Helping you every step of the way.
As Canada’s most comprehensive source of mortgage information and brokerage services, Mortgagepedia takes the stress out of the home buying process. Our job is to find the right mortgage lender for you while enhancing your mortgage knowledge. With over 15 years of experience, Mortgagepedia nerds are experts at everything there is to know about the Canadian mortgage space. We offer a range of mortgage services to suit your needs, whether you’re buying your first property, looking to do home renovations, or buying a second property, we got you totally covered. Take a look at our services below and let us know how we can get the ball rolling:
Renewals and Transfers - Just received your renewal notice? Don[‘’t just settle because you’re comfortable. Mortgage renewals are often the most neglected, and we get it. Taking the time to shop around is time-consuming, but think of it this way, it’ll pay off if you can land yourself a better rate. Plus, Mortgagpedia can handle it for you. Bring in your renewal and we’ll try our best to beat it. If it leads to a better rate, why not?
Purchasing a Second Home and Investment Properties - As your family grows, so do your needs. Oftentimes a second home can mean an easier commute if your work-life requires travel or maybe you’ve always dreamed about owning a vacation home away from home. It’s a wonderful milestone to gain in a lifetime and even better when the process is simple and headache-free. We can certainly help by shaving time off the process at the best rates and terms on the market.
Refinancing - Interest rates can get you on a downward spiral. Credit card payments can feel like a bottomless pit as you pay hundreds to interest rates alone. One solution that works for property owners is to consolidate your debts into one payment at a lower interest by refinancing your mortgage today.
Newcomers to Canada - A mortgage program designed to help non-Canadian citizens make their dreams of homeownership happen. Newcomers with permanent residency can purchase a home with as little as 5% down, insured financing, and competitive interest rates.
Home Equity Line of Credit - Life happens and when it does, you may find yourself needing a new car, perhaps a total renovation on a flooded basement. Whatever the predicament, a Home Equity Line of Credit may be the best solution to get you out of a jam or maybe you’re looking to diversify your investments. The value can be as high as 80% of the market value of your current property and you can use your available HELOC at your convenience. If this sounds like a financial solution you need right now, reach out to us, find out more details on the requirements to get you approved, and let’s get things started for you.
Purchase Plus Improvement Mortgages for Home Renovations - When you absolutely love your home, but it’s in need of TLC and total refresh. Get your home renovations going with as little as 5% down.
First-time home buyers & our process.
From the time you first pictured yourself as an official homeowner to the moment that set of front door keys are placed into your hands, Mortgagepedia wants your entire experience of becoming a First-Time Home Buyer a memorable one. We meet a lot of first-time home buyers and we understand that purchasing a home is one of the most important and valuable financial decisions you will ever make. Let alone, it’s an incredible milestone to add to your growing book of memories.
Our intentions are always honest and solely focused on providing assistance to you every step of the way while providing a service that is simple and straight forward. Mortgagpedia will take care of the nitty-gritty details while you enjoy the buying process. We use our knowledge of the mortgage market to offer you financing solutions that suit your unique financial profile in order to get your mortgage approved at the best possible rate and most flexible terms.
As a First-Time Home Buyer, here’s what you can expect from the mortgage process:
Your credit score matters.
Essentially, your credit history paints a picture of your spending habits and perceived lending risk for the lender. If you’re skeptical about items that appear on your credit report, come chat with us. It’s worth taking a closer look because while every lender has a different set of requirements, no loan applications are created equal. It is important to understand the value of your credit score. Lenders check your credit score by requesting a credit report from one or both credit reporting agencies in Canada (Equifax and Trans Union) connecting you with the lender that best suits your needs, and provides you with information about any special programs you could qualify for.
The Pre-Approval process will allow us to find out the mortgage amount and interest rate you qualify for. As you begin the process, take some time to dot the I’s and cross the T’s with these minimal requirements:
It’s not every day that you sit down and go over the topic of the “Big B” however, it is the most important aspect to consider before you make major financial decisions like this. First things first, identify your financial starting point by taking a close look at your current budget. Take the time to complete a thorough listing of your and your family’s household income and expenses. This creates your financial profile and determine the maximum mortgage you can afford. Here’s something to consider: A housing expense ratio should not be greater than 32% the lower the ratio, the better. Lenders look at your gross income and monthly expenses to determine your eligibility as a potential home buyer. Maintaining a solid borrowing and repayment history is important, as lenders like to see at least one (preferably two) years of solid credit history. Generally, they want to see a minimum score of 600 with that being said, borrowing your down payment might affect this score requirement due to the added risk.
This is a general guideline for what a healthy budget could look like, but keep in mind that requirements are not set in stone. While one lender might turn you down, you could be a prime candidate for another. If you’d like a second pair of eyes to help you sort out your budget, just give us a call and we’ll be happy to help you create your financial profile and determine how much home you can afford.
Let’s dive right into it, do you have any debt?
Lenders also take into account your debts in addition to your income, credit history and employment. Common debts normally include your mortgage payment, credit card/loan payments, child support/alimony, etc. paid each month. What does your current debt payments add up to each month? Now compare it to your income. Ideally, the debt to income ratio shouldn’t be greater than 44%, as this makes it more difficult for you to afford your monthly payments. Think you could use some financial rearranging? Let’s get one of our financial experts to lend you a second pair of eyes and find a solution that just might work for you.
Tell us about your long-term employment.
Forget the stigma, you do not need to be rich to qualify for a mortgage. That being said, it helps if you have been at the same job or the same occupation for two consecutive years. This depicts stability to potential lenders. Of course, if you’ve only been in your current line of work for a short while, this doesn’t necessarily disqualify you for a mortgage, but two years of uninterrupted employment history ramps up your borrowing power.
To get the pre-approval process started, you’ll need to provide a current employment letter and pay stub (no older 30 days) to show proof of income. If you’re self-employed or have been in your current line of work for less than two years, lenders may ask for additional documentation, such as federal income tax statements.
Let’s talk ‘Down Payment’. The larger the deposit, the better.
Your down payment matters. While the minimum required down payment (on a house priced $500,000 or less) is 5%, you can significantly enhance your buying power with a higher down payment. The benefit of having a down payment of 20% or more is that it prevents the need to purchase mortgage default insurance and significantly lowers your monthly mortgage payments. Here’s another thing interesting fact to note, houses priced $500,000 or higher, the required down payment is 5% on the first $500,000 and 10% on the remaining amount.
While it doesn’t apply to every life decision, buying a home with someone is certainly a “better together” moment. Why? It increases your buying power. Applying with a co-signer enhances your financial profile and chances of acquiring a mortgage. Not only that, it increases the chances of getting a better interest rate and helps both signers build credit.
It pays off to get help. Your first mortgage application should be nothing less than stellar to ensure the best possible results. Our Mortgage Specialists will take care of you every step of the way while providing you easy solutions that are fit for your unique financial situation. Mortgagpedia has the experience and knowledge to make this a seamless and stress-free experience for you. Get started by filling our easy-to-follow online mortgage application and let us help you make owning a home a lifetime milestone to remember!