FAQ
Frequently Asked Mortgage Questions
Straight answers to the questions people ask before they talk to a mortgage broker. Every situation is different, so if yours is not covered here, book a free consultation and we will walk you through it.
Getting Started
What is a mortgage pre-qualification?
A pre-qualification is a quick, informal estimate of how much you may be able to borrow, based on the income, debts and down payment you tell us about. Nothing is verified at this stage, so it is a starting point for setting a budget rather than a commitment from a lender. You can get a rough idea yourself with our mortgage calculators, then talk to us to confirm the numbers.
What is a mortgage pre-approval?
A pre-approval is a lender's conditional commitment after reviewing a full application: your income documents, down payment, credit report and the debts you carry. It confirms the price range you can shop in and usually holds a rate for 90 to 120 days. Sellers and realtors in Ontario, BC and Alberta take an offer far more seriously when it is backed by a pre-approval, so we recommend getting one before you start viewing homes.
What is the difference between pre-qualification and pre-approval?
The difference is verification. A pre-qualification relies on what you tell us; a pre-approval relies on documents a lender has actually checked. A pre-approval takes a little more effort up front, but it gives you a rate hold, a realistic maximum price and much stronger negotiating position when you make an offer.
What happens after my offer on a home is accepted?
Once your offer is accepted, we submit the property details to the lender for final approval. The lender reviews the purchase agreement, may order an appraisal, and confirms your income, down payment and credit are still in order. When the approval is issued, you sign the mortgage documents with your lawyer, who registers the mortgage and completes the purchase on closing day. Most financing conditions are cleared within 5 to 10 business days, and we manage each step for you.
How much down payment do I need to buy a home in Canada?
For a home you will live in, the minimum is 5% of the first $500,000 and 10% of the portion between $500,000 and $1.5 million. Homes priced at $1.5 million or more need at least 20% down, and so do rental or investment properties. Anything under 20% requires mortgage default insurance. These are federal rules, so they apply the same way in Ontario, British Columbia and Alberta. Use our payment calculator to see how different down payments change your monthly cost.
What documents do I need to apply for a mortgage?
Most lenders ask for government photo ID, proof of income (recent pay stubs and a letter of employment for salaried applicants, or two years of tax returns and Notices of Assessment if you are self-employed), 90 days of bank statements showing your down payment, and details of any existing debts or properties. If you are buying, we will also need the purchase agreement and MLS listing. We give you a simple checklist at the start so nothing slows down your approval.
Working With a Mortgage Broker
What does a mortgage broker do?
A mortgage broker works for you, not for a single lender. We review your finances, explain your options in plain language, then shop your application across banks, credit unions, monoline lenders and alternative lenders to find the best fit. We handle the paperwork, negotiate on your behalf and stay with you through closing. Our services are usually free for standard residential mortgages because the lender pays us once your mortgage funds.
Does using a mortgage broker affect my credit score?
Only minimally. We pull your credit report once and use that same report when we present your file to lenders, so you are not hit with a new hard inquiry from every bank you might have applied to on your own. A single mortgage inquiry typically moves a score by only a few points, and Equifax Canada groups mortgage-related inquiries made within a 45-day window so they count as one. Shopping through a broker is one of the gentler ways to compare lenders.
Can you work with the major banks and A lenders?
Yes. Akal Elevate works with Canada's major banks, credit unions and national monoline lenders (the "A" lenders), as well as B lenders and private lenders. Because we are licensed in Ontario, British Columbia and Alberta, we can place your mortgage with whichever lender offers the strongest rate and terms for your situation instead of being limited to one institution's products.
What happens if my bank declines my mortgage?
A decline from one bank is not the end of the road. Each lender has its own rules on income, credit and property type, and a file one bank turns down is often approved elsewhere with no change to the application. If needed, we can look at strengthening your file with a larger down payment, a co-signer or a short-term B-lender or private solution while you work toward an A-lender mortgage. Talk to us before you assume the answer is no.
Which provinces does Akal Elevate serve?
We are licensed to arrange mortgages in Ontario, British Columbia and Alberta (ON Lic # 13835, BCFSA Lic # MB609691, AB Lic # 00653331). Our team works with clients across the GTA and Southern Ontario, the Lower Mainland, Calgary, Edmonton and everywhere in between, and we can handle your entire application remotely.
B Lenders & Private Mortgages
What is a B lender?
A B lender, sometimes called an alternative lender, is a regulated lender such as a trust company or credit union that serves borrowers who fall just outside the big banks' guidelines. They accept things like bruised credit, newer self-employment income or a high debt ratio, in exchange for a somewhat higher rate and usually a lender fee. Learn more on our non-traditional income page.
When does a B lender make sense?
A B lender makes sense when you need financing now and the banks have said no, for example after a credit setback, a recent switch to self-employment, or when you have strong equity but income that is hard to document. Most clients use a B-lender mortgage for one or two years as a bridge, then we move them back to an A lender at better rates once their file has improved.
