True North Mortgage Review 2023

True North Mortgage at a glance

True North Mortgage is a national mortgage brokerage offering a wide variety of home loan options via salaried brokers.

True North Mortgage full review

True North Mortgage is a mortgage brokerage that was founded in 2006 in Calgary, Alberta. 

Though it’s headquartered in Calgary, Alberta, True North has multiple office locations throughout Canada, and provides mortgages online, in-person and via phone across the country. 

True North Mortgage partners with large public banks and small private trust companies to provide mortgages. A unique feature of True North Mortgage is that unlike many firms, its brokers do not receive a commission from whatever lender you choose. Rather, True North brokers are paid a salary so that they can provide objective guidance and help you find the right mortgage for your budget. 

One of the mortgage options offered by True North brokers may be that of its own in-house lender, called THINK financial.

True North offers a wide variety of mortgage products, including fixed-rate, closed, variable-rate, reverse mortgages, home improvement loans, and mortgages for investment properties and vacation homes — though some might only be available at certain times. 

True North Mortgage also offers a program called Rate Relief for eligible customers. It’s a 6-month mortgage with a lower-than-average rate. Upon completion of the 6-month term, you can renew the mortgage with THINK Financial (True North’s in-house lender) for an additional term. However, failing to renew with them will result in a 1% charge.

While not presently available due to high prime rates, True North Mortgage also offered a five-year, adjustable-rate open mortgage, which is unique and offers borrowers a lot of potential flexibility. Many mortgage providers limit open mortgages to terms of six months or less. 

True North Mortgage also provides services to Canadians looking to buy a home abroad, as well as mortgages for newcomers and non-residents (if allowed by the Canadian government).

How to choose the right 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.

1. 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.
2. Understand the different types of lenders: Mortgage providers include banks, credit unions, brokers like True North Mortgage, alternative lenders, and private lenders. Each has its pros and cons.
3. 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.
4. 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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How True North Mortgage calculates your mortgage payment

Like most mortgage brokers and lenders, True North Mortgage 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 a mortgage payment.
• 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

» MORE: Use our mortgage payment calculator to compare different loan scenarios

True North Mortgage feature overview

Variety of mortgages

True North Mortgage offers a large variety of residential mortgages, including fixed, variable, open and closed mortgages, as well as home equity loan options. 

It also has mortgage options for non-residents, and those who might typically have a harder time getting a mortgage like if you’re self-employed or have bad credit. 

True North’s ability to offer reverse mortgages and HELOCs, as well as mortgages for sub-prime borrowers, make it stand out in comparison to other mortgage brokerages.

Ease of application

You can apply for a loan with True North Mortgage in one of several ways: You can get pre-approved — as well as switch, renew, refinance — entirely online. You can also apply over the phone or in person if there is a True North office in your area.

Loan limits and terms

Based on our testing of True North’s online application, it provides mortgages up to $1,900,000. 

Generally, the company’s available mortgage terms range from one to five years.

Mortgage rate transparency

True North Mortgage makes it easy to browse current, sample mortgage rates on its website. Use the drop down menu to indicate the province you want to buy in and you can see sample rates specific to that location.

The True North Mortgage rate table shows one, two, three, four and five-year fixed rates, as well as the 5-year variable rate, and HELOC rate.

Mortgage rate types

True North Mortgages provides mainly fixed-rate mortgages, though it does have a HELOC and one 5-year variable rate mortgage. 

On its rates page, True North also provides a historical chart that dates back several years (up to 2014) to illustrate the historical monthly ups and downs of variable versus fixed rates. This information can help make it easier to decide if fixed or adjustable rates might be best for your needs and risk tolerance.

Mortgage fees

The True North Mortgage website states that it doesn’t charge fees, and that its brokers are “unified and salaried, instead of independent and commission-based.” However, it’s important to note that even when mortgage brokers are commission-based, it’s typically the lender — not the borrower — who pays these commissions. 

In terms of prepayment charges, the True North website notes that, depending on the mortgage provider you choose, an early payoff penalty could be imposed, typically charged as a percentage of the remaining principal balance.

For a variable-rate mortgage, three months’ worth of interest is a common charge when exiting early. For fixed-rate mortgages, the Interest Rate Differential applies. 

Security and safety

True North Mortgage says that it employs bank-level security measures and conducts regular system audits to ensure the safety of financial information submitted through its online application. Its website also claims that temporary data they may need to store is deleted after 14 days. 

If you want to completely remove all your personal information, you can provide instructions to True North Mortgage’s Privacy Officer to request a purge. 

The company’s website also states that it has a strict policy against selling data to third parties.

True North Mortgage eligibility requirements

To qualify for a mortgage with True North Mortgage, as with any lender or brokerage, you’ll need to meet certain eligibility requirements. These include:

• Minimum credit score: Typically 680, but lower-score options exist.
• Credit history: Established accounts in good standing, no recent negative marks.
• Income: Amount of income needed will vary depending on how much you want to borrow.
• Down payment amount: At least 5% for a home under $500,000. For homes between $500,000 and $999,999, you need 5% of the first $500,000 and 10% of the amount above $500,000.
• Debt service ratios: Your gross debt service ratio must not exceed 39%; your total debt service ratio must not exceed 44%.
• Type of employment and employment history: You must be able to demonstrate at least two years of consistent employment.

How to apply for a mortgage with True North Mortgage

To apply for a mortgage with True North, you can phone or go in-person if there is an office location in your area. Otherwise, you can apply online. 

1. To apply online you simply click on the Apply Online button found on most of the company’s website pages. 
2. You’ll be asked to choose from options like pre-qualify, renew your mortgage or purchase a new home.
3. Based on what option you select, you’ll then be asked what amount of mortgage you’re looking for.
4. You’ll be asked additional questions like how soon you need the money (Unsure, 45 or 120 days), your living status and if you’re applying on your own or as a couple. 
5. Afterwards you’ll be asked to provide contact info so a mortgage specialist from True North can reach out to you.
6. You can elect to provide more information, such as info on the property you’re interested in buying, your current mortgage information and more.

Alternatives to True North Mortgage

You can compare other Canadian lenders and brokers to find the best mortgage rate for your needs if True North Mortgage is not checking off all your boxes.

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Best Mortgage Rates in Canada

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Mortgage Affordability Calculator

Use this mortgage affordability calculator to estimate how much house you can afford. See how budget, down payment, and debt ratios affect mortgage affordability.

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