Asked Questions

Preparing to Enter the Market

1Why should I use a mortgage broker?
There are several benefits to seeking mortgage broker services. The majority of people go straight to their bank to get a mortgage, without consulting a mortgage broker. They are unaware of the free consultation and exceptional benefits that come when working with a mortgage broker. We are able to access our vast network and lenders to not only find you the best rates, but also different programs, term options, special product advantages, and so much more!
2What does it cost to work with a broker?
We provide free consultations! There is absolutely no charge for our services for you on a standard mortgage transaction. In most cases, the bank or lender will directly compensate us with an industry standard finder’s fee for arranging the mortgage, with no additional cost to you.
3Should I enter buy or rent?
You currently rent, but are constantly debating whether or not you should continue to rent or purchase a home. This is the dilemma many people face all the time! There are several factors to consider when deciding on what to do:
  • The stability of your personal, professional, and financial situation
  • Costs associated with purchasing and maintaining a property
  • Your personal and financial goals
  • Current state of the real estate & mortgage market
Feel free to reach out to us. We are happy to assess your situation and help you breakdown what your options are. You can also visit our calculators (link with different font colour) section to learn more.
4Am I ready to buy a property?
There is no simple answer to that question! Buying a property is a great and solid investment. So the fact that you are thinking of doing so is a great first step! It is important to consider what your current household income is, what your current monthly debt payments are, what you pay for rent, and what your financial goals are. The great thing about speaking with one of our mortgage professionals is that we will be able to assess your situation and see if getting a mortgage makes sense!
5What information and documentation do I need?
You will have to provide your personal details, 3 year address and employment history, and what you have as assets. We will also go through your credit report to analyze liabilities and your credit history. In terms of documentation, it varies from situation to situation, but generally you will need to provide:
  • Government Issued Photo ID
  • Documents supporting income (type of documents depends on occupation type. Contact us to find out what you need specifically provide)
  • Mortgage balance statements if you currently have a mortgage
6What do I need for a pre-approval?
A pre-approval is official and requires the same information and documentation as when applying for a mortgage. You will need to gather documents that support income, credit, etc….
7What happens if I don’t qualify for a pre-approval?
Not to worry! You might have just switched to a new job, had some credit issues, or don’t have a downpayment saved up yet! Whatever the situation may be, we’ll plan on getting over those hurdles and pre-approved in no time.
8How much can I afford?
What you can afford will depend on a few factors: your income, your current debt payments, estimated property tax and insurance costs, and estimated mortgage interest rate and term type. You can contact us for more information, or check out the mortgage affordability calculator in our resources section.
9What is the minimum down payment needed to purchase a home?
A minimum of 5% down payment is needed to purchase a home, subject to specific conditions. Here is a breakdown of the minimum down payment required depending on the purchase price of the home:
  • Home Price = Less than $500,000 → Min. Down Payment = 5%*
  • Home Price = Between $500,000 & $999,999 → Min. Down Payment = 5% of first $500,000, and 10% of the amount over $500,000*
  • Home Price = $1,000,000 or more → Min. Down Payment = 20%
*Mortgage loan insurance is required for a downpayment less than 20%
10What can I use for a down payment?
  • Personal Funds: this encompasses what amounts you have saved from your pay cheques, investments, etc...
  • RRSPs: The Home Buyer’s Plan (HBP) allows you to use up to $35,000 from your Registered Retirement Savings Plan (RRSP) towards a down payment. It is important to keep in mind that you have to deposit the amount you used back into your RRSP account over 15 years. For example: you take $15,000 out of your RRSP for a downpayment. Depositing $1000 into your RRSP every year for 15 years would satisfy the repayment condition!
  • Gifts: You can receive money from your family to use as a down payment.
  • Borrowed Funds: In some situations, you can use borrowed money as a down payment.
11Are there any other costs that I need to be aware of?
You will need more than the minimum of 5% for a downpayment when looking to get a mortgage. You will have to account for legal costs, appraisal fees, title insurance and land transfer tax. Use the mortgage payment calculator to enter scenarios and see estimated costs, or contact us for more information.
12What is a loan-to-value ratio (LTV)?
LTV is the ratio of the mortgage to the value of the property. For example: You are looking to purchase a property for $500,000. You make a down payment of $50,000 (10% of the purchase price), meaning the LTV is 90% which is a high-ratio mortgage. If you were to make a down payment of $100,000 (20% of the purchase price), the LTV would be 80% which is a conventional mortgage.
13What is mortgage insurance?
Mortgage insurance exists to protect the banks & lenders if a borrower ever defaults the mortgage. If you are making a down payment less than 20%, you are required to get mortgage insurance. If, however, you make a downpayment of 20% or higher, mortgage insurance is not required. Mortgage insurance is provided by Canada Mortgage & Housing Corporation, Sagen , or Canada Guaranty.
14I went to my bank and got declined for a mortgage, what should I do?
Fortunately for you, we have access to over 100 banks and lenders across the country! There may be options out there for you at one of our other lender partners. There are hundreds of mortgage solutions that we can explore to get you something that works! We will also strategize on how we can help your credit improve and get back to where it needs to be.
15My credit is not the strongest. Does that mean I can not get a mortgage?
No, you can still get a mortgage! Credit is one of the factors that are taken into consideration when assessing your mortgage eligibility. Equitis Mortgage Group has access to over 100 banks and lenders, with hundreds of products and programs for clients in certain circumstances. We have not only been able to help many people with weaker credit secure a mortgage, but also to improve their credit allowing for enhanced mortgage program access in the future! Visit our Credit Challenged section in the services tab to learn more.

