Mortgages are complex, whether you’re buying your first home, renewing a mortgage or tapping into your homes equity, finding the right mortgage can be overwhelming. With countless mortgage products from various lenders, there’s no “one size fits all” solution.
At m factory, we provide a personalized mortgage journey detailing every step of the way, ensuring you secure the mortgage that’s the perfect fit for your needs.
A bank is limited to its own mortgage, a broker has access to multiple banks, ensuring more options
Buying a Home can be overwhelming, that’s why we work with everyone involved, from the Realtor, Home Inspector, Lawyer, and anyone involved in your mortgage journey.
Is your mortgage working for you? Whether you are looking at Renewing to tapping into your homes equity. We provide all of your options in an easy convenient manner with no obligations.
A mortgage is a loan used to purchase a property or used to access equity against the value of a property you already own. It is a secured loan, meaning the property itself serves as collateral.
When you take out a mortgage, you agree to repay the lender over time through scheduled payments, which typically include:
If you fail to repay the loan, the lender has the right to foreclose on the property, meaning they can take ownership and sell it to recover the debt.
No, a Home Equity Line of Credit (HELOC) is not the same as a mortgage loan, but they are both ways to borrow against your home’s value. Here’s how they differ:
Mortgage Loan:
Home Equity Line of Credit (HELOC):
Key Difference:
Open Mortgage
Closed Mortgage
The mortgage amortization and mortgage term are two key aspects of a mortgage, but they refer to different things:
Mortgage Amortization
This is the total length of time it takes to fully pay off your mortgage if you follow the agreed-upon payment schedule. It’s typically 15 to 30 years and determines how much of each payment goes toward the principal and interest over time.
Mortgage Term
This is the length of time your current mortgage agreement is in effect before you need to renew or refinance. A term can range from a few months to 10 years, with 5 years being common. At the end of each term, you either pay off the remaining balance, renew with your lender, or switch to a new lender.
Key Difference:
Mortgage terms range from six months to 10 years, and the right choice depends on your financial situation, goals, risk tolerance, and preference for a fixed or variable rate.
Many homeowners choose a 5-year term, offering stability and predictable payments—especially when interest rates are low. A shorter term (1 to 3 years) may appeal to those seeking lower variable rates or planning to move soon, though it carries the risk of rate increases.
Also referred to as; Mortgage Default Insurance, Mortgage Loan Insurance, Default Insurance, and CMHC Insurance.
Mortgage default insurance protects lenders in case a borrower defaults (fails to make payments) on their mortgage. It does not protect the borrower—it is required by lenders when the down payment is less than 20% of the home’s purchase price (high-ratio mortgage).
In Canada, mortgage loan insurance is provided by three main insurers:
If you’re buying a home with a down payment of less than 20%, your broker and lender will automatically arrange for mortgage default insurance through one of the three approved providers: CMHC, Sagen, or Canada Guaranty. You do not need to apply for it yourself.
The main difference between a conventional mortgage and a high-ratio mortgage is the size of the down payment and whether mortgage insurance is required.
1. Conventional Mortgage
2. High-Ratio Mortgage
A high-ratio mortgage applies when your down payment is less than 20% of the purchase price. In these cases, the mortgage must be insured by CMHC, Sagen, or Canada Guaranty.
If you plan to live in the second property, you can qualify for a high-ratio mortgage. However, if the property is intended as a rental, a minimum 20% down payment is required.
Example Scenarios:
These four types of insurance serve different purposes in protecting homeowners, lenders, and other stakeholders. Here’s how they differ:
Lender
Yes (if down payemnt <20%)
Lender losses if borrower defaults on mortgage.
Homeowner (premium may be added to the principal at purchase)
Homeowner & Lender
Yes
Property damage, liability
Homeowner
Homeowner & Lender
Lender will likely require it. Discuss with lawyer. (Recommended)
Title fraud, errors, liens.
Homeowner
Homeowner & Family
Optional (Recommended, separate from lender)
Mortgage balance and/or payments and optional property tax payments in case of death, disability or job loss.
Homeowner
A mortgage charge is a legal claim that a lender places on a property when issuing a mortgage. It gives the lender the right to take ownership of the property if the borrower fails to repay the loan.
There are two types of mortgage charges, a Standard Charge Mortgage and a Collateral Charge Mortgage.
Registered for the exact mortgage amount borrowed.
Registered for more than the borrowed amount (e.g., 125% of home value).
Requires refinancing.
Allows additional borrowing with the same lender.
Easier and usually free at renewal.
Harder and often requires legal fees to discharge and re-register.
Standard legal fees for setup and refinancing.
Potential additional legal fees if switching lenders.
Less flexible—must refinance for more funds.
More flexible—can borrow more under the same registration.
Most borrowers, keeping options opened.
Homeowners will low loan-to-value.
Getting Pre-Approved is as easy as 1-2-3 with our online application
