Perch is an award-winning tech company that helps you build wealth through real estate. We’re Canada’s most intuitive homeownership platform.nn Perch makes the process of buying a home simpler and easier, and helps you save money on your mortgage. Once a homeowner, we enable you to build wealth by maximizing your home equity. (In other words, we help your money make more money. Pretty sweet, right?)

Perch offers free, easy to use tools and calculators to provide you with personalized financial insights. We’ve paired this with a modern platform to guide you through each step of the homeownership journey.nn In addition, Perch offers:n Pre-approvals in as little as 20 minutes and mortgage approvals in less than 48 hours Dedicated 1:1 support with a Perch mortgage advisor, 7 days a week Automated alerts to help you stay on track while getting a mortgage Monthly property valuation estimates so you can see what your home is worth Notifications when there’s an opportunity to save money on your mortgage n On average, we save users $1,500 per year on their mortgage, compared to going with a bank. How much lower are our mortgage rates? Go ahead, see for yourself.

Does it cost anything to use Perch?

Nope. It’s totally free to use our tools and calculators, to open an account, or to speak with one of our mortgage advisors.

How does Perch make money?

Perch makes money through mortgage commissions. If you choose to get a mortgage with us, as opposed to going through your bank or another mortgage broker, the lender pays us a commission. We only get paid if we successfully close your deal.nn Note: We don’t accept fees from lenders in exchange for preferential treatment. We only offer mortgages from regulated, trusted Canadian financial institutions.nn It’s always free to sign up for a Perch account or to use tools and calculators provided by Perch.

Who can sign up to Perch?

Perch is open to any Canadian resident who is looking to buy a home in the future or already owns a home. Perch is available to all provinces and territories, including Quebec.

Is Perch a mortgage brokerage?

Yes. Perch is a digital mortgage brokerage that’s fully licensed and regulated.

Perch is a privately owned company and was founded in 2018 by Alex Leduc.

Which lenders does Perch work with?

We only offer mortgages from regulated, trusted Canadian financial institutions. Perch has access to mortgages from banks, credit unions, B lenders and private lenders.nn Here are some of the mortgage lenders we work with:n B2B Bank ICICI RFA CMLS Financial Lendwise RMG Mortgages Canadian Western Bank Manulife Scotiabank DUCA Marathon Mortgage Strive Financial Equitable Bank MCAP TD Bank First National MERIX Financial XMC Mortgage Corporation Home Trust Radius Financial

Do lenders pay for sponsored positions?

We don’t accept payment in exchange for preferential lender treatment. This means we only recommend a mortgage if we think it’s the right fit based on your financial goals.

What kind of mortgages can I get through Perch?

Shop and compare the best mortgage rates from multiple lenders. We offer fixed and variable mortgages ranging from 1-year to 10-year terms. The most popular are the 5-year fixed and 5-year variable mortgages.nn We only offer mortgages from regulated, trusted Canadian financial institutions. Perch has access to mortgages from banks, credit unions, B lenders and private lenders.

Does Perch offer commercial mortgages?

Unfortunately not. We offer mortgages for residential properties only.

Is Perch legit? Is it safe to use Perch?

Perch was founded in 2018 and is headquartered in Toronto, Ontario. We've been featured in major news outlets, including the Toronto Star, Financial Post, CityNews and BetaKit. We’re also a proud member of the Canadian Lenders Association, MaRS and Communitech.nn Perch is part of the REACH accelerator, operated by Second Century Ventures, the strategic investment arm of the National Association of Realtors.nn Your personal information is protected with AES-256, block-level storage encryption.

Is Perch available in Quebec?

Yes. Perch is available to Quebec residents, however our website is in English only. Should you require assistance in French, please contact us at support@myperch.io.

I’m a realtor. How can I sign up to Perch?

We love working with realtors! You can learn more about Perch for Realtors and sign up here (myperch.io/realtor).

You can view our latest job openings here (/careers), and follow us on LinkedIn (/perchcanada) for any updates.

Who can I talk to if I have more questions?

Drop us a line at support@myperch.io or give us a call at 1-844-415-8263.

What are the benefits of using Perch as a home buyer?

