Mortgage FAQ

The best way is to get a mortgage pre-approval. Generally, lenders use the Total Debt Service (TDS) ratio ? your total monthly housing costs plus other debt payments should not exceed 44% of your gross monthly income. Using our mortgage calculator is a great starting point, or contact us for a personalized affordability assessment.

Pre-qualification is an informal estimate based on self-reported income and debts ? no credit check required. Pre-approval is a formal commitment from a lender based on verified documents, a credit check, and income confirmation. Pre-approval holds your rate for up to 120 days and carries much more weight with sellers.

Pre-approval can often happen within 24?48 hours once we have your documents. The full mortgage approval and funding process typically takes 3?5 business days after the lender receives a complete application. For a standard home purchase, allow at least 10?14 business days between offer acceptance and closing.

Typically you'll need: government-issued photo ID, proof of income (recent pay stubs + T4s or NOAs for 2 years), proof of down payment (90-day bank statements), employment letter, and details on any existing debts. Self-employed applicants may need 2 years of financial statements and business documents.

The minimum down payment depends on the purchase price: 5% for homes under $500,000; 10% on the portion between $500,000 and $999,999; and 20% for homes priced at $1 million or more. Homes over $1.5 million require at least 20% and are not eligible for CMHC insurance.

Yes ? gifted down payments are allowed from immediate family members (parents, siblings, spouse). The lender will require a signed gift letter confirming the funds are a true gift with no repayment obligation, along with bank statements showing the transfer. Some lenders may also require proof of the donor's ability to gift the funds.

CMHC mortgage insurance (also called mortgage default insurance) is required when your down payment is less than 20%. It protects the lender ? not you ? in case of default. The premium is 2.80%?4.00% of the mortgage amount depending on your down payment, and is typically added to your mortgage balance. It allows buyers to purchase with as little as 5% down.

A larger down payment lowers your mortgage amount, reduces or eliminates CMHC insurance, and can get you a better rate. However, it's not always optimal ? tying up all liquid savings in your home can leave you cash-poor for emergencies or other investments. We help you find the right balance for your financial situation.

Fixed rates offer payment stability and protection against rate increases ? ideal if you value predictability or have a tight budget. Variable rates fluctuate with the prime rate and historically save money over time, but carry more risk. The right choice depends on your risk tolerance, financial goals, and market conditions. We'll walk you through both options.

The most popular term in Canada is 5 years, balancing rate stability with flexibility. Shorter terms (1?3 years) make sense if you expect rates to drop or anticipate selling soon. Longer terms (7?10 years) offer maximum stability. Your amortization period (typically 25?30 years) is separate from your term ? you'll renew multiple times before your mortgage is paid off.

Variable and adjustable rates change whenever the Bank of Canada adjusts its overnight policy rate ? typically 8 times per year. Fixed rates change daily based on bond market movements. Once you're approved, your rate is locked for the duration of your term. We can notify you when rate conditions are favourable for your situation.

Yes ? a rate hold protects you against rate increases for up to 120 days while you shop for a home. If rates drop before you close, most lenders will honour the lower rate. This makes getting pre-approved early a smart strategy, especially in a rising rate environment.

Common reasons to refinance include: accessing home equity for renovations or investments, consolidating high-interest debt, taking advantage of significantly lower rates, or changing your mortgage structure. Breaking your current term early carries penalties, so we run the numbers to confirm the savings outweigh the costs before proceeding.

At renewal, your current mortgage term ends and you renegotiate your rate and terms for the next period. You are NOT obligated to stay with your current lender ? shopping around at renewal is one of the best opportunities to save money. We recommend starting the process 4?6 months before your renewal date to ensure you get the best available rate.

Yes ? breaking a fixed-rate mortgage before the term ends typically incurs a prepayment penalty, usually calculated as the greater of 3 months' interest or the Interest Rate Differential (IRD). Variable-rate penalties are generally 3 months' interest. We help you calculate whether the long-term savings justify paying the penalty.

Yes ? renewal is an opportunity to increase your mortgage amount (refinance) to access built-up equity. You'll need to requalify based on current income and the stress test rules. The maximum refinance is typically 80% of your home's appraised value. This is commonly used for renovations, debt consolidation, or investment purposes.

Absolutely. Self-employed borrowers typically need to provide 2 years of T1 generals (Notice of Assessments), business financial statements, and business registration documents. Some lenders offer "stated income" programs for established self-employed borrowers. We specialize in finding lenders who understand self-employment income.

Lenders typically average your last 2 years of income to qualify you. If your income has been growing, some lenders will use the most recent year. Irregular or seasonal income is common ? we work with lenders experienced in these situations and can structure your application to present your earnings in the most favourable way.

This is a common challenge ? the more you write off, the lower your declared income, which reduces your borrowing power with traditional lenders. Alternative (B) lenders and private lenders offer programs that consider gross revenue or "add back" certain expenses. We help you find the right lender based on your actual financial picture.

Commission, bonus, and tip income are all considered by lenders, but most want to see a 2-year history to use it in qualification. Lenders will typically average the past 2 years of variable income. An employment letter confirming the commission structure alongside 2 years of T4s and NOAs is usually sufficient.

A bank offers only its own mortgage products. A mortgage broker like JRE Group works with 50+ lenders ? including banks, credit unions, and alternative lenders ? to find the best rate and product for your situation. We work for you, not the bank. And our services are typically free to you, as lenders pay us a finder's fee.

For the majority of clients, our services are completely free. Lenders pay us a referral fee when we place your mortgage. In some cases ? such as private or alternative lending ? a broker fee may apply, and we will always disclose this in advance so there are no surprises.

We are licensed to serve clients across Ontario. Our primary focus is the Hamilton & GTA area, including Hamilton, Burlington, Oakville, Mississauga, Toronto, Brampton, and surrounding communities. We work with clients remotely as well, so geography is rarely a barrier.

Getting started is easy. Contact us by phone, email, or fill out our online form. We'll schedule a free consultation to understand your goals and guide you through the next steps. Most clients are pre-approved within 24?48 hours of submitting their documents.