Mortgage Basics

• Personal information: government I.D., background information such as age and marital status, etc.
• Financial information: savings you have annual income, 90-day transaction record for payroll deposits or proof of payment, etc.
• Asset information: other properties owned, RRSP/TFSA, investment balances, vehicles (make, model, year), etc.
• Debt information:
• Credit card and lines of credit
• Child or spousal support payments
• Car lease or payment information
• Student loan amounts and payment schedule
• Personal loan information
• Down payment information: We will need a confirmation that you have a down payment and how the money was saved (you may need to confirm some of the money as a gift from family or friends and show proof that re-payment is not required).
• Proof of employment: 90 days of payroll deposit into an account with us, letter of employment, paystub and last year’s T4s, two most recent Notice of Assessments (NOA) from the Canada Revenue Agency, or a combination.
• Income source information: If you have other sources of income such as a rental suite, part-time work or a pension, we may ask for your T1 Generals as well.

• If you’re looking to buy a home for $500,000 or less, the minimum down payment is 5%.
• If your home costs between $500,000 and $1,499,999, the down payment is 5% for the first $500,000 and then 10% for the remainder.
• If your home is $1,500,000 or more, you’ll need a minimum 20% down payment.

• Fixed interest rates: This means your interest rate will not change over the term of your mortgage and neither will the principal you pay.
• Variable interest rates: These move with economic changes and changes to our Prime Rate. Your payments stay the same for the term of your mortgage, but if rates go down, more money will go towards your principal.

• Insured mortgage: Protects the lender against non-payment and approvals are normally easier to obtain. This may also be available for a rental property. Insured mortgages generally have lower interest rates.
• Uninsured mortgage: Mortgages won’t be insured if the property is valued at over $1,500,000, it’s a refinanced mortgage or if the amortization period is more than 25 years.

An amortization period is the total length of time it will take to pay off your mortgage. This could be anywhere from 15, 20 or 25 years. You choose. The most common amortization period is 25 years. Depending on the size of the down payment, the amortization period can be longer or shorter. The amount of time that it takes you to pay off your mortgage will affect the amount of interest that you pay.

• Open Mortgages: Offers flexibility to make large payments and potentially pay off the mortgage before the term is complete but may have larger interest rates attached.
• Closed Mortgages: Has a pre-determined interest rate and pre-determined pay-back period. To pay off the mortgage sooner, could mean a financial penalty depending on the terms of your loan.
• Convertible Mortgages: Allows the homeowner to change the type of mortgage during the term. You could start with an open mortgage and then lock into a closed mortgage.
• Hybrid Mortgages: These mortgages could include a fixed rate portion, a variable portion, a line of credit or a combination.
• Reverse mortgages: Homeowners that are 55 years or older can convert the equity they have built in their home into a lump sum payment or monthly payments from the lender. This can be done using a percentage of home equity to fund retirement if needed.

We offer open and closed mortgage types; along with the option to convert between a variable closed mortgage term to a fixed-rate closed mortgage term without any penalties.  This offers the flexibility to change before the end of your term and provides piece of mind knowing you’re not locked into one type for the entire duration.