New Purchase Mortgage

What Credit Score Do You Need For A Mortgage In Canada?

Before applying for a mortgage in Canada, there are several requirements that you must meet. A solid credit score is one of the most important considerations. But what are the specific qualities of a good credit score?

In any case, numerous mortgage lenders are available today, and each of these lenders adheres to its own set of lending requirements.

When you apply for a mortgage and hope to obtain the best possible interest rates, your credit score might make a substantial difference in your ability to do so. When it comes to mortgages, your chances are better the higher your credit score.

Read this article to get an idea of the minimum credit score needed to apply for a mortgage and some other considerations you will need to make before applying. But before I proceed, allow me to review what an insured mortgage is.

What Exactly Is Insured Mortgage?

An insured mortgage is a mortgage that is backed by financial protection in the form of mortgage default insurance. If you fail to keep up with your mortgage payments and default on your loan, the insurance protects the lender against losses. It does not protect you, the consumer.

A mortgage guaranteed by the Canada Mortgage and Housing Corporation (CMHC) is one in which the borrower makes a down payment of less than 20 percent of the price of the home they are purchasing, with the minimum down payment set at 5 percent.

Mortgage default insurance is a type of insurance that protects the lender if a mortgagor is unable to make their mortgage payments as agreed.

Mortgage default insurance is a heavily regulated sector in Canada, and Canada Guaranty, CMHC, and Genworth Financial are all vying for customers’ business.

Minimum Credit Score Needed For an Insured Mortgage

The CMHC raised the minimum credit score required for insured mortgages from 600 to 680 as of July 1, 2020. Specialists in the field had varying reactions to this massive growth.

Many others felt the new requirement was too stringent and would keep too many Canadians out of the housing market.

One of the mortgage applicants must have a credit score over the CMHC’s minimum requirement of 580. This makes things easier for married borrowers, as just one must have a credit score of 680 or greater.

What Is A Good Credit Score In Canada?

You might be curious about what constitutes a “good” credit score. In Canada, credit scores can range anywhere from 300 to 900, but you will not find many people with scores in the upper or lower echelons of that spectrum. Most people in Canada have credit ratings ranging from 600 to 800.

Credit scores are given in a range of possible outcomes. You can see how the levels are grouped by looking at the following breakdown of each one;

  • A score of 800 or higher indicates excellent performance.
  • A score that falls between 720 and 799 is also excellent.
  • It is considered a good range when your credit score falls between 650 and 719.
  • Fair is regarded to be between 600 and 649.
  • A credit score that is lower than 600 is considered to be a poor score.
  • How to find out what your credit score is.

It is best to verify your credit score and get a copy of your credit report before applying for a mortgage. All of this preparation needs to be made ahead of time. In several ways, you can get your hands on this data without spending a dime.

Obtaining a copy of your credit report requires contacting the credit reporting organization directly. Before we show you how to do it, let us tell you why this is a route we would not recommend taking.

When it comes to the Canadian credit reporting industry, Equifax and TransUnion are head and shoulders above the rest. Both agencies are required by law to offer consumers a free copy of their credit report once per year upon request. Also, they do it, but they do not exactly make it easy.

Both of these services advertise a premium paid version on their websites. This premium service, which includes monthly credit reports and costs around $20, is available to you.

You may get a free copy of your credit report from Equifax by filling out a form that can be found on their website and then mailing or faxing it to the company, along with identification documents.

Each individual is entitled to one free TransUnion credit report in a given calendar year.

What Are Your Options If You Don’t Have a Strong Score?

If you don’t have a strong score, do not worry, you still have many options to explore. Check these out;

Make a Bigger Down Payment

If you have a credit score on the verge of being considered good or bad, increasing the amount of money you put down as a down payment may enhance your chances of acquiring a mortgage.

To avoid paying for mortgage insurance, a down payment of at least 20% of the home’s purchase price is required. However, a more significant down payment will make your application more attractive by reducing the lender’s risk if you can afford it.

Eliminate Your Outstanding Debt

If you have a high income and assets but have used up all of your available credit, your application will be more difficult to approve. This is due to the fact that a high use ratio on revolving credit negatively affects credit scores. ” The ratio of your total debts to your annual income is a major element in determining whether or not you will be granted a mortgage.

Compare Prices

If your credit score is low, getting a mortgage from a large bank is probably out of the question, and you should broaden your search even if going through the numerous different lenders available can be time-consuming. However, you can save yourself the hassle by using us.


Having a high credit score is essential to get approved for a mortgage. Try as much as possible to get your credit score up to at least 680. If it isn’t, it does not automatically mean you will not get the loan, but you probably will not get the best mortgage rates, either.

The good news is that you can take action to boost your credit score and get it closer to where you want it to be, even if it is currently lower than you would like.

Visit our website Best Mortgage Online home page for detail information on Mortgage, Loan, Home Equity, Refinance and more.

New Purchase Mortgage

Mortgage Pre-application and Mortgage Pre-qualification

Are you looking to buy a home? What do you know about mortgage applications? Have you been wondering about the differences between mortgage pre-approval and mortgage pre-qualification?

A mortgage is a loan used to secure a home, and In Canada, most homeowners obtain a mortgage to get their home.

Once you understand mortgage basics, you will see and understand the differences between mortgage pre-approval and mortgage pre-qualification.

Mortgage Application

To choose a mortgage, you must familiarize yourself with the various types of mortgages and choose the best one for you. When choosing a mortgage, you’ll need to consider several factors. The most important is having an accurate idea of your monthly costs.

This will entail repaying the “principal” loan and making interest payments. In addition, if you can’t make a 20% down payment on a home, you will be required to pay for private mortgage insurance (PMI)

Before you can apply for any mortgage, you need to assess if you can afford it or not. It would help if you got a clear idea of the whole thing before going into it. Securing a home through a mortgage is easy if you understand how it works.

Suppose you want to apply for a mortgage, you must consider the down-payment closing costs, such as lawyer fees and real estate commissions. Also, it would be best if you considered maintenance costs, and monthly home-related expenses such as mortgage payments, home insurance, property taxes, utilities, etc.

 It would help if you also took note of your current debts, such as car loans or student loans, and finally, you must check your spending habits too. Once you look into these things, you will easily apply for a mortgage.

When applying for a mortgage in Canada, certain documents will be required before you get the mortgage. They are a

  • Letter of employment
  • current tax returns
  • an assessment notice
  • bank statements
  • paystubs,
  • assets and liabilities statement
  • purchase agreement and Sale
  • Photo identification.

