Buyers Frequent Answer Questions
What is an Agency Relationship?
The real estate act required the Realtor to disclose the Agency relationship and explain the representation to the buyer or the seller in order to protect their interest.
What is the qualification of No money down mortgage?
To be qualified for the mortgage, applicants need to proof length of employment, strong income and good credit to qualify the loan.
Is there any mortgage programs for individuals who cannot proof income?
For those who cannot verify their income, there are some Lender offer stated income program or equity mortgages to the borrower.
What is Condominium or Strata?
A property with 2 or more units, each units is owned by individual owners registered as a strata lot, all the public facilities are common area shared by all the owners with undivided interest and maintenance responsibilities will be shared by unit entitlement. The property is registered as a Strata corporation on land title with their own bylaw and regulation to govern the use of the owners.
What is a credit report?
When Lender or credit supplier makes an inquiry. This data is records into the credit Bureau's file and presented in report format for inquires. Creditor or Lender sends updates credit information to each of the credit reporting agencies, the record is updated frequently and a credit rating and information of the consumer.
What is mortgage insurance?
Insurance protecting the Lender again the borrower's default on-high ratio, (mortgage with down payment less than 25%; 35% for self employment individual). To be insured by CMHC or a private insurer.
What is a property appraisal?
An appraisal is an expert opinion to verify the market value of the property is sufficient to warrant the loan requirement by the mortgage lender.
What is an engineering report of a Building?
A report inform the building identify any major problems that require attention, any repair or preventive maintenance should be make, physical condition of roofs, floor, foundation, exterior wall and envelope or verify the condition of systems such as plumbing, electrical, etc.
What is the subject conditions on a contract?
A subject condition is applied to an offer of a purchase contract addendum, the contract is become firm and binding if the subject conditions is fulfilled and removed before a specific date.
What is an adjustment date?
The calculation of the utilities and the property tax bill at closing, either the payment is pre-paid or outstanding, adjustment will be made to the buyer or Seller.
What is a Land Survey?
The legal description of the property, the location and it’s dimensions. The lender usually requires an up to date survey.
What is Title Insurance?
The insurance protect the title of the owners and title defects that might affects the value of the property, the requirement of some lenders as a condition for making the loan or the replacement of a land survey.
What is Financial Institution?
Organizations such as commercial banks, credit union, and insurance company that pools money from its depositors and invest funds in various ways, including mortgage.
What is prepayment Penalty?
Charge made by the lender to a borrower if a loan is made before it is due.
What is a Power of Attorney?
A legal agreement permitting one party to act on behalf of another in a specific matter such as for sale of a property.
What is the Agency Relationship?
The real estate act required the Realtor to disclose the Agency relationship and explain the representation to the buyer or the seller in order to protect their interest.
What is the qualification of No money down mortgage?
To be qualified for the mortgage, applicants need to proof length of employment, strong income and good credit to qualify the loan.
Is there any mortgage programs for individuals who cannot proof income?
For those who cannot verify their income, there are some Lender offer stated income program or equity mortgages to the borrower.
