Mortgage Resources
We're committed to making mortgage financing simple and straightforward. Whether you're beginning your home search, preparing to make an offer, or seeking a pre-approval, we provide the guidance and information you need to make informed decisions. From understanding affordability and financing options to navigating the home-buying process, we're here to support you every step of the way.
Whether you're a first-time homebuyer, refinancing your current mortgage, or planning your next move, our team delivers expert advice in clear, easy-to-understand terms. Let us be your trusted mortgage experts.
Selecting the Right Mortgage
Selecting the right mortgage helps protect your budget, goals, and future. The Right Mortgage Can Make All the Difference. See How... Choose the Right Mortgage With so many mortgages available today, you need to understand what choices are out there. In order to make the right choice for your mortgage, you should first understand the following: Open and closed mortgages: This determines how much flexibility you have for paying off your mortgage and how you make your payments. Amortization period: This is how long it takes to pay off your mortgage in full. Terms: You can choose either a short-term or long-term mortgage. Shorter terms are best if interest rates are expected to drop, while long-term is beneficial when interest rates are already low. Fixed or variable interest rates: Interest rates can be locked in with a fixed mortgage to keep your monthly payments the same or variable, which means your payments will rise and fall with interest rates. How Long Does It Take to Get a Mortgage? If you have all your documentation and finances in order, you can often get an answer on mortgage approval in as little as 24 to 48 hours. It’s always best to work with a mortgage broker as they will work with trusted lenders and put your application through with all the required information. Why Compare Mortgage Rates? When choosing a mortgage, you need to compare apples to apples to make sure you aren’t just focused on the interest rate. Instead, you want to understand the length of the term, whether the mortgage is open or closed, the amortization period, and of course, the interest rate.
Affordablility & Financing
Understand your affordability and choose a mortgage that fits your budget. Determine Mortgage Affordability Affordability and financing are the most important factors when purchasing your home. There are a number of steps you can take to determine a price range for the homes you can afford, including a review of your expenses and income. Your credit score will also come into play, and we will help determine if your current finances will allow you to own a home. How to Review Your Expenses To review your current expenses, you need to determine how much you spend each month. You have to understand this number because you then can determine how the added expense of buying a home will affect your budget. Look at your monthly income less taxes and deductions and subtract your expenses from your income. This way, you will see how you are managing based on your current expenses and determine how much more you can put towards your mortgage. How to Calculate Mortgage Affordability Getting a pre-approved mortgage is a must. To determine affordability, we will consider: Your Gross Debt Service Ratio (GDS) based on what you can afford to pay each month, including mortgage payments, taxes and heating. You will need a GDS ratio of no more than 32%. Your Total Debt Service Ratio (TDS) includes items mentioned above, as well as any other financing obligations you have. The maximum TDS ratio is 37 percent or 40 percent if it’s CMHC mortgage. The Best Type of Mortgage It can be challenging to determine which type of mortgage is best for you. We will discuss the options that make the best sense for your needs including: New to Canada Mortgages Non-Resident Mortgages Investment Properties Refinancing Transfer & Renewals Fixed Versus Variable Self-Employed Mortgages Open or Closed Mortgages We will work with you to identify the best opportunities whether your goal is to save more money over the life of your mortgage, to pay your mortgage off as soon as possible, or have more cash flow for your budget each month.
Mortgage Checklist
Stay organized, avoid delays, and prepare confidently with a mortgage checklist. Mortgage Checklist to Assist with Approval. Having all your documents ready during the mortgage approval process makes everything less stressful. Here’s a checklist to assist when applying for a mortgage: Bring a copy of the accepted Offer To Purchase and the land survey. Get a salary letter from your employer. Self-employed individuals need financial statements for the past three years as well as personal income tax returns. Obtain confirmation that your down payment came from your resources (i.e. bank statements or a gift letter). Create a list of all your assets and debts along with account numbers. A copy of the Real Estate Listing if buying an existing home. Condominium financial statements, if applicable. Mortgage Pre-Approval Checklist We always advise our clients to seek pre-approval before they start their house hunt. Here is what you will require: Social security number Proof of employment Proof of income Tax documents Place of Residence Bank account information Credit information Purchase agreement Gift letters Monthly expenses Self-employment documents How to Apply for a Mortgage There are several steps to the mortgage application process, including: Pre-Approval: We will review your financial situation so we can decide if you are qualified for a loan and how much that loan will be. Underwriting: Our underwriter will review your application along with your other documents to ensure you and the property meet the requirements for a mortgage. Conditional Approval: If we need a bit more information, we might offer conditional approval until we can confirm the application. Closing Day: The mortgage process is complete and you can finish up the closing of your purchase.
