Below are the most common questions about the mortgage process. If your question isn't listed, feel free to reach out — free consultation, no obligation.
A pre-approval helps you understand your budget before making decisions and shows sellers you are serious. In competitive markets, pre-approved buyers are often preferred.
Pre-approvals typically lock a rate for a period (usually 90–120 days). If rates rise during that period, you keep the locked rate; if rates fall, you may benefit from the lower rate.
Generally, you will need:
Self-employed applicants may need additional documents such as T1 General, financial statements, or business registration. Newcomers may only need landing documents and proof of down payment.
With complete documents, a pre-approval usually takes 1–3 business days. If documents are incomplete or additional verification is required, it may take longer.
I recommend starting the pre-approval at least one week before viewing homes so you are ready when you find the right property.
Yes. Pre-approval rates typically have a 90–120 day lock period. If you exceed the lock period without completing a purchase, you will need to reapply and the rate will be set based on market conditions at that time.
If your purchase timeline exceeds the lock period, let me know in advance so we can assess whether to extend the lock or reapply.
Fixed rate: The rate stays the same throughout the term. Payments are stable, suitable for borrowers who prefer certainty.
Variable rate: The rate moves with the market benchmark. It may go up or down. Variable rates are often lower initially, but payments may change as rates move.
The right choice depends on your risk tolerance, financial situation, and view on future rates. I can walk you through the pros and cons based on your situation.
Term: The length of your contract with the lender, usually 1–5 years. At the end of the term, you renew or transfer.
Amortization: The total number of years to pay off the mortgage, usually 25 or 30 years.
For example, you might choose a 5-year term with a 25-year amortization. After 5 years, the remaining balance is renewed at a new rate and terms.
In Canada, minimum down payment depends on the purchase price:
If your down payment is less than 20%, mortgage default insurance (CMHC, Sagen, or Canada Guaranty) is required.
The stress test is a requirement for federally regulated lenders in Canada. You must qualify at the higher of "contract rate + 2%" or "5.25%".
For example, if your contract rate is 4.5%, the qualifying rate is 6.5% (4.5% + 2%). The lender calculates your payment at 6.5% to assess affordability.
You can use our stress test calculator to estimate results.
In most cases, the lender pays the broker's commission, and the borrower does not pay directly. This is one reason working with a broker is often more cost-effective than going directly to a bank.
In certain situations (private mortgages, complex files), fees may be payable by the borrower. Any such fees will be disclosed to you in writing before service begins.
No. Mortgage brokers work with multiple lenders and can compare rates and terms across a wider range. In many cases, brokers can access rates lower than posted bank rates.
The value of a broker isn't only the rate — it's matching you with the right lender, preparing a complete application, coordinating the approval process, and solving issues that arise along the way.
Common additional costs include:
Budget 1.5%–3% of the purchase price to cover these costs. Use our Property Transfer Tax calculator to estimate the tax.
Yes. Self-employed borrowers need additional income documentation, and many lenders offer programs designed specifically for them.
Common approaches include:
Lender requirements for self-employed borrowers vary widely. Consult in advance to match with the right lender.
Yes. Many Canadian lenders offer programs for newcomers, typically requiring:
Newcomer programs often do not require Canadian credit history or income verification, but rates and terms may differ from traditional mortgages. Conditions vary by lender.
Yes. Work permit holders can generally apply, though lender requirements for permit type and remaining validity vary.
Confirm your permit status and mortgage eligibility before purchasing.
Yes, but options may be limited. With a lower credit score, traditional banks may decline, but some B-lenders or private lenders can still offer solutions.
Generally, the lower the credit score, the higher the rate and down payment requirements. If your credit score is not ideal, I can help identify which lenders are a better fit and suggest ways to improve your score.
Some lenders accept foreign income, typically requiring:
Foreign income policies vary widely by lender. Consult in advance to confirm whether your situation qualifies.
Your current lender typically sends a renewal offer 3–4 months before maturity. Don't just sign — compare against other lenders first.
At renewal, consider:
I can compare your current lender's renewal offer against other options to make sure you get the right terms.
It depends on your situation. Common reasons to refinance include:
Refinancing may involve prepayment penalties, legal fees, and appraisal costs. Calculate the total cost against the savings before deciding. I can help with this analysis.
Possibly. Prepayment penalties depend on your mortgage contract and mortgage type:
IRD calculation methods vary by lender and can result in significant penalties. Before prepaying or refinancing, confirm the penalty with your current lender and assess whether it's worth it.