Frequently Asked Mortgage Questions

Mortgage FAQ
Why use a Mortgage Broker?
What is the Home-buyers Plan?
Do I qualify for 5% down payment program?
What Should I expect for closing costs?

Private Mortgage FAQ:
How to get a private mortgage?
How does Private Mortgages work in Canada?
When or Why would you apply with Private Lenders for Home Mortgages?
Is there Private Mortgage Lenders For Bad Credit?
What Things Do Private Lenders Need to Know?
What are Commercial Private Lenders?

Equity FAQ:
Do a Home Equity Loan or Refinance?
What is a Home Equity Loan and how to get one?
What kind of equity based solutions are available?
What is a non owner occupied Home equity loan?
How Much Equity Do I Have In My Home?

Mortgage Refinancing FAQ:
How does Mortgage Refinancing work in Canada?
How do you Refinance a Mortgage After Divorce?
What is the difference between Mortgage Refinance vs Mortgage Renewal?
How to Refinance With No Income Verification?
What do you need to Refinance a Mortgage?
What to do when Mortgage Refinancing Options are Limited or Non-Existent?

Why use a Mortgage Broker?

  • Receive professional negotiating expertise.
  • Convenience and access to numerous new mortgage products.
  • Unbiased knowledgeable advice.
  • Access to unadvertised rates.
  • I work for the YOU, not the bank.

What is the Home-buyers plan?

  • Is a Federal Government Program that allows home-buyers to use $25,000 for each purchaser from his/her own RRSP.
  • You must not have owned a principal residence within last 5 years.
  • You must intend to occupy your home as a principal residence.
  • Minimum repayment is 15 equal annual instalments. This schedule can be accelerated.
  • The funds to be withdrawn must have been invested into the RRAP for a minimum of 90 days prior to withdrawal.
  • You must complete a Form T-1036.

Do I qualify for the 5% down payment program?

  • The home must be located in Canada and is to be occupied as your principal residence.
  • You have from your own resources a down payment of at least 5% of the purchase price of home.
  • Your mortgage payment must not exceed 32% of your gross household income. This includes payment of principal + interest + property taxes + heat + condo fees (if applicable).
  • You must be able to cover closing costs equivalent to at least 1.5% of the purchase price.
  • You meet the lender’s eligibility requirements regarding income, employment and credit worthiness.

What should I expect for closing costs with a traditional lender?
(Closing costs are approximately 1.5% of the Total Purchase Price.)

  • Appraisal Fee
  • Legal Fees
  • Title Insurance (if applicable)
  • Survey Certificate (if applicable)
  • Home Inspection (if applicable)
  • Tax Adjustment (if applicable)
  • Interest Adjustment (if applicable)
  • Property Transfer Tax (if applicable)

Salaried Employees

  • Job Letter- Lenders use 100% of the income. Verification is made on company letterhead, signed by appropriate individual. If you are a recent hire, the letter should confirm that probation period has passed. Bonuses, car allowances, and other forms of remuneration should be mentioned in letter if applicable.
  • Pay Stubs- Many Lenders will also require your most recent pay-stub(s).

Hourly Employees

  • Pay Stubs- showing year-to-date income verification
  • T4’s and/or Personal Tax Returns (T-1 Generals)- 3 years to take an average
  • Notice of Assessment (NOA)- most recent to confirm no taxes owed.

Commission Income

  • T-4’s and/or Personal Tax Returns – 3 years to take an average
  • Job Letter- confirming position
  • Notice of Assessments (NOA)- optional depending on Lender


  • Financial Statements of Company- 3 years average net income used. Depending on Lenders policies, The add-back of various personal expenses run through company may or may not be allowed. (examples of allowable add-backs- Depreciation, Amortization, Capital Cost Allowance).
  • NOA’s (Personal Notice of Assessments) – 2 year history
  • Personal Tax Returns (T-1 Generals showing personal net income) – 2 year history


  • Overtime will be used if there is a proven track record. 3 years evidence (T-4’s)
  • Bonuses- Once again, a 3 year track record required
  • Part-time job- should be in place for a couple of years before using additional income
  • Tips- Generally not recognized unless declared
  • Car Allowances- Varies from lender to lender
  • Alimony and Support- Evidence that payments have been made regularly and a copy of divorce agreement is required. Investment Income – must be received continuously. This source of income is limited to interest, dividends, or some type of ongoing revenue. Capital gains, which result from the liquidation of an asset is a 1 time occurrence and can’t be used.

Do not hesitate to call or email with any additional questions.

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