A mortgage is a loan used to purchase a home or property. The
property itself serves as collateral for the loan. You make regular
payments (usually monthly) over a set period (typically 15-30 years)
that include both principal (the amount borrowed) and interest. In
Canada, mortgage terms are usually 1-5 years, after which you renew
your mortgage.
How much down payment do I need?
In Canada, the minimum down payment depends on the purchase price:
5% for homes up to $500,000
5% on the first $500,000 + 10% on any amount over $500,000
20% minimum for homes over $1 million
If you put down less than 20%, you'll need mortgage default
insurance (CMHC, Sagen, or Canada Guaranty).
What credit score do I need to qualify for a mortgage?
Generally, you need a minimum credit score of 600-650 to qualify for
a mortgage in Canada. However, a higher credit score (700+) will
help you secure better interest rates and loan terms. If your credit
score is lower, there are still options available - contact us to
discuss alternative solutions.
What's the difference between fixed and variable rate mortgages?
Fixed Rate: Your interest rate stays the same for
the entire term, providing predictable payments and protection from
rate increases.
Variable Rate: Your interest rate fluctuates with
the Bank of Canada's prime rate. Payments may vary, but you could
benefit if rates decrease. Variable rates typically start lower than
fixed rates.
The Application Process
What documents do I need to apply for a mortgage?
Typical documents required include:
Valid government-issued ID (driver's license or passport)
Proof of income (pay stubs, T4s, NOA for self-employed)
Bank statements (last 90 days)
Proof of down payment
Employment letter or business financials
Property details and purchase agreement
The exact documents may vary based on your situation. We'll
provide a complete checklist during your consultation.
How long does the mortgage approval process take?
Pre-approval can often be completed within 24-48 hours with all
required documents. Full mortgage approval typically takes 3-5
business days once you've made an offer on a property. However,
complex situations may take longer. Working with a mortgage agent
like MBR Mortgages can help streamline the process.
What is mortgage pre-approval and why do I need it?
Mortgage pre-approval is when a lender reviews your financial
situation and confirms how much they're willing to lend you.
Benefits include:
Know your budget before house hunting
Show sellers you're a serious buyer
Lock in an interest rate (typically for 90-120 days)
Speed up the final approval process
Negotiate with confidence
Can I get a mortgage if I'm self-employed?
Yes! Self-employed individuals can definitely qualify for mortgages.
You'll typically need to provide 2 years of Notice of Assessment
(NOA) from CRA, business financial statements, and proof of ongoing
business income. There are also alternative documentation programs
available. Contact us to discuss the best options for your
situation.
Working with MBR Mortgages
What's the difference between a mortgage agent and a bank?
A bank can only offer their own mortgage products. A mortgage
agent works with multiple lenders (banks, credit unions, trust
companies, and alternative lenders) to find you the best rate and
terms. They provide:
Access to 30+ lenders and hundreds of products
Competitive rate shopping on your behalf
Expert guidance through the entire process
Solutions for complex financial situations
Often at no cost to you (lenders pay the agent)
How much does it cost to work with a mortgage agent?
In most cases, working with MBR Mortgages costs you nothing! We're
paid by the lenders when your mortgage funds, so our services are
free for you. There's no obligation for consultations or
pre-approvals. In some specialized situations (alternative lending),
there may be an agent fee, which we'll discuss upfront.
Which provinces does MBR Mortgages serve?
MBR Mortgages serves clients in Ontario (ON), Alberta (AB), New
Brunswick (NB), British Columbia (BC), Nova Scotia (NS), and
Saskatchewan (SK). We work virtually with clients across these
provinces, making it convenient to get expert mortgage advice no
matter where you're located.
What is Breezeful Mortgage Brokerage?
Breezeful Mortgage Brokerage (License #13470) is the brokerage that
Ryan Gurgis works under as a Mortgage Agent Level 1. This
partnership ensures you receive professional service backed by a
reputable, licensed brokerage while getting personalized attention
from Ryan.
Costs & Payments
What are closing costs and how much should I budget?
Closing costs are additional expenses beyond your down payment and
mortgage amount. They typically range from 1.5% to 4% of the
purchase price and may include:
Land transfer tax
Legal fees and disbursements
Home inspection
Property appraisal
Title insurance
Home insurance
Property tax adjustments
Moving costs
Can I use my RRSP for a down payment?
Yes! First-time homebuyers can use the Home Buyers' Plan (HBP) to
withdraw up to $35,000 from their RRSP ($70,000 for couples)
tax-free for a down payment. You have 15 years to repay the amount
to your RRSP. To qualify, you must be a first-time homebuyer or
haven't owned a home in the last 4 years.
What is mortgage default insurance (CMHC)?
If your down payment is less than 20%, you're required to have
mortgage default insurance. This protects the lender if you default
on your mortgage. The insurance premium (typically 2.8% to 4% of the
mortgage amount) can be added to your mortgage or paid upfront.
Three providers offer this insurance: CMHC, Sagen, and Canada
Guaranty.
Should I make extra mortgage payments?
Making extra payments can significantly reduce your amortization
period and save thousands in interest. Most mortgages allow up to
15-20% prepayment annually without penalty. Consider factors like:
Your interest rate vs. potential investment returns
Your prepayment privileges
Your financial goals and emergency fund
Tax implications
Contact us to discuss the best strategy for your situation.
Still Have Questions?
Ryan Gurgis is here to help you navigate your mortgage journey