Frequently Asked Questions
General
1) What does a mortgage broker do?
I shop your mortgage across banks, credit unions, and non-bank lenders to find you the best mix of rate + approval strength + flexible terms. I also structure the deal properly so you avoid costly mistakes and get funded on time.
2) Why use a broker instead of going to my bank?
Your bank can only offer their products. I can compare multiple lenders and negotiate the best fit for your goals—often saving you money in interest and avoiding hidden costs like harsh penalties.
3) Do mortgage brokers cost money?
Most of the time, no—the lender pays me when your mortgage funds. If a file requires alternative/private lending, I’ll explain any fees upfront before you commit.
4) How do I get started?
Book a quick call. I’ll review your income, debts, credit, and down payment, then tell you exactly what you qualify for and the best path forward—fast and clear.
5) What documents do I need?
I’ll provide a simple checklist. Typically: ID, pay stubs, job letter, NOA/T4s, proof of down payment, and debt details. If you’re self-employed, I’ll guide you on the right income docs to strengthen the approval.
6) How long does approval take?
If documents are ready, many pre-approvals can be done in 1–3 business days. My job is to keep things organized so you don’t lose time—or the home you want.
7) Pre-qualification vs pre-approval?
Pre-qualification is a quick estimate. Pre-approval is the real strategy: I verify the numbers, review your credit, and help you secure a rate hold so you shop with confidence.
8) How much mortgage can I afford?
I’ll show you two numbers: what you qualify for and what you should comfortably afford, including realistic payments and monthly costs.
9) What credit score do I need?
It depends. Prime lenders typically want strong credit, but I can often find options even if your score isn’t perfect—especially if the rest of your file is solid.
10) Can I buy with bad credit?
Yes—sometimes the best move is a “step plan”: get you approved now (if needed), then improve the file and refinance later into a lower rate. I’ll map out the smartest path.
Rates & Strategy
11) How are mortgage rates determined in Canada?
Fixed rates are influenced by bond yields. Variable rates are closely tied to prime and the Bank of Canada. Your credit, down payment, and property type also affect pricing—and I help you position your file for the best rate class.
12) How do I get the best rate?
Simple: strong presentation + the right lender + the right product. I don’t just chase the lowest headline rate—I find the mortgage that saves you the most money over time.
13) Fixed vs variable?
Fixed = stable payments. Variable = potential savings but more rate risk. I’ll show you both options side-by-side, with real payment scenarios so you can choose confidently.
14) Open vs closed?
Closed is typically lower rate but penalties if you break early. Open offers flexibility but usually costs more. I’ll recommend based on your timeline and likelihood of selling/refinancing.
15) What term should I choose?
Most Canadians choose 3–5 years, but the “right” term depends on your plans. If you might move, refinance, or pay down aggressively, term selection matters a lot.
16) Can I lock in a rate?
Yes. I can secure a rate hold with many lenders so you’re protected if rates rise while you shop.
17) How long is a rate hold?
Often 90–120 days, sometimes longer depending on the lender and product. I’ll align the rate hold with your timeline.
18) Will my rate change during the term?
Fixed won’t. Variable can. Some variable mortgages change payment; others change amortization instead. I’ll explain it clearly before you choose.
19) What is the Canadian stress test?
It’s a qualifying rule requiring you to qualify at a higher rate than your contract rate. It impacts how much you’re approved for—and I help you structure things to maximize qualification.
20) How does the stress test affect my approval?
It reduces your maximum approval amount because the lender tests you at a higher interest rate. Smart debt cleanup and proper structuring can make a big difference.
Down Payment & Closing Costs
21) Minimum down payment in Canada?
Typically 5% on the first $500,000 and 10% on the portion up to $999,999. Homes $1M+ usually require 20% minimum. I’ll confirm based on your exact purchase and lender rules.
22) Down payment vs deposit?
Deposit is what you provide after your offer is accepted. Down payment is the total amount applied at closing (including the deposit). I help you plan the timing so there are no surprises.
23) Can my down payment be a gift?
Yes. I’ll provide the gift letter template and make sure the bank statement trail is clean so underwriting goes smoothly.
24) Can I use RRSPs (Home Buyers’ Plan)?
Often yes if eligible. I’ll coordinate the timing so you don’t run into delays with withdrawals or closing.
25) What closing costs should I budget for?
