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Having that pre-approval means you can shop with confidence as you will know how much you can afford. If a bidding war happens, the pre-approval will help you stay within your budget so you don’t fall short at closing time. Plus, it lets the seller know that you’re ready to make an offer and have already started the initial process with a lender - which is often the difference between the seller choosing you over another, so it’s wise to have it in hand.

Our Pineapple online pre-approval application makes the process very easy for you to get started. It only takes a few minutes to fill out, and it instantly generates an instant pre-qualification amount.

Let’s start with a fixed rate. This is a locked-in rate that will stay the same for the mortgage term. For example, a 2.0-percent fixed rate with a five-year term with a monthly payment amount of $1200, means you will pay $1200 every month for the next five years, even if the interest rates change.

A variable-rate mortgage fluctuates with current market conditions and is pegged to the Lender's “prime rate” which is directly related to the Bank of Canada overnight rate. This means when the prime rate changes, the amount of principal you pay each month will also change. When the rate decreases, more of your regular payment will be applied to the principal of the mortgage. When the rate increases, more will be applied to the interest portion of your mortgage.

This is important to understand because your regular mortgage payment might need to be adjusted if the amount of the variable payment is not enough to cover the monthly interest on your principal. But don’t worry, even if the rates start moving up and you’re no longer comfortable with a variable rate, you can still convert to a fixed-rate mortgage at any time. Our Pineapple mortgage professionals will help you figure out when it’s time to do so.

A static payment means that even if the bank's interest rate changes over the term, your mortgage payment will not increase or decrease in response. In the event that the interest rates increase, more of the payment will go to the interest portion of the payment and less will go to the principal. This can result in the amortization (total lifespan of the mortgage) extending further outwards (taking more time to pay back the mortgage). In rare cases, the lender could require a payment to be made if the payments stop covering any principal at all during that term (the lender would let you know in advance and you would have options to rectify). On the other hand, if the interest rates drop, more of the payment will go to the principal, essentially reducing the mortgage faster over time.

An adjustable variable rate will have payments increase or decrease automatically with adjustments to the bank's interest rates. If the bank's interest rates rise, the mortgage interest rate will increase and the payments will also rise, and vice versa if the interest rates decline.

The rate that’s best for you is based on your risk tolerance. A fixed-rate provides more security but a variable rate provides more flexibility. As part of our Pineapple assessment process, we look at your financial health and also the projected market conditions to make sure that the rate is the right one for you today and into the future.

The lowest rate can be the best option, but there are certain instances when the lowest-rate product is the least flexible and not the right option for your needs.

For example, some low-rate options will not allow you to refinance or move your mortgage to another lender before the maturity date. In that case, you would need to sell your home or pay back the full amount to refinance or switch. Not a great option if you need to break your mortgage term early.

Some low-rate options will also prohibit you from making lump sum payments or increasing your monthly payments to pay back your mortgage faster. They may even come with higher pre-prepayment penalties, which can cost you tens of thousands of dollars more to break your mortgage early.

As you can see, it’s important to look at the big picture and not just the rate, and it’s our job to inform you about your options so that you can make the right decision.

There are many options available for self-employed earners - in fact, there are more options today than ever before, making the process much easier for business owners and sole proprietors.

The rates and mortgage products you can qualify for will depend on the amount that you claim on your taxes and how your business is set up.

In many cases, self-employed earners can qualify with the prime lenders and even get access to insured mortgage options at the lowest rates. Some self-employed earners, though, may need to use an alternative lender to qualify, especially if they write off a large portion of their business expenses each year or accept cash payments as part of their income component.

The banks are required to follow strict rules and guidelines so not everyone will qualify with their own banking institution. If you have damaged credit, or are self-employed, or do not have consistent income, you may need to turn to another lender option.

One of these options is an Alternative lender. These types of lenders are more flexible when it comes to credit, debt-service ratios and documentation requirements. However, to offset their risk they require a minimum of 20% down payment and have higher fees than the prime lenders.

When you don’t qualify with the alternative lenders, you can turn to a Private lender. They are the most flexible as they are only concerned with the property (and not your income), but they do charge lender fees and have higher rates than the alternative lenders.

There are other options and a Pineapple mortgage professional will work with you to find all the available solutions for you.

The down payment required will depend on a number of factors including the price of the home you are planning to purchase.

• If the purchase price is $500,000 or less you will be required to put a minimum amount of 5% of the purchase price.
  
• If the purchase price is between $500,000 and $999,999 you will need to put down a minimum amount of 10% of the purchase price.
  
