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Self Employed Mortgage

Overcome the challenges of being a self-employed homebuyer

The challenge for self-employed homebuyers

Millions of Canadians are self-employed; many financially stable, wealthy and successful who enjoy the benefits of working for themselves. But, when they begin thinking about buying a house it doesn’t pay to be self-employed as it typically becomes more difficult to get approved for a home loan.

That’s because the major banks have a limited box they lend within. They look for secure, stable and long-term employment, typically requiring at least 2 years’ of income statements to qualify. Self-employment is considered an alternative to the norm, resulting in application denial or unfavourable lending terms. So, what’s a self-employed professional to do?

Get the mortgage you deserve

Being self-employed doesn’t mean that you can’t achieve your dream of homeownership. Or, that you should have to sacrifice favourable lending terms just because of your professional status. As your mortgage broker, we don’t discriminate. Your Everything Mortgages Broker will work with you to develop a self-employment strategy that will allow you to get the mortgage you actually want and deserve.

We work with lenders who understand the unique challenges self-employed Canadians face. They understand these individuals have tax write-offs creating significant reductions in their declared income. We can use your gross deposits and work with as little as 6 months of you being self-employed to qualify. If you think you don’t have options as a self-employed borrower, think again.

 

Frequently asked questions

Who is a self-employed borrower?
You! If you’re a contractor, consultant, freelancer or entrepreneur who collects invoices rather than employment pay stubs, you are self-employed. Technically, “self-employed mortgages” don’t exist. You will get approved for the same mortgage as everyone else but, you may have to jump through a few more hoops compared to a payroll employee.
How can I qualify as a self-employed borrower?
The primary difference between self-employed (or commission-based) and salaried employees is that lenders will treat your gross earnings differently. As a rule of thumb, lenders will only use 80% of your gross earnings and the average of last tax year’s income for commissioned sales people, and net income, instead of gross income, for self-employed individuals. `A lender is restricted by Canada Mortgage and Housing Corporation (CMHC) rules to use only the last three years of self-employment income.
What is considered qualifying income?
Self-employed workers typically obtain their mortgage through stated income applications, which require a signed income declaration and proof of self-employment. Stated income is how much you claim to earn. If you keep most of your income inside your company, we can qualify you for a mortgage using the gross deposit of business income over the last 12 months or allowing for retained earnings within your corporation. We can even qualify you with some lenders with as little as six months as business for self.
What income documents will I need?
Lenders will require: Your last two years of full T1 Generals and the associated notices of assessment
  • If incorporated: your whole articles of incorporation
  • If sole proprietor: your business or HST registration
  • Last six months of bank account statements
How long do I need to be in business to qualify for a mortgage?
Most lenders require at least a two-year track record for businesses. Lenders have been known to make exceptions for professionals like doctors and engineers, as well as people starting a new business in an industry where they’ve already had a long career.
If my business produces a seasonal or irregular income, can I still qualify?
Yes, the same income requirements apply as if you earned a full-year income.
Where should I start?
If you are a self-employed individual looking for a mortgage, it would be in your best interest to gather the required income documents and begin a mortgage pre-approval process with us. Contact us to speak with one of our self-employed mortgage specialists to help you organize and obtain the relevant documentation for you. Our digital document collection process simplifies the process, making getting pre-approved as hassle and stress free as possible. Click the "Get Started" button to start your online application.

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First-Time Homebuying

Get the tools, advice and strategy you need to succeed as a first time homebuyer

Fulfil the dream of home

Buying your first home is one of the most exciting and possibly the biggest financial decisions you’ll ever make – and you want to do it right! Nearly half of first-time homebuyers in Canada are young professionals who simply want to “become a homeowner.”

But, many aspiring homeowners quickly realize how challenging it is to fulfil their dream of homeownership. Purchasing a home is a big financial commitment involving many tasks, steps and requirements. Challenges may pop-up along the way making the process difficult, confusing and complicated, leaving many aspiring homeowners feeling anxious about making an expensive mistake.

So, where do you go? Or, more importantly, who do you trust with such a significant financial decision?

With a deep understanding of your long-term financial goals and current financial status, your Everything Mortgages Broker will guide you through the homebuying journey, answering your most daunting questions and mitigating any challenges along the way.

