FAQs

General Questions About Balance Mortgages

Your time is precious. Having to shop your own mortgage from bank to bank takes not only significant time, but can be very daunting given the wide variety of products. As well, most people don’t know the right questions to ask.

Updated daily, Balance Mortgages sees the lowest interest rates and
best mortgage products offered by financial institutions across Canada. We use this knowledge to get you the best mortgage product available.

Because Balance Mortgages is not associated with any one financial institution, we’re not limited in the products we can offer you. Our job is to seek out the best lender package for your specific situation, whether it’s with a Chartered Bank, Trust Company, Credit Union, or Private Funds.

Choosing the wrong mortgage can cost you thousands of extra dollars. Balance Mortgages has the knowledge, experience and resources to shop the mortgage market for the best rates and terms.

Balance Mortgages is made up of a team of professionals trained to represent you, the borrower, in obtaining mortgage financing from a variety of lending sources that offer a unique range of mortgage solutions.

By accessing numerous Canadian mortgage lenders including Chartered Banks, Trust companies, Credit Unions, and private lenders, Balance Mortgages is able to find you the best mortgage solutions for your specific needs now and in the future.

At Balance Mortgages we have developed a proprietary, secure, mortgage application process that is available 24 hours per day, 7 days per week. By simply filling out our online mortgage application, you will be given an answer within minutes and in some cases seconds!

Balance Mortgages network of lenders will mortgage properties across Canada.
Balance Mortgages network includes the majority of the top, respected mortgage lenders in Canada including Chartered Banks, Credit Unions and Trust Companies. In addition, Balance Mortgages includes a significant network of private lenders.
The best endorsement comes from people who found a loan through Balance Mortgages. We get letters and notes each day from clients who have been very happy with the services we provide and shared their comments in testimonials.

Balance Mortgages also has a number of professional affiliations which can be reviewed on our about us page. Our policies and practices adhere to the ‘Ten Principles of Privacy’ which comply with the Personal Information Protection and Electronic Documents Act (PIPEDA) and corresponding Provincial Privacy Acts.

At Balance Mortgages, we survey Canadian mortgage lenders including Chartered Banks, Trust Companies, Credit Unions and private lenders, to get you the lowest possible mortgage rate available.

Our interest rates are posted on our homepage and updated on a daily basis when required. Find a lower rate? We’d be surprised, but let us know and we’d be happy to check it out.

There are no hidden costs…

Getting started with the mortgage application process

It’s simple, from the homepage click on apply today, fill out the no obligation online mortgage application, click on submit and get an answer in minutes!
  •  Pre-approvals
  •  1st and 2nd mortgages
  •  Mortgage renewals and switch mortgages
  •  Construction mortgages
  • Mortgage transfers
  •  Refinance debts
  •  Debt consolidation mortgages
  •  Self employed applicants
  •  Bank declined mortgages

At this time we do not offer commercial mortgage applications.

Absolutely not! You are under no obligation to accept a loan offer presented to you through Balance Mortgages. There are also no costs associated with the mortgage application process.
Balance Mortgages uses the most secure technology available to ensure that the data you send us remains absolutely confidential and secure.Website Security
Your personal privacy and the security of your personal data are our primary concern. Our overall privacy policy is simple. Under no circumstances will Balance Mortgages sell or share any personal information about you to or with any person or organization except to the lenders in our network, our authorized agents, or as may be required by law or court order. Please review our privacy policy for more information.

Top 5 Questions About Balance Mortgages Inc

What’s the catch? Plain and simple, there is no catch…We have just taken the process of obtaining a mortgage to a new level. The difference between Balance Mortgages and other brokers/financial institutions is that our application and approval process is completely online.

How do we do it? Balance Mortgages has developed an online mortgage qualification system that is able to qualify mortgage applications through a filtering process. Applications that meet the requirements are given an “Instant Mortgage Approval” or “Instant Pre Approval”. No strings…

If you have reasonable credit, and the property qualifies, there is no reason why you will not be given an “Instant Mortgage Approval” or “Instant Pre Approval”. Approval guidelines.