When obtaining a Mortgage
Secure the right mortgage with expert guidance from application to closing. Obtaing a Mortgage When obtaining a mortgage for your home, you want access to the information that will lead you to the best product. After all, this is the most significant investment you are likely to make in your life. The mortgage you purchase will have a considerable impact on your finances over a long period of time. Therefore, you want to understand exactly how your interest rate, terms and payments will work. Although many people think of going to their bank first, it is becoming more common for people to turn to a mortgage broker instead. As mortgage brokers, we have access to the mortgage products from over 50 lenders, not just a few mortgage options from a single bank. This allows you to shop wisely for the best rates and conditions. We work with major banks as well as small lenders, insurance and trust companies, and private funds. Because of this, we can find the best rates for you. However, it goes beyond the best rates. We also can assist you regardless of your situation. With strong ties to the lending community, we use our relationships to help you, whether you are a first-time buyer, refinancing your mortgage, are employed, self-employed or even have bad credit. Our goal is to help you understand your mortgage options so you make an informed decision. Every aspect of every mortgage product is different with so many variations it can be overwhelming. We look at your finances, the home you wish to purchase or your current mortgage and equity before we begin the process. This allows us to establish your needs and focus on the mortgages that are going to be the most effective for your financial situation. Who Needs a Mortgage? Purchasing a home comes with a hefty price tag. Not very many people can afford to pay for a home in cash, let alone in full. This means that most home buyers will require a mortgage. The beauty of a mortgage is that it allows you to own a home without adding much more financial burden than paying rent. In fact, in some cases, you might even find it can be less than rent, depending on what kind of home you purchase. Although you will require a downpayment to purchase a home, there are government programs available to assist you in the home buying process. We can discuss your options and help you meet your dream of homeownership. If you are concerned you might not qualify for a mortgage due to bad credit or even being self-employed, you should still speak to us. We might be able to find a mortgage lender willing to work with you and help you buy a home Mortgages also offer people the chance to make investments. Many people will purchase a home they intend to rent out to help pay for the mortgage and help generate more income. This is often a second home. They are also a way to build instant equity. As you pay down your mortgage, your wealth grows, making it an excellent investment, even if it is to purchase your primary home. This money can then be accessed through a home equity loan. The Steps to Obtaining Your Mortgage There are a number of steps to the mortgage application process, including: Pre-Approval: We always recommend home buyers to apply for mortgage pre-approval before they even begin their house search. We will collect your financial information and let you know if you will qualify for a mortgage and, if so, for how much. This is very important as it avoids disappointment while providing a realistic budget once you begin your search. Underwriting: Once you find a home, the mortgage underwriting team will review your application, all relevant documents and also look at the property to make sure it meets the guidelines and requirements. Conditional Approval: If for some reason, the underwriter finds they are missing information or documents, they might choose to provide conditional approval. This means once they receive the missing information, if all goes well, they will then “clear to close” and sign-off on your application. Closing Day: Once everything is finalized with your offer, the borrower can attend the closing, and you will finally become a homeowner. How to Apply for a Mortgage Applying for a mortgage can be stressful. However, we will help you through each step, including: Choosing a lender: This is the easiest step, as when you work with a broker, we will provide all the information required to help you find the best lender for your needs. Pre-approval: As mentioned, it is always best to get pre-approved for a mortgage, so you are prepared for your home search. Click here for your pre-approval checklist. Information download: You will provide documents and financial information for the approval process. Click here for your mortgage application checklist. Debt Service Ratios Analysis: As part of the application process, the lender will perform a Debt Service Ratio Analysis to determine if you can afford a mortgage. They will compare your income to your debt. Property Analysis: Before approval, the lender will assess the property to ensure the value of the home matches what you are paying for it. Completing the Application: Your application will include all of the pertinent information to allow the lender to make a decision on your approval. We will review the application with you, so you understand everything, and also to ensure the application is complete to avoid delays. Credit Bureau Check: You will have to sign a Credit Authorization Form allowing the lender to do your credit check. If you have issues with your report, we will review them with you. If all is well, the mortgage is approved. Negotiation and Commitment: When the lender agrees to provide your loan, the mortgage rate and terms are finalized, and we will review them with you to ensure you understand everything before you sign and return the agreement. The closing process can then begin.
Purchasing & Improvements Mortgages
Finance your home purchase and improvements with one convenient mortgage solution. Renovation Mortgage? With the astronomical prices of homes in many areas of Ontario, more and more buyers are considering purchasing a “fixer-upper.” Fixer-uppers are available in varying degrees of ill-repair from cosmetic changes such as unattractive wallpaper to more in-depth and costly renovations from the roof to the basement and everything in between. Many buyers are interested in this approach but hesitate to put an offer in on fixer-uppers because they fear they don’t have the funds required to complete the renovations. Applying for a line of credit for home renovations on top of a mortgage might prove too much for the average homeowner. As well, the interest associated with home renovation loans or general lines of credit tends to be higher than mortgage rates. The good news is, if you would like to consider a fixer-upper, you could be eligible for a renovation mortgage. The CMHC Improvements program offers renovation mortgages in hand with a mortgage lender. With a renovation mortgage, you can estimate the associated costs for the required renovation and add them at the time you apply for your mortgage. It provides you access to a lower-cost home in a more desirable neighbourhood while providing you with the funds required to update your home. The results? A dream home customized to suit your needs without the high interest you would pay on home renovation loans. Of course, this type of mortgage does come with some limitations, so choosing a fixer-upper home that will qualify can be tricky. What Homes are Eligible for Renovation Mortgages? The main limitation of renovation mortgages is that not all renovations will be approved. By adding to the complications of the mortgage, renovations must be approved by both the lender and the CMHC. The renovations cannot just be something simple like paint and wallpaper replacement. Instead, improvements must be significant, involving the structure of the property. This would include popular upgrades such as a new kitchen or new bathrooms. However, it would not include things such as the removal of wallpaper or even something such as a new furnace. Some of the most common types of improvements approved by lenders include: Roof Flooring Wiring Windows and doors Energy efficiency Basement Kitchen Bathroom Living room Request a quote from a contractor to submit to both the mortgage lender and CMHC for approval. In your Agreement to Purchase, you can add a condition stating you must arrange for a contractor to inspect the home before closing. The quote will list all items of the work required with the associated costs. The CMHC and the lender will review the anticipated renovations and the fees to determine if it is worth the investment. If they decide the improvements are worth it, they will approve the improvement amount and add it to the mortgage. Another important consideration when applying for a renovation mortgage is how the funds are managed. The improvement amount is advanced to your lawyer on the closing day. The lawyer holds these funds until the renovations are complete to ensure the money goes towards its intended use. Because of this, homeowners often still require an unsecured line of credit to pay for the initial renovation costs. At the end of the renovations, your lender arranges for appraisal to confirm the work outlined has been completed. Upon confirmation, you will have the money sent to you so you can pay the contractor. Finding a contractor can prove to be a challenge as there is a 90- to 180-day timeline on these mortgages. Your contractor will have to work fast and depending on the level of work required could be difficult. However, it also means you will have the work completed within a reasonable timeline and not have to make other living arrangements for too long. As well, many renovations can be completed while you live in your home. How Much Can be Added to My Mortgage? Another factor is determining the acceptable loan purpose. The lender will allow for purchase transactions up to 95% or refinances up to 80% LTV. The mortgages are available for up to 30 years and must be a property that is intended for your primary residence. It can be either a new construction or existing properties. For your renovation mortgage, the CMHC Improvement program allows buyers to borrow up to 10% of the value of the post-renovation value of your home. This means that if you were to purchase a home for $500,000, and it is estimated the required renovations would improve the value by $50,000, the post-renovation value would be $550.000. As a result, you would be offered a mortgage for $550,000. If you have a particular area in mind that is out of your price range, this could be an excellent option for you. Your real estate agent can help you find some acceptable fixer-uppers that will fall under the requirements of the CMHC and lenders. We can then work with you to help you get the renovation mortgage you need for the best rates and terms.
