Frequently asked questions – Mortgages

Mailing Address: Home Trust Company, 2500-145 King Street West, Toronto Ontario M5H 1J8

Mortgage Customer Service: 1-855-270-3630. Agents are available Monday to Friday from 8:00am to 10:00pm and Saturday from 9:00am to 5:00pm ET.

Customer Care Fax: 416-360-0745

Mortgage Discharge Fax: 416-360-7629

Email address: inquiry.htc@hometrust.ca

Yes, Home Digital is our online portal that allows you to access your mortgage at any time and from any device. Sign up in four easy steps by visiting https://digitalbanking.hometrust.ca.

With a fixed rate mortgage, your interest rate does not change for the duration of the mortgage.

A mortgage with a variable interest rate that changes over the term of the loan based on changes to the prime interest rate set by the Bank of Canada. With a variable rate mortgage, the payment amount remains the same, while the portion of the payment that goes toward principal and interest may change. If the interest rate increases, the amount applied to the principal will decrease. If the interest rate decreases, the amount applied to the principal will increase. This could result in an increase or decrease in the remaining amortization of the mortgage.

• Single-family homes
• Condominiums
• Duplexes
• Triplexes
• Store and apartment
• Rental properties

We do not offer mortgages for:

• Mobile homes
• Modular homes
• Leasehold homes
• Condo corporations
• Co-op housing
• Student housing

You may be eligible for a mortgage. To determine your eligibility, we require an application which can be completed online here or by contacting Home Trust’s Mortgage Customer Service at 1-855-270-3630, Monday to Friday from 8:00am to 10:00pm and Saturday from 9:00am to 5:00pm ET. Home Trust reviews and assesses each application on its own merits.

You may be eligible for a mortgage. There are many factors beyond your credit score that will be considered when applying for a mortgage.

Home Trust specializes in mortgages for business-for-self applicants. To determine your eligibility, you can complete an application online here or by contacting Home Trust’s Mortgage Customer Service at 1-855-270-3630, Monday to Friday from 8:00am to 10:00pm and Saturday from 9:00am to 5:00pm ET.

To apply for a Home Trust mortgage, you will need to do one of the following:

1. Speak to a mortgage broker.
2. Complete an online application by visiting here.
3. Contact Mortgage Customer Service at 1-855-270-3630, Monday to Friday from 8:00am to 10:00pm and Saturday from 9:00am to 5:00pm ET. One of our knowledgeable agents will be happy to complete the application and answer any questions you may have.

Currently, Home Trust does not offer pre-approved mortgages.

The Home Buyer’s Plan (HBP) is a Government of Canada program that lets you withdraw from your registered retirement savings plans (RRSPs) to buy or build a qualifying home.

A home inspection is an evaluation of a home’s condition. You and your real estate agent may request an inspection for your purposes, but Home Trust does not require one.

For a Classic mortgage, you must have a minimum of 20% of the purchase price as a down payment. The down payment cannot be financed by a private mortgage. Mortgages with a down payment of less than 20% require mortgage insurance through either the CMHC, Sagen or Canada Guaranty.

Home Trust does not offer mortgage pre-approvals. The amount you can borrow will depend on a number of factors, including the value of the property you want to purchase. You may wish to use an online mortgage calculator to determine the approximate amount you can afford, or to speak to a mortgage broker.

You can use gifted funds, provided they are from an immediate family member, are non-repayable, and are properly documented. A completed and signed Down Payment Gift Letter Form must accompany gifted funds.

• Appraisal Fee: Home Trust requires an appraisal on all properties. This fee, paid by you, covers the property valuation performed by a third-party appraiser. The fee is dependent on the appraiser. Home Trust partners with specific appraisers in each province.
• Lawyer’s Fee and Disbursements: Your legal fees should be negotiated up front with your lawyer so you can better determine your cash requirements.
• Land Transfer Tax: A tax paid to the province by the purchaser when a transaction closes. Typically, it is based on the amount paid for the property. Some municipalities may also apply an additional land transfer tax.
• Home Insurance: As the mortgagor, you are responsible for arranging home insurance for the full replacement value before the mortgage is funded. The cost of the insurance will vary based on property value, municipality, and insurance provider.
• Land Survey: A survey of the property, by an accredited land surveyor, is not always required. This will establish whether the building is located within the specified legal boundaries and complies with local building bylaws. When purchasing a resale home, ask the present owner if a survey is available, or include this condition in your offer to purchase.
• Closing Adjustments: You should also consider any necessary adjustments to be made between you and the seller for property taxes, insurance and utilities. Your lawyer will help you with this calculation.

We are here to help. Please contact Mortgage Customer Service at 1-855-270-3630 Monday to Friday from 8:00am to 10:00pm and Saturday from 9:00am to 5:00pm ET, and an agent will be happy to help. Please ensure you have your mortgage number and alternate payment date available.

We all want to be mortgage-free faster! You are eligible to pay 20% of the original principal borrowed. Depending on the type of mortgage you have, there may be restrictions on when we can accept lump-sum payments. We encourage you to contact Mortgage Customer Service at 1-855-270-3630 Monday to Friday from 8:00am to 10:00pm and Saturday from 9:00am to 5:00pm ET to discuss the process.

