Meet Vikram Gupta - Mortgage Professional
Vikram Gupta is a Mortgage Professional with more than 18 years of experience. Vikram helps borrowers, home owners and investors navigate the landscape of ever-evolving lending rules to achieve their own personal and financial goals.
"I work for YOU and not the banks. Let's have a chat to discuss how can I leverage my relationships with more than 30 lenders to obtain the best possible mortgage options tailor-made for you".
Mortgage Questions for Vikram? Below are some Frequently Asked Questions (FAQ):
- What is a Pre-Approval Mortgage Letter?
- How can one get a Pre-Approval Mortgage Letter?
- Typical Down Payment Increments?
- How does Conventional Mortgage differ from High Ratio Mortgage?
- Mortgage Loan Insurance, what is it?
- What is the difference between Fixed Term Rate and Variable Term Rate?
- What is the difference between Term and Amortization?
- Based on income, what can a Buyer expect in terms of affordability?
- Are there different Mortgage Payment options?
A Pre-Approval Letter is a Pre-Qualification Letter which shows what mortgage amount the individual can be Pre-Approved for based on Credit and Income. The benefit of the Pre-Approval Letter is that both you and your Real Estate Professional can look at properties based on the information in the Letter. This allows for better preparation and knowing the price range of homes that will be within affordability to you.
How can one get a Pre-Approval Mortgage Letter?
The Pre-Approval Mortgage Letter can be obtained from your bank or Mortgage Broker.
Typical Down Payment Increments?
Based on CMHC Premium Rates, the typical Down Payment range from 5%, 10%, 15% 20% and anything over 20%. To figure out specific Down Payment figures based on the purchase price of the property, check out the Mortgage Payment Calculator.
How does Conventional Mortgage differ from High Ratio Mortgage?
Any Down Payment that is less than 20% is considered as a High Ratio Mortgage and is subject to insurance premiums. A maximum amortization is 25 years for Insured Mortgages. Where as, Conventional Mortgages are given when the Down Payment is 20% or more. In this case, Mortgage Insurance is not needed and Amortization can be up to 30 years. Check out the Mortgage Payment Calculator to see the difference on payments based on the Down Payment and Amortization years.
Mortgage Loan Insurance, what is it?
As discussed in the previous question, Mortgage Loan Insurance is simply the Insurance Premium that the Home Buyer has to pay in the instance that their Down Payment is less than 20%. This one time Insurance Premium is added to the Mortgage amount.
What is the difference between Fixed Term Rate and Variable Term Rate?
The Difference between Fixed Term Rate and Variable Term Rate is that a Fixed Term Rate are Mortgages where the Rate and Payment remain consistent throughout the term of the Mortgage and Variable Term Rate is based on a Bank's Prime Rate, where the Rate and Payments change whenever the Bank changes their Prime Rate.
What is the difference between Term and Amortization?
Term is the period within the Amortization period for which the Home Buyer can choose and negotiate rates with a Mortgage Lender. Typically, this Term can be from 6 months to 10 years. Amortization is the total number of years it will take for the Mortgage to be paid off, completely. Based on your Down Payment, the Buyer can note the estimated time their Mortgage will be paid off completely.
Based on income, what can a Buyer expect in terms of affordability?
Rule of thumb is that your Mortgage may be approved for up to 4 times of the Buyers Gross Income, if the Buyer is putting less than 20% of Purchase Price as a Down Payment. If the Buyer as at least 20%, than the Buyer can hope to obtain a mortgage up to 5 times their Gross Income. But, it is always highly recommended to speak to a Mortgage Professional to find out exactly how much one can be approved for.
Are there different Mortgage Payment options?
Yes, there are different Mortgage Payment options and methods. Typically payment options available are monthly, semi-monthly, biweekly and weekly.
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Courtesy to Vikram Gupta for the answers provided
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