Mortgage Solutions in BC, Alberta, and Manitoba from BMP

When you want to purchase a property, you probably don’t have enough cash to pay for it all upfront. So, most people carry a mortgage, which is a special type of loan used to finance a property. A mortgage differs from a car loan or other type of consumer loan simply because the lender secures the loan with real estate. Usually, the repayment period is longer, and the interest rates are lower, too. Plus, you likely need more documentation and a better credit rating to get a mortgage.

Fortunately, Bayfield Mortgage Professionals (BMP) are here to help you with every aspect of your alternative lending solution. Click on any one of these topics to find out more about:

Purchasing a Home
For First Time Home Buyers
Mortgage Renewals
Refinancing Your Mortgage
Equity Take Out (ETO)
Home Buyers New to Canada
Reverse Mortgages
Second Mortgages

If you have questions and would like to speak with a BMP representative, please contact us.

To get started with Bayfield Mortgage Professionals (BMP), apply online using the convenient and secure BMP online mortgage application.

Find a Mortgage Broker Near You

Purchasing a Home in BC, Alberta, or Manitoba

Buying a home is exciting, but many times it may seem overwhelming, especially when you don’t know what to expect throughout the process. Here are the typical stages each homebuyer goes through to purchase a home.

Learn Some Basics

Some of the terminology is specific to purchasing a home, so you may not have ever encountered the terms. Here are some commonly used terms when you are purchasing a home.

A mortgage is a term used to specifically describe a loan that is secured by real estate. Like other loans, you pay off the balance over time and pay back the principal plus interest based on your mortgage agreement.

A down payment is how much money you put down towards the price of your home. The balance is your mortgage.

If you put down 20% or more of the purchase price, that is called a conventional mortgage.
If you put down less than 20% of the purchase price, that is called a high ratio mortgage.

For a simplified example, if the purchase price of your new home is $450,000, a 20% down payment would be $90,000. So, your conventional mortgage would be for $360,000. If you put down 10%, or $45,000, your high ratio mortgage would be for $405,000.

The amortization period is how many years it would take to completely pay off your mortgage. Many homebuyers choose the longest amortization period available. With a high-ratio mortgage, the maximum amortization period is 25 years. With a conventional mortgage, you could choose an amortization period of up to 30 years. The longer your amortization period, the lower your monthly payments, but the interest you pay is higher overall. A shorter amortization period increases your monthly payments, but you pay less interest and could pay off your mortgage sooner.

The mortgage term is how long your contract keeps you with the same lender, interest rate, and other associated conditions. At the end of your term, you renew your mortgage with the same lender, pay off the principal, or switch lenders.

Payment frequencies are how often you make your mortgage payments. With Bayfield, you can choose to make your mortgage payments biweekly or monthly.

Collect Your Down Payment

As you save every month towards your down payment, you get closer and closer to owning your own home. In addition to your current savings, you can use your RSP contributions if you are a first-time homebuyer. Some homebuyers receive cash gifts towards their down payment from family members.

Get Pre-approved

There is nothing more disappointing than finding your dream home but learning you can’t afford it. So, the first step is to ask your mortgage broker for a mortgage pre-approval to get an idea of how much mortgage you could get.

Find a Mortgage Broker Near You

Shop for Your New Home

Find a real estate agent to help you find your new home. Look online and visit properties until you find just the right one.

Make an Offer

Once you find the right place in the right price range, make an offer! Your real estate agent will negotiate with the current owners’ agent to agree on the price and other terms.

Arrange for a home inspection to learn the details of the condition of the home.

Find a Home Inspector Near You

Get a Home Appraisal

Your mortgage broker will set up a home appraisal to evaluate the value of the home, which is often not exactly the same as the purchase price. This provides the foundation for your mortgage.

Hire a Notary or Real Estate Lawyer

The notary or real estate lawyer manages the paperwork with your lender, the municipality, and the real estate agents. Ask your real estate agent or mortgage broker to recommend someone suitable.

Purchase Property Insurance

With a mortgage on the property, you will need to get insurance coverage in case of unforeseen circumstances.

Closing Day

Chances are a few weeks pass from the time you have an accepted offer until closing day. Closing day is when you meet with your real estate agent to receive the keys, and your new place is officially yours! Now, you just need to move in.

If you have questions and would like to speak with a BMP representative, please contact us.

To get started with Bayfield Mortgage Professionals (BMP), apply online using the convenient and secure BMP online mortgage application.

