Frequently Asked Questions

Typical documents include government-issued photo ID, recent pay stubs or proof of income, T4 slips and Notice of Assessment, bank statements, and information about your current debts. Self-employed applicants may need to provide business financial statements and two years of tax returns.

A straightforward application can be approved within 24 to 48 hours. From application to closing, the typical timeline is 30 to 45 days for a purchase and 15 to 30 days for a refinance. Alternative lending timelines can vary depending on the complexity of the file.

The FHSA is a registered savings account for first-time home buyers that launched in 2023. You can contribute up to $8,000 per year (up to $40,000 lifetime), and contributions are tax-deductible like an RRSP. The key advantage is that withdrawals for a qualifying home purchase are completely tax-free, similar to a TFSA. You can also transfer RRSP funds into an FHSA.

The stress test requires you to qualify at a rate higher than the one you will actually pay, typically the greater of 5.25% or your contracted rate plus 2%. This ensures you can still afford your mortgage if rates rise. It affects how much you can borrow, so we factor it into your pre-approval from the start.

Yes. The Home Buyer's Plan lets first-time buyers withdraw up to $60,000 per person ($120,000 for a couple) from their RRSP tax-free to put toward a home purchase. You have 15 years to repay the amount back into your RRSP, starting the second year after the withdrawal.

Beyond your down payment, budget for legal fees ($1,000-$2,000), home inspection ($300-$500), property transfer tax (though first-time buyers in BC may be exempt on homes up to $500,000), title insurance, and moving costs. We help you estimate these during pre-approval so there are no surprises.

Refinancing makes sense when the savings or benefits outweigh the costs. Common scenarios include consolidating high-interest debt, accessing equity for renovations or investment, securing a significantly lower rate, or restructuring your payments. We calculate the break-even point so you can see the numbers clearly.

You can typically refinance up to 80% of your home's current appraised value. For example, if your home is worth $800,000, you could have a mortgage of up to $640,000 after refinancing. The amount of accessible equity depends on your existing mortgage balance and property value.

Yes. Debt consolidation is one of the most common reasons to refinance. By rolling high-interest credit card or loan balances into your mortgage, you can significantly reduce your monthly payments and total interest costs. We help you compare the numbers to make sure it is worthwhile.

If you refinance before your current term ends, you will likely pay a prepayment penalty. The amount depends on your lender and mortgage type. We calculate the penalty and compare it against your potential savings so you can make an informed decision about whether refinancing now makes financial sense.

Yes, though your options depend on how long you have been self-employed and what documentation you can provide. Some lenders require two years of self-employment history, but others will consider borrowers with as little as one year if you have strong business documentation, a solid down payment, and can demonstrate consistent income through bank statements or contracts.

It depends on the program. Full-documentation programs require two years of T1 Generals, Notices of Assessment, and business financial statements. Alternative programs may accept 12 to 24 months of bank statements, signed contracts, or an accountant letter confirming income. Stated income programs require a declaration of income supported by proof that your business exists and is active.

Lenders use different methods depending on the program. Some average your last two years of net income from your tax returns. Others use gross revenue with a reasonable expense ratio applied. Some programs allow add-backs for non-cash expenses like depreciation or one-time write-offs. The calculation method can significantly affect how much you qualify for, which is why working with a broker who understands these differences matters.

Not necessarily. If you can provide full income documentation that meets traditional lending criteria, you may qualify for the same rates as salaried borrowers. If you need a stated income or alternative documentation program, rates are typically 0.5% to 1.5% higher than conventional rates. The exact premium depends on your down payment, credit score, and overall financial profile.

Yes. Business write-offs reduce your taxable income, which is what most traditional lenders use to qualify you. This is one of the most common challenges self-employed borrowers face: the tax strategies that save you money can also reduce your borrowing power. Alternative lending programs specifically address this by using different income verification methods that better reflect your actual cash flow.

Some lenders place primary emphasis on your equity position and loan-to-value ratio rather than income documentation. If you have significant equity, typically 35% or more, certain alternative and private lenders will qualify you with minimal income verification. The rate and terms depend on how much equity you have, but for homeowners with strong property positions, equity-based qualification can open doors that income-based qualification cannot.