Frequently asked questions

Where should I start?
If you are a self-employed individual looking for a mortgage, it would be in your best interest to gather the required income documents and begin a mortgage pre-approval process with us. Contact us to speak with one of our self-employed mortgage specialists to help you organize and obtain the relevant documentation for you. Our digital document collection process simplifies the process, making getting pre-approved as hassle and stress free as possible.
Can I really only afford how much online calculators and banks are telling me?
Recent changes to mortgage lending (i.e. the stress test) have made it more difficult to qualify in recent years. But, there’s still hope yet. We use a creative approach to find the solution that’s best for you. As your broker, we have access to a portfolio of over 35 lenders including banks, alternative and private lenders.
What is the minimum down payment?
Minimum down payment for your first home purchase is 5% of the first $500,000 and 10% on anything above that. Down payments can consist of your savings, RRSP's of up to $35,000 per applicant (first-time homebuyers only or if you've recently separated), gifted down payment, inheritance, and to clarify, can still even be borrowed (i.e from a line of credit or loan).
How do I make an offer?
Once you find the house that you want to make home, you’ll work with your realtor to submit your offer to the sellers. With your pre-approval and qualification information you’ll show sellers that you’re serious and confident about your home purchase.

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Mortgage Refinancing

How you can use your home loan to achieve your financial goals.

Leverage the equity in your home

Mortgage refinancing is renegotiating your existing mortgage loan and replacing it with a new one. Homeowners will often refinance to obtain a lower interest rate, shorten the term of their mortgage, reduce interest payments, consolidate debt, finance a large purchase or to raise funds to cover a financial emergency.

When you refinance your mortgage you get new terms on your existing home loan. Oftentimes, the savings earned from a new interest rate outweigh the prepayment costs associated with refinancing. In fact, many lenders say 1% savings is enough of an incentive to refinance.

When done strategically, mortgage refinancing can be a great financial tool to reduce your mortgage payment, shorten the term of your loan, help build equity quickly or combat high-interest debt.

Is refinancing right for you?

Based on your individual needs we can evaluate whether refinancing makes sense for you and how best to do it. The most common reasons why you would refinance are for:

Debt consolidation

Merge higher interest debts into one manageable payment with a lower interest rate.

Secure a lower interest rate

When interest rates drop, consider refinancing to shorten the term of your mortgage and pay significantly less in interest payments going forward.

Cover emergency expenses

Take out some of the equity accumulated in your home to cover emergency expenses such as unexpected job loss, family illness or other financial emergencies.

Home renovations

Get the money you need to renovate or make repairs on your property.

Tuition

Cover education costs for yourself or someone else.

Investing

Use funds from your house to take advantage of an investment opportunity.

Frequently asked questions

What is mortgage refinancing?
Mortgage refinancing refers to the replacement of an existing mortgage with a new mortgage. You can use a refinance mortgage to obtain a higher mortgage amount, a different term, a lower mortgage rate, or to change borrowers on the mortgage.
What’s the difference between mortgage renewal and mortgage refinancing?
Mortgage refinancing can be done at any time during your mortgage, whereas a mortgage renewal is when your mortgage term is up for maturity and you need to pick a new mortgage.

Mortgage refinancing allows you to change the term, interest rate, and amount of your existing mortgage. People often refinance to take advantage of a lower interest rate or to take out more cash. A mortgage refinance usually involves a new mortgage application.

A mortgage renewal means you’re selecting a new mortgage. You can reset your interest rate, term, and amount. There is no penalty or cost at the time of renewal. If you are sticking to your existing lender, you do not need any credit application to renew your mortgage.
What are the benefits of mortgage refinancing?
1. Access cash using your home equity
Access up to 80% of your home value. You can use the funds to renovate your home, invest in another property, pay for education, take a vacation or support your business.

2. Lower interest rates
Refinancing into a lower interest rate can reduce the cost of borrowing. We negotiate with over 30 lenders to get the lowest refinance rates.

3. Consolidate debt
Consolidate high interest debts into your refinance mortgage to help lower your monthly payments, pay off debts sooner and improve your credit score.

Mortgages usually have lower rates compared to other credit products, such as personal lines of credit, credit cards, or commercial loans so refinancing your mortgage can be a great way to fund many of your life goals.
When should I refinance my mortgage?
You can refinance at any time. However, before you think about refinancing, you need to ensure you’re the right candidate. If you have less than a year to pay off your mortgage, you shouldn’t. If you’re not offered more favourable terms then opt-out.

