Licensed mortgage broker in BC, AB, SK, MB, ON & NS

403-865-8123 Innisfail, Alberta

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Mortgage Application Process

What to expect, from application to approval.

Mortgage Closing Costs

The costs to budget for on top of your down payment.

Improving Your Credit Score

Practical tips to strengthen your credit.

Default Mortgage Insurance

When it’s required and how it works.

Mortgage Life Insurance

Protecting your home and the people you love.

Mortgage Glossary

Common mortgage terms, explained A to Z.

Mortgage services

Every mortgage solution, in one place.

From cash back and renewals to construction, commercial, and reverse mortgages — explore the options available and open any product for the full details.

mortgage solutions

Our mortgage products

Find the right fit for your situation.

Cash Back Mortgages

Cash back mortgages are a type of mortgage that offers a cash incentive to homebuyers.

Mortgage Renewal

As a homeowner in Canada, you may be familiar with the process of renewing your mortgage.

Mortgage Renewal Rate

If you’re a homeowner in Canada, you’re likely familiar with the concept of mortgage renewal rates.

Second Mortgage Lender

If you’re a Canadian homeowner, you may have thought about using a second mortgage lender.

Mortgage Refinancing

As a homeowner, you likely understand the importance of finding the right mortgage.

Self Employed Mortgages

Self-employed individuals in Canada face unique challenges when it comes to securing a mortgage.

Property Investor Services

At The Place To Mortgage we offer award winning property investor services.

Limited Credit / New to Credit Mortgages

When it comes to applying for a mortgage in Canada, having a good credit history is typically a key requirement.

Bruised Credit / Bad Credit Mortgage

When it comes to buying a home, a good credit score is often seen as a prerequisite.

Second Home / Cottage Mortgages

If you’re considering buying a second home in Canada, you’re not alone.

Debt Consolidation Mortgage

If you’re struggling to manage multiple debts with high interest rates.

Financing Raw Land Purchases

Raw land purchases are restricted for the most part to a LTV (loan to value) of approximately 75% depending on zoning and purpose.

Construction (Build) Mortgages

If you’re planning to build a new home or undertake a major renovation, you may be wondering how to finance the project.

Mortgage Plus Improvements

Buying a new home is a significant investment, and sometimes, the home you purchase may not be exactly what you envisioned.

Home Equity Line of Credit

Home Equity Line of Credit (HELOC) is a low-cost borrowing option, using the equity you have in your home.

Commercial Mortgages

Commercial mortgages are an essential tool for businesses in Canada looking to purchase or refinance commercial properties.

Reverse Mortgages

Reverse Mortgages are mostly designed for Canadian homeowners aged 55 and older.

Not sure which option fits?

Book a time with Sarah and she’ll walk you through what makes sense for your goals.

Get in touch.

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#2 4908 51st Ave. Innisfail, Alberta

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403-865-8123

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Mortgage services

Cash Back Mortgages

What are Cash Back Mortgages?

Cash back mortgages are a type of mortgage that offers a cash incentive to homebuyers. Unlike traditional mortgages, which require a down payment and other upfront costs, cash back mortgages can help reduce these costs and provide additional cash for homebuyers to use as they see fit. With a cash back mortgage, you can receive a percentage of the mortgage amount in cash, which can be used for a variety of purposes, such as closing costs, renovations, or other expenses. The cash back is usually paid out after the mortgage closes and can be used for any purpose the homebuyer chooses but there may be conditions associated with the cash back, such as a minimum mortgage amount or a requirement to keep the mortgage for a certain period of time.

Benefits of a Cash Back Mortgage

There are several benefits to consider when it comes to cash back mortgages, including:

Cash back amount

The amount of cash back offered can vary between lenders, but typically ranges from 1% to 5% of the mortgage amount. This may provide additional funds that may help offset certain upfront costs or provide additional flexibility for eligible borrowers.

Potential savings

By receiving cash back, homebuyers can potentially save money on upfront costs, such as closing costs and legal fees. This may be beneficial for some first-time homebuyers who may not have the funds for a large down payment or other upfront costs.

Flexibility

Cash back mortgages offer flexibility in how the money is used. Homebuyers can use the cash back for any purpose, such as renovations, furniture, or other expenses related to the home.

Other benefits

Cash back mortgages may also offer other benefits, such as the ability to pay off the mortgage faster or the option to skip a payment. However, it’s important to carefully review the terms and conditions of the mortgage to understand any restrictions or fees associated with these benefits.

Drawbacks of a Cash Back Mortgage

While cash back mortgages offer several benefits, there are also some drawbacks to consider, including:

Higher interest rates

Cash back mortgages may come with higher interest rates compared to traditional mortgages. This can result in higher monthly payments and more interest paid over the life of the mortgage.

Limited options

Cash back mortgages may have limited options in terms of mortgage terms and conditions. This can make it harder to find a mortgage that fits your specific needs.

Restrictions

Cash back mortgages may come with restrictions, such as a requirement to keep the mortgage for a certain period of time or a minimum mortgage amount. It’s important to carefully review the terms and conditions of the mortgage to understand any restrictions or fees associated with the cash back offer.

Who is Eligible for a Cash Back Mortgage?

To be eligible for a cash back mortgage, you’ll need to meet certain criteria, such as:

Credit score requirements

Most lenders require a good credit score to qualify for a cash back mortgage. The specific credit score required can vary between lenders.

Income requirements

Lenders may also require a stable income to qualify for a cash back mortgage. This can include proof of employment or income statements.

