Once we receive your application and documents, normal turnaround time is 24 to 48 hours.
We can hold your rate for up to 120 days.
No, we only need to pull your credit score once.
We have access to banks, specialized mortgage lenders, and credit unions.
No! For most mortgages, there is no fee.
Yes! We have alternate lenders which will consider bruised credit.
Yes! We offer home equity line of credits.
Purchase plus is when your mortgage will include an extra allowance for renovations. We do those too!
The best time to refinance your mortgage depends on your individual situation and goals. Generally, it’s advantageous to refinance when interest rates have dropped significantly since you took out your original loan, or if you want to adjust the terms to better fit your financial needs. Additionally, refinancing can be beneficial if you’ve improved your credit score or increased your home’s equity. However, the optimal timing can vary for each person, so it’s important to assess your unique financial circumstances and objectives.
The primary difference between fixed and adjustable-rate mortgages lies in how their interest rates are structured. Fixed-rate mortgages offer stability with a constant interest rate throughout the life of the loan, resulting in predictable monthly payments and protection from interest rate fluctuations. In contrast, adjustable-rate mortgages (ARMs) feature interest rates that can change periodically based on market conditions. While ARMs often start with lower initial rates and payments, they carry the risk of increased payments in the future if interest rates rise. Choosing between the two depends on your financial situation, how long you plan to stay in your home, and your comfort level with potential rate fluctuations.
Yes, you can typically pay off your mortgage early, but it’s important to check your loan terms for any prepayment penalties. Many lenders allow early repayment without penalties, while others may charge fees if you pay off the loan before a certain period or pay more than a specified amount. These penalties are designed to compensate the lender for lost interest income. To avoid unexpected costs, review your mortgage agreement and consult with your lender to understand any potential penalties and determine the best strategy for early repayment.
Mortgage insurance is designed to protect the lender if you default on your loan. It’s typically required when you make a down payment of less than 20% of the home's purchase price. This insurance, often provided by the Canada Mortgage and Housing Corporation (CMHC), Genworth Financial, or Canada Guaranty, helps borrowers qualify for a mortgage with a smaller down payment by reducing the lender’s risk. The insurance premium can be added to your mortgage balance or paid upfront. If you make a down payment of 20% or more, mortgage insurance is usually not required.
Factors Affecting Your Mortgage Application
Simply put, there are three main factors that lenders consider when deciding on your mortgage application.
Your income determines your debt service ratio. That is, how much of your income goes into servicing all your debt payments. The government has set maximum allowable debt servicing ratios, so ultimately you won’t be able to get a mortgage that you won’t be able to pay for.
Income requirements are very strict, and normally only very specific documents are allowed in calculating your total income towards your application. Lenders are very specific as to what they will consider usable income versus unusable income. For example, lenders will not consider income from cash jobs, nor will they consider income from contract only positions. Also, if you just got your job you may have to wait for your probationary period to finish prior to being approved for a mortgage.
The minimum required downpayment in Canada is 5% of the total purchase price. Lenders also look at the source of your downpayment, such as if its from your savings, a gift from family, or borrowed off a line of credit. It’s not a good idea to plan to borrow your downpayment as lenders are quite strict for this type of downpayment, and extremely difficult to obtain an approval.
Your credit score is based on your current borrowings and repayment history. The lenders use your credit score to determine your creditworthiness. Essentially, how you have managed your credit in the past helps the lender determine if you should also get a mortgage.
Your credit score is based on many different factors. Your loan and credit card repayment history, your total current borrowings, and how many inquiries you have on your credit bureau all factor into your score. The higher your score, the better chances you have. The lower your score, and you may have problems getting an approval. Generally, the lenders will want to know why you have a low credit score, and how you might change that trend moving forward.
The lender will also consider what you are borrowing at the time of your application. If you are carrying a balance on a credit card or line of credit, the lender will add a payment in for those balances which will increase your debt servicing ratio. If you have a car loan or personal loan the lender also adds in those payments.
Mortgage Documentation Checklist
This is a general checklist. The first phone call with your broker will be important as they’ll help you sort through the requirements based on your unique situation.