Many people choose to refinance at the time of renewal. If you refinance before your current term matures, you may be charged a prepayment penalty. However, if the interest rate saving is greater than the penalty, it may still be worth refinancing even if your mortgage is not up for renewal yet.
How much can you refinance?
How much you can qualify for largely depends on your income and the value of your house, which determines your Loan-to-value (LTV). Estimate how much you can refinance by using our Refinance Calculator. Deciding if mortgage refinancing is right for you can get complicated. We are always happy to help by evaluating your situation and guiding you through the refinancing process.
What are the mortgage refinancing rates?
Refinance interest rates are similar to most conventional mortgage interest rates except that they are usually higher than default insurance mortgage rates. You can get the lowest mortgage refinance rates in under 2 minutes by talking with one of our experienced mortgage advisors. Click Get Started to begin your application or contact us directly.
How much does it cost to refinance?
The main costs for refinancing your mortgage include prepayment penalty/breakage, legal fees, title cost, and appraisal cost. You only need to pay a prepayment penalty if you refinance before your mortgage is up for renewal.

Your refinance may not require a lawyer depending on the complexity of the refinance. Legal costs are typically in the range of $1,000-$2,000. If you do not require a lawyer, there will likely be a “title cost”, which is to change or increase the “lien” the bank has registered on your property.

Second, refinancing requires an updated appraisal report on your property to ensure the value of your home is up-to-date. This is used for the lender to assess your Loan-to-Value. The appraisal report usually costs between $300 to $400 dollars.
Does refinancing impact your credit?
Usually refinancing doesn’t impact your credit. However, if you shop your mortgage rate with too many lenders, your credit file will get “multiple inquiries/hits” from different lenders, which will negatively impact your credit score. That’s why it’s beneficial to use an experienced mortgage broker, who will only check your credit once and then negotiate the best rate with multiple lenders on your behalf. Talk to one of our experienced mortgage advisors today for any questions you may have.

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Bad Credit Mortgage

Think you can’t get a mortgage with poor credit? Think again.

Don’t let bruised credit hold you back

Many Canadians have experienced financial setbacks which may have affected their credit. Perhaps you were laid off or suffered an illness that forced you out of work. Maybe you went through a messy divorce or maybe you experienced a financial small business in your small business which forced you to default on loans and credit card payments.

If you have bruised credit don’t fret! There’s still hope yet. We take the time to understand your entire story and look beyond your credit rating to understand the “big picture.” We work with lenders who understand the challenges borrowers have with low or no credit and offer solutions to help them succeed. We help pave the way to homeownership with guidance that is unbiased and fair. And, we only disclose your financial information if you’re likely to be approved by that lender.

If you have poor or no credit but work with the right person and take the right steps, you can still fulfil the dream of home.

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Debt Consolidation

Ditch the high-interest debt, take control of your finances and finally get ahead again

Live financially free

High-interest debt such as credit cards and personal loans can be a headache to manage and a challenge to overcome. They are designed by the banks and credit card companies to keep you in debt longer. The interest payments can be difficult to pay every month, let alone the principal, especially if you have multiple payments to juggle.

If you have personal debt looming over your head every month the stress, anxiety and worry can be too much to bear. You may feel like you’re so far down the rabbit hole that you’ll never achieve the financial freedom that you desire. Luckily, there is a solution.

Why waste money paying the bank’s high-interest rates when you can add the debt to your mortgage at a much lower rate? If you own your home, tacking on high-interest debt to your mortgage principal can be a good way to shave down any outstanding balance while saving money and increasing cash-flow.

However, debt consolidation mortgages are not for everyone. A good Mortgage Broker will know the difference between “good debt” and “bad debt.” A well-planned mortgage can help you turn those bad debts into good debts, get them out of the way and help you achieve financial freedom sooner.

If you’re feeling held back by high-interest debt, want to take control of your finances and finally get ahead again, then let’s chat. We’ll help you decide if it’s a good option for you and develop a  strategy to beat the big banks for good!

Why choose Mortgage Consolidation?

Lower interest rates

If you have multiple loans, the interest adds up quickly. We’ll work with you to consolidate all your loans into one single payment with one lower interest rate, allowing you to become debt-free sooner.

Limit number of payments

When you have 10 or more debt payments every month, you may feel stressed and overwhelmed. Not only does multiple interest payments add up, but it prevents you from making payments towards the principal loan amount, forcing you into more debt.

