Grover Mortgage Group FAQs
Clear Answers for Buying, Refinancing and Using Your Home Equity
Buying a home, refinancing, or using your home equity comes with a lot of questions. We created this FAQ hub to give you clear answers to the mortgage questions we hear most often, so you can better understand your options and feel more confident about your next step.
General
What does a mortgage broker do?
We help you compare mortgage options from a range of lenders instead of being limited to one bank’s products. Our role is to help you find a mortgage solution that fits your budget, goals, timeline, and overall financial picture.
Why work with a mortgage broker instead of going directly to a bank?
A bank can only offer its own mortgage products and approval guidelines. We compare options across multiple lenders, explain the differences clearly, and help you look at the broader market so you can make a more informed decision.
What mortgage services do you offer?
We help with first-time home purchases, refinance solutions, private mortgages, reverse mortgages, and home equity lines of credit. Whether you are buying, restructuring debt, or accessing equity, we can help you understand which path may fit your needs.
Which areas do you serve?
We serve clients in Mississauga, Oakville, Burlington, Hamilton, Brampton, and nearby surrounding areas. We understand the realities of these local markets and help clients plan with those conditions in mind.
Which lenders do you work with?
We work with both A and B lenders and have direct access to lenders such as TD, Scotia, BMO, Merix, Community Trust, Equitable, and Home Trust, along with indirect access to CIBC and RBC. This gives us the ability to review more than one option and help match the file to the right lending path.
How do I get started?
You can get started through our online application form, by calling us at (289) 208-4469, or by emailing us at [email protected]. Once we receive your information, we can review your situation and let you know what the next steps may look like.
Qualification Basics
How much mortgage can I afford?
Affordability depends on more than just your income. We also need to look at your down payment, existing debts, monthly obligations, credit profile, and property-related costs so we can give you a more realistic idea of what may fit your situation.
What is a mortgage pre-approval?
A mortgage pre-approval is an early review that gives you an estimate of what you may be able to borrow based on the information available at that stage. It can help you set a realistic budget before house hunting and shop with more confidence.
How long does a mortgage pre-approval last?
The length of a pre-approval can vary by lender, but it is generally valid for a limited period rather than indefinitely. We can explain how long your pre-approval may last and whether your rate hold or approval window could change based on the lender and your file.
What is the mortgage stress test in Canada?
The stress test is a qualification rule that checks whether you could still afford your mortgage if rates were higher than your contract rate. Even if your actual payment would be based on a lower rate, lenders may qualify you at a higher benchmark, which can reduce the amount you are approved to borrow.
How much down payment do I need in Ontario?
The down payment required depends on the purchase price of the home and the type of mortgage. Some buyers can purchase with less than 20% down, while higher-priced homes or certain financing situations may require more.
What credit score do you need for a mortgage in Canada?
There is no one credit score that applies to every mortgage because each lender has its own guidelines. In general, stronger credit gives you access to more options, and for CMHC-insured mortgages, at least one borrower or guarantor typically needs a minimum credit score of 600.
Does debt affect mortgage approval?
Yes. Lenders look at your monthly debt obligations when deciding how much mortgage financing you may qualify for. Car loans, student loans, lines of credit, and credit card balances can all affect your debt ratios and reduce borrowing power.
What is the difference between a fixed-rate and variable-rate mortgage?
A fixed-rate mortgage keeps the interest rate the same for the term, while a variable-rate mortgage can change as market conditions change. The right option depends on your comfort with payment changes, your financial flexibility, and how much certainty you want over the term of the mortgage.
What is CMHC insurance, and when is it required?
CMHC insurance, also called mortgage loan insurance, is generally required when your down payment is less than 20% of the purchase price. It protects the lender, and the premium is usually added to the mortgage, which increases the total amount being financed.
When is CMHC insurance no longer available?
CMHC insurance is generally no longer available when the home purchase price is above $1.5 million. Once a property goes over that threshold, buyers usually need at least 20% down because the mortgage can no longer be insured.
First-Time Home Buyers
Do first-time home buyers need 20% down?