New to Canada - New Immigrants
Helping newcomers secure mortgage solutions and confidently build a future in Canada. Mortgages for New Canadians If you have immigrated to Canada within the last five years, are a Permanent Resident or have received confirmation of Permanent Residence from Immigration, Refugees and Citizenship Canada (IRCC), you are considered a newcomer to Canada. We welcome newcomers and are here to help you achieve homeownership. We understand new Canadians often have unique needs and can help you find the right mortgage designed to assist new Canadians. Although there are eligibility requirements, you can find a mortgage to suit your needs, even if you have a limited credit history in Canada. Our mortgage brokers can help you as a new Canadian even if you have not worked for two years in Canada. We offer customized solutions through the many lenders we work with who are happy to consider your unique needs. There are many options available to allow you to meet your goals of homeownership. What Do New Canadians Need for a Canadian Mortgage? Building your credit is the first step to qualifying for a mortgage in Canada. You can create a strong credit rating that will not only allow you to qualify, but that will also help you get the best possible rate. Even a small decrease in your mortgage rate can save you thousands of dollars over the life of your mortgage. To help build your credit rating, you can do the following: Apply for credit cards and use them regularly, being certain to pay off the full balance every month. Make sure all your bills are paid in full without any missed payments for rent, utitilies and any other service you require. Consider applying for a small loan from your bank and pay it off monthly and on time Establish a consistent source of income with a steady job with the same employer for as long as possible. Commonwealth credit ratings with the United States, the United Kingdom or Australia can also be used in Canada, so we can also consider this information when looking at your credit history. Without a strong Canadian credit history, you will need additional documents, including: A valid work permit or landed immigrant status Proof of income Proof of 12 months of rental payments and/or a confirmation letter from a landlord Regular payments towards utilities, telecommunications, insurance, etc. and/or confirmation letter from the service provider(s) Letter of reference from a recognized financial institution Several months of bank statements Documented regular savings for at least a year An international credit report If you can, have all of this information ready for review before you visit with our mortgage brokers. This makes the process easier. Even with the best credit rating, you cannot purchase a home in Canada without a down payment. You will have to begin saving at least 5% to put towards the purchase price of your home. Although those with permanent resident status require at least 5% towards their down payments, a non-permanent resident will need at least 10%. It also depends on the purchase price as homes of $500,000 or more require at least 5% of the first $500,000, and 10% of any amount over $500,000. This isn’t specific to new Canadians, but it is still important to know before considering homeownership. How Does Canada Mortgage Program Help The Newcomers? Newcomers to Canada also have CMHC-insured financing available whether you have permanent and non-permanent residence status. This provides financing with no minimum period of residency required. It also makes it easier by allowing for alternative sources to establish creditworthiness if you are a permanent resident. This approach is limited to the purchase of a 1-unit property, owner-occupied, for non-permanent residents. As mentioned, if you are a non-permanent resident, the minimum down payment is 10%. You are also not eligible for alternative methods of establishing creditworthiness, although in some cases, a letter of reference from your financial institution for your country of origin could be considered. At least one borrower (or guarantor) will need a minimum credit score of 600 or higher. If you do not have a credit history because you are a recent graduate or are divorced, you can look at providing alternative sources of payment history, such as a letter from foreign lenders. We can discuss these options with you. The requirements also include: Loan-to-value (LTV) ratios: The loan-to-value ratio is up to 95% for 1 – 2 units and up to 90% for 3 – 4 units. Minimum equity requirements: The minimum equity requirement for 1 – 2 units is 5% of the first $500,000 of lending value and 10% of the remainder of the lending value. For 3 – 4 units, the minimum equity requirement is 10%. Purchase price/lending value, amortization and location: The maximum purchase price/lending value or as-improved property value must be below $1,000,000 and is available for one property per borrower/co-borrower at any given time. Amortization: The maximum amortization period is 25 years. Canadian properties: The property must be located in Canada, available for full-time, year-round occupancy. Traditional down payments: Must come from sources such as savings, the sale of a property, or a non-repayable financial gift from a relative. A non-traditional down payment: Must be arm’s length and not tied to the purchase and sale of the property, either directly or indirectly. Available for 1 – 2 units, with 90.01% to 95% LTV, with a recommended minimum credit score of 650. This is an exciting time for new Canadians. You have many opportunities in Canada, including the chance to purchase your own home. We can help you through the process so you can achieve your financial goals.
Private Lending
Flexible private lending solutions when traditional mortgage options are not available. Private Lending Solutions Private lending can provide flexible, short-term financing when traditional mortgage options are not the right fit. Whether you are a borrower looking to access equity or an investor seeking real estate–secured opportunities, we can help structure a solution that aligns with your goals. For Borrowers Private mortgages are typically secured against real estate and are often used when timing, income documentation, credit history, or property type makes conventional financing more difficult. Private lending may be suitable for: Debt consolidation to simplify high-interest debt and improve monthly cash flow Bridge financing while selling one property and purchasing another Equity take-outs for renovations, business opportunities, taxes, or major expenses Credit rebuilding when a temporary credit issue has affected bank qualification Short-term financing while preparing for a future refinance with a traditional lender Unique properties or situations that may not fit standard lender guidelines Private mortgages generally have higher interest rates and lender fees than traditional mortgages, and are usually intended as a short-term solution. Before proceeding, we help clients understand the total cost of borrowing, repayment options, and a clear exit strategy—such as a sale, refinance, or improved qualification with an institutional lender. For Investors Private mortgage investing allows investors to participate in real estate–secured lending, with the mortgage registered against a property as security. Opportunities may include: First or second mortgages secured by residential or commercial properties Short-term lending opportunities with defined terms Loans supported by borrower equity and property value Potential interest income paid monthly or at maturity Investment opportunities that may complement a diversified portfolio Each opportunity is different. Important factors include the property value, loan-to-value ratio, borrower profile, mortgage priority, term, location, and the borrower’s exit strategy. Private mortgage investing involves risk, including the possibility of delayed payments, borrower default, enforcement costs, property-value changes, and limited liquidity. Returns are not guaranteed. How We Can Help We work with borrowers, private lenders, and experienced investors to help facilitate mortgage solutions that are transparent, properly structured, and aligned with the needs of all parties. Every file is reviewed individually, with attention to the security, terms, risks, and exit strategy. Private lending should always be approached with professional advice. Borrowers and investors should obtain independent legal, financial, and tax advice before entering into any private mortgage transaction.
