📅 Last Updated: October 4, 2021
✏️ Written By Lisa Rennie
🕵️ Fact-Checked by Caitlin Wood

Mortgages Hamilton - Compare Providers

ProviderLoan AmountRateTerm (Months)Rating
00 Up to $50,000Prime – 46.96%3 - 120
Up to $50,000
1001709683200 Dashloansup to $1,250 12%-32% 90 - 150 days
up to $1,250
231700524800 Parachute$5,000 - $25,000 24.99% - 29.99% 30 or 60
$5,000 - $25,000
211700524800 AimFinance$1,000 - $5,000 46% 9-24
$1,000 - $5,000
151695254400 GoLoans$1250 16.06% (nominal) - 31.99% (effective) 3 - 5
$1250
111692748800 BreeUp to $250 0% Up to 61 days
Up to $250
81688083200 City Lending Centers (CLC)$150 - $1,600 10 - 35% 3 - 6
$150 - $1,600
1001686182400 Northstar Brokers$300 - $3,000 18% + fees 6
$300 - $3,000
1001686182400 Deposit My Cash Now$300 - $3,000 18% + fees 6
$300 - $3,000
1001686182400 My Next Pay$300 - $3,000 18% + fees 6
$300 - $3,000
61683676800 Windmill Microlending$15,000 6.7% Up to 60 months
$15,000
11670889600 Fora$1,000 - $10,000 19.9% - 46.9% -
$1,000 - $10,000
71666051200 Nyble$150 0% -
$150
1001643932800 FlexMoney$500 - $15,000 +18.9% APR 6 - 60
$500 - $15,000
1001642723200 Pay2Dayup to $1,500 - -
up to $1,500
131639094400 Loanz$1,000 - $15,000 29.9% - 46.9% APR   12 - 60
$1,000 - $15,000
301637280000 Symple Loans$5,000 - $50,000 5.75% - 22.99% Up to 84
$5,000 - $50,000
1001623369600 AfterpayVaries 0% 6 or 8 weeks
Varies
21620777600 Spring FinancialUp to $35,000 9.99% - 46.96% 6 - 60
Up to $35,000
171607558400 Helium Loans$500 - $50,000 6.99% - 46.99% 12 - 36
$500 - $50,000
1001600646400 Iceberg Finance$1,000-$7,500 12.99% - 29.99% 24 - 60
$1,000-$7,500
1001598918400 LM Financial$1,000 - $15,000 - -
$1,000 - $15,000
1001598832000 LM Credit$500 – $15,000 + 25.99% 9 - 60
$500 – $15,000
1001595980800 FlexiLoans$200 - $1,200 25% - 32% -
$200 - $1,200
1001551830400 Prudent Financial ServicesUp to $500,000 5.75% – 9.9% negotiable
Up to $500,000
1001594684800 Lendle$100 - $2,000 0% -
$100 - $2,000
1001593561600 PayBright- 0+ 2 - 60
-
1001589155200 Moves Financial$2,500 15.65% AIR 13 - 26
$2,500
1001582243200 LendCare- - Up to 60
-
1001581033600 X-bankers$5,000+ - Up to 60
$5,000+
1001580947200 ECN Capital- - -
-
1001580860800 SimplyBorrowed$500 - $5,000 - 12 - 24
$500 - $5,000
1001580860800 Pebble Cash$350 - $1,000 - 2 - 12 weeks
$350 - $1,000
91580860800 Refresh Financial$1,600 - $25,000 19.99% APR 36 - 60
$1,600 - $25,000
161580774400 goPeer$1,000 - $25,000 7.5% - 31.5% APR 36 - 60
$1,000 - $25,000
1001579478400 North’n Loans$100 - $1,500 - -
$100 - $1,500
1001579478400 MDGUp to $5,000 29.78% - 44.8% 36 months
Up to $5,000
1001579219200 Loan or Credit$100 - $25,000 +4.9% -
$100 - $25,000
1001579219200 Instant Payday Canada- 15% - 19% -
-
1001576713600 Flexiti Financial- Up to 35% -
-
181576713600 Financeit$500 - $100,000 6.99% - 14.99% 12 - 240
$500 - $100,000
1001575590400 Climb1800- 2900 15.99% 23 - 36
1800- 2900
1001562198400 Pylo Finance$500 - $15,000 15.99 - 39.99% 6 - 60