Other eligibility factors

Other factors that may be considered when applying for a cash back mortgage include the size of the down payment, the value of the property, and the type of property. When applying for a cash back mortgage, it’s important to carefully review the terms and conditions of the mortgage and understand any fees or restrictions associated with the cash back offer. Cash back mortgages can be a helpful option for homebuyers who need assistance with upfront costs or want extra cash for other expenses. By understanding the benefits, drawbacks, eligibility requirements, and application process, you can make an informed decision about whether a cash back mortgage is right for you. If you’re interested in exploring your mortgage options further, our experienced mortgage brokers are located across BC, Alberta, Saskatchewan, Manitoba, Ontario, and Nova Scotia. Apply in minutes, click the button below!

Cash back mortgage availability, amounts, rates, and qualification criteria vary by lender and borrower profile. Terms and conditions apply.

Mortgage services

Mortgage Renewal

As a homeowner in Canada, you may be familiar with the process of renewing your mortgage. Mortgage renewals occur when your current mortgage term ends, and you have the option to renew your mortgage with your current lender or switch to a new lender. Renewing your mortgage is an important financial decision that can have a significant impact on your long-term financial goals.

What are Mortgage Renewals and Why are They Important?

Mortgage renewals occur when your current mortgage term ends, and you have the option to renew your mortgage with your current lender or switch to a new lender. Mortgage renewals are important because they allow you to renegotiate the terms of your mortgage, including the interest rate, payment schedule, and length of the mortgage term. This can have a significant impact on your monthly mortgage payments and your long-term financial goals.

Overview of the Mortgage Renewal Process

The mortgage renewal process typically begins four months before your current mortgage term ends. Your current lender will send you a renewal notice outlining the terms of your new mortgage agreement. You have the option to accept the renewal offer or negotiate the terms with your lender or a mortgage broker. A mortgage broker may help you find a mortgage product that suits your needs and financial goals. They will also negotiate with lenders on your behalf to help identify competitive rates and mortgage options available through participating lenders. Once you have agreed on the terms of the new mortgage agreement, you will sign the contract and begin making payments under the new terms.

Mortgage Renewal Options in Canada

When renewing your mortgage, there are several options available, including fixed or variable rates. Fixed rates provide a set interest rate for the duration of the mortgage term, while variable rates fluctuate based on market conditions. Here are some pros and cons of each option:

Fixed Rates

Pros:

Predictable monthly payments

Protection against rising interest rates

Easier to budget for long-term financial goals

Cons:

Typically higher interest rates than variable rates

Limited flexibility to take advantage of lower rates

Variable Rates

Pros:

Variable rates may initially be lower than some fixed-rate options

May offer interest savings in certain market conditions

More flexibility to take advantage of lower rates

Cons:

Monthly payments can fluctuate based on market conditions

Risk of higher payments if interest rates rise

When choosing between fixed or variable rates, it’s important to consider your long-term financial goals and risk tolerance. A mortgage broker can help you evaluate your options and choose the best mortgage product for your specific needs.

Negotiating Competitive Mortgage Renewal Rates

Your broker has access to multiple lenders and will shop around to compare mortgage products and rates from participating lenders.

Potential Consequences of Not Renewing Your Mortgage or Renewing with a Different Lender

Not renewing your mortgage or renewing with a different lender can have potential consequences, including:

Penalties for breaking your mortgage agreement

Higher interest rates and monthly payments

Limited options for refinancing or accessing home equity

It’s important to carefully consider your options and consult with a mortgage broker before making any decisions about renewing your mortgage.

Common Questions and Concerns

Here are some common questions and concerns that homeowners may have about mortgage renewals:

How do I calculate my mortgage payments?

Your mortgage payments are based on the interest rate, mortgage amount, and length of the mortgage term. You can use an online mortgage calculator to estimate your monthly payments.

What are the penalties for breaking a mortgage agreement?

Penalties for breaking a mortgage agreement can vary depending on the lender and the terms of the mortgage agreement. It’s important to review your mortgage agreement carefully and consult with a mortgage broker before making any decisions.

Can I renew my mortgage early?

Yes, you can renew your mortgage early. However, there may be penalties for breaking your mortgage agreement. It’s important to review your mortgage agreement carefully and consult with a mortgage broker before making any decisions. Renewing your mortgage is an important financial decision that can have a significant impact on your long-term financial goals. By working with a mortgage broker, you can find the best mortgage product for your specific needs and negotiate the best rates and terms available. It’s important to carefully consider your options and consult with a mortgage broker before making any decisions about renewing your mortgage.

Mortgage renewal options, rates, terms, and qualification criteria vary by lender and borrower profile. Approval is subject to lender review and qualification.

Mortgage services

Mortgage Renewal Rate

Mortgage Renewal Rates in Canada

If you’re a homeowner in Canada, you’re likely familiar with the concept of mortgage renewal rates. When your mortgage term comes to an end, you’ll need to renew your mortgage at a new interest rate. Most of us spend a lot of time and effort shopping for an initial mortgage, the same is generally not the case when looking at home mortgage renewal rate. By omitting proper consideration at the time of renewal, you could be losing thousands of dollars every year by not adjusting your home mortgage.

STAT: Nearly 60% of homeowners simply sign and send back the renewal that is first offered to them by their lender, without ever shopping around for a more favorable interest rate. At The Place to Mortgage, we work with a range of lender partners to help clients compare renewal options.

What Are Mortgage Renewal Rates? Mortgage renewal rates are the interest rates available when your current mortgage term expires and you renew your mortgage. When you first take out a mortgage, you’ll agree to a specific term, such as five years. At the end of that term, you’ll need to renew your mortgage at a new interest rate. This rate can be higher or lower than your current rate, depending on market conditions.

How Are Mortgage Renewal Rates Determined?

Mortgage renewal rates are influenced by a variety of factors, including the Bank of Canada’s overnight lending rate, the bond market, and the lender’s own cost of funds. When the Bank of Canada raises or lowers its overnight lending rate, this can impact mortgage rates. Similarly, when bond yields rise or fall, this can also affect mortgage rates. Lenders also consider their own cost of funds when setting renewal rates.