Perch offers:n Free tools and calculators to provide you with personalized insights during the buying process Pre-approvals in as little as 20 minutes and mortgage approvals in less than 48 hours Dedicated 1:1 support with a Perch mortgage advisor, 7 days a week Automated alerts to help you stay on track while getting a mortgage

What kind of information does Perch need to collect?

When signing up, we ask for your email address, which is used to validate your account. You do not need to provide any contact information to use our tools and calculators or to view our mortgage rates.nn We only ask for the information needed to submit a mortgage application, which may include documents such as bank statements, pay stubs, tax forms and your credit report. We’ll also ask for a copy of your government-issued photo ID. Without providing this information, we can’t proceed with a pre-approval or submit your mortgage application to the lender.

What does Perch do with my personal information?

The information is only used to complete a pre-approval or submit your mortgage application to the lender. Perch does not share any information with other companies without your consent.\n\n Your personal information is protected with AES-256, block-level storage encryption.

Does using Perch affect my credit score?

Using Perch may affect your credit score if you choose to get a pre-approval or submit a mortgage application with us. A hard credit check or hard pull is required as part of the process.\n\n Keep in mind that credit checks make up a small part of your overall credit score. Credit checks done within a 14- to 45-day period while you shop around for a mortgage are counted as a single pull by Equifax.\n\n Using Perch tools and calculators or to view your property value estimates will not impact your credit file in any way. We will only complete a credit check with your consent.

I’m buying with a co-applicant. Can I still use Perch?

Yes, you can use Perch with up to 4 other co-applicants. Sign up for a Perch account, and after you start a Home Buying Plan you’ll be prompted to invite your co-applicants to join Perch so you can collaborate together.

How does Perch match me with a realtor?

If you’re not yet working with a realtor, we can help you find one. Based on your profile criteria, such as your location and target property type, we’ll match you with one of our pre-screened Perch realtors. From there, you’ll have the opportunity to connect with that realtor and decide if there’s a good fit.

I already have a realtor. Can I still use Perch?

Yes, you can. Sign up for a Perch account, and after you start a Home Buying Plan you’ll be prompted to invite your realtor to join Perch so you can collaborate together.

How do I use Perch with my realtor?

While you’re shopping around for the right property, both you and your realtor can each add potential listings to Perch. You’ll be able to see whether the property falls within your budget, and what your maximum safe to bid amount is.

Does Perch have a referral program?

Thanks for thinking of us, we love getting referrals! (Almost as much as we love seeing 5-star reviews on Google, hint hint.)\n\n To refer a friend, log in to your Perch account and click on ‘Refer a friend’ to get started. You can earn up to $500 for each friend who gets a mortgage with us.

What are the benefits of using Perch as a homeowner?

Here’s a quick rundown of what you can do with Perch as a homeowner:\n Track your home value with monthly property estimates View your mortgage balance and see how much home equity you can access Get alerts when there’s an opportunity to save money by switching lenders Free tools and calculators

How does Perch provide its property value estimates?

To estimate the current value, we take the average growth rates in your area, of your property type, and overlay that growth rate with your most recent purchase price or formal property appraisal. This is done monthly, so you can easily track your returns over time.

How often does Perch update its property value estimates?

We update your property value estimate on the 20th day of every month.

Mortgage glossary

Last updated: July 22, 2022

Canadian mortgages can sometimes be overwhelming and confusing. So, we’ve compiled a list of terms that will help you better understand Canadian mortgages and help you find the best mortgage type that's right for you.

Adjustable rate mortgage (ARM)

Adjustable rate mortgage is a type of mortgage where the interest rate fluctuates periodically based on bank prime rates. It is also known as the variable rate mortgage.

Amortization period

The amortization period is the length of time it takes to pay off a mortgage entirely, including interest. The amortization period is not the same as a mortgage term and can be up to 5 and 30 years.

Annual lump sum allowance

Annual lump sum allowance is how much you are allowed to pay in addition to what you pay within your regular payment schedule.

Appraisal

An appraisal is a report that indicates the estimated value of a property that is assessed by a qualified professional called an “appraiser”. The buyer is usually responsible for the appraisal cost.

Assumption

Assumption is the legal agreement that involves the purchaser and the seller where the purchaser assumes the payments on an existing mortgage from the seller. Assuming a loan can sometimes save the purchaser money since there are fewer closing costs involved.

Bona fide sales clause

A bona fide sale clause is a clause in your mortgage that says you are not allowed to leave your lender until your mortgage term is up unless you sell the property.