A lump-sum payment can be made in two easy steps:

1. Contact Mortgage Customer Service at 1-855-270-3630 to determine eligible amounts and dates when we can accept lump-sum payments for your mortgage.
2. Deliver certified funds (draft or certified cheque) made payable to “Home Trust Company” for the amount you wish to pay. The draft or cheque must include your full name, mortgage address and mortgage number, and must be accompanied by a signed Letter of Direction, which includes the following information:

• Date
• Amount being paid
• Mortgage number
• Property address
• Signature of all mortgage holders
• Source of funds

The cheque and Letter of Direction can be mailed to:
Home Trust Company
2500-145 King Street West
Toronto, Ontario
M5H 1J8

Home Trust is here to help. To request a skip payment (payment deferral), please submit a signed Letter of Direction and any supporting documentation to explain the reason for your request. All mortgage holders must sign the letter. Your request will be subject to review and approval.

If you cannot make your scheduled mortgage payment due to extenuating circumstances, you may request a skip payment or payment deferral. Home Trust will add the deferred payment(s) to your principal balance at maturity.  Please note that deferred payments continue to accrue interest during the term of the mortgage.

Home Trust offers bi-weekly and accelerated bi-weekly mortgage payments, subject to approval. Accelerated bi-weekly payments allow you to increase the bi-weekly payment amount, which is automatically allocated to the mortgage principal.

Home Trust offers ways to be mortgage-free faster. Depending on the type of mortgage you have, you can make privileged (lump-sum) payments, increase the principal and interest component of your mortgage payment up to 20% and choose bi-weekly or accelerated bi-weekly payment frequency. Please contact Mortgage Customer Service at 1-855-270-3630 Monday to Friday from 8:00am to 10:00pm and Saturday from 9:00am to 5:00pm ET to discuss the options available to you.

If you have an Accelerator mortgage, you can increase the principal and interest component of your mortgage payment up to 20% from the Interest Adjustment Date (IAD) of one year to the Interest Adjustment Date (IAD)  of the next year.

For Classic mortgages, you will need to wait until the end of the mortgage term to change mortgage payment.

Please forward a VOID personal, pre-printed cheque or a pre-authorized debit form that has been issued and stamped by your bank. For commercial mortgages, we require a pre-printed business cheque in the name of the business. Our fax number is 416-360-0745 or email: inquiry.htc@hometrust.ca.

An annual mortgage statement is a snapshot of your mortgage as of December 31.

An annual mortgage statement provides:

• Outstanding balance on January 1 and December 31 of the statement year
• Interest rate
• Maturity date
• Payment frequency
• Principal and interest component of mortgage payment
• Property tax component of mortgage payment
• Life insurance component of mortgage payment (if applicable)
• Total mortgage payment
• Mortgage summary, which includes principal paid, interest paid and fees
• Summary of Property Tax account (if Home Trust is responsible for paying property tax): tax balance as of December 31^st of the previous year, payments received during the current year, taxes paid during the current year and interest and adjustments.
• Life insurance summary (if applicable)

Year-end statements are mailed by the end of January for the previous year. If you have not received your statement or misplaced it, please contact Mortgage Customer Service at 1-855-270-3630 Monday to Friday from 8:00am to 10:00pm and Saturday from 9:00am to 5:00pm ET to request a copy.

To request an information statement, please contact Mortgage Customer Service at 1-855-270-3630 Monday to Friday from 8:00am to 10:00pm and Saturday from 9:00am to 5:00pm ET, and an agent will be happy to help. Kindly be advised fees will apply, and it could take up to two business days to receive the statement.

Please forward a copy of your tax bill to the Property Tax department via fax to 416-777-5850 or email: taxdept@hometrust.ca. Please be sure to include your full name and mortgage number.

Please forward a signed Letter of Direction with your request. All mortgage holders must sign the letter, and it can be faxed to 416-777-5850 or emailed to: taxdept@hometrust.ca. Please be sure to include your full name and mortgage number. Your request is subject to review and approval.

Home Trust offers monthly, bi-weekly and accelerated bi-weekly payment frequency. You have the option to change from one to the other, subject to approval. To request a payment frequency change, please complete the Payment Change Request Form and email it to inquiry.htc@hometrust.ca or fax to Customer Care 416-360-0745.

If you prefer, please contact Mortgage Customer Service at 1-855-270-3630 Monday to Friday from 8:00am to 10:00pm and Saturday from 9:00am to 5:00pm ET, and an agent will be happy to help.

If you qualify for a property tax grant, please email taxdept@hometrust.ca to provide the details of the grant and include your name, mortgage property address and mortgage number in your email.

The credit balance in your tax account is allocated to pay the following year’s taxes; therefore, we cannot provide a refund.

If your tax account balance shows a deficit (minus), please contact Mortgage Customer Service at 1-855-270-3630 Monday to Friday from 8:00am to 10:00pm and Saturday from 9:00am to 5:00pm ET to speak with a tax specialist who will provide options for re-payment. This can include:

• A lump-sum payment to clear the deficit
• An increase in the tax component of your mortgage payment until the deficit is clear

Renewal offers are sent via regular mail, typically 45 days prior to your maturity date. It will outline the rates and terms Home Trust is prepared to offer. The name and contact information of your dedicated renewal specialist will be included in your documentation. Please do not hesitate to contact them if you have any questions or concerns.

