When a conventional mortgage makes sense,
that's where we start.
Not every mortgage needs an alternative solution.
We also arrange conventional financing through bank, institutional
and monoline lending channels for purchases, refinances and renewals
across Ontario.
The goal isn't just approval.
It's choosing the right mortgage.
If your income, credit, down payment and property fit conventional
lending guidelines, a bank or institutional mortgage may offer the
best combination of rate, cost and long-term flexibility.
Our approach
Bank when the bank makes sense. Alternative when it doesn't.
Private when necessary. The lending channel should follow the
situation — not the other way around.
01 · RATE
Competitive pricing matters.
We compare available lender pricing, but the lowest advertised
rate is only one part of the mortgage decision.
02 · TERMS
The contract matters too.
Prepayment privileges, penalties, portability and restrictions
can become expensive if your plans change.
03 · STRUCTURE
Fixed, variable, term and amortization.
The mortgage should be structured around your cash flow,
tolerance for rate movement and expected time in the property.
04 · NEXT MOVE
Think beyond today's closing.
A good mortgage should solve today's need without unnecessarily
restricting the refinance, move or renewal that comes next.
Conventional Mortgage Solutions
Buying, refinancing or renewing —
the strategy changes with the situation.
Conventional lenders can be appropriate across all three stages,
but the questions you should be asking are different.
01 · PURCHASE
Buying a Home
Understand qualification, down payment, monthly carrying costs,
closing costs and the mortgage structure before you commit to
the purchase.
Strong conventional files are built on
more than a credit score.
Lenders assess the borrower and the property together. The exact
underwriting rules vary by lender and mortgage type.
Income
The lender needs acceptable income documentation and enough
qualifying income to support the mortgage and other obligations.
Credit
Credit history, repayment patterns and existing obligations
influence both approval and the lender options available.
Down payment / equity
Purchase transactions require an acceptable down payment.
Refinances depend on the amount of equity available in the home.
Debt service
The lender measures housing costs and other debt obligations
against qualifying income.
The property
Property type, location, condition, marketability and value can
affect the financing even when the borrower is otherwise strong.
Down Payment Changes the Mortgage
Insured and conventional mortgages
are different lending structures.
The size of the down payment affects whether mortgage default insurance
is required and can also affect lender pricing and underwriting.
Less Than 20% Down
Insured mortgage
For an owner-occupied purchase with less than 20% down, mortgage
default insurance is typically required. The insurance protects the
lender, not the borrower, and the premium is normally added to the
mortgage.
20% Down or More
Conventional / uninsured mortgage
With at least 20% down, lender-paid mortgage default insurance is
not automatically required in the same way. The lender's own
qualification, property and amortization rules still apply.
Mortgage-insurance eligibility and amortization rules depend on the
transaction, purchase price and borrower profile. We confirm the
applicable rules when reviewing the actual file rather than assuming
one structure fits every purchase.
Beyond the Advertised Rate
A lower rate can still be
the more expensive mortgage.
The rate matters. So does everything attached to it.
A mortgage with a slightly lower rate can become expensive if it
carries a restrictive penalty calculation, limited prepayment
options or poor portability when your plans change.
Compare the whole mortgage.
Interest rate and rate type
Term length
Prepayment privileges
Penalty calculation
Portability
Ability to increase or blend the mortgage
Refinance restrictions
Payment frequency and flexibility
Mortgage Structure
Fixed or variable. Short or long term.
There isn't one answer for everyone.
The right structure depends on your plans, cash flow, tolerance for
payment changes and how likely you are to break the mortgage before
the term ends.
Fixed Rate
The interest rate stays fixed for the mortgage term, providing
predictability during that period.
Predictable rate during the term
Useful when payment certainty is a priority
Penalty calculations can matter significantly if broken early
Variable Rate
The mortgage rate can move when the lender's applicable variable
benchmark changes. Depending on the product, the payment may stay
fixed for a period or may adjust.
Rate can rise or fall during the term
Understand whether payments are fixed or adjustable
Know the lender's conversion and trigger provisions where applicable
Mortgage Term
The term is the period your mortgage contract is in effect.
At the end of the term, any remaining balance needs to be renewed,
refinanced or paid out.