What Can You Do to Ensure You Get the Competitive Rate Options?

Start Early: Don’t wait until the last minute to renew your mortgage. Start shopping around for rates several months before your current term ends.
Shop Around: It can be helpful to compare renewal options instead of automatically accepting the first offer provided. Shop around and compare rates from different lenders to ensure that you’re reviewing available options.
Negotiate: Don’t be afraid to negotiate with your lender. If you’ve been a good customer and have a good credit score, you may be able to negotiate a better rate.
Consider a Mortgage Broker: A mortgage broker can help you shop around to compare available rates and financing options on your behalf.
Consider Your Options: When renewing your mortgage, you may have the option to switch to a different type of mortgage, such as a fixed or variable rate. Consider your options carefully and choose the one that best suits your needs and budget.

What Happens if You Don’t Renew Your Mortgage?

If you don’t renew your mortgage, your lender may consider your mortgage to be in default. This can result in penalties, additional fees, or an automatic renewal into a less competitive rate. It’s important to renew your mortgage on time and to ensure that you’re getting the best rate possible. Mortgage renewal rates are an important consideration for homeowners. These rates are influenced by a variety of factors, including market conditions and the lender’s own cost of funds. To ensure that you get the best rate possible, start early, shop around, and consider your options carefully. Working with a mortgage broker is a great way to find the best deal. By taking these steps, you can renew your mortgage with confidence and help you review suitable renewal options for your situation. If your mortgage is less than four months away, please contact us immediately to get started on your renewal.

Mortgage services

Mortgage Refinancing

As a homeowner, you likely understand the importance of finding the right mortgage. But what happens when your financial situation changes and your current mortgage no longer fits your needs? This is where mortgage refinancing comes in. Refinancing your mortgage can help you reduce your monthly payments, consolidate debt, and access equity.

Benefits of Mortgage Refinancing

One of the most significant benefits of refinancing your mortgage is that it can help you reduce your monthly payments. This can be achieved by obtaining a lower interest rate, extending the term of your mortgage, or both. For example, if you have a 30-year mortgage with a 6% interest rate, refinancing to a 20 year mortgage with a 4% interest rate could save you thousands of dollars over the life of your loan. Another benefit of refinancing is the ability to consolidate debt. If you have high-interest credit card debt or other loans, you can use the equity in your home to pay off those debts and consolidate them into one monthly payment. This can help you save money on interest and simplify your finances. Finally, refinancing can also help you access equity in your home. If your home has increased in value since you purchased it, you can refinance to take out a larger loan and use the extra cash for home improvements, education, or other expenses.

How to Refinance Your Mortgage

To refinance your mortgage, you will need to meet certain eligibility requirements, such as having a good credit score and a stable income. You will also need to provide documentation, such as tax returns, pay stubs, and bank statements, to prove your financial stability. The process of refinancing involves several steps, including researching lenders, comparing interest rates and fees, and submitting an application. It’s important to work with a mortgage professional who can guide you through the process and help you find the best refinancing option for your needs.

Types of Refinancing Options

There are several types of mortgage refinancing options available in Canada. The most common type is a standard refinance, which involves replacing your current mortgage with a new one at a lower interest rate or with different terms. Another option is a home equity loan, which allows you to borrow against the equity in your home. This type of refinancing is typically used for debt-consolidation major expenses, such as consumer debt, home renovations or education. A third option is a home equity line of credit (HELOC), which is a revolving line of credit that allows you to borrow against your home equity as needed. HELOCs can be useful for ongoing expenses, such as home repairs or medical bills.

Risks and Considerations

While mortgage refinancing can offer many benefits, there are also risks and downsides to consider. For example, refinancing can result in higher interest rates, fees, and penalties. It’s important to carefully review the terms of any refinancing option and calculate the total cost of the loan over its lifetime. Another risk to consider is the potential impact on your credit score. Applying for multiple refinancing options or taking on too much debt can negatively impact your credit score. Finally, it’s important to consider the long-term implications of refinancing. Extending the term of your mortgage, for example, can lower your monthly payments but also increase the total cost of the loan over time. Refinancing can help when your mortgage no longer fits your current financial goals. By understanding the benefits, processes, and different types of refinancing options available, you can make an informed decision about whether or not to refinance. Remember to work with a mortgage professional who can guide you through the process and help you find the best refinancing option for your needs. Contact one of our knowledgeable brokers at The Place To Mortgage to explore your refinancing options and take control of your financial future.

Mortgage services

Self Employed Mortgages

Self-employed individuals in Canada face unique challenges when it comes to securing a mortgage. Unlike traditional employees, they often have fluctuating income and may not have a steady employment history.

Eligibility Criteria

To qualify for a self-employed mortgage in Canada, borrowers must meet several eligibility criteria. These include a good credit score, proof of business ownership, and income verification. Lenders will also look at debt-to-income ratio and the length of time the borrower has been self-employed.

Credit Score:

A good credit score is essential when applying for a mortgage. Lenders will look at the borrower’s credit history to determine their ability to make payments on time. A score of 680 or higher is generally required for a self-employed mortgage.

Down Payment:

Self-employed individuals may need to put down a larger down payment than traditional employees. A down payment of 20% or more is recommended to avoid having to pay for mortgage default insurance but not necessary, as there are some insured mortgage products available for you.

Income Verification:

Self-employed borrowers must provide proof of income to lenders. This can be challenging as income may vary from month to month or year to year. Lenders may require several years of tax returns and financial statements to assess income stability.

Documentation Requirements

Self-employed borrowers will need to provide detailed documentation to lenders to prove their income and business ownership. This may include tax returns, business financial statements, bank statements and detailed information about the operations of the business. It is essential to keep accurate and up-to-date financial records to make the process smoother.

