Loan knowledge

Loan knowledge

The minimum down payment is 10% to purchase a home, subject to maximum price restrictions. However, you must be able to confirm that you can cover costs incurred to close your mortgage. These costs may include legal fees, appraisal fees, survey certificates, etc.

Registered Retirement Savings Plans (RRSPs may be used as a down payment up to a maximum amount of $20,000 and are not subject to income tax if repaid within a specific time period) Gift from immediate family Accumulated savings Sale of existing home Sweat equity

When you are buying a home you will want to know two things: whether you are paying the right price and whether the condition of the home is as promised. To determine the value of the home you may need a professional appraisal. If you are taking out a mortgage loan the lender usually requires a professional third party appraisal of the home to determine the lending value.

Canada Mortgage and Housing Corporation is a federally owned and operated institution that evaluates the client and property to allow the borrower to purchase a home with a lower down payment requirement. This corporation insures the mortgage on behalf of the bank, through a premium added to your mortgage. This way the banks are obligated to provide a mortgage for those with less than a 20% down payment.

Distinct from mortgage life insurance or home, property, fire, and casualty insurance, mortgage insurance provides protection to the lender in the event of a default. If the amount of the mortgage exceeds 80% of the lending value of the mortgaged property, the mortgage is considered “high ratio”. Accordingly, and as required by law, mortgage insurance must be purchased for the full amount of the mortgage. Mortgage insurance is available from CMHC and GEMICO.

Mortgages are available with either a fixed rate or variable of interest for various terms, ranging from 6 months to 10 years, with payments amortized over periods of up to 35 years, or variable rate mortgages.

Need to know

Need to know

Before making a home-buying decision, calculate both the one-time and ongoing costs associated with buying and operating the home. As a guide for preparing a budget, consider the following: Costs associated with the purchase of a home include: Appraisal fees Cost to obtain a survey Land transfer taxes CMHC / GEMICO mortgage insurance (if applicable) Moving expenses Legal fees Home insurance Property tax adjustment Fuel adjustment Mortgage fees

Some lenders will consider your mortgage application depending on the circumstances surrounding your bankruptcy and your credit history since the bankruptcy has been discharged. The best way to determine if you can qualify for a mortgage after being discharged from bankruptcy is to call a mortgage consultant. Matrix Mortgage Global is skilled and experienced at assisting individuals with bruised or questionable credit to secure their dream home and set them on the path to financial peace of mind.

Mortgage brokers/agents represent you, the customer, not the lender. Because they are not employees of a lending institution, brokers/agents are not limited in the product they can offer you. Brokers/agents seek out the best lender package to suit your specific situation, whether it’s with a chartered bank, trust or insurance company, or private funds. There is a wide assortment of options and features available to home buyers today. Shopping around takes a lot of time and effort; many Canadians are intimidated by the mortgage process. In today’s very competitive marketplace, it pays to work with a mortgage professional who will represent you and ensure the mortgage you get is the one best suited to your needs. Choosing the wrong mortgage can cost you thousands of extra dollars. Mortgage brokers are the trained professionals who can help.

A professional presentation to a lender on the first application will get the best response and save you valuable time and money. Secondary applications with previous credit bureau inquiries may be more costly. Often the success of obtaining mortgage approval depends on the way a proposal is presented and to whom it is sent. Your mortgage broker is trained to present your mortgage proposal where and how it will get the most immediate, positive result. You don’t call an insurance company for insurance—you use an insurance broker, because of their expertise, product knowledge, and rates. So remember, call your mortgage broker first!

Mortgage brokers/agents do not always charge a fee for their services, but if a fee is warranted, it is negotiated up front and documented. Fees are based on complexity, strength, and type of project. They are a one-time only charge and are quoted once the details of the deal have been examined. Your investment in the professional services of a mortgage broker/agent is generally returned very quickly, not only in time saved, but also in the quality of the financing received.

Matrix Mortgage Global can place all types of loans provided they are backed by mortgage collateral. All sizes of loans, from small loans backed by a residential property to commercial properties in the millions of dollars, are readily available. Mortgage-backed loans in the millions are not uncommon with private pension funds and private lenders. In addition to handling straight mortgages, we are often called on to assemble financing (based on mortgage collateral) for businesses. Matrix Mortgage Global excels in this type of financing package because of our expertise in looking at loans from a mortgaging perspective, as well as our knowledge of financial institutions’ interests and desires for a particular product at specific times.