Broker

A broker is an individual or firm who is involved in arranging financing for a client who does not personally loan the funds themselves.

Canada Mortgage and Housing Corporation (CMHC)

Canada Mortgage and Housing Corporation (CMHC) is a Crown corporation and a leading authority on the Canadian housing market. They provide High Ratio Mortgage Insurance by protecting the lenders and guaranteeing them payments on the funds they are lending out, which allows people to obtain homes with a down payment that is less than 20% of the property value.

Closing

Closing is the final step in buying and financing a home, which involves a meeting between the purchaser, vendor and lender. This is where the buyer signs and reviews documents prepared by a lawyer, related to the mortgage process and the property title and ownership is transferred from the seller to the buyer.

Closing Costs

Closing costs are expenses you pay to close a property purchase and sale. The major costs involved include appraisal fees, legal fees, title insurance and land transfer taxes. The closing costs are normally around 3-5% of the purchase price.

Commitment

Commitment is an agreement in writing between a lender and a borrower to loan funds on a specific date. In a commitment there is a set list of conditions that need to be met prior to funding by the borrower in order for the transaction to be properly executed.

Convertible mortgage

A convertible mortgage is a type of short-term mortgage that can be converted into a long-term mortgage without paying a prepayment charge.

Credit report

A credit report is a record of your credit history. It is a report that provides information to the brokers and financial institutions about the applicant’s current and past credit history. A credit report is used by a lender, among other details, to determine whether you accept or deny your mortgage application.

Debt ratios

Debt ratios measure your ability to repay a mortgage by ensuring debt doesn’t exceed a certain percentage of your income.

Default

Default is when the borrower fails to meet legal obligations in the mortgage contract. It is specifically when they fail to make their monthly payments on a mortgage.

Delinquency

Delinquency is when the borrower fails to make their mortgage payments on time. This can lead to a forced sale on the borrower’s home if the borrower fails to make their mortgage payments over several months.

Deposit

A deposit is the amount of money you give a seller when you submit a signed agreement of purchase and sale to buy a property. When the sale closes, the deposit will go towards part of the total purchase price.

Down payment

Down payment are the funds (including deposit) that are provided by the borrower and are put towards the purchase price of a property. Down payments for uninsured mortgages normally range between 20%-25% of the purchase price. If your down payment is less than 20%, you will need to buy mortgage default insurance since your mortgage will be considered as high-ratio.

First-time home buyer incentive (FTHBI)

The first time home buyer incentive is a program by the Government of Canada to provide financial assistance for first-time home buyers. The FTHBI is a shared equity program which allows first time home buyers to borrow up to 10% of the home value towards their down payment. This incentive will reduce the cost of borrowing by lowering your mortgage insurance and interest costs.

Fixed rate mortgages

A fixed rate mortgage is a type of mortgage where the interest rate stays the same for the entire mortgage term. If mortgage rates go up during the term, your rate will stay the same.

Gross Monthly Income

Gross monthly income is the total income that an individual earns per month prior to any expenses or deductions are taken into consideration.

High-ratio mortgage

A high-ratio mortgage has a principal greater than 80% of the property value. If you have a high-ratio mortgage, you will need to buy mortgage default insurance as your mortgage will be considered high-risk.

Home equity

Home equity is the value of your home, minus total outstanding debt such as your mortgage. So if your home is worth $800,000 and your mortgage is $600,000, your home equity is $200,000.

Investor

An investor is a source of funds for a lending institution. The institution then promises a certain rate of return to the investor based on the assessed risk of placing those funds out in the marketplace.

Interest

Interest is the money you pay to your lender for using the funds you borrow. Interest starts accumulating the day you get the funds, also known as funding date.

Land transfer tax

Land transfer tax is a closing cost you must pay to the government on your closing date. It is calculated based on the property’s purchase price. Taxes will vary depending on the province and first time home buyers are sometimes exempt from part of the cost.

Market value

Market value is the lowest price that a seller would agree to have someone purchase his property for. At the same time the highest price a buyer is willing to pay for that same home. Most of the time a home is purchased within 3-4% of the asking price of the seller under normal circumstances.

Maturity date

Maturity date is when your mortgage term ends. When your term ends, you will either renew your mortgage for a new term. Depending on your lender and whether they agree, they might let you pay it off completely.

