Question 1

What does a mortgage agent do?

Accepted Answer

A mortgage agent acts as an intermediary between you and multiple lenders. Unlike going directly to a bank (where you only see their products), I shop your application to dozens of lenders—including major banks, credit unions, and alternative lenders—to find the best rate and terms for your situation. I guide you through the entire process, from pre-approval to closing, and my services are typically free to you because the lender pays my commission.

Question 2

Do you charge fees for your services?

Accepted Answer

For most clients, no. When I place your mortgage with an A lender (major bank or credit union) or B lender (alternative lender), the lender pays my commission and there's no cost to you. In certain situations—such as private mortgages or complex deals—there may be a broker fee, but I'll always disclose this upfront before we proceed.

Question 3

How are you compensated?

Accepted Answer

Lenders pay mortgage agents a commission when we bring them qualified borrowers. This doesn't affect your interest rate—lenders pay us from their own margins. It's a win-win: you get expert guidance and access to multiple lenders at no cost, and I get paid for matching you with the right mortgage.

Question 4

How long does the mortgage process take?

Accepted Answer

From application to closing, a typical mortgage takes 2-4 weeks. Pre-approval can happen within 24-48 hours. The actual approval process depends on how quickly you provide documents, the complexity of your application, and the lender's current volume. For purchases, we work backward from your closing date to ensure everything is ready on time.

Question 5

What's the difference between a mortgage agent and a mortgage broker?

Accepted Answer

Both work independently from banks to find you the best mortgage. The main difference is licensing level. A mortgage broker has additional licensing requirements and can supervise agents. A mortgage agent (like me) has the same access to lenders and products, just without the supervisory privileges. For clients, the service is essentially the same.

Question 6

What is a mortgage pre-approval?

Accepted Answer

A pre-approval is a preliminary assessment where a lender reviews your financial situation—income, credit, debts—and tells you how much you're qualified to borrow. It typically includes a rate hold, locking in your rate for 90-120 days while you shop for a home. Pre-approval strengthens your offer when you find a property because sellers know you're a serious, qualified buyer.

Question 7

How long is a pre-approval valid?

Accepted Answer

Most pre-approvals are valid for 90-120 days, depending on the lender. Your rate is held during this period, protecting you from rate increases. If your pre-approval expires before you find a home, we can usually renew it, though the rate may need to be updated to current market rates.

Question 8

Does pre-approval guarantee I'll get the mortgage?

Accepted Answer

No, pre-approval is not a guarantee. It's based on the information provided at the time. Final approval depends on the specific property (lenders appraise it to ensure it's adequate security), verification of your documents, and confirmation that your financial situation hasn't changed. Think of pre-approval as a strong indication, not a binding commitment.

Question 9

What documents do I need for pre-approval?

Accepted Answer

For pre-approval, you'll typically need: government ID, proof of income (pay stubs, letter of employment, or tax returns if self-employed), and proof of down payment (bank statements). The more complete your documentation, the stronger your pre-approval. See my full document checklist for details.

Question 10

What's the minimum down payment in Canada?

Accepted Answer

For homes under $500,000, the minimum is 5%. For homes between $500,000 and $999,999, you need 5% on the first $500,000 plus 10% on the portion above. For homes $1 million and above, the minimum is 20%. With less than 20% down, you'll need mortgage default insurance (CMHC or equivalent).

Question 11

Can I use my RRSP or FHSA for a down payment?

Accepted Answer

Yes! The RRSP Home Buyers' Plan (HBP) lets first-time buyers withdraw up to $35,000 tax-free from their RRSP for a down payment. The First Home Savings Account (FHSA) is even better—contributions are tax-deductible, growth is tax-free, and withdrawals for a first home are tax-free. You can use both programs together for up to $75,000 combined.

Question 12

Can my down payment be gifted?

Accepted Answer

Yes, most lenders accept gifted down payments from immediate family (parents, grandparents, siblings). You'll need a gift letter stating the money is a true gift and doesn't need to be repaid, along with proof of the donor's ability to give the gift (usually a bank statement showing the funds).

Question 13

Do I need 20% to avoid CMHC insurance?

Accepted Answer

Yes. If you put down less than 20%, you're required to have mortgage default insurance (CMHC, Sagen, or Canada Guaranty). This protects the lender if you default. The insurance premium is added to your mortgage and ranges from 0.6% to 4% of the mortgage amount, depending on your down payment percentage.

Question 14

What credit score do I need for a mortgage?

Accepted Answer

For A lenders (major banks), you generally need a score of 680 or higher for the best rates. Many A lenders will work with scores down to 620-650 with other compensating factors. Alternative lenders work with scores as low as 500-550, though rates will be higher. Private lenders focus more on equity than credit scores.

