FAQs

Equipment financing is a loan or lease used to purchase equipment or machinery for business purposes.

Yes, many lenders offer financing for both new and used equipment.

No. A preapproval helps estimate your borrowing limit and may include a temporary rate hold. Final approval depends on the property, verification of your financial information and the lender’s conditions. Changes to your income, debts or employment may affect your approval.

Lenders typically request identification, proof of income and employment, down payment records, and details of your assets and debts. Self-employed applicants may need tax documents and business financial information. Additional documents may be required depending on the property and mortgage product.

Yes, self-employed borrowers can qualify for a mortgage. Lenders review your income documentation, debts, credit history and down payment. You may need to provide Notices of Assessment, tax returns and supporting business records. Requirements vary by lender.

A fixed interest rate stays the same throughout your mortgage term. A variable rate can change, affecting your payment amount or how much of your payment reduces the balance. The right choice depends on your budget, plans and ability to handle interest rate changes.

The term is how long your current mortgage agreement lasts. Amortization is the time scheduled to repay the mortgage in full. A longer amortization generally lowers payments but increases total interest costs. You may renew your mortgage several times during its amortization.

Review your options before accepting a renewal offer. Compare interest rates, payment flexibility, penalties and any costs of switching lenders. Start a few months before your term ends. Moving to a new lender requires approval and may involve additional documentation.

Refinancing involves replacing or restructuring your existing mortgage, often to access home equity or change your borrowing arrangements. Homeowners may refinance for renovations, debt consolidation or other financial needs. Approval depends on the lender’s requirements and your financial circumstances.

Renewal continues your remaining mortgage balance under a new term when the current term ends. Refinancing involves changes such as increasing the amount borrowed. It generally requires a new assessment and may involve appraisal, legal and other costs.

A home equity line of credit is revolving credit secured against your home. You can borrow, repay and borrow again within your approved limit. Interest is charged on the amount you use.

The revolving HELOC portion may be up to 65% of your home’s value. When combined with a mortgage, total borrowing is generally limited to 80%. Existing secured debt and lender approval affect your available limit.

The CSBFP helps eligible small businesses and start-ups operating in Canada access financing by sharing lending risk with participating financial institutions. Businesses with gross annual revenues of $10 million or less may qualify; farming businesses are excluded. This is a loan program, not a grant, and the lender makes the final approval decision.

Eligible expenses may include commercial property, new or used equipment, improvements to leased premises, certain intangible assets and working capital. Lines of credit can support day-to-day operating expenses. Financing limits vary by expense category, and all applications remain subject to program requirements and lender approval.

A private mortgage may be considered when traditional financing does not fit your circumstances. It is usually a short-term solution and often carries higher interest rates and fees. Before proceeding, review the total costs, payment obligations and a realistic plan to repay or refinance. Renewal is not guaranteed, and missed payments can put your property at risk.