Think Financial Review 2024

THINK Financial stands out with its comprehensive mortgage product range for different financial situations. Whether you’re looking to buy a new home, refinance an existing property or take advantage of short-term mortgage rate relief, THINK Financial has options that can be tailored to your needs.

Loan Types

• Fixed-rate Mortgages: Consistent payments for the entire loan period.
• Variable-rate Mortgages: Potentially lower interest rates that change with the key interest rate.
• Cash-back Mortgages: Provides cash upfront that can be used for different needs.
• HELOC (Home Equity Line of Credit): Offers a flexible line of credit based on your home’s equity.
• Rate Relief Mortgages: Short-term relief from high interest rates with special six-month or one-year terms.

Loan Minimum

The minimum loan amount you can borrow from THINK Financial is typically $100,000.

Loan Maximum

THINK Financial does not specify a maximum loan amount.

Other Notable Features

THINK Financial mortgages offer flexible features, such as:

• Portability: You may be able to transfer your existing mortgage to a new property without breaking your contract and paying a penalty
• Change your payment frequency: While monthly or biweekly payments are common, you can change your payment schedule without a paying fee
• Recast for lower payments: When you prepay a lump sum or increase your regular mortgage payments, you can recast your mortgage without paying a fee and reset your amortization (original timeline less time served) to lower your payments before renewal.
• Assumable mortgage option: When you purchase a home, an assumable mortgage allows you to take on the current owner’s mortgage, including its terms, interest and payments.

Loan Servicing

THINK Financial services its own loans, which means that borrowers deal directly with the lender throughout the life of their mortgage. This direct relationship can simplify the payment process and ensure that any questions, requests or issues you have are handled directly by THINK Financial.

THINK Financial’s products are ideal for:

• First-time homebuyers seeking comprehensive support and competitive rates.
• Homeowners looking to refinance and take advantage of lower interest rates or better terms.
• Borrowers interested in having the option to make significant prepayments on their mortgages without penalties.
• Borrowers requiring a rapid mortgage application process.
• Homebuyers in all Canadian provinces due to THINK Financial’s nationwide eligibility area.

THINK Financial streamlines the mortgage process with an easy online application supported by options for in-person service at branch locations. This lender focuses on competitive fixed and variable rates and offers rapid approvals and closings to accommodate the borrower’s timeline.

THINK Financial sets straightforward criteria for qualifying for its mortgage products, ensuring a broad range of borrowers can access financing.

 Minimum Credit Score

For most mortgage products, a minimum credit score of 650 is required to qualify, ensuring borrowers meet standard creditworthiness.

Minimum Down Payment

The minimum down payment required is typically 5% for insured mortgages, providing an accessible entry point for new homeowners.

Maximum Debt-to-Income (DTI) Ratio

THINK Financial allows a maximum debt-to-income ratio of 44%, allowing borrowers some flexibility in managing their existing debts while financing a home.

THINK Financial ensures transparency with its fee structure, allowing borrowers to plan their finances effectively. Here are some of the fees you might encounter.

Prepayment Penalties

THINK Financial allows up to 20% of the original mortgage balance to be paid annually without penalty. Prepayments exceeding this limit may incur a fee, calculated using the greater of three months’ interest or the interest rate differential (IRD), which is the future interest on your current mortgage less the interest on an equivalent mortgage at today’s rates. 

Closing Costs

These include legal fees, title insurance and possible survey costs, which are necessary to complete the mortgage transaction. Borrowers should budget approximately 1.5% to 4% of the purchase price for closing costs.

Appraisal Fees

Depending on the property and the loan amount, an appraisal may be required to determine the property’s market value. The fee for appraisal typically ranges from $300 to $500.

Loan Application Fees

THINK Financial does not typically charge a loan application fee.

Applying for a mortgage with THINK Financial is streamlined and user-friendly. Prospective borrowers can start the process online through the lender’s website, where they will fill out an application form, providing their personal information, financial status and property details. Applicants can also visit a branch or call customer service for assistance with the application process.

Approval, Underwriting and Closing Timeline

Once you submit your application, THINK Financial conducts an initial review to determine your preapproval. Depending on the completeness of the information you provide, this stage can take anywhere from a few hours to a couple of days.

The underwriting process involves a detailed review of your financial information and the property details. This stage can take anywhere from a few days to a few weeks. During this time, additional documents such as proof of income, property listings or previous tax returns may be required.

Closing typically occurs within 20 to 30 days from the application approval date. This timeline can vary based on the specific terms of the transaction and any contingencies that may arise.

To enhance your chances of qualifying for a mortgage with THINK Financial, ensure you meet the following criteria:

1. Credit Score: Maintain a credit score of at least 650 to meet the basic eligibility for most mortgage products.
2. Down Payment: Save a minimum of 5% for the down payment on the purchase price, more if you are buying a high-value property. Keep in mind that down payments of less than 20% of the purchase price require mortgage default insurance as part of the monthly payment.
3. Debt-to-Income Ratio: Keep your debt-to-income ratio below 44%. This means your total monthly debt payments should not exceed 44% of your monthly income.
4. Stable Income: Demonstrate stable employment and income history, typically for at least two years, to show you can meet monthly mortgage payments.
5. Documentation: Gather all necessary documentation, including identification, proof of income, employment verification and any other documents that verify your financial stability.