Rates & Term Options

1What is a fixed rate?
Fixed rate mortgages often appeal to clients who want stability in their payments, manage a tight monthly budget, or are generally more conservative. For example, young couples with large mortgages relative to their income might be better off opting for the peace of mind that a fixed-rate brings.
2What is a variable rate?
A variable rate mortgage often allows the borrower to take advantage of lower rates – the interest rate is calculated on an ongoing basis at a lenders’ prime rate minus or plus a set percentage. For example, if the current prime mortgage rate is 5.5 percent, the holder of a prime minus 0.5 percent mortgage would pay a 5.00 percent variable interest rate.
3Should I choose a variable or fixed rate?
Variable and fixed rates are determined based on 2 separate market factors. Which one you should go with will depend on your financial goals, what the rates currently are, amortization length, and which set of advantages/disadvantages suit your needs. Contact us today, and we will help determine which option is best for you!
4What is an open term mortgage?
You can make additional payments or pay off the remaining mortgage balance without any penalties. Rates are usually higher with an open mortgage term.
5What is a closed term mortgage?
There will be different prepayment privileges depending on the lender and the mortgage product. Sometimes there will be a prepayment penalty that must be factored in. In many cases though, the lender will have prepayment options or waive the penalties. Rates on a closed term will be lower that an open term.
6How do I know what term length I should choose for my mortgage?
That depends on what your goals and aspirations are. Some clients know that they are buying a property as a short term investment, so decide to get a shorter term. Another client has a secure job and stable life, which inclines them to choose a longer term option. Contact us now to see what option suits you best!
7What is the difference between the mortgage term and amortization period?
Mortgage term is the length of time that you use a particular mortgage product, including the associated rate(s), lender, and conditions. Once your term is up, you can choose to remain with that product, or switch to another one. Mortgage terms range from 1 year terms to 10 year terms. Amortization period is the length of time that it will take you to pay off the mortgage completely. The amortization period is always longer than the mortgage term, where the greater the length correlates to lower monthly payments The maximum amortization length for a high-ratio insured mortgage is 25 years, whereas the maximum is 35 years for conventional mortgage.

