Mortgage Products & Programs
Learn more below about common mortgage products and popular Canadian mortgage programs. We’re happy to answer any additional questions you may have.
Types of Mortgages We Offer
Fixed Rate Mortgage
A fixed mortgage rate is like it says in the name, fixed for the term of your mortgage. So whether you are in a two-year or a five-year term, your mortgage payments will always be the same.
Variable Rate Mortgages (VRM)
A variable mortgage can vary throughout the term. This rate is based on a prime rate with a discount (ie. Prime – 1%). Typically, prime follows suit with the Bank of Canada rate, but lenders can set their own prime rate.
The only way your mortgage payment will change is if the prime rate goes up or down. When this happens, your payments will increase or decrease. Some lenders offer a variable rate mortgage (VRM).
Under a VRM, your mortgage payments will stay the same, but if the prime rate goes up, a larger portion of your mortgage payment will go towards servicing the interest and less toward the principle. Ultimately, this will extend the amortization schedule on your property, resulting in the principle on your mortgage being paid off at a slower pace.
Adjustable Rate Mortgage (ARM)
An adjustable rate mortgage is similar to the VRM however, your payments change when the prime rates changes. When that prime rate changes you will receive no\fica\on from your lender that your mortgage payment amount will change. If the rate goes down that’s great and your mortgage payment will go down, however, if it goes up than your payments may increase. Finally, your amortization will stay the same over the years.
Open Rate Mortgages
An open mortgage means there are no restrictions on your mortgage payments. You can pay down your mortgage as much as you want and switch to any other lender or rate/term without paying a penalty. However, the rates on open mortgages are usually very high, which is why most people prefer a closed mortgage.
Home Equity Line of Credit (HELOC)
Home Equity Line of credit is a line of credit secured by your property. Typically, you only have to make interest-only payments and there are no restrictions or penalties on paying down the principle.
Mortgage + LOC (Line of Credit)
This product gives you a mortgage plus a line of credit portion. This is great for people that want to enjoy the benefits of a low rate on a closed mortgage but also have access to equity in their property without having to apply for a bank loan. The more you pay down your mortgage, the more money you’ll have access to in the line of credit.
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First Time Home Buyer
First time home buyers can use funds in their RRSPs for a down payment of up to $35,000 per applicant. This can be done without having to pay tax on the withdrawn funds, as long as it’s paid back within 15 years. Read More
New To Canada
Homebuyers can purchase a home with as little as 5% down payment from own savings. They must qualify under standard income and employment verification and have immigrated or relocated to Canada within the last 60 months. A valid work permit or obtained landed immigrant status is required and additional requirements may apply. Additional documents for credit sources may be required such as a letter from landlord showing 12 months of rent payments or 12 months of alternative sources of credit (ie. utility bill, cable, auto insurance etc. )
Cash Back Mortgages
Cash back mortgages are a mortgage where you receive cash from your lender. This is ideal for first-time homebuyers who would like to buy furniture, pay for landscaping, fencing, etc. Anywhere from one to five percent of the principle can be obtained, depending on the lender. A premium is added on top of the interest rate on a mortgage with this feature, so please reach out to one of our team members for more details.
If you are looking to purchase a new construction home with a home builder, we can help! Some home builders require a progress draw mortgage, which is where money gets released to the builder in stages throughout construction. The other type of builder’s mortgage is called a completion mortgage. This is where your builder rate would be held until the house is fully complete. The builder would receive the funds from the lender once all documents are signed and client has possession of the property. A builder’s mortgage can go through the insurers (CMHC, Genworth or Canada Guaranty) meaning, you can put as little as 5% down.
To be eligible for a reverse mortgage, applicants must be 55 years or older and must own their home as their primary residence. A reverse mortgage gives you access to the equity in your home in an upfront one-time advance. You can also arrange for single advances or recurring advances over several years. This money could be used for things like home renovations, medical bills, everyday expenses, in-home care, trips, it’s really up to you!
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Business Owner/Self Employed
Business for Self Program (Stated Income)
This program is for self-employed borrowers who have a two year history of self-employment but are unable to provide traditional income verification. The client can put a minimum of 10% down with at least 5% coming from personal savings. Credit score has to be a minimum of 650 and line 150 of Notice of Assessment (NOA) needs to be provided.
The credit bureau report must contain no mortgage, installment or revolving credit delinquencies, as well as no defaults on residential mortgage for the past 7 years or personal bankruptcies.
Personal tax filings must be up to date with the Canada Revenue Agency (CRA). All applicants on the mortgage must be living in the property. Documents provided may vary depending on the business.
Self Employed - Standard Qualification
- Sole Proprietor & Partnerships: Documents required are your most recent two years of T1 generals and related NOAs and matching business activities
- Incorporated Companies: Documents required are the most recent two years of T1 generals and related NOAs and most recent two years of company financials. Company financials must be independently prepared by a professional accounting firm.
Self Employed - Stated Income - Conventional
If you have at least 35% down payment, there may be more options with different lenders depending on credit score, down payment, length of time you have been self-employed and overall strength of your application. This is typically reviewed on a case-by-case basis.