Frequently Asked Questions

On a standard residential mortgage, I'm paid a finder's fee by the lender once your mortgage closes. You pay nothing out of pocket. The lender pays the fee because I've done the work of qualifying you, gathering your documents, and presenting a clean application - work they'd otherwise have to do internally. This fee doesn't affect your rate; in fact, because I bring volume to lenders, I'm often able to negotiate rates that are lower than what you'd get walking in off the street.

Your bank can only offer you their own products at their own rates. I work with 20+ lenders including the big banks, credit unions, and monolines that only lend through brokers. That gives me access to a wider range of products and rates - and I negotiate on your behalf, which a bank employee won't do. The bank employee works for the bank. I work for you.

Pre-approval means a lender has reviewed your income, debts, credit, and down payment and committed to lending you a specific amount at a specific rate, subject to property approval. It's different from pre-qualification, which is just an estimate. A proper pre-approval from me involves a credit check and income verification, and gives you a rate hold (typically 90 to 120 days) while you shop for a home. When you find a property, we submit the property details and the lender confirms everything before funding.

The stress test requires you to qualify for a mortgage at the higher of two rates: 5.25%, or your actual contract rate plus 2%. This means even if your rate is 4.5%, you have to prove you could afford payments at 6.5%. The purpose is to ensure borrowers can handle rate increases during the mortgage term. It reduces how much you can borrow - typically by about 20% compared to pre-stress test days. I'll tell you exactly where you stand before we submit anything.

The core documents for most applications are: two most recent pay stubs, two years of T4s, a letter of employment, your most recent Notice of Assessment from the CRA, 90 days of bank statements showing your down payment, and a government ID. If you're self-employed, it's generally your last two years of tax returns and financial statements instead of pay stubs. I'll give you a specific list based on your situation and do everything possible to minimize what the lender asks for.

A renewal happens at the end of your mortgage term - your mortgage balance, amortization schedule, and property stay the same; you're just choosing new terms and a new rate. A refinance can happen at any time and typically involves changing the mortgage amount (either borrowing more or consolidating other debt), which may require breaking your existing mortgage and paying a penalty. Renewals are penalty-free. Refinances may or may not be, depending on timing.

Yes, you can break a fixed-rate mortgage mid-term. The cost is a prepayment penalty, calculated as the greater of three months' interest or the Interest Rate Differential (IRD). With the big banks, IRD penalties can be surprisingly large - sometimes 10 to 15 times higher than you'd expect - because they calculate it using their posted rate rather than the rate you actually received. With monolines and some credit unions, penalties are typically capped at three months' interest. Before breaking anything, call me - I'll calculate the penalty and tell you whether it's worth it.

A variable-rate mortgage has an interest rate that moves with the Bank of Canada's prime rate. When prime goes up, your rate goes up - and vice versa. Historically, variable-rate borrowers have paid less interest over time than fixed-rate borrowers, but that's not guaranteed. Variable rates also typically carry a lower penalty if you need to break your mortgage early (usually just three months' interest). Fixed rates offer payment certainty. The right choice depends on your risk tolerance, how long you plan to stay in the home, and where rates are likely to go - all things I'll discuss with you.

No. Most lenders want to see a minimum credit score around 620 to 680 for standard residential mortgage products, but I work with lenders at various credit thresholds. If your score is lower due to past issues, we look at how recent the problems were, what your current situation looks like, and which lenders have programs for your specific profile. I'm straightforward about what's possible - I won't waste your time if the numbers don't work, and I'll tell you what to do to get there if they don't yet.

Yes, non-residents can purchase Canadian property and obtain a mortgage from Canadian lenders - but the requirements are more stringent. Most lenders require a minimum 35% down payment, and you'll need to qualify using foreign income documentation. In BC, the Additional Property Transfer Tax (Foreign Buyer's Tax) of 20% applies in many areas including Metro Vancouver. Some lenders specialize in non-resident financing and I have strong relationships with several. See my Non-Resident Mortgages page for more detail.

A construction mortgage releases funds in stages (called progress advances or draws) as construction milestones are completed, rather than providing the full amount upfront. You pay interest only on what's been advanced during the build period. Once construction is done and the home receives occupancy, it converts to a standard mortgage. These mortgages require more documentation upfront - building plans, permits, contractor contracts, and a cost breakdown. They typically require a minimum 20% down payment based on the projected completed value.

For a standard salaried employee with a clean application, pre-approval typically takes 24 to 48 hours. Full approval after an accepted offer (subject to financing) is usually 3 to 5 business days once all documents are in. More complex situations like self-employed income, non-residents, and construction mortgages take longer and need to start earlier. If you're in a multiple-offer situation and need to waive financing conditions, call me before you make the offer. We can often get informal lender commitments faster than the standard timeline when we're prepared.