Brad MacDonald Financial

 You should use a mortgage broker instead of a bank branch because brokers provide access to dozens of lenders, lower interest rates, and free services for standard deals. Why Choose a Mortgage Broker?

• Easier to Contact: When you contact me I promise to get back to you in minutes, not days. No in person appointment required, I will work around your schedule, not just 9:30am to 4pm Monday to Friday, If you want to talk mortgages anytime of day give me a call/text anytime! (613) 334-6825
• More Choices: Shop across major banks, credit unions, and trust companies instead of being restricted to one single lender.
• Better Rates: Leverage wholesale pricing and volume discounts to secure a lower rate.
• No Direct Cost: Lenders pay the broker's commission on standard prime approvals, meaning the service is free for you.
• Flexible Approval: Navigate complex financial situations like self-employment, unique property types, or credit challenges much easier.
• Single Credit Check: Submit one application that shops multiple institutions without hurting your credit score with multiple inquiries.

• Budget clarity: Know exactly how much money a lender will give you based on your verified income, debts, and down payment.
• Rate protection: Lock in an interest rate for 90 to 120 days, protecting you if rates go up while you shop.
• Seller appeal: Real estate agents and sellers take you seriously, and a pre-approval letter lets you make a fast offer when you find the right property.

In order to get started with your mortgage application will will need to collect some documents to help verify your identity and prove your income. 

• Here are a list of common documents we will need:

1. 2 Pieces of Government ID (Driver's License, Passport, etc) (To verify your identity)
2. 90 day history of your chequing account (To confirm your deposits line up with income)
3. Letter of employment (To confirm your employment)
4. Previous 2 years NOAs (Notice of Assessments) (To verify your income)
5. Previous 2 years T4s (To verify your income) - or- T1 Generals (if self employed or commission income)
6. Previous 2 paystubs (to verify your income)

• We also need an overview of your Net Worth (Assets & Liabilities)

1. List of all current assets (Real Estate, Cash, Stocks, Bonds, Vehicles, etc.)
2. List of all current debts (existing mortgages, HELOCs, Auto Loans, Student Loans, Credit Cards, Lines of Credit, Personal Loans, etc.)
3. Consent to Credit Check (You will have to sign an authorization to pull credit)

 The primary differences between A lenders, B lenders, and private lenders lie in their strictness of rules, who they are, and how they judge risk: A lenders are traditional big banks with the lowest rates, B lenders are regulated alternative institutions with flexible rules, and private lenders are non-institutional groups or individuals lending based on property equity. 

A Lenders (Traditional Banks)

• Who they are: Big national banks and major credit unions.
• Rules: Strict federal guidelines, including the mortgage stress test, high credit score requirements, and fully documented traditional income (like T4 slips).
• Cost: Lowest interest rates available.

B Lenders (Alternative Lenders)

• Who they are: Regulated trust companies and alternative financial institutions.
• Rules: More relaxed than A lenders; great for self-employed workers or people with minor credit issues, but still require proof of income and basic credit assessment.
• Cost: Moderately higher interest rates than A lenders (often about 1% higher) plus lender fees. 

Private Lenders

• Who they are: Private individuals, syndicates, or Mortgage Investment Corporations (MICs).
• Rules: Asset-based; they care very little about your credit score or job history and focus almost entirely on the equity and value of the property. Used as a fast, short-term fix (1 to 3 years).
• Cost: Highest interest rates (often 10% to 18%) and high setup fees (1% to 3% of the loan).

Typical closing costs when buying a home range from 1.5% to 4% of the property’s purchase price. Key expenses include land transfer taxes, legal fees, and title insurance. 

Major Closing Costs

• Land Transfer Tax: Usually the largest single expense, calculated as a percentage of the purchase price by provincial and sometimes municipal governments (first-time buyers may qualify for rebates). 
• Legal Fees & Disbursements: Paid to a real estate lawyer to handle title transfers and mortgage registration, typically costing $1,500 to $3,000. 
• Title Insurance: Protects against property fraud or boundary errors, generally costing $250 to $500. 

Additional Fees to Budget For

• Home Inspection: Optional pre-purchase evaluation costing $400 to $700.
• Property Appraisal: Independent value assessment required by some lenders, costing $300 to $500.
• Closing Adjustments: Reimbursements to the seller for prepaid property taxes or utility bills, typically $500 to $1,500.
• Sales Tax on Mortgage Insurance: Applicable provincial sales tax if your down payment is under 20% and mortgage default insurance is added.

Yes, refinancing may allow access to up to 80% of your home’s value, depending on lender criteria.

 No, you do not always need a large 20% down payment to qualify for a mortgage. Minimum down payments in Canada start as low as 5% depending on the home's purchase price, though putting down less than 20% requires mandatory mortgage default insurance. Minimum Down Payment Tiers

• $500,000 or less: 5% of the purchase price.
• $500,000 to $1.5 million: 5% on the first $500,000, and 10% on the portion above $500,000.
• $1.5 million or more: 20% flat of the purchase price (default insurance is not available at this tier). 

Key Rules and Costs

• Mortgage Default Insurance: Required if your down payment is under 20%, protecting the lender. You can check guidelines via the Canada Mortgage and Housing Corporation. 
• Exceptions: Lenders may demand a higher down payment (or 20%) if you have a weak credit history or are self-employed. 
• Stress Test: All federally regulated mortgages require you to pass a stress test to prove affordability, regardless of your down payment size.

No, pre-approval is typically free and does not commit you to a lender.

HELOC rates are usually variable and tied to the prime rate, meaning payments can change over time.

Yes, refinancing can help combine high-interest debts into a single, lower-rate payment, subject to approval.

Ideally, start 3–6 months before your term ends or when interest rates drop to secure better terms.

Fees may include appraisal, legal, administrative costs, and possible prepayment penalties.

Yes, most lenders offer monthly, bi-weekly, or weekly options. Bi-weekly payments can reduce interest over time.

Yes, they support borrowers with non-traditional income, self-employment, or credit challenges.

Typically, within a few weeks once all documents are submitted and approved.

It depends on your goals. Fixed rates offer stability, while variable rates may offer savings if rates decline.

Most lenders require at least 20% equity. HELOCs may allow access to 65–80% of your home’s value.