You must note that the mortgage application will include primary and personal information. For instance, name, address, phone number, social security number, employer, income, etc.

The application will also require your assets, such as mutual funds and RRSPs. It will also include liabilities, such as credit cards and credit lines, and loans. Also included is the purpose of the loan, the mortgage loan amount required, the type of mortgage loan you want, the mortgage term, amortization, and interest.

 In addition, it requires a description of the property you want to buy or already own.

Mortgage Application Process

There are two basic steps to mortgage application: pre-approval and pre-qualification.

Mortgage Pre-approval

A pre-approval document states the maximum amount of money that your mortgage lender is willing to lend you. When looking for a home, a pre-approval document is extremely useful. It indicates that you are a serious buyer prepared to act quickly on a property when you find one you like.

 A mortgage pre-approval prepares you for a stress-free home-buying experience. You can approach mortgage lenders for pre-approval once you’ve decided on the type of mortgage you want.

Pre-approvals don’t take long. They entail obtaining a three-bureau credit report called a tri-merge, and this shows your credit score and history as reported by third-party, reputable institutions. A lender can examine your credit report to see your payment history and your past and present credit lines.

Your lender will determine the loan amount for which you are eligible. Pre-approval saves you a lot of time because it will allow you to focus solely on houses in your price range. Because the seller has solid evidence, you’re qualified for a loan to purchase the home, having a pre-approval document gives your offer a lot of leverage.

Pre-approval is as comparable to validating your credit worthiness as you can get without a sales agreement. You will supply certain information to the lender, and the lender will verify the information you supply. They will also run a credit check. If you’re pre-approved, you’ll get a pre-approval letter, which is an offer (but not a commitment) to lend you a certain sum for 90 days.

Mortgage Pre-qualification

Pre-qualification is now a crucial step when you want to buy a home. Once you pre-qualify for a home loan, you’re getting an estimate of how much you might be able to acquire based on the financial information you supply as well as a credit check.

Pre-qualification is the process by which lenders determine whether you meet the basic financial criteria for a home loan. Pre-qualification is also a chance to learn about various mortgage options and collaborate with your lender to find the best fit for your goals and priorities.

To get pre-qualified, you provide a lender with some basic information about your credit, debt, income, and assets, and the lender determines how much you may be able to borrow. The keyword here is “tell.” Because the information used for pre-qualification is self-reported, the lender does not typically verify it or look at your credit report.

Mortgage lenders will consider your credit profile, annual income, expected loan term and interest rate, monthly debt payments, and potential home-related expenses to determine how much mortgage you’ll be able to pre-qualify for.

Mortgage Pre-qualification is a process that is quick and fast. It is a non-binding, informal evaluation, and as such, you can be pre-qualified in a day or two, sometimes even less. Pre-qualification may occur in person, over the phone, or online, depending on the lender.

Differences Between Mortgage Pre-approval and Mortgage Pre-qualification

There is a distinction to be made between pre-qualification and pre-approval. Pre-qualification entails providing your lender with verbal or written estimates of your income and assets, who may or may not check your credit.

 Mortgage pre-approval means that the lender has confirmed your financial information and issued a pre-approval letter to show sellers and agents that you are authorized, subject only to identifying the house’s value and condition.

Also, pre-approval makes you ready to make an offer confidently and gain a competitive advantage. However, you can start house-hunting knowing how much you might be able to borrow under pre-qualification. Pre-qualification answer questions for this process, plus a credit check while providing proof of financial details, plus a credit check.


People use the two terms as if they are the same. But there are significant distinctions that every home buyer should be aware of, and we have discussed them in this post. Once you know the differences, you know what to opt for.

Take Best Mortgage Online experts advice for mortgage Pre-application and Mortgage Pre-qualification. We help you in buying your new home.

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How to Prepare for High Mortgage Rates in Canada

For the last ten years, Canadians have enjoyed relatively low-interest rates. Not only that, but due to the pandemic, the Bank of Canada lowered its interest rate even more. However, it doesn’t mean things will stay like that forever. There’s an expected increase between April and September.

The increase will come just in time for the busy spring real estate season. Many Canadians wonder, will the increase in interest rates affect them? If you’re one of those people, you’re looking for answers. That’s why we’re here to help.

Let’s talk see what can be done to prepare for high mortgage rates in Canada.

Real Estate Interest in Canada

The first step is to understand how interest rates work. The bank will give you a specific interest rate when you take out a loan. That is the percentage of your loan that you will have to pay each year. Of course, the higher the interest rate, the more you’ll have to pay back in the long run.

A thing to remember is that not all interest rates are created equal. For example, the Bank of Canada offers three types of mortgages: fixed, variable, and convertible.

  • Fixed Mortgages: A fixed mortgage means that your interest rate will stay the same for the entire term of your loan. That can be helpful if you’re worried about interest rates going up in the future.
  • Variable Mortgages: A variable mortgage means that your interest rate can go up or down, depending on the market. That could be either positive or negative, depending on your situation.
  • Convertible Mortgages: A convertible mortgage is a mix of fixed and variable. That means that your interest rate will start as a variable, but if it goes up too much, you have the option to switch to a fixed mortgage.

How High Mortgage Rates Might Affect You

Now that you understand how mortgages work, let’s talk about how high mortgage rates might affect you.

If you have a variable mortgage, there’s a chance that your monthly payments could go up. That could be a big problem if you’re on a tight budget.

If you have a fixed mortgage, your payments might go down. But the only downside is that you won’t be able to take advantage of lower interest rates in the future.

No matter which type of mortgage you have, it’s essential to make sure that you can afford your monthly payments. That means doing some math and seeing if your current budget can handle a higher interest rate.

What Causes Interest Rates to Fluctuate?

Now that you understand how high mortgage rates could affect you, let’s talk about what causes interest rates to fluctuate.

A few things can cause interest rates to go up or down.

The most common is the economy. The rates will surely go up when the economy is doing well because people are more likely to borrow money. But conversely, when the country’s economy is doing poorly, interest rates will decrease because people are less likely to borrow money.

Another thing that can affect interest rates is inflation. Inflation happens when the cost of goods and services goes up, so you’ll need more money to buy the same thing in the future. So if inflation is high, it’s more likely that interest rates will go up.

The last thing that can affect interest rates is politics. For example, if a new president is elected, they might change their economic policy and cause the interest rate to go down.

