FIRST MORTGAGES

We provide first mortgages secured to residential, commercial, and rural real estate across Canada.

WHAT IS A FIRST MORTGAGE

A first mortgage is a loan that occupies the first position against a property. Commonly, a first mortgage is provided to purchase, refinance, or access equity in a property.

Financial institutions have strict lending criteria and it can often be difficult to obtain a first mortgage. In contrast, private lenders are less stringent and use common sense underwriting. Private lenders are focused on equity, rather than income or credit.

A first mortgage is provided based on a percentage of the equity in a property. The more equity you have, the larger a first mortgage you can likely obtain.

A first mortgage does not mean that it is your first time taking out a mortgage. Additionally, it does not mean that it is the first, first mortgage on a property. Over several years, a single property could be refinanced numerous times with a new first mortgage. This information is recorded on the land title or deed and is public information. Most of the world uses the Torrens System for recording all interests and information.

It is possible to have a first mortgage and second mortgage at the same time. You can even have a third mortgage, fourth mortgage, and subsequent mortgages or loans on a property. However, it is rare that a property has more than a second mortgage. First mortgages typically have lower rates and fees than subsequent mortgages. You are typically required to pay off all debts and subsequent mortgages secured to the property before you can obtain a new first mortgage unless these subsequent debtors postpone their position and priority.

The first mortgage has first priority. Priority is assigned based on the date and time of registration. Imagine three people arrive to stand in a line. Once the first person leaves (gets paid out to leave the line), the second person moves up in the line and becomes the first. The third person becomes the second and there is no third person in line anymore. The only way to get into this line is to go to the back. Alternatively, you need to be granted written permission from each of the people in front of you to postpone their position in line. However, you could also pay off the first and second person in line and you would become the first and only person in line.

HOW TO QUALIFY FOR A FIRST MORTGAGE

To qualify for a first mortgage, you must have sufficient equity or down payment.

We are an equity-based lender. Regardless of income or credit, if there is sufficient equity, you are approved.

GET A FIRST MORTGAGE

Visit our Loan Products page to learn more about what we have to offer.

View our Guidelines and Lending Areas to get started.

Find out if we can help by requesting a Free Consultation or Apply Online.

Interested in getting a first mortgage? Contact us to get started.


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