Simply use the Matrix Mortgage Global Mortgage Calculator to determine your monthly mortgage payments and outstanding mortgage amounts at the end of your mortgage term.

The easiest way to reduce the interest costs on a mortgage is to pay it off sooner. Here are three ways this can be done: Increase Payment Frequency – paying weekly or bi-weekly, rather than monthly, can save a significant amount of interest. Prepay Lump Sums on Your Mortgage Increase Payments – mortgage payments can be increased annually

About mortgages

About mortgages

Mortgages are loans you take out to buy real estate or turn your home equity into cash. Once approved, you repay the loan according to specific terms that include interest rate, payment amount and timeline. These details are set out in the mortgage document.

Your lender registers a charge on your property. If you can’t repay the mortgage, your lender can take possession of your property and sell it to collect any money you owe them.

Mortgage amortization period is the length of time it takes to pay off a mortgage, including interest. It may be between 5 and 30 years, depending on how much you can afford to pay. For a new mortgage, the amortization period is usually 25 years.

Mortgage term is how long you commit to your mortgage rate, details and conditions with a lender. When a term ends, you pay off the mortgage or renew it for another term if your lender agrees. Terms range from 1 to 10 years, but 4- to 5-year terms are most common.

To calculate interest on your variable-rate mortgage, you need your outstanding principal balance, current mortgage rate and payment frequency.

Multiply the outstanding principal amount by the mortgage rate in effect at the time. Divide that result by 365. Multiply by the number of days in the payment period in which that mortgage rate was in effect.

Interest is also calculated this way in leap years. You pay interest on your regular payment dates.

If you have a fixed-rate mortgage, interest is compounded semi-annually, not in advance.

If you have a fixed-rate mortgage, your interest rate and monthly payments stay the same for the entire mortgage term. If interest rates go up during the term, you’re protected because your rate stays the same.

If you have a variable-rate mortgage, your interest rate changes when a specified financial index (such as Matrix Mortgage Prime Rate) changes. Your mortgage agreement explains how and when your interest rate will change. Your regular payments may stay the same. But if interest rates go down, more of your payment goes towards the principal. If rates go up, more of your payment goes towards the interest.

You can prepay an open mortgage, in part or in full, without a prepayment charge. Open mortgages usually have higher interest rates than closed mortgages. But open mortgages are also flexible. If rates start to increase, you can easily switch to a closed mortgage.

If you prepay a closed mortgage before the mortgage term ends, you’ll pay a prepayment charge. For example, for a fixed-rate closed mortgage, the charge is usually the greater of 3 months’ interest or the interest rate differential (IRD). For a variable-rate closed mortgage, the charge is usually 3 months’ interest. Closed mortgages usually have better interest rates than open mortgages.

A short-term mortgage (with a term of 3 years or less) usually has a lower interest rate than a longer-term mortgage. When interest rates are high, and you think they may drop, choosing a short-term mortgage lets you lock in for a shorter period. A short-term mortgage may also be a good option if you plan to sell your home or pay off the mortgage early.

A long-term mortgage usually has a higher interest rate than a shorter-term mortgage. When current rates are reasonably low, choosing a longer term secures the interest rate for a longer period of time and makes budgeting easier.

Matrix doesn’t offer mortgage default insurance. If you need mortgage default insurance, your lender will arrange it through Canada Mortgage and Housing Corporation (CMHC) or another mortgage insurance company. But you pay the premium.

The premium is based on the size of your mortgage and down payment. You usually add the premium to your mortgage principal.

One reason you need this insurance is if you have a high-ratio mortgage ― when your down payment is less than 20% of the property value. Mortgage default insurance protects your lender if you default on the loan.

Optional Creditor Insurance for Matrix Mortgage provides protection in the event of death, critical illness, job loss or disability.

In the event of death, help protect your home with Mortgage Life Insurance for Matrix mortgage. Your Matrix mortgage balance is reduced or paid off up to $750,000. 