What is a private mortgage?
A private mortgage is a loan funded by an individual investor or a mortgage investment corporation rather than a bank. Approval is based mainly on the property and your equity in it, so income and credit matter far less. Private mortgages carry higher interest rates and fees, are usually interest-only, and typically run for one year. They are a short-term tool, and we always plan the exit with you. See our private lending solutions.
When would someone use private financing?
Private financing is used when speed or flexibility matters more than rate: closing on a purchase quickly, bridging between selling one home and buying another, stopping a power of sale, consolidating debt when credit is damaged, or funding a renovation or construction project. Because the cost is higher, we only recommend it when there is a clear plan to refinance into a conventional mortgage within a year or two.
Qualifying & Credit
Can self-employed borrowers qualify for a mortgage?
Absolutely. Self-employed clients across Ontario, BC and Alberta qualify every day, and the right approach depends on how your income is reported. A lenders generally look at a two-year average of your Notices of Assessment, while B lenders can use business bank statements or stated income supported by your invoices and contracts. We match your file to the lender whose rules work with the way you earn. Details on our self-employed mortgages page.
Can I get a mortgage with bruised credit?
Yes. Some A lenders will consider scores in the low 600s with a solid explanation, and B lenders and private lenders go well below that when there is equity or a larger down payment. We review your credit report with you, explain what is holding the score down and set out a path back to mainstream rates. Learn more on our bad credit mortgages page.
What is a co-signer?
A co-signer is someone, often a parent or spouse, who goes on the mortgage and usually on the property title with you. Their income and debts are added to your application, which can help you qualify for a larger mortgage. A co-signer is fully responsible for the payments, so the mortgage appears on their credit report and counts against their own borrowing power until they are removed.
What is a guarantor?
A guarantor promises to repay the mortgage if you cannot, but does not typically go on title and, with many lenders, the mortgage is not reported on their credit bureau. Lenders accept a guarantor when an application is close to qualifying but needs extra security. Whether a guarantor or a co-signer is the better option depends on the lender and the amount of support your file needs, and we can advise on both.
What is mortgage default insurance?
Mortgage default insurance protects the lender if a borrower stops paying, and it is mandatory on any home purchase with less than 20% down. It is offered by CMHC, Sagen and Canada Guaranty. The premium, which can range up to about 4% of the mortgage amount depending on your down payment, is added to the mortgage rather than paid up front (Ontario charges provincial sales tax on the premium, which is paid at closing). Insured mortgages often come with slightly lower rates, and first-time buyers and new-build purchasers can now choose a 30-year amortization on insured mortgages up to $1.5 million.
Refinancing, Renewals & Specialty Financing
Can you help with refinancing?
Yes. Refinancing replaces your current mortgage with a new one, usually to access equity, secure a better rate or change your amortization. Conventional refinances allow you to borrow up to 80% of your home's appraised value, and there is now an insured option up to 90% for homeowners adding a legal secondary suite. Use our refinance calculator to estimate your available equity, or visit our renewals and refinancing page.
Can I refinance to consolidate debt?
Often, yes. Rolling credit cards, car loans and lines of credit into a mortgage at a much lower rate can cut your total monthly payments significantly and simplify your finances. We look at the interest you are paying now, the equity available in your home and any penalty to break your current mortgage, then show you the true before-and-after so you can decide. A home equity loan or second mortgage is an alternative when breaking your first mortgage does not make sense.
What happens when my mortgage is up for renewal?
Your lender will send a renewal offer, typically a few weeks before your term ends, but the first offer is rarely their best. Renewal is the ideal time to shop, and if you move to a new lender without increasing the balance or amortization, no stress test applies. We compare your lender's offer against the market, negotiate on your behalf and manage the switch if it saves you money. Ideally, contact us 4 to 6 months before your maturity date.
Can Akal Elevate help with investment properties?
Yes. We arrange financing for rental condos, duplexes, small multi-unit buildings and growing portfolios across Ontario, BC and Alberta. Investment properties need at least 20% down, and lenders differ widely in how much rental income they will count, so choosing the right lender can be the difference between an approval and a decline. See our investment property mortgages page.
Do you handle commercial mortgages?
We do. Our commercial financing covers mixed-use and multi-residential buildings, retail and office space, industrial properties and owner-occupied business premises. Commercial lending is underwritten on the property's income and the strength of the borrower, and we have relationships with banks, credit unions and private commercial lenders. Learn more about our commercial mortgages.
Do you handle CMHC MLI Select financing?
Yes. CMHC MLI Select is an insured program for purpose-built rental properties with five or more units. Projects earn points for affordability, energy efficiency and accessibility commitments, and higher scores unlock benefits such as loan-to-value up to 95%, longer amortizations and reduced premiums. CMHC updated the program's criteria and pricing in 2025, so the numbers depend on when your project qualifies. If you are buying, building or refinancing a multi-unit property in Ontario, BC or Alberta, book a consultation and we will assess whether MLI Select fits.