Tax Returns:

Lenders will require several years of personal and business income tax returns to verify income stability. The most recent Notice of Assessment (NOA) will also be required.

Financial Statements:

Self-employed borrowers will need to provide financial statements, including balance sheets and income statements, to show the financial health of their business.

Business Licenses:

Proof of business ownership, such as a business license or articles of incorporation, will be required.

Tips for Successful Application

Self-employed individuals looking to apply for a mortgage can take several steps to improve their chances of being approved.

Improve Credit Score:

Improving credit score is crucial when applying for a mortgage. This can be done by paying bills on time, reducing debt, and keeping credit card balances low.

Save for a Down Payment:

Self-employed borrowers may need to put down a larger down payment than traditional employees. Saving for a down payment of 20% or more is recommended to avoid having to pay for mortgage default insurance.

Reduce Debt:

Lenders will look at debt-to-income ratio when assessing eligibility for a mortgage. Reducing debt, such as credit card balances, can improve the chances of being approved.

Alternative Mortgage Options

Self-employed individuals may have difficulty meeting the eligibility criteria for a traditional mortgage. However, there are alternative mortgage options available.

Stated Income Mortgages:

Stated income mortgages allow borrowers to state their income without providing detailed documentation. However, interest rates may be higher, and down payments may be larger.

Asset-Based Mortgages:

Asset-based mortgages allow borrowers to use assets, such as investments or real estate, as collateral for a mortgage. This can be a good option for self-employed individuals with significant assets but limited income. Securing a self-employed mortgage in Canada can be challenging, but it is not impossible. By understanding the eligibility criteria, gathering the necessary documentation, and seeking professional guidance, self-employed individuals can achieve their dream of homeownership. It is essential to be prepared and work with a mortgage broker who understands the unique needs of self-employed borrowers. With the right approach, self-employed individuals can successfully apply for a mortgage in Canada.

Mortgage services

Limited Credit / New to Credit Mortgages

Limited Credit/New-to Credit Mortgages

When it comes to applying for a mortgage in Canada, having a good credit history is typically a key requirement. However, not everyone has a long credit history or an established credit score. If you’re a first-time homebuyer or have a limited credit history, don’t worry – there are still mortgage options available to you.

What is a Limited Credit Mortgage?

A Limited Credit Mortgage is a type of mortgage designed for borrowers who have a limited credit history or no credit history at all. With this type of mortgage, lenders look at other factors, such as employment history, income, and debt-to-income ratio, to determine your creditworthiness. While Limited Credit Mortgages typically have higher interest rates than traditional mortgages, they can be a good option for borrowers who are just starting to build their credit history. Benefits of Limited Credit Mortgages:

Can help borrowers with limited credit history qualify for a mortgage.

May have lower down payment requirements than traditional mortgages.

Can help borrowers establish a credit history and improve their credit score over time.

Drawbacks of Limited Credit Mortgages:

Typically have higher interest rates than traditional mortgages.

May have stricter eligibility criteria than traditional mortgages.

May require additional documentation and verification of income and employment history.

When is a Limited Credit Mortgage a good option?

If you’re a first-time homebuyer with limited credit history.

If you’re a recent immigrant to Canada and don’t have an established credit history.

If you’re self-employed and don’t have a traditional employment history.

What is a New to Credit Mortgage?

A New to Credit Mortgage is a type of mortgage designed for borrowers who have no credit history at all. With this type of mortgage, lenders look at other factors, such as employment history, income, and rental payment history, to determine your credit worthiness. While New to Credit Mortgages typically have higher interest rates than traditional mortgages, they can be a good option for borrowers who are just starting to establish their credit history. Benefits of New to Credit Mortgages:

Can help borrowers with no credit history qualify for a mortgage.

May have lower down payment requirements than traditional mortgages.

Can help borrowers establish a credit history and improve their credit score over time.

Drawbacks of New to Credit Mortgages:

Typically have higher interest rates than traditional mortgages.

May have stricter eligibility criteria than traditional mortgages.

May require additional documentation and verification of income and employment history.

When is a New to Credit Mortgage a good option?

If you’re a recent graduate or young professional with no credit history.

If you’re a recent immigrant to Canada and don’t have any credit history.

If you’ve always paid rent on time and want to establish a credit history.

How to Qualify for Limited Credit/New to Credit Mortgages

To qualify for a Limited Credit Mortgage or New to to-credit mortgage, you’ll typically need to meet certain eligibility criteria, such as:

A minimum down payment of 5%.

A minimum credit score of 680 (for some lenders).

A stable employment history and income.

A low debt-to-income ratio.

Proof of rental payment history (for New to Credit Mortgages).

To improve your chances of qualifying for these types of mortgages, you can:

Save up for a larger down payment.

Pay your bills on time and in full.

Avoid applying for credit too frequently.

Work with a qualified mortgage professional who can help you navigate the application process.

If you have a limited credit history or no credit history at all, you may still be able to qualify for a mortgage in Canada. Limited Credit Mortgages and New to Credit Mortgages are two options to consider, but they do come with higher interest rates and stricter eligibility criteria. To learn more about these types of mortgages and whether they’re right for you, talk to a qualified mortgage professional today.

Mortgage services

Bruised Credit / Bad Credit Mortgage

Bruised or Bad Credit Mortgage

When it comes to buying a home, a good credit score is often seen as a prerequisite. However, not everyone has a perfect credit score, and this can make it difficult to secure a mortgage. Fortunately, bruised credit and bad credit mortgages exist to help those with less than perfect credit scores achieve their dream of homeownership.

Bad credit is caused by a variety of factors like bankruptcy, missed payments, and collections. Bankruptcy is a legal process that allows individuals to discharge their debts and start fresh, but it can have a significant impact on credit scores. Missed payments, whether on credit cards, loans, or other bills, can also lower credit scores. Collections occur when a creditor or debt collector takes action to recover a debt that is past due. All these factors can contribute to a lower score, making it difficult to secure a traditional mortgage.