Second or Vacation Homes
Make your second home or vacation property dreams a reality. Buying a Second Home or Vacation Property in Canada Whether you are looking for a cottage, condo, or weekend getaway, financing a second home can be more achievable than many buyers expect. The right mortgage strategy depends on how you plan to use the property, its location, your down payment, and your overall financial picture. 1. How much down payment do you need? For a qualifying second home that will be used by you or your family, insured financing may be available with as little as 5% down on the first $500,000 and 10% on the portion above $500,000. The property generally needs to be suitable for year-round occupancy and have year-round access. For properties that do not meet insured-financing guidelines—such as certain seasonal cottages, remote properties, or rental-focused vacation homes—lenders will often require 20% or more down. 2. Your existing mortgage matters When qualifying for a second property, lenders review the complete picture, including: Your current mortgage payment, property taxes, and heating costs The new mortgage payment and carrying costs Credit history, income, and outstanding debts Available savings and emergency reserves Whether any rental income may be used for qualification A mortgage broker can review multiple lender options and help determine whether a new mortgage, refinance, home equity line of credit, or combination strategy makes the most sense. 3. Vacation home or investment property? The intended use of the property is important. A vacation home is generally for your personal use, such as a cottage, ski chalet, or condo used by you and your family. Depending on the property and lender guidelines, it may qualify for more flexible financing. An investment property is purchased primarily to generate rental income. These properties typically require a larger down payment and may be subject to different qualification rules. Short-term rental plans can also affect lender eligibility, so it is important to discuss your plans before making an offer. 4. Budget for more than the mortgage payment A second home comes with additional costs beyond the mortgage, including: Property taxes and utilities Insurance, which can be higher for seasonal or waterfront properties Maintenance, repairs, and winterization Condo fees, if applicable Travel, dock, septic, well, or road-maintenance costs for cottages Closing costs, land transfer tax, legal fees, and appraisal fees Planning for these costs upfront helps ensure your second home remains an enjoyable addition to your lifestyle. 5. Get pre-approved before you shop A pre-approval can help you understand your budget, payment options, and down payment requirements before you begin viewing properties. It also allows us to identify potential financing concerns early—especially for cottages, rural properties, private roads, wells, septic systems, or properties with seasonal access. Thinking about a second home or vacation property? We can review your current mortgage, equity, income, and goals to create a financing plan that works for you and your family.
Self Employed Program
Flexible mortgage solutions designed for self-employed Canadians and their unique income. Mortgages for the Self-Employed? The number of self-employed Canadians is growing. This demographic faces challenges when seeking a mortgage that full-time employees do not have to worry about, mainly because it is more difficult to prove you have a reliable regular income. Many lenders do not offer loans to self-employed people as they feel they pose too much of a risk. Because of this, lenders approach mortgages for the self-employed differently not only in what they require as proof of income but also the rates and terms they are willing to offer. The Office of the Superintendent of Financial Institutions (OSFI) introduced Guideline B-21, which requires federally regulated banks to look more closely at self-employed incomes in the mortgage approval process. This means that self-employed homeowners will require income verification in order to offer reasonable proof they do have a steady income, including: Verified income amount by an independent source Source of verification that is difficult to falsify The amount of declared income is verified directly by the source There are no contradictions in the income verification Purpose of Mortgages for the Self-Employed The Canada Mortgage and Housing Corp. (CMHC) has recognized that roughly 15% of the population is self-employed. They understand this demographic is faced with difficulty when it comes to qualifying for a mortgage. Mortgages for the self-employed are designed to meet their needs, so they have a better chance at homeownership. The CMHC has made changes to provide guidelines to lenders so they can be more flexible when it comes to serving self-employed borrowers. The changes include tips that will make it easier for lenders to qualify self-employed borrowers, who have been self-employed or owned their business for less than two years. The CMHC recommends looking at factors that include: Acquisition of an established business Sufficient cash reserves Predictable earnings Previous training and education The mortgages will help provide more flexibility for lenders while opening doors for self-employed mortgage borrowers. This will be especially helpful for younger self-employed people. It also provides support for those who demonstrate entrepreneurship and the ability to build their own businesses and sources of income. The changes will assist self-employed borrowers who: Will put less than 20% down and require high-ratio default insurance Will put more than 20% down and are using a lender that insured all of its mortgages We can help you find lenders who specialize in programs for self-employed borrowers. What Are the Requirements to Qualify? To qualify for a self-employed mortgage, you will require personal tax Notices of Assessment from the past two to three years. This provides proof enough to most lenders that you do have a dependable source of income. With this proof, you are more likely to enjoy the same mortgage products and rates as traditional borrowers. If you don’t have this proof, you will have to prove you have an outstanding credit history. You will also need at least 10% for your down payment. Other supporting documentation required will include: Your business financial statements Proof you do not owe anything on your HST and/or GST Contracts showing expected revenue for the coming years if applicable Your personal and business credit scores Proof you are a principal business owner A copy of your borrower’s business or GST license or Article of Incorporation showing you are licensed Proof that funds for your down payment were not gifted How Are Self Employed Mortgages Calculated? A federally chartered bank can only lend 65% of the purchase value of the property to the self-employed. Some credit unions might be willing to up this to 80% because they aren’t federally regulated. This would also be without requiring default insurance. In most cases, however, you would be paying higher interest rates. For financing between 65% and 90%, default insurance is required by traditional lenders such as banks. We can help you find the best options for self-employed mortgages with the intent to find the same rates and terms as those offered to traditional borrowers when possible.