Even if you have less than perfect credit we encourage you to go
through the mortgage application process and let a member of the Balance Mortgages Team work to find the mortgage that best suits your needs.

Balance Mortgages Inc surveys Canadian mortgage lenders including Chartered Banks, Trust Companies, Credit Unions and private lenders, to get you the lowest possible mortgage rate available. Our interest rates are posted on our homepage and are updated on a daily basis when required. Find a lower rate? We’d be surprised, but let us know and we would be happy to investigate it.
There are absolutely no costs associated with the online mortgage application process. Even when your application is approved, there are still no costs. Also, at no time are you under any obligation to accept our mortgage offer.
Of course if you decide to accept our approval and follow through with the mortgage, there will be some costs associated with the mortgage itself and may include costs for items like appraisals, legal fees, surveys, etc. These costs are not specific to Balance Mortgages but are normal expenses associated with mortgages in Canada. Once your mortgage application has been approved, a member of the Balance Mortgage Team will be in contact with you to go over these costs in detail.
In some cases, when secondary lenders are required to facilitate your mortgage requirements as a result, for example, of credit concerns, etc, brokerage fees may apply. However, you will be made fully aware of any fees prior to your commitment.
There are no hidden costs…
 

Questions about Mortgage Costs

There are absolutely no costs associated with the online mortgage application process. Even when your application is approved, there are still no costs. Also, at no time are you under any obligation to accept our mortgage offer.
Of course if you decide to accept our approval and follow through with the mortgage, there will be some costs associated with the mortgage itself and may include costs for items like appraisals, legal fees, surveys, etc. These costs are not specific to Balance Mortgages Inc but are normal expenses associated with mortgages in Canada. Once your mortgage application has been approved, a member of the Balance Mortgages Inc Mortgage Team will be in contact with you to go over these costs in detail.
In some cases, when secondary lenders are required to facilitate your mortgage requirements which may be the result of credit concerns, brokerage fees may apply. However, you will be made fully aware of any fees prior to your commitment
In general terms, the following are typical costs which you will incur when obtaining a mortgage. Again, these costs are not specific to Balance Mortgages Inc but are normal expenses associated with mortgages in Canada and may depend on your location. A member of the Balance Mortgages Inc Mortgage Team will discuss these costs in detail once your mortgage is approved. The following are given as a guide only.

Legal Fees $850 – $1,000
Appraisal $200 – $300
* Title Insurance $200

*Title Insurance is required on most mortgages with loan to value ratios over 65%. A survey certificate can be substituted.
Depending on your Province, you may be subject to a property purchase tax when purchasing a new home. Again, Balance Mortgages Inc Mortgage Specialist will be in contact with you to discuss these costs.

 