In the event of critical illness, such as stroke, heart attack or cancer, Mortgage Critical Illness Insurance for Matrix mortgages reduces or pays off your mortgage balance up to $500,000.

In the event of disability, Mortgage Disability Insurance can pay up to $3,000 per month towards your Matrix mortgage payment for up to 24 months to a maximum of $150,000 per incident of disability. 

If you lose your job through no fault of your own, Mortgage Disability Insurance Plus can pay up to $3,000 per month towards your Matrix mortgage payment for up to 6 months to a maximum of $50,000 for each incident of job loss.

You can cancel mortgage life insurance, mortgage critical illness insurance, mortgage disability insurance or mortgage disability insurance plus (disability and job loss insurance) at any time. Complete a cancellation form in a banking centre, submit your request in writing or call.

No, a HELOC is not the same as a mortgage loan. With a mortgage loan, you receive funds on a certain date and pay them back according to your mortgage agreement. A HELOC is a line of credit that lets you access up to 65% of your home’s appraised value. You use the funds you need and pay them back. Both a HELOC and a mortgage loan are secured by a registered charge on the title to your property. Learn how to consolidate your debt into a mortgage.

Yes, you can access your home equity to renovate even if you’ve done this before. You need a current appraisal of your home to find out how much equity you have. Then complete a new home equity line of credit application using your new value. Your lender determines if you qualify for the increased borrowing amount.

Yes, Matrix offers farm or agricultural mortgages. 

You usually arrange a mortgage before house construction. But if you start construction and need financing, you may still be approved for a mortgage. 

Get my mortgage

Get my mortgage

Yes, Matrix has several online tools and calculators to help you with the mortgage process:
  • Home equity calculator
  • Mortgage affordability calculator
  • Mortgage payment calculator
  • Mortgage prepayment calculator
  • Rent vs. own calculator

To qualify for most Matrix mortgages, you and your property need to meet a few requirements.

You need to have:

  • Documents that confirm your income and employment
  • A certain amount of equity in your property
  • Enough income to make your regular mortgage payments
  • If you’re buying a home, a minimum 5% down payment

The property should be:

  • Located in a built-up area with municipal services like water, sewer and hydro
  • Structurally sound with good plumbing, central heating and wiring that meets municipal standards

You might need a guarantor if you can’t meet all the lending criteria on your own. Also, the minimum mortgage amount is $10,000.

Matrix mortgages are available across Canada on new or existing properties ranging from detached single-family homes to 4-unit dwellings or individual condo units. You can use a Matrix mortgage to buy a property, transfer a mortgage from another financial institution, and for mortgage renewal, refinancing and assumption. Conditions apply to each.


Getting pre-qualified for a mortgage is the first step on your home-buying journey and can be done online in minutes. Our pre-qualification tool gives you an estimate of how much you might be able to afford for your first home or for a new home if you’re considering selling your current one. You must still provide documents and more financial details before getting pre-approved for a mortgage.

Getting pre-approved for a mortgage is a more significant step where you’ll be paired with a dedicated Mortgage Advisor. You’ll answer questions and provide financial documents that closely match those of a full mortgage application. If pre-approved, your pre-approval certificate will show your maximum mortgage amount, subject to several conditions. This certificate indicates to sellers and real estate agents that you’re serious about buying a home, but it doesn’t guarantee final approval. 

Minimum down payment requirements vary depending on where you live in Canada. They range from 5% to 20% of your home or property’s appraised value.

With a cash-back mortgage offer, in addition to the mortgage principal, you get a percentage of the mortgage amount in cash. The interest rates on these mortgages are higher than on some other mortgages. You may want a cash-back mortgage if you need money for expenses, such as new furniture, or repaying loans to cover closing costs.

Like standard mortgages, the Matrix Home Power Mortgage lets you borrow up to 80% of your home’s appraised value. The Matrix Home Power Mortgage also offers competitive interest rates and gives you a payoff date. The minimum mortgage amount is $10,000, but there’s no minimum if you transfer from another lender.

