and your principal balances. You can even determine the impact of any principal prepayments! Press the report button for a full amortization schedule, either by year or by month.

Bi-weekly Payment Calculator: This calculator shows you the possible savings by using an accelerated bi-weekly mortgage payment. Bi-weekly payments accelerate your mortgage payoff by paying 1/2 of your normal monthly payment every two weeks. By the end of each year, you will have paid the equivalent of 13 monthly payments instead of 12. This simple technique can shave years off your mortgage and save you thousands of dollars in interest.

Home Equity Calculators

Home budget: Managing your monthly budget can be difficult and frustrating. One of the most important aspects of controlling your budget is to determine where your money is going. This calculator helps you do just that. By entering your income and monthly expenditures, you can see how much you have left to save and where your money is being spent. In addition, you can click the 'View Report' button to compare your budget breakdown to our targets, which can help identify areas for improvement.

Net Worth Calculator: Depending on what finance strategy is best given your current situation, Invis’ Net Worth calculator will help you to see how your net worth will grow over the next ten years and assist you in making important mortgage decisions

Personal Debt Consolidator: Should you consolidate your debt? This calculator is designed to help determine whether debt consolidation is right for you. Enter your credit cards, auto loans and other installment loans balances by clicking on the "Enter Data" button for each category. Then change the consolidated loan amount, term or rate to create a loan that will work within your budget.

Credit Line: Use this calculator to determine the home equity line of credit amount you may qualify to receive. The line of credit is based on a percentage of the value of your home. The more your home is worth, the larger the line of credit. Of course, the final line of credit you receive will take into account any outstanding mortgages you might have. This includes first mortgages, second mortgages and any other debt you have secured by your home.

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HollisWealth: registered: is a division of Industrial Alliance Securities Inc. (iA Securities), a member of the Canadian Investor Protection Fund (CIPF) and the Investment Industry Regulatory Organization of Canada (IIROC). iA Securities is a trade name and business name under which Industrial Alliance Securities Inc. operates. This information has been prepared by Carol Plaisier, Investment Advisor for HollisWealth: registered:, a division of iA Securities, and does not necessarily reflect the opinion of iA Securities. The information contained in this document comes from sources we believe to be reliable, but we cannot guarantee its accuracy or reliability. The opinions expressed are based on an analysis and interpretation dating from the date of publication and are subject to change without notice. Furthermore, they do not constitute an offer or solicitation to buy or sell any the securities mentioned. The information contained herein may not apply to all types of investors. The Investment Advisor can open accounts only in the provinces where she is registered. For more information about HollisWealth: registered:, please consult the official website at www.holliswealth.com .www.carolplaisier.com  is a personal trade name of Carol Plaisier.HollisWealth: registered: is a division of Industrial Alliance Securities Inc. (iA Securities), a member of the Canadian Investor Protection Fund (CIPF) and the Investment Industry Regulatory Organization of Canada (IIROC). iA Securities is a trade name and business name under which Industrial Alliance Securities Inc. operates. This information has been prepared by Carol Plaisier, Investment Advisor for HollisWealth: registered:, a division of iA Securities, and does not necessarily reflect the opinion of iA Securities. The information contained in this document comes from sources we believe to be reliable, but we cannot guarantee its accuracy or reliability. The opinions expressed are based on an analysis and interpretation dating from the date of publication and are subject to change without notice. Furthermore, they do not constitute an offer or solicitation to buy or sell any the securities mentioned. The information contained herein may not apply to all types of investors. The Investment Advisor can open accounts only in the provinces where she is registered. For more information about HollisWealth: registered:, please consult the official website at www.holliswealth.com .www.carolplaisier.com  is a personal trade name of Carol Plaisier.
Insurance products are provided by HollisWealth Insurance Agency Ltd.Mortgages by referral provided by InvisFor further information, Carol can be reached at the HollisWealth office in Parksville at 250-586-1332 or by email at carol.plaisier@holliswealth.com