Mortgage Frequently Asked Questions

Mortgage rules and lender guidelines can vary, and the right answer depends on your income, credit, down payment or equity, property and goals. These answers are a starting point rather than a mortgage approval or commitment.

How early should I speak with a Mortgage Planner before buying a home?

It is useful to start before you begin seriously shopping. An early review can help you understand your budget, down payment, credit, income documentation and potential lender requirements so there are fewer surprises when you are ready to make an offer.

What is a mortgage pre-approval?

A pre-approval is an initial review that can help estimate a potential mortgage amount and identify issues to address before purchasing. It is not a final approval. The lender still needs to approve the borrower, the property and the final application details.

How much down payment do I need?

The amount depends on the purchase price, property, mortgage program and your circumstances. Some purchases may qualify with less than 20% down, while others require 20% or more. Mortgage default insurance may apply when the down payment is below certain thresholds.

What documents are commonly needed for a mortgage application?

Common documents include identification, income verification, employment information, down payment or equity confirmation, and details of debts and assets. Self-employed applicants and more complex files may require additional business or income documents.

Does my credit score affect my mortgage options?

Yes. Credit history can affect which lenders and mortgage products are available, but the score is only one part of the application. Income, debt, down payment or equity, property type and recent credit history can also matter.

Can I get a mortgage if I am self-employed?

Yes. Self-employed borrowers have mortgage options, but lenders may assess income differently than they do for salaried employees. Tax returns, Notices of Assessment, financial statements, bank statements or other business documentation may be requested depending on the lender and program.

What is the difference between an A lender and a B lender?

A lenders generally serve borrowers who fit traditional prime lending guidelines. B lenders can provide alternatives for situations such as non-traditional income, credit challenges or properties that do not fit standard guidelines. Rates, fees and qualification requirements can differ.

What is a private mortgage?

A private mortgage is financing provided by a private individual, mortgage investment corporation or other private source rather than a traditional bank or prime lender. Private lenders often focus heavily on the property and available equity. They can be useful in some short-term situations but typically involve higher borrowing costs.

Can I get a mortgage after a bankruptcy or consumer proposal?

Possibly. Available options depend on factors such as how long it has been since discharge or completion, how credit has been rebuilt, income, down payment or equity, and the property. Prime, alternative and private lenders can have very different guidelines.

What happens when my mortgage comes up for renewal?

Your existing lender will normally offer renewal terms, but you do not necessarily have to accept the first offer. Renewal is an opportunity to review your rate, term, payment, prepayment features and whether another lender or mortgage structure better fits your plans.

What is mortgage refinancing?

Refinancing replaces or restructures existing mortgage financing. Homeowners may refinance to consolidate debt, access equity, change mortgage features or improve cash flow. Penalties, legal or appraisal costs and the overall cost of borrowing should be considered before proceeding.

How can I access equity in my home?

Depending on your equity and qualification, options may include refinancing, a home equity line of credit, a home equity loan or a second mortgage. The right option depends on how much you need, how long you need it, your existing mortgage and the total cost.

What is a HELOC?

A home equity line of credit is revolving credit secured by your home. You can generally borrow, repay and re-borrow up to the approved limit. Rates are usually variable, and qualification and available limits depend on lender guidelines and your equity.

What is a second mortgage?

A second mortgage is an additional loan registered behind an existing first mortgage. It can allow a homeowner to access equity without necessarily breaking the first mortgage, but rates and fees are often higher than first-mortgage financing.

Can mortgage refinancing be used to consolidate debt?

Yes, in some situations. If sufficient home equity and qualification are available, higher-interest debts may be consolidated into mortgage financing. A lower payment does not automatically mean a lower total cost, so the interest rate, amortization, fees and repayment plan should all be reviewed.

What is bridge financing?

Bridge financing is short-term financing that may help when you purchase a new home before the sale proceeds from your existing home are available. Eligibility, timing and documentation requirements vary by lender.

Can I port my mortgage to a new property?

Some mortgages are portable, meaning the existing mortgage may be transferred to another qualifying property, subject to the lender’s rules and approval. Timing, property eligibility and whether you need to increase or decrease the mortgage can affect how the port works.

How do construction mortgages work?

Construction financing is usually advanced in stages as the project progresses rather than as one lump sum. Plans, budgets, permits, inspections, builder information, land equity and borrower qualification can all be part of the approval process.

What is a reverse mortgage?

A reverse mortgage is a home-equity option generally designed for older homeowners that can provide access to a portion of home equity without regular mortgage payments being required in the same way as a traditional mortgage. Interest accumulates, so costs, estate implications and alternatives should be carefully reviewed.

Do I pay a Mortgage Planner directly?

Compensation depends on the type of mortgage and lender. In many prime mortgage transactions the lender pays the brokerage, while some alternative or private mortgage situations can involve brokerage or lender fees. Any applicable fees should be explained before you proceed.

Why use a Mortgage Planner instead of going directly to one bank?

A Mortgage Planner can review your situation and explore options from multiple available lenders rather than only one institution’s products. The goal is to help you understand the trade-offs between rate, terms, features, qualification and overall cost.