$500 - $15,000
1001560124800 Fresh Start FinanceUp to $15,000 29.99% - 46.96% 9 - 60
Up to $15,000
171545955200 MarbleUp to $20,000 18.99% - 24.99% 36 - 84
Up to $20,000
191552262400 Money Mart$1,000 - $15,000 29.9% or 46.90% 6 - 60
$1,000 - $15,000
1001551830400 Payday King$100 - $1,000 546% APR 14 days
$100 - $1,000
1001569974400 Private Loan Shop$500 - $50,000 15 - 30% -
$500 - $50,000
1001551830400 Progressa$1,000 - $15,000 19% - 46.95% 6 - 60
$1,000 - $15,000
1001551398400 My Canada PaydayUp to $1,500 15% - 19% 14 days
Up to $1,500
1001551398400 Mr. Payday$100 - $1,500 15% - 17% 14 -31 days
$100 - $1,500
1001551398400 Money Provider$500 - $1,000 28% - 32% -
$500 - $1,000
1001551398400 Loan Express- - 14 days
-
181546128000 Loan AwayUp to $5,000 19.9% - 45.9% APR 6 - 36
Up to $5,000
1001551139200 Loan & Go$250 -$1,250 29% 3 - 6
$250 -$1,250
1001551139200 Lendful$5,000 - $35,000 9.9%+ 6 - 60
$5,000 - $35,000
151551139200 LendDirectUp to $15,000 19.99% APR Open-end
Up to $15,000
1001550534400 Health Smart Financial Services$300 - $25,000 7.95%+ 36 - 60
$300 - $25,000
1001550534400 GoDay$100 - $1,500 - 14 days
$100 - $1,500
1001569974400 iCashUp to $1,500 15% - 23% -
Up to $1,500
1001550534400 Focus Financial Inc.Up to $1,500 Up to 59% APR 14 days
Up to $1,500
191550534400 FlexFi$2,500 + - -
$2,500 +
1001550534400 Eastern Loans$500 - $1,000 28% - 32% 3 -5
$500 - $1,000
1001550534400 DMO Credit$300 - $1,000 38% APR 3 - 4
$300 - $1,000
1001549411200 Capital Cash$100 - $1,000 546% APR 14 days
$100 - $1,000
1001549411200 Cash 4 You$1,000 -$15,000 46.93% 12 - 60
$1,000 -$15,000
1001567555200 Cash Depot$300 - $3,000 18% + fees 6
$300 - $3,000
1001549238400 Credit 700$500 - $1,000 28% - 32% 4 - 5
$500 - $1,000
1001549238400 Credit Club$100 - $1,500 90% - 390% APR 14 days
$100 - $1,500
1001549238400 Credit2Go$250 - $1,000 29% APR 3 - 4
$250 - $1,000
201548720000 Ledn$500 - $1,000,000 7.9% 12
$500 - $1,000,000
1001548720000 Amber Financial$1,000 - $50,000 4.6% – 49.96% 3 - 60
$1,000 - $50,000
1001548633600 Affirm Financial$300 - $7,500 29.9% - 39.9% 6 - 60
$300 - $7,500
1001548633600 310 Loan$50 - $1,500 - 14 days
$50 - $1,500
1001545955200 Newstart CanadaUp to $20,000 19% - 49% 36 - 48
Up to $20,000
161545264000 Ferratum$2,000 - $10,000 18.9% - 54.9% 12 - 60
$2,000 - $10,000
1001545264000 SkyCap Financial$500 - $10,000 12.99% – 39.99% 9 – 36
$500 - $10,000
1001545264000 Fast Access Financial$500 – $10,000 Starting at 9.90% 12 - 36
$500 – $10,000
21543622400 Fairstone FinancialUp to $50,000 19.99% - 39.99% 6 - 120
Up to $50,000
1001545177600 LendingMate$2,000 – $10,000 34.9% - 43% 12 - 60
$2,000 – $10,000
101545264000 Consumer Capital Canada$500 - $12,500 19.99%+ 12 - 60
$500 - $12,500
1001545350400 LaminaUp to $1000 30% 3 - 5
Up to $1000
1001545350400 Loans SOSUp to $5,000 60% 6 - 60
Up to $5,000
1001545350400 514 LoansUp to $3,000 22% - 35% 3 - 4
Up to $3,000
1001545350400 Cashco FinancialUp to $7,000 - 6 – 60
