During the qualification process, lenders use the qualifying rate to measure the borrower’s ability to repay the mortgage over the lifetime of the loan. It is intended to protect Canadians who may be subject to higher interest rates in the future. Most residential mortgages can only be approved using the qualifying rate. The qualifying rate […]

Variable Rates The interest rate fluctuates throughout the term. Usually, the initial variable rate is lower than the comparable fixed rate but the borrower(s) are subject to volatility during the term. Fixed Rates The interest does not change throughout the term. The borrower(s) will know exactly how much interest and principal are being paid (this […]

1. What is LTV? Loan to value (LTV) is a ratio comparing the mortgage loan amount requested to the appraised property value or purchase price. The resulting percentage is a risk indicator for lenders when determining the borrower’s ability to repay the loan. So… Most residential lenders have determined that an 80% loan to value […]

Having trouble saving money for a 5% down payment? No worries, more and more lenders are accepting borrowed money from lines of credit and similar products for a down payment. Down payments can also be: From sale of an asset Gifted by an immediate family member

What is the stress test? During the qualification process, lenders use the qualifying rate to measure the borrower’s ability to repay the mortgage over the lifetime of the loan. It is intended to protect Canadians who may be subject to higher interest rates in the future. All mortgages will be required to qualify at the […]