Mortgage & financing FAQ

Mortgage Squad Advisors is an independent, AI-powered Canadian mortgage brokerage (FSRA Brokerage Licence #13737). We help homebuyers, homeowners, and investors get mortgages from 50+ A, B, and private lenders, and we build technology — including Maya, a 24/7 AI mortgage assistant — to make the process simple.

Yes. We hold FSRA Brokerage Licence #13737, verifiable on the FSRA public registry, and operate under the appropriate provincial regulator in each market we serve. All our advisors are licensed and FINTRAC-trained.

Across Canada, with deep coverage in Ontario, BC, and Alberta. We're headquartered in Vaughan, Ontario and serve clients nationally — in person, by phone, and through our digital platform.

A bank can only offer you its own products. As a brokerage we shop 50+ lenders — big banks, monoline A-lenders, credit unions, alternative/B-lenders, and private lenders — to find the best fit and rate for your situation, often at no cost to you.

For most residential mortgages, our compensation is paid by the lender, so our service is free to you. For certain alternative, private, or commercial files, a broker fee may apply — it's always disclosed and agreed in writing up front.

They're our purpose-built AI tools: Maya is the 24/7 client advisor (chat, voice, 50+ languages), Finn is the agent copilot (file briefs, lender matching), and Vera is the compliance scanner (FINTRAC, OSFI/B-20, suitability).

A mortgage agent is licensed to deal in mortgages under the supervision of a brokerage; a mortgage broker holds a higher licence and can supervise agents. Both can arrange your mortgage — at Mortgage Squad you're matched with a licensed professional suited to your file.

Neither is universally better. A fixed rate locks your payment for the term (certainty); a variable rate moves with the Bank of Canada's policy rate (often cheaper over time, but it fluctuates). The right choice depends on your budget's tolerance for change and how long you'll hold the mortgage. Maya can stress-test both for you.

The amortization is the total time to pay off the mortgage (commonly 25–30 years). The term is the length of your current contract (commonly 5 years) — at the end of each term you renew. You'll have several terms over one amortization.

An insured (high-ratio) mortgage has less than 20% down and requires default insurance (CMHC, Sagen, or Canada Guaranty). With 20%+ down it's conventional/uninsured. Insured mortgages often get sharper rates but add an insurance premium to the loan.

A closed mortgage has the best rates but limits prepayment and charges a penalty to break early. An open mortgage lets you pay it off anytime without penalty, at a higher rate — useful if you expect to sell or pay a lump sum soon.

Federally regulated lenders must qualify you at the higher of your contract rate + 2% or 5.25%. You must prove you could afford payments at that higher rate, even though you pay your actual (lower) rate. Some alternative/private lenders don't apply it.

Most fixed mortgages are portable — you can move your existing rate and terms to a new property, often topped up at a blended rate if you need more. Porting avoids a prepayment penalty. We confirm your lender's port rules and timelines.

Closed mortgages usually let you prepay a percentage of the original balance each year (commonly 10–20%) and increase your payment, with no penalty. Using them shortens your amortization and saves significant interest.

Accelerated bi-weekly payments squeeze in the equivalent of one extra monthly payment per year, shaving years off your amortization and thousands in interest — usually with no downside if your budget supports it.

A co-signer is on title and the mortgage and shares ownership and responsibility; a guarantor backs the loan (and is liable if you default) but isn't usually on title. Both can help you qualify; which fits depends on the lender and your goal.

Title insurance (a one-time fee) protects against title defects and fraud and is standard on most files. An appraisal confirms the property's value for the lender; it may be waived on strong insured files or required and paid by you on others.

Yes — gifts from immediate family are widely accepted with a signed gift letter confirming the money isn't a loan, plus proof the funds are in your account before closing.

Fixed rates track Government of Canada bond yields plus a lender spread; variable rates move with the Bank of Canada's overnight rate plus/minus a spread to Prime. Your personal rate also depends on your credit, down payment, property type, and whether the mortgage is insured.