No. Many first-time buyers can purchase with less than 20% down, depending on the purchase price and lender guidelines. If your down payment is under 20%, CMHC insurance may apply, so it is important to look at the full cost of the purchase and not just the minimum down payment.
What first-time home buyer programs are available in Ontario?
First-time buyers may benefit from programs such as the First Home Savings Account (FHSA), the Home Buyers’ Plan, the First-Time Home Buyer Tax Credit, and the Ontario land transfer tax rebate. These programs can help with savings, tax efficiency, and upfront purchase costs.
Can I use an FHSA to buy a house?
Yes. The FHSA is designed to help eligible first-time buyers save for a home in a tax-advantaged way. It can be a very helpful tool if you are still building your down payment and want a more structured savings plan.
Can I use my RRSP to buy my first home?
Yes. Eligible buyers may be able to use the Home Buyers’ Plan to withdraw funds from their RRSP toward a first home purchase, subject to current program rules. This can help strengthen your down payment if some of your savings are already inside an RRSP.
Can I use gifted funds for my down payment?
Yes, in many cases gifted funds can be used toward your down payment if the lender allows it and the source is documented properly. We can let you know what paperwork may be needed so the lender can verify where the funds came from.
Is there a land transfer tax rebate for first-time home buyers in Ontario?
Yes. Eligible first-time buyers in Ontario may qualify for a land transfer tax rebate, which can help reduce part of the upfront closing cost. This can make a meaningful difference when you are budgeting for your purchase.
How much should first-time home buyers budget for closing costs?
Closing costs are paid on top of your down payment and can include legal fees, title insurance, land transfer tax, and other closing adjustments. We generally recommend budgeting about 1.5% to 4% of the home’s purchase price for closing costs so you are not caught off guard at closing.
What documents do I need for a mortgage pre-approval?
Common documents include government ID, proof of income, recent pay stubs, employment confirmation, tax documents, and proof of down payment. Depending on the file, we may also need bank statements, Notices of Assessment, or other supporting documents.
Why should I get pre-approved before house hunting?
Pre-approval helps you shop with a clearer and more realistic budget. It can also help you move more confidently when the right property comes up because part of the financing review has already started.
What is a condition of financing, and why does it matter?
A condition of financing gives you time to confirm that your mortgage is fully approved before the purchase becomes firm. It matters because it helps protect you from being locked into a purchase before the financing details have been properly reviewed and accepted.
What happens if the home appraises for less than the purchase price?
If the appraisal comes in lower than the purchase price, the lender may base the financing on the lower appraised value instead. That can mean you may need a larger down payment or a different structure to move forward, which is why it is important to review the numbers carefully.
Refinance Solutions
What is a mortgage refinance?
A mortgage refinance replaces your existing mortgage with a new one, usually to better match your current financial goals. Homeowners often refinance to access equity, consolidate debt, fund major expenses, or restructure their payments.
Why do homeowners refinance their mortgage?
People refinance for many reasons, including accessing equity for renovations, consolidating higher-interest debt, improving monthly cash flow, or adjusting their mortgage structure after a change in income, debts, or household needs. The right reason depends on what you are trying to accomplish.
What is the difference between a refinance, a switch, and an early renewal?
A refinance changes the mortgage structure and may allow you to access equity or change the amount owing, while a switch usually means moving your mortgage to a new lender without increasing the balance. An early renewal is renewing your mortgage before the current term ends, which can sometimes involve different costs and timing considerations.
How much equity do I need to refinance my mortgage?
In many refinance situations, lenders want you to keep a portion of your equity in the home after the refinance is complete. The amount you can borrow is usually tied to the appraised value of the property and the balance of your current mortgage.
Can refinancing help with debt consolidation?
Yes. Refinancing can sometimes be used to roll higher-interest debts into the mortgage, which may simplify payments and reduce monthly pressure. Whether that makes sense depends on the full situation, including costs, equity, and your long-term goals.
What costs come with refinancing a mortgage?
Refinancing can involve costs such as a prepayment penalty, legal fees, appraisal fees, and discharge or administrative fees. That is why it is important to look at the full benefit of the refinance and not just the amount of equity you may be able to access.
What is an IRD penalty versus three months’ interest?