Qualifying for a Bruised or Bad Credit Mortgage

Qualifying for a bad credit mortgage can be challenging, but not impossible. Lenders will typically look at several factors when considering an application. They consider credit score, employment history, and debt-to-income ratio. While a low credit score may be a red flag to lenders, other factors such as a stable employment history and a low debt-to-income ratio can help offset this. It is important to note that lenders may require a higher down payment or charge a higher interest rate for bad credit mortgages to offset the increased risk.

There are several types of bad credit mortgages available to those with less-than-perfect credit scores. High-ratio mortgages, for example, allow borrowers to put down a smaller down payment, but require mortgage insurance. Subprime mortgages are designed for borrowers with poor credit scores and often come with higher interest rates and fees. Private lenders offer private mortgages, which often feature more flexible eligibility criteria and repayment terms. It is important to carefully consider the pros and cons of each type of bad credit mortgage before you make a decision.

How to Improve Your Credit

Improving your credit score is key to qualifying for a bad credit mortgage and achieving financial stability. Some tips for improving credit include paying your bills on time, reducing your debt, and disputing errors on credit reports. It is also important to avoid opening new lines of credit or making large purchases while trying to improve credit scores. Working with a credit counselor or financial advisor can also help develop a plan to improve credit and achieve financial goals.

While a good credit score is often a requirement to qualify for a mortgage, bad credit mortgages exist to help those with less than perfect credit scores achieve their dream of homeownership. By understanding the causes of bad credit, the criteria for qualifying for a bad credit mortgage, the types of bad credit mortgages available, and tips for improving credit, you can take action to improve your credit scores and explore your mortgage options. With the right mindset and a plan in place, homeownership is within reach for everyone.

The journey to home ownership is not always an easy one. It’s important to know that you have options. We are here to help you achieve your financial goals and get you into a home you love. Reach out to one of our brokers today.

Mortgage services

Second Home / Cottage Mortgages

If you’re considering buying a second home in Canada, you’re not alone. According to the Canadian Real Estate Association, sales of recreational properties increased by almost 20% in 2020, as more Canadians sought refuge from the pandemic in cottages, cabins, and other vacation homes. But before you dive into the world of second home ownership, it’s important to understand the ins and outs of second home mortgages in Canada.

What is a Second Home Mortgage?

A second home mortgage is a type of mortgage that allows you to purchase a second property, such as a vacation home. Unlike a primary residence mortgage, which is used to purchase your main home, a second home mortgage is used to finance a secondary property. Second home mortgages are becoming increasingly popular in Canada, as more Canadians seek to diversify their real estate portfolios.

Eligibility Criteria for Second Home Mortgages

To be eligible for a second home mortgage in Canada, you’ll need to meet certain criteria. These may include:

A good credit score: Lenders will want to see that you have a good credit history and are able to manage debt responsibly.
A stable income: You’ll need to demonstrate that you have a stable source of income to repay the mortgage.
A down payment: You’ll need to make a down payment of at least 5-20% of the purchase price, depending on the lender’s requirements.
Proof of ownership: If you’re using the property as a vacation home, you’ll need to provide proof of ownership of your primary residence.

Documents Required for Second Home Mortgage Applications

When applying for a second home mortgage, you’ll need to provide certain documents to the lender. These may include:

Proof of income: This may include pay stubs, tax returns, and other documents that demonstrate your income.
Proof of assets: This may include bank statements, investment statements, and other documents that demonstrate your assets.
Proof of identity: This may include a driver’s license, passport, or other government-issued ID.
Property information: This may include information about the property you’re purchasing, such as its location, purchase price, and intended use.

Types of Second Home Mortgages in Canada

There are several types of second home mortgages available in Canada, each with its own interest rates, repayment terms, and other features. These may include:

Fixed-rate mortgages: These mortgages offer a fixed interest rate for the term of the mortgage, which can be anywhere from 1-10 years.
Variable-rate mortgages: These mortgages offer an interest rate that fluctuates with the prime rate, which can be more or less advantageous depending on market conditions.
Home equity lines of credit (HELOCs): These are revolving lines of credit that allow you to borrow against the equity in your home, which can be used to finance a second property.
Refinancing: This involves refinancing your existing mortgage and taking out additional funds to finance a second property.

Comparing Second Home Mortgages with Other Financing Options

While a second home mortgage may be the most common way to finance a second property, there are other options available, such as personal loans and lines of credit. However, these options may come with higher interest rates and shorter repayment terms than a second home mortgage. It’s important to compare the different options and choose the one that best suits your needs and budget.

Risks and Benefits of Investing in a Second Property

Investing in a second property can offer many benefits, such as rental income, potential capital gains, and a vacation home for personal use. However, it also comes with risks, such as vacancy rates, maintenance costs, and the potential for market fluctuations. It’s important to do your research and calculate the potential return on investment before making a purchase.

Tax Implications of Owning a Second Home

Owning a second home can have tax implications, such as capital gains taxes, property taxes, and rental income taxes. However, there are also tax deductions and credits available for second homeowners, such as mortgage interest deductions and property tax credits. It’s important to consult with a tax professional to understand your specific tax obligations and how to minimize tax liabilities.

Frequently Asked Questions about Second Home Mortgages in Canada

Can I refinance my second home mortgage? Yes, you can refinance your second home mortgage to take advantage of lower interest rates or to change the repayment terms.
Are there prepayment penalties for second home mortgages? This will depend on the lender and the specific mortgage product. Some lenders may charge prepayment penalties if you pay off your mortgage early.
Can I use a second home mortgage to purchase a rental property? Yes, you can use a second home mortgage to purchase a rental property, as long as you meet the eligibility criteria and provide proof of rental income.

