About the rates

Are the mortgage rates shown by Perch posted rates?

No. Perch shows discounted rates, which are the rates lenders will actually offer a qualified borrower. Because we work with over 40 lenders, we can show you what each one is genuinely willing to do rather than the sticker price they advertise publicly.

You can verify this yourself. Pull up any bank’s rate page and compare it to what you see in Mortgage Finder.

What is a posted rate?

A posted rate is a lender’s standard advertised interest rate. It’s the number banks publish, and it’s often a full percentage point or more above what they’ll actually approve. The gap exists so the discount off it feels like a win. Lenders generally expect you to negotiate down from it, and most borrowers never see a posted rate on a signed commitment.

Are these rates I can actually qualify for?

Yes. Every rate in Mortgage Finder is a real offer you can apply for online with Perch. Your final rate depends on the details of your file, including your down payment, credit score, income and the property itself, which your Perch mortgage advisor will validate as part of the approval process.

About Mortgage Finder

How does Mortgage Finder work?

Enter a few details about your purchase, renewal or refinance and Mortgage Finder returns personalized offers from over 40 lenders in real time.

What do I enter?

Fields come pre-filled with reasonable defaults, so you can start comparing immediately and adjust from there. Start by choosing whether you’re buying, renewing, or refinancing.

Buying a home

• City/Province — where you plan to purchase the property.
• Target Purchase price — the total price of the property.
• Down payment ($ and %) — the savings you’re putting toward the purchase. The percentage matters: it determines whether you need mortgage default insurance, and it affects the rates available to you.

Renewing

• Property value — what you estimate your  home is worth today (we’ll refine this when you sign up).
• Mortgage balance— the balance remaining on your current mortgage.

Refinancing

• Property value — what you estimate your  home is worth today (we’ll refine this when you sign up).
• Mortgage balance— the balance remaining on your current mortgage.
• Equity take out — how much equity you want to pull out by increasing your mortgage.

Is Mortgage Finder free to use?

Yes. Mortgage Finder is free, as are all of our calculators, rate comparisons and guides. Creating a Perch account is free too.

How does Perch make money?

Lenders pay us a commission when a mortgage closes. We don’t accept fees in exchange for preferential placement, which keeps us independent. No lender can pay to rank higher in your results unless they truly have the best offer.

Buying a home

What determines how much I can afford?

Mainly your income, your down payment, your existing debts and your credit score. Our qualifier calculator will give you an estimate of your maximum purchase price instantly.

Where do I start?

Our Guide to Buying a Home in Canada walks through the process step by step, from saving a down payment to getting the keys.

What does the mortgage process look like?

You start with a Perch mortgage advisor who reviews your situation and recommends options. They submit your application to a lender, who underwrites the deal. If you’re approved, the lender issues a commitment letter setting out the terms and conditions. If you’re declined, your Perch mortgage advisor will advise on next steps (ex: take it to another lender).

From there your Perch mortgage representative will collect the documents needed to satisfy the conditions in that commitment letter, ideally at least 10 days before closing. Once everything is cleared, the lender instructs your lawyer, who handles the legal side of the transaction and closes the mortgage.

Renewing

How do renewals work?

Your mortgage contract runs for a fixed period called the term. At the end of it you either pay the mortgage off or set up a new term. You can either sign a new term with your current lender or switch to a different lender, usually for a better rate or better terms. 

Switching at the end of your term is often free, since many lenders cover the setup, appraisal and legal costs to win your business. Switching mid-term is different: you’ll owe a prepayment penalty. Our calculator can give you a good estimate of what that penalty is expected to be, but confirm this number with your lender before you commit.

What is a renewal statement?

Your lender will send you a renewal statement roughly three months before your term ends, sometimes earlier. It includes:

• Your remaining balance as of the renewal date
• Rate options across different types and terms
• Confirmation of your payment frequency
• Any fees or charges that apply

Separately, if your lender doesn’t intend to renew you at all, they have to give you at least 21 days’ notice.

When should I review my mortgage?

You can lock in a rate with another lender for 120 days, so you should start evaluating this at least 4 months before your maturity date. Things to consider include:

• Whether you can afford higher payments at renewal (we built a calculator for this)
• If you need to condolidate debts or take out equity for large ticket items (ex: new car, renovations, kid’s education, etc)
• Whether your current lender has been good to deal with

Refinancing

What is a refinance?

A refinance means paying off your existing mortgage and replacing it with a new one, often at a higher balance and with a different rate, term or amortization. How much you can refinance depends on the equity you’ve built up, and in Canada you can generally borrow up to 80% of your home’s value.

Why do people refinance?

To access equity for home renovations or an investment, to consolidate higher-interest debt, to lower monthly payments by extending the amortization, or to cover an unexpected expense.

What’s required to refinance?

The process is similar to your original mortgage application but usually simpler. The lender reviews your income, assets, debts and credit score to confirm you can carry the new loan. You’ll need income documents and your current mortgage and property statements. If you’re refinancing mid-term, factor in the prepayment penalty on your existing mortgage.