Frequently Asked Questions




Annual Statements

My mortgage rate is shown at X% on the statement, but I just signed a renewal for Y%.
Why is that?
The statement shows details as of December 31, of the previous year. If your renewal took place after that time, the new rate is not reflected on this statement.

My statement shows that I make monthly payments? I have switched to biweekly.
The statement shows details as of December 31, of the previous year. If you made the frequency change after that time, it is not reflected on this statement.

It shows payments received as $XXXX. I paid you $XX every month and it doesn't add up.
The "Payments Received" category includes only the principal portion of your regular mortgage payments. The interest portion is reflected under the Interest Paid section.

I paid you $XXX every month. The payments received and the interest paid don't add up.
If you also have a tax portion and/or Mortgage Life Insurance, these portions of your payment are not reflected in either of these two categories.

My annual statement shows that I have 'no coverage' for Mortgage Life Insurance. I pay a premium every month.
This field indicates only that you do not have Mortgage Life Insurance with our company. It is possible that you have coverage with another insurance provider. We do offer Mortgage Life Insurance and Mortgage Life with Disability Insurance. If you would like more details on our products, please visit the insurance section of this site.

MCAP Home Mortgage Protection

I notice that there is a surplus in my tax account. Can I get this refunded to me?
The credit that is in your tax account will be used toward the payment of property taxes.


Arrears

My mortgage payment will be returned. What should I do?
We understand that circumstances may arise which may cause your regular instalment to be returned to us. Once we have received notification from your financial institution of the returned payment, we will automatically attempt to take the payment 10 days later. All payments that are returned are subject to an administration fee. We will communicate the exact date and payment amount to you via a payment return letter. If the date chosen is not convenient, please contact an MCAP Customer Service Specialist at 1-800-265-2624 for alternate arrangements.

I am unable to bring my account up to date. Is there anything that can be done?
Our Customer Service Specialists are here to assist you with your options. They can look at some options that may be beneficial to you. Options could include increasing your amortization period or doing an early renewal to lower your interest rate and payment amount. In the meantime it is important that you make all future instalments on time. Keep in mind that any further missed payments might cancel the arrangement that you have made with a Customer Service Specialist.

The recent NSF payment on my mortgage was due to an error by my financial institution. Why am I being charged an administration fee?
The fee reflects the added administration cost associated with your account. If the payment return was the result of a banking error, please contact your financial institution for reimbursement of fees. A copy of our letter showing the amount of the fee may be required by your financial institution, as proof of the amount of the fee.

I need to delay my mortgage payment for a few days. Is this possible?
We can temporarily hold your mortgage payment provided that you provide us with a firm date when the payment will be made. An administration fee applies for this service. If you anticipate this becoming a common occurrence, perhaps a permanent payment due date change may be of interest to you.

Can I skip a payment?
This option may be available to you. If your mortgage is insured by CMHC you may be required to complete a Skip a Payment application which must then be approved by CMHC before your request can be granted. Please be advised that you may only skip the equivalent of four monthly instalments during the entire life of your mortgage with us.




Customer Service Specialists

How can I contact one of your Customer Service Specialists?
You can call us toll-free at 1-800-265-2624, across Canada from 8:00 a.m. to 8:00 p.m. Monday through Friday. Our Customer Service Specialists can also be contacted by fax at 1-800-922-0220 and by sending an email with this simple form.

Contact Request Form

What types of inquiries can your Customer Service Specialists handle?
Our Customer Service Specialists are trained to answer any mortgage question that you may have. Our staff is empowered to make important decisions on the spot, so that you do not have to wait for an answer to your request. They handle arrears arrangements, mortgage renewals, property tax payments, payment frequency changes, and more!

When I call your toll-free phone number, where are the people I am speaking with?
MCAP operates three Customer Contact Centres nationally. Your calls are area call routed to our Montreal, Edmonton or Kitchener Contact Centres.

