Mortgage blog.
Articles that answer the common questions, and case studies that work the same decisions through with real numbers.
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Posted rate or negotiated rate: how to read today’s rates
The posted rate is a reference, not a price. The gap with the negotiated rate changes your payment, and it also feeds into the penalty.
Private mortgage: the real cost of one year and the way out
Rate, upfront fees, brokerage fees and extension fees: what one year really costs, with a fictional example, and the exit plan to fix before signing.
Top 10 questions to ask a mortgage broker
Ten questions to ask before you hand over your file, with Mathieu St-Onge’s answer beside each.
Top 10 mistakes to avoid at mortgage renewal
Ten common renewal mistakes: the offer signed without comparing, the forgotten penalty, the term picked without a plan.
Top 10 costs to plan for when buying your first home
Down payment, welcome tax, notary, inspection, insurance premium: ten cost items in Quebec, with the known amounts.
Top 10 documents your mortgage broker will ask for
Ten items to gather for a mortgage application, why the lender wants them and what is added for your profile.
Mortgage penalty: interest rate differential or three months’ interest?
A variable rate usually costs three months’ interest; a fixed rate, the higher of two calculations. One loan, three ways to calculate, three amounts.
Portable mortgage or assumption: moving without breaking your loan
Keeping your rate and terms on the new property, or handing your loan to the buyer: what each option requires, and how an insured loan is treated.
Financing a plex of 2 to 5 units: down payment and rents
A duplex is treated like a house; a triplex or fourplex needs 10%; at 5 units you leave the small-building rules. A $700,000 example.
Self-employed: the documents lenders ask for
Notice of assessment, T1 return, statement of business activities: the list, the 24-month experience rule, and the case of someone self-employed for under two years.
Newcomer to Canada: down payment and credit file
CMHC sets no minimum length of residence. Eligible statuses, the down payment, a foreign credit report and the documents to prepare.
Co-borrower or guarantor: what each one commits to
A co-borrower signs the loan and often owns part of the property; a guarantor backs someone else’s debt. Either can be pursued.
Mortgage broker or bank: who pays, who compares?
In most residential files the lender pays the broker. The real difference is how many offers you see before you choose.
Welcome tax in Quebec: what you pay by municipality
Land transfer duties are calculated in brackets of the price. The base schedule, Montreal, Quebec City, a $450,000 example and the first-time buyer credit.
Notary and closing costs: the full list when you buy
Notary, welcome tax, inspection, tax adjustments, tax on the premium: the cash costs to plan for on top of the down payment.
Minimum down payment in Quebec: 5%, 10% or 20%?
5% on the first $500,000, 10% on the next slice, 20% from $1.5M: the rule, the insurance premium and two worked examples.
The mortgage stress test: which rate qualifies you?
The lender qualifies you at a higher rate than your loan’s. The calculation, the effect on your maximum price and a $400,000 example.
30-year amortization: who qualifies and what it costs
The eligibility rules, the lower monthly payment and the extra interest over time, with a $400,000 example.
When should you start comparing a mortgage renewal?
Open the envelope right away. The time left before maturity is what gives you negotiating room.
Inspection or appraisal: two reviews, two purposes
The inspection works for you. The appraisal works for the lender. Both matter, for different reasons.
Refinancing: how much money you actually walk away with
From estimated value to the money that lands in your account: what gets taken off along the way.
Choose a term around your plans, not only the rate
A sale, a move, a repayment: choose your term to fit your calendar as much as the posted rate.
Mortgage penalty: calculate the cost before making a change
Before you sell, switch, or refinance: get a written amount, with a date on it, and add it to your costs.
HBP, FHSA, a gift, savings: where is your down payment coming from?
Every dollar of the down payment needs a source, a date, and proof. We put that together before the offer.
Renovations: choose the source of funds before work starts
Savings, line of credit, or refinancing: it depends on the work schedule as much as on the rate.
Set a purchase budget that leaves a reserve after closing
Start from the payment you want to make, and keep cash for costs, maintenance, and surprises.
Prequalification or approval: what is actually confirmed?
What a prequalification gives you, and what still has to be confirmed before the offer.
Fixed or variable: what your budget can handle
Nobody knows where rates are going. Look at what your budget can absorb and what the contract allows.
Debt consolidation: lower payment or longer debt?
Your current payments, the new mortgage balance, how long it takes, and the total interest. All four, not just the payment.
Financing condition: which dates should the offer protect?
How many days to give the financing condition, once you account for documents, appraisal, and the lender.