Shop multiple lenders (a broker does this in one application), keep your credit strong, and match the product to your file. The lowest advertised rate isn't always best — features like prepayment privileges and penalty calculation matter too.

A rate hold locks a quoted rate for a set window (often 120 days, and up to 150 with some lenders) while you shop or wait to close. If rates rise you keep the held rate; if they fall, we re-shop for the lower one.

Yes — if you bring us a better eligible offer, we'll beat it or pay you $500 (subject to program terms). It exists because, with 50+ lenders, we're confident in our pricing.

Brokers place volume across many lenders and access wholesale/broker-channel pricing and monoline lenders that don't have branches. That competition usually produces a sharper rate than a single bank's posted offer.

Common terms are 1, 2, 3, 4, 5, 7, and 10 years, fixed or variable. The 5-year fixed is the most popular, but a shorter term can make sense if you expect rates to fall or plan to move/refinance soon.

Rate direction follows the Bank of Canada (variable) and bond markets (fixed), which respond to inflation and the economy. We don't promise forecasts, but we'll model fixed vs variable and hold a rate so you're covered whichever way they move.

Posted rates are the lender's sticker price (and the basis for some penalty calculations); the discounted rate is what you actually pay. Brokers secure deeply discounted rates — and the penalty method matters as much as the headline number.

Start online or with Maya in a few minutes — no credit-bureau pull to begin. A licensed advisor then reviews your details and issues a written pre-approval, usually within 24–72 hours, which tells you your budget and holds a rate.

Typically: two pieces of government photo ID, two years of T4s/Notices of Assessment, recent pay stubs (or business financials if self-employed), 90 days of down-payment proof, and your purchase agreement once you have one. We send a precise checklist after a short intake.

A soft pre-qualification (or ballpark from Maya) does not affect your score. A formal pre-approval requires a credit check (a hard inquiry), which can have a small, temporary effect.

No — it's a strong indication based on the information provided. Final approval depends on full underwriting, the specific property, an appraisal, and that your situation hasn't changed (don't make big purchases or change jobs before closing).

Yes. You can apply, upload documents, and e-sign digitally, with a real licensed advisor on your file the whole way. You can also call us at (905) 553-8550.

5% on the first $500,000 of the price, 10% on the portion from $500,000 to $1.5M, and 20% above $1.5M. Under 20% down requires default insurance. Investment properties generally require 20%+.

The First Home Savings Account (FHSA) lets you contribute up to $8,000/year (tax-deductible, tax-free growth and withdrawal) toward a first home. The Home Buyers' Plan lets you withdraw from your RRSP toward a down payment, repaid over 15 years. They can often be combined.

It's mortgage default insurance required when you put less than 20% down. The premium is a percentage of the loan that rises as your down payment shrinks (roughly 2.8%–4.0%), and it's added to your mortgage.

Budget roughly 1.5%–4% of the price for land transfer tax, legal fees, title insurance, appraisal, inspection, and adjustments. Our closing-cost and land-transfer-tax calculators give you a precise estimate by province.

Yes — several provinces and cities (e.g., Ontario and Toronto) offer land-transfer tax rebates for first-time buyers, plus federal programs like the FHSA and HBP. Eligibility varies; we'll check what applies to you.

Lenders use two ratios: GDS (housing costs ÷ gross income, ~39%) and TDS (housing + all debts ÷ income, ~44%), tested at the stress-test rate. As a rough guide, many buyers qualify for ~4–4.5× household income, but down payment and debts shift it. Our affordability calculator gives you a real number.

The deposit is the cheque you submit with your offer to show good faith (held in trust); it's later applied toward your down payment, which is your total cash into the purchase. The deposit is part of — not on top of — the down payment.

It's a clause making your purchase conditional on securing a mortgage within a set number of days. It protects you — if financing falls through, you can walk away and recover your deposit. Send us the accepted offer immediately so we can satisfy it on time.

