Mortgage FAQ — Answers to Your Most Important Questions
Mortgage FAQ: Honest Answers to Your Most Important Questions We’ve answered every question we get asked — from first-time buyers to seasoned investors. If you don’t see your question here, call us anytime. Ask Us Your Question → Jump to a section: General Questions First-Time Buyers Rates & Costs Self-Employed Renewal & Refinancing Investment Properties […]
Mortgage FAQ: Honest Answers to Your Most Important Questions
We’ve answered every question we get asked — from first-time buyers to seasoned investors. If you don’t see your question here, call us anytime.
General Questions
What does a mortgage broker do?
A mortgage broker acts as your advocate and intermediary between you and dozens of lenders. Instead of going to one bank and accepting whatever rate they offer, a broker shops your file to 90+ lenders simultaneously — banks, credit unions, monoline lenders, and private lenders — and negotiates the best rate and terms on your behalf. The entire service is free to you; brokers are paid a finder’s fee by the lender when your mortgage funds.
How is CTC Mortgages different from going to my bank?
Your bank can only offer you their own products at their own rates. CTC Mortgages has access to 90+ lenders, which means we can find you a better rate, more flexible terms, and solutions your bank simply cannot offer. We also specialize in complex files — self-employed borrowers, investors, new Canadians — that banks frequently decline. And unlike a bank employee, we work for you, not the lender.
How much does it cost to use CTC Mortgages?
$0 — always. Our services are completely free for the vast majority of clients. We are compensated by the lender when your mortgage funds. In rare cases involving private lending or highly complex files, a broker fee may apply — and we will always disclose this upfront before you proceed.
Where are you located? Do you serve my area?
We are based in Surrey, BC and serve clients across all of British Columbia and Alberta — including Vancouver, Burnaby, Richmond, Kelowna, Abbotsford, Calgary, Edmonton, and everywhere in between. The entire mortgage process can be completed remotely via phone, email, and e-signature, so your location within BC or Alberta is never a barrier.
First-Time Buyer Questions
What is the minimum down payment in Canada?
The minimum down payment depends on the purchase price: 5% for homes under $500,000; 5% on the first $500K + 10% on the remainder for homes between $500K–$999,999; and 20% for homes $1 million or more. If your down payment is less than 20%, your mortgage must be insured through CMHC, Sagen, or Canada Guaranty — an insurance premium is added to your mortgage balance.
Can I use my RRSP or FHSA for a down payment?
Yes. Under the Home Buyers’ Plan (HBP), first-time buyers can withdraw up to $35,000 per person ($70,000 for couples) from their RRSP tax-free, to be repaid over 15 years. The First Home Savings Account (FHSA) allows you to contribute up to $8,000/year (lifetime max $40,000) and withdraw funds tax-free for a qualifying home purchase — with no repayment required. We’ll help you optimize both programs.
What credit score do I need to get a mortgage?
Most lenders require a minimum credit score of 620–680 for insured mortgages (under 20% down). For conventional mortgages (20%+ down), lenders typically want 680+. If your score is lower, we have access to alternative lenders who can work with scores as low as 550 in some cases. We’ll review your credit profile and advise on the fastest path to approval.
What is the mortgage stress test?
The federal mortgage stress test requires all borrowers to qualify at the higher of: (a) your actual mortgage rate + 2%, or (b) 5.25% — whichever is greater. This ensures you can still afford your mortgage if rates rise. The stress test applies to all insured and uninsured mortgages at federally regulated lenders. We’ll calculate exactly how much you qualify for before you start shopping.
What closing costs should I budget for?
In addition to your down payment, budget for: Legal/notary fees ($1,500–$2,500), Property Transfer Tax (BC: 1% on first $200K, 2% on $200K–$2M; Alberta: no PTT but there is a land title transfer fee), Home inspection ($400–$600), Title insurance (~$300), and Moving costs. First-time buyers in BC may qualify for a PTT exemption on homes under $835,000.