Reduce stress

Stop trying to juggle multiple payments with different lenders. Instead, focus only on one single payment every month. With a more manageable and successful debt-repayment plan, you can breathe easy knowing that you’re consciously working towards achieving your financial goals.

Frequently asked questions

What is Debt Consolidation?
Debt consolidation is debt financing that combines two or more loans into one. A debt consolidation mortgage is a long term loan that gives you access to funds to pay off several debts at once. You’re left with one payment rather than several. It can be a great way to streamline your finances and combat high-interest debt for good.
Why consolidate debt into a mortgage?
Refinancing your existing mortgage into a consolidation loan combines your debts into one payment. If you have high interest loans and you’re only paying the interest rather than the principal this is a great solution to combat debt.

When you refinance, you can get up to a maximum of 80% of the appraised value of your home minus the remaining mortgage. This is equity that you can use towards debt consolidation for example.

Debt consolidation mortgages come with a structured payment plan and an assured pay-off date. Payment schedules vary depending on your agreement: weekly, biweekly, semi-monthly or monthly over a negotiated term. Refinancing fees may apply, such as appraisals, title search, title insurance and legal fees.
Will consolidating my debt improve my credit score?
Definitely. When you have multiple accounts and payments to manage, you are more likely to make a mistake and miss payments. Late or missed payments hurt your credit scores, so consolidating debt into one monthly payment will protect your credit for the future.

By refinancing and complying with the terms of the consolidation plan, your credit score will likely increase significantly within months.
Are there any fees I have to pay for this service?
Typically, the only out of pocket cost associated with this type of service is the appraisal fee, which we can usually avoid.

The appraisal free will cost between $300-500. We'll be seeking approval with an online valuation first at a lower cost. The online valuation is generally accepted; however, if not, a full appraisal is required. Some lenders will reimburse the cost, as well as cover legal fees.

Any other costs such as breakage fee or lawyer fee, if applicable, can come from the process of your refinance (not out of pocket).

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Home Equity Line of Credit

Use the equity in your home to help conquer your goals

A line of credit to help conquer your goals

Buying a home is likely one of the largest purchases and most lucrative investments you’ll ever make. But, it can also be the most powerful financial borrowing tool that you have.

While both a home loan and a home equity line gives you access to the equity in your home, a home equity loan gives you a one-time lump sum of money. Whereas a home equity line of credit (HELOC) provides convenient, ongoing access to funds when and as you need it.

The more equity available in your home the more funds you have available to borrow. The home equity line of credit (HELOC) is a revolving line of credit that’s secured against your home loan. And, with it, you have the freedom and flexibility to use the funds as you need and will benefit from repaying the line of credit with interest-only payments on the funds you actually use.

A HELOC can be used to cover current or future expenses or help you achieve financial goals. Canadians will often use a home equity line to consolidate high-interest debt, finance large expenses such as a home renovation project, pay down their mortgage principal or, save it as an emergency fund for a rainy day.

With access to cash at a lower price point than a traditional home loan and the flexibility to use the funds as you wish, the home equity line of credit can be a tool that gives you incredible buying power. Talk to us today to see if a home equity line is right for you.

When to consider a home equity line of credit:

  • Home renovations
  • Vehicle purchase
  • Medical expenses
  • Education expenses
  • Home renovations
  • Investment opportunities
  • Debt consolidation
  • Other major purchases
  • Residential property

