We can help when the banks can’t.

With current lending requirements becoming increasingly tighter, qualifying to buy a home can sometimes be challenging. It is more common in today’s environment to see lenders requesting a larger down payment, or declining clients who have reasonably minor blemishes on their credit. Advanced Private Lending can help alleviate some of these issues by lending the difference or lending to a client when the banks won’t.

The following is a comprehensive list of useful mortgage information for first time home buyers.

Mortgage Basics

Mortgage payments are composed of two elements:

  • Principal – The amount borrowed
  • Interest – The cost to borrow the money

The best scenario for any type of mortgage is to minimize the amount of interest, and in turn, pay your mortgage off faster.  There are several options that allow you to accomplish this goal:

  1. A larger down payment – A larger down payment means your home ultimately costs less because a smaller mortgage accrues less interest.
  2. A shorter amortization – Shortens the period over which a loan is repaid.
  3. A weekly or bi-weekly payment schedule – Accelerating your payment schedule can allow you to save money, as you are making more payments per year than you would with a monthly payment.
  4. Lump sum payments – The ability to make additional lump sum payments is a great advantage available with most mortgages. These payments not only decrease your mortgage amount, but your principal and interest payments as well.

Mortgage Interest Rate

Mortgage rates are the cost of borrowing, and the interest on your mortgage loan is paid to the lender. There are two types of mortgage rates: fixed and variable.

A fixed rate is locked in and will not increase over the term of the mortgage.

A variable rate is set each month by the lender, based on the prevailing market rates, and will fluctuate.  Your mortgage payment is fixed to be the same each month for the term of the loan, but the percentage of each payment that goes towards the interest, and the percentage that pays down the principal will change with the rate.

Mortgage Term

The term of a mortgage is the length of time that certain factors, such as the mortgage rate and pre-payment privileges, are set at the level negotiated with the lender.  A mortgage term can last anywhere from 6 months to 10 years.  When the term expires, the mortgage is either paid off or renewed, with the option to renegotiate its terms and conditions.


This refers to the amount of time over which the entire mortgage will be repaid.  Most mortgages are amortized over 25 or 30 year periods.  The longer the amortization, the lower your scheduled mortgage payments, but the more interest you pay over the mortgage period. Opting for a shorter amortization period is a good way to pay your mortgage off faster.

Open Mortgage

An open mortgage gives you the option to repay the loan, in part or in full, at any time without penalty. Taking advantage of an open mortgage usually means a slightly higher interest rate, but can be a good choice if you are planning to move or upsize in the near future.  Most lenders will allow you to convert to a closed mortgage at any time.

Closed Mortgage

The benefit of a closed mortgage is that it usually offers the lowest interest rate available. However, closed mortgages are not as flexible as open mortgages and there are often penalties or restrictive conditions attached to prepayments or additional lump sum payments.

Mortgage Approval Process

A mortgage approval should take only a few days, but it is best to allow up to 2 weeks.  During this process, the lender will do a credit check and verify the other information you have provided to us in your application.  In addition, an appraisal of the value of your home or property may be necessary.  If required, a request for mortgage loan insurance is submitted to CMHC or a private insurer.  The lender will then make the decision whether to approve your mortgage application.

Mortgage Pre-approval

Obtaining a pre-approval is very common in today’s market, and highly recommended by Mortgage Professionals.  A pre-approval gives you confirmation that your lender approves the amount of your mortgage.  Once your pre-approval has been decided, you are given a written or verbal confirmation for a fixed period of time.  This allows you access to the current mortgage rate for as long as 365 days in some cases.  Although a pre-approval gives you a head start on your search for that dream home, your final approval is still subject to a review of the property and your financial situation at the time of offer.


Mortgage Solutions

As lending regulations become increasingly strict, private mortgage financing is emerging as a significant source of mortgage funding. Often, there are situations in which banking institutions are unable or unwilling to lend. In these cases, seeking out a private lender becomes a preferred option. Learn more.

Home Purchase

With current lending requirements becoming increasingly tighter, qualifying to buy a home can sometimes be challenging. It is more common in today’s environment to see lenders requesting a larger down payment, or declining clients who have reasonably minor blemishes on their credit. Learn more.

Home Improvement

Improving or renovating a home can be done for a number of reasons, but the most common reason tends to be for personal enjoyment. Opportunity and timing don’t always match up, and Advanced Alternative Lending can assist in covering short or longer term gaps in financing when considering larger or smaller home improvement projects. Learn more.

Debt Consolidation

If you use your home as collateral for a debt consolidation loan, you may be able to negotiate a lower interest rate for all your combined debts, and extend your repayment term, therefore lowering your payments. Learn more.


If you have equity in your home you may be able to access it and use it to purchase investments, invest in a business or even pay off higher debt credit cards and loans and used the cash flow saved to invest. Learn more.

Funding Education

As education costs continue to climb, sometimes the only way to keep up is to borrow money. Be it for yourself, your spouse or your children, there are a number of solutions including government loans, lines of credit or borrowing against real estate. Learn more.

Self Employed

For self employed individuals, it can sometimes be difficult to qualify for a traditional mortgage. Lenders focus on several factors when making the decision to approve or decline a mortgage application, and reported income is one of the main criteria. Learn more.

Separation / Divorce

Life doesn’t always work out as planned and you don’t plan for a marital breakdown. Paying accumulated debt can be daunting, in some cases one spouse is left to pay bills on their own. You may need to draw from your home equity to pay credit cards or buy out your former spouses portion of the matrimonial home. Learn more.

Private Mortgage Rates

Interest rates on private mortgages can vary significantly depending on a number of influences, in much the same way as traditional institutional lending rates do. Learn more.

Credit Repair Tips

Credit Score

Keeping yourself aware of what is going on with your credit is very important.  Credit Bureau agencies have various programs available for you to use in order to check your credit score on the spot or sign up for a credit monitoring service. Continue reading.

Bad Credit

When unforeseen circumstances cause your credit score to drop, it’s nice to know there are steps you can take to repair it. Click here for some tips from the Financial Consumer Agency of Canada (FCAC) on how to improve your credit score.


Filing for bankruptcy can provide much needed relief to debtors who have come across unfortunate circumstances. Once bankruptcy is declared, unsecured creditors are no longer able to garnish your wages or initiate collection. Read more.

Mortgage Calculators Mortgage Info Centre

The Government of Canada provides information on mortgages via the Financial Consumer Agency of Canada. Visit their site for resources.