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QuestMortgage at a glance
Launched in 2022, QuestMortgage is an online-only lender offering mortgages directly to consumers.
- Launched in 2022.
- Offered by the same financial institution behind the popular self-investing platform, Questrade.
- Apply and get pre-approved for a mortgage online, at anytime.
- Generous fee-free prepayment options to help you pay down your mortgage quicker.
- Fixed-rate mortgages (purchase and refinance).
- Variable-rate mortgages (purchase and refinance).
- Cash-back mortgages.
Pros
- Posted mortgage rates are typically lower than those from the Big Six banks.
- Convenient online application process with phone or chat support if needed.
- Prepayment options can help you save on interest over the term of your mortgage.
Cons
- Not available for properties in Quebec, Northwest Territories, the Yukon and Nunavut.
- No physical branch locations.
- Loan offers appear to be limited to offer second mortgages or specialty loans.
QuestMortgage review
QuestMortgage is not a financial institution; it’s a direct lender powered by Community Trust Company[1]. If the name sounds familiar, that’s because QuestMortgage is part of Questrade Financial Group, the same people behind Questrade, one of the more popular online brokerage platforms in Canada.
Although Questrade was founded in 1999, it didn’t begin offering mortgages until early 2022. QuestMortage aims to stand out in a crowded field by simplifying the application process, removing in-person meetings and offering competitive interest rates.
QuestMortgage offers fixed- and variable-rate closed mortgages. If you’re willing to pay a slightly higher interest rate, you can also earn up to $5,000 in cash back when you get an eligible fixed or variable QuestMortgage.
Whether you’re looking for your first mortgage or you want to refinance, QuestMortgage is worth considering due to its convenience, simplicity and competitive rates.
Who is QuestMortgage best for?
QuestMortgage may be a good choice for home buyers or refinancers with a strong credit score who want the convenience of a digital application experience.
QuestMortgage offers a typical but limited selection of mortgage types designed to serve prime borrowers — aka those who can meet the stricter qualifications of federally regulated lenders and the mortgage stress test. Also, because QuestMortgage is a direct-to-consumer, online-only lender, borrowers will need to be comfortable communicating with a mortgage advisor online or over the phone — with no ability to visit a branch in person.
QuestMortgage feature overview
Mortgage variety
QuestMortgage is a relatively new home loan provider in Canada. It’s a part of the Questrade Financial Group, which is mostly known for its trading platform Questrade.
With QuestMortgage, you have the choice between fixed and variable closed mortgages, with terms of up to 10 years. The company does not offer open mortgages as of July 2023, and its website does not readily offer details of other types of loans, such as convertible mortgages, construction mortgages, condo mortgages, second mortgages or mortgages for investment properties.
Additionally, current borrowers may be able to take advantage of a special offer to earn up to $5,000 cash back, depending on the size of your mortgage (terms and conditions apply). Borrowers interested in this offer should know that they’ll likely have a slightly higher interest rate than they would without receiving cash back, so it’s worth doing some math to make sure it’s worth it.
Estimate your monthly mortgage payment.
Use our mortgage payment calculator to compare different borrowing scenarios.
Ease of application
One feature that makes QuestMortgage appealing to many borrowers is the convenient and accessible application process.
The lender’s online application is available 24/7, and according to its website, you may be pre-approved in as little as a few minutes. Alternatively, you can speak with a QuestMortgage advisor by phone or live chat to discuss your mortgage needs and ask questions.
Regardless of how you apply, QuestMortgage will allow you to lock in your rate for up 120 days upon pre-approval. This may allow you to house-hunt with confidence, knowing that your rate won’t change for a few months.
Loan amounts and terms
QuestMortgage’s website doesn’t list a maximum or minimum mortgage amount. That said, since the application process is online, you can input your numbers to see what’s offered.
As for the terms, QuestMortgage’s website indicates one- to 10-year fixed terms. For variable-rate mortgages, three- and five-year terms are available.
Mortgage rate transparency
QuestMortgage posts its lowest high-ratio insured five-year fixed rate on the home page of its website. To see a five-year variable rate in a variety of terms, you’ll need to click over to the rates page.
The lender is clear about what a posted rate means, and the fact that you will likely be able to negotiate a lower rate. In the fine print, it also discloses some of the assumptions used to generate these sample rates.
Rate types
At this time, QuestMortgage appears to offer fixed and variable rates on only closed mortgages. Rates vary based on the term you choose, as well as factors like your down payment, purchase price, credit score and other factors.
Mortgage fees
In case you want to accelerate your repayment and save on interest, QuestMortgage can offer you two prepayment options. First, you can make additional lump-sum payments of up to 20% of the original balance at the start of the term and on your mortgage anniversary each year. Second, you can increase your payments at any time, up to 100% of the original monthly payment.
