Frequently Asked Question

We connect clients with specialized financial solutions, from mortgages to investment strategies, ensuring you have the right tools and expertise to make informed decisions.

We aren’t tied to one institution. Instead, we work with a broad network of lenders, advisors, and partners to bring you flexible options and competitive rates.

Our compensation depends on the service. In most mortgage transactions, lenders pay us a commission, meaning you don’t pay us directly. For certain advisory or custom services, fees may apply, which we’ll always explain upfront.

We work with individuals, families, and businesses. Whether you’re buying your first home, refinancing, planning for growth, or looking at corporate lending, we tailor our approach to fit your needs.

Yes. Protecting your privacy is a priority. We use secure systems and only share your information with trusted partners necessary to complete your transaction.

Not necessarily. While strong credit helps unlock the best rates, we also have access to solutions for clients with less-than-perfect credit or unique circumstances.

Absolutely. While mortgage solutions are a major focus, Aventurine Financial also explores opportunities in investment, business financing, and financial planning.

You can contact us directly through our contact form on our website, by phone, or email. A specialist will guide you through the next steps based on your goals.

A mortgage is a type of loan specifically designed to help you purchase real estate. Because homes are large investments, most people don’t pay the full amount upfront. Instead, they borrow from a lender and agree to repay that loan over time, with interest. The property itself acts as collateral—meaning if the loan isn’t repaid, the lender has the right to take possession of the property.

While a mortgage is technically a loan, it has a few unique features:

Secured by Property: Unlike personal loans or credit cards, a mortgage is tied to a specific piece of real estate.

Long Repayment Periods: Mortgages are usually paid back over decades (most commonly 25–30 years), while regular loans are often much shorter

Structured Terms: Mortgages are broken into “terms” (e.g., 1–5 years), during which your rate and conditions are set. At the end of each term, you renew or renegotiate.

Lower Interest Rates: Because mortgages are secured against property, they usually carry lower interest rates than unsecured debt.

Mortgage Term: This is the length of time your contract is in effect, typically ranging from 6 months to 5 years. During the term, your interest rate, payment schedule, and other conditions are locked in. At the end of the term, you either renew with your lender or switch to a new one.

Amortization Period: This is the total length of time it will take to pay off your mortgage in full, assuming you make your scheduled payments and don’t pay extra. In Canada, the maximum amortization is usually 25 years with a down payment under 20%, or up to 30 years with 20% or more down. Think of it this way: the term is like a chapter in your mortgage, while the amortization is the whole book.

In Canada, the minimum down payment depends on the purchase price of the home:

• 5% for homes up to $500,000


• 5% on the first $500,000 + 10% on the remainder for homes between $500,000 and $999,999


• 20% minimum down payment for homes $1,000,000 or more (and note: homes over $1M are not eligible for CMHC/insured mortgages, so 20% is the baseline requirement)

A larger down payment reduces the size of your mortgage, can help you avoid mortgage default insurance, and may also qualify you for better rates.

Mortgage default insurance (often called CMHC insurance) protects the lender if a borrower fails to make payments. In Canada, this insurance is mandatory if your down payment is less than 20% of the home’s purchase price.

Here’s what you need to know:

• It allows buyers with smaller down payments to qualify for a mortgage.
• The insurance premium is added to your mortgage balance and paid over time.
• It doesn’t protect you as the homeowner—it protects the lender.

If you have at least 20% down, this insurance isn’t required.

Fixed-Rate Mortgage: Your interest rate is locked in for the entire term (e.g., 5 years). Your monthly payments stay the same, which gives you predictability and stability.

Variable-Rate Mortgage: Your interest rate can fluctuate based on the lender’s prime rate. Payments may change, or in some cases, the payment amount stays the same but more goes toward interest when rates rise.

Which is better? Fixed rates are ideal if you value stability or expect rates to rise. Variable rates can save money when rates are stable or falling but come with more risk.

Lenders use two main measures to determine how much mortgage you qualify for:

Gross Debt Service (GDS) Ratio: This compares your housing costs (mortgage, property taxes, heat, and condo fees if applicable) to your income. Generally, it should not exceed 35% of your gross income.

Total Debt Service (TDS) Ratio: This compares all your debts (housing costs + credit cards, car loans, lines of credit, etc.) to your income. Usually, this must stay below 42–44%.

They also look at your credit score, employment history, down payment, and savings. The goal is to ensure you can manage the payments comfortably.

A pre-approval is a lender’s written confirmation of how much you can borrow, at what rate, and under what conditions.

It’s important because:

• It locks in an interest rate (usually for 90–120 days) while you shop for a home.
• It shows sellers you’re serious, which can give you an advantage in competitive markets.
• It helps set your budget so you don’t waste time looking at homes outside your price range.

Keep in mind: pre-approval is not a guarantee. Final approval happens once you have an accepted offer and the lender reviews the property details.

Pre-qualification: An informal estimate of what you might qualify for based on basic information you provide. There’s no credit check, and it’s not binding.

