Mortgage questions, answered

A bank advisor sells mortgage products from their own institution. An independent mortgage agent works for you and compares products across 55+ bank, monoline and alternative lenders to find the rate and terms that best fit your goals.

For standard residential mortgages, the lending institution pays my fee as a finder’s fee. The commission is based on basis points (percentages of a percentage), so it varies with loan size, term, fixed or variable rate choices and bundled components such as a HELOC. For non-traditional files that need specialized work, or for private lending used as a temporary bridge, lender and broker fees typically fall in the 2% to 3% range. Because no two transactions are identical, I calculate every fee, commission and cost and disclose it in writing before you sign anything.

The stress test requires you to qualify for a mortgage at a benchmark rate, currently the higher of 5.25% or your contract rate plus 2%. It makes sure you could still manage your payments if rates rise.

The minimum is 5% on the first $500,000 of the price, 10% on the portion between $500,000 and $1.5 million, and 20% for homes priced at $1.5 million or more.

The FHSA is a registered savings account for first-time buyers in Canada. You can contribute up to $8,000 per year, to a $40,000 lifetime limit. Contributions are tax-deductible, and withdrawals used to buy a qualifying first home are tax-free.

The HBP lets eligible first-time buyers withdraw up to $60,000 tax-free from their RRSP to use toward a down payment.

First-time buyers in Ontario can receive a land transfer tax rebate of up to $4,000. If you buy inside the City of Toronto, you may also qualify for a Municipal Land Transfer Tax rebate of up to $4,475.

Yes. Canadian rules allow first-time buyers, and buyers of newly built homes, to choose a 30-year amortization on insured mortgages, which lowers the monthly payment.

No, not on a straight switch. Since November 21, 2024, switching between federally regulated lenders does not require re-qualifying under the stress test, provided the loan amount and remaining amortization stay the same.

Start reviewing your options 90 days before your term matures. On a renewal, that is how long a lender can hold a rate for you, so we can lock one in and keep watching the market up to your renewal date.

You can borrow up to 80% of your home's appraised market value, minus any outstanding mortgage balance.

Yes. Alternative stated income and bank statement programs look at your business deposits and cash flow instead of relying only on net taxable income.

Often yes. Specialized alternative and private lenders weigh your property equity and current income stability rather than past credit challenges alone.

A private mortgage is a short-term, interest-only equity loan used when traditional bank criteria cannot be met. It works as a bridge while we restore credit or income history so you can move back to a traditional lender.

Non-owner-occupied residential rental properties require a minimum 20% down payment under lender and insurer guidelines.

It depends on the property and the lender. Many year-round second homes for family use can start at 5% down, subject to price limits, and seasonal properties with limited access or seasonal water systems often need 10% or more. I confirm the rules before you make an offer.

It lets you roll estimated renovation costs into your purchase mortgage, based on contractor quotes submitted before closing. The lender releases the funds once the renovations are verified complete.