Tips for Preparing for High Mortgage Rates in Canada

Now that you know how high mortgage rates might affect you, it’s time to start preparing. Here are some tips:

  1. Start saving: An excellent way to prepare for high mortgage rates is to start saving. That means putting away a little bit of money each month, so you have a cushion if your monthly payments go up.
  2. Shop around: Another good way to prepare for high mortgage rates is to shop around for the best interest rate. It could help you save a ton of money in the long run.
  3. Get pre-approved: If you’re thinking about buying a house, getting pre-approved will help you know how much you can afford. That will make it easier to find a home that fits your budget.
  4. Stay informed: Finally, it’s crucial to stay informed about what’s going on in the world of mortgages. This way, you’ll be prepared for any changes that might happen in the future.
  5. Pay Off Your Debt ASAP: This is not specific to mortgages, but paying off your debt will help you no matter what happens with interest rates. When you have less debt, you’re in a better position to afford your monthly payments if they go up.
  6. Keep Your Budget Balanced: Another essential thing to remember is to keep your budget balanced. That means not overspending, even if interest rates do go up. When you have a tight budget, it’s easier to weather any storm.
  7. Build an Emergency Fund: Finally, another good way to prepare for high mortgage rates is to build an emergency fund. That is money that you can use in case of a financial emergency. When you have this money saved up, you don’t have to worry about going into debt if your monthly payments go up.

Closing Thoughts

The best way to prepare for high mortgage rates in Canada is to stay informed and be prepared for any changes that might happen in the future.

You can start by saving money each month, so you have a cushion if your monthly payments go up. Then, you can look for the best interest rate and get pre-approved for a mortgage.

Finally, you can pay off your debt, so you’re less burdened financially. By following these tips, you’ll be ready for whatever happens in the world of mortgages.

To get more and more updates on latest mortgage rates in Canada or Refinance rates in Canada visit our Best Mortgage Online Blog or Contact us through following button.

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Understanding Home-ownership in Canada: From Selecting to Paying off Your Mortgage

Back in 2016, nearly two-thirds of Canadian families – 63% of them, to be exact – owned their homes. However, only 43% of these people had paid off their mortgage. Between 1999 and 2016, mortgage debt represented 66% of the overall increase in debt for Canadian citizens.

If your dream is to own a home, you should know that purchasing a house can significantly boost your credit score. However, many people are interested in the homeowner’s lifestyle, but they are also worried about getting into debt. To help with this dilemma, here are some essential factors you should be aware of regarding home ownership in Canada.

Choosing Between Different Types of Mortgages

Even if you want to buy a house, it is crucial to be aware that you are not required to do so. The only way to do so is mandatory is when you apply for a mortgage loan. There are several different options available for mortgages in Canada – fixed-rate mortgages, variable-rate mortgages, and variable-rate mortgages with a fixed payment. Because of the higher interest rates associated with variable-rate mortgages, obtaining a fixed-rate mortgage loan for your first home is probably best.

Mortgage Payment Frequency

People who ask themselves, “Do I have to pay my mortgage in Canada?” should know this is a common question. Fortunately, there are several options available for scheduling your monthly payments. Monthly payment schedules include the following:

  • Weekly payments (1/52 of the total loan amount)
  • Biweekly payment schedule (1/26 of the total loan amount – half of a monthly payment)
  • Semi-monthly payments (twice per month – 1/24 of the total loan amount)
  • Monthly payments (1/12 of the total loan amount for twelve months)

Regardless of which schedule you choose, it is essential to know that your mortgage loan probably won’t be paid off by the time you retire. On average, Canadians who live in major cities will still have a mortgage balance of $110,000 after 25 years of making payments on their homes.

Amortization and You

The word “amortization” might sound intimidating at first, but it is nothing to worry about. Amortization means that part of your mortgage payment schedule goes towards paying down the principal amount of your home loan. The rest of your payments go towards interest charges. If you pay off your house by making lump-sum payments or by letting your mortgage loan terms expire, you will have to pay the penalty.

You may be wondering what would happen if you did not make a mortgage payment for a while. Unfortunately, this can lead to the loss of your home and other serious consequences that could ruin your financial stability. It would help if you tried to avoid this by setting up an automatic withdrawal schedule for paying your mortgage in Canada.

Obtaining a Mortgage in Canada

The only way you can obtain a mortgage loan in Canada is by applying for one with a financial institution or bank. Of course, this means that you will need to submit extensive paperwork and go through several different stages. Make sure that you provide the bank with all of your monthly income and banking information so they can determine whether or not you are eligible for a loan.

When it comes to receiving a mortgage in Canada, there is one thing you should know: the larger your down payment is, the better off you will be. Your credit score and history play a significant role when it comes to determining whether or not you are eligible for a loan. If you have several different types of credit accounts that are all maxed out, then the bank will probably reject your application.

Your credit history is even more critical if you apply for a mortgage with little money down. That is because the more significant the down payment you make, the lower your actual home loan amount will be. In addition, you should know that banks and other lending institutions typically require a minimum down payment of 5% to 10%.

Figuring Out Your Down Payment

One of the main concerns about home-ownership in Canada is that you have to pay a down payment. Banks might require you to pay as much as 20% of the purchase price before giving you a mortgage loan. To buy a home worth $500, 000 your down payment needs to be at least $100 000. However, it is essential to know that you can buy a house with less than 20% down.

Suppose you have a family member willing to invest in your house by becoming a part of the ownership structure called “equity sharing.” In that case, it might be possible to buy a home even without paying any money upfront. It is also possible to finance more than 80% of the purchase price by taking out a second mortgage loan.

How to Pay Off Your Mortgage Faster

One of the main benefits of home ownership is that you can access all sorts of financial assistance programs. For example, suppose you want to renovate your house and higher-quality materials than your budget allows. In that case, it might be possible for you to finance the purchase by taking out a home renovation loan.

In addition, you might be able to take advantage of the tax relief offered by the Canada Revenue Agency. For example, if you make a down payment of more than 20%, you might qualify for a refund on your taxes over several years.

Another way to pay off your mortgage faster is to invest in a tax-free savings account. Regarding other ways to pay off your mortgage faster, it is essential to know that the longer your amortization period, the more you will have to pay in interest.

In Conclusion

If you want to buy a home without worrying about getting into debt or paying a down payment, it might be a good idea to get in touch with a mortgage specialist. It is also possible for you to improve your credit score to access different types of loans. In addition, there are several different financial assistance programs available when it comes to home-ownership in Canada.