Mortgage Management

1My mortgage renewal date is coming up, what do I do?
Give us a text or call, or send us an email! Equitis Mortgage Group will help you assess things have been throughout your mortgage term, if there are better rates out there for you, what you can do to get more money, and if it makes sense to stick with your current mortgage product or switch to a more advantageous option!
2What is home equity?
Home Equity = Property Value - Remaining Mortgage Balance Home equity depends on a number of factors! The size of the initial downpayment, how long you have had the property for, what the current value of the home is, and what your mortgage balance is.
3What can I use my home equity for?
You could use your home equity for many things including new investments, renovations, vacations, and much more!
4How do I access my equity?
You can access your equity with a full mortgage refinance, second mortgage, or a home equity line of credit. Check out our refinance (link to refinance section of renewals & refinance service page) page to find out more.
5How can I pay off my mortgage faster?
Depending on the mortgage product you have, you can pay up to 15% of the original mortgage per year, or increase your monthly payments by 15%. Please check the conditions of your mortgage to find out more.
6I’m selling my home, what happens to my mortgage?
The proceeds from the sale will be used to pay off your current mortgage. If you were in a closed term, you will be subject to the prepayment penalty. If you are selling your home and purchasing a new one, you may have the option of transferring mortgage. Contact us to find out more!

What People Have To Say

Check out what people are saying about Equitis Mortgage Group

  • Melissa Abunnadi
    Purchasing our home was made easier with the help of Okhtay! This was our first home purchase and he was incredibly professional and thorough with every aspect of his work. He explained the steps of the process, he was always quick to respond, and I felt confident he was putting 110% into us as clients. He is excellent to work with and I highly recommend him as your mortgage broker for your next real estate purchase!
    Melissa Abunnadi
  • Julien Manac'h
    Being a first time home buyer meant I was completely new to the whole mortgage process. Okhtay guided me through each step seamlessly, explaining my various options along the way, getting me the best rate, and making sure I felt informed and comfortable throughout each decision.

    Not only that; anytime I had any questions, he was a phone call away. I could not recommend Okhtay more. In fact, when my sister needed a mortgage, I made sure he was the one to do it!

    Thanks for all your help! You made a stressed, first time home buyer feel at ease. The hardest part of the whole process was walking through the front door!
    Julien Manac'h
  • Romain Penet
    I chose to deal with Okhtay when purchasing my first home after meeting with a few different mortgage brokerages. He was very easy to deal with and did a great job leading me through the process. I didn’t know anything about mortgages, but his professionalism and knowledge made me feel very confident with my investment. I am very happy with the service he provided and have since recommended them to all of my friends and extended family.
    Romain Penet
  • Daniel Margarit
    My experience working with Okhtay was great. I was a first-time home buyer and he was unbelievably helpful. Okhtay made the mortgage process feel so much less-stressful and he took care of so many details and factors that I wasn’t even aware of. His expertise and experience in mortgages helped me learn so much, but also he helped me secure the best options and products for my purchase. I would highly recommend Okhtay as Vancouver’s top mortgage specialist.
    Daniel Margarit
  • Nitesh Verma
    Working with Okhtay was a stress free experience. He was great at educating me with the process and making it as seamless as possible. Being able to find me better then standard interest rates was a great bonus to the already amazing service I received.
    Nitesh Verma

Latest News & Articles

Check out our selection of mortgage related news and articles.

January 24, 2022

December Home Sales Top Off Record Year

January 17, 2021 Dr. Sherry Cooper – Chief Economist at Dominion Lending Centres Housing Affordability Erodes Further With Record-Low Supply Housing affordability remains a huge political […]
January 24, 2022

Canadian Home Sales Surge in October

November 15, 2021 Dr. Sherry Cooper – Chief Economist at Dominion Lending Centres Home Sales Surge in October Today the Canadian Real Estate Association (CREA) released […]
October 1, 2021

Why a Pre-Approval May Be Misleading and Does Not Guarantee You Get Approved for a Mortgage

October 5, 2021 Hassan Amhaz – BDM & Mortgage Professional As brokers, we have individuals approach us on a regular basis looking to secure a pre-approval. […]

Book Your

Let us work for you and do all the heavy lifting. All you have to do is let us know what your goals and preferences are!

    call to book your consultation