Who you work with matters
At Lenders’ Choice, we are committed to building strong, long-lasting relationships built on trust and reliability.
Our professionalism and expertise have earned us the respect of mortgage lenders who value our ability to streamline and simplify the mortgage process for everyone involved.
With access to multiple lenders, we'll find you the best mortgage tailored to your needs
Find out how much you can afford before you go house hunting with our thorough home mortgage pre-approval help. We can help you through the mortgage pre-approval steps so you can gain better insight into your options before house hunting.
First Time Home Buyers
Buying a home is an exciting time! You're about to take a big step, so you'll need some advice from a mortgage professional. Our team has helped hundreds of first-time home buyers with their first home purchases, and we are happy to help you too.
Small and medium-sized businesses are the engine of the Canadian economy. Whether you’re buying your first home or need help getting loan approval, we can help you work with multiple lending institutions to have them compete to give you the best mortgage rate that you deserve.
We have the strategic guide to help you start and grow your investment portfolio. When investing in real estate, it pays to have experienced mortgage brokers on your side to help you get the best rate on your next real estate investment. As one of the top mortgage lenders in the greater Toronto area, we are here to help you diversify your portfolio with quality real estate options.
Bond yields & Variable Rates
Bond Yields: Bond Yields and fixed mortgage rates are closely connected. Here's a simple way to understand bond yields to see where fixed rates are going. In a normal market, the average spread or markup of fixed mortgage rates above secured government bond yields is roughly 100 to 200 basis points, or 1% to 2% (there are 100 basis points in a percentage point). Learn more
Variable Rates: When the Bank of Canada changes its key interest rate, most banks and lenders follow suit and raise their own prime rates. Learn more
What our clients say about us
Frequently Asked Questions
While a low rate is important, there are other factors you should consider when choosing a mortgage.
Here are some factors to keep in mind:
- Type of mortgage: There are different types of mortgages, including fixed-rate mortgages, adjustable-rate mortgages, and interest-only mortgages. Each type has its own pros and cons, and the best fit mortgage is one that meets your financial situation and goals.
- Term of the mortgage: Mortgages can have different terms with different respective rates. A mortgage term typically ranges from 1 to 5 years.
- Fees and charges: Some mortgages come with additional fees and charges, such as application fees, appraisal fees, and closing costs. Make sure to consider all of these costs when comparing different mortgage options.
- Penalties: Some banks, when calculating the Interst Rate Differential penalty for the same motgage will use their posted rate, while other lenders will use their best discounted rate. The difference could save you thousands.
- Flexibility: Some mortgages allow for more flexibility, such as the ability to make extra payments or to refinance the loan later on. This can be beneficial if your financial situation changes.
- What rate do I qualify for? Some borrowers will qualify for a lower rate than others, depending on the type of mortgage.
So, while a low mortgage rate can be a factor in choosing a mortgage option, it is certainly not the only factor to consider. You should take into account your financial goals, your overall financial situation, and other features of the mortgage when making your decision.
Hi-ratio mortgage (less than 20% down):
To determine 'affordability' you will first need to know your qualified income along with the amount of any debt outstanding and the monthly payments. Assuming it is your principal residence you are purchasing, calculate the Gross Debt Service Ratios (GDS) of 39% of your qualified income for use toward a mortgage payment, property taxes and heating costs. If applicable, half of the estimated monthly condominium maintenance fees will also be included in this calculation. Second, calculate the Total Debt Service Ratios (TDS) of 44% of your qualified income and deduct all of your monthly debt payments, including car loans, credit cards, lines of credit payments.
The lesser of the first or second calculation will be used to help determine how much of your income may be used towards housing related payments, including your mortgage payment. The mortgage payment is currently based on a “stress test”, which includes the contract rate + 2% or the qualifying rate, whichever is greater.
Conventional mortgages (20% down or more):
Some lenders will go beyond standard lending criteria of 39% GDS and 44% TDS on a case by case basis. Specials also exist.
Alternative lenders and Private lenders are options for borrowers that don’t meet conventional lending criteria.
A minimum down payment of 5% on the first $500,000 and 10% on the remaining balance up to $999,999 is required. In addition to the down payment, you must also be able to show that you can cover the applicable closing costs (i.e. legal fees and disbursements, appraisal fees and a survey certificate, where applicable). Regardless of the amount of your down payment, at least 5% of it must be from your own cash resources or a gift from a family member. It cannot be borrowed. Lenders will generally accept a gift from a family member as an acceptable down payment provided a letter stating it is a true gift, not a loan, is signed by the donor. Mortgages with less than 20% down must have mortgage loan insurance.
Owner occupied properties over $1,000,000, a minimum 20% down or more is required.
Rental properties also require a minimum 20% down payment.