Answers to Canadian Mortgage and Loan Questions

A conventional mortgage is considered to be a mortgage where the down payment is equal to 20% or more of the purchase price. It is a mortgage that generally does not require Mortgage Loan Insurance.
A High-Ratio mortgage is a mortgage which is greater than 80% of the purchase price or appraisal, whichever is less. High-Ratio mortgages require Mortgage Loan Insurance which is provided by either Canada Mortgage and Housing Corporation (CMHC) or Genworth, a private Insurer, and protects the lender against loss.
Mortgage Loan Insurance premiums range from .50% to 3.75% of the mortgage amount and are calculated based on the overall loan to value. For instance, borrowers with a 5% down payment, a loan to value of 95%, would pay a premium of 3.75% while those with a 20% down payment, a loan to value of 80%, would pay an insurance premium of 1.25%.
Mortgage Loan Insurance should not be confused with Mortgage Life Insurance.
A pre-approved mortgage is just like applying for a mortgage when you buy a home. The difference is that it is done ahead of time. Balance Mortgages will take all required information from you to determine how much you can comfortably afford to pay each month and what price range home you can consider.
With a pre-approved mortgage you can shop with confidence, knowing that the biggest hurdle in home buying has been seen to ahead of time. Generally speaking, pre-approval terms and conditions are guaranteed by the financial institution for up to 120 days, giving you the protection of ‘locking in’ a certain mortgage rate should rates climb higher while you look for a home. If interest rates go down, the banks will generally give you the lower rate.
Variable or floating rate mortgages provide that the interest rate will change on a periodic basis during the term of the loan based on a predetermined formula. This formula is typically based on the prime-lending rate set by the Bank of Canada.
Fixed rate mortgages provide that the interest rate will not change throughout the term of the mortgage. The rate is set at the beginning of the term.
Article: Fixed or Variable rate mortgage
Yes! Mortgages can be obtained for a variety of purposes including home purchases, home renovations, or refinancing to pay off other high interest rate debt.
Most lenders today offer prepayment privileges of 15% of the original mortgage balance. There are a few exceptions that offer only 10% and others that offer 20% and even 25%. You can increase the payments by up to double the regular payment but it is not necessary to double up. As well, prepayment privileges can typically be taken advantage of in the form of annual lump sum payments, too.
Either a three-month interest penalty or interest differential penalty will apply if you close out your mortgage prior to the maturity date of the term. The greater of the two applies. Interest differential is charged when interest rates have decreased relative to your rate, whereas three-month interest charges are typically charged when interest rates have increased relative to your rate.
There are a number of products available for applicants who, for whatever reason, have a solid down payment but are unable to provide standard income verification. Another normal requirement is that the applicant have good credit. The amount of the mortgage advance will typically be 65% of the total property value but mortgages of up to 75% of the total can also be arranged.
While you may not be given immediate mortgage approval, Balance Mortgages has access to many lenders and products that will probably work. The terms and interest rates will depend on the severity of your credit situation. Credit Repair Tips
For funds derived from a bank account, lenders require a bank statement confirming the down payment. For funds derived from RRSP, GIC, or stock portfolios, the most recent statement is required. For funds derived from the sale of property, a fully executed binding sale agreement is required.
Most lenders will accept down payment funds that are a gift from family as an acceptable down payment. A gift letter signed by the donor is usually required to confirm that the funds are a true gift and not a loan. Where the mortgage requires Mortgage Loan Insurance, the gift money is required to be in the purchaser’s possession before the completion of the mortgage.
Depending on the circumstances surrounding your bankruptcy, generally some lenders would consider providing mortgage financing. If you have been previously discharged from bankruptcy, the best way to determine whether or not you qualify at this time is to fill out an application and have one of the Balance Mortgages team members discuss your situation. Balance Mortgages has many lenders we can approach based on your circumstances.
Where Child Support and Alimony are paid by you to another person, generally the amount paid out is deducted from your total income before determining the size of mortgage you will qualify for. Where Child Support and Alimony are received by you from another person, generally the amount paid may be added to your total income before determining the size of mortgage you will qualify for. Proof of regular receipt for a specified period of time will be required by the lender.
No! Have Balance Mortgages begin shopping around for an interest rate at least 90 days before your mortgage matures. Lenders will often guarantee an interest rate to you as much as 120 days before your mortgage matures. Most lenders will cover or offset a majority of the costs of transferring your mortgage. This means a rate promised well in advance of your maturity date, thus eliminating any worries of higher rates. And if rates drop before the actual maturity rate, the new lender will usually adjust your interest rate lower as well.
Most lenders send out their mortgage renewal notices offering existing clients their posted interest rates. The rate offered is usually not the best one.
Absolutely! Financial institutions are not permitted to discriminate based on age. As such, you are entitled to the same mortgage terms and qualifications guidelines as non-retired persons.
Further, pension income qualifies the same as any other income.
Yes, as a non-resident you are able to qualify for a mortgage. The maximum Loan to Value Ratio is typically limited to 65%, but can go as high as 75% in special cases.
A credit report from the country of origin, proof of income and down payment is also required.