A second home mortgage can offer many benefits for Canadian homeowners, but it’s important to understand the eligibility criteria, application process, and tax implications before making a purchase. By doing your research, comparing different options, and working with a mortgage broker, you can finance your dream vacation home or rental property with confidence.

Mortgage services

Debt Consolidation Mortgage

If you’re struggling to manage multiple debts with high interest rates, a debt consolidation mortgage may be a suitable option to simplify your finances

What are Debt Consolidation Mortgages and How Do They Work?

Debt consolidation mortgages are a type of mortgage that allows you to consolidate multiple debts into one loan. This means that you can pay off your high-interest debts, such as credit cards and personal loans, with a single mortgage that has a lower interest rate. Debt consolidation mortgages work by using your home equity as collateral to secure the loan. Advantages of Debt Consolidation Mortgages:

Lower interest rates and monthly payments

Simplified finances with one monthly payment

Improved credit score with regular payments

Disadvantages of Debt Consolidation Mortgages:

Longer repayment terms and higher total interest paid

Requires collateral, which is typically your home

May not be suitable for individuals with poor credit or insufficient home equity

Types of Debt Consolidation Mortgages in Canada and Qualification Criteria

In Canada, there are two types of debt consolidation mortgages: a traditional mortgage refinance and a home equity line of credit (HELOC). To qualify for a traditional mortgage refinance, you must have at least 20% equity in your home and meet the lender’s credit score and income requirements. HELOCs require at least 35% equity in your home and may have additional requirements such as a minimum credit score and income.

Pros and Cons of Debt Consolidation Mortgages

Pros:

Lower interest rates and monthly payments

Simplified finances with one monthly payment

Improved credit score with regular payments

Cons:

Longer repayment terms and higher total interest paid

Requires collateral, which is typically your home

May impact your credit score in the short term

May have additional fees such as appraisal and legal fees

Scenarios Where Debt Consolidation Mortgages are Suitable

Debt consolidation mortgages may be a suitable option if you have multiple high-interest debts, are struggling to keep up with payments, and have sufficient home equity. It’s important to note that debt consolidation mortgages are not a quick fix and require financial planning and budgeting to ensure long-term success.

Tips for Managing Debt Effectively

In addition to debt consolidation mortgages, there are several ways to manage debt effectively, such as creating a debt repayment plan, reducing expenses, and seeking professional advice. It’s important to prioritize debt repayment and make regular payments on time to avoid late fees and negative impacts on your credit score.

Get started today!

If you’re considering a debt consolidation mortgage or need assistance with managing your debts, contact one of our brokers at The Place To Mortgage today for expert advice and guidance. Our experienced team can help you explore your options and find the best solution for your financial needs.

Mortgage services

Construction (Build) Mortgages

If you’re planning to build a new home or undertake a major renovation, you may be wondering how to finance the project. That’s where construction (build) mortgages come in. Construction (Build) mortgages allow you to borrow money to finance the construction or renovation of a property.

What is a Construction (Build) Mortgage?

A construction mortgage finances the construction or renovation of a property. Unlike a traditional mortgage, a construction mortgage finances the building of a home or the renovation of an existing one.

Other banks and lenders offer these mortgages, which work differently from traditional mortgages. With a traditional mortgage, you receive the full amount of the loan upfront and make payments over time. With a construction mortgage, the lender releases the funds for a construction mortgage in stages as the construction project progresses.

How Do Construction (Build) Mortgages Work?

Lenders release construction mortgages in stages, with each stage representing a different phase of the project. Typically, a construction mortgage is released in three to five stages, depending on the lender and the project by way of “draws”.

The first stage involves providing the initial advance to cover the purchase of land or the initial construction costs.

The framing stage is the second stage, completes the property’s framework. The third stage is the lock-up stage, the property becomes fully enclosed and secure. In the fourth stage, the interior stage, installers add the interior finishes and fixtures. In the final stage, the completion stage, the property becomes fully finished and ready for occupancy. At each stage, the lender will send an appraiser to assess the progress of the construction project. If the appraiser determines that the work meets the agreed-upon plans, the lender will release the funds for that stage of the project.

What Do You Need to Qualify for a Construction (Build) Mortgage?

To qualify for a construction mortgage, you need to provide the lender with detailed plans and cost estimates. You will also need to provide proof of income and a down payment. The amount of the down payment will vary depending on the lender and the project. Typically the down payment is between 10% and 20% of the total cost of the project.

You will also need to provide a contract outlining the scope of the project, payment schedule and the timeline for completion. The lender will review the contract ensuring it is reasonable and the project will finish on time and within budget.

Construction mortgages typically have higher interest rates than traditional mortgages as lenders consider them riskier, seeking compensation for the risk.

Tips for Applying for a Construction (Build) Mortgage

To increase your chances of getting approved for a construction mortgage and ensure a smooth process, consider these steps:

Work with an experienced builder Choosing an experienced builder with a good reputation can help ensure the project is completed on time and on budget. It can also help reassure the lender that the project is a good investment.
Get detailed plans and cost estimates Providing detailed plans and cost estimates for the project can help the lender understand the scope of the project and assess the risk.
Be realistic about the timeline Construction projects can be unpredictable, so it’s important to be realistic about the timeline for completion. If the project takes longer than expected, it can delay the release of funds and increase the cost of the project.
Have a contingency plan It’s always a good idea to have a contingency plan in case something goes wrong with the project. This can include having extra funds set aside or having a backup plan for financing.
Work with a mortgage broker: A mortgage broker can help you navigate the process of applying for a construction mortgage and find the best lender and terms for your needs.