If you plan on paying off your remaining balance, for example as part of refinancing, QuestMortgage will use a formula to calculate your prepayment penalty. For those with a fixed-rate mortgage and three or more months left in their term, the prepayment charge is based on three months of interest or the interest rate differential (IRD), whichever is greater.
If you’re on a variable-rate mortgage with three or more months left in your term, you’ll pay a prepayment charge of three months of interest.
Discharge and legal fees may also apply.
Security and safety
QuestMortgage secures your personal information with firewalls, encryption and more. For example, the website uses Extended Validation (EV) digital certificates to ensure that you’re logging into the legitimate QuestMortgage site, not a sketchy impersonator..
Customer satisfaction ratings
Based on NerdWallet analysis of satisfaction scores on several customer review websites, it’s unclear whether QuestMortgage provides a satisfactory experience for most customers.
- QuestMortgage doesn’t have a Trustpilot rating, but its parent company, Questrade is rated 1.3 out of 5 possible stars based on more than 180 customer reviews as of July 2023.
- Questrade had 1 out of a possible 5 stars on the Better Business Bureau website as of July 2023, but that rating is based on only five reviews. Questrade is not accredited by the BBB itself.
You can reach a QuestMortgage mortgage advisor online through the chat option Monday to Friday from 8 a.m. to 8 p.m. ET and Saturday from 9 a.m. to 5 p.m. ET. You can also reach them during the same hours via phone at 1-888-909-5588. Another option is to send an email to [email protected].
QuestMortgage eligibility requirements
To be eligible for a mortgage with QuestMortgage, you’ll need to meet certain eligibility requirements:
- You must be a Canadian resident (excluding Quebec).
- The property must be in Canada (excluding properties in Quebec or any Canadian Territory).
- You must meet minimum credit score requirements (QuestMortgage does not disclose this number).
Other typical mortgage requirements include:
- Income that supports the amount you want to borrow. You may need to prove this using a letter from your employer, tax returns or other methods.
- Minimum down payment of 5% for homes that cost less than $500,000; 5% of the first $500,000 and 10% of the amount above $500,000 for homes priced between $500,000 and $999,999; or 20% for homes priced at $1,000,000 or more.
- Monthly housing costs of less than 39% of household income. This category includes mortgage payments, property taxes and utilities.
- Total debt load of less than 44% of your household income. This includes your monthly housing costs plus any payments on credit cards, car loans, student loans or other debt.
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 QuestMortgage
The quickest way to start the mortgage process with QuestMortgage is to apply online on its website by following these steps:
- Click “Get my rate.”
- Click “Purchase a home” or “Switch or Refinance,” whichever describes your mortgage goal.
- Answer questions about when you plan to buy and if you’ll live in the home.
- Enter your estimated purchase price.
- Enter your planned down payment.
- View the rate offered by the calculator. To continue and get more details, click “Get pre-approved.”
Once you’ve created your account, you’ll need to enter additional information about yourself and your prospective purchase, such as your employment status, income, outstanding debt and purchase price. Once you’ve entered all of those details, a mortgage advisor should get in touch to go over the details of your pre-approval and answer your questions.
Alternatives to QuestMortgage
| Home Trust | RBC Mortgage | First National Financial | |
| Lender type | Trust company | 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 | Average | Average | Above average |
Frequently asked questions about QuestMortgage
QuestMortgage is not a bank. QuestMortgage is a service provided by a financial institution known as Community Trust Company, which is a subsidiary of Questrade Financial Group. According to its website, CTC is regulated by the Office of the Superintendent of Financial Institutions and a member of the Canada Deposit Insurance Corporation.
Questrade is not a mortgage broker. QuestMortgage, a subsidiary of the same financial group as Questrade, is a direct-to-consumer mortgage lender.
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
Like most mortgage brokers and lenders, QuestMortgage lending partners will consider the following when estimating what the regular payment might be for your future mortgage:
- Home price: the total amount you agree to pay for a home.
- Down payment: the total amount you’ll pay upfront toward a home purchase.
- Amortization period: the number of years over which you’ll repay your mortgage.
- Mortgage term: the length of the contract you’ll have with your mortgage lender.
- Payment frequency: how often you’ll make mortgage payments.
- Mortgage interest rate: the fee you’ll pay to borrow money from the lender; expressed as a percentage of the loan amount.
- Property taxes or title transfer fee: an annual fee based on your property value.
- Mortgage default insurance: an extra cost you’ll pay if your down payment is less than 20%.
Example:
- Home price: $650,000
- Down payment: $58,500 (9%)
- Amortization period: 25 years
- Mortgage term: 5 years
- Payment frequency: Monthly
- Mortgage interest rate: 5.5%
- Mortgage insurance: $23,660
TOTAL MORTGAGE: $615,150
MONTHLY MORTGAGE PAYMENT: $3,778
Article Sources
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Josh Scott, “QUESTRADE LAUNCHES ONLINE MORTGAGE SERVICE QUESTMORTGAGE,” accessed March 5, 2024.
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