I want to deal with the same person each time I call in, is that possible?
We believe that we can provide better service to you, by allowing anyone to handle your questions or concerns immediately. The person that helped you the last time, is likely helping someone else, but don’t worry they will have put detailed memos on your account, thus allowing anyone to understand the nature of your individual situation. We want to resolve your concerns, or handle your inquiry as quickly as possible for you.


Discharges

Why do I have to pay a penalty to payout my mortgage?
Unless you are in an open mortgage, there is a penalty for paying out your mortgage contract prior to the maturity date. The investor backing your mortgage expects to receive interest for the full term of the mortgage. If you are purchasing a new home, renovating, or need additional mortgage financing MCAP can assist you with this request. Obtaining a new mortgage with MCAP may reduce the penalty amount required on your current mortgage.

What does per diem interest mean?
Per diem interest is the daily interest charge if we do not receive the payout funds on the date quoted on the statement.

What does the discharge fee represent?
The fee is the cost associated with preparing the discharge documents. In some provinces this is done electronically between the municipality and us, while in others we prepare the paper documents and send them directly to you to register with the municipality.

I recently paid out my mortgage. Do I need to cancel my Mortgage Life Insurance, Property Tax Service or my Pre-Authorized payments?
Once your mortgage has been paid out in full your Mortgage Life Insurance policy will be cancelled automatically. The same applies for our property tax service; upon discharge we will notify the municipality that we will no longer be paying taxes on your behalf. All future pre-authorized payments will also be automatically cancelled once your mortgage has been paid out in full.

When will I receive my discharge documents?
The discharge documentation will be mailed to you approximately 30 - 60 days after your mortgage has been paid out in full.




Interest Rates

What are your current interest rates?
For a current listing of our mortgage rates please go to the rates section of our website.

MCAP Mortgage Rates

What will interest rates do in the next little while?
That is a great question, but unfortunately nobody knows for sure which way interest rates will go. There may be times when interest rates rise, and other times when interest rates fall. If you are concerned about interest rates, perhaps our Customer Service Specialists could look at doing an Early Renewal on your mortgage to lock you into a new rate today.

Why do interest rates change?
Interest rates change depending on a wide range of factors. Things such as the Bank of Canada Rate, unemployment, and the economy all play roles in determining interest rates.

I have been offered a better rate by another Financial Institution, can you match?
There are many factors to consider when comparing interest rates. If you are in the middle of a closed term mortgage, there is an interest penalty to break your mortgage early. This penalty may eliminate any potential savings by moving your mortgage. If you are interested in lowering your mortgage rate, contact one of our Customer Service Specialists. They may be able to offer you an early renewal, which may reduce or save potential penalty charges.

Customer Service



Home Mortgage Protection

Do I really need to spend money on an insurance plan?
I have life and disability insurance with my employer already.
Having the added benefit of life insurance, and disability insurance, certainly helps with day-to-day costs such as utilities and taxes, but employer disability plans usually only cover a percentage of your income. Having the added security of mortgage life insurance means that neither your family or estate will need to use funds from any other life insurance plan to pay your mortgage. Home Mortgage Protection can help ensure one of your largest assets — your home — is protected, regardless of any additional coverage you may have.

Am I required to get a complete medical exam?
If you checked “No” to the health question on the Home Mortgage Protection application and your mortgage balance is $300,000 or less, approval of this insurance is automatic. If you checked “Yes” or if the mortgage balance exceeds $300,000 you will be required to undergo a medical interview. The insurer may request additional information or tests in order to get a complete picture of any medical condition you have, but this generally occurs in a low percentage of cases. Please note that coverage only becomes effective upon written approval from Sun Life Assurance Company of Canada.

When does my insurance coverage begin?
For most, coverage begins as soon as you begin paying your premiums. Your policy comes into effect on the later of these dates:  when you apply for coverage, the date the insurer approves your coverage or the date funds are advanced.

What happens to my insurance policy when my mortgage is up for renewal?
When you renew your mortgage with MCAP, your policy will be extended automatically and there are no additional forms to complete.