A construction mortgage can be a great option for financing a new home or renovation project. By understanding how construction mortgages work and what you need to qualify, you can make an informed decision and ensure that your project is a success. Remember to work with an experienced builder, provide detailed plans and cost estimates, be realistic about the timeline, have a contingency plan, and consider working with a mortgage broker to find the best lender and terms for your needs.

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Mortgage Plus Improvements

Buying a new home is a significant investment, and sometimes, the home you purchase may not be exactly what you envisioned. However, with Mortgage Plus Improvements, you can buy a home and make the necessary renovations to turn it into your dream home. This mortgage option is an excellent way to finance the purchase of a home and the necessary renovations, all in one convenient mortgage.

The Concept of Mortgage Plus Improvements

Mortgage Plus Improvements is a mortgage option that allows you to borrow additional funds to finance the purchase of a home and the necessary renovations. This mortgage option differs from a traditional mortgage because it includes the cost of renovations in the mortgage. The lender will provide you with the funds to purchase the home and the additional funds to complete the renovations. The renovations must be completed within a specified timeline, typically 90 days, and must add value to the home. For example, let’s say you find a home that you love, but it requires some renovations to make it your dream home. You can apply for a Mortgage Plus Improvements and borrow the funds needed to purchase the home and complete the necessary renovations. The lender will release the funds for the renovations in stages as the work is completed. This mortgage option is an excellent way to finance the purchase of a home and the necessary renovations, all in one convenient mortgage.

Advantages of Mortgage Plus Improvements

One of the main advantages is that it allows you to purchase a home and make the necessary renovations without having to take out a separate loan. This mortgage option can save you money in the long run because you will only have to pay one set of closing costs, and the interest rate may be lower than if you were to take out a separate loan for the renovations. Another advantage is that it allows you to customize your home to your liking. You can make the necessary renovations to create your dream home without having to worry about the additional costs. The renovations may also increase the value of your home, which can be beneficial if you decide to sell your home in the future.

How to Get a Mortgage Plus Improvements

To qualify, you must meet the eligibility criteria set by the lender. The eligibility criteria may vary depending on the lender, but typically, you must have a good credit score, a stable income, and a down payment of at least 5% of the purchase price of the home. You must also provide the lender with a detailed renovation plan and cost estimate. To apply, you must first find a lender that offers this mortgage option. You can work with a mortgage broker to help you find a lender that offers Mortgage Plus Improvements. Once you have found a lender, you must provide them with the necessary documents, such as proof of income, credit score, and a down payment. You must also provide them with a detailed renovation plan and cost estimate.

Tips for Maximizing the Benefits of Mortgage Plus Improvements

Choose the Right Contractor: Choosing the right contractor is crucial when it comes to Mortgage Plus Improvements. You want to work with a contractor who has experience with this type of mortgage and can complete the renovations within the specified timeline and budget.
Prioritize the Renovations: When planning your renovations, prioritize the renovations that will add the most value to your home. This will ensure that you get the most out of your investment.
Work Within Your Budget: It’s essential to work within your budget when completing renovations with Mortgage Plus Improvements. You don’t want to overspend and end up with a mortgage that you can’t afford.
Apply for the Right Amount: When applying, make sure you apply for the right amount. You want to ensure that you have enough funds to complete the necessary renovations, but you don’t want to borrow more than you need.

Mortgage Plus Improvements is an excellent mortgage option for homeowners who want to purchase a home and make the necessary renovations to create their dream home. This mortgage option allows you to finance the purchase of a home and the necessary renovations, all in one convenient mortgage. To get the most out of this mortgage product, it’s essential to choose the right contractor, prioritize the renovations, work within your budget, and apply for the right amount. If you’re interested, get in touch with The Place To Mortgage to learn more about this mortgage option.

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Home Equity Line of Credit

Home Equity Line of Credit (HELOC) is a low-cost borrowing option, using the equity you have in your home. With a HELOC, you can access to up to 65% of the value of your home. Unlike a mortgage, as your balance is paid down it is re-accessible via transfer, check, or bank withdrawal. At an affordable borrowing rate, it is an option for providing readily available access to your equity when you need it. It can be a fabulous source of funds to redo your kitchen, finish your basement, fund your dream vacation, buy that investment property, consolidate your debts, or can be a saving grace when times get tough.

What is a Home Equity Line of Credit?

A Home Equity Line of Credit is a type of loan that allows you to borrow against the equity in your home. It works like a credit card, where you have a credit limit and can borrow and repay funds as needed. Unlike a Home Equity Loan, which provides a lump sum of money upfront, a HELOC gives you ongoing access to funds for a set period of time.

Advantages

There are several advantages to having a HELOC, including:

Lower interest rates than credit cards and personal loans

Flexible payment options, including interest-only payments

Ongoing access to funds for a set period of time

Tax-deductible interest payments in some cases

HELOCs can be used for a variety of purposes, such as home renovations, debt consolidation, or emergency funds. They offer a convenient and affordable way to access funds when you need them.

How to Qualify

To qualify for a HELOC, you must have equity in your home and a good credit score. The amount of equity you have will determine how much you can borrow, and your credit score will impact the interest rate you receive. It’s important to improve your credit score and increase your home equity before applying for a HELOC to increase your chances of approval and receive a favourable interest rate.

Choosing the Right Home Equity Line of Credit

When choosing a HELOC, it’s important to compare different options and find a reputable lender. Factors to consider include interest rates, fees, repayment terms, and customer reviews. Some popular HELOC providers in Canada include TD, RBC, and BMO. In summary, a Home Equity Line of Credit is a flexible and affordable way to access funds for a variety of purposes. With lower interest rates and flexible payment options, HELOCs are an important financial tool for homeowners. To learn more about HELOCs or apply for one, contact one of our amazing brokers today.

