• Mike Hidlebaugh

Top 5 Questions I Get Asked as a Mortgage Associate!

What is the minimum down payment required on a home?


If you or a family member are going to live in the home all or part of the time, the minimum down payment is 5%. If you would like to avoid Mortgage Default Insurance, commonly referred to as “CMHC fees”, you need 20% down. If you are purchasing a rental property, the minimum down payment is 20% down and if you are purchasing a cabin or other vacation property the minimum down payment is 5-10% down, depending on the location and characteristics of the property.



What is your best interest rate?


While it is important to be aware of the current interest rates, I try to ensure that clients or potential clients see the full picture of the potential mortgages. Is the mortgage portable, what are the prepayment penalties, what are the prepayment options? There is so much more to a mortgage than just rate.



How can I rebuild my credit?


If your credit has taken a hit there are a few ways that you can rebuild it. Know your credit score, pay off high interest debts and keep balances below 75% of your limit. Budget by a cash diet, reduce credit pulls, and use your credit, but use it wisely. These are a few ways to rebuild credit.


What does refinance mean?


When you refinance your home, you take advantage of the equity you have built in that home. You are able to access 80% of the value of your home less any outstanding mortgages. For easy math if your home is worth $200,000 and you have $100,000 remaining on your mortgage, you could access $60,000. You would need to have an appraisal completed and have a use for the funds – purchase another home, renovate existing home, consolidate high interest debt, help children in post-secondary education.



What are some costs associated with purchasing a home I might not be aware of?


Purchasing a home is generally a wise decision, but there are associated costs that you might be unaware of forget about. These could include appraisal fee, home inspection fee, lawyer fee, PST on mortgage default insurance, land title insurance, furniture, and moving costs. This is not a comprehensive list of expenses, but will provide some insight.


I get asked many questions, but these are definitely some of the more common ones. If you have questions let me know and I’d be happy to assist!

2018 Mike Hidlebaugh Mortgage
Mortgage Associate Licence: 316894

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Brokerage Licence: 316176