Frequently asked questions

What is a HELOC?
HELOC stands for Home Equity Line of Credit. It is a revolving amount of credit that is secured against your home. During the HELOC process, the lender will decide on the amount of your HELOC. Lenders allow total loans (mortgage plus HELOC) of up to 80% of your home’s value. So, if your home is worth $500,000 and your mortgage is $200,000, your HELOC could be as much as $200,000. You can draw from that money at any time, for any reason.
What is the difference between a Home Equity Line of Credit and a Home Equity Loan?
While both a home loan and a home equity line gives you access to the equity in your home, a home equity loan gives you a one-time lump sum of money. Whereas, a home equity line of credit (HELOC) provides convenient, ongoing access to funds when and as you need it. The more equity available in your home the more funds you have available to borrow. A HELOC gives you the freedom and flexibility to use the funds as you need and allows you to repay the line of credit with interest only payments on the funds you actually use.
What can I use a HELOC for?
A HELOC has a unique advantage in that it can be used, repaid, and used again, while only paying interest on the portion of the funds that have been used. A HELOC is a good solution for many funding needs, such as launching or supporting a small business, covering medical and health care expenses, accessing funds for purchasing a second property, financing home renovations, repairs, construction, and all kinds of other household projects.
Is a HELOC or a second mortgage better?
A HELOC is actually a type of second mortgage. The main difference between the two is how you will receive your loan payment. A second mortgage is a lump sum, whereas the HELOC is a line of credit. The HELOC functions like a credit card with a credit limit and minimum monthly payments. You will be required to make fixed-rate payments however, this is typically added to your mortgage principal. For individuals with an existing mortgage, who have good credit and more than 20% equity in their homes, the most affordable second mortgages will be in the form of a home equity line of credit. However, if the homeowner has weaker credit and/or little equity in their property, a second mortgage through a trust company or private lender would be required.
Can I have more than one line of credit?
Yes, you can have multiple home equity lines of credit outstanding, even on the same property, as long as you hold enough equity in your home to meet the lender’s guidelines. If you own multiple properties and have the equity available, you can have as many mortgages and equity lines or loans as you can qualify for. As long as you’re not overleveraged or owe more than your properties are worth, there’s no limit to the number of home equity loans or HELOCs you can have at one time.
How do I qualify for a HELOC
Lender requirements will vary, but here's what you'll generally need to get a HELOC: A debt-to-income ratio that's 40% or less. A credit score of 620 or higher. A home value that’s at least 15% more than you owe. The process of getting a home equity line is similar to any purchase of a refinance mortgage. Here the are the steps we’ll follow: First, we’ll determine whether you have sufficient equity and how much is available for you to borrow. Then, we’ll gather the necessary documentation before you apply to ensure the process goes smoothly. We will present your file to lenders on your behalf and once selected, apply for the HELOC. We will then review the lender’s disclosure statements and begin the underwriting process which can take anywhere from a few hours to a few weeks. The final step is loan closing, when you sign paperwork and the line of credit becomes available. Get started with your mortgage refinance here.

How can you use a second mortgage?

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Second Mortgage

Access the equity in your home without being forced to sell

Is a second mortgage right for you?

When people think of a second mortgage, they usually think of high-interest rates, large fees and a big loan shark preying on their property. But, in reality, a second mortgage can be a great way for homeowners to fulfil other endeavours without having to sell their home.

A second mortgage is a type of loan that allows you to borrow against your existing home loan. It is an additional loan taken out on a property that is already mortgaged. And, yes, they do come with a slightly higher interest rate but only because it’s considered a riskier investment than a first mortgage.

However, these rates are still significantly lower than high-interest credit cards, car lease payments or unsecured lines of credit. Your home is possibly your biggest asset, and over time that asset becomes more valuable. The value gained is equity that you can utilize to fulfil other financial goals or projects.

A second mortgage can help you consolidate your debt and improve your credit score, allowing you to qualify with a prime lender sooner than you would otherwise. Beyond debt consolidation, a second mortgage can be used to finance other life events such as higher education, vacations or home improvements.

At Everything Mortgages, we have access to a network of second mortgage lenders, both institutional and private. Our mortgage specialists can match you with a lender in as little as 48 hours regardless of your credit, income and employment history.

Quick facts about the second mortgage

Higher approval rates

Lenders offer more lenient qualification requirements.

Shorter loan terms

Lending is short-term ranging from 6 months to 1 year.

Quick turn-around times

Closing can be as quick as 48 hours.

Lower rates

Lending rates typically start at 5.99%, which are lower than other high-interest credit options.

Additional fees

You may pay a lender fee of 1.5% to 2%.

Frequently asked questions

What is a second mortgage?
A second mortgage is an additional loan taken out on a property that is already mortgaged. Determination of first, second and third mortgage designation is determined by priority of registration.

What this means is if you have a first and second mortgage on your property and if for some reason you went into default – the mortgage in the first position will recoup their investment first followed by the second mortgage. It’s considered a riskier investment for the lender which is why second mortgages typically have higher interest rates than first mortgages.
How can a second mortgage help me?
Second mortgages are rapidly growing. It’s a great way for homeowners to access equity in your home without being forced to sell or pay a huge penalty when breaking your existing mortgage. Refinancing rules allow you to access up to 80% of the equity in your home.
How can I qualify for a second mortgage?
In order to qualify for a second mortgage in second position, lenders will look at four areas:

Equity. The more equity you have available, the higher your chances of qualifying for a second mortgage will be. If you are purchasing a house, a larger down payment also decreases the risk that a lender takes on.Regular payments towards utilities, telecommunications, insurance, etc, and/or confirmation letter from service provider(s).