Mortgage Renewal or Transfers
Renew your mortgage with confidence, better options, and expert guidance. Mortgage renewals offer an opportunity for homeowners to get a better rate. However, many homeowners decide to stay with their existing mortgage lender without realizing they are in a position to shop around and find better options. Although you might believe your bank or current lender will provide the best deal, this is not always the case. Speak to a mortgage broker and find out your options. We will work with you to find the best rate and terms that will allow you to have the lowest monthly payments while focusing on paying down your mortgage as soon as possible. Often banks and some lenders will have a maximum ceiling discount of 1% they are allowed to offer. This limits your opportunities to save. How Are Mortgage Transfers Done? When it comes to mortgage transfers, you use your existing mortgage when you sell your home and purchase a new one. This is also called “porting.” This is an excellent option as it allows you to transfer your mortgage to a new property without paying an early repayment penalty. Although some mortgages are not “portable,” in most cases, you can take your mortgage with you when you move. However, several considerations come along with mortgage transfers. This is because whenever a home is sold, you take the money received and use it to pay off your current mortgage in full. Because of this, you still have to apply for a new mortgage, even if you are transferring your mortgage. As well, your lender will want to assess the new property and reassess your current income to make sure you still meet the affordability criteria. The good news is that most lenders will allow you to take your existing mortgage deal as long as you meet the requirements. It becomes even more appealing to transfer your mortgage if you are buying a cheaper home. For example, homeowners looking to downsize would benefit from a mortgage transfer. There’s no worry of borrowing more, and you’ll more easily be able to port your mortgage for your new property. However, you will still have to complete the underwriting process. Mortgage Renewal Process When you renew your mortgage, you will have to take the following steps: Shopping and Research: We can help you with this stage. You can start shopping about four months out from your mortgage term’s maturity date and even speak to your current lender to see if they might consider offering a new rate early without a penalty. We will provide a list of the best options available so you can consider them without any pressure before your mortgage renewal date arrives. Some things to consider during the mortgage shopping process: Increasing mortgage payments to pay your mortgage off more quickly The option to make a lump sum payment if you are coming into a large sum of money soon Paying off your mortgage completely Borrowing money based on your home equity Portability if you plan to make a move in less than five years Mortgage Renewal Statement: Your current lender is required by law to send you a mortgage renewal statement at least 21 days before your term is up. This will usually arrive in the mail and will include an offer based on their lowest posted rate. This rate will be available for 30 days before your mortgage reaches maturity. The extension protects you from potential rate increases. If you’ve completed your research, you will know right away if the rate is the best available. Negotiation: You have the right to negotiate a better rate with your lender. In most cases, they will have already offered you their best rate, but it never hurts to ask. We can negotiate on your behalf with the lenders we find to help you get the best possible rate. Mortgage Renewal Rates Mortgage renewal rates will not always be better. In the case where there is a rate cut, you will reap the benefits of finding yourself paying lower monthly payments and also being able to pay more towards your principal more quickly. Some mortgage renewal rate considerations include: Although your bank might have a posted rate, it is never the lowest rate, so always ask. Although low always sounds better, it might not be the best. Consider the terms in hand with the rate you are offered. If you are currently making your payments without issue, lower your rate, but continue to pay the same monthly amount. This will reduce your overall amortization so you can pay off your mortgage sooner. When it comes to mortgage transfers and renewals, it is always advisable to speak to a mortgage broker. We have access to rates for over 50 lenders allowing us to separate the options that will work best for your needs. You can begin your search early and arrange to have the rate locked in or even renew early if this option is available for you.
Fixed Versus Variable
Choose fixed or variable rates with confidence and expert guidance. Understanding Canadian Fixed Versus Variable Mortgages When it comes to the different types of mortgages, the main considerations are the risk. A variable mortgage adjusts your monthly mortgage payments based on the current interest rates, whereas a fixed mortgage locks into a specific interest rate, so you always pay the same amount. You might wonder why anyone would choose a variable rate mortgage, knowing they can fluctuate from month to month. However, the interest rate is typically lower than that of fixed-rate mortgage products, which can save quite a bit of money over the life of your mortgage. The variable mortgage isn’t for those who can’t afford changes in their monthly budget demands. They are more suited to those who can weather a financial challenge. On the flip side, should rates drop, you have much to gain by the lower monthly payments. A fixed-rate mortgage charges a set rate of interest, so it makes it easier to budget over the life of your loan. The amortization schedule can change; this is the number of your payments that go toward principal and interest. During the first years of your mortgage, the payments are primarily going towards interest. As the life of the mortgage goes on, you will eventually be paying towards the principal only. Your fixed-rate mortgage avoids the stress of suddenly paying more each month. However, you will be paying higher interest rates overall when compared to variable rates. Is Fixed Rate Mortgage or Variable Rate Mortgage Better? It depends on your budget, financial stability and sense of risk. When it comes to the fixed-rate mortgage, your monthly repayment always stays the same. This means no surprises, and you can steadily focus on paying down your mortgage. This is the best choice for those on a tighter budget or someone who might see less dependable income, such as part-time or self-employed homeowners. Overall, you stand to save more over the term of your mortgage. However, where you stand to lose is if interest rates go down and stay down, you will end up paying potentially higher interest. You also have to look beyond the actual rates. Fixed-rate mortgages tend to be less flexible, which means you will face steeper fees if you wish to back out of your mortgage for any reason. For the variable mortgage, you are looking at more of a gamble when compared to the fixed rate. Although you could get lucky and see rates drop, it is more likely you will see mild increases. You’ll also get a lower interest rate upfront than those choosing a fixed rate. If you can withstand paying as much as 2% more, then you can feel confident in taking the variable rate mortgage if you are comfortable with risk. So how do you know which mortgage is best for you? Although it might seem there is no risk associated with a fixed-rate mortgage, you have to keep in mind that you could miss out if interest rates drop. Some things to consider when choosing the right type of mortgage: Do you have room in your budget that would allow you to afford a rise in your monthly payments? Are you more comfortable planning a budget with a firm monthly mortgage payment? Is there any sign that mortgage rates could drop, and you’ll miss out on by having a fixed mortgage? How Does the Bank of Canada Decide the Prime Rate? The Bank of Canada (BoC) has a responsibility to promote the economic and financial welfare of Canada. It sets monetary policy to create solid economic performance while avoiding too steep a rise in the cost of living for Canadians. Part of this policy includes interest rates. When the BoC raises or lowers the target for the overnight interest rate, it influences changes in other market interest rates. This means it affects the demand for credit, money, and actual banknotes. The BoC uses inflation rates as the primary target in the belief that high inflation damages the economy while making things too costly for individuals. Because inflation is a variable that can influence the overall economy, it is viewed that a rise in interest rates can cool an economy while lowering them accelerates the economy which in turn will increase inflation. The overnight rate will affect how much you pay when you borrow money. When the overnight rate increases, it costs banks more to borrow money, so they will raise their prime rates. However, should the overnight rate lower, banks pass that savings on to their customers. How are Payments Set Up for A Variable Rate Mortgage? A variable rate mortgage will provide constant regular payments but show changes to your interest rate based on market conditions. This will affect how much of your principal is paid off each month. When rates decrease, you’ll see more of your regular payment go towards your principal, whereas if they increase more goes towards interest. Variable rates depend on the lender’s prime rate, which is linked to the BoC rate. The rate will change using basis points, a unit of measure that represents 1/100th of one percent (0.01%). So, if interest rates increase by 50 basis points, they increase your interest rate by 0.5%. This change is used to calculate the change in the interest rate and how much you will pay towards interest each month.
