Tino Brelak is an experienced and knowledgeable mortgage broker servicing and helping clients in the Greater Toronto Area (GTA) for over 15 years. His banking background (including branch manager, credit auditor and financial advisor) allows him to navigate the mortgage process and ensure you get both the best mortgage rate and the right product. Whether your credit is perfect or poor, Tino can help you purchase a home, refinance, finance your investment property or get you the best mortgage rate at renewal.
More About Tino

How to Get Arount the New Mortgage Rules?

[Posted on: March 8, 2018]

The new mortgage rules have essentially lowered the qualifying power of mortgage applicants by approximately 20%. Whether you're buying and need a mortgage, or are simply refinancing, the qualifying bar just got higher. However, there are still ways to get around these rules, at least for now. Let's analyze them...

Think local, think mortgage brokers!

While the mortgage stress test is a requirement set by OSFI for all federally regulated institutions, mortgage brokers have access to credit unions that are regulated provincially and have not (yet) implemented the test themselves. In other words, business as usual with them.

Credit unions have always been one of the standard options for mortgage brokers, especially for niche products such as co-op's and stated income programs. Now, because of their flexibility and very competitive rates, they are becoming a lender of choice.

If you are looking to switch i.e. transfer your mortgage from one lender to another, without borrowing additional funds, certain banks can still approve you under the old rules, using contract rate versus the stress test.

There are two cases in which this would be allowed. First, if your mortgage is high ratio, i.e. insured (you purchased your property with less than 20% and have not refinanced it since). Second, if your mortgage is grandfathered, meaning it was approved before November 2016 and even though you had 20% down payment and did not pay insurance premium, the lender has internally insured it.

If you are looking to purchase a property ...Read Moreand your purchasing power has been decreased, you can always look into the option of getting a gift from immediate family to increase the down payment and in such way deal with the new mortgage rules.

While the gifted, or partially gifted down payment is not something that everyone has access to, those whose parents are in a situation to help, you could potentially sell the gift idea as an early inheritance. :)

Finally, there are always private mortgages. While these mortgages are not for everyone and are certainly not a long-term solution because of high interest rates and fees, there are plenty of situations where they make perfect sense. At least for the time being, as there are rumours that they will become regulated as well.

Private mortgages are a great solution for a short period of time, for example for someone looking to renovate a house before going back to their own bank and combining the renovation debt with their existing mortgage.

Using private funds is also a great solution for someone looking to quickly flip a property. Getting a construction mortgage with a bank is a complicated process for which not many can be approved.

To discuss your situation or these and other strategies, contact me directly.

[show less]


New 2018 Mortgage Rules

Conventional mortgages must qualify at the government benchmark rate (currently 5.14%), or your contract rate plus 2%, whichever is higher.

There are still institutions, mainly credit unions, that are not federally regulated and as such can approve mortgages using contract rates.

Contact me directly if you need a solution to your mortgage approval.

A mortgage is good for your credit score

A report from Canada Mortgage and Housing Corporation, using data gathered in 2017, shows that nearly 81% of mortgages in Canada were held by borrowers with a very good or excellent credit score.

And that number has been trending upwards since late 2015. The number of mortgage holders with an excellent credit score in 2017 increased by 1 full percentage point compared to 2016.

At the other end of the scale the number of mortgage holders with a fair or poor credit score dropped to 10.2% in Q1-2017, down a full percentage point from Q1-2015.

No Bank of Canada Rate Change

The Bank of Canada announced on March 7th that it is holding the overnight rate given the growing uncertainty in trade talks affecting Canadian and global outlooks.

The Bank noted that "while the economic outlook is expected to warrant higher interest rates over time, some continued monetary policy accommodation will likely be needed to keep the economy operating close to potential and inflation on target."

The next rate-setting day is Wednesday, April 18.

Independently owned and operated under license # 12179. Network Partner of Mortgage Intelligence

    Submit Online Application

   Call: 416-305-4435


We regularly receive short-term rate promotions that are not posted online, which means our rates change frequently. Please contact me for these unpublished rate specials, and for your own personalized rate and mortgage plan.

Terms Posted Rates Our Best Rates
6 Months 3.14% 3.10%
1 Year 3.04% 2.99%
2 Years 3.34% 3.24%
3 Years 3.49% 3.09%
4 Years 3.89% 3.39%
5 Years 5.14% 3.19%
7 Years 5.30% 3.79%
10 Years 6.10% 3.84%
5 Year Variable 2.40% 2.40%


Read More Testimonials