Residential FAQ

The minimum down payment is 5% for homes under $500,000. For homes between $500,000 and $1 million, it’s 5% on the first $500,000 and 10% on the remainder. For homes over $1 million, a 20% down payment is required. Purchases with minimum down payments are subject to mortgage default insurance, a premium calculated based on the loan to value.

A fixed-rate mortgage has a set interest rate for the term of the loan, providing stability in payments. A variable-rate mortgage has an interest rate that can fluctuate based on the prime rate, which can result in varying monthly payments.

Mortgage pre-approval involves a lender assessing your financial situation to determine how much you can borrow. It’s important because it helps you understand your budget, shows sellers you are serious and can speed up the buying process.

Mortgage default insurance is required for down payments of less than 20%. It protects the lender in case you default on your loan. The cost is added to your mortgage amount. These types of loans often see the lowest interest rates possible.

Lenders consider your credit score, income stability, debt-to-income ratio, employment history and the value and condition of the property.

Improve your credit score, save for a larger down payment, reduce your debt and ensure your income is stable. Providing all necessary documentation promptly can also help.

Once we have all your documentation, we will be able to pre-approve you within 48 hours.

Boomerang provides several alternative lending options that can be used as a temporary solution as we provide guidance to repair your credit history or as you wait to grow your down payment or income. The team at Boomerang will provide you with these options as well as a detailed plan to get you back with a traditional ‘A’ lender.

Closing costs include legal fees, land transfer taxes, home inspection fees and more. They typically range within 1.5% of the purchase price.

Yes, you can pay off your mortgage early, but there may be penalties. It depends on the mortgage terms. Some lenders allow extra payments up to a certain limit without penalties.

A mortgage term is the length of time your mortgage agreement is in effect, typically ranging from 1–5 years. The amortization period is the total time it will take to pay off your mortgage, usually 25 to 30 years.

Missing a mortgage payment can affect your credit score and result in late fees. If you miss multiple payments, it could lead to foreclosure. It’s crucial to contact your lender immediately if you foresee any payment issues.