Question 1

How much mortgage can I qualify for?

Accepted Answer

It depends on your income, debts, down payment, credit and the type of property you're buying. But the maximum you can qualify for isn't always the amount you should borrow. I like to look at both qualification and what feels comfortable for your monthly cash flow.

Question 2

When should I talk to a mortgage broker if I'm planning to buy?

Accepted Answer

Ideally, before you start seriously looking at homes. An early conversation can help you understand your budget, prepare the right documents and identify anything that may need attention before you make an offer. You don't need to have everything figured out before reaching out.

Question 3

Is a pre-approval the same as a mortgage approval?

Accepted Answer

No. A pre-approval gives you an idea of how much you may be able to borrow based on the information available at the time. Once you have an accepted offer, the lender still needs to review the property, your updated financial information and any required documents before giving final approval.

Question 4

What documents will I need?

Accepted Answer

It depends on your situation, but lenders commonly ask for proof of income, down payment, identification and details of your existing debts or properties. If your income or situation is more complex, additional documents may be required. I'll let you know what is needed based on your specific situation rather than giving you a long generic checklist.

Question 5

Why does the lender need to see 90 days of my down-payment history?

Accepted Answer

Lenders need to confirm where your down payment came from and that the funds are available to you. If money has recently been transferred between accounts, received as a gift or brought into Canada from overseas, additional documentation may be needed. Keeping a clear paper trail can make the process much smoother.

Question 6

I'm new to Canada. Can I still qualify for a mortgage?

Accepted Answer

Possibly. Being new to Canada does not automatically prevent you from qualifying. The lender will look at factors such as your residency status, employment, income, credit history, down payment and overall financial picture. Different lenders may approach these situations differently, so it is important to look beyond just one bank.

Question 7

I'm self-employed or my income isn't straightforward. Can I still get a mortgage?

Accepted Answer

Yes, but the way your income is assessed may be different. This can apply if you're self-employed, earn commission or bonuses, receive dividends, have contract income, rental income or income from multiple sources. I'll review how your income is structured and determine which lenders are most likely to understand your situation.

Question 8

My bank said no. Does that mean I can't get a mortgage?

Accepted Answer

Not necessarily. Different lenders have different guidelines and ways of looking at income, credit, property type and overall risk. Sometimes another lender may have a solution; other times, the best strategy may be to make a few changes and prepare for a future application. The first step is understanding why the application did not work.

Question 9

My mortgage is coming up for renewal. Should I just sign my lender's offer?

Accepted Answer

Not before reviewing it. Your renewal is a good time to look at your rate, mortgage terms, payment, remaining amortization, future plans and whether your current lender still fits your needs. Sometimes renewing with your existing lender is the right choice. Sometimes switching or restructuring makes more sense.

Question 10

What's the difference between renewing and refinancing?

Accepted Answer

A renewal happens when your current mortgage term ends and you arrange the next term. A refinance means changing the mortgage more significantly - for example, increasing the mortgage amount, accessing equity, consolidating debt or restructuring the financing. Refinancing can happen at renewal or during your existing term.

Question 11

Can I use the equity in my home?

Accepted Answer

Often, yes. Homeowners may access equity for renovations, debt consolidation, investments, helping family or other financial goals. Options may include refinancing, a home equity line of credit or a combination of the two. The right choice depends on what the money is for, how much flexibility you need and the cost of accessing it.

Question 12

Is a HELOC the same as refinancing?

Accepted Answer

Not exactly. A HELOC is a revolving line of credit secured against your home. You can borrow, repay and reuse the available credit. A refinance usually involves changing or increasing the mortgage itself. In some situations, a mortgage and HELOC can also be structured together.

Question 13

Should I choose a fixed or variable mortgage?

Accepted Answer

There isn't one answer that works for everyone. A fixed rate offers more payment certainty, while a variable rate may offer different flexibility and pricing. I look at your plans, comfort with changing payments or rates, possible future moves and how long you expect to keep the mortgage - not just which rate is lower today.

Question 14

Will I need an appraisal?

Accepted Answer

Sometimes. The lender may require an appraisal to confirm the property's market value. This is especially common with refinances, equity take-outs, some purchases or situations where the lender needs additional confirmation of value. A property assessment and a lender appraisal are not necessarily the same thing.

Question 15

What happens after my mortgage is approved?

Accepted Answer

Once the lender's conditions are satisfied, you'll review and sign the mortgage documents. For a purchase, the lender then sends instructions to your lawyer or notary. Before completion, your lawyer or notary will confirm the final amount of money you need to bring in and complete the legal transfer of the property and mortgage. I'll continue to follow the file through this stage rather than disappearing once the approval is issued.

Question 16

Do mortgage brokers charge a fee?

Accepted Answer

For many standard residential mortgages, the lender pays the mortgage broker and there is no broker fee charged to the client. In some alternative, private or more complex financing situations, a broker fee may apply. If there is a fee, it will be clearly explained and disclosed before you proceed.

Question 17

Do you only help me get the lowest mortgage rate?

Accepted Answer

No. Rate matters, but it is only one part of the mortgage. I also look at things like prepayment options, penalties, flexibility, amortization, cash flow, future plans and how the mortgage fits into your bigger financial picture. A slightly lower rate is not always the better mortgage.

Question 18

What's the difference between working with you and going directly to my bank?

Accepted Answer

A bank representative can generally offer products from that bank. As a mortgage broker, I can look at options from multiple lenders and help you compare more than just the interest rate. I work for you, not for one particular lender. My role is to understand your goals, financial situation and future plans, then help you find a mortgage that fits.

Question 19

Is it more expensive to use a mortgage broker?

Accepted Answer

For most standard residential mortgages, no. In many cases, the lender pays the broker, so there is no broker fee charged to you. Some alternative or private financing situations may involve a fee. If that applies, I'll explain the cost clearly before you decide whether to proceed.

Question 20

I've been with my bank for years. Won't they give me their best deal?

Accepted Answer

They may offer you a very competitive mortgage - and if their offer is the best fit for you, there may be a good reason to stay. But being a long-time customer does not automatically mean you are receiving the best rate, terms or mortgage structure available. I can help you compare the bank's offer with other options and look at the whole mortgage.

Question 21

If my bank has already offered me a mortgage, why would I still talk to a broker?

Accepted Answer

Because an offer is only useful if you know how it compares. I can help you understand what your bank is offering, identify important terms that may not be obvious and compare it with other available options. My job is not to convince you to leave your bank. It is to make sure you understand your choices so you can make an informed decision with confidence.

FAQ

Frequently asked questions