Yes — recent federal policy allows insured financing on owner-occupied 2–4 unit properties with as little as 5% down (up to defined price limits). Rental income can help you qualify. It's a powerful way to offset your mortgage.

About 120 days before maturity. That window lets you hold a rate and, if it makes sense, switch lenders with no penalty and no gap. Don't just sign the bank's first offer — it's rarely their best.

If another lender offers a meaningfully better rate or terms and you still qualify, switching can save thousands — at maturity there's usually no penalty to move. We shop the market and handle the transfer.

It's the charge to break a closed mortgage early. For variable it's typically three months' interest; for fixed it's the greater of three months' interest or an interest-rate differential (IRD), which can be much larger. Our calculator estimates it.

To access home equity (up to 80% of value) for renovations, investments, or to consolidate higher-interest debt into a lower mortgage rate; or to change your rate/term. We model the net cost (including any penalty) so it only happens when it pays.

A Home Equity Line of Credit lets you borrow against your home's equity (up to 65% LTV on a standalone HELOC), interest-only, redrawable any time. It's flexible for renovations or as a financial cushion.

Instead of breaking your mortgage and paying a penalty, your current lender 'blends' your existing rate with today's rate and extends the term. It can be convenient, but it isn't always the cheapest option — we compare it against switching before you decide.

A switch/transfer moves your existing balance to a new lender at renewal for a better rate (no new money, usually no penalty, minimal cost). A refinance changes the loan amount (e.g., to take out equity or consolidate debt) and re-underwrites the mortgage.

It's a mortgage registered for more than the loan amount so the lender can lend you more later without re-registering — but it can make switching lenders harder at renewal (a standard charge transfers more easily). We'll flag which type you have.

Rolling high-interest debt (cards, loans) into a lower mortgage rate can dramatically cut monthly payments and total interest — provided you have the equity and don't re-run the balances. We model the math so it genuinely saves you money.

Yes — it's a core part of our practice. We work with lenders that understand business-for-self income (add-backs, dividends, retained earnings), including stated-income and alternative programs. Two years of Notices of Assessment help, and 5% down is possible for many BFS files.

Yes. Newcomer programs exist at all major lenders, often accepting international credit history and limited Canadian credit. We help permanent residents, work-permit holders, and newcomers find the right path — and we speak 50+ languages.

Often yes, through B-lenders or private lenders, with a clear plan to move you back to A-lender pricing in 12–24 months. We'll be honest about what's realistic and what it costs.

Yes. Once you're discharged and have re-established some credit, financing is frequently possible. We specialize in these comeback files and map the route to prime rates over time.

For business-for-self borrowers whose tax returns understate true income, stated-income programs let qualified lenders reasonably estimate income from the business, supported by bank statements and proof the business is active. It's a legitimate path used by A and B lenders.

Sometimes — certain lenders accept one year (or less) of self-employment with strong supporting documents, or alternative/B-lender programs bridge the gap until you have two years of filings. We'll find the lender that fits your timeline.

A reverse mortgage lets homeowners 55+ access tax-free equity with no required monthly payments — the loan is repaid when you sell or move. It can fund retirement while you stay in your home; we explain the trade-offs honestly before you proceed.

A second mortgage sits behind your first and lets you tap equity (often via a B or private lender) for renovations, debt consolidation, or short-term needs — useful when breaking the first mortgage would be costly. Rates are higher, so we plan the exit.

Yes — act early. Refinancing, a private mortgage, or restructuring can often stop a power of sale or foreclosure and buy time to recover. Call us as soon as possible; the more runway we have, the more options exist.

Equifax Canada and TransUnion Canada are the two national credit bureaus. Lenders pull from one or both. Your score can differ slightly between them because lenders don't always report to both.

A-lenders generally look for ~680+ for the best terms; many programs work from ~600. Below that, alternative and private lenders can still help. Score is one factor — income, down payment, and debts matter too.

A soft pull (e.g., checking your own score, or a pre-qualification) doesn't affect your score. A hard pull happens when you formally apply for credit and can lower your score slightly and temporarily.