Up to $7,000
1001545350400 UrLoan$500 - $2,500 29% - 46.95% 6 - 36
$500 - $2,500
51545350400 LoanMeNow$500 - $1000+ 28%-32% 3
$500 - $1000+
1001545350400 Captain Cash$500 – $750 28% – 34.4% 3
$500 – $750
1001545350400 BC Loans$500 – $750 23% - 34.4% 3 – 12
$500 – $750
1001545350400 Urgent Loans$300 - $1500 27% - 35% 3 - 4
$300 - $1500
41545264000 easyfinancial$500 - $100,000 Starting at 29.99% 9 - 84
$500 - $100,000
31545264000 Mogo FinanceUp to $3,500 47.72% -
Up to $3,500
21568937600 Cash Money$1,500 – $10,000 Varies by province Varies
$1,500 – $10,000
101545177600 Borrowell$1,000 - $35,000 5.99% - 29.19% 36 - 60
$1,000 - $35,000
181545177600 Magical Credit$100 - $20,000 Up to 46.8% Up to 60
$100 - $20,000
ProviderLoan AmountRateTerm (Months)Rating
00 Up to $50,000Prime – 46.96%3 - 120
Up to $50,000
31697414400 SafeBorrowUp to $800,000 9% - 49.99% 3, 6, 9, or 12
Up to $800,000
21669852800 Driven$5,000 - $300,000 - 3 - 24 months
$5,000 - $300,000
1001648512000 2M7 Financial Solutions$10,000 - $250,000 Varies 6-12
$10,000 - $250,000
1001620345600 TD Bank- - 12 - 60
-
1001611878400 Accord Financial$5,000 - $30,000,000 - Up to 18
$5,000 - $30,000,000
171607558400 Helium Loans$500 - $50,000 6.99% - 46.99% 6 - 36
$500 - $50,000
1001603756800 Accelerated Payments- - -
-
1001598918400 Loop- - -
-
1001592438400 Core Capital Group Inc- - -
-
1001585612800 BarterPay- 0.9% - 12% 6 months - 5 years
-
1001581984000 Clearbanc$10,000 - $10,000,000 6% - 12.5% -
$10,000 - $10,000,000
1001581292800 SNAP Financial Group- - -
-
1001581033600 GE Capital- - -
-
1001581033600 We Can Financial- - -
-
1001581033600 Wajax Equipment- - -
-
1001580947200 Key Equipment Financing- - -
-
1001580947200 Corl$10,000 - $1,000,000 - -
$10,000 - $1,000,000
1001580860800 Yellowhead Equipment Finance Ltd- - -
-
1001580860800 Toronto Truck Loan Ltd- - -
-
1001580860800 Specialty Truck Financing- - -
-
1001580860800 Travelers Financial- - -
-
1001580860800 Peel Financial- - -
-
1001580860800 Pioneer Financial Services$5,000 - $1,000,000 - -
$5,000 - $1,000,000
1001580860800 Polaris Leasing- - -
-
1001580860800 Patron West- - -
-
1001580860800 Payabilityup to $250,000 - -
up to $250,000
1001580860800 Planet Financial- - -
-
1001580688000 RiseUp to $10,000 - -
Up to $10,000
1001580256000 Merchant Growth$5,000 - $500,000 - 6 - 18 months
$5,000 - $500,000
1001579478400 Onesta- - -
-
1001579478400 Lionhart Capital$10,000- $30,000,000 Min 4.95% -
$10,000- $30,000,000
1001579478400 Lift Capital- - 12 - 120
-
1001579478400 Leaseline- - 24 to 60
-
1001579478400 Lease Direct- - -
-
1001579478400 John Deere- - -
-
1001579046400 Hitachi Capital Canada- - -
-
1001578873600 Guardian Leasing- - -
-
1001577059200 Export Development Canada- - -
-
1001577059200 Essex Lease Financial Corporation- - -
-
1001577059200 Equilease- - -
-
1001575849600 Alliance Financing Group LTD$5,000 - $150,000 15% + 6 - 24
$5,000 - $150,000
