What you need to know for your 2026 Mortgage Renewal, Frequently Asked Questions:

✅ Question 1: Is the mortgage a Standard or Collateral charge?

If you’re unsure, there are a few ways to validate how the mortgage is registered:

• Review the original mortgage documentation

• Pull a Purview report to determine if a global limit exists beyond the original mortgage amount

• Confirm whether there is a HELOC attached

• Pull a copy of the registered charge

As Mortgage Brokers, We have access to FCT’s Broker Portal, where we can access a tool that generates a report confirming how the mortgage is registered (We pay for the fees associated with underwriting your deal).

✅ Question 2: Does the deal meet insurable criteria?

• The property value must have been under $1M at the time of the last registration, even if the value is higher you can still qualify under the insured & insurable programs.

• This can be validated using:

• The appraisal from the previous transaction, or

• The purchase and sale agreement if the prior transaction was purchase-based.

• If the property value exceeded $1M at last registration but is now under $1M, the deal may be considered on exception:

• An appraisal may be required, and both lenders and the insurers must be comfortable relying on the current market value.

• The amortization must be 25 years or less. If the am is over 25 years, you can request to scale it down to meet the insurable requirements as well.

✅ Question 3: Can the client qualify at the Contract Rate, or is the Stress Test required?

• If the deal is existing default insured, the insurance premium can be ported, allowing the client to qualify at the contract rate.

• If the deal is insurable, qualifying at the contract rate becomes more nuanced. All the following conditions must be met:

1. The existing lender must be a Federally Regulated Financial Institution (i.e., a bank). Feel free to reach out to me if you need the FRFI list

2. The mortgage must be fully amortized, with no HELOC or revolving components attached.

3. The amortization cannot be extended as part of the transfer.

If any of the above conditions are not met, the client will be required to qualify under the Stress Test.

✅ Question 4: Can the amortization be extended?

• For a standard charge mortgage, the remaining amortization must be calculated as the original amortization minus actual time elapsed.

• Example: A 25-year amortization with 5 years elapsed results in a 20-year remaining amortization.

• If the client has accelerated payments and the effective amortization is now 18 years, it may be brought back up to 20 years, as this reflects actual time elapsed rather than accelerated paydown.

• If the mortgage is registered as a collateral single-charge and meets insurable criteria, the amortization can be re-extended to 25 years while maintaining insurable pricing.

• If the deal includes a first and second charge, the mortgages can be merged, and a blended amortization calculated to determine the new remaining amortization.

Cash-flow driven strategy:

• A standard charge can be transferred under our New Lender's collateral transfer program to re-extend the amortization up to 30 years.

• This would be done at uninsurable (conventional) pricing, and the mortgage must be conventional, with no existing default insurance currently in place.

✅ Question 5: How do you add or remove a Covenant with a Transfers?

• Depending on the relationship, it may be possible to add or remove a party from title while maintaining insured or insurable pricing, provided the deal meets the previously outlined guidelines.

• Regardless of whether the existing mortgage is a standard or collateral charge, these scenarios are processed as a collateral transfer.

Common examples include:

1. Removing parents who were acting as co-signers

2. Adding a spouse or common-law partner to title

3. FCT will engage a third-party solicitor at a minimal cost to complete the title adjustment and review any land transfer tax implications. This cost can be capitalized within the $3k allotment if there is room

4. Important limitation: A spouse cannot be removed from title in the case of a matrimonial dissolution.

5. In these situations, the transaction would need to be completed either as a spousal buyout purchase, where one party is buying the other off title, or as a refinance.

6. In both cases, a finalized separation agreement must be in place prior to proceeding.

✅ Question 6: How do we mitigate the costs associated with a Transfer?

Our lenders have best costs and strongest transfer programs in the market, particularly when it comes to reducing friction and minimizing our client out-of-pocket costs.

Here’s how we close your deal faster:

• Virtual signing through FCT. This option is provided for clients that are computer savvy and is quicker then waiting for an in person visit

• Automatic $10,000 buffer added to allow clients to sign prior to receiving the final payout statement. We adjust to the actual balance once the payout amount is then received. We simply do this to place the meeting with FCT prior to the alternative of meeting after the payout is received which is generally just before closing.

From a cost perspective:

• Standard transfers: Lenders generally fully covers the transaction cost

• Collateral transfers: Costs can be handled in one of three ways:

1. Client pays directly

2. Capitalized within the $3,000 allotment

3. Most popular: We payout of our pocket to help you complete the transfer.

• $250 is always added to the payout funds sent to the existing lender to help offset discharge-related fees

• If a title adjustment is required, the cost of the third-party solicitor can also be capitalized within the $3,000 allotment, keeping the client out of pocket

We also offer multiple tools within our underwriting to help offset your costs.

• Automated Value Method appraisals

• Post-funding appraisal rebates on insured and insurable transactions

• Minimum $200,000 mortgage is required for the appraisal rebate even though our mortgage lenders will accept a minimum of $50,000 outstanding mortgage balance.

• Rebates on the appraisal post funding are up to $400, tiered by mortgage amount

💡 Pro Tip: How to vary the offering and add value

In today’s market, a lot of our clients are seeing available equity has been reduced, clients remain high ratio, or debt restructuring simply isn’t an option. Some of our lenders even offer Cash Back Mortgages as a way to vary the offering and still create meaningful value:

• 1%, 2%, or 3% cash back built directly into the rate

• 5% cash back available on conventional deals up to 80% LTV

This can be used to:

• Help pay down existing debts, and/or

• Offset a prepayment penalty when the mortgage is not yet at maturity

✅ Question 7: What if the current lenders Standard Charge Terms don’t allow for Transfers?

• We can circumvent this by doing the deal as a collateral transfer where we can physically discharge and re-register the mortgage. Though the banks won't tell you this to restrict your mortgage transfer options, many mortgages from the banks are setup as a collateral charge under the perception that you can apply for additional credit, however it's more costly to remove the charge and register it again - But you still save more than you would with the bank, and who wants that sneaky approach to hold your equity hostage.