Mortgage blog.
Articles that answer the common questions, and case studies that work the same decisions through with real numbers.
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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 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.
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.
Inspection or appraisal: two reviews, two purposes
The inspection works for you. The appraisal works for the lender. Both matter, for different reasons.
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.
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.