Being a mom has shaped the way I do everything...not just at home but in my work, as well. It has helped me understand the depths of commitment that my clients have to their families. As a mortgage specialist, I have the privilege of helping people achieve their dreams for their families. I'm so grateful to be able to offer people the advise and information they need to make reaching their goals as simple as possible. My purpose with this blog is to provide tools that will help new or current homeowners reach whatever goals they have set for themselves. If you have ideas you'd like to hear about, let me know.

Tuesday, 20 March 2012

Conventional or High Ratio mortgage - which one is right for you?

Victor - Mobile Mortgage Specialist

When buying a home you have two options. You have a conventional, what we call a conventional mortgage, which is when you have 20% down or more. Or a low down payment mortgage with as little as 5% down you can buy your home.

When you have a low down payment mortgage, you are charged a premium on closing which we call a mortgage default insurance premium.

What we'll do is work with you to find out what the ideal down payment amount is for your financial situation and then work through those specific costs for you for closing.
That default insurance premium is also subject to a provincial sales tax and that is all calculated for you so that you have no surprises on closing when you purchase your home.

Buying a home and getting a mortgage is one of the biggest investment decisions you'll make. So making sure that you have had expert advice not only on the mortgage side and the financing side but on the investment side is very important. And at RBC we have all the relationship partners available for you to meet with to get the advice to make you feel comfortable with this purchase.

For more information please visit the RBC Advice Centre!
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