Find a Mortgage Broker Near You

For First-Time Homebuyers in BC, Alberta, and Manitoba

You’ve been looking forward to buying your first home. You spend time checking out listings online, wondering what’s realistic for you. You’ve counted how many rooms you need. And likely have a list (at least in your head) of features you’d like.

A big deck for barbeques? A gourmet kitchen? At least one more bathroom? A fenced yard?

But it all costs something.

So, as a first-time homebuyer, it’s challenging to know what you can really handle.

Homeownership – The Largest Financial Decision

For most people, purchasing a property is the largest financial decision of their life. This first property may be the only one you ever purchase. But chances are, you’ll move a few times in your life.

So, how do you know if you’re ready to make the big step into homeownership? This checklist may help.

Financial Stability
Financial Management Skills
Time and Interest for Home Maintenance
Have a Down-payment
Can get Approved for a Mortgage

Surprise! Homeownership has More Costs Than You Knew

Most first-time homebuyers find there are costs they never even considered.

Upfront Costs – Down payment, inspection fees, legal fees, closing costs, taxes, moving expenses, etc.
- Property Purchase Tax in BC is a 1% provincial tax on the first $200,000 of your purchase price and 2% on the remainder. As a first-time home buyer, you may qualify for an exemption. Ask your lawyer, or notary public, to determine your eligibility.
- Conveyance is the legal paperwork for your purchase. Put aside between $700 and $1,000 for a lawyer or notary public. The cost covers legal fees and disbursements, like your share of property taxes, the registration at land titles, title insurance, and so forth.
- Surveys or Title Insurance are usually required by lenders. A site survey verifies the boundaries and dimensions of the building and the lot for about $300. Alternatively, title insurance costs approximately $200. Ask your lawyer or notary to see which is best for you.
- Appraisals are requested by some lenders on some properties. Formal on-site appraisals are not generally required if you have a high ratio mortgage insured by the CMHC or Sagen.
- Building Inspections are not required for financing but are a good investment. Starting at about $300, depending on the size and type of home, a building inspector provides a thorough inspection. You receive a detailed report outlining the property’s condition that alerts you to potential problems.
Ongoing Costs – Mortgage payments, property taxes, utilities, insurance, repairs, maintenance, and any condo fees or other ongoing costs.

Do You Have Enough for a Down Payment?

No matter how you choose to finance the rest of your property, it all starts with a down payment.

In Canada, the minimum down payment is 5% of the purchase price (not the asking price), but more is better. A standard down payment is 20%, so if you have less than 20% for your down payment, you’ll need to purchase mandatory Mortgage Loan Insurance. This high-ratio mortgage must be insured by either the Canadian Mortgage Housing Corporation (CMHC) or Sagen Financial Canada. The premium charged by the insurer is added to your mortgage balance.

The more you initially put into the down payment, the lower your monthly payments will be.

You can even tap into your RRSP savings up to $35,000, which is how about half of Canadians make their first down payment. You’ll have 15 years to deposit those funds back into your RRSP and can defer the payments for up to 2 years. Click HERE for more information from the Royal Bank. Ask your mortgage broker for more details.

Some first-time homebuyers are lucky enough to secure a gift from an immediate family member. Parents typically contribute by providing a signed gift letter explaining that the funds don’t need to be repaid. A screenshot of the funds’ transfer confirms the transaction.

What Does it Mean to Be Pre-Qualified for a Mortgage?

Once you have your down payment together, it’s time to start the process of getting pre-qualified.

You don’t have to submit detailed documentation, so this just gives you an estimate of how much you can spend on a property. To get pre-qualified, you’ll put together an overview of your financial situation. Have your income, assets, debt, and credit score handy.

Then, you add your pre-qualification amount to your down payment and get a price range to start real estate shopping!

Mortgage calculator

How is Pre-Approval Different from Pre-Qualification?

Your pre-qualification gave you an estimate of how much you could afford to spend on a house.

A pre-approval requires you to actually submit documentation of your financial history for verification. Once you do, you have more specific information like:

How much you can invest in a property
What you’ll need to pay each month as a mortgage payment
The interest rate for the first term of your mortgage

This information helps you and your real estate agent keep looking at properties in a realistic range.

Experienced agents, mortgage brokers, and purchasers recommend you stay away from the maximum amount of your pre-approval. Closing costs range between 1% and 4% of the purchase price, and you’ll need to pay those upfront.

