Nancy Blakely, BComm
Your Mortgage, My Service
Dedicated ♦ Knowledgeable ♦ Friendly
Relax, while I find the best mortgage for you anywhere in Canada!
I have access to many different mortgage products and unpublished special rates from banks, credit unions, monoline, alternative, and private lenders. I can find the best mortgage or line of credit for you whether you are looking for a residential, multi-residential, or commercial loan for a new purchase, refinance, renewal.
I can accept applications through this secure online website if you click the "apply now" button, or otherwise I will be glad to take your application over the phone at 905.269.3721, whatever is easiest for you! I make mortgage financing quick and easy with e-signatures; therefore, we do not need to meet for you to get a mortgage!
It is important to understand that mortgage products can vary quite a bit from lender to lender in order to meet the various needs of borrowers. For instance, in addition to standard low interest insured and conventional uninsured mortgages from banks and monoline lenders, I have lenders that offer mortgages to borrowers with
- up to 5% cash back upon closing to cover closing cost and pay down debt;
- borrowed down payment;
- multiple rental properties;
- interest only loans;
- bridge financing;
- bankrupcy or consumer proposal;
- self employed with stated income;
- child tax credit included in income;
- child or spousal support payments included in income;
- reverse mortgages for property owners age 55+;
- qualified under the 'old rules';
- commercial loans;
- unsecured loans;
- car loans; and
- the list goes on.
I have the flexibility to meet your needs whatever they are. Simply put, as an Independent Mortgage Agent, I offer you more choices and an unbiased opinion.
I offer an excellent Mortgage Protection Plan from Manulife at an affordable price in additition the banks mortgage insurance. It is worth noting that the best thing about the Manulife Mortgage Protection Plan is that the plan is not discontinued if you move to a new home and or you refinance with another lender. If you purchase the plan through me, the plan stays with you as long as you have a mortgage even if you move and or change lenders.
I also collaborate with an insurance broker who is able to offer very low cost home and auto insurance because of their high volumes.
I believe everyone is better off if clients are making informed decisions. I work closely with clients to explain the process and their best options. Below is a summary of different types of mortgages and how to qualify for a mortgage for your general information and knowledge. Please do not hesitate to call if you have any questions.
Contact me today for your free consultation!
I look forward to speaking with you.
Mortgages 101 – by Nancy Blakely, Mortgage Agent
In order to understand your own situation and to decide for yourself how you would like to best move forward, it is important for you to understand about the various different types of mortgages, and how a person qualifies for a mortgage as follows.
Different types of mortgages
- Standard Insured: less than 20% down payment, less than $1 million property value, amortization 25 years or less, the cost of CMHC default mortgage insurance is added to your mortgage. Insured mortgages offer the lowest rate because there is no risk to the lender1. Insured/able mortgages can be transferred to another lender provided the amount and amortization does not change.
- Standard Insurable: 20% down payment or more, less than $1 million property value, amortization 25 years or less, the cost of CMHC default mortgage insurance is paid by the lender; therefore, rates are a little bit higher to cover their costs.
- Conventional Uninsured: 20% down payment or more, property value can be more than $1 million, amortization can be more than 25 years. ALL REFINANCED MORTGAGES AND MORTGAGES ON RENTAL PROPERTIES are conventional uninsurable.
- Alternative: 20% down payment or more, property value can be more than $1 million, amortization can be more than 25 years, qualifying ratios can be higher and credit score can be lower. Alternative rates are about half of one percent to three percent higher than conventional depending on the file. There is generally a lender and or broker fee deducted from the mortgage at the time of closing.
- Private: Private lenders vary in their requirements and are quite flexible. They accept poor or no credit. They often lend based on equity only. Interest rates are higher and lender/broker fees may be $4,000 to 4% depending on circumstances and type of mortgage. For instance, open mortgages will likely have a higher fee in order for the lender to get a return on their investment.
- Reverse Mortgage: The borrower does not need to income or credit qualify for a reverse mortgage. Lenders qualify the borrower based on age, location, and value of the subject property. Borrowers must be over age 55. The older the borrower, the more they qualify for. Banks that offer reverse mortgages guarantee that the borrower can live in the home for as long as they want provided, they maintain the property, fire insurance, and pay their property taxes. The penalty to pay off the mortgage early is half if the borrower moves to a senior’s residence and waived if they pass away.
How to qualify:
1. Income Qualification (borrowers must meet both ratios)
- Gross Debt Service Ratio GDS = monthly mortgage payment + property taxes + heat + 50% condo fee can not be more than 39% of monthly income to qualify for a standard or conventional mortgage, and to a maximum of 50% and with a few lenders up to 60% for alternative mortgage using BOC rate.
- Total Debt Service Ratio TDS = GDS calculation + monthly debt payments cannot be more than 44% of monthly income to qualify for a standard or conventional mortgage, and to a maximum of 50% and with a few lenders up to 60% to qualify for an alternative mortgage using Bank of Canada rate.
- The Bank of Canada determines the qualifying rate that we must use to calculate the GDS and TDS. The qualifying rate is generally about 2% more than your actual mortgage rate because the government would like to know you can afford mortgage payments if rates go up in the future.
2. Credit history and score (Range: very poor 480 to perfect 900 - no credit history receives an R instead of a score)
- Standard Insured or Insurable mortgages require a minimum of 2 years credit history of 2 credit items to show that a person can handle credit and a minimum score of 650. All credit collections must be paid in advance of the application or mortgage funding.
- Lenders generally require a minimum 600 credit score for conventional uninsured mortgage although some lenders require 650 or 680, and a few may allow lower than 600 on exception as a secondary applicant. All credit collections must be paid in advance
- Many alternative lenders accept very low credit scores and a few will accept a R with no credit history on exception. Alternative lenders assess the risk on each file individually at the time of the application. Collections must be paid at closing with mortgage.
- Private lenders vary in their requirements. Private lenders assess the risk on each file individually at the time of the application. They may not ask for income or credit history and may approve a loan based on the property alone, but then they may lower their ratio of loan to value of the property.
- Maximize your score with at least 2 credit items reporting at least 2 years, pay your debts on time, and maintain your line of credit and credit card balances below 67% of your limit.
- The property must be approved by the lender because the lender is investing their money and securing it against the property; therefore, the lender wants to know the property is marketable in the event that they need to foreclose. Lenders may offer a lower loan to value on rural, rental or million-dollar properties because these properties pose a higher resale risk to the lender. Standard and conventional mortgages require the property to be between 95%-98% complete depending on the lender’s policies.
The government anti-laundering regulations require 90 days history of the savings for your down payment as well as 90-day history of 1.5% of the purchase price to cover closing costs such as legal fees and land transfer taxes. These funds should be saved from a legitimate source in a financial institution, equity from property owned, borrowed, or gifted. Closing costs may also be funds from a cash back mortgage.
To learn more or pre-qualify, call Nancy Blakely 905.269.3721 or Apply Now by clicking the Apply Now button in the upper right of this page.
 Some very low-rate mortgages have restrictive conditions. It is important to work with a Mortgage Agent you trust to explain the details to you and to find the mortgage best suited to your level of risk.
Cobourg, Port Hope, Northumberland, Belleville, Trenton, Brighton, Colborne, Peterborough, Durham, Bowmanville, Oshawa, Pickering, Whitby, Newcastle, Toronto, Hamilton, Etobicoke, St. Catharines, GTA.