Canadian Mortgage Basics - Mortgage 101

In this video we discuss the basics of mortgages in Canada. We discuss what a mortgage is, how much you need for a downpayment, different types of mortgage rates, variable vs fixed mortgages, the difference between amortization and term, and whether you should go to a bank or a mortgage broker to get your mortgage.
To apply for a mortgage go to: mortgage360.ca...
To get our app go to: www.dlcapp.ca/...
The presenter has taken great care in preparing
this video, however makes no representations or warranties with
respect to the accuracy or completeness of its content. The contents
of this video should not be considered a substitute for
professional financial advice. Please consult a financial professional
before implementing any of the strategies described in
this video. The presenter shall not be held liable
for any loss of profit or any other financial damages, including
but not limited to special, consequential, incidental, or other
damages.

[@jasonrebello855]

Watching this in 2023 and listening to "Interest rates jumping significantly in a short period of time is very very low" haha. Thanks for the informative video though

[@dominicjustina5858]

I know this was recorded two years ago, but it’s surreal we’re now living out the time of high variable rates when back then the chances of them hiking up was low. 😅

[@Joe-mz6dc]

Absolutely. Yet more proof that everyone is guessing.

[@Raymondjohn2]

The issue is that either the renter or the owner must in some way pay insurance and property taxes if they want a "permanent roof" with utilities like electricity, gas and water. Because of this, many people-at least in California, where I currently reside-are living in tents. No taxes, rent, mortgages, or insurance. The number of people who tell me they live in their car that I meet amazes me. Its crazy out here!

[@martingiavarini]

It’s getting wild by the day. The prices of homes are quite ridiculous and Mortgage prices has been skyrocketing on a roll(currently over 7%). Sometimes i wonder if to just invest my spare cash into the stock market and wait for a housing crash or just go ahead to buy a home anyways.

[@hermanramos7092]

I get such worries too. I'm 50 and retiring early. Already worried of the future and where its headed, especially in terms of financies and how to get by. I'm also considering making my first investment in the stock market, but how can I do so given that the market has been in a mess for the majority of the year?

[@bob.weaver72]

Personally, I can connect to that. When I began working with "Catherine Morrison Evans," a fiduciary financial counsellor, my advantages were certain. In these circumstances, I would always advise getting professional help so they can steer you through choppy markets and just give you indicators and strategies for knowing when to enter and exit the market.

[@martingiavarini]

@@bob.weaver72 Please how do I connect to her? My funds are being murdered by inflation, and I'm looking for a more profitable investing strategy to put them to work.

[@bob.weaver72]

@@martingiavarini Catherine Morrison Evans ’’ maintains an online presence. just make a simple search for her name online.

[@Deborah-r6x]

Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got to talking about investment and money. I started investing with $150k and in the first 2 months, my portfolio was reading $274,800. Crazy right!, I decided to reinvest my profit and get more interesting. For over a year we have been working together making consistent profit just bought my second home 2 weeks ago and care for my family.

[@Christian-3e]

Hi. I’ve been forced to find additional sources of income as I got retrenched. I barely have time to continue trading and watch my investments since I had my second child. Do you think I should take a break for a while from the market and focus on other things or return whenever I have free time or is it a continuous process? Thanks

[@Deborah-r6x]

@@Christian-3e However, if you do not have access to a professional like Clementina Abate Russo, quitting your job to focus on trading may not be the best approach. It is important to consider all options and seek guidance from reliable sources before making any major decisions. Consulting with an AI or using automated trading systems can also be helpful in managing investments while balancing other commitments

[@Christian-3e]

@@Deborah-r6x Oh please I’d love that. Thanks!

[@Deborah-r6x]

@@Christian-3e Clementina Abate Russo is her name

[@Deborah-r6x]

Lookup with her name on the webpage.