1001575849600 CanaCapUp to $250,000 - -
Up to $250,000
1001575590400 CLE Capital- - -
-
1001575590400 Canada Equipment Loan- - -
-
11545955200 SharpShooter Funding$5,000 - $150,000 Fee-Based: Starting at 9% 12 - 60
$5,000 - $150,000
1001552262400 First West Credit Union$500,000 - $10,000,000 - -
$500,000 - $10,000,000
1001552262400 PACE Credit Union- Competitive -
-
1001552262400 DUCA Credit Union- - -
-
1001552262400 Laurentian Bank of CanadaUp to $250,000 - Up to 10 years
Up to $250,000
1001552262400 HSBC Bank Canada- - -
-
1001552262400 National BankUp to $1,000,000 - -
Up to $1,000,000
1001551830400 DesjardinsUp to $100,000 - -
Up to $100,000
1001551830400 Canadian Imperial Bank of Commerce (CIBC)$10,000+ - Up to 15 years
$10,000+
1001551830400 ScotiabankUp to $1,000,000 -   Up to 15 years
Up to $1,000,000
1001551830400 Bank of Montreal (BMO)Up to $500,000 - Up to 10 years
Up to $500,000
1001551830400 Royal Bank of Canada (RBC)$5,000 - $10,000 - Up to 7 years
$5,000 - $10,000
1001551398400 CWB National Leasing$3,500+ - -
$3,500+
1001551398400 Money Line Capital$5,000+ 4.9% - 24.99% 18 - 48
$5,000+
1001551398400 Money in Motion$10,000 - $1,000,000 4% - 14% 12 - 84
$10,000 - $1,000,000
1001551139200 Lease LinkUp to $75,000 - Up to 18
Up to $75,000
1001550534400 FundThrough$500-$50,000 0.5% weekly 12 week cycles
$500-$50,000
1001550534400 Econolease Financial Services Inc.$1,000 - $1,000,000 6% - 20% -
$1,000 - $1,000,000
1001550534400 Easylease CorpUp to $5,000,000 4.5% 24 - 72
Up to $5,000,000
1001550534400 Capify$5,000 - $200,000 - -
$5,000 - $200,000
1001549411200 Canadian Equipment Finance$50,000 - $12,000,000 - 24 - 96
$50,000 - $12,000,000
1001549411200 Capital Key$5,000 - $1,000,000+ - 1 - 60
$5,000 - $1,000,000+
1001549238400 Cashbloom$5,000 - $1,000,000 - 3 - 24
$5,000 - $1,000,000
1001548720000 BFS Capital$5,000 - $5,000,000 - 4 - 18
$5,000 - $5,000,000
1001548720000 BDCUp to $100,000 6.05% + 60
Up to $100,000
1001548720000 Baron Finance$10,000+ 18% - 22% -
$10,000+
1001548720000 B2B Bank$10,000 - $300,000 4.70% - 5.45% -
$10,000 - $300,000
1001548633600 AOne Financial SolutionsUp to $5,000,000 5% - 10% 12 - 60
Up to $5,000,000
101545177600 Borrowell$1,000 - $35,000 5.6% – 25.5% 36 – 60
$1,000 - $35,000
1001545264000 iCapital$5,000 - $250,000 - 3-18
$5,000 - $250,000
1001545264000 Lendified$5,000 - $150,000 - 3 - 24
$5,000 - $150,000
61545350400 IOU Financial$5,000 – $100,000 15% + 12 – 18
$5,000 – $100,000
1001545264000 Company Capital$5,000 – $100,000 Starting at 6.87% 3 – 18
$5,000 – $100,000
51545177600 OnDeck$5,000-$250,000 8% - 29% APR 6 - 18
$5,000-$250,000
41545177600 Lending Loop$5,000 – $500,000 Starting at 5.9% 3 – 60
$5,000 – $500,000
1001545264000 SkyCap Financial$500 - $10,000 12.99% – 39.99% 9 – 36
$500 - $10,000
1001561507200 Thinking CapitalUp to $300,000 - -
Up to $300,000
ProviderLoan AmountRateTerm (Months)Rating
00 Up to $50,000Prime – 46.96%3 - 120
Up to $50,000