Pay every bill on time, keep card balances under ~30% of their limits, avoid new credit applications right before your mortgage, and don't close old accounts. Even a few months of discipline helps.

Rate-shopping inquiries for the same purpose within a short window are typically treated as a single inquiry by the scoring models, so working with one broker (one application to many lenders) protects your score.

Dispute it directly with Equifax and/or TransUnion; they must investigate. Correcting errors can raise your score. We can point you to the dispute process and time your application around it.

The application adds one hard inquiry and a new account, which can dip your score briefly. Over time, on-time mortgage payments build a strong credit history.

In Canada, most negative items (late payments, collections) stay about 6 years from the date of last activity; bankruptcies generally 6–7 years (longer for multiple). Hard inquiries typically show for ~3 years but stop affecting your score sooner.

Often yes. A-lenders usually want collections (especially tax/CRA) paid; if not, B-lenders and private lenders can work with them. We'll advise what to clear first to widen your options and improve pricing.

Newcomer programs accept alternative proof (international credit, rent/utility history) and limited Canadian credit. Opening a secured card and paying it on time builds a domestic score quickly. We specialize in thin-file and newcomer cases.

Keep balances under ~30% of each card's limit (lower is better) before you apply. High utilization is one of the fastest ways to drag your score down, and paying cards down is one of the fastest ways to raise it.

Yes — for multi-residential, retail, industrial, office, mixed-use, hospitality, and more, including construction and bridge financing. Commercial files are underwritten on the property's income (DSCR) as well as the borrower.

Yes. We arrange business financing including term loans, working capital, and government-backed options like the Canada Small Business Financing Program (CSBFP), alongside equipment and asset-based financing.

Financing or leasing to acquire business equipment (vehicles, machinery, tech) while preserving cash flow, with the equipment often serving as collateral. We match you to lenders that specialize in your asset type and industry.

Debt-Service Coverage Ratio measures a property's net operating income against its debt payments (lenders typically want ~1.1–1.25+). Commercial approvals weigh the property's cash flow, the borrower's experience and covenant, LTV, and the lease/tenant profile.

Yes — single units to multi-unit portfolios, including BRRRR and rental-offset/DSCR-style products. Rentals generally need 20%+ down; we'll model the cash flow and qualify the file.

Typically 25–35% for standard commercial (lower for some multi-residential), though it varies by asset type, tenancy, and the property's cash flow. Owner-occupied and CMHC-insured multi-unit deals can require less.

It's CMHC's insurance program for 5+ unit multi-residential properties that rewards affordability, energy efficiency, and accessibility with higher leverage (up to 95% LTV), longer amortizations (up to 50 years), and better rates. We structure files to maximize the points.

Yes — residential and commercial construction with progress-draw financing released at each stage, plus land and bridge financing. We line up the construction loan and the take-out (permanent) mortgage so the transition is seamless.

A pre-approval is often 24–72 hours. From accepted offer to funding is typically a couple of weeks once documents and the appraisal are in. Alternative and private files can move faster when speed is critical.

Yes — most documents are e-signed in-app or by email. FSRA-prescribed forms are provided in their required format. Everything is tracked and stored securely.

Data is encrypted in transit and at rest, access is role-based and audit-logged, and we comply with PIPEDA (and Quebec's Law 25). As a FINTRAC-reporting entity we follow strict identity-verification and record-keeping rules.

Only your advisor, the underwriting team, and the lender you proceed with. Co-applicants control their own information; documents aren't shared beyond what's needed to approve your file.

When an appraisal is required, it's usually ordered after your offer is accepted. On many insured purchases it's covered; on refinances and some files you pay (commonly $300–$500). We tell you up front whether one is needed.

It's the lender's formal written approval setting out your rate, term, amount, and any conditions to satisfy before funding. Once conditions are met and signed, the file moves to your lawyer for closing.