Rates & Costs
What’s the difference between fixed and variable rates?
Fixed rate: Your rate and payment are locked in for the entire term (typically 5 years). Ideal for borrowers who value payment certainty and are risk-averse. Variable rate: Your rate fluctuates with the Bank of Canada’s prime rate. Historically, variable rates have been lower over time, but payments can change. The right choice depends on your financial situation, risk tolerance, and rate outlook — we’ll help you decide.
What is a rate hold and how long does it last?
A rate hold locks in today’s rate for up to 120 days while you shop for a home. If rates go up during that period, you’re protected. If rates go down, you can typically take the lower rate. We recommend getting a rate hold as soon as you’re seriously considering buying — it costs nothing and protects you from rate increases.
What is an amortization period?
The amortization period is the total length of time it takes to pay off your mortgage in full. The maximum amortization for insured mortgages (under 20% down) is 25 years. For conventional mortgages (20%+ down), lenders may allow up to 30 years. A longer amortization means lower monthly payments but more interest paid over time. A shorter amortization means higher payments but significant interest savings.
Self-Employed Mortgages
Can I get a mortgage if I’m self-employed?
Absolutely. Self-employed mortgages are one of our specialties. The challenge is that many self-employed borrowers write off business expenses, which reduces their taxable income — and banks use this lower number to qualify them. We have access to lenders who use stated income programs, bank statement verification, and gross revenue to qualify you, rather than just your Line 150 income. Learn more on our Self-Employed page.
How long do I need to be self-employed to qualify?
Most traditional lenders require 2 years of self-employment history. However, we have access to lenders who will consider borrowers with as little as 1 year of self-employment, particularly if you have a strong credit profile and a significant down payment. If you’re newly self-employed, we’ll map out the fastest path to qualification.
Renewal & Refinancing
Should I just sign my bank’s renewal letter?
Almost never. Banks send renewal letters knowing that 70% of Canadians will sign without shopping around. Their initial offer is rarely their best rate. By shopping your renewal through a broker, you can often save 0.25%–0.75% — which translates to thousands of dollars over a 5-year term. The process takes less than a week and costs you nothing. Learn more about mortgage renewals.
When should I start shopping my renewal?
Start shopping 4–6 months before your maturity date. This gives you time to lock in a rate hold (up to 120 days) and explore all your options without feeling rushed. Many lenders allow you to start the renewal process up to 120 days early with no penalty.
What is refinancing and when does it make sense?
Refinancing means breaking your current mortgage and replacing it with a new one — typically to access your home equity, consolidate debt, or get a better rate. It makes sense when: (1) you want to consolidate high-interest debt into your mortgage at a much lower rate, (2) you need funds for renovations or investments, or (3) the interest savings outweigh the penalty to break your current mortgage. We’ll run the numbers for you to determine if it makes financial sense.
Investment Property Questions
What’s the minimum down payment for an investment property?
Investment properties (non-owner-occupied) require a minimum of 20% down — mortgage insurance (CMHC) is not available for investment properties. For properties with 2–4 units where you occupy one unit, you may qualify with as little as 5–10% down. We’ll help you structure your purchase to maximize your borrowing power.
Can rental income be used to qualify for a mortgage?
Yes — but the rules vary by lender. Most lenders will count 50–80% of rental income toward your qualifying income. Some lenders use a rental offset approach (rental income reduces the mortgage payment for qualification purposes), while others use a DSCR (Debt Service Coverage Ratio) model. We’ll identify which lender and program maximizes your purchasing power. Learn more about investment property mortgages.
Still Have Questions? We Love Answering Them.
No question is too basic or too complex. Book a free 15-minute call with Paramvir or Jimmy and get straight answers about your specific situation.
Or call/text directly: 778-887-6859
Serving BC & Alberta — Surrey, Vancouver, Burnaby, Kelowna, Calgary, Edmonton & beyond