Pre-approval: A more formal process where the lender reviews your income, debts, credit history, and may hold a rate for you. It’s a conditional commitment and much stronger than pre-qualification.

In short, pre-qualification is a quick ballpark figure; pre-approval is an official step toward securing financing.

Your credit score reflects how reliably you manage debt. The higher your score, the more mortgage options you’ll have.

Excellent Credit (750+): Access to the best rates and most competitive terms.
Good Credit (680–749): Qualifies for most lenders and solid rates.
Fair/Poor Credit (under 680): Options may be limited to alternative or private lenders, often with higher interest rates.

Even if your score isn’t perfect, solutions exist—but you may face higher costs or need a larger down payment. Improving your credit before applying can expand your options and save you money long-term.

Closing costs are the expenses you pay in addition to your down payment when finalizing your home purchase.

Common examples include:

• Legal fees and disbursements
• Land transfer taxes (provincial and sometimes municipal)
• Title insurance
• Appraisal or home inspection fees
• Adjustments for property taxes or utilities

As a rule of thumb, you should budget 1.5% to 4% of the purchase price for closing costs. This ensures you’re not caught off guard when it’s time to finalize the deal.

Most lenders allow some form of prepayment privileges:

• Making lump-sum payments (often up to 10–20% of the original principal each year)
• Increasing your regular payment amount by a set percentage
• Making additional payments on top of your schedule

If you pay more than what your contract allows, or if you break your mortgage before the end of the term, you may face prepayment penalties. The exact rules depend on your lender and mortgage type.

If you end your mortgage contract early—whether to sell your home, refinance, or switch lenders—you’ll typically face a prepayment penalty.

This could be:

• Three months’ interest (for variable-rate mortgages, usually)


• Interest rate differential (IRD) (for fixed-rate mortgages, which can be much higher depending on the rate and time left in your term)

Some mortgages offer portability (allowing you to transfer it to a new property) or flexible terms that reduce penalties. Always check your mortgage contract before making changes.

• Open Mortgage: Offers maximum flexibility. You can pay off the entire balance at any time without penalties. In exchange, the interest rate is typically higher.


• Closed Mortgage: Offers lower rates but limits how much extra you can pay. Paying off the balance early (beyond your prepayment allowance) usually results in penalties.

Some mortgages offer portability (allowing you to transfer it to a new property) or flexible terms that reduce penalties. Always check your mortgage contract before making changes.

Refinancing means replacing your current mortgage with a new one, often with a different lender, rate, or term.

People refinance to:

• Access home equity (borrowing against the value you’ve built in your property)
• Consolidate high-interest debts into one lower-rate payment
• Change from variable to fixed (or vice versa)
• Take advantage of lower interest rates

Some mortgages offer portability (allowing you to transfer it to a new property) or flexible terms that reduce penalties. Always check your mortgage contract before making changes.

A second mortgage is an additional loan taken against the equity in your home, while your first mortgage is still in place. Because the lender takes on more risk (they’re second in line if the home is sold or foreclosed), interest rates are usually higher than on your first mortgage.

Homeowners use second mortgages to:

• Consolidate debts into one monthly payment
• Access cash for renovations, education, or investments
• Cover large expenses without breaking their first mortgage contract

Some mortgages offer portability (allowing you to transfer it to a new property) or flexible terms that reduce penalties. Always check your mortgage contract before making changes.

A collateral mortgage is registered for an amount higher than your actual loan (sometimes up to 125% of the property value). This allows you to borrow more later—like a line of credit—without having to refinance.

Homeowners use second mortgages to:

• Flexibility: Easier to borrow additional funds in the future.
• Portability: Harder to transfer to another lender, which can limit your options at renewal.
• Registration amount: Registered for more than your current mortgage balance.

Collateral mortgages can be powerful tools but may not be ideal if you want freedom to switch lenders easily.

When your mortgage term ends, you don’t have to reapply for a new mortgage—you simply renew for another term until the mortgage is fully paid off (amortized).

Homeowners use second mortgages to:

• Your lender will offer you a new rate and term.
• You can accept, negotiate, or switch to a different lender.
• It’s a great opportunity to review your goals—whether you want lower payments, a shorter amortization, or access to equity.

Tip: Don’t just sign the first offer your lender gives you. Shopping around at renewal can often save thousands.

Yes, this is called porting your mortgage. If your lender allows it, you can move your existing rate, term, and conditions to your new home.

This helps you:

• Avoid breaking your mortgage (and paying penalties)
• Keep a rate you like if market rates have gone up
• Blend your existing mortgage with new funds if your next home is more expensive

Not all mortgages are portable, so it’s important to check the terms before listing your current home.

No—you don’t have to rely on just your bank.

Mortgage professionals like Aventurine Financial work with:

• All Major banks (familiar names with strong reputations)
• Credit unions (often more flexible and community-focused)
• Monoline lenders (specialized mortgage-only lenders, not open to the public directly)
• Alternative and private lenders (for borrowers with unique circumstances, such as self-employment or weaker credit)

Not all mortgages are portable, so it’s important to check the terms before listing your current home.