If you have any query related to Mortgage, home equity, home-ownership, home loan or refinance then visit our website home page or Call us directly at 1-855-567-4898 (toll free).

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How Financial Institutions Calculate your Mortgage Payment

If there is one thing we have all learnt since we were kids, it must be that prices can be deceiving. As children, when we buy something we like, the cost on the shelf could be different from the cost on the counter because of the sale tax. However, we didn’t know that those tiny unexpected increments prepared us for the concept of interest and principal amount.

Every economy’s financial institutions thrive on the concept of interest. Since a mortgage is one of the services, financial institutions offer, the idea of interest is an integral part of it, and it, along with the principal amount, makes up the mortgage payment. So, what is this mortgage payment?

Mortgage payment runs on the concept of interest and principal. It is the actual money off your mortgage and the interest you pay your mortgage lender for borrowing you the money you need to buy a house. There’s more; find out all about it as you continue to read.

What is Mortgage Payment

Your mortgage payment is a combination of the principal mortgage payment and the interest. There is not much to say about the principal amount, as it is the actual value of the mortgage itself, with interest being the cost you pay to your financial institution for giving their money to help you get the house you want.

Your principal amount is essential, and it determines the interest you will pay during the cycle of your mortgage payment. You see, your mortgage lender charges you interest on the principal amount that you owe. So, the more you continue to pay down the amount you owe, the more interest you will gradually reduce.

This means that the earliest period of your mortgage is usually the most expensive, as you haven’t made a considerable payment on the principal amount itself. Although if you can make those early days relatively inexpensive if you have enough cash to pay as your initial deposit or down payment. Your interest would be lower when you do this, as you have made headway with the principal amount.

Your mortgage payment comprises monthly payments that you will pay until the mortgage term runs out. The payment depends on the interest rate that the bank offered you, and you accepted it at the beginning of the mortgage. Although you may want to finish paying before the agreed term, it would cost you as mortgage lenders require you to pay a pre-payment penalty or charge if that happens.

Now, since the principal amount is precise as it is the amount you truly need, how about the interest you have to pay, and why do mortgage lenders charge interest anyway? The truth is, interest is how mortgage lenders make their money for providing you with the cash you need.

As you can see, you need to have an idea about how your mortgage lender determines the interest rate you pay. Don’t worry. We promise not to bore you with the mathematical calculations, but you will know what you need to know about interests before you apply and sign for a mortgage term.

How your Financial Institution Calculate your Interest

You might wonder why there is a semblance in interest rate after getting offers from multiple lenders. It does look unfair. It is like the whole Canadian mortgage system wants to fleece you of your hard-earned money.

We can tell you that they aren’t trying to fleece you of your money. In fact, you and your lender have something in common. You both are borrowing money. Shocked? Don’t be. We will make it more straightforward now. Picture this. Your mortgage lender is borrowing money from the government, and as your mortgage lender is charging you an interest rate, the government through the bank of Canada is charging your lender.

Mind blown? Yeah. The interest rate the government charges the bank is the Prime rate, and it is one of the factors that determine the interest rate your mortgage lender charges you. The other factors are;

  • Your Credit Rating
  • Principal Amount.
  • Whether the rates are fixed, variable or hybrid
  • Amortization length
  • Payment Schedule

Credit Rating

Your credit rating comprises your credit report and credit score. Lenders examine these two before they decide to lend you the money you need for your mortgage. These two also determine your interest rate, should mortgage lenders decide to give you the money you need. The poorer your credit rating, the fewer chances you will get a mortgage and the higher your chance of getting an expensive mortgage.

Principal Amount

We have explained this bit about the principal amount earlier on under a previous heading. In summary, the higher your principal amount, the higher your interest. To prevent this, deposit a handsome fee as your down payment.

Whether the Rates are Fixed, Variable or Hybrid

Majorly, your lender would offer you two types of mortgages. Your financial institution could provide you with a fixed-rate or variable mortgage. Fixed-rate mortgage benefits you when your interest is low, as your financial institution will maintain that rate till the end of the mortgage. However, fixed-rate mortgages rarely have low-interest rates. The reason for this is simple.

Your mortgage lender bears risk by fixing the rate for you. Your lender is saying that they will maintain that rate no matter the economic situation.

On the other hand, a variable rate is a rate in flux. Your mortgage lender or financial institution starts with one rate, and during the term of your mortgage, that rate will change. The rate will change due to economic conditions or any other conditions. So, as a borrower, you would be taking on more risks. Fortunately, variable rates have low rates.

There is one more. The hybrid rate combines the qualities of fixed and variable rates. An aspect of your mortgage will have a fixed interest rate. The other part would have a variable interest rate. So, you have the benefits which those two rates offer. For instance, you will be partially protected against an increment in rates. Likewise, you will enjoy some advantages when rates fall.

Payment Schedule

Your payment schedule covers how much time you want to make your mortgage payment. You can choose to have an accelerated payment, which gives you the power to make an extra payment annually. This additional payment comes in the form of a 13th-month payment. You can escape paying more interest this way.

Your Amortization

Your amortization is the time-frame it takes you to complete your mortgage payment. As your amortization increases, your payment reduces. On the other hand, you will pay more interest the longer it is.


As you can see, financial institutions use specific metrics to calculate your interest. You often determine how favorable these calculations will be  when you pass these metrics.

Choose Best Mortgage Online as your Mortgage Consultant. Our experts help you find the best mortgage rates in Canada to assist you in your home purchasing process. Contact us via the button below.

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Mortgage Affordability in Canada – How Much Mortgage Can You Afford?

With interest rates at historic lows, now is a great time to purchase a home, but it could also be a potentially dangerous situation. Stretching your mortgage debt service ratios beyond what is comfortable is tempting, but the risk of doing so will depend on mortgage interest rates. Canadians, in general, have mortgage debt service ratios that are well into the comfort zone, but for some consumers, it is a different story.

Mortgage Debt Service Ratios in Canada: The National Picture

We have seen a sharp increase in mortgage lending due to lower interest rates over the last few years. As a result, mortgage credit has been growing at 5.5% per year on average, with mortgage debt service ratios in Canada remaining somewhat stable. The mortgage debt service ratio is the proportion of household income dedicated to mortgage payments or rent of a rental property. Banks want to ensure that mortgage borrowers can afford their mortgage payments before approving the loan.

The mortgage debt service ratio is a mortgage regulation. The government uses it to determine Canada’s maximum mortgage amount and mortgage qualification. It also plays a role when considering housing affordability in Canada for would-be home buyers, especially in today’s low mortgage interest rate environment.