Question 15

Can I get a mortgage with bad credit?

Accepted Answer

Yes, though your options depend on how challenged your credit is. Alternative (B) lenders specialize in borrowers with credit issues and offer competitive rates. For more serious credit problems, private mortgages can bridge the gap while you rebuild. The key is having a plan to improve your credit over time. See my bad credit mortgage services for more details.

Question 16

Will applying for a mortgage hurt my credit score?

Accepted Answer

A mortgage application results in a 'hard inquiry' on your credit report, which can temporarily lower your score by a few points. However, credit bureaus understand that rate shopping is normal—multiple mortgage inquiries within 14-45 days (depending on the scoring model) count as just one inquiry.

Question 17

How can I improve my credit score before applying?

Accepted Answer

Pay all bills on time (payment history is 35% of your score). Keep credit utilization below 30%—ideally under 10%. Don't close old accounts (length of credit history matters). Avoid opening new credit. Check your credit reports for errors and dispute any inaccuracies. Give yourself 3-6 months for improvements to reflect.

Question 18

How do self-employed mortgages work?

Accepted Answer

Self-employed mortgages typically require 2 years of income tax returns and Notices of Assessment. Lenders average your net income over 2 years. If your reported income is low due to business deductions, Business-for-Self (BFS) programs let you state a reasonable income. Alternative lenders offer bank statement programs that estimate income from deposits. I work with many self-employed clients and can help identify the best approach.

Question 19

What documents do I need as a self-employed borrower?

Accepted Answer

Typically: 2 years of T1 General tax returns (complete), 2 years of Notices of Assessment, business registration or articles of incorporation, business financial statements, and 12 months of business bank statements (for some programs). The more organized your documentation, the smoother the process.

Question 20

Can I qualify with stated income?

Accepted Answer

Yes, through Business-for-Self (BFS) or stated income programs offered by many lenders. You'll need to show 2 years of self-employment, and your stated income must be reasonable for your industry. You'll typically need at least 10% down and good credit. These programs are designed for self-employed borrowers whose tax returns don't reflect their true earning capacity.

Question 21

What programs are available for first-time buyers in Ontario?

Accepted Answer

Several! The First Home Savings Account (FHSA) offers tax-free saving and withdrawal. The RRSP Home Buyers' Plan lets you withdraw up to $35,000 tax-free. Ontario offers a Land Transfer Tax rebate of up to $4,000. Toronto adds a Municipal Land Transfer Tax rebate of up to $4,475. Check my First-Time Buyer Guide for full details.

Question 22

What is the FHSA (First Home Savings Account)?

Accepted Answer

The FHSA is a registered account specifically for first-time home buyers. Contributions are tax-deductible (like an RRSP), investment growth is tax-free, and withdrawals for a qualifying first home are tax-free. You can contribute up to $8,000 per year and $40,000 lifetime. It's one of the best tools for first-time buyers.

Question 23

What is the Ontario Land Transfer Tax rebate?

Accepted Answer

First-time home buyers in Ontario can claim a rebate of up to $4,000 on provincial Land Transfer Tax. This effectively makes the first $368,000 of a home's value tax-free (for provincial LTT). In Toronto, there's an additional Municipal rebate of up to $4,475. Combined, first-time buyers can save up to $8,475 in Toronto.

Question 24

How does the RRSP Home Buyers' Plan work?

Accepted Answer

The Home Buyers' Plan (HBP) lets you withdraw up to $35,000 from your RRSP tax-free to buy your first home. If you're buying with a partner who's also a first-time buyer, you can each withdraw $35,000 for a total of $70,000. You must repay the amount to your RRSP over 15 years (starting the second year after withdrawal), or the unpaid portion becomes taxable income.

Question 25

When does it make sense to refinance?

Accepted Answer

Refinancing makes sense when: you can get a significantly lower rate (typically 0.5%+ improvement); you want to consolidate high-interest debt; you need to access home equity for renovations, investments, or other purposes; or your mortgage is coming up for renewal anyway. I can run the numbers to see if refinancing saves you money after accounting for any penalties.

Question 26

What are the costs of refinancing?

Accepted Answer

Costs typically include: prepayment penalty (three months' interest or an Interest Rate Differential—IRD), legal fees ($800-1,500), appraisal fee ($300-500), and discharge fee from your current lender ($200-350). For many clients, the long-term savings outweigh these upfront costs, especially if you're consolidating high-interest debt.

Question 27

How much equity can I access through refinancing?