What is the maximum coverage for Life Insurance?
The maximum coverage is $500,000 for all insured mortgages with MCAP.

What if I decide to purchase a new home or require additional funds and want to increase my mortgage amount with MCAP?
If you move or wish to refinance your mortgage, your outstanding coverage protection will transfer over automatically. Partial insurance coverage will be based on the unpaid balance of your existing mortgage and you do not need to re-apply. The new benefit amount is calculated by taking the transferred coverage amount, divided by the total balance of your new refinanced mortgage. This percentage will be applied to the outstanding balance at time of death. If you wish to top up the coverage, a new application must be completed for the additional amount. If your health condition is such that your application for insurance is declined, the partial coverage as outlined above will still be granted.

What does Disability Insurance cover?
Let’s assume you purchased Disability Insurance for your mortgage. Your monthly principal and interest mortgage payments are $1,500 per month and your property taxes are $200 per month (as long as property taxes are collected by MCAP). In the event of a claim, you will be covered for $1,700 per month, if you applied for full coverage of your total payments.

What is the maximum coverage for Disability Insurance?
The maximum coverage is $4,000 in monthly mortgage payments and taxes (as long as taxes are collected by MCAP) and the maximum coverage is 24 months of disability benefits, consecutively or in aggregate per disability. And a lifetime cumulative maximum of 48 months for all insured mortgages with MCAP.

How much will it cost?
We’ve provided some sample estimates so you can get a better idea of potential coverage costs when setting up your budget for your home.

Life
Premiums are based on the Insured Person’s:

  • age at date of application
  • current mortgage balance
  • whether the application is for single or joint coverage
  • the rate table included in this section
Monthly Premium Rates are per $1,000
Age Band
Single
Joint
18 – 30
0.09
0.14
31 – 35
0.13
0.19
36 – 40
0.20
0.30
41 – 45
0.29
0.44
46 – 50
0.40
0.58
51 – 55
0.55
0.80
56 – 60
0.75
1.15
61 – 64
1.06
1.59
Sample Calculations for 100% coverage
Example 1
$200,000 mortgage, single coverage, for 28-year-old
Calculation: 200,000 divided by 1,000 times 0.09 = $18.00 per month
Example 2
$200,000 mortgage, joint coverage, oldest person is 33 years old
Calculation: 200,000 divided by 1,000 times 0.19 = $38.00 per month
Applicable sales tax will be added to premiums.

Disability
Premiums are based on the Insured Person’s:

  • age at the date of application
  • initial insured monthly mortgage payment
  • whether the application is for single or joint coverage
  • the rate table included in this section

To calculate the monthly insurance cost, multiply the initial insured monthly mortgage payment at time of application by the appropriate premium rate and divide by 100.

Monthly Premium Rates are per $1,000
Age Band
Single
Joint
18 – 30
1.30
2.50
31 – 35
1.70
3.30
36 – 40
2.10
4.00
41 – 45
2.65
5.15
46 – 50
3.20
6.25
51 – 55
4.00
7.75
56 – 60
5.00
9.75
61 – 64
5.75
11.00
65 – 69*
7.00
13.50
* Rates only applicable for existing insured persons who are refinancing an insured mortgage.
Joint premium rates will be based on the lesser of the joint rates using the age of the oldest person insured or the sum of the single rates for each person insured.
Sample Calculations for 100% coverage
Example 1
Monthly mortgage payment of $900, single coverage, for 28-year-old
Calculation: 900 divided by 100 times 1.30 = $11.70 per month
Example 2
Monthly mortgage payment of $725, joint coverage, oldest person is 33-years-old Calculation: 725 divided by 100 times 3.30 = $23.93 per month
Applicable sales tax will be added to premiums.

Home Safe Home

For additional explanation, terms and conditions about MCAP’s Home Mortgage Protection please review the certificate of insurance document. This document is designed to provide you with general information on the benefits for which you may be eligible and does not create or confer any contractual or other rights.  In the event of a conflict between this document and your certificate of insurance, the latter document will take precedence.

