Frequently Asked Questions

A. While I have access to the lowest rates, I can't guarantee that you do. What you probably really want to know is, what is the lowest rate that you can qualify for, or, what mortgage product will lead to the lowest costs for me?

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The rate you will qualify for will depend on several things; how much you're wanting to borrow, your income to debt ratio, whether your mortgage will be insured or conventional, your credit score, etc.

Once we put together a full application, pull a credit report, and you've submitted all necessary documents, I'll be able to have a complete overview of your financial situation, and then, I'll be able to shop for the best rates and mortgage product for your goals.

A. In Canada, down payments for a primary residence are calculated as follows:

• For a purchase price of $500,000 or less, the minimum down payment is 5%.

• For a purchase price of over $500,000 but less than $1,000,000, the minimum down payment is 5% on the first $500,000 and 10% on the remaining amount.

• For a purchase price of $1,000,000 or more, the minimum down payment is 20%.

A. There are pros and cons to both.

Fixed rates are tied to Canada's bond market. With a fixed rate, you know exactly what your payments will be for the entirety of your term, however, if rates trend down, and you're locked in at a higher rate, it could be costly to break your mortgage and secure a lower rate mid-term. You can however choose a fixed-rate mortgage product that's open. Although these rates come with a premium, with an open mortgage, you may have the option of paying off these mortgages at anytime without a penalty.

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With a variable rate, these rates are set for the term, however the amount of your payment that goes towards principal and interest may fluctuate during that time. These rates are based on the Bank of Canada's prime rate. If interest rates decrease, more of your payment will go towards principal, and less to interest. However, if rates increase, more of your payment will go towards interest and less to principal. Like the fixed-rate mortgage, you may be able to choose a closed or open product. With a variable-rate mortgage, you have the flexibility to lock into a fixed-rate mortgage at any time.

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There are also adjustable rates which are similar to variable rates in which they are based on the Bank of Canada's prime rate. The difference is these payments will "float" up and down depending on the prime rate. If interest rates go up, your payment goes up with it to cover the extra interest. The amount that goes to your principal and your amortization remain unaffected.

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Ultimately, the answer here comes down to your current financial situation, your future plans, and what type of risk you're comfortable with.

A. A pre-qualification is an informal/rough estimate of what you can afford, based on an assessment of your current financial situation determined by the information you provide to me about your income, debts, and assets.

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A pre-approval is a more formal assessment of your current financial situation, based on documents detailing proof of income, employment, assets, and credit history, etc. to find out the maximum loan a lender will offer you.

A. When purchasing a home, lenders like to see that you have 1.5%-4% of the purchase price of the home set aside to cover closing costs such as property transfer taxes, legal fees and disbursments, property tax and interest adjustments, insurance, and appraisals and/or inspection fees, etc.

A. The mortgage stress test was implemented to ensure that borrowers will still be able to afford their mortgage payments should interest rates increase. The stress test is calculated at the higher of the minimum qualifying rate of 5.25%, or your mortgage interest rate plus 2%.

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For example, if your mortgage contract rate is 5%, your qualifying rate would be 7%.