What To Do If You Get Turned Down

If THINK Financial turns down your mortgage application, consider the following steps:

1. Understand the reasons: Request specific reasons for the denial. Understanding why you were turned down can help you address the issues that led to your denial before applying again.
2. Improve your financial profile: Based on the feedback, take steps to improve your credit score, decrease your debt-to-income ratio, or save for a larger down payment.
3. Consider other lenders: Different lenders have varying criteria. Explore other financial institutions or mortgage brokers with more lenient standards or specialized products suited to your financial situation.
4. Reapply when ready: Once you have made the necessary adjustments to your financial profile, reapply for the mortgage. It may also be beneficial to work with a mortgage broker who can provide guidance and increase your chances of approval.
5. Alternative financing options: If traditional mortgage approval continues to be out of reach, consider alternative financing options such as a co-signer to strengthen your application or look into subprime lenders if the situation warrants.

While THINK Financial is highly ranked on Forbes Advisor Canada’s list of best mortgage lenders due to its competitive rates and comprehensive loan solutions, it’s important for prospective borrowers to consider alternatives.

Each lender has unique advantages and loan products that might better suit specific financial situations or property types. Exploring other lenders can provide options that offer lower rates, better terms or more specialized services that better meet your specific needs.

THINK Financial and Nesto Inc. both cater to tech-savvy borrowers but differ in products and services. THINK Financial stands out with its flexible loan products and lower penalty costs for breaking your mortgage early, while Nesto is known for competitive rates and a digital-only process. Nesto is ideal for rate-focused customers, while THINK Financial suits those valuing loan flexibility and lower penalties.

Comparing THINK Financial with BMO underscores the choice between a specialized lender and a major bank. THINK offers innovative features like favourable penalty calculations and flexible payment options, making it cost-effective for many borrowers. BMO offers stability, a wide range of products and in-person service through its branches, appealing to borrowers who prefer traditional banking. BMO is best for individuals desiring a variety of mortgage options and personal service, while THINK appeals to those preferring digital convenience and innovative mortgage solutions.

THINK Financial and Equitable Bank serve different borrower profiles. THINK offers more flexible payment options and lower penalties, appealing to borrowers who value flexibility and cost-effective mortgage options. Equitable Bank specializes in accommodating borrowers with unique circumstances like poor credit or non-traditional income needing tailored financial solutions, making it a strong option for those who may not qualify with other lenders.

Refinancing with THINK Financial is a straightforward process designed to help existing homeowners get more competitive interest rates, reduce their monthly payments or tap into home equity for large purchases.

Homeowners interested in refinancing can apply through THINK Financial’s online platform or visit a branch for personal assistance. After receiving your application, this lender evaluates your current mortgage, home value and credit profile to offer refinancing solutions that meet your new financial goals.

Since refinancing is often used by borrowers looking to consolidate debt, fund home improvements or reduce the term of their existing mortgage, it’s important to consider closing costs and potential penalties for early payoff under the original mortgage terms.

Choosing the right mortgage lender is crucial to ensuring that you secure a mortgage that fits your financial situation and goals. With numerous options available, deciding on the best lender requires careful consideration of certain criteria.

Affordability

One of the primary factors to consider when choosing a mortgage lender is affordability. This involves looking at the offer, as well as the associated fees and the total cost over the life of the mortgage.

A lower interest rate might seem attractive initially, but fees and other costs can add up. It’s important to compare these total costs across different lenders to find the most affordable option that fits your budget.

Accessibility

Accessibility is another key factor. This includes how easy it is to apply for the mortgage, the support you receive during the application process and the availability of flexible terms that meet your needs. Some lenders offer online applications and digital tools that streamline the process, making it quicker and more convenient.

Additionally, consider whether the lender you choose has physical branches or offers personalized service through mortgage brokers or advisors, especially if you prefer face-to-face interactions or have complex financial circumstances.

Borrower’s Experience

Your overall experience as a borrower is also a vital part of your mortgage journey. The customer service, information and support you receive during the mortgage term all contribute to your satisfaction.

Checking independent reviews on sites like TrustPilot or the Better Business Bureau (BBB) can provide insights into other customer experiences with the lender. High ratings and positive reviews may indicate reliable customer service and a borrower-friendly approach, which can significantly influence your decision.

Forbes Advisor scores lenders based on criteria that have a meaningful impact on the cost of the mortgage, including borrower eligibility requirements, the variety of loan options and whether the lender had loan features that could affect the homebuying process either positively or negatively, such as prepayment privileges, a bona fide sales clause or whether a mortgage broker could act on your behalf with the lender once your mortgage is active (broker privileges).

The best lenders scored the highest based on the weighting in the following categories:

• Interest rate: 20%
• Loan options: 15%
• Timeliness: 15%
• Bonafide sales clause: 5%
• Broker privileges: 5%
• Prepayment privileges: 10%
• Penalties calculation type: 15%
• Customer service experience: 15%
• Lender discounts offered: 5 bonus points

Our focus on affordability, accessibility and key features that affect the homebuying process (like preapproval time and closing time) is what we consider reflective of consumers’ top priorities when comparing mortgage lenders.

Lenders that don’t publicly display their interest rates online or operate in fewer than four provinces or territories were not eligible for review.