When Prime Rates Differ?

Katherine Martin • November 14, 2016

Although the recent changes to mortgage qualification introduced by the government were intended to create stability in the Canadian housing market, the unintended consequences might have been to make the waters a little muddier. For the first time, it looks like Canadians weighing their mortgage options will have to be aware that not only do different lenders offer different products at different rates, but that the baseline for rate calculation might be different between lenders as well. Comparing apples to apples and oranges to oranges just became more difficult. 

You see, in response to these latest changes by the government, last week TD announced that it was raising its TD Mortgage Prime rate to 2.85%, up from 2.70% effective November 1st, 2016. Speculation was that the other major banks would follow suit, however it’s a week later, and still we have no action. This is clearly a pre-emptive move by TD in anticipation of higher mortgage funding costs. And you can’t hold it against them, banks are really good at making money, and they do that by charging interest on lending products to consumers. Well, that and debit transaction fees, but that’s an entirely different topic altogether. 

Customers with fixed rate mortgages will be unaffected by these changes, however variable rate mortgage holders will now be paying more interest at TD than any other bank in Canada. But here is where things get complicated, although variable rate mortgages are based on the prime rate (which is now not consistent between all lenders) there is usually what is called a “component to prime”, so it’s usually prime rate, plus or minus a component. At the time this was published most lenders are offering a discount of around a half a percentage point on their variable rate products. With a higher prime rate, TD could effectively offer a deeper discount, and appear like they are offering the lowest rate on the market, but in actual fact, they would be at a higher effective rate. 

This certainly isn’t meant to be a slam against TD bank, TD has offered some great products in the past, and will no doubt continue to do so. The main point of this article is simply:

Banks are in the business of making money, mortgage brokers are in the business of taking care of their clients. 

With all the products available on the market, how do you know which one is best for you? That’s where I come in. I am an independent mortgage professional, my obligation is to you, my job is to know the ins and outs of all the products offered by different lenders, so that you don’t have to. So regardless of what bank is offering what prime with whatever discount, you have someone who sees through the noise, assesses your needs, and recommends a mortgage solution that is best for you. 

If you have any questions, or would like to discuss your mortgage, please don’t hesitate to contact me anytime , I would love to hear from you! 

Katherine Martin


Origin Mortgages

Phone: 1-604-454-0843
Email: kmartin@planmymortgage.ca
Fax: 1-604-454-0842


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What to Expect in the Closing Process: A Step-by-Step Guide

By Katherine Martin • February 11, 2026
You’ve found the right home, your offer’s been accepted, and your financing is approved—congratulations! But before you can pick up the keys and celebrate, there’s one more important stage: the closing process. Closing is the final step in your homebuying journey, where all the paperwork, legal details, and financial transactions come together. It can feel overwhelming if you don’t know what to expect, but with the right preparation, closing can be smooth and stress-free. Here’s a step-by-step guide to help you understand the process. Step 1: Hire a Lawyer or Notary A real estate lawyer (or notary, depending on your province) handles the legal side of closing. They will: Review the purchase agreement and mortgage documents Conduct a title search to confirm the seller has the legal right to sell the property Ensure the mortgage lender is properly registered on the title Handle the transfer of funds between you, the lender, and the seller Your lawyer or notary will be your main point of contact during closing, so choose one you trust and who communicates clearly. Step 2: Finalize Your Mortgage Your lender will send the mortgage instructions directly to your lawyer or notary. At this stage: You’ll provide proof of property insurance (lenders require this before releasing funds) You’ll confirm your down payment and closing costs are available in your lawyer’s trust account The lawyer will prepare all documents for your review and signature Step 3: Pay Closing Costs Closing costs typically range from 1.5% to 4% of the purchase price. These can include: Legal fees Title insurance Land transfer tax (where applicable) Adjustments for property taxes or utilities prepaid by the seller Home inspection or appraisal fees (if not already paid) Your lawyer will provide a final statement of adjustments so you know exactly how much is due on closing day. Step 4: Sign the Paperwork A few days before closing, you’ll meet with your lawyer or notary to sign all the necessary documents, including: Mortgage agreement Title transfer Insurance confirmations Statement of adjustments Bring valid government-issued ID to this appointment. Step 5: Transfer of Funds On the day of closing: Your lender sends the mortgage funds to your lawyer Your lawyer combines these funds with your down payment and pays the seller Legal ownership of the property is transferred into your name The lender is registered on title as a secured creditor Step 6: Get the Keys! Once the paperwork is filed and the funds have cleared, your lawyer will confirm that the transaction is complete. You’ll then get the keys to your new home—officially making it yours. The Bottom Line The closing process is a series of important steps, but with the right team in place, it doesn’t have to be stressful. By working closely with your mortgage professional and lawyer, you’ll have guidance every step of the way—from signing the documents to turning the key in the front door. If you’d like help preparing for the closing process—or want a clear breakdown of your own closing costs— connect with us today.

Buying a Vacation Property or Rental? Here’s What Lenders Look For

By Katherine Martin • February 4, 2026
Owning a vacation home or an investment rental property is a dream for many Canadians. Whether it’s a cottage on the lake for family getaways or a rental unit to generate extra income, real estate can be both a lifestyle choice and a smart financial move. But before you dive in, it’s important to know what lenders look for when financing these types of properties. 1. Down Payment Requirements The biggest difference between buying a primary residence and a vacation or rental property is the down payment. Vacation property (owner-occupied, seasonal, or secondary home): Typically requires at least 5–10% down, depending on the lender and whether the property is winterized and accessible year-round. Rental property: Usually requires a minimum of 20% down. This is because rental income can fluctuate, and lenders want extra security before approving financing. 2. Property Type & Location Not all properties qualify for traditional mortgage financing. Lenders consider: Accessibility : Is the property accessible year-round (roads maintained, utilities available)? Condition : Seasonal or non-winterized cottages may not meet standard lending criteria. Zoning & Use : If it’s a rental, lenders want to ensure it complies with municipal bylaws and zoning regulations. Properties that fall outside these norms may require financing through alternative lenders, often with higher rates but more flexibility. 3. Rental Income Considerations If you’re buying a property with the intent to rent it out, lenders may factor the rental income into your mortgage application. Long-term rentals : Lenders typically accept 50–80% of the expected rental income when calculating your debt-service ratios. Short-term rentals (Airbnb, VRBO, etc.) : Many traditional lenders are cautious about using projected income from short-term rentals. Alternative lenders may be more flexible, depending on the property’s location and your financial profile. 4. Debt-Service Ratios Lenders use your Gross Debt Service (GDS) and Total Debt Service (TDS) ratios to determine if you can handle the mortgage payments alongside your other obligations. With investment or vacation properties, lenders may apply stricter guidelines, especially if your primary residence already carries a large mortgage. 5. Credit & Financial Stability Your credit score, employment history, and overall financial health still matter. Since vacation and rental properties are considered higher risk, lenders want reassurance that you can handle the additional debt—even if rental income fluctuates or the property sits vacant. 6. Insurance Requirements Rental properties often require specialized landlord insurance, and vacation homes may need coverage tailored to seasonal or secondary use. Lenders will want proof of adequate insurance before releasing mortgage funds. The Bottom Line Buying a vacation property or rental can be exciting, but financing these purchases comes with extra rules and considerations. From higher down payments to stricter property requirements, lenders want to be confident that you can handle the responsibility. If you’re considering a second property, the best step is to work with a mortgage professional who can compare lender requirements, outline your options, and find the financing that works best for you. Thinking about making your dream of a vacation or rental property a reality? Connect with us today.
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