[@AAwada]

Hi, I appreciate your valuable videos I have the following questions 1. To whom the filled up loan application submitted to? 2. How much is the deposit that accompany conditional offer? 3. Who will prepare Conditional Sold Document? 4. If the house price is high, will the buyer get a higher mortgage loan than he was pre- qualified for because house itself is collateral? 5. To whom the "Commitment on the Loan" written by underwriter be submitted to? 6. What are the legal documents prepared by the buyer attorney? 7. To whom the Conditional Sold Document is submitted to? 8. To whom the conditional offer made by the buyer realtor is submitted to ? 9. To whom the “Commitment on the Loan” done by the underwriter is submitted to? Regards

[@patrickcazabon7409]

Thank you for the content, I’m taking the AMBA exam next week and your videos have been super helpful.

[@NolanMatthias]

Good luck on the exam!

[@kbdc]

God bless your soul for this video! Really wanna learn everything I can about the adult life here in Canada before it really hits me later on so this was super helpful. Subbed and can't wait to learn more from you :D

[@Nuttzers]

Would love an updated version of this, since so mych has changed with rates in 2023

[@NolanMatthias]

Great idea. Stay tuned.

[@spohje]

Amazing video! I've been looking for informative Canadian content. You explained all this so clearly. Thank you so much and keep up the great work!

[@MoricaPh]

Informative video ever.. you help from simple foundations to compose aside complexities. This video give useful tips and can’t wait to watch more educations from your channel!

[@Ajeet123ful]

Thanks for this rundown! Great to have an understanding while watching what's happening with the market now.

[@brandysmyth6159]

Appreciate this informative video. It brings clarity and is easy to follow. Thank you!

[@Marketplacere]

Exactly the video I was looking for. Fantastic content. Keep it up and this channel will explode with subscribers!

[@ramosatt1993]

Can explain what exactly is the accelerated payments and benefits/savings from doing it?

[@michaelmamitesarmecin5137]

great video. very concise and informative

[@NolanMatthias]

Thanks for watching and commenting 🙏

[@44pavluha]

How to get max gds/tds 39/44% rate? What is considered as income, is RSUs considered as income? How long should you have income at all to get a mortgage?

[@Martin-qm2lg]

Why doesn’t Canada have fixed rate mortgages longer than 5 years? Why not 10, 20, or 30 year fixed rate mortgages, like in other countries? Has this always been so in Canada? When did it change?

[@samlee6740]

They just got lobbied by the banks. Works better for them lol… more frequent transactions and also real estate gets more transactions depending on the affordability. Might be good for releasing lots of supplies when rates are high, but bad for people who got “stuck” haha. They changed it like three or four decades ago? Wonder if gov decided not to insure banks. Usa insures mortgages, in fact fed is subsidizing individuals on their mortgage indirectly

[@parthdarji4814]

Really useful insides of mortgage👍🏻👍🏻

[@yashpatel393]

Hey Nolan, Can you tell us the reality update on what variable rate holders have been going through since you've posted this video with all the rate hikes? Are many going homeless with default and having to rent? Are most able to still hold up their mortgage but how much is the reduced quality of life due to it? More of a reality day to day impact on people in this real-life scenerio if you can! :) thanks!

[@mapreetemails]

Nicely explained. Thank you

[@NolanMatthias]

Thank you!

[@yanyam8534]

Perfectly explained

[@hinkhall5291]

They told me not to do a fixed rate mortgage. Now in July 2022 it is starting to seem like it would have been a good idea.

[@prettydisabled9060]

They who?

[@harlanmichael7088]

Very informative. Thanks!

[@corygreen1626]

Great show

[@volvo8938]

the fixed rate is for 5 years unlike in the USA which is why everyone is freaking out right now in canada becuase the bank just increased the rate again and lots of people are due to adjust their morgtage rate again

[@PansyHolt]

Nicely explained. Thank you,,,,

[@NolanMatthias]

Thank you 🙏

[@trenchtownrock]

Watching this video pre 2022 I might’ve believed you about interest rates not jumping in a short period of time 😬

[@Bkbkbk97]

I laughed out loud

[@albertobravo]

Hey Nolan, apologies if I missed it. Did you talk about the difference between open and closed mortgage? It's the one item I don't understand yet

[@NolanMatthias]

That's the one thing I missed. Simple though, an open mortgage has no penalty to pay it out, a closed does.