Letter of employment
Pay Stub
2 years T4 Slips
2 years T1 General Tax Returns (Required for Self Employed borrowers)
MLS listing
Agreement of Purchase and sale
Property Disclosure statement
3-months bank statements
Gift Letter
Agreement of Purchase and sale for existing property
Existing mortgage statement for any properties you currently own
Rental leases for any rental property you own
Your last property tax bill (s)
Proof of child support payments
T-slips and tax returns for dividend or capital gains income
New Canadian & Immigrant Mortgages
While there's no strict minimum, a higher credit score generally leads to better interest rates and terms.
It may be more challenging, but some lenders offer programs for individuals with limited credit history.
The approval process can vary, but it generally takes a few weeks.
Yes, you can often qualify for a mortgage while on a work permit.
Typical documents include proof of income, identity, residency, and employment.
In some cases, a Canadian guarantor might be necessary, especially if you have limited credit history or income.
Yes, you can often qualify for a mortgage using foreign income, but you may need to provide additional documentation to provide proof of income.
Mortgage Glossary
Below we go through some basic terms which will be discussed when you are getting your mortgage through a broker.
The amortization period is just the length of time it takes you to pay back the loan. Normally this period is 25 or 30 years. The amortization will ultimately determine the size of your monthly payment.
There are several closing costs to consider when purchasing your home. These include: Property transfer tax (in most provinces), legal fees, home inspection, appraisal, and moving costs.
If you are purchasing your first home, you may qualify for an exemption from the property transfer tax. Talk to a mortgage professional to see if this applies to you.
If you are putting less than 20% down, your mortgage lender will require you to prove that you have 1.5% of the purchase price in extra savings, over and above your downpayment, to cover your closing costs.
Your Downpayment is the amount of money you are putting towards your purchase. The minimum required downpayment in Canada is 5% of the purchase price.
A fixed rate is a set interest rate that you will pay over the term of your mortgage. The rates and payments do not change.
If you have less than 20% saved for a down payment, you’ll have to get mortgage loan insurance. It protects the lender against the risk of mortgage default. In Canada, there are three providers of mortgage loan insurance: CMHC, Genworth, and Canada Guaranty.
Insurance premiums on mortgage loans are calculated as a percentage of your total loan amount. They’re based on factors including the size and source of your down payment, and also the type of loan you are getting.
In general, the smaller the down payment is, the higher the insurance premiums will be. Normally the cost of the mortgage loan insurance is added to your mortgage amount, so you don’t have to cover this cost up front.
An open mortgage lets you payoff the balance of the mortgage without a prepayment penalty. These usually have higher rates than a closed mortgage.
A closed mortgage means that you will be responsible to pay a penalty if you payoff your mortgage prior to the end of your current term. Most closed mortgages offer a prepayment allowance, meaning you can payoff a portion of your mortgage during the term without a penalty.
Open mortgages are rarely offered by lenders and usually have much higher interest rates than closed mortgages.
This is how often you make your mortgage payments. You can choose between weekly, bi-weekly, semi-monthly, or monthly.
If you payoff your mortgage prior to the term being finished, you may be responsible to pay a penalty, which is calculated differently based on the type of mortgage you have and the lender you are with.
The term of a mortgage is the period of time in which you will be committed to your lender. Terms can range anywhere from 6 months to 10 years. Once your term is complete, you can move your mortgage to another lender, or renegotiate a new rate and term with your existing lender.
A variable, or floating rate, is pegged against the Bank of Canada’s Prime Rate. When the Bank of Canada makes a rate change to their Prime rate, your rate would change too. The lenders also have discretion as to whether they will then change their own lending rate to clients.
No matter where you are in the buying process, its always the right time to setup a call with a mortgage specialist!
At Olympic Mortage, we want the best for the people around us. We care for our clients, whomever they are, wherever they’re from. Everyone gets the best of us, because that’s what we want to be putting out to the world. So go ahead, try us.
CONTACT DETAILS
Suite 103, 2311 Watkiss Way, Victoria, BC, V9B 6J6
