Edi Marinescu, Mortgage Broker, Licence #M19001746
Brokered through Mortgage Capital Investment, Brokerage Licence #10646
Buying, refinancing or renewing, compare the terms as well as the rate. Prepayment privileges, penalties and flexibility can matter as much as the rate itself.
Plain-language definitions, how a collateral charge works, why cash flow comes first, and a step-by-step checklist.
First homes, move-up homes and second properties, with the down payment and insurance rules explained up front.
Access equity, consolidate debt or change your amortization, with the penalty and costs shown before you decide.
Compare your lender's renewal offer against what other lenders will do before you sign it.
Beginner's guide
Three ideas that make every later decision easier.
1What is a mortgage?
A loan to buy a home, secured by that home. The lender pays the seller, you own the home, and you repay the lender over time with interest.
Where each year's payments go
In year 1, about $22,066 goes to interest and $11,142 to principal. By year 25, almost everything goes to principal.
Illustrative: $500,000 at 4.50% over 25 years, rate unchanged. Real mortgages renew every few years.
2Standard or collateral charge?
A charge is the lender's security registered on your home's title. What it can secure affects future borrowing and how easy it is to switch lenders.
$0Home value $800k
Registered on title: $500,000
Illustrative: $800,000 home, $500,000 mortgage. Registered amounts vary by lender; any extra borrowing still needs approval and must fit lending limits (65% of value for a line of credit, 80% overall).
3Why cash flow comes first
A lender approves a maximum. Your budget decides what's comfortable. Mapping your monthly cash flow before you shop shows the difference.
Left each month$1,422
Illustrative household taking home $9,400 a month; payments at 4.50% over 25 years. A lender's maximum isn't a target.
Every lender assesses the same application a little differently. The main factors are your income and how it's documented, your credit history, your total monthly debt payments, the down payment or equity, and the property itself.
Federally regulated lenders also apply a stress test: you qualify at the higher of 5.25% or your contract rate plus 2%. That affects how much you can borrow, not the rate you pay.
With less than 20% down, a mortgage must be insured against default, and the insurance premium is usually added to the mortgage. The minimum down payment is 5% of the first $500,000 of the purchase price and 10% of the portion between $500,000 and $1.5 million. Homes priced at $1.5 million or more need at least 20% down.
Insured mortgages can have a 30-year amortization for first-time buyers and for buyers of newly built homes. Otherwise, insured mortgages are limited to 25 years.
Two mortgages at the same rate can cost very different amounts if your plans change. Before you choose, it's worth comparing:
Qualification depends on lender underwriting. Rates, terms, fees and penalties vary by lender and are subject to change. Examples are illustrative only and are not a commitment to lend. Content reviewed October 20, 2026. Lending rules change; confirm current requirements before relying on them.
Nominal rate, compounded semi-annually (the Canadian convention for fixed rates).
Estimated monthly payment
$3,320.84
Illustrative only. Assumes one rate for the whole amortization, while real mortgages renew every few years at the rate available then. Lenders round and schedule payments in their own way. Not a rate offer or an approval.
Include any secured line of credit or second mortgage on the same property.
Loan-to-value
65.00%
Lenders use LTV to size the loan and price the risk. Maximum LTVs differ by purpose, property and lender: for example, refinances with federally regulated lenders are generally limited to 80%.
Uses your own value estimate. Lenders rely on their own appraisal, which may be different.
Rental and other property income, less vacancy and operating expenses, before mortgage payments.
Total mortgage payments over 12 months.
Debt service coverage ratio
1.25x
The property's income covers its mortgage payments 1.25 times. Each lender sets its own minimum and calculates income and expenses its own way.
Illustrative only. Lenders underwrite NOI using their own vacancy, expense and reserve assumptions.
Not necessarily, but a broker can show you how other lenders would treat the same application, including their terms, prepayment options and penalties. That comparison is useful even if you stay with your bank.
Federally regulated lenders must check that you could afford payments at the higher of 5.25% or your contract rate plus 2 percentage points. It limits the amount you can borrow; your actual payment is based on your contract rate.
For most residential mortgages from prime lenders, the lender pays the broker, so there is no direct fee to you. Some alternative and private mortgages involve broker or lender fees. Any fee is disclosed in writing before you commit.
Whether you're purchasing, refinancing, or reviewing an existing mortgage, start with a conversation about your circumstances and available options.