We Can Assist with your Purchase Mortgage

Purchase Mortgages

Securing the right mortgage is crucial when purchasing your dream home. As the #1 mortgage broker in Canada, Dave is here to guide you through the process. Whether you're a first-time home buyer or a seasoned homeowner, Dave and his team offer personalized solutions tailored to your unique needs and financial goals.

The first thing to know about mortgages in Canada is that they are categorized into two types:

Insured Mortgages

Available for purchases with 5% to 19.99% down payment and a maximum price of $1,500,000

Conventional Mortgages

Available for purchase or refinance with 20%+ down payment (or equity) and no maximum price

Insured Mortgages

In Canada, if you are applying for a mortgage with less than 20% down payment, the Government has mandated that all banks, credit unions, and monoline mortgage lenders obtain mortgage default insurance (MDI) from one of only three approved MDIs in the country; CMHC, Canada Guarantee and Sagen. This default insurance is there to protect the mortgage lender if you default on the mortgage and the lender, incurring a capital loss. The cost of this insurance depends on the percentage of down payment and is applied as a premium to your approved mortgage amount. Although there is the added cost of this premium, insured mortgages are the leading option for homebuyers with a down payment of 5% to19.99% of their purchase price. These insured mortgages provide lenders with added protection against default, helping the Canadian banking system stay healthy, but at the same time making it easier for you to qualify for a mortgage with a lower down payment.

Key benefits of insured mortgages include:

Lower Down Payment Requirements

With an Insured mortgage, you can purchase a home with as little as 5% down, making homeownership more accessible, especially for first-time buyers.

The Most Competitive Interest Rates

Insured mortgages typically offer the most competitive interest rates, as compared to conventional mortgages (since the mortgage is insured, the lender is not taking as much risk and therefore the interest rate reflects this).

Flexible Repayment Options

Insured mortgages come with all the regular flexible repayment options as a conventional mortgage, allowing you to choose a mortgage term and payment schedule that fits your budget and financial situation.

Protection for Lenders

By providing lenders with mortgage insurance, this reduces their risk of financial loss in the event of borrower default, making it easier for them to approve your mortgage application.

Current Mortgage Insurance Premiums

Based on 25-year amortization
Add 0.2% for 30-year amortizations

Down Payment:
15% to 19.99%

2.80%

Down Payment:
10% to 14.99%

3.10%

Down Payment:
5% to 9.99%

4.00%

Conventional Mortgages

Conventional mortgages are ideal for homebuyers who have a down payment of 20% or more of their purchase price. These mortgages do not require mortgage insurance and offer greater flexibility and savings over the life of the loan. The mortgage lender is taking on the full risk of the loan without insurance and therefore is not tied to specific rules set on to them by the mortgage default insurer. This typically leads to lenders allowing you a longer amortization, and at times being able to make ‘common-sense’ underwriting decisions during the application process.

Key benefits of conventional mortgages include:

No Mortgage Insurance Premiums

With a down payment of 20% or more, you can avoid paying mortgage insurance premiums, saving you money on your monthly mortgage payments.

Relaxed Underwriting

Because there is no mortgage insurance to constrict application decisions, lenders can look at your file with a more common-sense approach. This includes approving applications with higher debt service ratios compared to insured mortgages.

More Options

Conventional mortgages open a wider range of options within your mortgage, such as longer amortizations, which can help to lower your mortgage payments and help to get higher mortgage pre-approvals.

No Maximum Price

Unlike insured mortgages, which are not available on properties priced over $1,500,000, conventional mortgages have no maximum limit on the purchase price of a home.

Equity Building

By putting down a larger down payment, you'll have more equity in your home from the outset, giving you greater financial stability and flexibility in the long run.

Get Started Today

Whether you opt for an insured mortgage or a conventional mortgage, Dave and his team are here to help you navigate the options and find the best solution for your home purchase needs.

Utilize our loan calculator below to find out how much you can borrow, or contact us today to schedule a consultation and take the first step towards homeownership!

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