The Matrix Home Power Plan line of credit is a variable-rate personal line of credit. You can borrow up to 65% of your home’s appraised value and use as much or as little of the approved amount. A line of credit is flexible and always available to you. You can make principal and interest payments or interest-only payments. The minimum line of credit amount is $10,000. You may qualify for a mortgage loan as well as a line of credit under your Matrix Home Power Plan.

With mortgage assumption, you take over, or assume, the seller’s mortgage on the purchased property. You accept full responsibility to pay the mortgage according to the existing mortgage terms. You need the lender’s approval before you can assume the seller’s mortgage.

As the buyer, mortgage assumption may be a good option for you if interest rates are higher than the existing mortgage on the closing date.

Mortgage assumption may be a good option for the seller if they’re selling their home before the mortgage maturity date and not getting a mortgage on a new property. Mortgage assumption helps the seller avoid prepayment charges.

Yes, we do. And you may not need a Canadian credit history either. If you received permanent residence status within the last 5 years, you could qualify for our newcomer mortgage package. 

Access your home equity with a mortgage or line of credit. Find out how much you may qualify for with our home equity calculator. 

If you have all your paperwork in order, you can complete a mortgage application and go through the approval process in just a few days. 

Yes. There are also eligibility conditions, such as health, age and employment, that your Matrix advisor will review with you. 

Creditor insurance coverage could help pay off all or a portion of your mortgage, up to $750,000, in the event of death or covered critical illness. It could also help with monthly mortgage payments, up to $3,000, in cases of disability or job loss. 

Type of insuranceWhat does it provide?Why do I need it?Benefit goes toPremiums paid by
Mortgage default insuranceProtects lender when borrowers can’t repay their mortgageYou are required to have this insurance if you have a high-ratio mortgage or certain other types of mortgagesMortgage lender. The insurance does not protect the homeowner, who still has to repay the lender or the insurer.Homeowner. Premium may be added to the principal amount of the mortgage and repaid over the same amortization period.
Home or property insuranceProtects your home in case of damage by fire or other risks covered by the policyProtection for your home is required for mortgage funds to be advancedHomeowner and MatrixHomeowner
Title insuranceProtects against certain defects in title to the property. For the lender, it also protects against certain defects in the mortgage.Discuss with your lawyer or notary whether an Owner’s Policy is right for you. Your mortgage lender may require a Lender’s Policy.Owner’s Policy protects the homeowner against certain defects in the property title. Lender’s Policy protects the lender against certain defects in the mortgage and the property title.Homeowner
Creditor Insurance for Matrix MortgagesProtects your home by paying down or helping with mortgage paymentsHelps with mortgage payments so you and your family can stay in your home if the unexpected happensYour Matrix mortgage or Home Power Plan (HPP)Homeowner
Pay my mortgage

Pay my mortgage

Each mortgage has its own prepayment terms. A Mortgage Advisor can help you choose a mortgage with prepayment privileges that work for you. To find out about our different prepayment privileges, call us 

If you use Matrix Online Banking or Matrix Mobile Banking:

  • Sign on using your login credentials
  • From the menu, choose “Customer Services”
  • Under Account Services, Mortgages and Loans, select “Make a mortgage prepayment”
  • Fill in the “Mortgage prepayment” form

If you don’t use Matrix online or mobile banking:

  • Use your Matrix debit or credit card to register for online or mobile banking, or
  • Call us

Your mortgage agreement outlines your mortgage prepayment privileges. We’ll review your request with you before we make any changes.

Refer to your mortgage agreement. It sets out if you need to pay a prepayment charge, and how it’s calculated. You’ll pay the prepayment charge plus the principal and interest owing the day you pay off the mortgage. Estimate your prepayment charge with our mortgage prepayment charge calculator. For more information, call us 

If you pay all or part of your mortgage early, you may have to pay an IRD, a type of prepayment charge. For fixed-rate closed mortgages, prepayment charges are usually 3 months interest or the IRD, whichever is greater.

The IRD is different for other mortgages, including variable-rate mortgages, open mortgages or any mortgage after the fifth year.

Your mortgage agreement explains how it’s calculated. For more information, call us 

In most cases, you can change your payment frequency. You may have to pay an interest adjustment amount for the period between your last payment and the next one.