Income. Lenders want to verify that you have a dependable source of income, to ensure that you can make payments.

Credit score. The higher your credit score, the lower your interest rates.

Property. Because other factors are risky (i.e. your credit score), lenders need to secure their investment in case you are unable to keep up with mortgage payments.
How does a second mortgage work?
The amount you can borrow will depend on the equity you have in your home. The total of a first and second mortgage can be as much as 80% of your home’s value. Consider you own a property valued at $500,000, and your first mortgage is for $325,000. In this case you’d be able to access $75,000 upon obtaining a second mortgage if approved.

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Investment Property

Build wealth and prepare for the future

Develop a steady passive income stream

If you invested in Ontario residential real estate in the past 20 years, chances are your property is worth substantially more than when you originally purchased it. You may have already owned your home for the past 5-10 years and seen your equity skyrocket. Perhaps you have even thought about how you can own a rental property to generate a steady passive income stream, or, wondered how you can better prepare yourself for retirement.

Residential real estate in Ontario has outperformed many other investments. This, along with an increasing demand for rentals in urban areas, makes buying an investment property a financially savvy move.

Leverage the existing equity in your home

As a homeowner, you’ve already built up equity in your home. An investment property mortgage leverages that equity, allowing you to purchase a rental property without putting down the cash. Using your existing home equity is a strategy that can be used to create a passive monthly income stream that covers the rental property mortgage and then some. This means that not only will your tenants completely cover your rental property, but with the right investment property mortgage, you’ll also be growing your wealth and increasing its value over time.

When you’re ready to take the next step towards your investment property purchase, we’re here to help. Our team of mortgage advisors specialize in investment property financing throughout Ontario. The best part is you can sit back and relax and while we handle all the “busy work.”

Frequently asked questions

What is an investment property?
An investment or rental property is a residential or commercial property that's leased or rented to a tenant over a set period of time. There are short-term rentals, like vacation rentals, and long-term ones, like those under a one-to-three-year lease.

Residential rental properties are one- to four-family homes, which include:
- single-family homes
- duplexes
- triplexes and
- quadplexes

Types of commercial rental properties include:
- multifamily (apartment complexes)
- industrial (such as a warehouse or self-storage)
- office space
- retail space and
- multi-use

Residential rental properties are more accessible than commercial investments because they’re typically less expensive so less money is required up front, which means that it’s also easier to get financing. Owning and managing an investment property is an active form of real estate investing and can provide positive cash flow and added security for the future.
What is the buying process for an investment property?
First, your realtor will work with you to understand what type of rental may suit your needs and execute the purchase on your behalf. Before seeking out a real estate agent, determine where you want to invest (what is or will be in demand?) and what you want to invest in (the type of property: square footage, number of bedrooms, type of build, amenities and property type).

Second, If you can’t purchase the property all in cash, you’ll need financing. One way to finance an investment property with zero cash savings is by drawing on existing equity available in your home either through a home equity loan, HELOC or cash-out refinance. You may be eligible to borrow up to 80% of the home's equity value to use towards the purchase of a second home.

When it’s for financing a rental property, you’ll find that typical interest rates on a home equity line of credit runs around 3 to 4%, thus making them an affordable option to get started in leveraged real estate investing. However, you still have to be very careful when securing financing for a rental property. Speak to a mortgage professional about which solution will be the best for you.

Next, you may have to make some repairs or renovations to prepare the property for the market. Your property is then marketed, filled with tenants, and actively managed for any ongoing maintenance. How active or passive you are in the day-to-day management of the property is a personal choice. You may decide to manage the rental yourself or hire a property management company to manage it for you.
What is the minimum down payment on an investment property?
The minimum down payment for a rental income property is 20% if you are not occupying a unit in the property as your primary residence.

For up to a duplex while occupying one of the units, the minimum down payment is 5%.