A pre-approval is especially important when interest rates are rising. Your pre-approval will guarantee you an interest rate for a certain defined period, often locked in for 90 to 120 days (3 or 4 months). If rates go down while you shop, you’ll get the lower rate, so don’t worry.

Sellers also like it when they get an offer from someone with a pre-approval, which is incredibly important in a competitive bidding situation.

Secure and Protect Your Pre-Approval

Be careful not to have more credit reports pulled after you receive your pre-approval. Don’t apply for a new credit card, close any credit accounts, change jobs, or make any big purchases until after closing day on your new home!

Also, be ready to demonstrate where your down-payment funds came from. If you transferred them from your RRSP or had them in savings, make sure you have the bank documents for the last 90 days.

Final Approval for First-Time Homebuyers

Once you have chosen the property you want, your real estate agent and mortgage broker will guide you through the process of getting final mortgage approval.

If you have questions and would like to speak with a BMP representative, please contact us.

To get started with Bayfield Mortgage Professionals (BMP), apply online using the convenient and secure BMP online mortgage application.

Find a Mortgage Broker Near You

Mortgage Renewals in BC, Alberta, and Manitoba

You’ve had your mortgage for a while. It was a good deal. But is it still the best you can do?

About 3 months before the renewal date, your lender usually sends you a notice to let you know you’re nearing the time to make a decision.

A federally regulated financial institution must give you a renewal statement at least 21 days before your current mortgage term ends. You also must receive notification 21 days before the end of your term if the lender won’t renew your mortgage.

A renewal statement contains –

Your mortgage balance as of your renewal date
The interest rate
How frequently you make payments. This is usually monthly, but some mortgages are twice a month or have other payment frequencies
The term. This is the time you agreed to when you signed for the interest rate and other details
Charges and fees

Some Canadian banks are making it super easy to renew right through your bank app or online. And that’s what most mortgage holders do.

But it is not always the best idea.

The economy has changed a lot over the past few years, so it is quite possible that checking out your options before you sign anything is a good idea. Gathering information doesn’t mean you must choose not to renew with your current lender, but it will give you peace of mind knowing you made the right decision.

Why Renewal Time is Ideal to Shop Around

When your mortgage term ends, you can choose to renew with a different lender (offering a better deal) with no penalties from your current lender. This is a perfect time to move from a variable rate to a fixed rate (if you believe interest rates are on the rise) or vice versa.

As you shop around for other potential lenders, remember to ask your current lender to renegotiate your interest rate and terms to compare with other lenders.

Your local mortgage broker or your BMP broker will walk you through the process. You may need to make changes to your life insurance or other policies.

If you have questions and would like to speak with a BMP representative, please contact us.

To get started with Bayfield Mortgage Professionals (BMP), apply online using the convenient and secure BMP online mortgage application.

Find a Mortgage Broker Near You

Refinancing Your Mortgage in BC, Alberta, or Manitoba

If you’re wondering how to improve your current financial situation, refinancing your mortgage may be an option.

Refinancing your mortgage is when you pay off your current mortgage and take out a new mortgage on the same property with different terms. You might decide to refinance for many reasons, like:

Your house went up in value. Leverage up to 80% of the new value of your home on today’s market
Your house went up enough that with an 80% mortgage, you can pay off your higher interest high ratio mortgage
You need funding for renovations or repairs
You’d like to make an investment in another property or add to your portfolio in another way
Debt consolidation would lower your monthly expenses
You came into some money and want to pay down what you owe on your house
The kids need tuition for private school or university
You’re going through a separation or divorce
A better interest rate is available
You want to lock in your variable rate mortgage as interest rates go up (or vice versa)
It’s time for that epic vacation

Refinancing a mortgage puts you in the driver’s seat, reducing financial stress and setting a new course for your future.

Refinancing During Your Mortgage Term

Your current mortgage paperwork lays out what happens if you want to break the agreement before the contract ends. Likely, there are penalties to pay to get out of your current mortgage. Some mortgages have low or no penalties, whereas most require you to make several months’ interest payments.

But refinancing is much like when you got the mortgage when you first bought the house. For example:

You can finance up to 80% of the property’s current market value – not the purchase price!
Since you only finance 80% of the value, there’s no high-ratio default insurance
You do need to reapply and resubmit all the documentation necessary for approval
An appraisal determines the current value, so you need to pay for that
Closing costs associated with the mortgage (not the property) mean you’ll have another bill with the lawyer or the notary

If you have questions and would like to speak with a BMP representative, please contact us.

