SKYIRE HomeIndex Mortgage FAQs

Still have questions? Our frequently asked questions can help. If you don’t find your question or you have additional ones, send us an email, we’ll be happy to answer them.

SKYIRE HomeIndex Mortgage is focused on financing homes where a lower monthly payment is preferred, which is in cities where the average home price is higher, such as Vancouver, Toronto, Calgary or Victoria. The SKYIRE HomeIndex Mortgage is available for use on homes listed on our new development listing.

SKYIRE HomeIndex Mortgage is focused on financing homes where a lower monthly payment is preferred, which is in cities where the average home price is higher, such as Vancouver, Toronto, Calgary or Victoria. The SKYIRE HomeIndex Mortgage is the only mortgage which reduces the down payment to 5% with a lower monthly payment too.

In coordination with a SKYIRE approve mortgage broker, we will work with you to assess your qualifications and options.

Conventional mortgages lenders (i.e. banks) need to account for the total monthly expenses a borrower will have when they are buying a new home. This total would include the interest-only payment for a SKYIRE HomeIndex Mortgage. The conventional mortgage lender wants to ensure their payment, plus the SKYIRE HomeIndex Mortgage payment, can be funded out of the borrower’s current annual income. This needs to be the case for a conventional lender to approve the financing so a mortgage broker will need to handle the application to make sure everything is taken into account.
The mortgage brokers approved to work with home buyers applying for a SKYIRE HomeIndex Mortgage obtain as many financing offers as possible. This ensures the best rate is achieved for you, the homebuyer. The SKYIRE HomeIndex Mortgage rate will always be lower than the best available rate to homebuyers with an approved Canadian Mortgage and Housing Corporation (CMHC) insured mortgage. Based upon an applicant’s credit and income, a CMHC insured mortgage may not be available for a particular property purchase which means the SKYIRE HomeIndex Mortgage becomes a deciding factor in a home buyer’s ability to proceed with a purchase.

 

Any time a CMHC insured mortgage is available along with other financing offers, an approved professional mortgage broker provides multiple options to compare monthly payments, allowing a home buyer to choose the best one.

SKYIRE HomeIndex Mortgage goes up  to 15% of  the purchase price of a home. The home buyer requires a down payment of at least 10% of the purchase price.  The sum of that down payment plus HomeIndex Mortgage needs to be 20% or greater to qualify for financing from a conventional mortgage lender.
A mortgage broker works with you to complete all of the mortgage application documents (for both the conventional mortgage and SKYIRE HomeIndex Mortgage). The conventional mortgage application is sent in first and once approved the SKYIRE HomeIndex Mortgage application is accepted with approval within 48 hours.

On newly developed homes such as condos or townhouses, or in new home subdivisions where the  development is pre-approved by SKYIRE for

HomeIndex Mortgage eligibility, you can choose to have any real estate agent you like represent your purchase offer to the developer.

Due to the special aspects of SKYIRE HomeIndex Mortgage, an approved professional mortgage broker is required. There are multiple mortgage brokers to choose from in each city so if the first contacted mortgage broker is not a fit for you there are others to choose from. The goal is to make sure you feel comfortable with the person who is helping you find the best mortgage option available on the market.
There are no other closing costs unique to SKYIRE HomeIndex Mortgage beyond what is normally required with any home mortgage.

And there are no other ongoing costs for a SKYIRE HomeIndex Mortgage besides the regular monthly payments.

As with all residential real estate transactions, you can use either a lawyer or a notary to complete the documentation for the purchase of a home along with accompanying mortgage contracts.
A pre-authorized payment form is filled out at the time of closing on the purchase of the home when the new mortgage is being documented. This allows all SKYIRE HomeIndex Mortgage payments to be made electronically along with the conventional mortgage payment.
After the first 12 months, the SKYIRE HomeIndex Mortgage can be paid off any time. However, if you still have a conventional mortgage on the home you should pay it off first as it will have a higher interest rate than the SKYIRE HomeIndex Mortgage. When paying off the SKYIRE HomeIndex Mortgage, two home appraisals will be obtained and the average of the two would be used to determine the index amount for repayment.
The monthly payment for SKYIRE HomeIndex Mortgage is interest only in order to keep the amount as low as possible. In addition, SKYIRE HomeIndex Mortgage always has a lower interest rate than the conventional first mortgage so it is better for additional payments to go towards the first mortgage and pay it off faster. Also, SKYIRE HomeIndex Mortgage needs to be paid off in one lump sum unlike a conventional mortgage which can be paid down in smaller amounts.
SKYIRE HomeIndex Mortgage is available for home purchases only. It is not for refinancing or additional borrowings for existing homeowners.
Monthly payments for a SKYIRE HomeIndex Mortgage need to be made on time, the same way they are required for any mortgage. If a payment is missed and is not made up, then delinquent payment interest applies which starts to eat into your home equity. It is important to make your monthly payments and to ensure there is always enough funds in your account.
SKYIRE HomeIndex Mortgage is originally set to a five-year term, and provides the homeowner with one additional five-year term renewal option. After the first year, the homeowner can payoff SKYIRE HomeIndex Mortgage without penalty any time they like or upon selling the home.
When you have sold your home, the lawyer or notary you used to handle the sale will request a payout statement for SKYIRE HomeIndex Mortgage. A statement will be prepared based on the sale price of the home and the percentage increase over the original home purchase price. This statement will be provided to you and your lawyer or notary.
When selling: The market will determine the value (price) of your home. In other words, the best possible price that you can sell your home at its value.

When not selling, but paying off SKYIRE HomeIndex Mortgage: The average of two professional appraisals is considered the value of your home. You can choose from a list of accredited home appraisers and select two that you want to work with.

Any valuation report on a home needs to be done by an accredited professional appraiser (we will provide you a list to choose from). A formal appraisal is different than a home valuation a real estate agent provides for the purposes of marketing a home for sale.
Indexing within SKYIRE HomeIndex Mortgage occurs when the principal balance of the mortgage is adjusted by the same percentage increase as the home value. For example, if a home is purchased for $500,000 and increases in value by 5% (or $25,000) and there is a SKYIRE HomeIndex Mortgage of $50,000, then the principal balance of SKYIRE HomeIndex Mortgage would also go up 5% ($2,500).
Lenders charge a higher rate of interest and premium on loans when lending on higher-ratio loan-to-value mortgages. They do this because they are taking on more risk when they lend this way. SKYIRE HomeIndex Mortgage is a mortgage offered to higher-ratio loan-to-value home purchasers but at a lower interest rate and premium. The additional risk is compensated for by indexing the principal balance of the mortgage against any home value change.

SKYIRE HomeIndex Mortgage for financing homeownership is a safer approach for the home purchaser versus paying a higher interest rate and premium. Keeping the monthly payment low helps the homeowner to remain financially comfortable.

SKYIRE HomeIndex Mortgage is a small part of the overall mortgage financing amount used to purchase your home. For a 90% or financing solution, SKYIRE HomeIndex Mortgage makes up only 10% of the mortgage amount respectively. This means your down payment is only 10% of the purchase price but you realize 90% of the increase in the value of your home when you sell. In other words, if your home value goes up substantially, you reap the majority of the increase.
If you choose not to payoff your SKYIRE HomeIndex Mortgage, it is portable and can be taken with you to your new home. If you want to obtain a new SKYIRE HomeIndex Mortgage for a larger amount, the existing premium is credited against your new SKYIRE HomeIndex Mortgage.
SKYIRE HomeIndex Mortgage is only available for principal residences or on SKYIRE HomePlan investments (see  our SKYIRE HomePlan  brochure for more details).
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