For up to a 3-4 unit rental property while occupying one of the units, the minimum down payment is 10%. Rental income from the non-owner-occupied units can be used as a qualifying income on your mortgage application.
Why is the rate higher on rental properties?
It may come as a surprise that a rental property would yield a higher rate compared to your owner-occupied home. And, the reason is risk exposure. For instance, if you became ill, lost your job or couldn’t work for any reason, you would be less likely to bounce your rental property mortgage over the mortgage of your primary residence.

Most lenders have a 0.25-0.35% rate premium. However, we can amortize up to a 30 year period which yields a lower monthly mortgage payment than a 25 year amortization.
Where should I start?
The first step is to calculate the available equity in your home that we can put towards growing your real estate portfolio, i.e. your net worth.

To calculate, we need a copy of your existing mortgage statement. We'll have one of our real estate experts complete comparable market analysis to confirm the value of your home.

It’s best to start the paperwork and underwriting process as soon you've identified an investment. Not every bank lends to individuals for investment properties so it’s important to secure a lender before the property is under contact.

But, don’t worry about that. All you need to do is click Get Started and we’ll handle the rest.

How can you use a second mortgage?

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Home Improvement

Get the funds you need to transform your house into a home.

Transform your house into a home

You’re likely here because you’ve decided that it’s much more beneficial to make your house suit your needs rather than selling and buying new. Why deal with the stress, costly fees and adjustments of moving to a new neighbourhood?

Maybe some new landscaping, an extra wing for your growing family, an expanded kitchen, or a swimming pool in the backyard is just the thing to make your home better suit your needs. Or, perhaps you’re ready to move-up and want to upgrade your home’s features to make it more appealing to potential homebuyers.

In any case, a record number of Canadians have tapped into their home equity for improvement projects. There’s never been a better time to access the extra funds that can help bring your home to that next level of comfort. Consider accessing the cash you need to complete the home renovations and improvements you’ve been dreaming of.

Frequently asked questions

What is a HELOC?
HELOC stands for Home Equity Line of Credit. It is a revolving amount of credit that is secured against your home. During the HELOC process, the lender will decide on the amount of your HELOC.

Lenders allow total loans (mortgage plus HELOC) of up to 80% of your home’s value. So, if your home is worth $500,000 and your mortgage is $200,000, your HELOC could be as much as $200,000. You can draw from that money at any time, for any reason.
What is the difference between a Home Equity Line of Credit and a Home Equity Loan?
While both a home loan and a home equity line gives you access to the equity in your home, a home equity loan gives you a one-time lump sum of money. Whereas, a home equity line of credit (HELOC) provides convenient, ongoing access to funds when and as you need it.

The more equity available in your home the more funds you have available to borrow. A HELOC gives you the freedom and flexibility to use the funds as you need and allows you to repay the line of credit with interest only payments on the funds you actually use.
What can I use a HELOC for?
A HELOC has a unique advantage in that it can be used, repaid, and used again, while only paying interest on the portion of the funds that have been used. A HELOC is a good solution for many funding needs, such as launching or supporting a small business, covering medical and health care expenses, accessing funds for purchasing a second property, financing home renovations, repairs, construction, and all kinds of other household projects.
Is a HELOC or a second mortgage better?
A HELOC is actually a type of second mortgage. The main difference between the two is how you will receive your loan payment. A second mortgage is a lump sum, whereas the HELOC is a line of credit. The HELOC functions like a credit card with a credit limit and minimum monthly payments. You will be required to make fixed-rate payments however, this is typically added to your mortgage principal.

For individuals with an existing mortgage, who have good credit and more than 20% equity in their homes, the most affordable second mortgages will be in the form of a home equity line of credit. However, if the homeowner has weaker credit and/or little equity in their property, a second mortgage through a trust company or private lender would be required.
Can I have more than one line of credit?
Yes, you can have multiple home equity lines of credit outstanding, even on the same property, as long as you hold enough equity in your home to meet the lender’s guidelines.
If you own multiple properties and have the equity available, you can have as many mortgages and equity lines or loans as you can qualify for. As long as you’re not overleveraged or owe more than your properties are worth, there’s no limit to the number of home equity loans or HELOCs you can have at one time.
How do I qualify for a HELOC?
Lender requirements will vary, but here's what you'll generally need to get a HELOC:
A debt-to-income ratio that's 40% or less.
A credit score of 620 or higher.
A home value that’s at least 15% more than you owe.


