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Home Trust at a glance
Founded in 1977, Home Trust is a federally regulated lender and caters to Canadians with non-conventional credit backgrounds.
- Home Trust mortgages go up to $2 million.
- It offers purchase or refinance loans for single-family homes, condominiums, apartments and rental properties.
- The Classic Mortgage is designed for those who may not be able to get a loan with a traditional mortgage provider due to shaky credit history or non-traditional income, such as from commissions or self-employment.
- The Equityline Visa credit card acts like a HELOC by letting you borrow against your home’s equity.
- Classic: An alternative mortgage for people who are self-employed or have little credit history or bad credit.
- Accelerator: A prime mortgage for people with good credit.
Pros
- Online application.
- Mortgages available for bad or limited credit history.
Cons
- Does not offer pre-approvals.
- Limited rate and fee information available online.
- Mortgages not available for some housing types, including modular homes and co-ops.
Home Trust mortgage review
Home Trust is a Canadian trust company founded in 1977. It’s a federally regulated lender and caters to Canadians with non-conventional credit backgrounds, such as self-employed individuals or newcomers who have limited credit histories. Home Trust also offers additional services like retail lending and credit cards. The company is headquartered in Toronto and has over 700 employees.
Home Trust offers two main types of mortgages. Its Classic Mortgage is designed for people who might have trouble getting approved by traditional lenders because they are self-employed or earn commissions, or have a history of bad credit due to personal or financial hardship. The company’s Accelerator Mortgage is intended for applicants who have a regular income (whether from traditional or self-employment) and good credit history.
The company works with clients looking for a new home, rental property, condo or apartment, as well as those looking to refinance or renew a loan.
Mortgage terms can be from one to five years, with amortizations up to 30 years. Depending on your financial background and down payment, you could be eligible for a closed or open mortgage with a fixed or variable rate.
Who is Home Trust best for?
Home Trust’s Accelerator Mortgage is best for home buyers with good credit, while the company’s Classic Mortgage is best for home buyers with a history of bad credit.
Home Trust works directly with clients, and you can apply online, by phone or through a mortgage broker. Home Trust mortgages are available in all provinces and territories.
In lieu of a traditional HELOC, Home Trust offers a Home Trust Equityline Visa credit card that you can use to access your home’s equity. However, it’s not available to homeowners in Quebec.
Home Trust feature overview
Variety of mortgages available
Home Trust’s website lists some of its available mortgages online, though it may not be an exhaustive list. The site suggests contacting a broker to see what’s available.
Home Trust advertises:
- Fixed-Rate Mortgages.
- Renewals and refinances.
- Mortgages for self-employed individuals.
- Mortgages for people with bad credit or limited credit history.
- Mortgages for rental properties.
- Mortgages for newcomers to Canada.
- Home equity lines of credit.
Ease of application
Home Trust has an online application, but it doesn’t offer pre-qualification or pre-approval.
- Online pre-qualification: No. Pre-qualifications aren’t available online.
- Online pre-approval: No. Home Trust doesn’t offer pre-approvals.
- Online mortgage application: Yes. Home Trust has an online application.
- In-person option: Unclear. Home Trust has office locations in a few major cities, however its website only lists online applications and a customer service phone line as available application methods.
Mortgage rate transparency
Home Trust has some rate information on its website.
- Posted rates: Home Trust lists a few posted rates online, though it states others may be available if you contact a mortgage broker.
- Special rates: No. Home Trust doesn’t post discounted rates online.
- APR: No. Home Trust’s rates don’t have annual percentage rates listed.
Other details
Increase your payments: You can increase your standard payment by up to 20%, though this feature is not available with all mortgages.
Make lump-sum payments: In addition to making your regular mortgage payment, you can pay up to 20% of your principal up to once per year.
Range of terms: One to five years.
Programs for newcomers: Newcomers to Canada with limited credit history may be able to get a mortgage with Home Trust.
Payment frequency: Mortgage payment options include bi-weekly and accelerated bi-weekly.
Estimate your monthly mortgage payment.
Use our mortgage payment calculator to compare different borrowing scenarios.
Customer satisfaction ratings
Based on NerdWallet analysis of satisfaction scores on several customer review websites, it’s unlikely that Home Trust typically provides a satisfactory experience for most mortgage customers. Keep in mind that reviews on these sites aren’t verified and may not accurately reflect the average opinion of Home Trust customers; for example, unhappy customers may be overrepresented. Nevertheless, these sites are one way to learn about possible downsides to consider.
- Home Trust had a Trustpilot rating of 2.2 out of 5 possible stars based on more than 30 customer reviews, at the time of this writing.
