Mortgage FAQ

A high ratio mortgage is required when you borrow more than 80% of your home's purchase price. High ratio mortgages require mortgage default insurance from CMHC, Sagen, or Canada Guaranty. The insurance premium is added to your mortgage balance. The minimum down payment in Canada is 5% for homes up to $500,000, and 10% on the portion between $500,000 and $999,999.

CMHC (Canada Mortgage and Housing Corporation) provides mortgage default insurance on high ratio mortgages. This insurance protects the lender, not the borrower, in the event of default. The premium ranges from 0.60% to 4.00% of the mortgage amount depending on your down payment. It is added to your mortgage and paid over the life of the loan.

A fixed rate mortgage locks in your interest rate for the term of the mortgage, giving you predictable payments. A variable rate mortgage fluctuates with the lender's prime rate, meaning your payment or the interest portion of your payment can change. Fixed rates provide certainty. Variable rates have historically been lower over time but carry more risk. The right choice depends on your financial situation and risk tolerance — we help you evaluate both.

For standard residential mortgages, Real World Mortgage Corp. is paid a finder's fee directly by the lender — not by you. This means you receive expert mortgage advice and access to multiple lenders at no cost to you. In some cases involving alternate or private lenders, a broker fee may apply, and this would always be disclosed upfront.

A mortgage pre-approval is a lender's commitment to provide you with a mortgage up to a specified amount at a specified rate, subject to final verification of your documents. It tells you exactly how much you can afford, locks in a rate for up to 120 days, and strengthens your position when making an offer on a home.

Simple approvals can take a few hours. More complex situations — self-employed income, credit issues, or unusual properties — may take a few days. After an accepted offer, the financing condition period is typically 7 to 10 business days, which gives us enough time to finalize your approval and satisfy all lender conditions.

The documents required vary based on your employment type, credit history, and the property. Common requirements include: two pieces of government-issued photo ID, recent pay stubs and employment letter (for salaried employees), two years of T4s and Notice of Assessments (for self-employed), proof of down payment, and the accepted purchase agreement once you have one. We provide a Minimum Submission Package Guide at the start of the process.

Yes. Self-employed Canadians can qualify for competitive mortgage rates. Lenders look at your income differently than for salaried employees, but there are programs specifically designed for self-employed borrowers. Real World Mortgage Corp. helps you validate your income correctly and connects you with lenders experienced in self-employed mortgage qualification.

A poor credit score does not disqualify you from getting a mortgage, but it does affect your options and rates. Real World Mortgage Corp. offers a free credit analysis and a clear plan to improve your score. We also have access to lenders who specialize in credit-challenged borrowers. With the right guidance, many clients improve their credit enough to qualify for A-rate lending within one to two years.

A HELOC (Home Equity Line of Credit) is a revolving line of credit secured against the equity in your home. It is completely open — you can draw from it, repay it, and draw again at any time. HELOCs typically have lower interest rates than personal lines of credit because they are secured. You can borrow up to 80% of your home's appraised value minus the outstanding mortgage balance.

A rate hold guarantees a specific interest rate for a set period — typically up to 120 days — while you shop for a home. If rates rise during that period, your held rate is protected. If rates fall, you get the lower rate. Rate holds are available at no cost and carry no obligation to proceed.

The mortgage stress test requires that borrowers qualify at a rate higher than their actual mortgage rate. For insured mortgages, the qualifying rate is the higher of 5.25% or your contract rate plus 2%. This test ensures borrowers can still afford their mortgage if rates rise. It applies to all federally regulated lenders in Canada.

When your mortgage term ends, your mortgage comes up for renewal. At this point you can renew with your existing lender or switch to a new one. Many borrowers simply sign the renewal their bank sends without reviewing other options — potentially locking into a higher rate than necessary. Real World Mortgage Corp. reviews your renewal and shops the market on your behalf at no cost.

Yes. There are mortgage programs specifically designed for newcomers to Canada who have limited Canadian credit history. Lenders may accept alternative credit references such as international credit reports, rental history, or utility payment records. Real World Mortgage Corp. has experience helping new Canadians navigate the mortgage process and get into their first Canadian home.

A bank can only offer you their own mortgage products. A mortgage broker works with multiple lenders and can present you with options from banks, credit unions, trust companies, and private lenders. Brokers are paid by the lender, not the borrower, so the service is free for most clients. The result is more options, better rates, and expert advice — without the conflict of interest that comes with a bank employee selling their own products.