To get started with Bayfield Mortgage Professionals (BMP), apply online using the convenient and secure BMP online mortgage application.

or Find a Mortgage Broker Near You

Equity Take Out (ETO) or Equity Loans in BC, Alberta, and Manitoba

Has your house gone up in value since you first bought it? If so, you may have some untapped potential for funding! Your house is likely your most valuable asset. Your equity grows as you pay down your mortgage and real estate prices go up.

What is Equity?

Equity is the difference between your property’s current market value and any mortgages or loans you owe. Your equity builds with every mortgage payment because some portion goes to your mortgage’s principal balance.

For a simple example, if you bought your house 5 years ago for $500,000 and took an 80% mortgage for $400,000, you would have $100,000 in equity back then. But if your house is now worth $650,000, even if you haven’t paid down your mortgage principal (you have!), you now have at least another $150,000 in equity. So, now it is possible for you to tap into that $250,000.

But you can’t have all of it in an equity loan.

You can still only finance a maximum of 80% of the value of your property. At $650,000, 80% is $520,000. So, you have (at least) the difference between your original mortgage balance and $520,000. That’s (at least) $520,000 – $400,000, or $120,000 you could access as an equity loan.

You don’t need to access all of the equity in your home. You may already know exactly how much you need, or you can build in some extra as a buffer.

Talk to your mortgage broker to see how much equity you can access.

An Equity Line of Credit vs an Equity Loan

There are a few ways to access this equity. You could simply refinance your entire mortgage. Ask your mortgage broker for more details.

Alternatively, you could take a Home Equity Line of Credit (HELOC) or a Home Equity Loan.

A HELOC works like any other line of credit. You have access to the total but only make payments based on the balance you’ve withdrawn.
A Home Equity Loan is for a fixed amount, paid upfront, with specified payments over a specified period.

Often, you can access more of the value of your home with a fixed Home Equity Loan than with a HELOC. Your mortgage broker will help you determine which is better for your financial situation.

Should You Use Your Home Equity?

Using your home as collateral for a home equity line of credit or loan can be an ideal choice for:

Debt consolidation
Tuition for yourself or your kids
Paying off student loans
Renovations and home repairs
Large purchases such as a vehicle or a boat
Making a down payment on another investment or vacation property

Using your home equity, securing your loan with your property offers a lower interest rate than unsecured credit products.

If you have questions and would like to speak with a BMP representative, please contact us.

To get started with Bayfield Mortgage Professionals (BMP), apply online using the convenient and secure BMP online mortgage application.

or Find a Mortgage Broker Near You

Home Buyers New to Canada in BC, Alberta, and Manitoba

New residents in Canada are arriving from all over the world! Purchasing a home is a huge part of putting down roots in a new country.

Fortunately, home buyers new to Canada can find mortgage solutions with BMP for properties in BC, Alberta, and Manitoba.

Permanent Residency in Canada and Getting a Mortgage

Eligibility for a mortgage for those new to Canada includes –

Permanent residency or a valid work permit
A 5% down payment, based on your good credit history.
If you have less than a 20% down payment, the property must be owner-occupied
Confirmation of immigration or a move to Canada in the last 5 years (60 months)
Your debts outside of Canada are included
Rental income from outside Canada is not included in your total income
You can’t have a Guarantor on your mortgage application

New to Canada Programs – Not Yet a Permanent Resident or Have Limited Credit?

If you are not yet a permanent resident or have limited credit, there are several New to Canada Programs to help you get started.

To qualify you –

Must have arrived in Canada in the last 5 years (60 months)
Have worked full-time for at least 3 months
If you need a mortgage for 90% of the purchase price of the property, you’ll need a letter of reference from a recognized financial institution. Alternatively, you can submit 6 months of bank statements from your primary account.
If you need a mortgage for between 90.01% and 95% of the purchase price, you’ll need to submit an international credit report (TransUnion or Equifax.) Alternatively, you can submit 12 months of your payment history for rent, utilities, or vehicle insurance.

Alternative Lenders for Home Buyers New to Canada in BC, Alberta, and Manitoba

Alternative lenders offer home buyers new to Canada another option. If you don’t have a strong credit history or a guaranteed income, alternative lenders may offer you lower entry requirements.

You don’t need to be new to Canada. Alternative lending options may be necessary for anyone with –

Arrears with CRA
Non-traditional income sources, such as self-employment and gig workers
Problems with a low credit score, credit arrears, mortgage payment history, or bankruptcy

How to Build Your Credit Rating to Get a Mortgage in Canada

Your credit rating is a critical factor when you get a mortgage in Canada. Your credit rating is your financial reputation, so lenders use it to determine how much of a down payment you’ll need and what interest rate you’ll pay.