[@chopsuey061987]

What do you think about the First-Time Home Owners Incentive offered by CMHC. I'm not sure if it's offered by all provinces.

[@NolanMatthias]

It was a poorly designed product that very few Canadians have taken advantage of. We did a couple of videos a while back on why it is a bad idea. Here’s a link to one of them. kzbin.info/www/bejne/oqDLZoybqpinpck

[@svenkat2006]

They paid 750 dollars for taking mortgage through them and 500 dollars for appraisal without mortgage insurance so that was never a problem in Canada with banks and the mortgage rates are competitive, mean the remain same.

[@JH-KU]

Thank you for uploading this video, very useful.

[@blaynburns]

Maybe its time to give them a rundown on how mortgages rip them off, especially if they move often.

[@penvon]

Great Video as usual...If living in a different province can we still use your services?

[@NolanMatthias]

Yes absolutely. We have brokers in our network across the country.

[@alldaytech]

ln your previous videos you’ve talked about Scotiabank mortgage being the best. Given this what is the best bet between mortgage broker vs Scotia?

[@NolanMatthias]

You can get a mortgage at Scotia through a broker. They benefits of using a broker are significant. 1. You start at floor rates rather than having to negotiate. 2. A broker can compare to other products to make sure it is the right fit. 3. A broker will be with you for the entire term vs. a banker, who if they are any good, will likely get promoted to a new position, leaving you without a direct relationship.

[@alldaytech]

@@NolanMatthias thank you

[@NolanMatthias]

@@alldaytech my pleasure. :)

[@mariat.bautista6549]

Do you work with clients in Montreal, Quebec? I am a First Time buyer and a bit nervous about it all. I am learning a lot of excellent information. Thanks.

[@VenuzMartinez]

Good video , 👍

[@artemsklyar236]

Nolan, what is that book that you have from time to time on your table? Is that one related to the mortgage industry?

[@NolanMatthias]

Thanks for asking! That’s a book I wrote back in 2012. It’s called The Mortgaged Millionaire. It’s available on Amazon in kindle format.

[@artemsklyar236]

@@NolanMatthias thanks

[@svenkat2006]

They say interest is not calculated in advance and say interest calculated semi-annually, not monthly, seems this is more expensive than monthly calculation

[@mrtalkif]

What is the maximum amortization period allowed in Canada on an investment property with 20% down?

[@NolanMatthias]

Typically 30 years. There are exceptions though.

[@paulvarda5318]

how does owning other properties outright change the mortgage approval? do Canadian banks offer mortgage points?

[@gabrielapoplacean8632]

Wonderful info , thank you .

[@dustinvynermortgagebroker]

Amazing video - very helpful!

[@czawar123]

Can we do part payment towards our Mortgage Loan to reduce the loan term and principal amount? Do we need to pay any penalty for that?

[@johnbrown8696]

excellent

[@francisgraham7168]

Variables have hurt many people the past 12 months or even more

[@Juandi202]

Does having variable mortgages still work in 2023? People are about to roast

[@fish8196]

Hey thanks for the videos. Whats your opinion on mortgage Co-signing?? Or do you have any info on this? I'm wondering if its a good option for me to get into the market a bit earlier with a cheaper 1st time home and will have a serious pay increase by the second year of the mortgage. Just wondering how much the co signer influences the approval since i have a fairly low income at the moment but my mortgage payments on a cheaper condo/house would be equal or less what I currently pay for rent.

[@nageshbabar5912]

I order appraisals your videos are very informative

[@aprimzolo]

Can you as a mortgage agent renew your own mortgage

[@NolanMatthias]

Yes, at least in Alberta.