These are two common ways lenders may calculate a mortgage penalty when you break your mortgage early. The amount depends on your lender and mortgage terms, so we can help you review how the penalty may be calculated before you make a decision to refinance, switch, or break the mortgage.
Do I need to pass the stress test to refinance?
In many cases, yes. Even if you already have a mortgage, the new financing often still needs to qualify under current mortgage rules, including the stress test where applicable. We review that with you as part of the refinance process.
Private Mortgage Options
What is a private mortgage?
A private mortgage is a loan provided by an individual investor, mortgage investment corporation, or another non-bank lender rather than a traditional bank. It is often used when a borrower needs more flexibility than conventional lending allows.
Who is a private mortgage usually for?
A private mortgage may be an option for borrowers who have strong equity in a property but do not currently fit major lender guidelines. This can include self-employed borrowers, people with credit challenges, newcomers, or homeowners dealing with a temporary issue that needs a short-term solution.
What matters most for private mortgage approval?
Private lenders often focus heavily on the property, the amount of available equity, and the exit strategy. Income and credit still matter, but the conversation is often more flexible than it is with a traditional bank.
How do private mortgage payments work?
Many private mortgages are structured with interest-only payments during the term, with the principal due at the end. That can keep monthly payments lower in the short term, but it also means there needs to be a clear plan for what happens next.
Are private mortgages short term or long term?
Private mortgages are usually used as short-term or transitional financing rather than a long-term mortgage strategy. They can be helpful when there is a clear reason conventional financing is not available today, but the situation is expected to improve later.
What costs come with a private mortgage?
Private mortgages usually come with a higher overall cost than standard bank financing. In addition to interest, there may be lender fees, broker fees, appraisal costs, and legal fees, so it is important to understand the full cost before moving forward.
Reverse Mortgage
What is a reverse mortgage in Canada?
A reverse mortgage allows eligible homeowners to access equity from their home without having to sell the property and move out. It is generally designed for older homeowners who want to stay in their home while using part of its value for retirement needs or cash flow support.
Who qualifies for a reverse mortgage?
A reverse mortgage is generally for homeowners age 55 or older who want to access home equity while continuing to live in the property. Eligibility depends on factors such as age, the home itself, and the lender’s guidelines.
How much can you get with a reverse mortgage?
The amount available depends on factors such as age, property type, location, condition, and appraised value. The exact amount has to be reviewed case by case based on the lender’s guidelines and the details of the home.
Do I keep ownership of my home with a reverse mortgage?
Yes. You continue to own the home and remain on title as long as you meet the lender’s conditions, such as living in the property as your primary residence, maintaining insurance, and staying current on property taxes.
Are there monthly payments on a reverse mortgage?
Reverse mortgages are often chosen because they usually do not require regular monthly mortgage payments. Instead, interest is added to the balance over time and the loan is typically repaid later based on the lender’s terms.
When is a reverse mortgage repaid?
A reverse mortgage is generally repaid when the home is sold, the homeowner moves out permanently, or the homeowner passes away and the estate settles the balance. This is one of the main ways it differs from a traditional mortgage.
Does a reverse mortgage affect OAS or GIS?
Reverse mortgage proceeds are generally treated as loan proceeds rather than income, which is why they are often discussed differently from taxable income. If your decision depends on benefits or tax planning, we recommend reviewing that with the appropriate qualified professional.
What costs come with a reverse mortgage?
Reverse mortgages can include setup costs such as appraisal fees, legal fees, closing costs, and other administrative charges. They may also carry higher interest than some conventional mortgage products, so it is important to understand the long-term impact on your home equity.
Home Equity Line of Credit
What is a HELOC in Canada?
A HELOC, or home equity line of credit, is a revolving credit line secured by your home. It allows you to borrow against available equity as needed instead of taking all the money at once.
What is the difference between a HELOC and a refinance?
A refinance replaces your existing mortgage with a new mortgage, while a HELOC gives you access to a credit line secured by your home. A HELOC can be useful if you want flexible access to equity without fully replacing your current mortgage.
How much can I borrow with a HELOC?