Rental / Investment Properties
Build wealth with a rental property mortgage tailored to your goals. Investment Property Mortgage? If you are looking for a safe investment option for your money, investment properties can prove to be low-risk with high returns. This is because investment properties offer you a rare opportunity to invest in a proven equity building asset using a mortgage to pay for up to 80% of the upfront purchase price. When you invest in a property, you use your tenants’ rent to pay for your mortgage, while equity in your property continues to build. Although you will face a more complicated process than you did for your home mortgage, it is well worth the effort if you have an entrepreneurial spirit. The two main factors in financing your property investment are the number of units in the building, and if whether you will live in one of the units. Therefore, the number of units plays an important role when shopping for an investment property. In most cases, buildings with 1-4 units will be zoned as residential. In this case, the qualification criteria and financing options are not quite as complex. They tend to be reasonably close to the mortgage application process you experienced for your principal residence. If you are looking at buildings with five or more units, they will be zoned commercial. This means lenders require investors to apply for a commercial mortgage. The commercial mortgage qualification criteria are not only tougher but also, more often than not, will come with higher interest rates. For multi-unit properties, you have the option to choose to live in one of the units. This is a good option, as your property would then be considered owner-occupied. Otherwise, the property is considered non-owner occupied, which will affect the amount required for a down payment. Understanding Rental Property Mortgage Rates As of April 19th, 2010, investment properties require a down payment of at least 20% in Canada for non-owner-occupied properties. A breakdown of the owner and non-owner-occupied investment properties is as follows: Owner-occupied with 1 to 2 units requires a 5% down payment and 20% for non-owner occupied Owner-occupied with 3 to 4 units requires a 10% down payment and 20% for non-owner occupied As mentioned, if you choose to live in your investment property, your down payment can be as low as 5% to 10%, based on how the number of units. On February 15th, 2016, changes were made to requirements for investment properties with a purchase price of over $500,000. The minimum down payment for owner-occupied properties is now 5% for the first $500,000 plus 10% of any amount over $500,000. As with your home property, mortgages for investment properties are available with different mortgage rates and terms, including fixed, variable and adjustable-rate mortgages. You have to apply for your mortgage and meet the qualification criteria including meeting the minimum down payment requirements to qualify. Working with our mortgage brokers is your best option for finding an investment property mortgage as some smaller lenders don’t offer investment options unless you plan to live in one of the units. As well, smaller lenders will charge a premium to their mortgage rate for investment property mortgages. Our mortgage brokers will search up all of your options and help you avoid paying unnecessary premiums. Keep in mind if you put down less than 20%, you will have a maximum amortization period of 25 years. For down payments of 20% or more, you can qualify for up to a 30 or 35-year amortization period whether you live in a unit or not. How to Get A Mortgage for Rental Properties? To qualify for an investment property mortgage, you will go through a very similar application process to qualifying for your home property. You will need to provide us with the following: The Agreement of Purchase and Sale Proof of your down payment available based on the qualifying criteria Proof of steady income or Notice of Assessment for two years of T1 Generals if you are self-employed Outline for all current renters, if there are any Zoning documentation showing this is either a residential or commercial property A credit check will be run, and your debt coverage ratio will be calculated. As with any loan, you will have to prove you can meet your monthly debt obligations and expenses. The debt ratio calculations used would include: Gross Debt Service Ratio (GDS): the percentage of your gross income needed to cover your housing expenses. Total Debt Service (TDS): the percentage of your gross income needed to cover housing expenses plus all of your other debts. As well, there are two extensions of the basic GDS/TDS calculation used for investment property mortgages, which also consider your potential rental income. This is because the rent will help contribute to your ability to cover your mortgage payments. The extensions include: Rental Offset: This is usually 50% to 70%. If your rental offset is 50%, then 50% of your total rental income for the year goes towards offsetting expenses. You will never get a 100% rental offset because lenders consider issues such as vacancies and unpaid rent. Rental Inclusion: This is 50% of your annual rental income added to your actual income to help qualify you. Since the rent generated from your property is the primary source of repayment for your mortgage in most cases, the final qualification method is based on a cash flow assessment. The Debt Service Coverage Ratio (DSCR) is calculated using the Net Operating Income (NOI) from your property, which is divided by the annual mortgage payments (principal and interest). NOI is the total income of the property less operating expenses. In order to qualify, your DSCR ratio should be higher than 1 to show your property will generate the required income to cover your debt. You want the highest ratio possible to obtain a loan, but also to show how your investment will work to earn your income.