[@bandipeters6736]

I Just subscribed and liked

[@NolanMatthias]

Thanks 🙏

[@joshuawright4862]

Are you aware of any lenders that service western Canada who offer draw mortgages when building in a new community with a typical "production" or "semi-custom" home builder? Do you know which lenders offer interest payments only? Thanks

[@NolanMatthias]

Most of the big banks and many credit unions do

[@johnwau2485]

Thanks Sir.

[@Angelathibert1]

Hi there! Just a question- I’m in Alberta and since interest rates are nice and low right now, do you still think variable would be the way to go? I mean, it’s unlikely they’re going to get much lower, so you can only go up!

[@danberdusco9039]

hope you got fixed

[@Angelathibert1]

@Dan Berdusco hahaha we got fixed at 1.8%🙌🏽

[@brycewilson6429]

How long before buying a house would you recommend getting pre approved for? Also just to clarify, you don’t need a specific house in mind, just a price range right?? Thanks for all the great videos,

[@NolanMatthias]

I would get pre-approved as soon as you start considering it. Always good to have a broker help you put a plan in place rather than trying to figure it out yourself.

[@heartbrokebae]

u need to define terms before using them

[@mattymattffs]

Get fixed and use Martin's mortgage maneuver to avoid the heavy penalties :)

[@NolanMatthias]

Not so fast. The banks got wise to Martin pretty quick and now if you try it they put a pretty significant landmine in the way.

[@TheFlyingE]

3:53

[@zen.artgallerysenay]

Segen means ostrich in Tigrinya language

[@NolanMatthias]

Interesting.

[@philipfaver4240]

"the chances of your [variable] interest rate jumping significantly in a short period of time are very, very low" - That did not age well lol.

[@NolanMatthias]

It definitely did not

[@FinanciallyFit93]

Variable is good unless the fed raises interest rates at the fastest rate in 40 years

[@girishm7477]

The process is exactly same in india 🇮🇳. The only small difference is interest rate You guys pay 1to 2% interest. We pay 7 to 9% as interest rates

[@dellamonk6792]

How did Scott MacGillivray get a mortgage without a job ???

[@NolanMatthias]

Who?

[@dellamonk6792]

@@NolanMatthias Scott MacGillivray. Once host of HGTV's "Income Property." A successful Canadian Real estate Investor and teacher. He bought his first home while a student and used his student loan as a down payment, and rented the bedrooms to his fellow students to pay the mortgage. He had no income other than what the property generated. I'm having trouble understanding how he could qualifyfor a mortgage under those conditions.

[@NolanMatthias]

@@dellamonk6792 likely a bit of hyperbole in his story

[@dellamonk6792]

@@NolanMatthias Is it possible to get a mortgage without a job?

[@Nick_Sheridan1233]

This didn’t age well

[@boyman9787]

2 years later people who are on variable mortgages are crying buckets

[@unendingseeker4274]

Sounded like some pre-set bot

[@ravindranchelliah3547]

Wow

[@SuperPrecklessly]

omg ive subscribed im going to pray everyday you can pay the morgrate for me id be so great full it will save my life

[@ABAMYH]

This is a scam. Don’t listen to this guy. Summary: I am mortgage broker. Keep getting mortgages. Dont go to your bank. Does not explain anything about all the hidden and interest fees you’ll be paying. Don’t fall for mortgage scam. Get educated by someone who is not selling mortgages!

[@Hazara26]

So basically mortgage insurance is rip off and take more money from a person so bank and insurance make money. In mortgage beneficiary is always a bank and if you default the bank will take your house and will sell and get their money back. And in case of Canada the homes are just selling like piece of cake and bank would never and never lose money but will gain money.

[@spitzndtruth1484]

Ok now I will vomit

[@rishabgaba8586]

The chances of you mortgage payments interest rate going very high in a short period of time is not possible 😂😂😂 The video didn't aged well

[@NolanMatthias]

You define very high a lot differently than I do. Remember interest rates being in the 20% range way back in the day?

[@rogiervantilburg3440]

Very useful, thanks for sharing!