If you are renovating your home and want to use the equity in your home to fund the project, there are two ways to do it:

• Refinance your existing mortgage: This means you will be breaking your existing mortgage for access the funds you require. Home Trust can finance up to 80% of the value of your property, less any existing mortgages. The advantage of doing this is that you will amortize the new amount over a minimum of 25 years, and you will only have one mortgage payment. The disadvantage is you may incur a penalty to break your existing mortgage. Most of the time, Home Trust will reimburse you some or all of the penalty based on the internal refinance
• Use your Equityline^® Visa (ELV): An ELV is a credit card where the credit limit is secured by the equity in your home. We can finance up to 80% of the value of your property, less any existing mortgages. The advantage of an ELV is that there are no penalties incurred as you are not required to refinance your existing mortgage. It is a revolving credit facility, which means as you pay it down, it will be available to you as long as you own your home. The monthly Minimum Payment is $10.00 + Interest and Fees posted on your monthly statement. If your balance is less than $10.00 then the full balance is the Minimum Payment. To apply for an ELV, you will need to complete an application here

To switch your mortgage to Home Trust, you will need to contact your mortgage broker or complete a mortgage application by visiting here.

Once approved, an underwriter will request the necessary documentation from you and set up an interview with a mortgage officer. You will also be required to obtain an appraisal from one of our approved appraisers. You will be responsible for the cost of the appraisal. Once all documentation is in order and the interview is complete, we will send a request for discharge to your current mortgage company. They will prepare the discharge statement and send it to us. On the day of closing, Home Trust will forward funds to your lender and register on the title in the first position.

The ideal time to switch your mortgage to Home Trust is when it comes up for maturity. By doing this, you will not incur any penalties to break your mortgage.

Sometimes, clients choose to switch their mortgage before their maturity date. Some lenders have restrictions on this, so it is best to speak with your lender before completing the application. If they allow you to switch before the maturity date, you may incur penalties and fees to discharge the mortgage.

For Classic mortgages, you will be required to pay a 1% commitment fee on the amount of the mortgage. This is taken directly from the advance. Other costs to consider are the appraisal cost, lawyer fees and disbursements, land transfer tax, fire insurance, land survey fees and closing adjustments.

The cost to switch your mortgage to Home Trust depends on your current lender, the type of mortgage and the length you have left in your term. It is best to contact your current lender BEFORE beginning the process to switch to Home Trust so that you are aware of any costs involved.

To request a discharge (payout) statement, we require a signed, formal request indicating the intended payout date and where the statement should be sent. All mortgage holders must sign this request. Mortgage information statements, year-end statements and amortization schedules cannot be used as discharge statements.

If a solicitor is acting on your behalf, they will request the discharge statement.

Discharge (payout) requests can be faxed directly to the Mortgage Discharge Department at 416-360-7629 or emailed to inquiry.htc@hometrust.ca

Once a mortgage is paid in full, final discharge documents are generated and sent to you or your solicitor within 45-60 business days.

Once you sell your home, you will be required to pay off your mortgage and any other mortgages secured by the property. This includes your Equityline^® Visa (if applicable).

When there is a bona fide sale, a request for a payout statement should be submitted should be provided at least 30 days prior to your closing date. Normally, this is requested by your solicitor. Once the request is received, we prepare a payout statement outlining all the amounts owing and fees to be paid on the day of closing. The payout statement will also include a “per diem” or per day interest that is charged just in case the funds do not arrive on the day of closing. You will be required to pay this amount for each day that funds are not received in full.

On the day of closing, your solicitor will prepare a cheque for the amount owing and send it to Home Trust. Home Trust will then apply the funds to your mortgage balance. Once the balance is nil, we will prepare final discharge documents releasing our interest in your property. Final discharge documents are sent to your solicitor within 60 days of the payout date.

Mortgagors who sell their home incur a penalty based on the early payout, but if you purchase another home and qualify for financing with Home Trust, you may be eligible to have all or a portion of the penalty reimbursed. Eligibility depends on the amount of the new mortgage loan and whether the sale closing and the purchase closing occurred within 120 days of each other.

The following companies offer mortgage default insurance:

• Canada Mortgage and Housing Corporation (CMHC)
• Sagen (formerly Genworth Financial)
• Canada Guaranty

Mortgage default insurance ranges between 2.80% to 4.00% of the mortgage amount.

An Equityline^® Visa is a credit card where the credit limit is secured by the equity in your home. It can provide you with easy and convenient access to credit without having to refinance your current mortgage. More information on Equityline Visa, including its features and benefits, can be found here.

To apply for an Equityline^® Visa, we require a completed application. Please visit here. We will finance up to 80% of the value of your property, less any existing mortgages.

A one-time commitment fee of 2% of the approved limit applies and is taken immediately upon advance. We will perform a title search for a fee of $35.00.