Frequently Asked Questions

1. Why should I use an Integrity Mortgage consultant?
2. What is the minimum down payment needed to buy a home?
3. What is a pre-approval?
4. How much can I get pre-approved for?
5. What is mortgage loan insurance?
6. What is a high-ratio mortgage?
7. What is a conventional mortgage?
8. What is a home inspection?
9. How secure is your On-Line Application?
10. How does bankruptcy affect my ability to qualify for a mortgage?
11. How will child support and alimony affect my mortgage qualification?
12. Can I use gift funds as a down payment?

1. Why should I use an Integrity Mortgage consultant?
   By going to your financial institution you are limiting yourself to the terms and rates of one institution. As a result, they are not able to provide unbiased advice or selection, since by doing so, they risk losing your mortgage to a company whose product may provide more value to you. Integrity Mortgage Consultants have access to a variety of mortgage products and services as they deal with multiple lenders, not just one. Integrity mortgage consultants are able to search for products from a variety of lenders, including banks, trust companies, insurance companies and credit unions. With only one application you now have access to the best product, rate, and terms for your particular needs. Keep in mind that Integrity Mortgage Consultants work for you, and with you, to get the best mortgage solution.

   Our service is FREE! Due to the volume of business done by Integrity Mortgage and its Mortgage Consultants, fees are paid by the lender and Integrity Mortgage Consultants receive fast approvals in order to gain their business. This allows the consultant to shop among the various financial institutions for the mortgage rate and product that best suits the needs of the client and, in almost all cases, at no cost to you the client.

   Integrity Mortgage SAVES YOU TIME! When you deal directly with a Financial Institution and your mortgage is declined, for whatever reason, you must begin the application process all over again with another Lender. When you deal with an Integrity Mortgage Consultant, the application can quickly be redirected to another Lender, or several other lenders, for consideration. For more information on how Integrity Mortgage can help you, contact a Consultant today! Call toll free 1-877-255-7080!
   
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2. What is the minimum down payment needed to buy a home?
   There really is no minimum required for a down payment anymore. Many lenders that Integrity Mortgage Services have access to have opened the doors to zero down mortgages. But there is a catch and it’s the mortgage insurance premium that you have to look at. From a bank stand point, the more someone puts down on a home purchase, the less of a risk they are. If someone puts down 20% of the purchase price, the bank is confident enough to see that there is no risk with this particular client, and therefore, there is no insurance premium. However, if the client puts down less than 20%, then an insurance premium is added on to the mortgage amount. In addition to the down payment, according to CMHC and Genworth rules, you must have 1.5% of the purchase price available to cover the applicable closing costs (including, but not limited to, legal fees and disbursements, appraisal fees and a survey certificate, where applicable).
   
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3. What is a pre-approval and how do I get one?
   This is the best starting point when looking to purchase a house. A pre-approved mortgage provides an interest rate guarantee from a lender between 90 to 120 days, depending on the financial institution. Based on your mortgage application, a lender will pre-approve you for a dollar amount and is generally subject to certain conditions being met before the mortgage is finalized. Conditions would usually include: current pay stub, letter of employment, down payment confirmation, just to name a few.
   
   The easiest way to get a mortgage pre-approval is by calling your Integrity Mortgage Consultant. You will be asked some questions to determine your financial situation and then your Consultant will calculate the size of mortgage you qualify for, using this information. With your authorization, they will then proceed with arranging a Pre-approved Mortgage for you if you are planning to buy property in the near future. Most successful Real Estate Professionals will want to ensure you have a pre-approved mortgage in place before they take you out looking for a home. This is to ensure that they are showing you property within your affordable price range.
   
   In summary, a pre-approved mortgage is one of the first steps a Home Buyer should take before beginning the buying process. Contact an Integrity Mortgage Consultant for further information. Call toll free 1-877-255-7080!
   
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4. How much I can get pre-approved for?
   In the banking world there are two very important ratios that help us calculate what you can be pre-approved for. The first ratio is the Gross Debt Service (GDS). This ratio finds out if your monthly income can afford the costs that are associated with your home. More in particular, it’s the cost of the mortgage payment, property taxes and heating. How you calculate your GDS is as follows:
   
   

   GDS =	mortgage payment + property taxes + heating
   	Gross Monthly Income

   
   This ratio can not be higher than 35%. Now if you have perfect credit, this ratio is not even looked at. The most important ratio banks look at is the Total Debt Service (TDS). This ratio takes a look at what your monthly payments are on your outstanding debt (credit cards, car loans, student loans, line of credit, etc…), and includes the cost of a home. How you calculate your TDS is as follows:
   
   

   TDS =	mortgage payment + property taxes + heating + current monthly payment to debt
   	Gross Monthly Income

   
   This ratio can not be higher than 42%. If you have no down payment, the ratio is lowered to 40%.
   
