Burlington, Hamilton, Oakville, Mississauga and Toronto Mortgage Brokers | Loewen Group Mortgage Professionals

Talk to our Mortgage Experts Today (289) 337-4029

Proudly serving Halton & GTA

Most Frequently Asked Mortgage Questions

When you decide to purchase a home for the first time, you may feel overwhelmed with the countless different mortgage options available to choose from. Not only that, but the terminology can also be confusing to understand.

So, to help provide some clarity, your local Burlington mortgage broker with Loewen Group Mortgages have listed some of the most frequently asked mortgage questions and their answers.

Frequently Asked Questions

  1. What is the difference between an adjustable rate mortgage and a fixed rate mortgage?

An adjustable-rate mortgage (ARM) is a loan where you are usually given a lower initial interest rate than other mortgages, however, your rates vary depending on the market. An ARM is popular amongst first-time homebuyers due to the cheaper initial interest rates, but this mortgage option makes it difficult to budget your finances because if the market changes your interest rate could rise or fall with little to no warning.

A fixed rate mortgage has a higher mortgage rate compared to an ARM, but you will never have to worry about your rates fluctuating throughout your amortization period. You will receive a set rate that will not change, which will help you accurately budget your expenses.

  1. Should I get pre-approved?

There are many benefits associated with getting pre-approved. It allows you to know what type of homes you can afford so you know what price range to shop in. It also gives you more credibility with seller’s because it shows them that a Burlington mortgage broker has reviewed your finances and you are financially capable of taking on the financial responsibility.

  1. Do you have to have perfect credit to become a homeowner?

You do not need a perfect credit score to become a homeowner. Different mortgage options have varying credit score requirements. Talk with your local broker to see which options are best for your financial situation.

  1. How much should I pay towards my down payment?

If you wish to apply for a Burlington mortgage, you will need to pay for at least 5% of your down payment. However, if you pay less than 20% towards your down payment, you may be required to obtain mortgage default insurance. This is a fee charged by your broker to ensure they are protected in case you were to default on your monthly payments. This insurance does not protect the borrower, only the broker.

Contact Us

For more useful frequently asked questions or if you would like to apply for a Burlington home loan, please contact the Loewen Group Mortgages team at 289-337-4029.

About the author...

View all posts by James Loewen

Your reactions

Fields marked with * are mandatory

© 2019 Burlington, Hamilton, Oakville, Mississauga and Toronto Mortgage Brokers | Loewen Group Mortgage Professionals

Hours Of Operation

Monday - Friday: 9am - 5pm
Evenings & Weekends Are Available By Appointment


5044 Fairview St,
Burlington, ON
L7L 0B4


Office: (289) 337-4029
Thank You for checking out our site. We would love to know more about what you think. This could win you a free dinner for two. Just send us an email with what you would like to see in the best mortgage brokers site on earth, and you'll be entered into the draw. We would love to hear from you and Thanks again! -James
Call Now Button
Show Buttons
Share On Facebook
Share On Twitter
Share On Linkedin
Share On Youtube
Hide Buttons