Got Questions? Let’s explore together!

A conventional mortgage is a home loan where you put down at least 20% of the purchase price, and don’t require mortgage default insurance (like CMHC, Sagen, or Canada Guaranty).

I’m sometimes asked whether lenders are more strict with conventional vs insured mortgages, and the truth is:

How are you really looking at it?

For conventional mortgages, lenders don’t have to adhere to hard and fast rules that insurers put in place (like hard-stop ratios of 39/44 for GDS/TDS), but they may scrutinize things that they may not do quite as much with insured loans.

So - conventional mortgages come with their pros and cons. More flexibility with ratios (sometimes exceptions even on the prime side up to 48% TDS - although more of a rarity), but other things like property types can make it harder (super remote properties? 3 season cottages? They often like to hide behind the shield of insurance).

A high-ratio mortgage, or otherwise known as an insured mortgage, is one where you purchased a property with less than 20% down and thus requiring the default insurance through one of the big 3 insurers - CMHC, Canada Guaranty or Sagen.

Benefits of a high-ratio mortgage are:

• Better rates, since your mortgage provides security for the lender and their respective investor (protected by the insurer)

• Being able to buy a home with less than 20% down (a reality for most, especially first time homebuyers)

Drawbacks?

• Adhering to strict qualification guidelines for debts vs income (GDS/TDS ratios at 39/44)

• You have to pay for the insurance premium that protects the lender, not you - and it gets tacked on to your mortgage balance (so you’re paying interest on that as well)

• Paying taxes on the premium out of pocket at closing

TL;DR:

A high-ratio mortgage is when you buy a home with less than 20% down. It comes with mortgage insurance and tighter approval rules, but also unlocks homeownership sooner and can qualify you for better rates.

An Open-Term mortgage is a mortgage type that would allow you to pay out your mortgage in full (or large chunks of the principal balance) without penalty.

Most mortgages are closed with limits on how much you can pay off annually prior to getting dinged with a penalty, whereas the open mortgage gives you flexibility.

But with any perks, there’s a cost - Open-Term mortgages usually come with much, much higher interest rates than their closed counterparts.

Why would anyone choose an open term mortgage?

Good question. They’re good for:

• Someone planning to sell their home soon, and they just passed the maturity of their current closed mortgage term (renew into open term at maturity)

• Someone expecting to pay off their mortgage quickly (like with an inheritance, or a large bonus (delightful))

• The mortgage is only needed for short-term financing, like a bridge loan or a construction mortgage

• Don’t want to be locked into a contract for whatever reason (probate, separation, etc).

Open-term mortgages often give you the flexibility to figure out your next steps as well prior to locking into a closed-term mortgage - since there’s no penalty, you can pay out and restructure without penalty. You’re buying time with the higher interest rate, for whatever life throws at you.

TL;DR:

An open mortgage lets you pay off your loan early without penalty, but you’ll usually pay a higher interest rate. It’s best for short-term situations where flexibility matters more than cost.

A closed mortgage is a home loan where you agree to keep the mortgage for the full length of the term (usually 1 to 5 years), with limits on how much extra you can pay down each year.

You can’t fully break the mortgage or pay it off early without a penalty, unless you sell your home or hit the end of your term.

Can you make extra payments?

Yes, but only up to your lender’s prepayment limits, which are typically:

• 10% to 20% of the original mortgage balance per year

• Option to increase your payment by 10% to 20% annually
  (If you go over those limits, a prepayment penalty kicks in.)

Why do most people choose closed mortgages?

• Lower interest rates than open mortgages

• Good for borrowers who plan to stay in their home for the full term

• Still allows some flexibility to pay it down faster, within limits

TL;DR:

A closed mortgage gives you a lower rate, but comes with limits on early payments and penalties if you break the term early. It’s the most common mortgage type in Canada.

A portable mortgage lets you move your existing mortgage to a new property if you sell your home and buy another, without breaking the mortgage or paying a prepayment penalty.

You’re essentially “porting” your current rate, balance, and remaining term over to the new home.

Why would you want to port?

• To avoid a prepayment penalty

• To keep your current interest rate (if rates have gone up)

• To keep your term intact, instead of starting a new mortgage

What’s the catch?

• You must qualify for the new home with your lender

• Not all mortgages are portable, especially some variable-rate or promotional products

• If your new home is more expensive, you may need to blend the rate (called a port-and-increase)

• You usually need to close the sale and purchase within a short window (often 30–90 days)

It’s not automatic, you need your lender’s approval, and you still need to reapply.

TL;DR:

A portable mortgage lets you transfer your current mortgage to a new home, without starting over or paying a penalty. But it comes with rules, timelines, and lender discretion.

An assumable mortgage lets a buyer take over the seller’s existing mortgage, including their interest rate, balance, and remaining term.

In theory, it’s a way to lock in a lower rate from the past instead of taking out a new mortgage at today’s higher rates.

Sounds great? It does, but in practice, assumptions are rarely approved and come with strict lender rules, high down payment requirements, and a lot of red tape.

Want the full breakdown? Click here to read more about assumable mortgages and why they’re harder to pull off than most people think.

A collateral charge mortgage is when a lender (usually a big bank) registers your mortgage for more than you actually borrowed. This lets them offer you more credit later (like a HELOC), but it also makes it harder to switch lenders at renewal.

Unlike standard mortgages, most lenders won’t accept a collateral transfer, which means you may have to refinance (and pay legal fees) just to move your mortgage elsewhere.