• If the home is worth 1 million dollars or more you will need a minimum of 20% down payment.

When the down payment is less than 20% of the purchase price you will be required to purchase mortgage default insurance which you can pay upfront at the time of closing or add to your monthly mortgage payments.

There are also certain exceptions to the rule where the lender may require a higher down payment. If you have a poor credit rating, or you are self-employed, or if the property is going to be used as a rental property, you might need to put down more depending on your situation. But don’t worry, we’re here to help you understand the amount of downpayment you will need to make and the sources you can use to fund that down payment.

Anytime you put less than 20 percent down you will be required to take out mortgage default insurance. This insurance will be paid by you but it will protect the lender if you default on your mortgage.

The amount of mortgage default insurance you will pay will depend on the total amount of down payment you have saved. For instance, if you are planning to put 5 percent down, you will be required to pay a mortgage default insurance amount of 4 percent of the purchase price. The more down payment you provide the lower the insurance amount.

The good news is that you don’t have to pay this amount upfront. The mortgage default insurance can also be wrapped into your mortgage payments.

Unless you plan to live in the rental property, you will not be eligible for mortgage default insurance, so you will be required to put down a minimum of 20%.

If you already own a property, we can see if there are any options available for you to access some of the equity in your home to help you get the down payment amount you need.

Alternative lenders have different requirements than prime lenders. An alternative lender will have more flexibility regarding the debt servicing ratios and credit score but more stringent requirements for the down payment. With an alternative lender, you will be required to put down a minimum of 20 percent.

It depends on a number of factors.

Insured mortgages tend to have the lowest rates. If you have a 20-percent down payment you can opt to avoid the insurance fee but the rate might be higher. Depending on how the numbers work out, it may make sense to put down 19 percent to get the lower rate and pay the default insurance.

Putting down more money also means less mortgage, which might be the better option.

A Pineapple agent can help you figure out what is the best strategy for you.

As part of the home buying process, there are a number of other costs you need to be prepared for.

Let’s go over some of these costs right now:

• The Deposit that you will pay the seller at the time that your offer is accepted. In most cases, this will make up part of the down payment you cover on closing, but you need to be prepared to pay between 5 and 10 percent upfront.
• Home inspection fee, which is the cost to have a professional conduct a full inspection on the home and let you know if there are any issues. If the lender also wants an appraisal of the home, you’ll have to cover that too.
• Legal fees to your lawyer to register the home and mortgage and to prepare all the legal ownership documents. At the lawyer's office, you’ll also pay for the Provincial mortgage registration fee, and the provincial land title transfer fee if required. The Provincial and municipal land transfer taxes will also be due whenever you buy or sell real estate.
• Insurance such as Mortgage default insurance and title insurance fees depending on your mortgage conditions. Plus, you don’t want to forget to purchase home insurance to protect your new place.
• Utility adjustments if the previous owner paid for the heat and taxes upfront you may need to cover these costs when you take over the property.
  
• Moving costs to get you settled into your new home.

This may seem like a long list but the good news is your Pineapple mortgage broker is here to help you plan in advance to protect you from any shortfalls that could stop you from buying the home.

You might be able to use other sources to obtain your down payment:

• A gifted down payment from your immediate family. This includes your parents, siblings, or grandparents.
• Home Buyers Plan for first-time home buyers and those who have not owned a property in the last four years. This allows you to use up to $35,000 from your RRSP to help with their down payment. And if you’re buying the home with another person, they can also use their RRSP too for a combined $70,000 towards your down payment. The only catch is you will need to pay this amount back into your RRSP over the next 15 years.
• Borrowed money. This option will depend on a number of factors and will be lender-specific but we are happy to help you determine the sources available to you for your down payment.

If you’re still short, there may be other opportunities available, such as adding a co-signer, which we can explore.

We are not your standard mortgage brokerage. When you work with a Pineapple broker you will receive a more seamless, personalized service that is focused on your financial needs today as well as your goals ten, twenty, and thirty years from now.

Pineapple mortgage professionals also use the most advanced digital technology that speeds up the funding process and keeps everyone informed at every step of the way. For example, with Pineapple you can go online, fill out our form from the comfort of your own home, click send and then your information will automatically be populated in our system so we can start working on your request right away. We also offer our clients the option to upload their documents right from their phone or computer and e-sign the documents instead of driving out to an office or sending your confidential documents in the mail.

We even have a team of document specialists working in the backend supporting the process, which ensures your mortgage broker is focused on your needs 100% of the time. Pineapple is really just trying to keep it as simple as possible for you to get your new home and pay off the mortgage as fast as possible.