Example: If you switch from weekly to monthly payments, depending on the timing, you may owe interest on your first monthly mortgage payment.

To change your payment frequency, call us 

Yes, you’ll pay less interest if you make accelerated weekly payments. If you make more payments, you’ll pay down your principal faster and own your home sooner. The longer you owe money, the more interest you’ll pay. Learn how to pay off your mortgage faster. To change your payment frequency, call us 

Mortgage payment dates are set when you finalize your mortgage, but you can often change them. For more information, call us 

  • Watch videos and read articles about cash flow and debt management advice 
  • Learn how to get out of debit 

You could lose your home if you can’t afford your mortgage payments. If you think you’re going to miss a payment, tell your lender as soon as possible. They’ll help you make a plan to keep your mortgage in good standing. If you don’t make arrangements, your mortgage will go into default. Then, your lender could start the process of selling your property to someone else.

The cost of paying off your mortgage early is determined by your mortgage type, prepayment privileges and other factors, such as a cash-back repayment. Your payout includes the outstanding principal, interest, prepayment charges and fees, if applicable. Estimate your prepayment charges with our mortgage prepayment charge calculator. For more information, call us

Speak with your Mortgage Advisor to shorten your amortization period. Estimate how much you can save by changing your amortization period with our mortgage payment calculator.

Premiums are deducted with your monthly mortgage payments.

Manage my mortgage

Manage my mortgage

Yes, Matrix has several easy-to-use tools and calculators to help you with the mortgage process:

  • Home equity calculator
  • Mortgage affordability calculator
  • Mortgage payment calculator
  • Mortgage prepayment calculator
  • Rent vs. own calculator

We’ll help you choose a Matrix mortgage and take care of the rest. We’ll contact your existing lender and fill out the paperwork for you. You can switch to Matrix without any legal, appraisal or transfer-in fees1.

Find a mortgage that meets your needs with our mortgage selector.

You’ll get your mortgage statement between January and March each year. Keep it for future reference because you may need it for income tax purposes. Your mortgage statement outlines your rates, balances and payment details:

  • Total principal and interest payments made during the statement period
  • Principal balance at the end of the statement period
  • Principal and interest payment amount at the end of the statement period
  • Current interest rate at the end of the statement period
  • Remaining amortization at the end of the statement period
  • Property tax payment (if applicable)
  • Creditor insurance premiums

If you use Matrix Online Banking or Matrix Mobile Banking:

  • Sign on using your login credentials
  • Select your mortgage account from your list of accounts
  • From the Account Details screen and the “View” drop-down menu, choose “Mortgage Loan – Annual Summary”
  • The summary provides information about your mortgage for the past 2 calendar years (if applicable)

If you don’t use Matrix online or mobile banking:

  • Use your Matrix debit or credit card to register for online or mobile banking

For more information, call us 

For information about our mortgage rates, call us or go to mortgage rates.

When you sell your current home and buy a new one, you can sometimes transfer (or port) your mortgage to the new property. But not all mortgage terms are portable and conditions apply.

For more information, speak to a Mortgage Advisor or call us

It’s time to renew your mortgage when you get a renewal package, about 30 days before your mortgage ends. The package includes mortgage product offers, terms and other options. This is a good time to review your needs and savings options. For more information, call us at 

You may be able to renew your mortgage before the end of the term, depending on your mortgage. Prepayment charges may apply. For more information, call us 

No, Matrix doesn’t charge any administrative fees for renewing a mortgage.

After you sign on with your login credentials, you can access your mortgage number and principal balance. The balance includes all payments to date, but doesn’t include accumulated interest, fees or property taxes. If you select your mortgage, you can review more account details like maturity date and remaining amortization.

Only you can access accounts registered in your name. Guarantors can’t access any of your banking details or mortgage information.

Any time. Premiums are based on mortgage amount and your age at the time of insurance application.

If you renew your mortgage, you do not need to reapply for creditor insurance — your premiums and insurance coverage are automatically rolled over and will remain the same. If you refinance your mortgage, then a new insurance application is required.

No, an application for creditor insurance is approved only after your mortgage is approved. Creditor insurance is optional and does not impact your mortgage application.