Mortgage Debt Service Ratios: The Details

A couple of years ago, TD Bank researched mortgage debt service ratios in Canada. They found that most Canadians had mortgage debt service ratios within comfortable limits; however, there were some exceptions. 

For instance, the Bank said that many homeowners take on too much money relative to their income levels. That could be problematic if interest rates increase significantly over the next few years and mortgage payments become more and more un-affordable for consumers.

Gross Household Income vs Net Household Income

Banks consider total gross household income when determining mortgage affordability in Canada. That is because mortgage payments are a significant portion of an individual’s monthly spending.

Mortgage lenders use the net household income figure for mortgage affordability, but these two figures can be very different. Gross household income, for instance, does not include deductions such as RRSP contributions, charitable donations and other write-offs. For this reason, it may not accurately reflect what consumers spend at the end of the year on expenses like mortgage debt service ratios.

The minimum down payment required by various Canadian Provinces is another crucial factor in mortgage affordability. It determines how much money you will need before shopping for your new home or condo.

GDS Ratio and TDS Ratio

GDS (Gross Debt Service) and TDS (Total Debt Service) ratios are mortgage loan affordability metrics that lenders use to determine whether or not mortgage interest rates will be manageable for mortgage borrowers. In general, mortgage lenders want to know that your minimum monthly payments on housing costs, including mortgage principal and interest, property taxes and heating costs combined, won’t exceed 32% of household income. The Bank of Canada has also emphasized that the maximum affordable mortgage debt service ratio should be 40% when gross income is under $100,000.

Your Credit Score Will Affect Mortgage Rates

Your mortgage affordability or qualification will depend on your credit score and mortgage rates. As mortgage interest rates increase, your monthly mortgage payments will also increase. That means it’s even more critical to know Canada’s mortgage rules before starting your home or condo shopping process.

Down Payments in Canada

Down mortgage payment of at least 20% is typically what mortgage lenders require in Canada. However, some mortgage down payment assistance programs are available for first-time home buyers. Moreover, suppose you can’t afford the “mortgage debt service ratio” rule. In that case, your mortgage lender may still approve your mortgage loan request if you have vital compensating factors, such as excellent credit history and a long employment record.

It’s also important to note that mortgage guidelines vary across Canada. Therefore, it’s essential to know your province’s minimum mortgage down payment requirements before starting your home or condo shopping process. In addition, while interest rates play a role in housing affordability in Canada, not all consumers will qualify for the same mortgage interest rates or get approved for loans with the same terms and conditions.

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How to Make Your Mortgage More Affordable

A mortgage calculator helps determine your monthly payment based on the purchase price of the home you are interested in. In addition, this mortgage affordability calculator will ask about your gross household income and down payment, mortgage interest rate and amortization period to determine how much money you need to borrow.

Increased borrowing power may allow you to buy a bigger home or condo. However, it may also mean that mortgage rates in Canada become unaffordable for mortgage borrowers who aren’t prepared to manage their mortgage payments at higher interest rates. Therefore, it’s essential to consider all possible outcomes before getting into “affordable” mortgage debt, which could negatively affect many aspects of your financial well-being in the long term.

Your net household income helps calculate mortgage affordability, including the mortgage debt service ratio; however, other factors are essential. For example, your net income is $5,000 per month, but you spend $3,000 on mortgage payments and another $2,000 to cover property taxes and heating costs. 

These additional expenses might limit your true mortgage affordability. Calculating the TDSR helps consumers understand their maximum mortgage amount based on their monthly housing expenses before making mortgage shopping calculations.

Your credit score will also play an essential role in determining the mortgage interest rate you qualify for as well as whether or not you can get approved for a mortgage loan at all. The higher your credit score is in Canada, the more likely you will qualify for mortgage debt at a better interest rate. A mortgage qualification letter from your mortgage lender is required in Canada before homeowners can close on a mortgage loan.

In Conclusion

Mortgage rates in Canada affect mortgage affordability. Your mortgage payment is based on the total amount of mortgage that you need to borrow and the mortgage interest rate charged by your lender. To determine mortgage qualification and how much you can afford, mortgage lenders will also ask about your gross household income and down payment.

It’s important to note that different mortgage interest rates apply based on how many compensating factors a consumer has (such as excellent credit history and a long employment record). Still, education on mortgage debt service ratios is essential to understanding how much mortgage you can afford.

We are available to walk you through all mortgage processes and help you pick and acquire the most suitable loan.

For more articles on Mortgage, please refer to our Best Mortgage Online home page. Also, our sister site Best Insurance Online hosts news, tips, reviews and more on Insurance in Canada for your reference.

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Best Commercial Mortgage Rates You Can Find in Canada

When it comes to getting housing units in Canada, the most sought-after option is a house mortgage from the bank or mortgage broker. You can get a mortgage to finance your residential home and commercial property.

A commercial mortgage is similar to what you have for a residential mortgage; the only difference is that this mortgage is taken for non-residential buildings commonly referred to as commercial property. Commercial property covers many facilities that cannot be financed under the residential mortgage plan.

Commercial mortgage rates are determined by the type of properties and their use. There is no fixed rate for a commercial mortgage as it differs for different properties and the mortgage company involved. In this article, Best Mortgage Online will provide you with the right information about the best commercial mortgage rates you can find in Canada.

Commercial Mortgage vs. Residential Mortgage

As introduced above, the type of property involved sets the major difference between a residential and commercial mortgage. While the residential property is usually sought after by regular home buyers or small real estate investors, commercial property is normally meant for real estate investment corporations, partnerships or limited companies.

The commercial property is usually used for business purposes against homes solely used for residential purposes. As you might have imagined, the rates set for a commercial mortgage are typically higher than a residential mortgage, as well as the repayment conditions. However, the repayment period is usually longer than those allowed for a residential mortgage.

In the case of residential mortgage, qualification is usually based on credit scores, personal income etc. But, for a commercial mortgage, the property you are taking out a mortgage for usually serves as collateral till the loan is paid back. It also requires you to have a higher down payment than residential properties. The down payment for commercial property can be as high as 25 – 35% of the cost.

What Counts as Commercial Property?

To be clear about how rates for commercial mortgages are calculated, it is necessary to differentiate between what type of property qualifies for a commercial mortgage and how it is different from a residential one.