The most important thing you can do to build your credit is to never miss a payment for anything. Getting a credit card, using it every month, and paying it off – in full – is an excellent way to build credit. Your other monthly bills, like your rent, utilities, and cell phone, contribute to your credit score, so be careful to always make your payments on time.

To buy a house in Canada, you need to start with a down payment. So, you’ll need to start saving up! The down payment is an upfront cost that you invest in your property.

Depending on your credit score and other factors, your lender may require as little as 5% to 10% of the purchase price of your house. But down payments of 5% only apply to properties under $500,000, even for those not new to Canada. If the purchase price of your house is over $500,000, the down payment is at least 10% for the portion over $500,000.

So, for example, for a property purchased at $600,000, the 5% down payment on the first $500,000 is $25,000. Then, you have a 10% down payment on the next $100,000 ($600,000 – $500,000) of $10,000. So, your total down payment would be at least $25,000 + $10,000 = $35,000.

If you are new to Canada, buying a home is an important part of putting down roots in your new country. Get the help you need to build your future in Canada!

If you have questions and would like to speak with a BMP representative, please contact us.

To get started with Bayfield Mortgage Professionals (BMP), apply online using the convenient and secure BMP online mortgage application.

or Find a Mortgage Broker Near You

Reverse Mortgages in BC, Alberta, and Manitoba

Build your retirement on your terms.

You’ve worked hard, and now it’s time to take the pressure off. A reverse mortgage may give you the financial freedom you’ve always dreamed about.

What is a Reverse Mortgage?

With a reverse mortgage, you can access your home equity without selling your home. You may have heard the term equity release, which is the same process.

You borrow up to 55% of the current value of your home – not how much you paid for it. So, if your home has gone up in value since you bought it, you may have significant equity!

The maximum amount you can borrow will depend on –

How old you are
The current appraised value of your home
Your lender
Where you live

You can only secure a reverse mortgage on your primary residence, which usually means you live there for at least 6 months every year.

Are You Eligible?

If everyone on the title of the home is at least 55 years old, you are eligible for a reverse mortgage. Everyone on the title is included in the reverse mortgage.

How a Reverse Mortgage Works

Your BMP or local mortgage broker will help you through the process step by step.

If you have questions and would like to speak with a BMP representative, please contact us.

Find a Mortgage Broker Near You

With a reverse mortgage, you receive up to 55% of the current value of your home. You may access the money from your reverse mortgage as a one-time lump sum payment or choose to take some upfront and the rest over time. Any current mortgages or home equity lines of credit (HELOC) are paid off before you receive your funds.

Then, you are free to choose how to spend those funds without ever making another mortgage payment.

How could that be? No payments? Really?

Yes, really.

Your reverse mortgage is paid back when –

You move out of your home
The house is sold
The last borrower on the title dies

The interest does build up over time when you aren’t making payments, so you may have less equity in your home – depending on the changes in the price of real estate.

How to Repay a Reverse Mortgage

You don’t need to make regular payments on your reverse mortgage, but it does eventually need to be paid back.

If you come into some money, you have the option to repay the principal and interest at any time. There might be a fee for paying it out early.

Your estate is responsible for repaying the loan. If more than one person is on the title, the loan is due for repayment when the last one dies or sells the home.

Timing for repayment varies, so ask your broker. For example, your estate may have 6 months to repay the balance. But if you move into long-term care, the terms may be more like 12 months for paying it back.

Reverse mortgages come with a No Negative Equity Guarantee, so the loan will not grow to be more than the home’s fair market value. Almost every Canadian property still has equity after repaying the reverse mortgage loan.

Advantages of a Reverse Mortgage in BC, Alberta, and Manitoba

No monthly payments
Keep your home and access some of the current market value
The funds are entirely tax-free
Don’t repay the loan until you sell or leave your home
The house is still yours
No impact on Old-Age Security (OAS), Canada Pension Plan (CPP) or Guaranteed Income Supplement (GIS) benefits

Your mortgage broker may ask you to get independent legal advice. If so, you’ll need proof from the lawyer that you received their advice.

Why Consider a Reverse Mortgage

If you are over 55, a reverse mortgage may be ideal. But there are many other options for borrowing money, so here are a few reasons people consider a reverse mortgage.