Your lawyer receives the mortgage funds, registers the mortgage and title, handles the land transfer tax and adjustments, and gives you the keys. We coordinate the lender and lawyer so funding lands on time.

Default insurance (CMHC/Sagen/Canada Guaranty) protects the lender when you put under 20% down. Mortgage life insurance is optional coverage that pays out your mortgage if you die. They're unrelated — and you usually have cheaper, more flexible alternatives to bank-sold creditor life insurance.

Not necessarily. Bank creditor insurance is convenient but the payout shrinks as your balance drops and isn't portable. A personally-owned term life policy is often cheaper, fixed, and follows you between lenders. We can point you to licensed insurance advice.

Not for your principal residence. Interest is generally deductible on the portion of a mortgage used to earn income (e.g., a rental property or investment). Always confirm with a tax professional for your situation.

Resale homes are generally exempt. New-construction homes are subject to GST/HST, but federal and provincial new-housing rebates can offset much of it — often handled within your purchase price. Your builder and lawyer confirm the net figure.

Beyond the mortgage: property tax, home insurance, utilities, condo/strata fees (if applicable), and maintenance (budget ~1% of value per year). We factor these into affordability so there are no surprises.

Options include one partner buying out the other (a 'spousal buyout' refinance, allowed up to 95% of value on owner-occupied homes), selling, or porting. We handle these confidentially and model what each person can afford on their own.

Yes — second/vacation homes can qualify for insured financing with as little as 5–10% down if owner-occupied (seasonal/3-season properties vary by lender). Investment second properties need 20%+. We match the lender to the property type.

Non-residents can finance in Canada with a larger down payment (typically 35%), though a federal foreign-buyer ban restricts certain purchases during its term. Newcomers on work/study permits have more options. We'll confirm current eligibility for your status.

We can advise on rent-to-own arrangements and the financing path to eventually purchase, plus help you weigh whether a B-lender or private mortgage now beats waiting. The goal is always a clear route to ownership.

You can assume or refinance the existing mortgage, buy out other heirs, or sell. The right move depends on the equity, the estate, and your goals — we'll walk through the financing options with you and your lawyer.

Bridge financing covers the gap when your new home closes before your current one sells — short-term funds for your down payment secured against your existing equity. It lets you buy and move without waiting for the sale to complete.

Maya is our 24/7 AI mortgage assistant. You can chat or talk to her about rates, what you can afford, your renewal, or getting approved — in 50+ languages — and she can run scenarios and start your application.

Maya provides information and ballpark numbers to help you understand your options; she doesn't issue binding advice, formal approvals, or rate quotes. Binding mortgage advice comes only from a licensed Mortgage Squad advisor in a written commitment from a lender.

No — Maya is free to use. She's there to help you 24/7, and hands off to a licensed human advisor whenever you want one.

It's one of the best mortgage brokerages to join in Canada for new and experienced agents: $0 monthly fee for producing agents (the $100/mo is reimbursed once you fund $5M/year), live + virtual training multiple times a week, real unfiltered leads, 50+ A/B/private lenders, AI tools, free headshots + business cards, and mentorship.

Complete your province's regulator-approved mortgage agent course, pass the exam, and get sponsored by a licensed brokerage. Mortgage Squad sponsors and trains new agents and will walk you through licensing end to end.

Yes, confidentially. We handle the licensing transfer, lender re-papering, and onboarding — usually within days — and your current brokerage won't know you enquired.

Yes — client enquiries go straight to the agent, unfiltered, and we help you generate more through marketing and personal branding.

Call (905) 553-8550, email info@mortgagesquad.ca, ask Maya any time, or start an application online. We're based at 310-3100 Steeles Ave W, Vaughan, ON.

Search FSRA Brokerage Licence #13737 on the FSRA public registry (the Financial Services Regulatory Authority of Ontario). Our record is publicly searchable.

Contact us first so we can make it right. You also have recourse to FSRA and, for federally regulated matters, the appropriate ombudsperson. We take complaints seriously and respond promptly.