   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 rather than stretch yourself financially. Make sure you don't leave yourself house poor. Structure your payments so that you can still afford simple luxuries.
   
   To calculate how much of a mortgage you qualify for contact a Integrity Mortgage Service Consultant. Call toll free 1-877-255-7080!
   
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5. What is mortgage loan insurance?
   When making the biggest purchase of one's lifetime, it is important that you and your family are protected. Mortgage loan insurance provides you with the security that your family would be taken care of in the event of unfortunate circumstances. Integrity Mortgage Services can provide you a quote on what the costs are.
   
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6. What is a high-ratio mortgage?
   A High-Ratio mortgage is one where the amount to be borrowed by way of a mortgage is greater than 80% of the purchase price, or the appraised value, whichever is less. High-Ratio mortgages generally require Mortgage Loan Insurance provided by Canada Mortgage and Housing Corporation (CMHC), Genworth (GE), or AIG. The bank considers a client a higher risk when putting down less than 20% of the purchase/appraised value. Due to the risk, the lending institution goes through CMHC, GE or AIG to protect them in the event the mortgage is not repaid and the bank has to take back the property. Unfortunately, you are charged the premium and it’s added on to the mortgage. Therefore it’s not an upfront fee that you have to pay at closing; it is included in the mortgage amount and amortized over the term of the mortgage. The premium is as follows:
   
   Premium Rates*
   
   

   LTV ratio	Single advance
   Up to 65%	0.50%
   65.01% - 75%	0.65%
   75.01% - 80%	1.00%
   80.01% - 85%	1.75%
   85.01% - 90%	2.00%
   90.01% - 95%**	2.75%
   95.01% - 100%	3.10%
   * a .20% premium surcharge will be applied to the above premium rates for every 5 years of amortization beyond the traditional 25-year mortgage amortization period ** add .15% premium surcharge to above rates for Cashback Equity

   
   Remember, this is insurance for the lending institution, not personal insurance.
   
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7. What is a conventional mortgage?
   This is the opposite of a high ratio mortgage. When a borrower puts down 20% or more, this is considered a conventional mortgage. The lending institution does not see you at risk and does not feel the need to get CMHC, GE, or AIG insurance. Therefore, there are no additional premiums.
   
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8. What is a home inspection?
   A home inspection is a visual examination of the property to determine the overall condition of the home. In the process, the inspector should be checking all major components (roofs, ceilings, walls, floors, foundations, crawl spaces, attics, retaining walls, etc.) and systems (electrical, heating, plumbing, drainage, exterior weather proofing, etc.). The results of the inspection should be provided to the purchaser in written form, in detail, generally within 24 hours of the inspection.
   
   A pre-purchase home inspection can add peace of mind and make a difficult decision much easier. It may indicate that the home needs major structural repairs which can be factored into your buying decision. A home inspection helps remove a number of unknowns and increases the likelihood of a successful purchase.
   
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9. How secure is your On-line application?
   Integrity has the top end security locked on your application. Your private personal and financial information is not sent anywhere without your expressed permission. Furthermore, all information you provide on line is encrypted for the greatest possible security.
   
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10. How does bankruptcy affect my ability to qualify for a mortgage?
    Every situation is different when there is a bankruptcy on the application. Integrity Mortgage has access to lenders that would consider providing mortgage financing, however, it is done so on a case by case basis. If you have a previously discharged bankruptcy, the best way to determine whether or not you qualify at this time, is to discuss your situation with an Integrity Mortgage Consultant. Integrity has many lenders to approach based on your circumstances. For more information contact an Integrity Mortgage Consultant today. Call toll free 1-877-255-7080!
    
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11. How will child support and alimony affect my mortgage qualification?
    Where child support and alimony are paid by you to another person, generally the amount paid out is deducted from your total income before determining the size of mortgage you will qualify for.
    
    Where child support and alimony are received by you from another person, generally the amount paid may be added to your total income before determining the size of mortgage you will qualify for, provided proof of regular receipt is available for a period of time determined by the lender.
    
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12. Can I use gift funds as a down payment?
    Gift funds are acceptable and commonly used for a down payment. There are two important aspects when using a gift as a source of down payment. The first is that it has to come from a family member. The family member will have to fill out a gift form that states the amount they are giving and their contact information. The second point is that you must show the gift amount deposited into your account. The lump sum deposit on the bank statement and the gift letter dollar amount, have to match up.
    
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