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The common commercial properties that can be financed in Canada include the following:

  • Multi-Family residential property (5 units and above)
  • Mixed-use properties
  • Office buildings
  • Industrial buildings
  • Warehouses
  • Retail plazas
  • Medical buildings
  • Farmlands
  • Shopping malls
  • Construction projects

These commercial properties under this form of mortgage come with specific Loan-to-Value up to 85% depending on the property type. Properties such as farmlands or vacant spaces can have an LTV as low as 50%. Still, the more functional the property is, the higher the LTV provided by the mortgage company.

Commercial Mortgage Rates in Canada

A commercial mortgage company in Canada can help you get the best mortgage for properties at the lowest rate possible. Asides from this, the process of getting a commercial mortgage might be a bit more complicated with a lot of paperwork. Still, you can easily do this with the assistance of a commercial mortgage company.

When it comes to commercial mortgage rates, there is no one-size-fits-all solution. Instead, the rates depend on the type of property to be financed and the borrower’s financial status. For instance, stable properties connected with borrowers with good credit scores carry better rates than riskier properties with borrowers with not a great credit score.

Commercial mortgages are often based on BBB corporate bonds. Mortgage lenders apply a risk premium to the business loan based on its risk. As a result, riskier borrowers must pay a greater premium, whereas low-risk borrowers’ rates will be closer to a BBB corporate bond yield. On the other hand, these rates are often higher than CMHC-insured commercial rates, which pose the least risk to lenders.

On average, in Canada, the conventional rate for commercial mortgage rate for five years is between 4.3% – 8.3%, while a five-year rate for Canada Mortgage and Housing Corporation (CMHC) is between 3.2% – 5.3%. Additionally, CMHC insures business mortgages against failure. This safeguards mortgage lenders by ensuring that they are compensated if a business borrower fails on the mortgage.

How to Apply for Commercial Mortgage?

Although different mortgage companies have different regulations when applying for a commercial mortgage, there are still basic similarities. For example, the following steps are often required to apply for a commercial mortgage.

  1. Put your business finance in order: One sure thing a potential lender will be looking out for is the viability of your business in terms of profitability and income history. This gives the lender a sense of credibility and the ability to repay the mortgage. Therefore, before applying, you should ensure that your finance is in order.
  2. Determine the type of mortgage you want: Even for commercial mortgages, different service plans are still dependent on the property type. Therefore, before applying for a mortgage, it is best to look at the different plans available and pick the most suitable one for your intended purpose.

Some of the points of consideration include the repayment plan, interest rate, location of the property, production or repair time, and recurring costs like operational fees, legal fees etc.

  • Put together your business documents: Time is of the essence during application for a commercial mortgage as there are most likely other interested parties bidding for the same property. Therefore, it is advantageous to have all the required documents beforehand to beat the competition.

Typical examples of documents required during this stage include; a well-articulated business plan, updated financial statements, details about the commercial property and other useful documents or information about your business.

  • Make an offer: Commercial mortgage is quite a serious investment. It is usually capital intensive and carries a higher risk than a residential mortgage. Therefore, it is best to make an offer with your mortgage company to get the best possible mortgage conditions suitable for your company.


The commercial mortgage requires more capital than a residential mortgage; it is only granted for specific types of properties. It also requires different or additional requirements with varying rates and conditions. The rates on commercial mortgages are generally higher; mortgage companies insured by CMHC have a rate between 3.2% – 5.3% for five years.

For ease of getting a commercial mortgage, it is recommended that you have all your documents – financial statements, business proposals etc. – handy before applying. You should also apply early enough to ensure ample time for proper application review.

At Best Mortgage Online, we can assist you in getting the right information to prepare you for a commercial mortgage. Contact us with the button below.

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Canadian Mortgage Documents Checklist

The bank representative hands you a thick stack of documents. You are told that these documents must be signed (or initialed) to complete the loan process. However, rarely does anyone tell you what is on those pages. It can be daunting for first-time home buyers – especially if they do not know what to expect.

Inexperienced home buyers should always check with their agent or mortgage representative to determine what documents are required for registration. After reviewing the list of documents, you may discover that there are many you have never even seen before. To help prepare others for this experience, below is a list of typical documents you need to get a mortgage in Canada.

Mortgage Documents Checklist

1) Pre-Authorized Debit form

The form authorizes your financial institution to electronically debit your bank account each month to pay off the balance on loan.

2) Statement Indicating Down Payment Source(s)

This proves that all funds used towards the down payment came from legitimate sources. Funds must be traceable – i.e., brokerage statement, RRSP withdrawal confirmation, and second mortgage payoff letter.

3) Income Verification

Your lender will require your most recent income tax return and the T4 slips from all companies you have worked for to date to verify your income history. You should also provide a record of any assets or other sources of funds that can be used towards repayment of the mortgage, such as property rental income, dividends from investments, trust income, etc.

4) Pre-Approved Letter From Lending Institution(s)

That is to show that you have been pre-approved for a loan based on a detailed analysis of your financial position by a qualified mortgage specialist.

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5) Job Offer Letter

If you are self-employed, this letter provides proof of stable employment and outlines projected business activity over at least the next twelve months.

6) Buyers Profile

Lenders will typically request a summary of your financial situation to complete this form.

7) Verification of Deposit Held/Assets Owned by the Client(s)

Your lender will want proof that the loan can be repaid and have enough money left over for all other living expenses and savings goals. That may include: pay stubs, monthly bank statements, letters from employers/financial institutions showing salary amounts and deposits into accounts each month over the past six months, RRSP or TFSA contribution confirmations for last year, net worth statement (see note below), etc.

Note: A Net Worth Statement is a list detailing everything you own (i.e., personal property such as your home, cars, heirlooms, etc.), minus what you owe (i.e., money owed on credit cards or loans). Assets are listed according to liquidity – the most liquid items first. The value of each asset is listed next to it. Liabilities are listed last and show how much money or equity is left over after deducting debts from assets. Not every lender will require this form, but it does help provide a complete picture of your overall financial position.

8) Letters Regarding Any Other Real Estate Owned/Mortgages Currently Held

Your lender will want to know if you have other mortgages on any other properties. They’ll need to know this to determine if you can afford the new mortgage payments and still meet all your other financial obligations.

9) Certified Cheque

To complete the registration process, your lender will need a certified bank cheque as proof that you have enough money to pay for all fees and closing costs. The lender must ensure that the name(s) on the cheque must match those on the title as part of this process.

10) T4 or Notice of Assessment

This confirms federal and provincial tax amounts and dates so that interest rates quoted by lenders accurately reflect income tax deductions.

