Mortgage 101: Your Essential Guide with Steven Murdoch
Everything you need to know to make an educated home-buying decision.
Buying a home is likely the largest financial commitment you’ll ever make. My goal is to ensure you move forward with unbiased professional advice and the confidence that comes from having a seasoned expert in your corner.
Why Choose Steven Murdoch Over a Bank?
There are generally two ways to get a mortgage in Canada: from a single bank or from a licensed mortgage professional like myself.
- The Bank: A bank only offers the products from their own institution. It’s a “one-size-fits-all” approach.
- The Steven Murdoch Advantage: Through the Dominion Lending Centres (DLC) network, I have access to Canada’s largest banks, credit unions, and trust companies. I shop hundreds of products simultaneously to find the one that fits your
- The Volume Benefit: DLC funded over $84 billion in mortgages in 2025 alone. Because of this massive volume, I can negotiate “wholesale” rates that the general public simply cannot access. Simply put: the more volume we do, the lower the rates you get.
How much does this cost?
From our first consultation to the final signing, my services are free.
I am compensated by the lender based on the volume I send them and the length of your term—not on your interest rate. In fact, I don’t get paid until your mortgage successfully funds. This ensures my goals are perfectly aligned with yours: getting you the best product at the best rate.
Understanding Mortgage Types
Conventional Mortgages
A mortgage is considered “conventional” when your down payment is 20% or more of the purchase price (or when the loan is 80% or less of the property value). These loans do not require default insurance.
High-Ratio Mortgages (Insured)
If your down payment is less than 20%, your mortgage must be insured by one of Canada’s three insurers: CMHC, Sagen, or Canada Guaranty.
- The Purpose: This insurance protects the lender in case of default.
- The Cost: The premium is added to your mortgage balance and is based on your loan-to-value ratio.
- The Perk: Insured mortgages often qualify for the absolute lowest interest rates available.
The Borrowed Down Payment
Don’t have the full 5% saved? I have access to specialized programs where you can borrow your down payment from a loan or line of credit.
- Note: A minimum credit score of 650 is required for this path.
Fixed vs. Variable vs. Adjustable
Rate Type | How it Works | Key Benefit |
Fixed | Locked in for the full term (e.g., 5 years). Based on Bond Markets. | Certainty. Your payment and rate never change. |
Variable | Based on the Bank of Canada Prime Rate. | Historical Savings. Often lower than fixed rates over time. |
Adjustable | Like variable, but your payment fluctuates immediately when Prime changes. | Principal Control. You always pay off the house at the same pace. |
Closed vs. Open Mortgages
There are generally two ways to get a mortgage in Canada: from a single bank or from a licensed mortgage professional like myself.
- The Bank: A bank only offers the products from their own institution. It’s a “one-size-fits-all” approach.
- The Steven Murdoch Advantage: Through the Dominion Lending Centres (DLC) network, I have access to Canada’s largest banks, credit unions, and trust companies. I shop hundreds of products simultaneously to find the one that fits your
- The Volume Benefit: DLC funded over $84 billion in mortgages in 2025 alone. Because of this massive volume, I can negotiate “wholesale” rates that the general public simply cannot access. Simply put: the more volume we do, the lower the rates you get.
How much does this cost?
From our first consultation to the final signing, my services are free.
I am compensated by the lender based on the volume I send them and the length of your term—not on your interest rate. In fact, I don’t get paid until your mortgage successfully funds. This ensures my goals are perfectly aligned with yours: getting you the best product at the best rate.
Amortization & Payment Schedules
Amortization is the total years it takes to pay off the debt (typically 25 or 30 years).
Payment Frequency is how often you pay. Choosing Accelerated Bi-Weekly is one of the smartest moves you can make.
- Regular Bi-Weekly: (Monthly payment x 12) / 26.
- Accelerated Bi-Weekly: (Monthly payment / 2). Because there are 26 pay periods, you essentially make one “extra” monthly payment every year, shaving years off your mortgage
Steven’s Pro-Tip: The "Mortgage Stress Test"
Even if you find a great rate at 4%, the government requires us to “stress test” your application at a higher rate (usually 2% higher or a floor rate set by the government). This ensures that if rates rise in the future, you can still afford your home. I’ll help you navigate these numbers during our first call.
