We understand that navigating real estate investment and short-term mortgage lending can raise lots of questions. To support you in making informed decisions, we’ve compiled answers to the most common inquiries about our processes, requirements, and lending guidelines. Transparency and clear communication are at the heart of what we do, and this guide will help real estate investors navigate our offerings and policies.

How quickly can you provide funding? 

Calvert Home Mortgage can typically provide a Commitment Letter within 1 business day, and funding on a rush basis in as little as 1-2 business days in Alberta and 1-3 business days in Ontario upon receiving all required documents.

This quick turnaround time gives you the advantage of moving fast on investment opportunities, ensuring you can secure properties without unnecessary delays. We understand that timing is critical for real estate investors, and our quick and easy processes empower you to act quickly and stay ahead in a competitive market.

Can the down payment, renovation costs, and carrying costs come from borrowed funds? 

Yes, we allow the down payment, renovation costs, and carrying costs to come from borrowed funds.

We do expect you to invest some of your own funds and demonstrate the ability to cover our mortgage and any borrowed amounts. We also require transparency about the source of these funds. If they come at a cost, we’ll assess the payment obligations and ensure they align with our lending criteria. Gifted funds are accepted, as long as they are properly documented.

Our goal is to provide you with the flexibility to make your investments work for you while ensuring the financials align with our lending guidelines.

Do you provide renovation funds? 

As a short-term residential mortgage lender focused on supporting real estate investors, we understand that renovations are often a critical part of your investment strategy.  While we don’t directly fund renovations, we offer flexibility by allowing you to use equity from another property you own as security. This equity can be used to access additional funds for renovations, larger down payments, or potentially lowering interest rates.

The loan-to-value (LTV) we consider on blanket properties depends on multiple factors, and we are here to guide you through the process and ensure your financing aligns with your investment goals.

We require proof of funds for:

• Down payment
• Renovations
• Closing and carrying costs

At Calvert Home Mortgage, we’re committed to supporting your growth as a real estate investor, providing access to the capital you need to succeed.

Is the down payment for a flip mortgage based on the purchase price or the after-repair value (ARV)? 

For flip mortgages, the down payment is based on the property’s purchase price, not the after-repair value (ARV). This means you can secure financing with a smaller initial investment, allowing you to focus more capital on renovations and improvements.

We know that maximizing your investment potential is key, so we ensure the down payment structure is designed to support your project’s success. With the purchase price as the basis, you can move forward with confidence, knowing that your down payment won’t be inflated by projected property values post-renovation.

Do I have to pay the fee upfront?

No, we don’t require any upfront fees. The fee is added to the mortgage and paid upon payout. This way, you keep the money in your pocket until the property is exited. We don’t get paid until you’re out, which means we’re committed to your success throughout the process.

What happens if the mortgage extends past the 6-month term? 

We offer fully open mortgages with no prepayment penalties and a no renewal fee option for borrowers in good standing.

Our loans are typically designed to be short-term (12 months or less), but we understand that timelines can shift. If you need more time to exit through resale or refinancing, we can extend the loan to ensure your project’s success. For loans extending beyond 12 months, we can transition the mortgage into an amortized loan.

This flexibility allows you to stay on track with your projects without worrying about rigid timelines.

Where do you lend? 

We provide funding to qualified borrowers throughout Alberta and Ontario, focusing on areas with strong market demand, as follows:

• 100k+ population, or 25 KM driving distance within these city limits
• 50k+ population, or 10 KM driving distance within these city limits
• 10k+ population within city limits**
• Rural**

*Some restrictions apply.

**Due to greater volatility in demand and value of rural land and small town properties, we reduce the allowable Loan to Value (LTV) in these areas. Increased rates and fees will also apply.

Our approach ensures that you have access to financing where opportunities exist while maintaining responsible lending practices.

Do you lend in small markets? 

For properties in small markets (populations under 10,000), we may consider lending if another property in a larger center is blanketed as additional security. This approach ensures you have better access to capital while investing in areas with fewer comparables and lower resale potential.

Do you lend on renovation-heavy projects? 

Yes, properties with significant renovations are assessed based on after-repair value (ARV). This allows you to access more capital upfront, providing great flexibility for your projects.

Do you offer financing for out-of-province borrowers? 

Yes, as long as the property is in Alberta or Ontario, and you are a resident of Canada. We’ll want to ensure you have a clear plan for managing the project remotely – supporting you to stay on track and maximize success.

What is the maximum Loan-to-Value (LTV) based on property type? 

LTV varies depending on the property and loan type and must include all associated fees. These options provide you with the funding you need for a wide range of property types and projects, helping you to maximize opportunities while balancing risk effectively.

Here’s a breakdown:

• Single-Family Homes
  • In large or medium population markets (50,000+), the maximum LTV is 80%.
  • For Term Purchases, Debt Consolidation, and Equity Take Outs, the maximum LTV is 75%.
• Townhomes
  • In large or medium population markets, the maximum LTV is 80% ARV for Flip/BRRR mortgages.
  • For Term Purchases, Debt Consolidation, and Equity Take Outs, the maximum LTV is 75%
• Condos
  • In large or medium population markets, the maximum LTV is 75%. We don’t typically lend on condos in small markets or rural areas due to lower marketability and higher volatility.