Accepted Answer

You can typically access up to 80% of your home's current appraised value, minus your existing mortgage balance. For example, if your home is worth $800,000 and you owe $400,000, you could potentially access up to $240,000 ($800,000 × 80% - $400,000). HELOC products may allow access up to 65% LTV with more flexibility.

Question 28

Can I get a mortgage as a new immigrant to Canada?

Accepted Answer

Yes! Canadian lenders have newcomer programs specifically for immigrants. Most major banks offer programs for permanent residents who have been in Canada less than 5 years. You can often qualify with no Canadian credit history, a 5-10% down payment, and proof of employment. Work permit holders also have options, though requirements vary. See my newcomer mortgage services for details.

Question 29

Do I need Canadian credit history for a mortgage?

Accepted Answer

Not necessarily. Many lenders have newcomer programs that don't require Canadian credit history. Some will accept international credit reports from your home country. Others will use alternative credit assessments (rent payment history, utility bills, etc.). As you build credit here, your options expand, but you can buy a home within your first year in Canada.

Question 30

What ID is accepted for newcomers applying for a mortgage?

Accepted Answer

Permanent residents need their PR card (front and back) and passport. Work permit holders need their valid work permit and passport. You'll also need proof of your legal status (landing papers or immigration documents). Some lenders accept Confirmation of Permanent Residence (COPR) while your PR card is being processed.

Question 31

What documents will I need for a mortgage application?

Accepted Answer

The core documents include: government ID, proof of income (pay stubs, T4s, letter of employment, or tax returns if self-employed), proof of down payment (90 days of bank statements), and property documents (once you have an accepted offer). Self-employed applicants and newcomers may need additional documents. Check my complete document checklist.

Question 32

How recent should my documents be?

Accepted Answer

Most documents should be current: pay stubs within the last 30 days, letter of employment dated within 30 days, bank statements covering the most recent 90 days. Tax documents (T4s, NOAs) should be for the most recent tax year(s) filed. If documents are too old, lenders may ask for updated versions.

Question 33

Can I submit documents digitally?

Accepted Answer

Absolutely. Most of my clients submit everything digitally—either by secure email, upload portal, or even clear photos from your phone. I use secure systems to protect your information. Digital submission is faster and more convenient than physical documents.

Question 34

Why do lenders need so much paperwork?

Accepted Answer

Lenders are required by regulations to verify income, assets, and identity. This protects both you and the lender by ensuring you can afford the mortgage. The more documentation you provide upfront, the faster and smoother the approval process. I help streamline this by telling you exactly what's needed and reviewing documents before submission.

Question 35

What's the typical mortgage timeline?

Accepted Answer

Pre-approval: 24-48 hours. House hunting: varies. Accepted offer to conditional approval: 3-7 days. Condition removal to firm deal: depends on your agreement. Firm deal to closing: typically 2-4 weeks. From application to closing, budget 3-5 weeks minimum. I'll keep you informed at every step.

Question 36

What happens after I submit my application?

Accepted Answer

First, I review everything to ensure your application is complete. Then I submit to the lender(s) best suited to your situation. An underwriter reviews your file and may request additional documents. Once everything is verified, you receive conditional approval (subject to property appraisal and any remaining conditions). After conditions are met, you get final approval.

Question 37

Who orders the appraisal?

Accepted Answer

The lender orders and coordinates the appraisal through an approved appraisal company. The cost ($300-500) is typically paid by you, either upfront or at closing. Some lenders waive the appraisal for properties with recent comparable sales data or lower loan-to-value ratios. I'll let you know if an appraisal is required for your file.

Question 38

What is conditional approval?

Accepted Answer

Conditional approval means the lender has approved your mortgage subject to certain conditions being met. Common conditions include: satisfactory property appraisal, confirmation of fire insurance, final verification of employment, and lawyer's report on title. Once all conditions are met and confirmed, you receive final (unconditional) approval.

Question 39

What happens at closing?

Accepted Answer

On closing day, your lawyer handles the legal transfer. The lender sends mortgage funds to your lawyer, who pays the seller, registers the mortgage on title, and pays any closing costs (land transfer tax, legal fees, etc.). You'll meet with your lawyer shortly before closing to sign documents and provide your down payment and closing costs. Then you get the keys!

Question 40

What if my mortgage application is declined?

Accepted Answer

A decline isn't the end. First, I'll find out exactly why—it might be fixable. If it's a credit issue, we can work on improving your score. If it's income documentation, we might explore alternative lenders or BFS programs. If it's the property, you can continue searching. I'll give you an honest assessment and a plan to move forward.

Frequently Asked Questions

General

Pre-Approval

Down Payment

Credit

Self-Employed

First-Time Buyers

Refinance

Newcomers

Documents

The Process

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