Pre-Approval
Get Pre-Approved Today and Shop for Your New Home Confidently. Mortgage Pre-Approval? Buying a home is an exciting prospect. You probably can’t wait to get started on your home search. However, before you start your search, you should apply for mortgage pre-approval. With mortgage pre-approval, you will have all the vital information you need regarding financing for your home. After all, what’s the point of beginning a home search if you don’t understand how much money a lender will be willing to lend you? Pre-approval is a free process and doesn’t require any commitment to a lender. Instead it simply guarantees that you are a) approved for your mortgage b) for how much and c) what mortgage rate is being offered at the time of your pre-approval. Once you are pre-approved, the mortgage rate offered stays in place from 120 to 160 days. This provides plenty of time to shop for your dream home while your rate is locked in. If interest rates rise, you have no worries. If it should go down, you will be offered a new lower rate. It truly is the best first step in the home buying process. 4 Considerations for Mortgage Pre-Approval When you decide to get pre-approved, you can meet with our experienced mortgage brokers. We will help you determine a budget for your home so you know how much you can realistically afford. We will review your situation with a friendly chat and also require some personal information and documentation to begin the pre-approval process. Here are the four things we consider during the mortgage pre-approval process: Checking Your Credit Score: As you probably know, the pre-approval process is looking at your financial health. Potential lenders want to ensure you do not present too much of a risk with their money! To be approved for a mortgage, you will require a credit score between 680 and 900. The higher your credit score, the more “A” level lenders you’ll be able to consider. This would include major banks. For those with a score between 600 and 679, the research into your finances goes a little deeper. If it is determined your finances aren’t looking as healthy, you present more risk and will only be considered by “B” level lenders. Anything below 600 also means you won’t have access to the best available mortgage rates. Down Payment: When you purchase a home, you will require a lump sum to be paid upfront. This is called a down payment. You have to make a minimum of 5% down payment when purchasing a home in Canada. As well, if you have less than 20% for your down payment, you have to buy mortgage default insurance. This insurance protects the lender from you defaulting on your mortgage. This is an important consideration as it will directly affect how much lenders are willing to offer you. If you are looking at buying a home between $500,000 – $999,999, the down payment rules are different. For the first $500,000, you need 5% down and then 10% for anything above that. Debt Service Ratios: These are necessary calculations designed to determine how much of a mortgage you can afford. As you know, your mortgage will require monthly payments. The lenders consider your monthly income and debt to decide if you can make your payments or are more at risk of missing payments or worse default. They consider all financial commitments and expenses to make a sound judgement on how much risk you present. Documentation: Of course, all claims you make about your finances will have to be supported with documentation. For your convenience, we’ve also provided a checklist of what you will require when applying for pre-approval below. Your Mortgage Pre-Approval Checklist Once you decide you want to proceed with the pre-approval process, here’s what you will require: Social insurance number Proof of employment Proof of income Tax documents Place of Residence Bank account information Credit information Purchase agreement Gift letters Monthly expenses Self-employment documents Identification Length of time with an employer Proof of down payment and ability to pay closing costs Proof of assets Debt information, including credit cards, lines of credit, car loans, student loans, etc. Spousal or child support payments Personal loans We will discuss everything with you, so you feel comfortable with the process. Why is it Important to Prequalify For a Mortgage? Why take the time to get mortgage pre-approval? As mentioned already, it’s pretty hard to start a home search if you don’t know your budget. Many people make assumptions and are way off on their calculations. Remember, you might be aiming too high, but you could also afford more than you think. When you get pre-approved, you’ll save time in your home search because you can ask your real estate agent to focus on the homes you know are in your price range. Your real estate agent will work harder because they will know you are serious about a home purchase since you have pre-approval. If you do decide to start your home search before getting pre-approval, you will be faced with a challenge if you find a home you want to purchase. In the offer process, the seller will want proof you can afford the home, which you can only provide with a pre-approved mortgage. It provides buying power when you are faced with a potential bidding war, as well. You can lock into current interest rates. House searches can take more than three months and knowing you have a good rate locked in offers peace of mind. If rates drop, you still get the lower rate. Pre-approval also confirms: The maximum budget for your home search Your monthly mortgage payments Your mortgage rate It keeps you focused on exact numbers so you don’t get side-tracked by homes you can’t afford
First Time Homebuyer
Guiding First-Time Homebuyers Toward Confident, Affordable Homeownership Every Step. Mortgage as a First Time Buyer Buying your first home is one of the most exciting and fulfilling experiences of your life. Being able to invest in this significant asset will provide you with a home to call your own while helping you build instant equity with every mortgage payment you make. However, there are many things you should know before you decide to buy. One of the most important steps in the home buying process is determining if you can get a mortgage and also how much money the lender will be willing to offer you towards your home. With this in mind, you should first speak to a mortgage broker. They can assist you in determining what mortgage is available based on your credit and finances. This is the beginning of the mortgage pre-approval process. When you meet with your mortgage broker, you should have an idea of what you are looking for in a home. You want to consider what type of home you need today, and whether or not you plan to be there for a few years or for the longer term. Some of the most critical factors that will affect your home search include: The areas you would like to live Home and property size Type of home such as a condo or a detached house Amenities that are important to you Travel distance to work and local transportation Wants versus needs New construction, resale or custom home These factors are helpful when discussing your needs with our mortgage brokers. When you meet with our mortgage brokers, you will also require some documents including: government-issued photo ID contact information for your employer proof of address, income, down payment, savings and investments details of current debts your credit score This information will be used when we begin the pre-approval process. How Much Can You Afford? Of course, first-time buyers have to be certain they can afford a home purchase. Your pre-approval will help you determine this. However, you also want to know that you can meet your payments without putting too much strain on your budget. We can help you decide this, but you can also ask yourself some financial questions before our meeting, including: How much do you currently spend on expenses and debt payments? How much have you saved or invested? How much do you feel you can pay towards your mortgage each month without running into financial issues? How much can you or have you saved for a down payment? How would homeownership expenses affect your current financial situation such as utilities, repairs, home