Frequently Asked Questions

As Mortgage Brokers and Mortgage Agents, it's our job to find out what you need in a mortgage and to find the right fit for you. We're mortgage specialists. Once we've determined the right fit for you from the many lenders we have access to, we'll navigate the approval process, collect and verify the necessary financial information, and guide you through the process to closing. We provide expert unbiased advise and financial solutions in a transparent environment.

In 99% of cases, there is no fee to use a Mortgage Broker because we get paid by the lender. A Broker might charge a fee if we are working with a private lender or a specific type of mortgage product that is not offered by most other lenders. A Broker must disclose to the client in writing if we are charging a fee in accordance with Provincial regulations, and the clients must acknowledge that by signing the form as well. 

If you go to a retailer that carries only one brand, you will be limited to only those products in that one store. The same applies when you go to your bank. They can only offer you their products, but nobody else’s.

Mortgage brokers offer financing solutions from banks as well as many other lenders, giving the consumer the option to compare their choices across multiple brands and therefore multiple solutions. Brokers work directly with Banks, Credit Unions, Monoline Lenders, Commercial lenders and Private lenders. Simply put, Brokers are your one-stop-shop for upwards of 50 different lenders, which means you have access to all of those products as well. Because of this, brokers often have solutions for clients that they might not get at a bank. 

A fixed rate mortgage is one where the interest rate does not change at all during the term of your mortgage and is determined almost exclusively by the bond market.

A variable rate mortgage has an interest rate that can go up or down during the term of your mortgage and is based almost exclusively on the Bank of Canada overnight lending rate (the rate at which the Bank of Canada lends money to other financial institutions).

This is the time period that your mortgage is set at a particular rate (fixed or variable). At the end of this time period the mortgage can either be renewed, paid off entirely, or switched/transferred to another lender. Terms typically range from one year to ten years, with the most popular term being 5 years.

A mortgage's amortization period is the period of time required to completely pay off a mortgage if all conditions are met and all payments are made on time.

Mortgage features are incredibly important, and should always be understood and reviewed with your broker to ensure you are getting the most out of them. Sometimes a specific feature can mean the difference between getting an approval or not, or paying down your mortgage faster than you otherwise might be able to, saving potentially thousands of dollars in interest over time.

The information required depends in the type of mortgage you need. Your Mortgage Broker will be able to determine and advise during the Mortgage discovery discussion.

Everyone will be required to provide two forms of identification, one of which must be photo ID. If you do not have photo ID, start the process of getting your Ontario Photo Card. Ontario Health Cards DO NOT count as ID.

What documentation is needed will vary depending on your type of income/employment. See below for examples:

Salaried or Hourly

• Two most recent T4s

• Two most recent paystubs

• Letter of Employment (we'll give you the details of what it needs to contain)

• Child Tax Benefit statement (if applicable)

• Birth certificates for kids (to prove ages for claiming Child Tax Benefit as income)

Self-Employed (Sole Proprietor)

• Two most recent T1 Generals (personal tax return)

• Two most recent Notices of Assessment (NOA)

• Child Tax Benefit statement (if applicable)

• Birth certificates for kids (to prove ages for claiming Child Tax Benefit as income)

Self-Employed (Incorporated)

• Two most recent T1 Generals (personal tax return)

• Two most recent Notices of Assessment (NOA)

• Two most recent Corporate Business Financial Statements

• Articles of Incorporation

For Purchases

• Down payment information (see next FAQ)

• VOID cheque (for the account you want your mortgage payment to come out of)

• Lawyer information

For Refinances

• Most recent property tax statement

• Most recent mortgage statement

For Switch/Transfer

• Most recent property tax statement

• Most recent mortgage statement

• Home insurance policy

Other documents that may be needed

• Separation Agreement

• Lease Agreement

The minimum down payment required in Canada can be found here. We are required to verify the source of your down payment funds for the purchase of a new home. To do this, we'll need a better understanding of where the funds are coming, so we'll ask questions such as:

• Is the down payment coming from your own funds?

• Are the funds coming from your RRSP under the Home Buyers' Plan for first-time home buyers?

• Are you being gifted part or all of your down payment from an immediate family member?

• Is the down payment coming from the sale of another property?

The documentation required to verify your down payment will depend on where it's coming from. Documentation can include:

• 90 days of banking statements for the account(s) the money is coming form - the statements need to show your full name and account number

• Gift Letter - each lender has their own specific letter to sign

• Sale agreement and mortgage statement if coming from a property that is being sold

Once you start the process of looking for a home, don't move your down payment around in your bank accounts. It can create more documentation to track where the money has been over the past 90 days. Talk to us first!

Get started by filling in our online application, or by calling us 519-507-4663, or send an email to cassandra@mortgagecentre.com.