THINK FAQs

Your questions about THINK.

We are a CMHC-approved lender and a non-bank Mortgage Finance Corporation. We exist to offer you lower rates with features that better help you reach your mortgage and financial goals. THINK more savings, with exceptional service.

We get many questions from our clients, and here are answers to the most common ones. Have a question not listed or need help? Call or email us directly, or contact your True North Mortgage broker.

Why do you offer your mortgage products exclusively through a very limited number of mortgage brokerages?
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We like to keep costs down in order to provide our clients with a better rate.

Supporting a myriad of different mortgage brokerages and mortgage agents would require us to hire numerous sales representatives and auditors. This would be costly and would require us to raise our mortgage rates.

Some mortgage brokers are less than pleased that we only offer our products through a select few brokers, and thus may make false claims about us and our products. If you have any questions, please contact us directly. We’re always happy to hear from you.

What happens if THINK Financial goes bankrupt?
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Never has a CMHC-approved lender gone bankrupt. The federal government maintains a very high standard for the level of equity and underwriting requirements needed to be an approved lender. They regularly verify that these standards are continuously maintained.

Furthermore, audit after audit has shown that our pool of clients not only has the highest average credit scores but also some of the lowest arrears rates.

What happens if THINK Financial gets bought out?
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The agreement we have with each of our clients lasts for the term of their mortgage. This arrangement can’t be changed by us or anyone purchasing THINK Financial.

What is the current Prime Rate?
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THINK Financial's prime rate is currently 6.95%.

Prime rates are floating rates affected by movements in the Bank of Canada's overnight benchmark rate. THINK Financial's variable mortgage rates and HELOC rates are usually offered as a discount from or in addition to prime, as per individual qualifying details.

Are THINK Financial mortgages ‘callable’?
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No. Callable mortgages in Canada are very rare and dependent on specific circumstances. A callable debt is a provision in a loan that allows the mortgage lender to require you to repay the loan in full before the end of the loan term, which can happen if the terms of the loan are breached, and at the discretion of the lender.

Are THINK Financial HELOCs ‘callable’?
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Yes. All HELOCs (Home Equity Lines of Credit) are callable in Canada, but having it called is rare and dependent on specific circumstances. A callable debt is a provision in a loan that allows the mortgage lender to require you to repay the loan in full before the end of the loan term, which can happen if the terms of the loan are breached, and at the discretion of the lender.

Where should I send my proof of fire/home insurance?
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Your insurance policy must include the first loss payee as being one of the following:

THINK Financial mortgages that start with an 8 or 9, please use:

Computershare Trust Company of Canada
C / O True North Mortgage Inc.
P.O. Box 351 Station C
Kitchener, ON N2G 3Y9

It can be emailed to: thinkfinancial@lenderservices.ca.

THINK Financial mortgages that start with a 2, please use:

Computershare Trust Company of Canada
C/O True North Mortgage Inc.
3600 - Bow Valley Square II
205 5th Ave SW
Calgary, AB T2P 2V7

It can be emailed to: requests@thinkfinancial.ca

Can I see a sample of your mortgage approval?
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Certainly. We take special care to ensure our mortgage approvals are written in plain language and contain all the information clients need to make financing decisions.

Do you charge any hidden fees or fees that are not typically charged by other lenders?
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No. In fact, we choose not to charge fees for certain things other lenders do, such as requesting a change in your payment schedule or a disbursement wire fee.

How do your penalties on The Works 'variable-rate' product compare to other lenders?
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Some lenders may charge higher variable-rate penalties depending on when you break the term (by using use a higher calculation rate). With THINK Financial, we only charge a 3-months interest penalty at your current mortgage rate, plus a pro-rated portion of your original rebate and penalty covered by us (if received):

  1. The present value, as determined by us, of the total amount of interest which would have been payable on the outstanding principal amount if the prepayment had not been made, calculated from the date of prepayment to the maturity date, at the current mortgage rate.
  2. The present value, as determined by us, of the total amount of interest calculated on the outstanding principal amount, calculated from the date of prepayment to the maturity date, at the interest rate per annum set by us applicable to residential mortgages in Canada, for the mortgage term nearest in length to the remaining term of the loan on the prepayment date.
  3. The percentage of the remaining term multiplied by the original rebate amount plus the amount of penalty covered by us when issuing an early renewal.
How do your penalties on The Works 'fixed-rate' product compare to other lenders?
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For our fixed-rate mortgages, we charge an IRD penalty in many cases, much like other lenders. But we use current market rates for the calculation rather than often-higher 'posted rates' that many banks typically use. Specifically, we charge the greater of either:

1. Your Interest Rate Differential, which is the future interest on your current mortgage (1), minus the interest of an equivalent mortgage if issued today (2).

Or:

2. Three months interest at the current mortgage rate, plus a pro-rated portion of your original rebate and penalty covered by us (3) (if received).

  1. The present value, as determined by us, of the total amount of interest which would have been payable on the outstanding principal amount if the prepayment had not been made, calculated from the date of prepayment to the maturity date, at the current mortgage rate.
  2. The present value, as determined by us, of the total amount of interest calculated on the outstanding principal amount, calculated from the date of prepayment to the maturity date, at the interest rate per annum set by us applicable to residential mortgages in Canada, for the mortgage term nearest in length to the remaining term of the loan on the prepayment date.
  3. The percentage of the remaining term multiplied by the original rebate amount plus the amount of penalty covered by us when issuing an early renewal.
How does THINK Financial compound their interest?
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Some lenders compound their variable rates on a monthly basis, which means you pay more interest. At THINK Financial, we compound your rate semi-annually, which is more beneficial to you.

How flexible are the lump sum payments on The Works product?
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Some lenders don’t allow you to increase your regular payments on their mortgages, and they may also have smaller lump sum options and only allow you to make one lump sum payment per year.

With THINK Financial, you get up to 20% maximum of lump sum ability. In other words, at any time during the mortgage year, you can increase your regular mortgage payments or make lump sums totalling up to 20% of the original principal amount without penalty (minimum lump sum amount is $100). Yes, that means you could pay off your entire mortgage in less than 5 years. And yes, the entire lump sum payment will go toward your principal amount.

How are Interest Rate Differential (IRD) penalties calculated?
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Our IRD penalty captures the difference between your existing rate and the current rate available to new clients.

For example, if you received a $400,000, 5-year fixed mortgage through us on July 1st at a rate of 4.59%, your IRD penalty, if rates stay the same, would be $0, so your penalty would be 3 months interest, approximately $4,590, depending on exactly when you paid off the mortgage.
If rates were to fall, your penalty would increase due to the IRD penalty. For example, if fixed rates fell to 3.59% in year 2, your penalty would be about $13,500.
What happens at maturity when your mortgage is up for renewal?
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Your mortgage then becomes fully open. You can choose to renew your mortgage with us or have it transferred to another lender.

If we have not received a signed renewal agreement or payout request before the maturity date, we may automatically renew your mortgage into a closed six-month convertible term at prime plus 3%.