FAQ

Frequently Asked Questions (FAQ)

What does a mortgage agent do?

A mortgage agent works on your behalf to help you find a mortgage that fits your financial situation and goals. Instead of going to just one bank, we work with multiple lenders — including banks, credit unions, and alternative lenders — to find the most suitable option for you.

Does it cost me anything to use a mortgage agent?

In most cases, no. For standard residential mortgages, the lender pays the mortgage agent a fee once your mortgage funds. There is typically no direct cost to you. In some alternative or private lending situations, fees may apply, and these are always discussed upfront.

Is it better to go to a bank or a mortgage agent?

A bank can only offer its own products, while a mortgage agent can compare options from many lenders. This often results in more flexibility, competitive rates, and solutions tailored to your needs — especially if your situation isn’t perfectly straightforward.

How much can I afford to buy?

How much you qualify for depends on several factors, including your income, debts, credit history, down payment, and current interest rates. A pre-approval or pre-qualification helps determine a comfortable and realistic price range before you start shopping.

What is a mortgage pre-approval?

A pre-approval is an initial assessment of how much you may be able to borrow and at what rate. It helps you understand your budget and shows sellers you are a serious buyer. A full approval happens once a property is chosen and all documents are reviewed.

How much down payment do I need in Canada?

The minimum down payment depends on the purchase price:

• 5% on the first $500,000
• 10% on the portion between $500,000 and $999,999
• 20% for homes $1,000,000 or more

Using less than 20% requires mortgage default insurance.

What is mortgage default insurance?

Mortgage default insurance (often called CMHC insurance) is required when the down payment is less than 20%. It protects the lender, not the borrower, and allows buyers to purchase with a smaller down payment.

What credit score do I need to get a mortgage?

Many lenders prefer credit scores of 680 or higher, but options may still be available with lower scores depending on the full financial picture. Income stability, down payment, and overall debt levels also play an important role.

Fixed or variable rate — which is better?

A fixed-rate mortgage offers stable payments for the term, while a variable rate can fluctuate with the market. The best choice depends on your risk tolerance, budget, and long-term plans. We review the pros and cons of each before deciding.

How long is a mortgage term?

In Canada, mortgage terms typically range from 1 to 5 years, with 5-year terms being the most common. The term is different from the amortization, which is usually up to 25 or 30 years.

Can I break my mortgage early?

Yes, but there may be penalties depending on the lender and mortgage type. Understanding prepayment options and potential penalties is an important part of choosing the right mortgage from the start.

What documents will I need?

Common documents include:

• Proof of income (pay stubs, T4s, or tax documents)
• Recent bank statements
• Photo ID
• Details of your down payment

Additional documents may be required depending on your situation.

Can you help if I’m self-employed?

Yes. Self-employed borrowers have several options, including stated-income programs. The right solution depends on how your income is structured and documented.

When should I contact a mortgage agent?

Ideally, before you start house hunting. Speaking with a mortgage agent early helps you understand your budget, avoid surprises, and move quickly when the right property comes along.

How do I get started?

The first step is a conversation. We’ll review your goals, financial picture, and timeline, and then outline your best options so you can move forward with confidence

Renewals & Refinancing

What is a mortgage renewal?

A mortgage renewal happens when your current mortgage term ends and you choose a new term with your existing lender or move your mortgage to a new lender. This is an opportunity to review your rate, terms, and features — not just accept the renewal offer sent by your bank.

Should I just sign my bank’s renewal offer?

Not always. Renewal offers are often sent early and may not be the most competitive or flexible option. Reviewing your renewal with a mortgage agent allows you to compare rates, negotiate terms, and ensure your mortgage still fits your goals.

Can I switch lenders at renewal?

Yes. Many borrowers switch lenders at renewal to secure a better rate or improved features. In most cases, lenders will cover standard switching costs such as legal and appraisal fees.

What is refinancing?

Refinancing means replacing your existing mortgage with a new one before or at the end of your term. This can allow you to access equity, change your mortgage structure, or consolidate debt.

Why would someone refinance their mortgage?

Common reasons include:

• Accessing equity for renovations, investments, or major expenses
• Consolidating higher-interest debts
• Lowering monthly payments
• Changing from a variable to fixed rate (or vice versa)
• Removing or adding someone to the mortgage (subject to qualification)

How much equity can I access when refinancing?

In Canada, you can typically borrow up to 80% of your home’s appraised value, including your existing mortgage balance. The exact amount depends on income, credit, and lender guidelines.

Are there costs to refinance?

Yes. Refinancing may involve penalties for breaking your existing mortgage, as well as legal and appraisal fees. Part of my role is to review these costs and determine whether refinancing makes financial sense for you.

Can I refinance if my credit or income has changed?

Possibly. Even if your situation has changed, there may still be options available. Each lender assesses applications differently, and alternative solutions may be considered if needed.

When is the best time to review my mortgage?

It’s a good idea to review your mortgage:

• 4–6 months before renewal
• When interest rates change significantly
• If your financial goals or circumstances change

Can a mortgage agent help after my mortgage is already in place?

Absolutely. Ongoing advice is one of the biggest benefits of working with a mortgage agent. Whether it’s a renewal, refinance, or future planning, we can review your options and help you make informed decisions.