Legal fees, land transfer tax, title insurance, appraisal (if needed), adjustments, and moving costs. I help you budget properly so you don’t get hit with last-minute expenses.
26) What is CMHC insurance?
If you put less than 20% down, default insurance is usually required. It allows access to insured rates and makes approval easier in many cases.
27) How much is default insurance?
It depends on your down payment size and insurer rules. I’ll show you the premium impact and whether 20% down makes more sense for your situation.
28) What land transfer taxes will I pay?
It depends on the province—and in some cities (like Toronto) there’s an extra municipal tax. I’ll help you estimate it early so you’re not guessing.
29) Do I need a home inspection?
Not always required by lenders, but it’s often a smart move—especially for older homes. I want you protected, not just approved.
30) Do I need mortgage life insurance?
It’s optional. I’ll explain the pros/cons and encourage you to compare bank mortgage insurance vs personal insurance so you get the best value.
Qualification & Income
31) How do lenders calculate income?
Salaried is straightforward. Bonus/commission is often averaged. Self-employed typically uses 2 years of tax docs—unless we use an alternative program. I guide you to the best route based on your profile.
32) How much debt is too much?
It comes down to your debt ratios. If your TDS/GDS are high, you qualify for less. I’ll show you what to pay down first to boost approval the fastest.
33) What are GDS and TDS?
They’re the ratios lenders use to measure affordability. I calculate them for you and show you how to improve them if needed.
34) How do lenders verify employment?
Job letter + pay stubs, and sometimes a phone verification. I make sure your documents are consistent so there are no underwriting red flags.
35) Can I qualify if I’m self-employed?
Yes. This is where a broker is extremely valuable. I know which lenders are self-employed-friendly and how to present your income properly.
36) Can I qualify with commission/bonus income?
Yes—if it’s consistent. Many lenders average 2 years. I’ll position it correctly so you get full credit for it.
37) Can I qualify if I’m new to my job?
Often yes, especially if you’re in the same industry and have stable income. I’ll pick the right lenders for this scenario.
38) Can I qualify on probation?
Sometimes. Some lenders want probation completed, but there are workarounds depending on your file strength.
39) Can I qualify on maternity/parental leave?
Often yes if we document your return-to-work and your standard income. I’ll structure it to meet lender requirements.
40) Can I qualify if I’m new to Canada?
Yes—there are newcomer programs. I’ll match you with lenders that accept limited Canadian credit history and guide you on the down payment rules.
Buying & Closing
41) When should I get pre-approved?
Before you shop. It makes your offer stronger and helps you move fast when the right home shows up.
42) What happens after my offer is accepted?
I submit the accepted offer and MLS listing, complete underwriting, handle lender conditions, and coordinate the financing timeline with your realtor and lawyer.
43) What does “firm” financing mean?
It means your financing condition is removed and the lender has approved the deal. My job is to get you to “firm” quickly and safely.
44) What is an appraisal?
It’s a valuation ordered by the lender to confirm the home is worth the price. If needed, I manage the process and keep it moving.
45) Can a lender refuse after pre-approval?
Yes—if your situation changes or the property/appraisal doesn’t fit guidelines. That’s why I focus on clean documentation and the right lender from the start.
46) What if the home appraises low?
Then we either increase down payment, renegotiate, or look at alternate lender options. I’ll guide you to the fastest solution.
47) Minimum down vs more down—what’s better?
More down payment can lower payments and may avoid default insurance at 20%+. But keeping cash reserves matters too. I’ll help you choose the smartest balance.
48) Weekly/bi-weekly vs monthly payments?
Accelerated payments can save a lot in interest. I’ll show you the savings difference clearly so you can choose what fits your budget.
49) Can I pay off my mortgage faster?
Yes—most mortgages allow prepayments and payment increases. I help you choose a mortgage with strong prepayment privileges so you can become mortgage-free sooner.
50) What happens on closing day?
Your lawyer completes the legal work, funds are transferred, the mortgage is registered, and you get the keys. I stay on top of lender timelines so closing is smooth.
Thank you for choosing us. We are dedicated to helping you achieve your homeownership goals with personalized service and expert guidance. For more information or assistance, feel free to reach out to us anytime!
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info@mortgage
171 Abbotside Way, Caledon, ON L7C 4C3
+1 437 475 3749
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