31679529600 ClutchVaries 8.49% + 24 - 96 months
Varies
1001643846400 Fix4 Capitalup to $10,000 19.99% 12 - 36
up to $10,000
41632960000 SafeLendUp to $50,000 15.99% + 12 -72
Up to $50,000
61624233600 Auto Credit DealsUp to $50,000 29.99% – 46.96% 12 - 96
Up to $50,000
1001610409600 Advantagewon- - -
-
171607558400 Helium Loans$500 - $50,000 - 24 - 60
$500 - $50,000
51606435200 Go To Loans$500 - $10,000 29.95%+ up to 48
$500 - $10,000
1001600646400 Iceberg Finance$1,000-$7,500 12.99% - 29.99% 12 - 84
$1,000-$7,500
1001594339200 Alphera Financial Services- - -
-
1001582761600 Go Auto- - 12 - 96
-
61582761600 Eden Park- 11.9% - 22.9% Up to 84
-
1001582761600 Auto Loan Solutions- 0% - 29.5% -
-
1001581033600 WeFinanceCars- + 4.9% -
-
1001581033600 Walker Financial Services- - -
-
1001580688000 Rifco- - -
-
1001579478400 National Powersports Financing- - -
-
1001579478400 LMG Finance- - -
-
1001579478400 Loans2Go- - -
-
1001579219200 Leisure Trailer Sales- - -
-
1001578873600 iA Auto Finance- +8.99% -
-
1001578873600 Gamache Group- - -
-
1001551830400 Royal Bank of Canada (RBC)$5,000 - $10,000 - up to 84
$5,000 - $10,000
1001552262400 Laurentian Bank of CanadaUp to $250,000 - 12 - 60
Up to $250,000
1001552262400 National BankUp to $1,000,000 - up to 96
Up to $1,000,000
1001551830400 DesjardinsUp to $100,000 - 6 - 96
Up to $100,000
1001551830400 Canadian Imperial Bank of Commerce (CIBC)$10,000+ - 12 - 96
$10,000+
1001551830400 ScotiabankUp to $1,000,000 - up to 96
Up to $1,000,000
1001577059200 Daimler Truck Financial- - up to 72
-
1001577059200 DealerPlan Financial- - -
-
1001575849600 Coast Capital Savings- Starting at 4% Up to 84
-
1001575849600 Canada Auto Finance$5000 - $45,000 4.90 % - 29.95% APR 36 - 72
$5000 - $45,000
1001575849600 Credit River Capital Inc- - -
-
1001575590400 Capital Trust Financial- - -
-
1001575504000 Canada Car Loans- - -
-
21569974400 Car Loans Canada$7500 - $59,995 3.95% + 12 - 96
$7500 - $59,995
1001562112000 Car Creditex- Up to 49.9% -
-
1001561507200 Auto Capital Canada- - -
-
1001561507200 Carfinco- - Up to 84
-
11560124800 Canada DrivesUp to $100,000 3.99% - 19.9% 24 -96
Up to $100,000
1001551830400 Prefera FinanceUp to $30,000 - -
Up to $30,000
1001551830400 Prudent Financial ServicesUp to $500,000 5.75% – 9.9% negotiable
Up to $500,000
1001550534400 Dixie Auto Loans- - -
-
1001548720000 Approve Canada- - -
-
1001548633600 2nd Chance Automotive- 4.2%+ -
-
1001545955200 Newstart CanadaUp to $20,000 19% - 49% 36 - 48
Up to $20,000
1001545264000 SkyCap Financial$500 - $10,000 12.99% – 39.99% 9 – 36
$500 - $10,000
1001545177600 Splash Auto Finance by RifcoUp to $50,000 - -
Up to $50,000
1001545177600 Carloans411$5,000 – $40,000 - 12 – 72
$5,000 – $40,000
1001545177600 AutoArriba- - Maximum 84
-
ProviderLoan AmountRateTerm (Months)Rating
00 Up to $50,000Prime – 46.96%3 - 120
Up to $50,000
1001578873600 Instant Loans Canada$1,000 - $35,000 - 24 - 60
$1,000 - $35,000