Debt Consolidation – No more monthly debt payments
Increased Monthly Income – Set a schedule for withdrawals to access your funds a little at a time
Retire Earlier – Move up your retirement date with access to a lump sum or ongoing funds
Stay in Your Home – Age in place comfortably
Home Renovations – Make renovations and updates, or make your home more accessible
Medical Expenses – Pay for unexpected medical expenses or arrange for in-home care
Help Your Loved Ones – Offer an early inheritance gift so your children or grandchildren can pay tuition, buy a home, or pay off student loans
Purchase a Second Property – Be a snowbird or generate rental income with a second property

Just continue to pay your property taxes and home insurance, and maintain your property.

How to Get Started

The first step is to talk to a BMP representative or mortgage broker. They’ll arrange for a property appraisal to determine the current market value of your home.

Then, they’ll explain your options for receiving your money and the terms of the agreement.

Soon, you could have no more mortgage payments and more cash in the bank!

If you have questions and would like to speak with a BMP representative, please contact us.

To get started with Bayfield Mortgage Professionals (BMP), apply online using the convenient and secure BMP online mortgage application.

or Find a Mortgage Broker Near You

Second Mortgages in BC, Alberta, and Manitoba

The mortgage you got on your house when you purchased it is called the first mortgage because it would be the first loan to be repaid if you defaulted.

If you secure another (second) loan using your home as collateral, it is commonly called a second mortgage. A second mortgage is additional financing in second priority to the previously registered mortgage on the same house.

A first or second mortgage doesn’t depend on when you register the mortgage but on how it is registered. When multiple lenders use the same asset as collateral, the order the lenders are repaid depends on their position in line.

In reality, no matter what kind of loan is registered in second place, it is a second mortgage. But most of the time, the term applies to a Home Equity Line of Credit (HELOC) or an Equity Take Out (ETO) loan.

You borrow more money with a second mortgage based on your home equity. Your equity increases as you make your monthly mortgage payments and as your home’s market value increases. A second mortgage accesses your home equity, so you don’t need to sell to access the value of your real estate.

A second mortgage doesn’t affect your current mortgage.

Why Consider a Second Mortgage

A second mortgage gives you funds to use as you wish. Common reasons for a second mortgage are:

Consolidate Debt – You can pay off your debt with higher interest rates, like credit cards or student loans, with a single, smaller loan payment. This is the most common reason Canadians consider a second mortgage.
A Major Purchase – Fund renos, pay for your child’s education or pay out a vehicle lease. Use your home equity for big-ticket items without using your cash savings or tapping into your investments.
A Second Property – Purchase an investment property, a cottage, or a vacation home. A second mortgage can provide the down payment to help you purchase it. If you or a family member will live in the second property rent-free, you can make less than the standard 20% down payment.

Second Mortgages Vs Refinancing Your First Mortgage

When you refinance your first mortgage, you start from scratch with the terms. You end up with the current rates and may have to pay fees to break the contract before the end of your term. You can access up to 80% of the value of your home without high-ratio financing.

Getting a second mortgage may change how much of your home’s value you can access, but it may not.

The major benefit of a second mortgage is being able to borrow money without renegotiating your first mortgage. Plus, mortgage refinancing requires paying closing costs, while sometimes, with a second mortgage, the closing costs are lower.

Maximum Second Mortgage Sizes

A HELOC offers up to 65% of your home’s value to 80% combined with your first mortgage. You may be able to borrow up to 85% or even 95% from some lenders. The amount depends on how much home equity you have. The smaller your first mortgage balance, the more you can borrow on your second mortgage.

How to Apply

Applying for a second mortgage is like applying for your first mortgage.

Documents – You’ll submit documents to your mortgage broker to prove your income and employment, financials, and property details
Property Appraisal – Second mortgages are based on home equity, so you need a current home appraisal to determine the value
Mortgage Stress Test – Some lenders require you to pass the stress test, but many private mortgages don’t. Ask your mortgage broker about the Mortgage Stress Test
Closing Costs – There are closing costs to pay on a second mortgage. After closing, you have free access to your funds if you have a HELOC. A home equity loan or second mortgage lender will deposit the entire amount you borrowed into your bank account as a one-time payment.

Over 90% of Canadian homeowners have at least 25% equity in their homes, so most are eligible for a second mortgage.

If you have questions and would like to speak with a BMP representative, please contact us.

To get started with Bayfield Mortgage Professionals (BMP), apply online using the convenient and secure BMP online mortgage application.

or Find a Mortgage Broker Near You