Mortgage

A mortgage is a type of loan often used to buy a home or property. The property is the security for the loan and a mortgage allows the lender to take possession of the property if you don’t repay the loan on time.

Mortgage assumption

With a mortgage assumption, you take over the seller’s mortgage on the purchased property and accept full responsibility to pay the mortgage according to the existing mortgage terms. You must get the lender’s approval before assuming a seller’s mortgage.

Mortgage broker

A mortgage broker is a licensed individual who works on behalf of home buyers to search for the best mortgage deal among various lenders.

Mortgage pre-approval

A mortgage pre-approval is when a lender pre-approves you for a maximum amount and will let you know how much money your lender may lend you, however it doesn’t guarantee a final approval. You will get a pre-approved mortgage certificate when you are pre-approved. A mortgage pre-approval is mandatory before getting a mortgage.

Mortgage statement

A mortgage statement is a written record of your mortgage status, which includes how much you have paid in principal and interest to date. It will also show you the remaining principal on the mortgage.

Porting a mortgage

If your mortgage is portable, that means you have the ability to move or transfer an existing mortgage, which includes the balance and interest rate, to a new property or home. Not all mortgages are portable.

Posted rate

A posted rate is a lender’s standard advertised interest rate for a mortgage product.

Prepayment (lump sum payment)

Prepayment is when you make additional payments to pay some or all of the mortgage that are not set within the regular payment schedule. Some lenders will charge a penalty fee.

Prepayment Penalty

Prepayment penalty is a penalty charged if you pay out your mortgage prior to its term end. The terms for prepayment are defined in your mortgage agreement.

Prime rate

Lenders usually base the interest charge for their variable mortgages on their prime rate, which is usually based on the interest rate the Bank of Canada sets each night.

Principal

Principal is the amount of money you borrow from a lender. This does not include interest accrued or paid on the mortgage.

Property insurance

Property insurance covers the replacement cost of the home in case of certain unforeseen circumstances such as fire, windstorms or other disasters. Lenders will need proof of property insurance before releasing funds.

Qualify rate

A qualifying rate is the rate a lender will use to determine whether you qualify for the mortgage you applied for. Your lender will use the qualifying rate to calculate your debt-service ratio and will help them determine whether you can repay the mortgage.

REALTOR©

A REALTOR© is a professional who is legally registered with a real estate brokerage firm that provides the services of helping someone find or sell a home.

Refinancing

Refinancing a mortgage refers to the process of revising and replacing the terms of an existing mortgage. Refinancing is usually done to make favourable changes to an interest rate, payment schedule or other terms outlined in your contract. If approved, you will get a new contract that takes the place of the original agreement. You can also refinance to consolidate debt and access the equity in your home to pay for other expenses.

Renewal

Renewal takes place when your mortgage term ends. You might be able to negotiate for another term with your lender.

Second Mortgage

A second mortgage is a loan made in addition to your primary mortgage. People take out a second mortgage in order to get access to money to use towards renovations or personal reasons.

Term

A term is how long you commit to your mortgage rate, along with the conditions set out by your lender. Terms can range from 1 to 10 years. When a term ends, you must pay off the mortgage or renew it for another term if your lender approves.

Title

Title is the ownership you buy when you purchase a property. Any issues or concerns about the property’s title must be resolved before closing and lenders will require a clear title to the property before releasing funds.

Title Insurance

Title insurance is a certificate that is normally distributed by a title insurance company. It guarantees a home buyer’s legal safety against errors in the title search. It also ensures that no other mortgages can be registered without acknowledgment and permission from a lawyer and the originating financial institution.

Porting a mortgage

Underwriting

Underwriting is when a decision is made whether to pursue or provide a loan to a potential individual seeking financing. Standard underwriting considerations used to assess a file are credit, employment, and net worth. Based on the information provided an appropriate rate, term and loan amount are offered to the client.

Variable rate mortgage

A variable rate mortgage will fluctuate with the lender’s prime rate, which is usually influenced by the Bank of Canada overnight rate. There are technically 2 sub-types of variable mortgages, adjustable rate mortgages (where your payment moves with interest rate changes) or variable rate mortgages (where your payment stays fixed but your amortization will move to accommodate rate increases).

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