FAQ’s

How do I apply for a mortgage?: On our On-Line application (click here), or by phone, call Toll Free at 1-877-403-0099, to arrange an appointment with one of our Mortgage Agents. Appointments are available at our office or in the convenience of your home or office.

Why use Champion Mortgage Inc. ?: Walking into any financial institution to negotiate a mortgage on your own won't guarantee you the lowest rates. In fact, you are likely to come away with a rate that is much higher.
We have access to over 33 lenders including the Major Banks, Trust Companies, Mortgage Companies and Private Lenders, not just ONE. We show you ways to Save Money, Build Equity, and Shorten the Life of Your Mortgage. Champion Mortgage Agents will select an appropriate Lender with rates and features that Best Suits YOU!

What is a Conventional Mortgage?: A mortgage that does not exceed 80% of the appraised value or purchase price of the property whichever is less. Additional mortgage insurance fees are not incurred in this situation

What is a High Ratio Mortgage?: A mortgage which exceeds 80% of the appraised value or purchase price of the property whichever is less. This type of mortgage must be insured against payment default by Canada Mortgage and Housing Corporation (CMHC) or an approved insurer. This insurance fee is added on to the mortgage amount.

How much of a down payment do I need when purchasing a home?

You can purchase a home with no money down but certain conditions apply. Additional payment default insurance fees are incurred in this situation. This is a High Ratio Mortgage.

Most buyers put a minimum of 5% down payment on a new purchase upon qualification. Additional payment default insurance fees are incurred in this situation. This is a High Ratio Mortgage.

If you put down 20% of the purchase price or appraised value of your home whichever is lower then this would be a Conventional Mortgage and no payment default insurance fee is involved.

What does CMHC mean?: Canada Mortgage and Housing Corporation.

What is CMHC Mortgage Loan Insurance?

Lenders typically require mortgage loan insurance when homebuyers make a downpayment of less than 20% of the purchase price. Mortgage loan insurance helps protect lenders against mortgage default, and enables consumers to purchase homes with little or no downpayment -- with interest rates comparable to those with a 20% downpayment.

As with any insurance, there are insurance premiums to be paid. The amount of the premium varies and can range between 0.65% and 2.75% depending upon how much of the purchase price / home value is financed with a mortgage loan.

Mortgage loan insurance is not to be confused with mortgage life insurance which guarantees that your remaining mortgage at the time of your death will not be a burden to your estate.

What fees in relation to my mortgage will I be expected to incur?

1. Champion Mortgage Inc. does not charge a fee for arranging your mortgage. In most cases Champion is compensated by the Lender not you. When arranging a Second or Third Mortgage or if you have bruised credit and in some special circumstances then fees may be involved.

Common fees, when acquiring a mortgage, are:

2. Appraisal Fee. A new appraisal of your property could be required.

3.Legal Fee. The new mortgage amount must be registered on title in most cases.

4. High ratio fee. If your mortgage becomes a high ratio mortgage then there will be an additional CMHC insurance fee (mortgage default insurance) which is added on to the top of your mortgage. As PST is applicable on insurance fees you will be responsible to pay the PST on that insurance fee at the time your funds are advanced.

5. Title Insurance.

Why do I need an Appraisal of my property?: The Lender requests an appraisal of your property to determine the value to base their lending criteria on. The Lender takes the appraised value or the purchase price whichever is less.

What is a Credit Report?

A Credit Report is a mandatory requirement for all Lenders. It tells the Lender how good you are at meeting your debt obligations.
The Better your Credit / the Higher your Beacon Score.
Your beacon score is determined by your ability to repay loans and credit cards on a timely basis. It is very important to meet your payment deadlines and make those monthly payments even if you intend to pay off a credit card or loan a few months down the road. Do not skip or miss payments.

Can I change my current mortgage to another Lender?: In most cases you can. But if the term of your current mortgage has not ended you are usually subject to a 3 month interest penalty or an interest differential whichever is greater.
If your current mortgage is coming up for renewal you can switch/transfer to a new Lender in most cases at no cost to you. This can be arranged as early as 120 days before the term of your mortgage ends, (maturity date).

Do I have to change Banks?: Absolutely not. You do not have to change Banks. Your mortgage payments can be automatically withdrawn from almost any account.