The amount available through a HELOC depends on your home value, the balance of any existing mortgage, and the lender’s guidelines. The exact amount needs to be reviewed as part of the application.
What can a HELOC be used for?
A HELOC is commonly used for renovations, debt consolidation, emergency reserves, or other major expenses where flexibility matters. Many homeowners like it because they can borrow what they need as needed instead of taking one large lump sum.
How do HELOC payments work?
HELOC payments are generally based on the amount you have actually borrowed rather than the full credit limit available. During the draw period, many HELOCs allow interest-only payments, which can create flexibility but still needs to be managed carefully.
What are the benefits of a HELOC?
A HELOC can offer flexible access to equity, the ability to borrow and repay as needed, and a practical way to fund expenses without fully refinancing the home. It can be a useful option for homeowners who want flexibility rather than a single lump-sum structure.
Documents and Process
What happens after I apply online?
After you submit the online form, we review your information so we can better understand your goals, the type of mortgage you may need, and what documents or next steps may be required. From there, we can discuss your options based on your actual situation rather than general assumptions.
What do I need to apply for a mortgage?
The process usually starts with your basic contact details, mortgage goals, property information if applicable, and an overview of your income, debts, and financial position. Once we review that initial information, we may ask for supporting documents to assess the file more accurately.
When is an appraisal required, who orders it, and who pays for it?
An appraisal may be required when the lender needs to confirm the value of the property as part of the mortgage review. In many cases the lender or broker helps arrange it, and the cost is usually paid by the borrower unless a lender promotion or specific program says otherwise.
Does applying online commit me to anything?
No. Starting the application is simply a way to begin the conversation and give us enough information to review your situation. It does not lock you into a mortgage product or commit you to moving forward.
Is there a credit check when I apply for a mortgage?
Submitting your information online does not automatically mean a credit check has been authorized. A credit review generally requires your separate permission as part of the application process.
Will my information be shared with lenders?
Your information may be shared with lenders, mortgage insurers, financial institutions, and related service providers where needed to review or process your application. That is a normal part of the mortgage process when a file is being evaluated.
Support and Next Steps
Can I get an exact mortgage rate before I apply?
Exact mortgage rates depend on the full details of your file, including your credit, income, down payment or equity, property type, mortgage amount, and the lender reviewing the application. The best next step is to let us review your situation directly so we can tell you what options may be available.
Is mortgage approval guaranteed?
No. Final approval always depends on lender review, supporting documents, property details, qualification standards, and the lender’s current guidelines at the time the file is submitted. We can help you understand your options, but no ethical process should guarantee approval in advance.
Can I still get a mortgage if my credit is not perfect?
Yes, possibly. We look at the full picture, including what is affecting your credit, how recent it is, your income, and your down payment or equity. The best way to know what may be available is to let us review your file directly.
Can I get help if I need to close quickly?
Yes, but urgent timelines need to be reviewed directly. What may be possible depends on the strength of the file, the property details, lender turnaround times, and how quickly supporting documents can be provided.
Can you help with tax or legal questions about my mortgage?
We can help explain mortgage options, but tax and legal questions should be reviewed with the appropriate qualified professional. If your decision depends on legal structure, title issues, or tax treatment, it is important to get advice from the right source.
Can I still qualify if my income or down payment does not fit the usual guidelines?
Possibly. Files that fall outside the usual guidelines need to be reviewed case by case because the answer depends on the lender, the overall strength of the application, and the specific issue involved. We can review the details and let you know whether there may be a path forward.
How do I know which lender is right for me?
The right lender depends on the full details of your file, not just the type of mortgage you want. Income structure, property type, credit, down payment or equity, and your goals all affect which lender may be the better fit.
How do I know which mortgage option is right for me?
If you are not sure which direction makes the most sense, we can help you review your goals and financial picture to narrow it down. Many clients start the process not knowing whether a purchase mortgage, refinance, HELOC, private mortgage, or another option is the right fit.
Talk to Deepika About Refinancing Your Mortgage in Mississauga
You do not have to figure this out alone. Deepika will walk you through your actual numbers, explain any penalties, compare your refinance options, and answer your questions clearly. No pressure, no obligation, and no judgment.
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