décor, insurance, etc.? You can also consider the following upfront costs, so you have a better understanding before you meet with our mortgage brokers: the down payment home inspection and appraisal fees insurance costs land registration fees prepaid property taxes or utility bills (the buyer reimburses the seller or builder) legal or notary fees potential repairs or renovations moving costs GST/HST/QST on a newly built house or mortgage loan insurance All of these costs add up and make an impact on the house you can afford. Last but not least, do you know your credit score? Remember, in order to qualify for a mortgage; you have to show lenders you have been able to pay bills and debts. During the pre-approval process, we will run a basic credit check, but you might also want to get a copy of your credit report, so you know what to expect. We can offer advice on how you can improve your credit score. With all of this information, you will be better able to decide how much of a mortgage you can afford. How the First Time Home Buyer Incentive Program Works As a first-time homebuyer, you can apply for the Home Buyer Incentive program. There are a few qualifiers for first-time buyers, including: You require the minimum down payment You can make no more than $120,000 per year You are limited to total borrowing to 4 times the qualifying income With these qualifiers, you are allowed to apply for a 5% or 10% shared equity mortgage with the Government of Canada. This means the government shares in the upside and downside of the property value. You also don’t have to increase the amount you have available for your down payment. As well, there is no interest or ongoing payments applied to the government’s contribution. In a nutshell, the Government of Canada’s contribution depends on the type of home. They will offer: 5% for a first-time buyer’s purchase of a re-sale home 5% or 10% for a first-time buyer’s purchase of a new construction The homes that are eligible include: New construction Re-sale home New and re-sale mobile/manufactured homes Types of homes include: Single-family homes Semi-detached homes Duplex Triplex Fourplex Townhouses Condominium units The home must be your primary residence and be used full-time for year-round occupancy. You have 25 years to repay the incentive. You will also have the option to make a repayment in full without a pre-payment penalty often charged by lenders. If you refinance your mortgage, this will not mean your repayment is triggered. If you sell the property before the 25 years is up, you have to repay the full incentive at that time. However, if you do decide to sell, you have to obtain approval of the sale from the Program Administrator. The finances are as follows: The incentive is based on a 5% or 10% incentive of the home’s purchase price of $200,000, or a flat incentive of $10,000. Because the government shares in your investment, the percentage they contribute applies to the current value when you pay back the incentive. For example, if your home rises in value to $300,000 and they contributed 5%, you would have to pay $15,000. If the home decreases in value, your repayment value is still reflected in the current value, so you would pay less. If you are a first-time homebuyer, our mortgage brokers can provide all the information you need for pre-approval and the mortgage and closing process. In-person connections are still important to homebuyers. In an increasingly technological world, both lender and broker clients still value in-person connection throughout the home buying process. Nearly three quarters (73%) of buyers agree it is important to discuss face-to-face with their mortgage professionals. However, half would feel comfortable using more technology to arrange their next mortgage transaction (i.e. their mortgage renewal).
Debt Consolidation
Consolidate your debts, simplify payments, and regain control of your finances. Consolidation Mortgage? A Debt & Credit Consolidation Mortgage allows you the option to consolidate your debt into a mortgage. To do so, you are breaking your mortgage in order to add other debt such as credit cards, car loans, and lines of credit. You then negotiate a new mortgage for better terms and a lower interest rate, so you don’t continue to waste money on higher interest rates associated with credit cards, lines of credit, etc. Once you have a debt and credit consolidation mortgage, you will see your debt decrease, but your mortgage debt will increase. You will have to consider a number of factors that will come into play, including paying a couple of thousand dollars to cover the penalty fee for breaking your mortgage. You might also have to pay a potential Canada Mortgage and Housing Corporation (CMHC) premium when your mortgage balance increases due to your outstanding debt. The good news is you will be paying a lower interest rate on your non-mortgage debt, which should allow you to pay the debt down more quickly. Overall, you will probably still take the same amount of time to pay down your overall debt as you will owe more on your mortgage. It will all depend on the terms of your new mortgage. How Does Debt & Credit Consolidation Mortgage Work? Refinancing your existing mortgage into a consolidation loan takes all of your outstanding non-mortgage debt and adds it to your mortgage, so you have just one payment to make each month. This is appealing to many people as you no longer have to try to find the funds to cover each debt separately. If you have high-interest loans such as credit cards, you can avoid the money going on interest and instead focus on paying down the principal. As a homeowner, you can access a maximum of 80% of the appraised value of your home minus the remaining mortgage. This can provide plenty of funds to cover your debt, depending on how long you have owned your home. You will find that you do have different interest rates on a debt consolidation mortgage then you do on your current mortgage, and your mortgage terms will also change. It all depends on your current mortgage, lender and other options available. Debt consolidation mortgages use a structured payment plan and an assured pay-off date. You can choose the payment schedule that works for you, whether it is weekly, biweekly, semi-monthly or monthly. There will be refinancing fees applied depending on the lender and your current mortgage terms. We can help you decide if a debt consolidation mortgage is in your best interests and review any drawbacks specific to your finances. Do I Qualify for Debt & Credit Consolidation? There are several factors at play when it comes to qualifying for debt and credit consolidation mortgages, including: Credit history Financial stability Home equity Proof of income You can consolidate many different types of loans, including: Auto loans Credit card loans Personal lines of credit Student loans Benefits of Debt & Credit Consolidation Your home equity provides an excellent option to access funds that will help pay down your debt quickly. You combine all of your debt into one easy payment making everything easier to manage. However, like a home equity loan, the lender will be using your home as security which can cause worry for some homeowners. The most appealing aspect of credit consolidation is that Interest rates on equity lines of credit are much lower. Because your loan amount is based on the equity in your home, you usually get a higher credit limit. If you are looking at your home equity line of credit (HELOC), you can get a maximum of 65% of your home’s appraised value. The more you’ve paid off on your mortgage, the more equity you have built and the more money the lenders will be willing to offer you. You only pay interest on the money you use to pay off your other debts, and the remainder will be available if you need it. Benefits of a debt consolidation mortgage include: Flexible repayment options Lower interest rates and monthly payments No prepayment charges Only pay interest on used funds Pay off debt quicker Possible tax deductions Reusable credit as you pay down the loan Although this is not for everyone, debt and credit consolidation via your mortgage can provide peace of mind while helping you reduce your overall debt more effectively.