frequently asked questions

Mortgage FAQ

The amount you can afford depends on your income, debts, down payment, and credit score. In Canada, lenders use two ratios: GDS (Gross Debt Service) and TDS (Total Debt Service). As a rule, your housing costs should not be more than 32% of your income. A mortgage broker in Ontario or a mortgage expert can help you calculate exactly what you qualify for.

What is a mortgage?

A mortgage is a loan from a bank, credit union, or mortgage brokers of Canada that helps you buy a home. You borrow money and agree to pay it back in installments, which include both the principal and the interest. Until it’s fully paid, the lender has a claim on your property. Working with an expert mortgage professional makes the process easier to understand.

What types of mortgages are available in Canada?

The most common types include:

— Fixed-rate mortgage – interest stays the same.
— Variable-rate mortgage – rate changes with the market.
— Hybrid mortgage – part fixed, part variable.
— Open mortgage – allows early repayment.
— Closed mortgage – offers lower rates but less flexibility.
— If you need urgent funding, an emergency mortgage loan or help from private lenders in Ontario may also be an option.

What is mortgage insurance, and when is it required?

In Canada, mortgage insurance is required if your down payment is less than 20%. It protects the lender, not the borrower. A mortgage broker in Ontario can explain whether you’ll need it and how much it will add to your payments.

How long does mortgage pre-approval take?

Pre-approval is usually quick. Many mortgage brokers of Canada can provide a decision within 24 to 48 hours, depending on your documents. A mortgage expert will guide you through the process and ensure everything is accurate.

What is a reverse mortgage and who qualifies?

A reverse mortgage allows Canadian homeowners aged 55+ to access their home equity without selling. No monthly payments are required; the loan is repaid when the home is sold. An expert mortgage broker in Ontario can check if you qualify and explain the pros and cons.

How are monthly mortgage payments calculated?

Your monthly payment depends on the loan amount, interest rate, amortization period, and payment frequency. A mortgage agent in Barrie can run the numbers for you, or you can use an Expert Mortgage calculator online for a quick estimate.

How can I pay off my mortgage faster?

Some smart ways include:

— Choosing bi-weekly payments instead of monthly. — Using prepayment privileges offered by your lender.
— Applying extra income such as bonuses or tax refunds directly to your mortgage.
— If you’re unsure of the best strategy, a mortgage broker in Ontario or private lenders in Ontario can provide customized advice.