The process of getting a home equity line is similar to any purchase of a refinance mortgage.
Here the are the steps we’ll follow:

1. First, we’ll determine whether you have sufficient equity and how much is available for you to borrow.

2. Then, we’ll gather the necessary documentation before you apply to ensure the process goes smoothly. We will present your file to lenders on your behalf and once selected, apply for the HELOC.

3. We will then review the lender’s disclosure statements and begin the underwriting process which can take anywhere from a few hours to a few weeks.

4. The final step is loan closing, when you sign paperwork and the line of credit becomes available.


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Mortgage Renewal

Our simple, stress-free guide to mortgage renewals.

Don’t just sign on the dotted line

When the term on your current mortgage expires, it’s time to renew your mortgage. A mortgage renewal is an opportunity to negotiate a better interest rate, better terms or consolidate debt.

The bank or financial institution you currently have your mortgage with will offer you an automatic renewal. Typically, they will send you written notice a few weeks before your renewal date. The easiest solution may be to just sign on the dotted line. By doing so, you forfeit the opportunity to explore additional options, potentially costing you thousands on your future loan.

Over half of Canadian mortgage holders will re-sign with their existing lender under the same terms. Borrowers rarely ask questions about their mortgage as they don’t want the hassle of renegotiating with the lender. Lenders know this and therefore won’t offer the lowest rate or best terms available come renewal.

That’s where we come in. When it’s time, we’ll take care of your mortgage renewal so you don’t have to. We will assess your existing mortgage, compare it to the current market conditions and negotiate with lenders on your behalf. We specialize in mortgage renewals for homeowners in all situations including standard renewals, homeowners seeking advanced pre-approvals and early renewals, regardless of debt, income or credit.

A mortgage is probably the largest expense you will ever have and making this  mistake could cost you thousands! If you want to get a renewal reminder simply let us know here and three months before your renewal date we’ll send you an email with more information on how to get started.

Frequently asked questions

What is a mortgage renewal?
A mortgage renewal is when your current mortgage term comes to an end and you sign-on for a new term (or pay off your existing mortgage). When you sign for a new term you’re essentially signing a new mortgage for the remaining balance owed. For example, if you have $350,000 remaining on a mortgage that was originally $500,000, your new mortgage will be for $350,000.
How will I know when it’s time to renew my mortgage?
Most lenders are required to provide you with a renewal statement at least three weeks before the end of your term so when your mortgage term is nearing an end, keep an eye on your mailbox or your email inbox for the renewal statement.

Your renewal statement will include information about your mortgage that’s included in your normal statements, such as your current balance, payment amount, payment frequency, etc., as well as a renewal form that you can sign and send back.
Do I have to stick with my current mortgage holder?
No. When it’s time to renew your mortgage, you can go with any lender you choose. In fact, moving your mortgage to a different lender may better suit your needs. Your new lender will need to approve your application just in case the criteria they use for approval differs from your original lender.
Isn’t it easier to just auto-renew?
Yes, it may be easier to simply renew your existing mortgage. However, it may work against you. Ignoring your renewal and re-signing the initial agreement means you forfeit your chance to renegotiate the terms of your mortgage contract, including the length of your next term, your interest rate and even your lender. Being able to change your mortgage at set intervals means that you can also change your mortgage to better align with your needs and what’s happening in the housing market as a whole.
What’s the biggest disadvantage of an automatic renewal?
Most homeowners renew their mortgage with the same lender that holds their current mortgage. It doesn’t seem like a big deal; it’s much easier and more convenient to simply accept the terms, sign the paperwork, and send it back to your lender.

However, by not exploring other options, you could be leaving thousands of dollars on the table. This is your opportunity to explore other options and test the market to see if you can find a better rate and/or more flexible terms elsewhere. And, chances are you probably can. Even if you are happy with your current lender, a mortgage broker can at least check with your current lender to see if they will give you a better deal before taking your mortgage elsewhere.
Why should I work with a broker when it’s time to renew?
Mortgage brokers aren’t just helpful when you get your first mortgage. They’re also able to help you in the same way they did for your first (or second) mortgage: by shopping around for the best rates among multiple lenders who are doing the legwork for you.

Even if your mortgage isn’t up for renewal, don’t wait for your lender to notify you. Contact your broker up to a few months before the end of your term so they can get going on the process for you. A mortgage broker can be extremely helpful during the negotiation process and ensure you get the best terms and rates as possible.

How can you use a second mortgage?

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