Shorter terms mean another renewal decision sooner
Longer terms provide longer contractual certainty
Your expected move or refinance timeline matters
Amortization
The amortization is the estimated time required to repay the
mortgage based on the payment schedule. A longer amortization
lowers the scheduled payment but increases interest cost over time.
Payment size changes with amortization
Longer amortization means slower principal repayment
Maximum amortization depends on the mortgage structure and lender rules
More Than One Conventional Lending Channel
The best conventional mortgage
isn't automatically sitting at your own bank.
Mortgage brokers can compare different institutional lending channels.
The right choice depends on the file and the mortgage features that
matter to you.
01 · BANK
Bank Lenders
Traditional financial institutions can offer strong conventional
mortgage products when the borrower and property fit their
underwriting model.
02 · MONOLINE
Mortgage-Only Lenders
Monoline lenders focus primarily on mortgage lending and can offer
competitive conventional products with features that differ from
traditional banks.
03 · CREDIT UNION / INSTITUTIONAL
Other Institutional Lenders
Depending on the transaction and location, other regulated lending
channels may also provide appropriate conventional financing.
If the Bank Doesn't Fit
A conventional decline doesn't mean
the conversation is over.
Conventional financing should be used when it fits.
But self-employed income, credit issues, tax debt, mortgage arrears,
unusual property types or a time-sensitive transaction can push a
file outside standard lending guidelines.
That's when we look at whether an alternative or private solution
can solve the problem — ideally with a clear strategy to move back
toward conventional financing where appropriate.
Situations that may require a different channel
Income that conventional underwriting will not fully recognize
Recent credit problems or consumer proposal history
Mortgage arrears or enforcement pressure
CRA or other debt affecting qualification
A property that does not fit a conventional lender
A closing timeline conventional underwriting cannot meet
Start with the situation.
Then compare the financing.
STEP 01
Understand the goal
Purchase, refinance or renewal — and what you need the mortgage
to accomplish beyond simply getting approved.
STEP 02
Review qualification
Income, credit, debts, down payment or equity, property and
timing are reviewed before selecting the lender.
STEP 03
Compare lender options
We look at available conventional channels and compare the
mortgage features that matter to your situation.
STEP 04
Choose the structure
Rate type, term, amortization, payment schedule and lender
features are considered together.
STEP 05
Complete the mortgage
Once approved, conditions are satisfied and the transaction
proceeds to closing or renewal.
Conventional Mortgage FAQ
Common questions about
bank and conventional mortgages.
Yes. Alternative and private lending are important parts of our
business, but they are not the starting point when a conventional
mortgage fits. We also arrange conventional financing through
available bank, institutional and monoline lending channels.
Your own financial institution can show you its products. A broker
can review your situation across multiple available lending channels
and compare rate, terms, penalties, flexibility and qualification
rather than assuming one institution is automatically the best fit.
No. Rate is important, but so are the lender's penalty calculation,
prepayment privileges, portability, refinance restrictions and other
contract terms. The cheapest rate today can become expensive if you
need to change the mortgage before the term ends.
The mortgage term is how long the current mortgage contract is in
effect. The amortization is the estimated period over which the
mortgage would be fully repaid based on the payment schedule.
Most borrowers have several mortgage terms during one amortization.
A fixed mortgage keeps the interest rate fixed during the term.
A variable mortgage rate can move during the term. Depending on
the product, a variable-rate payment may stay fixed for a period
or adjust as rates change.
For a typical owner-occupied home purchase, a down payment below
20% requires mortgage default insurance, subject to the insurer's
eligibility rules. The insurance protects the lender if the
borrower defaults.
You can, but a renewal is also an opportunity to compare the rate,
lender, term and structure against other available options. If your
circumstances or goals have changed, the mortgage should be reviewed
before simply renewing it.
Then we determine why. Sometimes the issue can be corrected before
the transaction. In other cases an alternative or private mortgage
may be appropriate. The goal is to use the least expensive lending
channel that realistically solves the problem.
Start With the Mortgage That Fits
If conventional financing works,
there's no reason to make the mortgage more complicated.
Tell me what you're trying to accomplish. We'll determine whether
a conventional lender fits and, if it does, compare the mortgage
structure rather than pushing you toward a more expensive solution
you don't need.
Let's Talk →