Want to learn more? Read more about collateral charges, their pros and cons, and whether it’s a good choice for you!

A reverse mortgage lets homeowners aged 55 and up unlock home equity without selling or making monthly payments. The loan is repaid when you sell the home, move out permanently, or pass away.

We have worked with Bloom Financial and HomeEquity Bank—the two main reverse mortgage providers in Canada in the past.

While both are reputable institutions, reverse mortgages are not to be taken lightly. There are pros and cons, and they should be weighed carefully against other options like refinancing or a home equity line of credit (HELOC).

⚠️ A word of caution:

If you feel a mortgage broker is overly eager or pushy about a reverse mortgage, it’s worth asking why.
Reverse mortgages pay much higher commissions, often double, maybe even more, what a broker earns on a line of credit or refinance.

Even if a reverse mortgage ends up being the right move, we strongly recommend getting a second opinion, to make sure it's truly in your best interest.

Most of the time, there are better choices out there that don’t pre-sell your equity + interest. Let’s chat about what the best move would be for you in this next stage of life.

A bridge loan is a short-term loan that helps you buy your next home before your current one sells, especially when your down payment is coming from the sale proceeds.

It’s designed to “bridge the gap” between two closings, so you’re not left homeless or scrambling for cash.

How it works:

• Usually 45 days or less, interest-only, and open-term (no penalty to pay out early)

• Secured against the home you’re selling, not the one you’re buying

• Once your sale closes, the bridge loan is repaid automatically

• Most of the time, your new mortgage lender offers it, but if not, we may explore private lenders

TL;DR:

Bridge loans let you access your sale proceeds early, so you can close on your new home without stress.
Yes, they come with higher interest rates, but they’re short-lived, and the convenience is often worth every penny.

A HELOC (Home Equity Line of Credit) is a revolving line of credit secured against your home. Think of it as the heavyweight version of a regular credit line, with way better rates and a much bigger limit.

Key Features:

• Interest-only payments on what you use

• Open term – pay it off anytime without penalty

• Typical rate: Prime + 0.50% (way better than most unsecured credit)

• Re-usable – borrow, repay, borrow again

Common Uses:

• Home renovations

• Investing

• Debt consolidation

• Buying a car (often cheaper than dealer financing)

• Building that chicken farm you've always dreamed of 🐓

Want to lock into a better rate?

You can lock portions of your HELOC into a closed-term mortgage if you want predictable payments or plan to pay it off over time.

TL;DR:

A HELOC gives you flexible access to your home’s equity, with low(er) rates, no fixed payments, and total control. But like any line of credit, it’s smart to pay more than just the interest.

A cashback mortgage gives you a lump sum of money upfront when your mortgage funds. It sounds like free money, but there’s a catch. Or two.

Here’s what they don’t tell you (and why I can’t stand this kind of dishonesty):

• Higher interest rates than you'd otherwise qualify for

• Clawback penalties if you break the mortgage early (“Give us back the money we gave you!”)

• You're basically borrowing the cash at inflated rates

It’s marketed as a perk, but you're really paying it back (plus interest) over time. And if you leave early, the lender will demand that cashback money back.

A smarter alternative?

If you’re considering cashback for small renovations or updates, ask us about a Purchase Plus Improvements mortgage instead.
Same great rates, without the “free money” trap. Plus, if you break the mortgage early for whatever reason life throws at you, you’re not shocked with a clawback of 5k you weren’t expecting.

TL;DR:

Cashback mortgages aren’t free. You’re just paying for the money in other ways, through higher rates or painful penalties. Always read the fine print, and ask if there’s a better way to structure the deal.

An alternative lender offers mortgages to people who don’t fit the typical bank mold, whether it’s because of:

• Non-traditional income (self-employed, gig work, etc)

• Bruised credit

• High debt-to-income ratios

• Or other quirks that banks just won’t underwrite

Alternative lenders are more flexible than traditional banks, but they usually come with higher interest rates and shorter terms.

When do they make sense?

They’re often the best option if you:

• Were declined by a bank

• Need a short-term solution while you rebuild credit or income history

• Have a unique property banks won’t finance (rural, airBNB, etc)

But not all alternative lenders are the same, some specialize in rural properties, others are better with credit issues. That’s why it’s critical to work with a broker who knows how to match you with the right fit.

TL;DR:

Alternative lenders offer more flexibility, but at a cost. They’re a great stepping stone back to traditional financing, if the mortgage is set up properly from the start.

Read more about Alternative Lenders we use here!

A private mortgage is short-term financing funded by individuals or private companies, not banks or traditional lenders.

Private mortgages are usually a last-resort option when:

• You’ve been declined by banks and alternative lenders

• You need money fast (e.g. bridge financing, construction, urgent debt consolidation) - some privates can close in 48 hours.

• The lender risk is more than one an alternative lender would take on (construction/flip projects, poor credit cleanup as a second mortgage, etc).

What to expect:

• High interest rates which is tailored based on the particular situation and risk (Privates can be as little as 7.99%, but as high as 15% - depending)

• Setup fees and lender fees at closing

• Short terms (usually 6–12 months)

• Requires a clear exit plan (sale, refinance, etc)

TL;DR:

Private mortgages are expensive and high-risk, but they serve a purpose. When used strategically, for construction, bridge loans, second mortgages, or rescue financing, they can buy you time to reposition or recover.

👉 Always consult a broker who knows how to structure a private mortgage properly, the right plan makes all the difference.

Read more about private lenders we use here!