Mortgage FAQ — Your Questions Answered

Here are the questions I hear most often from Winnipeg homebuyers, homeowners, and people who’ve just started thinking about getting a mortgage. If you don’t see your question here, reach out directly — I’m always happy to talk.

Working with a Mortgage Broker

What does a mortgage broker actually do?

A mortgage broker acts as your advocate in the lending marketplace. Instead of you applying separately to multiple banks and having your credit pulled each time, I submit your application to the lenders best suited to your situation and negotiate the rate and terms on your behalf. I handle the paperwork, the lender communication, and the problem-solving — you just need to provide the documents I ask for.

How is a broker different from going to my bank?

Your bank can only offer its own mortgage products. A broker works with dozens of lenders — major banks, credit unions, trust companies, and alternative lenders — and recommends the one that fits your needs best. Because brokers send large volumes of business to lenders, we often have access to rates that aren’t available to walk-in customers.

Does it cost anything to use a mortgage broker?

In the vast majority of cases, no. Brokers are compensated by the lender when your mortgage closes — similar to how a bank pays its own mortgage specialists. This fee comes from the lender, not from you, and your rate is never marked up to cover it. In rare situations involving hard-to-place mortgages (private lending, very complex files), a broker fee may apply — and I’ll always tell you upfront before we proceed.

Can you get me a better rate than my bank?

Very often, yes. Because I’m negotiating with many lenders simultaneously and sending significant volume to each one, I frequently have access to rates below what banks offer retail customers. Even a 0.10% rate difference on a $400,000 mortgage over 5 years adds up to thousands of dollars in savings. It costs you nothing to find out — so there’s no reason not to check.

How long does the mortgage process take?

A pre-approval typically takes 24–48 hours once I have your documents. A full approval after an accepted offer usually takes 3–7 business days, depending on the lender and complexity of your file. I’ll flag any potential timing issues early so nothing catches you off guard.

Do I need to come into your office?

No. The entire mortgage process can be done remotely — by phone, email, or video call. Document uploads are electronic. If you prefer to meet in person at my Winnipeg office, that’s always an option too. I work around your schedule, including evenings and weekends.

Qualifying & Approval

What credit score do I need to get a mortgage?

For most prime lenders, you generally need a credit score of 680 or higher. Scores between 600–679 can still qualify with certain lenders at slightly different terms. Below 600, options shift toward alternative (B) lenders or private lenders — viable paths, especially as a bridge while you rebuild credit. I can run a soft credit check that won’t impact your score to give you a clear picture of where you stand.

What is the mortgage stress test?

The stress test is a federal rule requiring you to qualify at a higher rate than the one you’ll actually pay — specifically, the higher of your contract rate plus 2%, or 5.25%. For example, if your actual rate is 4.39%, you must prove you could afford payments at 6.39%. Use our stress test calculator to see where you stand.

How much down payment do I need?

The minimum down payment depends on the purchase price: 5% on homes up to $500,000; 5% on the first $500,000 and 10% on the portion above $500,000 up to $999,999; and 20% on homes $1 million or more. Putting down less than 20% requires mortgage default insurance (CMHC or equivalent), added to your mortgage balance.

How much mortgage can I qualify for?

It depends on four main things: your gross income, your existing monthly debts, your down payment, and your credit score. Most people can qualify for roughly 4–5x their annual household income, though this varies. The best way to know your exact number is a pre-approval — free, no commitment, and gives you a concrete budget before you start shopping.

I’m self-employed. Can I still get a mortgage?

Absolutely — though the process is a bit different. Self-employed borrowers typically need to show 2 years of T1 Generals and Notices of Assessment. I work with lenders who specialize in self-employed files and understand how to look at business income realistically. There are also stated income programs for borrowers who can demonstrate business stability but whose declared income doesn’t reflect their true earning power.

My bank turned me down. Does that mean I can’t get a mortgage?

Not at all. A “no” from your bank often just means they’re not the right lender for your situation. I work with a range of B-lenders and alternative lenders who look beyond the standard checklist. Even in cases that require a private mortgage short-term, that’s often a bridge to a stronger position with a prime lender in 12–24 months.

What documents do I need to apply?

For most applications: proof of income (pay stubs, letter of employment, or T1s for self-employed), 2 years of Notices of Assessment, a recent bank statement showing your down payment, government-issued ID, and details on any existing debts. If you’re buying a specific property, I’ll also need the MLS listing and accepted purchase agreement. I’ll give you a customized checklist once we’ve talked.

Rates & Terms

Should I choose a fixed or variable rate?

It depends on your situation. Fixed rates give you payment certainty for the full term. Variable rates fluctuate with the Bank of Canada’s prime rate and have historically saved borrowers money over the long run, but come with uncertainty. With the Bank of Canada paused at 2.25%, variable rates are currently attractive. I’ll walk you through a rate comparison based on your risk tolerance and financial situation.

What’s the difference between a mortgage term and an amortization period?

Your term is the length of your current mortgage contract — typically 1 to 5 years, at the end of which you renew. Your amortization is the total time to pay off the mortgage in full — most commonly 25 years, though 30-year amortizations are now available for insured mortgages on new construction. Longer amortization means lower monthly payments but more interest paid overall.

What is a mortgage renewal and when should I start thinking about it?

When your mortgage term ends, you renew — with your current lender or a new one. Your lender will send a renewal offer 30–90 days before your term ends. Do not simply sign it. I recommend reaching out at least 4–6 months before your renewal date so we have time to shop the market. There’s no cost to switching lenders at renewal if the loan amount and amortization stay the same.

Can I break my mortgage early?

Yes, but it usually comes with a prepayment penalty — either 3 months’ interest (variable rate mortgages) or an Interest Rate Differential calculation (fixed rate mortgages). IRD penalties can be substantial. Before breaking a mortgage, I’ll calculate whether the savings outweigh the penalty. Sometimes the math works out clearly in your favour; sometimes it doesn’t.

What does “open” vs. “closed” mortgage mean?

A closed mortgage locks you in for the term with limited prepayment privileges (usually 10–20% of the original principal per year). Breaking it early triggers a penalty. These come with lower rates. An open mortgage can be paid off or renegotiated any time without penalty — but rates are higher. Most Canadians choose closed mortgages and use their annual prepayment privileges strategically.

First-Time Buyers

What is the First Home Savings Account (FHSA)?

The FHSA is a registered account that lets first-time buyers save up to $8,000/year (lifetime maximum $40,000) for a home purchase — contributions are tax-deductible like an RRSP and withdrawals are tax-free like a TFSA. It’s one of the best savings tools available to first-time buyers and I strongly encourage eligible clients to open one as early as possible.

Can I use my RRSP for a down payment?

Yes, through the Home Buyers’ Plan (HBP). First-time buyers can withdraw up to $35,000 from their RRSP (or $70,000 for a couple) tax-free for a down payment. You must repay the amount back into your RRSP over 15 years. The FHSA and HBP can be combined to significantly boost your down payment.

What other programs are available for first-time buyers in Manitoba?

Beyond federal programs like the FHSA and HBP, Manitoba has the First Time Home Buyer Tax Credit and you may qualify for a rebate on the provincial land transfer tax. The enhanced Home Buyers’ Amount (now up to $10,000) provides a meaningful tax credit at filing. I’ll make sure you’re aware of every program you’re eligible for.

Still have questions?

Reach out any time — no obligation and no cost to talking.