1001545955200 Newstart CanadaUp to $20,000 19% - 49% 36 - 48
Up to $20,000
1001545264000 BHM FinancialUp to $25,000 - 12 - 60
Up to $25,000
ProviderLoan AmountRateTerm (Months)Rating
00 N/AN/AN/A
N/A
71708473600 Blue Pearl MortgageVaries Varies 1 - 10 years
Varies
51700524800 Rocket Mortgage- - -
-
61696377600 Mortgage Maestro- 5.69% + -
-
1001695945600 Mortgage Intelligence- - -
-
1001695772800 QuestMortgage- - -
-
41690934400 Neo MortgageVaries 5.54%+ Varies
Varies
21688601600 nestoMin $100,000 5.34%+ 2 - 10 years
Min $100,000
31679616000 Frank Mortgage$100,000 - $2 million Fixed, variable, or adjustable rates 1 - 5 years
$100,000 - $2 million
41541030400 Meridian Credit Union- Varies 6 months - 5 years
-
1001627344000 Peoples Bank- 1.94% - 2.45% 12 - 60
-
21620777600 Spring FinancialUp to $35,000 - -
Up to $35,000
1001551830400 Prudent Financial ServicesUp to $500,000 5.75% – 9.9% negotiable
Up to $500,000
1001581033600 Mortgage Alliance- 2.74% - 6.30% 12 - 120
-
1001580947200 Paradigm- - -
-
1001580860800 Verico- - -
-
1001580860800 True North Mortgage- 2.64% - 4.45% 12 - 120
-
1001580860800 Tangerine$50,000+ 2.74% - 3.49% 12- 120
$50,000+
1001580860800 Think Financial- - 36 - 60
-
1001580860800 Turnedaway- - -
-
1001580860800 REICO- - -
-
1001580688000 Motusbank- 2.79% - 6.00% 6 - 60
-
1001580688000 Northwood Mortgage- 2.74% - 4.45% 12 - 120
-
1001580688000 Matrix Mortgage Global- - -
-
1001579478400 Mortgage Architects- 2.74% - 3.70% 6 - 120
-
1001579132800 Finser Mortgages- 2.79% - 4.45% -
-
1001578873600 IntelliMortgage- - -
-
1001578873600 Invis- 2.69% - 3.95% 6 - 120
-
1001578268800 Manzilup to 4,000,000 3.49% - 5.49% 12 - 300
up to 4,000,000
1001577059200 Equitable Bank$25,000 - $800,000 4.59% - 5.64% 6 - 60
$25,000 - $800,000
1001577059200 Dominion Lending Center- - -
-
1001577059200 Fisgard Asset Management- -- -
-
1001577059200 First National Financial LP- 2.84% - 7.30% -
-
1001574985600 CMLS Financials$100,000 - $750,000 - 12 - 120
$100,000 - $750,000
1001574899200 CHIP Reverse Mortgagemin 25,000 3.89.% - 4.84% 12 - 60
min 25,000
1001574899200 CanWise- 2.23% - 4.45% -
-
1001560124800 Centum- 2.89% - 3.79% -
-
1001548806400 Capital Direct$10,000 - $1,500,000 Varies 12 - 24
$10,000 - $1,500,000
1001548720000 Broker Financial Group Inc.- 2.41% - 3.84% -
-
1001548720000 Bridgewater Bank- - -
-
11517097600 Alpine Credits$10,000+ Based on equity -
$10,000+
ProviderServicesRating
00 Debt Consolidation Program, Debt Settlement Program, Consumer Proposal, Bankruptcy Consultation
N/A (Referrer)
1001576540800 BDO Credit Counselling, Bankruptcy, Consumer Proposal
1001576540800 Raymond Chabot Bankruptcy, Consumer Proposal
1001576540800 Full Circle Debt Solutions Inc Credit Counselling, Debt Management Program
1001576368000 Consolidated Credit Credit Counselling, Debt Management Program
1001576454400 4Pillars Debt Restructuring, After Care - Credit Rebuilding Program, Corporate Debt Restructuring

