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QuestMortgage at a look
Launched in 2022, QuestMortgage is an online-only lender providing mortgages on to customers.
QuestMortgage key options
QuestMortgage mortgage varieties
- Launched in 2022.
- Offered by the identical monetary establishment behind the favored self-investing platform, Questrade.
- Apply and get pre-approved for a mortgage on-line, at anytime.
- Generous fee-free prepayment choices that can assist you pay down your mortgage faster.
- Fixed-rate mortgages (buy and refinance).
- Variable-rate mortgages (buy and refinance).
- Cash-back mortgages.
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Pros
- Posted mortgage charges are usually decrease than these from the Big Six banks.
- Convenient on-line utility course of with cellphone or chat help if wanted.
- Prepayment choices will help you save on curiosity over the time period of your mortgage.
Cons
- Not available for properties in Quebec, Northwest Territories, the Yukon and Nunavut.
- No bodily department areas.
- Loan provides seem like restricted to supply second mortgages or specialty loans.
QuestMortgage overview
QuestMortgage is just not a monetary establishment; it’s a direct lender powered by Community Trust Company[1]. If the identify sounds acquainted, that’s as a result of QuestMortgage is a part of Questrade Financial Group, the identical folks behind Questrade, one of many extra common on-line brokerage platforms in Canada.
Although Questrade was based in 1999, it didn’t begin providing mortgages till early 2022. QuestMortage goals to face out in a crowded subject by simplifying the appliance course of, eradicating in-person conferences and providing aggressive rates of interest.
QuestMortgage provides fixed- and variable-rate closed mortgages. If you’re keen to pay a barely greater rate of interest, you can even earn as much as $5,000 in money again once you get an eligible fastened or variable QuestMortgage.
Whether you’re searching for your first mortgage otherwise you wish to refinance, QuestMortgage is value contemplating on account of its comfort, simplicity and aggressive charges.
Who is QuestMortgage greatest for?
QuestMortgage could also be a good selection for home consumers or refinancers with a robust credit score rating who need the comfort of a digital utility expertise.
QuestMortgage provides a typical however restricted choice of mortgage varieties designed to serve prime debtors — aka those that can meet the stricter {qualifications} of federally regulated lenders and the mortgage stress take a look at. Also, as a result of QuestMortgage is a direct-to-consumer, online-only lender, debtors will must be snug speaking with a mortgage advisor on-line or over the cellphone — with no means to go to a department in person.
QuestMortgage function overview
Mortgage selection
QuestMortgage is a comparatively new home mortgage supplier in Canada. It’s part of the Questrade Financial Group, which is usually identified for its buying and selling platform Questrade.
With QuestMortgage, you will have the selection between fastened and variable closed mortgages, with phrases of as much as 10 years. The firm doesn’t provide open mortgages as of July 2023, and its web site doesn’t readily provide particulars of different kinds of loans, similar to convertible mortgages, building mortgages, rental mortgages, second mortgages or mortgages for funding properties.
Additionally, present debtors might be able to reap the benefits of a particular provide to earn as much as $5,000 money again, relying on the scale of your mortgage (phrases and situations apply). Borrowers on this provide ought to know that they’ll probably have a barely greater rate of interest than they’d with out receiving money again, so it’s value doing a little math to verify it’s value it.
Ease of utility
One function that makes QuestMortgage interesting to many debtors is the handy and accessible utility course of.
The lender’s on-line utility is available 24/7, and based on its web site, you could be pre-approved in as little as a couple of minutes. Alternatively, you may converse with a QuestMortgage advisor by cellphone or reside chat to debate your mortgage wants and ask questions.
Regardless of the way you apply, QuestMortgage will mean you can lock in your charge for up 120 days upon pre-approval. This might mean you can house-hunt with confidence, realizing that your charge gained’t change for just a few months.
Loan quantities and phrases
QuestMortgage’s web site doesn’t listing a most or minimal mortgage quantity. That stated, because the utility course of is on-line, you may enter your numbers to see what’s provided.
