Charlotte  Ferguson

Charlotte Ferguson

Sales Representative, Mortgage Agent

Red and White Realty Inc. Brokerage *

Email Me
Charlotte  Ferguson

Charlotte Ferguson

Sales Representative, Mortgage Agent

Red and White Realty Inc. Brokerage *

Email Me


Frequently Asked Questions

Frequently Asked Questions


Why do you need a mortgage broker agent?
  • A mortgage broker coordinates borrower’s needs and lender’s terms and conditions until closing the mortgage. It is a time-consuming process due to significant background information gathering and verification involved
  • Unlike your bank, a mortgage agent works for you, his/her loyalty is to you, not the lenders
  • A good mortgage agent will find the best product for you, better than your bank’s products
  • A mortgage broker provides mortgages on a wholesale basis from lenders and therefore can offer the best rates available in the market
  • You have a lower credit score or other challenges, and a good agent will know which lenders are willing to work with you



What is a Conventional Mortgage?
  • A mortgage that does not carry any form of high-ratio (e.g. down payment 20% or more) or lender insurance premium



What is Closed Mortgage
  • The interest rate on a closed mortgage is usually lower than on an open mortgage with a comparable term length
  • If you break the mortgage contract, a pre-payment penalty will apply



What is Open Mortgage?
  • Having the flexibility in making extra payments or paying off your mortgage completely (pre-payment) with no penalties
  • The interest rate is usually higher than on a closed mortgage with a comparable term length; this is because it allows more flexibility to put extra money toward your mortgage on top of your regular payments



What is the mortgage default insurance?
  • Mortgage default insurance protects lenders in the event a borrower defaults on their mortgage
  • If your down payment is less than 20% of the price of your home, you must buy mortgage loan insurance
  • Mortgage insurance in Canada can be purchased from Canada Mortgage & Housing Corporation (CMHC), Genworth Financial and Canada Guaranty



How much can I afford to buy a home?
  • Lenders look at two ratios when determining the mortgage amount you qualify for, which generally indicate how much you can afford
  • These ratios are called the Gross Debt Service (GDS) ratio and Total Debt Service (TDS) ratio; they take into account your income, monthly housing costs, and overall debt load
  • Typically max. GDS 39%, and max TDS 44% to qualify; however, some lenders have programs up to TDS 50%
  • Calculations require following basic information;
    • Your taxable income
    • Any outstanding debts
    • Property tax
    • Condo fee (if applicable)
    • Heating cost (typically take as $100)
  • Your licensed mortgage agent will do the calculations for you



Can I use gift funds as a down payment?
  • Yes, gifts from close family members such as parents, siblings etc. are acceptable
  • A gift letter signed by the donor is required
  • The gifts must be in the borrower’s bank account prior to the application submission



How much maximum I can withdraw from RRSP for down payment?
  • The Home Buyer Plan (HBP) allows you to withdraw up to $35,000, tax–free, from your Registered Retirement Savings Plan (RRSP)
  • It can be used only to buy or build a qualifying home
  • After the 2 year grace period, you’ll have a maximum of 15 years to repay the full amount back into your RRSP
  • This is only for;
    • First time home buyers
    • Residents or Citizens of Canada
    • Owner occupied homes



What is the minimum down payment?
  • Purchase Price < $500,000, 5% of the purchase price
  • $500,000 < Purchase Price < $999,999, 5% of the first $500,000, 10% for the portion above $500,000
  • $999,999 < Purchase Price, 20% of the purchase price
  • Regardless of the amount of your down payment, at least 5% of it must be from your own cash resources (ex. Savings, RRSP, TFSA etc.) or a gift from a family member. It cannot be borrowed



Will I even qualify for a mortgage if I have bad credit or bankruptcy?
  • If you know you have a low credit score, you should be transparent with the mortgage agent from the start
  • Your agent will find mortgage products that are best tailored to your needs
  • Depending on the circumstances surrounding your bankruptcy, there are lenders would consider providing mortgage financing

Have Questions?

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A little about meLOCAL EXPERTISE

Charlotte Ferguson is truly invested in the Kitchener-Waterloo area. Her experience in the mortgage industry and familiarity with the area will be assets to both buyers and sellers.



With a Realtor® like Charlotte by your side you don’t have to “Do it alone.” A good Realtor® has the training, the know-how, and the experience to help you through each step of the process and to make the process of finding, buying and moving into your home as smooth, quick and enjoyable as possible.


A Realtor® has valuable sources of information about market trends, neighbourhoods and, especially, information about homes for sale throughout the areas that appeal to you. Remember, not every home seller runs an ad in the local paper or puts up a sign in the yard; you could be driving by some outstanding properties for sale that may be just what you’re looking for in a home, but you don’t know it. An agent, on the other hand, offers you access to complete, regularly updated information about every home listed by agents through the Multiple Listing Service® (MLS®).

Designation: ABR, SRES, CSP, CNE,

Experience: 10

Awards: ABR, CNES, CSA, Mortgage Agent, Reverse Mortgage Specialist

Area Covered: Kitchener, Waterloo, Cambridge, Elmira, Wilmot, Wellesley, Stratford, Guelph, Elora, Fergus, St Jacobs, Heidelberg

Languages Spoken: English, French