11) Pre-Approved Guarantor Form (if applicable)

If you are buying with someone else who is not going to be on title or provide a down payment, they may need to complete this form for their income and assets to be considered for purposes of underwriting the mortgage.

12) Endorsement/Holder information – The endorsement section of your mortgage documents lists all authorized signers (i.e., those able to make decisions on behalf of the lien-holder). The section must match up with the individual(s) listed on the title and statement of authority (if applicable), or they may not be permitted to make any changes to your file. That includes signing, amending, and terminating agreements and mortgages, and authorizations should be limited based on your settlement date and other requirements specified by your lender.

13) Statement Regarding Holding Title in Trust (if applicable)

If you are buying a property held in trust, you will need to complete and submit this form that documents your authorized signers.

14) Statement Regarding Mortgaged Property (if applicable)

If you are buying an already mortgaged home, you will need to provide proof of the mortgage to be removed from the title and replaced with your new mortgage. You may also need an updated appraisal on the home if there have been any significant changes or improvements since the last valuation was completed.

15) Verification of Employment

Your lender will ask your employer(s) to confirm details related to your job description, salary, etc., so make sure to provide accurate information upfront. The lender may also ask for a letter verifying how long you have been employed at that company.

Closing Thoughts

Mortgage financing isn’t always simple, but it doesn’t have to be complicated. Before you home-hunting, be sure that you are financially prepared to own the property by consulting with professionals who can assess your income and credit history/score, determine how much of a mortgage you qualify for, and help explain the entire process.

And remember: any violations of your lender’s requirements could result in a declined mortgage, so be sure to carefully review all the information to ensure you have submitted everything required.

For more articles on Mortgage, please refer to our home page at Best Mortgage Online. We also have a sister site dedicated to news, tips, reviews and more on Insurance in Canada – Best Insurance Online.

Our experts are available to assist you through the mortgage application process, help you pick the most suitable loan rate, etc.

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Mortgage Down Payment in Canada: Everything You Need to Know

If you’re reading this, you’ve probably come across the news that prices of down payments in Canadian cities have skyrocketed over the past year. As CTV News reports, in 2021, housing affordability has worsened by the widest margin in nearly 30 years.

But despite all of this, many Canadians are still out there buying properties. Whether you’re buying your first home or owning multiple properties, you know that the buying process starts with saving for a down payment. 

To help you start, here’s everything you need to know about down payments in Canada.

How Minimum Down Payment Works in Canada

When a down payment is mentioned, people usually think of the minimum amount you must pay as a deposit. However, the term mortgage down payment covers different deposits with varying credit conditions.

The Loan-to-Value Ratio (LTV) is how much of your home’s price is paid by the mortgage. Most mortgage lenders use this insurance to keep themselves safe even when they don’t have collateral.

The minimum mortgage down payment in Canada ranges from 0% to 20%. In addition, all high-ratio mortgages require mortgage default insurance, which protects against losses in case of borrower default, death, or disability.  

The amount you put down will affect the mortgage rate and mortgage payment. For example, if you put down a mortgage down payment of less than 20%, there will be mortgage insurance fees.

The mortgage insurance premium is payable to the mortgage insurer, the Canada Mortgage and Housing Corporation (CMHC), or Genworth Financial Canada Ltd. This amount is usually included in your monthly mortgage payment. Exclusions from mortgage insurance include:

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Different Types of Minimum Down Payments

Though mortgage down payment is usually used interchangeably with mortgage insurance, there are also different types of mortgage down payments.

Cash Committed Mortgages

If you need a mortgage loan but don’t have the minimum 20% mortgage down payment, your mortgage advisor can help you get a cash-committed mortgage loan. A cash-committed mortgage loan requires mortgage insurance because the loan amounts are greater than 80% of the property’s value.

A cash-committed mortgage loan requires mortgage insurance because the loan amounts are greater than 80% of the property’s value.

Lender Mortgage Insurance (LMI)

If you plan to borrow more than 80% of your home’s price and can’t meet mortgage down payment requirements, it will be an interest-only mortgage with mortgage default insurance. That means mortgage insurance premiums must be paid with interest charges until the mortgage is paid off, or mortgage down payment can be increased to 20% or more of the home’s value.

CMHC Mortgage Loan Insurance Premium (CMHC MIP)

If you need mortgage financing and cannot make a minimum 5% mortgage down payment, you can apply for mortgage loan insurance with the Canada Mortgage and Housing Corporation (CMHC. The CMHC mortgage loan insurance premium is payable to mortgage default insurance.

National Housing Act Mortgage Loan Insurance Premium (NHA MIP)

The National Housing Act mortgage loan insurance premium is payable to mortgage insurer Genworth Financial Canada Ltd., on mortgage loans with mortgage rates more than the mortgage down payment.

Mortgage Loan Insurance Premium (MIP)

The Canada Housing and Mortgage Corporation (CHMC), a mortgage insurer under the National Housing Act, operates as Canada Guarantee. This mortgage insurance premium is payable to mortgage insurer Genworth Financial Canada Ltd., on mortgage loans with mortgage rates more than the mortgage down payment.

How Much Mortgage Down Payment Do I Need?

You don’t need to pay a 20% mortgage down payment to get a mortgage loan, but you must avoid borrowing more than 80% of your home’s value. You can calculate this by taking your property value and subtracting the mortgage down payment.

Different mortgage lenders have different mortgage rates and insurance premiums for mortgage down payments. You can lower your monthly mortgage rate by making mortgage down payments of more than 5% of the home’s value, e.g., 10%, 15% or 20%.

Time You Need to Save Up for a Down Payment

You need to consider how much time you need to save up for a down payment. Luckily, the National Bank of Canada recently released a report outlining how much time people need to save money to make the first down payment. 

If you saved 10% of your pre-tax household income, it would take you slightly under six years – or 69 months – enough to save for a down payment on a typical Canadian home. As at this time last year, there had been 57 months of saving at the same rate.

Putting away 10% of your household’s pre-tax income may take decades in Vancouver, Victoria, and Toronto.

Average Down Payments by Province

Next, you need to realize that your down payment vastly varies from province to province. That can help you determine how much money you’ll need for a down payment on a house in your area based on the average price of homes in your area. 