As for the phrases, QuestMortgage’s web site signifies one- to 10-year fastened phrases. For variable-rate mortgages, three- and five-year phrases are available.
Mortgage charge transparency
QuestMortgage posts its lowest high-ratio insured five-year fastened charge on the home web page of its web site. To see a five-year variable charge in a wide range of phrases, you’ll have to click on over to the charges web page.
The lender is obvious about what a posted charge means, and the truth that you’ll probably have the ability to negotiate a decrease charge. In the advantageous print, it additionally discloses a few of the assumptions used to generate these pattern charges.
Rate varieties
At this time, QuestMortgage seems to supply fastened and variable charges on solely closed mortgages. Rates differ based mostly on the time period you select, in addition to elements like your down cost, buy worth, credit score rating and different elements.
In case you wish to speed up your reimbursement and save on curiosity, QuestMortgage can give you two prepayment choices. First, you may make extra lump-sum funds of as much as 20% of the unique stability firstly of the time period and in your mortgage anniversary annually. Second, you may improve your funds at any time, as much as 100% of the unique month-to-month cost.
If you intend on paying off your remaining stability, for instance as a part of refinancing, QuestMortgage will use a system to calculate your prepayment penalty. For these with a fixed-rate mortgage and three or extra months left of their time period, the prepayment cost relies on three months of curiosity or the rate of interest differential (IRD), whichever is larger.
If you’re on a variable-rate mortgage with three or extra months left in your time period, you’ll pay a prepayment cost of three months of curiosity.
Discharge and authorized charges can also apply.
Security and security
QuestMortgage secures your private data with firewalls, encryption and extra. For instance, the web site makes use of Extended Validation (EV) digital certificates to make sure that you’re logging into the authentic QuestMortgage website, not a sketchy impersonator..
Customer satisfaction rankings
Based on NerdWallet evaluation of satisfaction scores on a number of buyer overview web sites, it’s unclear whether or not QuestMortgage supplies a passable expertise for many prospects.
- QuestMortgage doesn’t have a Trustpilot ranking, however its dad or mum firm, Questrade is rated 1.3 out of 5 doable stars based mostly on greater than 180 buyer critiques as of July 2023.
- Questrade had 1 out of a doable 5 stars on the Better Business Bureau web site as of July 2023, however that ranking relies on solely 5 critiques. Questrade is just not accredited by the BBB itself.
You can attain a QuestMortgage mortgage advisor on-line by way of the chat possibility Monday to Friday from 8 a.m. to eight p.m. ET and Saturday from 9 a.m. to five p.m. ET. You can even attain them throughout the identical hours by way of cellphone at 1-888-909-5588. Another possibility is to ship an e-mail to [email protected].
QuestMortgage eligibility necessities
To be eligible for a mortgage with QuestMortgage, you’ll want to fulfill sure eligibility necessities:
- You should be a Canadian resident (excluding Quebec).
- The property should be in Canada (excluding properties in Quebec or any Canadian Territory).
- You should meet minimal credit score rating necessities (QuestMortgage doesn’t disclose this quantity).
Other typical mortgage necessities embrace:
- Income that helps the quantity you wish to borrow. You might have to show this utilizing a letter out of your employer, tax returns or different strategies.
- Minimum down cost of 5% for properties that cost lower than $500,000; 5% of the primary $500,000 and 10% of the quantity above $500,000 for properties priced between $500,000 and $999,999; or 20% for properties priced at $1,000,000 or extra.
- Monthly housing prices of lower than 39% of family revenue. This class consists of mortgage funds, property taxes and utilities.
- Total debt load of lower than 44% of your family revenue. This consists of your month-to-month housing prices plus any funds on bank cards, automotive loans, scholar loans or different debt.
Nerdy Tip: Use a mortgage affordability calculator to find out how a lot you may afford to pay for a home. If you will have a singular scenario or want extra details about the eligibility necessities, it’s greatest to talk straight with a mortgage specialist.