- Home Trust had 1.88 out of a possible 5 stars on the Better Business Bureau website, according to just eight customer reviews, at the time of this writing. Home Trust is not accredited by the BBB itself.
You can reach out to Home Trust customer service via phone or email.
Home Trust eligibility requirements
Qualifications for a Home Trust mortgage differ based on whether you’re applying for a Classic or Accelerator Mortgage. In general, you’ll need to meet these eligibility requirements:
- Minimum credit score: Typically 640 for an Accelerator Mortgage. For a Classic Mortgage, there is no minimum score required.
- Credit history: Established accounts in good standing, with good credit for an Accelerator Mortgage. The credit history requirements for a Classic Mortgage are much more flexible, even if you have bad credit.
- Income: Varies based on the type of mortgage, type of income and other criteria.
- Down payment amount: At least 5% for an Accelerator Mortgage. Classic Mortgages require a down payment of at least 20% of the purchase price.
- Debt service ratios: Varies depending on the type of mortgage but, in general, for an Accelerator Mortgage, your gross debt service ratio (GDS) must not exceed 39% and your total debt service ratio (TDS) must not exceed 44%. For a Classic Mortgage the GDS/TDS is listed as “flexible”.
- Type of employment and employment history: Varies. For example, to qualify for an Accelerator Mortgage as a self-employed borrower, you must demonstrate at least two years of self-employment income.
Nerdy Tip: Use a mortgage affordability calculator to determine how much you can afford to pay for a home. If you have a unique situation or need additional information about the eligibility requirements, it’s best to speak directly with a mortgage specialist.
How to apply for a mortgage with Home Trust
Unlike many alternative lenders, Home Trust allows you to apply directly for a mortgage online. Here’s how to do it.
Navigate to the Home Trust website and click on “Financing A Home.” On the next page, you’ll be able to start the application process by clicking the “Apply now” button.
Once you’ve set up a Home Trust client account, you’ll be asked a series of questions about the home hope to buy, including the:
- Purchase price.
- Address.
- Closing date.
Provide details about the property you’re purchasing. These questions get very specific, so prepare to provide information regarding the home’s:
- Square footage.
- Garage size.
- Heating and sewage type.
- Annual property taxes. monthly maintenance fees and heating and electricity costs.
- Insurance and management fees.
- Occupancy type and whether the property will generate any rental income.
Update the personal information for anyone who will be taking part in the application, including:
- First-time home buyer status.
- Marital status and whether you have any dependents.
- Address, Social Insurance Number and language preference.
- Your current residence (and other places you’ve lived if you haven’t been in your home very long).
Enter financial information about yourself and anyone else applying for the mortgage with you, including:
- Employment and income.
- Assets.
- Liabilities.
- Other properties you own.
Confirm the details of your application, consent to a credit check and you’re all done.
Alternatives to Home Trust
Home Trust is just one of many Canadian mortgage lenders. If the product you need isn’t available at Home Trust, you can check Big Six banks, credit unions and B lenders.
You can also consider reaching out to a mortgage broker and asking for help in finding a better deal on your home loan.
| True North Mortgage | RBC Mortgage | First National Financial | |
|---|---|---|---|
| Lender type | Mortgage brokerage | Big Bank lender | Non-bank lender |
| Service area | National | National | National |
| In-person service? | Yes | Yes | Yes |
| Ease of application | Easy (online, phone, in-person) | Easy (online, phone, in-person) | Difficult (online, phone, in-person) |
| Mortgage variety | Above average | Average | Above average |
Frequently asked questions about Home Trust
Selecting the right mortgage provider is a big decision. A mortgage is a large debt, and you want to make sure that you’re getting the best deal possible. You’ll need to do some research, make a list of what’s important to you, and spend some comparing offers from the different types of providers. You can start by following these steps:
- Decide your budget: It’s important to have an idea of how much mortgage you can comfortably afford before talking with lenders. They may offer you more than you want to spend; it’s important to be ready for that conversation.
- Understand the different types of lenders: Mortgage providers include banks, credit unions, brokers, alternative lenders, and private lenders. Each has its pros and cons.
- Compare offers from three different lenders: To ensure you have a good idea of what’s out there, consider seeking mortgage pre-approval from a big bank, a broker and one other type of alternative lender.
- Don’t focus too much on rates: The interest rate is just one part of the mortgage equation. Yes, you want the most competitive rate possible, but it’s also important to weigh the reputation of the lender, the quality of customer service they provide, the types of loans they offer, the fees they charge, and the flexibility of terms they may offer.
» LEARN MORE: Read our guide to choosing a mortgage lender
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