If you’re planning to buy a home in Hamilton, odds are you’ll need the help of a mortgage to finance such a large purchase. Mortgages make it possible for Canadians to realize their dreams of homeownership.

But mortgages themselves can be expensive. Depending on the price of the home you plan to buy, among other things, a mortgage is a hefty bill that will be adding to your other monthly obligations.

Before you take out a mortgage, be sure to find out all the ins and outs of these types of loans to make an informed decision. In this article, we’ll discuss applying for a mortgage in Hamilton, to help you determine what type of mortgage is right for you.

Get Pre-Approved For Your Mortgage in Hamilton

You may want to consider getting pre-approved for your mortgage before you start your search for a new home in Hamilton. A pre-approval is a promise from your lender that you can get approved for a specific loan amount to finance a home purchase.

There are a couple of reasons why you may want to take this extra step before you start looking for a new home.

Should you spend your entire preapproval amount? Find out here.

Find out how much you can afford. Rather than looking at all sorts of homes in different price ranges, you should be focusing on properties that match your budget. But you won’t truly know how much you can afford and how much you can get approved for without getting pre-approved first.

A pre-approval will tell you what loan amount you can get approved for and will help you narrow your focus, save time, and avoid disappointment.

Show sellers you’re serious. Sellers want to know that the buyers they strike deals with can actually afford to pay for the home and get final approval for a mortgage.

And going into a deal with a pre-approval letter in hand will show sellers that you’re serious and will make you more competitive, especially in a seller’s market.

Just keep in mind that pre-approvals expire after 120 days. Once they expire, you will have to get pre-approved again.

Cost of Buying a House in CanadaInterested in buying a house in another Canadian city? Check out this infographic.

How to Save For a Down Payment in Hamilton

A down payment is a necessary part of securing a mortgage. In Canada, the lowest down payment amount accepted by traditional lenders is 5% of the purchase price of a home. That means a home that costs $500,000 would require a minimum down payment of $25,000 to secure a mortgage.

Considering how large down payments need to be, it can be difficult for many potential homebuyers in Hamilton to come up with that amount of money. As such, saving up for a down payment requires some diligence, sacrifice, effort, and time.

But saving up for a larger down payment is beneficial for a few reasons.

For instance, a larger down payment amount will reduce the loan amount you need to take out, making your mortgage smaller and easier to pay down. Further, if you’re able to come up with at least 20% of your purchase price, you can eliminate additional payments for mortgage default insurance, which we’ll get into later.

Here are some tips to help you save for your down payment:

  • Open an account dedicated solely for down payment savings
  • Have a certain amount automatically deducted from each paycheck and deposited into your down payment savings account
  • Cut down on your spending
  • Pay down your high-interest debt to free up more money for your down payment savings
  • Borrow from friends and family
  • Borrow from your RRSPs (Home Buyers Plan)

For more information about the Canadian Home Buyers Plan, click here.

Mortgage Insurance Rules in Hamilton

Certain types of mortgages require default insurance. More specifically, your down payment amount will dictate whether or not mortgage default insurance is required.

For example, any down payments that are less than 20% of the purchase price of the home will require an additional insurance premium to be paid on top of the regular mortgage payments. These are considered to be “high-ratio” mortgages.”

If borrowers in Hamilton are able to come up with at least 20% of the purchase price in the form of a down payment, mortgage default insurance is not required. These are considered “conventional mortgages.”

The purpose of mortgage default insurance is to protect the lender in case a borrower stops making payments and defaults on their home loan.

Types of Mortgages Available in Hamilton

There are several types of mortgages available in Hamilton, including the following:

Open mortgages. An open mortgage allows borrowers to increase the principal amount outstanding at some point in the future. These mortgages then let borrowers go back and borrow more money from the lender. There’s typically a cap on any additional amount that can be borrowed.

Closed mortgages. A closed mortgage comes with a prepayment limit, meaning you’re only allowed to pay up to 15% of the original principal balance of the mortgage each calendar year.

Fixed-rate mortgages. A fixed-rate mortgage has an interest rate that remains the same throughout the mortgage term. As such, mortgage payments stay the same, making them easier to budget for.

Variable-rate mortgages. A variable-rate mortgage comes with an interest rate that fluctuates at certain points throughout the term. The “introductory period” typically comes with a rate that’s lower than a fixed-rate mortgage, though when that period ends, the rate can go up (or down).

Conventional mortgages. A conventional mortgage requires a down payment of at least 20% of the purchase price of the home. As such, no mortgage default insurance is required.

High-ratio mortgages. A high-ratio mortgage is one in which a down payment of less than 20% is made. As such, mortgage default insurance premiums are required.

Second mortgages. Homeowners with at least 20% equity in their homes (the value of their home, less any outstanding principal balance remaining on the mortgage) may be eligible for a second mortgage, which allows them to borrow against the equity in their home to be used to cover large expenses.

Credit Score Required For a Mortgage in Hamilton

Before a lender in Hamilton approves a mortgage application, they’ll want to assess the borrower’s credit score. Generally speaking, lenders want to see a credit score of at least 680 before they agree to extend a home loan to a homebuyer.

Your credit score dictates what type of borrower you would be. A high credit score generally means that you’ve been diligent with your loan payments over the past, while a low score probably means you’ve missed a payment here and there.

If you want to get approved for a mortgage without any trouble, make sure your credit score is at least 680 or higher.