Here are the average don payments in Canadian provinces, according to the latest Real Estate & Housing Market Forecast report:

  • British Columbia: The average down payment in British Columbia is $159,762.64, or 22.5% of the purchase price of a property.
  • Ontario: Ontario homebuyers, on average, make a larger down payment than residents of any other province (aside from British Columbia). 
  • Quebec: According to first-quarter data, Quebec residents made the smallest down payment on a home, with an average of less than 15%.
  • Alberta: The average down payment in Alberta was $62,929.45, making it the second-lowest in the test markets, behind only Quebec’s 15.15 percent.
  • Nova Scotia: The average down payment in Nova Scotia is 18.54 percent ($57,781.46), the lowest among the test markets at $363,330.

Closing Thoughts

The mortgage down payment is the cash a home buyer needs to pay as a deposit on a mortgage. Mortgage insurance reduces this for buyers who can’t complete a down payment. Depending on mortgage rates and insurance premiums, you can calculate mortgage down payments in Canada.

Let us at Best Mortgage Online help you find the best loan rates to assist you in your home purchasing process. Contact us via the button below.

New Purchase Mortgage

How to Pick a Mortgage Lender in Canada: 10 Questions to Ask

If you’re a new homeowner, a mortgage is a huge commitment. Like any contract, it’s essential to know the details of what you are signing up for. After all, mortgage rates change frequently, and if you don’t know the particulars of the mortgage agreement, this can cost you money.

Understanding Mortgage in Canada

In Canada, there are a few different mortgage options:

  • Conventional mortgage: A mortgage that requires the borrower to make mortgage payments to repay the loan over time
  • High Ratio Mortgage: Type of mortgage that requires the borrower to make mortgage payments to repay the loan over time and requires the borrower to pay a monthly mortgage insurance premium.
  • Second/Third Mortgage: For one who has already signed another mortgage agreement with an institution.

The mortgage lender you use will significantly affect the mortgage rates and terms you receive. Here are some tips on choosing your mortgage provider:

  • Talk to family or trusted friends
  • Ask your real estate agent for recommendations
  • Shop around online through mortgage brokers in Canada
  • Decide if you want to go through a mortgage lender or a mortgage broker

What Makes a Good Mortgage Lender?

Your lender will be your single point of contact for the mortgage agreement as far as mortgage providers go.

You want to find someone who makes you comfortable throughout the mortgage process and is reliable. Some mortgage brokers offer competitive rates and products, while some lenders earn their money solely by originating mortgages.

Some mortgage lenders or brokers offer their mortgage insurance, while others link you with mortgage insurers. It is essential to know that mortgage rates can change quickly, so it’s vital to know if your mortgage provider will be able to match the best mortgage rates in Canada.

Identifying Your Mortgage Lender

The mortgage broker is a professional who helps people find a mortgage lender and helps them through the process of getting a mortgage.

Mortgage lenders can range from banks to credit unions and trust companies, among others. When it comes time for changes, you’ll want someone with experience when it comes time for changes, such as renewals or payment amount changes. During financial hardship, the last thing you need is an inability to make adjustments with your mortgage lender without incurring fees.

Typically, mortgage lenders will provide a mortgage broker with a mortgage rate and mortgage insurer, or they may give them a combination of both. As a result, the mortgage lender can offer conventional and high ratio mortgages.

A mortgage broker can help you find the best mortgage rates available in Canada, regardless of whether they’re from a bank, credit union, or mortgage insurer.

There are two types of mortgage brokers:

  • Sales-Based Mortgage Broker: A mortgage broker whose primary source of income is originating loans and collecting commission for doing so.
  • Non-Sales Based Mortgage Broker: A mortgage broker whose primary source of income is not originating loans and collecting commission for doing so.
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10 Questions You Need to Ask Your Mortgage Lender

Different lenders offer different mortgage plans with these options. Here are the top 10 questions to ask mortgage lenders in Canada before signing on any dotted line:

What is your mortgage rate?

This is an obvious question, but it gives you a rough idea of what kind of mortgage you can afford. If mortgage rates are low (less than 5%), then mortgage rates are usually lower too.

What is your mortgage penalty?  

This question will tell you what the lender charges if you need to break your mortgage agreement early or if mortgage rates drop below what you initially negotiated been. For example, some lenders charge an entire three-month interest while others only charge one month’s interest to break the mortgage agreement early. Failing to pay your mortgage penalty can also negatively affect your credit rating.

How will mortgage rates change over time?

Different mortgage lenders use different methods to calculate mortgage rates, so it’s essential to compare the mortgage terms of each lender. For example, some lenders offer “fixed” mortgages that don’t change for a set period, while other mortgage rates vary based on the prime rate or other lending rates.

What penalties do you charge if rates rise during my term?

The mortgage lender should be clear about whether they have a penalty for your mortgage rising in interest before it expires. This way, you’ll be able to make an informed choice about mortgage rates.

How often is my mortgage interest rate reviewed?

Some mortgage lenders will review mortgage rates every month, while others only review mortgage rates every 3-5 years. You should know how often your mortgage will be reviewed to avoid higher mortgage rates when you renew your mortgage agreement.

Can I lock my interest rate for a set period?

Most mortgage lenders will offer you the chance to “lock in” mortgage rates before they change. That is great if you’re planning to buy a house and want to know your mortgage costs, but it also helps prevent mortgage rates from increasing.

How much do mortgage payments increase over time?

Depending on the mortgage lender, mortgage rates can increase by 5% or more after a few years. So make sure you’re aware of how mortgage rates might change over time so that you’re not surprised later on.

Can I pay off my mortgage early?

Some mortgage lenders will let you pay off your mortgage early, but there’s usually a charge for this. If possible, try to find mortgage lenders who don’t charge early mortgage payment penalties.

What type of mortgage do you offer?

Different lenders offer different mortgage plans, so make sure the mortgage lender knows what kind of mortgage you’re looking for. For example, mortgage lenders might offer mortgage plans that allow you to pay off your mortgage early without penalty, and other mortgage rates might not provide this option.

Will I be charged mortgage application fees?

Most mortgage lenders will charge a mortgage application fee when applying for mortgages, but some mortgage lenders may also charge mortgage application fees when mortgage rates drop. This way, you’ll know what mortgage lenders will charge before you apply for a mortgage.

Closing Thoughts

Other mortgage lenders may offer other mortgage plans, so it’s crucial to shop around for mortgage rates until you find the best mortgage lender. Some mortgage lenders will charge a monthly mortgage administration fee and a mortgage penalty fee if your mortgage rate rises during your term.

Best Mortgage Online can also help you acquire a mortgage, refinance a mortgage in Canada, … with the best rates on the market. Call us and talk to our agents are available at 1-855-567-4898 (toll free).