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Commercial Mortgages

Commercial mortgages are an essential tool for businesses in Canada looking to purchase or refinance commercial properties. Whether you’re a small business owner or a large corporation, understanding the ins and outs of commercial mortgages is crucial for your success.

What is a Commercial Mortgage?

A commercial mortgage is a loan used to purchase or refinance commercial properties, such as office buildings, warehouses, retail spaces, and apartment buildings. Unlike residential mortgages, commercial mortgages are typically used by businesses rather than individuals. They are designed to help businesses acquire the real estate they need to operate and grow.

Eligibility Criteria

To be eligible for a commercial mortgage, lenders typically consider factors such as the borrower’s credit score, financial statements, business plan, and property value. Lenders may also require a down payment of 20% or more, depending on the property’s type and location. In addition, the borrower’s debt-to-income ratio and cash flow are important factors that lenders consider when deciding on the approval of commercial mortgage applications.

Types of Commercial Mortgages

There are different types of commercial mortgages available in Canada, including open and closed mortgages, fixed and variable rates, and conventional and CMHC-insured mortgages. Open mortgages allow borrowers to pay off their mortgage early without penalty, while closed mortgages have prepayment penalties. Fixed-rate mortgages have a set interest rate for the entire term, while variable-rate mortgages have a fluctuating interest rate. Conventional mortgages require a down payment of at least 20%, while CMHC-insured mortgages allow borrowers to put down as little as 5%.

Pros and Cons

One of the main benefits is that they allow businesses to acquire the real estate they need to operate and grow. Commercial mortgages also have lower interest rates than unsecured loans, making them a more affordable financing option. However, commercial mortgages also come with risks, such as the possibility of foreclosure if the borrower defaults on the loan. In addition, they may require a significant down payment, which can be a challenge for some businesses.

Commercial mortgages are an essential financing tool for businesses in Canada looking to acquire or refinance commercial properties. Understanding the eligibility criteria, types, pros and cons of a commercial mortgage is crucial for making informed decisions. If you’re interested in learning more, contact The Place To Mortgage today for expert advice and guidance.

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Reverse Mortgages

Retire on your terms with a reverse mortgage

Reverse Mortgages are mostly designed for Canadian homeowners aged 55 and older. A reverse mortgage is a loan that is secured against your primary residence and allows you to convert your home’s value into tax-free cash. This can allow you more freedom to retire on your terms. However; there are options available for those who are not 55+.

You can stay in your home, without regular mortgage payments until you move or sell.

More and more Canadian seniors are choosing to stay in their homes for as long as possible. A reverse mortgage can increase cash flow which can be used for monthly expenses, paying out debts, covering medical expenses such as in-home care, buying a second property, or doing renovations and upkeep on the home. There is tremendous value in staying in the home you know and love. Therefore, a reverse mortgage can be the financial boost you need so you can live your retirement on your terms. The goal of reverse mortgages is to allow older homeowners to tap into the equity they have built up in their homes for more cash flow. A reverse mortgage is designed to allow you to access up to 55% of the equity in the home.

Frequently Asked Questions How do you get the money?

How you receive the funds is up to you and what you want them for. You can have the full amount as a lump sum or spread it into regular monthly deposits.

How do you pay it back?

A reverse mortgage loan does not need to be repaid for as long as you live in the home, however you can choose to make payments if you wish. When you decide to move or sell, the loan is repaid from the proceeds of the sale of the home. After the loan is repaid, all remaining money from the sale belongs to you and your estate.

How to qualify?

Canadian Homeowner Aged 55 or Older (both spouses must be 55+)
$250,000 Minimum Home Value
Must be Your Primary Residence

Our brokers can walk you through the process and help you explore the best options for you.

Things to consider

There are a few things about reverse mortgages to keep in mind and discuss with your mortgage broker.  First, you must live in the home for at least six months of the year and keep it in good order. You must remain current with your property tax payments with your municipality. Second, reverse mortgages are based on your age, the location and type of home you have and your home’s current appraised value. Third, because no payments are required until the mortgage is due, reverse mortgage rates tend to be higher than standard mortgages. The balance of the loan increases over time, consequently, so does the interest on the loan.

Reverse Mortgage Scenario

Key factors to qualify for a reverse mortgage are your age and the appraised value of your home. There are some calculators that are used to estimate the amount you might be eligible for which include your age and gender, property address, type of home and estimated appraised value.

Scenario 1

A 55-year-old man lives in Central Alberta. He would like to make some renovations to his single-family home. A neighbour recently sold for $350,000 with a similar home. If appraised at $350,000 he would be eligible for $58,500. If his home is appraised at $500,000, he would be eligible for $82,500.

Scenario 2

A 70- and 68-year-old couple lives in Lower Mainland, BC and would like to remain in their townhome for as long as they can. They would like to help their children with an early inheritance and increase their cashflow. If their townhome is appraised at $850,000, they would be eligible for $249,500 – $282,500. However, if their home is appraised at $1,000,000, they would be eligible for $293,500 – $331,500.

Homeowner	Estimated Home Value	Location	Estimated Eligible Amount *
55 Man	$350,000	Central Alberta	$58,500
55 Man	$500,000	Central Alberta	$82,500
70 Man and 68 Woman	$850,000	Lower Mainland	$249,500 – $282,500
70 Man and 68 Woman	$1,000,000	Lower Mainland	$293,500 – $331,500

*Based on CHIP Reverse Mortgage Calculator, July 2022

Is a reverse mortgage right for you?

If you think a reverse mortgage is the perfect solution for your situation, call us! A reverse mortgage can help you with immediate or long-term expenses so you can retire on your terms. As your mortgage professionals, we strive to help you find the best solutions for home ownership and your financial goals. Do not hesitate to call to discuss your options. We are always looking for ways to go above and beyond for our clients; offering ongoing strategies, programs and incentives to help ensure your financial success.