How to use for a mortgage with QuestMortgage
You can apply for a mortgage on the QuestMortgage web site. Here’s how one can do it:
Finding the appliance
Initial steps
Filling out your mortgage utility
Once you attain the QuestMortgage webpage, scroll down to search out the “Purchase a home” graphic and click on “Get Started.”
The solely strategy to transfer ahead with an utility is to reply “yes” to the next query you’re offered. If you reply “no” you’ll be taken to an affordability calculator.
Answer just a few fast questions relating to:
- The deadline of your home buy.
- The buy worth.
- Your down cost financial savings.
You’ll be offered a personalised mortgage charge. Click “Continue” in case you’re glad with the speed and wish to proceed.
Provide a bit of extra data, together with:
- Whether the property is residential or industrial.
- The property’s location.
- Whether you’re the age of majority in your province.
- Your citizenship standing and the place you at present reside.
Once you create or log in to your QuestMortgage account the appliance course of really begins. It ought to take about 35 minutes to finish.
Verify your id by offering your private data and consenting to a gentle credit score verify. This is not going to have an effect on your credit score rating.
Once your id has been verified, you’ll have the choice of including different candidates or a guarantor to your mortgage utility.
You’ll then have the choice of carrying on along with your utility your self or tagging in a QuestMortgage Advisor to achieve out and take you the remainder of the best way.
If you select to fill out your utility, you’ll then present particulars concerning the property, together with:
- The deal with.
- The dimension and property kind.
- The heating kind.
- The estimated property taxes and heating prices.
- Whether the home shall be your main residence or a rental property.
You’ll even have to substantiate the supply of your down cost and whether or not your provide features a financing situation.
The subsequent step is fairly concerned. You’ll have to supply data relating to:
- Your present housing and residing conditions.
- Your employment and revenue.
- Your belongings, liabilities and bills.
Answer just a few questions to assist Quest create a personalized mortgage product for you.
That’s so far as we have been in a position to get with our on-line utility. Upon seeing this message, we have been instantly despatched an e-mail from a Quest Mortgage Advisor providing additional help.
Alternatives to QuestMortgage
| Home Trust | RBC Mortgage | First National Financial | |
| Lender kind | Trust firm | Big Bank lender | Non-bank lender |
| Service space | National | National | National |
| In-person service? | Yes | Yes | Yes |
| Ease of utility | Easy (on-line, cellphone, in-person) | Easy (on-line, cellphone, in-person) | Difficult (on-line, cellphone, in-person) |
| Mortgage selection | Average | Average | Above common |
QuestMortgage is just not a financial institution. QuestMortgage is a service supplied by a monetary establishment often called Community Trust Company, which is a subsidiary of Questrade Financial Group. According to its web site, CTC is regulated by the Office of the Superintendent of Financial Institutions and a member of the Canada Deposit Insurance Corporation.
Questrade is just not a mortgage dealer. QuestMortgage, a subsidiary of the identical monetary group as Questrade, is a direct-to-consumer mortgage lender.
Selecting the precise mortgage supplier is an enormous choice. A mortgage is a big debt, and also you wish to just be sure you’re getting the most effective deal doable. You’ll want to perform a little research, make a listing of what’s vital to you, and spend some evaluating provides from the various kinds of suppliers. You can begin by following these steps:
- Decide your funds: It’s vital to have an concept of how a lot mortgage you may comfortably afford earlier than speaking with lenders. They might give you greater than you wish to spend; it’s vital to be prepared for that dialog.
- Understand the various kinds of lenders: Mortgage suppliers embrace banks, credit score unions, brokers, different lenders, and personal lenders. Each has its professionals and cons.
- Compare provides from three completely different lenders: To guarantee you will have a good suggestion of what’s on the market, contemplate looking for mortgage pre-approval from an enormous financial institution, a dealer and one different kind of different lender.
- Don’t focus an excessive amount of on charges: The rate of interest is only one a part of the mortgage equation. Yes, you need probably the most aggressive charge doable, but it surely’s additionally vital to weigh the fame of the lender, the standard of customer support they supply, the kinds of loans they provide, the charges they cost, and the pliability of phrases they might provide.