Canadian Credit ScoreFor even more information about credit scores, take a look at this.

Alternative Mortgage Options For Hamilton Borrowers With Bad Credit

What if your credit score is less than 680? Will you be out of luck when it comes to securing a mortgage?

If you’re applying with a conventional lender, you might find trouble getting approved for a mortgage Hamilton. But, there may be other options for you if you have a bad credit score.

Work with an alternative lender. Instead of seeking a mortgage with a conventional lender, consider applying for a home loan with an alternative lender in Hamilton (click here for more information). These lenders place less emphasis on a borrower’s credit score and more emphasis on their income, assets, down payment amount, and most recent payment history.

Just keep in mind that if you are approved with this type of lender, you’ll be paying a higher interest rate compared to a conventional loan.

Take out a bridge loan. You may be able to make your dreams of homeownership come true by taking out a customized short-term solution such as a bridge loan. These types of loans can help you take advantage of the borrowing potential of your current home to help cover an expense if you have trouble getting similar financing from a traditional lender.

A bridge loan is similar to a regular mortgage loan but is used to get access to

loans at a lower rate in the future while helping to improve your credit score.

Get a cosigner. If you know someone who you trust and has a good credit score, ask them if they would be willing to cosign your home loan with you. If they assume this position, they would be responsible for taking over the mortgage payments if you are no longer able to make them yourself.

Take time to improve your credit score. Perhaps the best thing to do would be to give yourself some time to improve your credit score to increase the chances of getting approved in the future.

The following steps can help your credit score increase:

  • Pay all bills on time
  • Use less than 20% to 30% of your limit on your credit card every month
  • Make more than your minimum credit card payments
  • Don’t apply for new credit card or loans
  • Keep old credit accounts open
  • Don’t close any accounts that still have a balance remaining

Do you know how the mortgage stress test is going to affect your approval? Learn more here.

Hidden Costs of Buying a House in Hamilton

Buying a house in Hamilton is obviously a huge purchase and a big expense to add to the books. But in addition to the mortgage payments that must be made to pay down the loan, there are several other expenses that many buyers – especially first-timers – may not be aware of.

It’s important to get familiar with all expenses related to buying and paying for a home before getting into this large financial commitment:

  • Closing costs, such as appraisals, lender fees, underwriting fees, lawyer fees title fees
  • Mortgage interest
  • Home inspections
  • Property taxes
  • Property insurance
  • Utilities
  • Maintenance
  • Repairs

For more information about closing costs in Ontario, click here.

Comparing Different Mortgages in Hamilton

You’d be well-advised to shop around for a mortgage before settling on one. To do this effectively, you’ll want to make sure that you compare key components of each mortgage product to choose the one that’s best for you. Here are the components that you’ll want to compare between mortgages:

  • Interest rate
  • Term
  • Amortization period
  • Prepayment options
  • Penalty fees
  • Variable- versus fixed-rate

Mortgage Payment Options

Mortgages are types of installment loans, which means the entire loan amount is repaid in installments over time. The frequency in which the payments are made to pay back the loan can vary based on what your lender offers and what you’re most comfortable with.

The most common payment frequency is monthly, which means payments are made once a month. But other payment options are also available, including:

  • Semi-monthly – two payments a month
  • Accelerated bi-weekly- payment every two years
  • Weekly – one payment per week

Did you know that you could be charged a penalty for prepayment? Check out this article.

Amortization Periods

The amortization period of your mortgage refers to the entire length of time that you have to repay the loan amount in full. You have a few options, including short or long-term amortizations.

Short-term amortizations are attractive because they allow mortgages to be repaid sooner than long-term amortizations. And as such, much less is paid toward interest, making them more affordable overall. But because you have less time to pay off the mortgage, the monthly payments will be much higher.

Long-term amortizations tend to be more popular among borrowers because the monthly payments are much smaller as a result of having much more time to fully repay the loan. That said, it will cost the borrower much more in interest as a result of the long time period to repay the loan.

Which amortization length is best for you? Check out this article to find out.

Need a Mortgage in Hamilton?

If buying a home in Hamilton is on the agenda for you sometime soon, then it may be time to start looking into applying for a mortgage, and Loans Canada can help connect you with a third-party mortgage professional in your area.

Note: Loans Canada does not arrange, underwrite or broker mortgages. We are a simple referral service.

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