Equity-based lending programs typically offer loan-to-value ratios up to 65% to 75%, depending on the lender and property type. A lower LTV generally means better rates, because the lender has more security. For example, borrowing 50% of your home value will typically get you a more competitive rate than borrowing 75%. We help you determine the optimal LTV that balances your financing needs with the best available terms.

No, though both leverage home equity. A reverse mortgage is a specific product for homeowners aged 55 and older that requires no monthly payments, with the loan repaid when you sell or move. Equity-based lending refers more broadly to mortgage programs that prioritize your equity position in qualification. These mortgages still require regular monthly payments but use your equity strength to qualify you when income documentation is insufficient.

Yes. Retirees are one of the most common groups who benefit from equity-based lending. When your income has decreased in retirement but your home has appreciated significantly, traditional lenders may not qualify you. Equity-based programs recognize that a retiree with 60% or more equity in their home is a low-risk borrower, regardless of their pension or investment income level.

Investment properties in Canada require a minimum 20% down payment. Unlike primary residences, there is no mortgage default insurance available for non-owner-occupied properties, which means the 20% is a firm minimum. A larger down payment, such as 25% or 30%, can qualify you for better interest rates and may be required for certain property types or lending programs.

Yes. Most lenders allow a portion of expected rental income to offset the mortgage payment in your qualification calculations. The offset percentage varies by lender, typically between 50% and 80% of gross rental income. This is one of the most important variables in investment property qualification, and choosing the right lender based on their rental income treatment can significantly affect how much you can borrow.

Investment property mortgage rates are typically 0.10% to 0.25% higher than equivalent primary residence rates. The premium reflects the slightly higher risk lenders associate with non-owner-occupied properties. However, with a strong application including 20% or more down, good credit, and solid rental income, the rate difference is modest. We negotiate across our lender network to minimize this premium.

Yes. Accessing equity in your primary residence through a refinance or home equity line of credit is one of the most common strategies for funding investment property down payments. The interest on money borrowed to earn rental income may be tax-deductible, though we recommend confirming the tax implications with your accountant. We can structure the equity access to support your investment timeline.

Single rental properties (one unit) and small multi-unit properties (two to four units) both qualify for residential mortgage programs. Multi-unit properties can offer stronger cash flow and may benefit from more favourable rental income calculations from certain lenders. Properties with five or more units typically require commercial financing, which has different qualification criteria, rates, and terms.

The IRD is calculated by taking the difference between your current mortgage rate and the rate your lender can currently offer for a term matching your remaining time. That difference is multiplied by your outstanding balance and the number of months remaining in your term. Each lender uses a slightly different formula, which is why penalties can vary dramatically. Some lenders use posted rates in their calculation, which inflates the penalty, while others use discounted rates.

Several strategies can help. Most mortgages include prepayment privileges that let you pay down 10% to 20% of your balance per year without penalty, reducing the amount the penalty is calculated on. Timing your break closer to your maturity date reduces the remaining term in the calculation. Choosing a variable-rate mortgage limits your penalty to three months interest. Some portable mortgages let you transfer your terms to a new property. We can review your mortgage contract to find the best approach for your situation.

It is worth breaking your mortgage when the financial benefit outweighs the penalty cost. Common scenarios include consolidating high-interest debt into your mortgage, securing a significantly lower interest rate, or selling your home. We calculate the exact break-even point by comparing your penalty against projected savings over the new term, so you can see the numbers clearly before making a decision.

The three months interest penalty is straightforward: three months of interest at your current rate on your outstanding balance. The IRD penalty is typically larger because it accounts for the difference between your contracted rate and today's lower rates across your remaining term. Variable-rate mortgages always use the three months interest calculation. Fixed-rate mortgages use whichever method produces the higher amount, which is usually the IRD when rates have fallen.

Yes. A broker can review your mortgage contract to identify prepayment privileges you may not be using, calculate your exact penalty using your lender's specific formula, and compare the cost against potential savings from refinancing or switching. We also know which lenders use more favourable penalty calculation methods, which can save you significantly on your next mortgage term.