Don’t miss this important opportunity - apply now.

If you’re between the age of 18 and 64 you can apply for Home Mortgage Protection.

Speak to one of our qualified specialists at 1-866-514-4896 to learn more and apply,

OR

Enter your contact information to have a qualified specialist call you at a more convenient time.




Payments

Can I delay the date on which my payment is withdrawn?
Yes, you can hold your payment until a date that is convenient for you. Holding your payment is subject to our approval and an administration fee. We also require a minimum of four business days notice to hold your payment.

May I make a permanent due date change?
We can permanently switch your mortgage payment due date. There is an administration fee to complete this request. Depending on the nature of the change, you may also be required to pay an interest adjustment.

Can I lower my payment amount?
Depending on your current amortization period, we may be able to reduce the amount that you pay with each instalment. If you are already at your maximum amortization, we may be able to offer you an early renewal which may lower your interest rate.

My payments are $500.00. Why does my mortgage balance does not decrease by $500.00 with each instalment?
Each mortgage payment that you make is a blended instalment that includes both principal and interest. With each instalment that you make, a greater portion of the payment will be applied to the principal. If you would like an updated amortization schedule, please complete the Amortization Request Form.

Amortization Request Form

How do I increase my instalment amount?
You are entitled to increase your principal and interest instalments by a set amount each year (usually about 20%). This increase can be exercised by contacting one of our Customer Service Specialists.

Customer Service

How do I make a lump sum payment on my mortgage?
Your mortgage allows you to make lump sum payments based on a set percentage of your original committed amount (usually about 20%). The lump sum payment can be made on any payment due date. The minimum amount that you can put down each time is $100.00 and the maximum is the set percentage of your initial mortgage balance.




Property Taxes

How do I include my property taxes in with my mortgage payments?
MCAP provides a tax service to our customers. It eliminates having to worry about submitting your property taxes to your municipality. The process is simple; we will collect a regular amount from you in addition to your mortgage payment. This extra amount will be set aside as Property Tax Savings, with interest being paid on any credit balance. Each year we will then send you a statement showing the taxes that have been paid on your behalf, along with a current balance in your Tax Savings Account.

Is there a service charge to have my property taxes included with my payments?
MCAP provides this service to our customers at no charge.

My taxes are included in my mortgage payment, but the city just sent me an outstanding tax bill. What should I do?
Simply send us a copy of the tax bill and we will pay it for you. The municipality is likely not yet aware that we will be paying your property taxes for you. Once this bill has been paid all future bills should be sent directly to us.

Why is my tax portion so high?
We need to set your tax instalment at such an amount so that we have enough money in your tax savings account to pay the tax bill in full once it has been sent to us from the municipality. If there is any credit balance in your account after final taxes have been paid, we will notify you of this surplus.

How to I cancel the tax portion associated with my mortgage?
Provided that you have demonstrated good repayment on your mortgage, you may cancel the tax portion by contacting us. Keep in mind that this is a convenient alternative to setting aside money each month yourself to pay your taxes. If you are thinking of cancelling your tax portion because the tax instalment is too high, please contact us so that we can determine if there is anything that can be done to keep your tax payment with us. We may be able to spread the amount we need to collect over an additional year, which should lower your instalment amount.




Refinancing Your Mortgage

What types of refinancing do you provide?
MCAP is committed to providing our customers with the type of refinancing that you need. We have many flexible programs and options, which should meet your requirements. We handle covenant changes, assumptions, debt consolidations, equity take-outs, increased ports, decreased ports, replacements, bridge loans and more.

I want to refinance my mortgage. How do I do this?
An application for refinance can be completed over the phone, by speaking with one of our Customer Service Specialists. We can also e-mail an application to your e-mail address. Or, you can click here to access a printable (PDF) application. Once your application is submitted it will be reviewed by an underwriter to determine if we can help you with your request.

