FAQs

Frequently Asked Questions

You can expect between 1-1.5% higher cost including rates, lender fees and broker fees.
  • Closed term mortgage is when the contract is typically written for terms of 1 to 10 years. Penalties may be triggered when you sell the house, want to refinance or optimize your mortgage, or in the event you won the lottery (!) and wish to end the contract before the term expires, also known as early repayment.
  • Open term mortgage is when the mortgage contract is written for a short term, usually 6 months or 1 year. No penalties are charged if the borrower wishes to end the contract before the term expires, but open term mortgages are usually more expensive due to their flexibility.
You can get up to 80% of home value supported by your income. Every dollar you earn gives you access to roughly $5 in mortgage. This way a family that has a good credit score and makes 100K with no debts might be eligible for up to 500K in mortgage, as long as the house’s appraised value supports it. Having said that, we have great solutions for families and singles with lower income or no income at all who have a significant load of debt or compromised credit score.
Yes. The lender will usually allow to add the penalty, appraisal and legal costs. Just keep in mind that the point of breaking the mortgage and paying a penalty is a fantastic time to reassess your needs and see what else we should include into one very very cheap loan.
This is a good question for your residence purchase. When it comes to buying a rental property, the main concern is the financial part. Financial aspect has higher priority.
Although Canada has tightened the rules on mortgage lending, we work with 40+ lenders amongst whom we can find various flexibilities which will allow you to get a mortgage at the best price and terms. There are programs for almost every type of borrower, including:
  • Employees
  • Self-employed clients
  • Newly landed immigrants
  • Immigrants in process (those who have not yet landed in Canada)
  • Working visa
  • Clients with no credit history
  • Clients with a challenging credit history
  • Clients who wish to use their mortgage as a tax planning tool
The various lending programs and their terms are updated every day. An independent mortgage broker has the advantage of accessing multiple lenders to get them to compete for your mortgage.
Typically, a homeowner must be 55 years or older and have substantial equity in their home to be eligible for a reverse mortgage.
Managing a rental property has associated costs whether you manage it yourself or hire someone to manage it. The only difference is that when you manage it yourself, you avoid paying a property manager. When calculating the cash flow of the investment property, you must include property management as an expense.
Because when considering a Mix and Blend with current bank, you should compare two scenarios: The first is to take a new mortgage with a new lender, while paying the penalty. The second is to stay with the current lender and mix your old mortgage terms with new mortgage terms offered by them. In this case there is no penalty. We frequently see, after calculating both scenarios that the client is better off taking a whole brand new mortgage .
The good mortgages offered or the interest deals offered by each bank contain parameters that you have no control over and do not consider your effort to expand in the real estate market or make changes to your life during the mortgage period. We know that a large portion – 70% of mortgage takers today, will need over the course of 5 years to change it. Therefore, you must have your mortgage to be able to respond to your life events. Hence, when we build a mortgage, we look at interest rates and your flexibility to move from lender to lender. That is something you'll never get from your bank.