» LEARN MORE: Read our information to selecting a mortgage lender
Like most mortgage brokers and lenders, QuestMortgage lending companions will contemplate the next when estimating what the common cost is perhaps to your future mortgage:
- Home worth: the overall quantity you conform to pay for a home.
- Down cost: the overall quantity you’ll pay upfront towards a home buy.
- Amortization interval: the variety of years over which you’ll repay your mortgage.
- Mortgage time period: the size of the contract you’ll have along with your mortgage lender.
- Payment frequency: how typically you’ll make mortgage funds.
- Mortgage rate of interest: the price you’ll pay to borrow money from the lender; expressed as a proportion of the mortgage quantity.
- Property taxes or title switch price: an annual price based mostly in your property worth.
- Mortgage default insurance coverage: an additional cost you’ll pay in case your down cost is lower than 20%.
Example:
- Home worth: $650,000
- Down cost: $58,500 (9%)
- Amortization interval: 25 years
- Mortgage time period: 5 years
- Payment frequency: Monthly
- Mortgage rate of interest: 5.5%
- Mortgage insurance coverage: $23,660
TOTAL MORTGAGE: $615,150
MONTHLY MORTGAGE PAYMENT: $3,778
START YOUR MORTGAGE JOURNEY
QuestMortgage is just not a financial institution. QuestMortgage is a service supplied by a monetary establishment often called Community Trust Company, which is a subsidiary of Questrade Financial Group. According to its web site, CTC is regulated by the Office of the Superintendent of Financial Institutions and a member of the Canada Deposit Insurance Corporation.
Questrade is just not a mortgage dealer. QuestMortgage, a subsidiary of the identical monetary group as Questrade, is a direct-to-consumer mortgage lender.
Selecting the precise mortgage supplier is an enormous choice. A mortgage is a big debt, and also you wish to just be sure you’re getting the most effective deal doable. You’ll want to perform a little research, make a listing of what’s vital to you, and spend some evaluating provides from the various kinds of suppliers. You can begin by following these steps:
- Decide your funds: It’s vital to have an concept of how a lot mortgage you may comfortably afford earlier than speaking with lenders. They might give you greater than you wish to spend; it’s vital to be prepared for that dialog.
- Understand the various kinds of lenders: Mortgage suppliers embrace banks, credit score unions, brokers, different lenders, and personal lenders. Each has its professionals and cons.
- Compare provides from three completely different lenders: To guarantee you will have a good suggestion of what’s on the market, contemplate looking for mortgage pre-approval from an enormous financial institution, a dealer and one different kind of different lender.
- Don’t focus an excessive amount of on charges: The rate of interest is only one a part of the mortgage equation. Yes, you need probably the most aggressive charge doable, but it surely’s additionally vital to weigh the fame of the lender, the standard of customer support they supply, the kinds of loans they provide, the charges they cost, and the pliability of phrases they might provide.
» LEARN MORE: Read our information to selecting a mortgage lender
Like most mortgage brokers and lenders, QuestMortgage lending companions will contemplate the next when estimating what the common cost is perhaps to your future mortgage:
- Home worth: the overall quantity you conform to pay for a home.
- Down cost: the overall quantity you’ll pay upfront towards a home buy.
- Amortization interval: the variety of years over which you’ll repay your mortgage.
- Mortgage time period: the size of the contract you’ll have along with your mortgage lender.
- Payment frequency: how typically you’ll make mortgage funds.
- Mortgage rate of interest: the price you’ll pay to borrow money from the lender; expressed as a proportion of the mortgage quantity.
- Property taxes or title switch price: an annual price based mostly in your property worth.
- Mortgage default insurance coverage: an additional cost you’ll pay in case your down cost is lower than 20%.
Example:
- Home worth: $650,000
- Down cost: $58,500 (9%)
- Amortization interval: 25 years
- Mortgage time period: 5 years
- Payment frequency: Monthly
- Mortgage rate of interest: 5.5%
- Mortgage insurance coverage: $23,660
TOTAL MORTGAGE: $615,150
MONTHLY MORTGAGE PAYMENT: $3,778