Refinance Application Form

Are there any costs to refinance my mortgage?
There are several costs associated with refinancing your mortgage. There may be an application fee, an appraisal cost, as well as any additional legal fees that may be charged by a solicitor.

What is an appraisal?
When you refinance your home, we will need to have a current appraisal done on your property. An appraisal is a document showing the value of your home. An appraiser will look at the condition of your home, and your neighbourhood to determine an accurate market value of your property.

I am not sure I would qualify to refinance my home. How can I know for sure?
To be considered for refinance, you must be able to demonstrate that you are able to make your current mortgage payments in a timely manner. Your history with other creditors is also very important to us. You must also demonstrate that you have the income to support the increased mortgage amount. Finally there must be enough available equity in your property.




Renewals

When will I receive my mortgage renewal?
Mortgage renewal offers are mailed to you 30-days in advance of your maturity date. The renewal offer will list our terms and corresponding rates. MCAP offers fixed and variable rate mortgages to meet your mortgage needs. Depending on your current mortgage product, you will see a selection of some or all of these terms.

How can I find out what your interest rates are?
You can access our rates by calling 1-800-265-2624. If your mortgage is up for renewal please call a Renewal Specialist directly at 1-866-514-4896, or visit our rates page.

MCAP Mortgage Rates

What should I do if I have received a lower rate from someone else?
Please contact a Mortgage Renewal Specialist. Armed with a solid understanding of our competitor’s products he/she may be able to look at discounting your mortgage rate to match the rate of a competitor. Rate discounts are reserved for our preferred customers. There are other things to consider besides the mortgage rate, such as our convenient Property Tax Service, and our valuable Mortgage Life Insurance. MCAP is also one of the few companies to offer Disability Insurance.

Can I make additional changes to my mortgage at renewal?
Absolutely, at renewal you can change your payment due date and/or payment frequency without an administration fee. Renewal is also a great time to apply for Mortgage Life Insurance and/or Disability Insurance without completing a statement of health.

I may be selling my home, should I select a short-term mortgage?
All MCAP mortgages are portable, meaning you can take the mortgage with you to your new property. Portability means that you can take advantage of the lower rates today and not worry about needing to payout the mortgage should you sell. Whether you’re at renewal now, or thinking of selling call our Mortgage Specialists at 1-866-514-4896 to get the process started.

Who needs to sign the renewal offer?
All parties on title of the MCAP mortgage should sign the renewal offer. You can fax the completed offer to us at 1-800-922-0220.

What rate do I get if I convert my convertible, or variable rate mortgage?
You are eligible for MCAP’s best-published rate at the time you elect to convert or lock-in your existing mortgage. To convert your existing mortgage please call a Renewal Specialist directly at 1-866-514-4896.

What happens if I do not send back my signed renewal acceptance by the maturity date?
If we do not receive a signed renewal acceptance form by the maturity date of the mortgage, we will automatically renew the mortgage into the 6-month fixed rate convertible mortgage.




Selling your home

Can I take my mortgage with me to a new property?
This is called “porting”. You can take your mortgage with you on approval and benefit from the existing terms of your mortgage. This option allows you to take advantage of the great interest rate that you have, and can also help reduce the costs associated with your move.

I am selling my home and the purchaser wants to take over the mortgage, is that possible?
Most MCAP mortgages are assumable. You can save the pre-payment charges if the purchaser of your home qualifies to take over the mortgage. An assumption application is available by contacting our Customer Service Specialists.

I want to stay with MCAP. Can I start a new term, and mortgage with you?
You may save a portion of the prepayment charges if you replace your mortgage with another one of the same amount or higher. This may be a better option for you than porting if there is a big difference in your interest rate vs current market conditions.

How to I begin the processes mentioned above?
The best thing to do is contact our Customer Service Specialists. They can complete an application with you right over the phone. If you would prefer we can e-mail an application to you as well. Once the application has been submitted an underwriter will inform you of all the terms and conditions with the port, assumption, or replacement deal.

Customer Service