Are the mortgage rates shown by Perch the posted rate?

Mortgage brokers do not usually use posted rates. Mortgage brokers offer the best rates from the start and these rates are also known as discounted rates. Discounted rates are closer to the actual mortgage rate the bank will offer you. The two rates are listed to make you feel like you’re getting a great deal when in reality, you are not. Typically, mortgage brokers post lower mortgage rates than banks because they have access to multiple lenders and products which allow you to shop around. You can check on any bank or lender’s website and review their rates compared to what your broker is offering, to ensure you are getting a discounted rate.

What does the posted rate mean?

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

These are rates that banks and lenders publicly announce and are usually a full percentage point or more than what the banks are actually willing to offer. The banks usually expect the borrower to negotiate the interest rate down. 

Are the displayed rates the actual rates I can apply and qualify for?

The rates we show at Perch are not posted rates. The rates you see are real rates that you can apply and qualify for. You can easily compare and shop around for the rates that work best for you and instantly apply online.

Why did we build the Pathfinder calculator?

We created the Pathfinder so you can easily and instantly compare different mortgage offers from different lenders all at the same time. This will allow you to identify which mortgage offer works best for you. 

How does this Pathfinder calculator work?

With Pathfinder, you’ll be able to view personalized mortgage offers just by plugging in a few details. The Pathfinder will allow you to filter the offers based on what’s most important to you, such as rates, term, lender, total savings and more in just 3 simple steps. You will then be able to easily apply online instantly. You will also get live insights to what other buyers are selecting for their mortgages.

How do I use the Pathfinder calculator?

To make this calculator simple to use, we’ve compiled a few different options and have filled in some of the fields already. You can modify each field with your own information to sort through different scenarios and find a mortgage rate that you like. 

First determine whether you want to buy a home, switch or renew or refinance. 

To buy a home

Down payment: This is the amount of savings you currently have that can go towards your purchase. If you are using this calculator on a property you already own, you can put the amount of money you have already paid down in this field.

Downpayment (%): This is the percentage of savings you currently have that can go towards your purchase. Your downpayment percentage will also affect your mortgage rate. 

Purchase price: This is the total selling price of a property and includes the down payment and principal on your loan.

To switch or renew

Mortgage principal: This is the amount of money you borrow when you first take out your home loan. 

Estimated home value: An estimate of what your home is worth today, in relation to current market conditions and what similar properties are selling for. 

To refinance

Estimated home value: An estimate of what your home is worth today, in relation to current market conditions and what similar properties are selling for. 

Current mortgage: The amount left of your existing mortgage

Equity take out: How much equity you would like to take out.

How will Perch Pathfinder help me find a mortgage?

Whether you are looking to buy a home, renew your mortgage or refinance, Perch Pathfinder can help you compare mortgages from over 30 mortgage lenders so you can identify which mortgage offer is best for you. All you need to do is input a few key details and the tool will help you sort through mortgage offers according to what is most important to you, such as total savings, mortgage rate, mortgage lender, term length, prepayment flexibility and more. Through predictive modeling, Pathfinder enables you to compare all mortgage deals as it relates to your overall expected costs.

This includes things like:

• Factoring in expected prime rate increases to compare a variable mortgage rate to a fixed mortgage rate
• Factoring in expected rate movements to compare shorter mortgage terms against a 5-year rate
• Factoring in expected penalties to break a mortgage based on each mortgage lender’s specific penalty calculation methodology

The tool also provides live insights so you can see what others are selecting for their mortgage term length, or how many are choosing fixed over variable mortgage rates.

What determines how much of a mortgage I can afford?

Your ability to buy a home will be determined by various factors, such as how much down payment you have, your income and your credit score. You can use a qualifier calculator to get an estimate of how much home you can afford.

How do I start the process of buying a home?

If you are looking to buy a home in Canada and don’t know where to start, you can visit our Guide to Buying a Home in Canada. This guide will give you a step by step process to follow to ensure you don’t miss a thing and are equipped with the necessary knowledge and information you need.

What is the process of getting a mortgage?

The first step to getting a mortgage is to work with a mortgage representative, who can review your situation and go over the mortgage options that would make the most sense for you. Your mortgage representative will then submit your application to the lender for you, who will then review your deal. If you are approved, the lender will issue a commitment letter which will outline the terms and conditions of your deal. If you are rejected, you will need to revise your application or go to a different lender.

Afterwards, your mortgage representative will go over any additional documents you might need in order to satisfy all of the mortgage commitment conditions at least 10 years before your closing date. When all of the mortgage representative conditions are met, the lender will instruct your solicitor, who deals with all legal aspects of the property buying process.

What does it mean to switch or renew my mortgage?

When you get a mortgage with your lender, you have a contract in place for a specific period of time, which is also known as the mortgage term. This term can range from a few months or longer. By the end of the term you have to make the decision to renew your mortgage or pay it off in full.

Switching your mortgage is when you take your mortgage from one lender to another when you reach the end of your mortgage term or sooner. Be sure to find out the costs of changing lenders, which can include set up fees, appraisal fees and other administration fees. If you switch your mortgage early, you might need to pay a penalty fee which is usually equal to three months worth of interest.

What is a renewal statement?

Your lender will typically provide you with a renewal statement 3 months (sometimes even earlier) before the end of your existing term. Your lender must also provide you with notice of at least 21 days before the end of your term if they won’t renew your mortgage. Your renewal statement will contain the following:

• The balance or remaining mortgage principal at the renewal date
• Various mortgage rate options at different rate types (ex: fixed) and terms (ex: 5 years)
• Confirming the payment frequency
• Any charges or fees that apply

In addition to the above, your renewal statement must specify that the interest rate offered won’t increase until your renewal date.

When should I review my mortgage needs?

It’s best to review your mortgage needs before your mortgage term comes to an end, as you’ll have to decide whether you’ll pay it off in full or renew it. This is a great time to evaluate whether your mortgage still works for you. Here are a few things you might want to consider when reviewing your mortgage needs:

• You are able to increase your payments to pay off your mortgage sooner
• You want to change your payment frequency
• You want to consolidate other debts that have higher interest rates and increase the amount of your mortgage
• You’re likely to make additional payments
• You’re satisfied with our current lender and their services
• You need optional life, critical illness, disability or employment insurance

What is a refinance?

A refinance is when you pay off your existing mortgage and replace it with a new mortgage. The new refinanced mortgage may have a larger balance, with a different rate, term and/or amortization. Your ability to refinance will depend on the built-up equity in your home.

What are the reasons for a refinance?

Refinancing your mortgage allows you to leverage your home and take out equity and there are several reasons why someone might refinance their mortgage. This can include home renovations, emergencies, lower mortgage payments and investments.

What is required to get a refinance?

The process to get a mortgage refinance is very similar to when you applied for your first mortgage but much simpler. The lender will look at your income, assets, debt and credit score to determine whether you meet the requirements to refinance and are able to pay back the loan. You will need your income documents and current property statements.

Is it free to use this Pathfinder calculator? 

Yes. Our Pathfinder calculator is completely free to use, along with all of our other calculators, rate comparison charts and articles.

How does Perch make money?

Perch makes money through mortgage commissions which is paid by the lender. We don’t accept fees from lenders in exchange for preferential treatment. We only offer mortgages from regulated, trusted Canadian financial institutions. It’s always free to sign up for a Perch account or to use tools and calculators provided by Perch.