For Bridge mortgages, we can consider up to 85% LTV on firmly sold properties and up to 80% LTV on listed or conditionally sold properties. We will consider a Bridge even if the property is still being listed on the MLS with a Licensed Real Estate Agent.

Why do you restrict lending in certain markets? 

We prioritize markets with strong resale potential and liquidity to give real estate investors a faster, more reliable exit strategy. Properties in smaller or less active markets can take longer to sell, which increases your risk, ties up capital, and impacts your investment returns.

Do you fund multi-family or construction properties? 

We provide financing for multi-family and select commercial properties, such as office and retail spaces. This enables you to diversify your portfolio with income-generating projects. While we don’t fund industrial properties, this targeted approach ensures you can focus on high-demand property types with strong marketability, supporting your ability to build wealth through a balanced investment strategy.

What about properties with special circumstances, like post-tension units? 

We may consider these if a recent inspection confirms the structural integrity of the cables. The maximum LTV is capped at 70%, and we’ll need a clear exit strategy. If refinancing is part of the plan, we’ll need to ensure it can be successfully refinanced out of our loan.

These requirements help you minimize risk, protect your financial interests, and support a successful project outcome.

Why is getting pre-approved important?

As a real estate investor, speed is key in a competitive market. Getting pre-approved means you’re ready to act fast, with the confidence that financing is in place. It allows you to make firm offers without hesitation, giving you a valuable edge in securing profitable deals.

How long is a pre-approval valid? 

Our pre-approvals are valid for up to one year. This gives you the flexibility to pursue multiple opportunities without starting the process from scratch each time. If another project arises within that year, we only require updated documents to move forward, saving you time and effort in securing financing.

What does pre-approval mean with Calvert Home Mortgage?

Our pre-approvals focus on you, not just the property – giving you the confidence to act fast on investment opportunities. You’ll work directly with our decision-makers, the Underwriters. Property valuations are done in-house at no cost within 1-2 business days, saving you time and money and empowering you to make informed decisions.

It’s important to note that a pre-approval is not a guarantee of a mortgage. It is a personal pre-approval that helps streamline the process when making a firm offer on a property. Final approval is subject to a full application review, property details, and underwriting requirements.

We require:

• Completed application
• Most recent Notice of Assessment (NOA)
• Credit check
• Proof of capital for Flip/BRRR projects

For real estate investors, this means you can call us, get pre-approved, and move forward with confidence, knowing we’re here to support your next investment.

What is the best way to submit an application? 

You can easily submit your application through any of the following methods:

• Submit an inquiry online. Click here to get started.
• Email us directly or give us a call – we pick up the phone and are always happy to chat!
  • For Alberta inquiries, contact Kaelan Nelson
    Email: kaelan@chmic.ca
    Cell: 587-585-4571
    Office Phone: 403-278-0249

• • For Ontario inquiries, contact Dan Werner.
    Email: dan.werner@chmic.ca
    Cell: 368-992-1100
    Office Phone: 1-888-752-4642

Whichever method you choose, we’re ready to assist you in getting your application processed quickly and smoothly.

How do in-house valuations work for mortgage applications? 

To better serve you, we have an expert team of in-house Real Estate Analysts who handle valuations, saving you time and money. Instead of waiting for an appraisal, our team uses the same direct comparison approach an appraiser would – comparing your property to similar recently sold properties. These in-house valuations are free and typically completed within 1-2 business days.

If your deal involves a flip, we’ll request a detailed renovation plan and budget to estimate the property’s value after renovations.

Appraisals are required for properties valued over $1.5 million or multi-family properties with more than four units.

What are your requirements for joint venture deals? 

At different stages of your real estate investment journey, joint ventures (JVs) might be the strategy that works best for you. We’re here to support you, and we may even connect you with a JV partner to help maximize your opportunities.

To move forward, we require:

• Joint venture agreement
• Proof of funds
• Completed third-party information form

Can all documents be signed remotely? 

Yes, we offer remote signing for your convenience, ensuring a more effortless experience. We can authorize the lawyer to proceed with remote mortgage signing and attach Video Signing Affidavits, provided they comply with all relevant provincial guidelines (including legislation, land title, and law society rules). The lawyer must also report on their actions and provide all required signed documentation, along with proof of the signing process.

This option is part of our commitment to making your experience as smooth and efficient as possible.

What if taxes are owed? 

We understand that taxes are a part of your business landscape. Here’s how we approach them:

• Personal Taxes: A balance may be acceptable, but if it is significant, we will need to understand the reason and your plan for repayment. We’re focused on working with you to ensure your long-term success.
• Sole Proprietors & Corporate Taxes: Outstanding GST/HST and Excise Tax must be settled before funding. This ensures your deals move forward smoothly, without financial roadblocks.

We’re here to help you navigate the financial aspects of your investments so you can focus on growing your portfolio.

At Calvert Home Mortgage, we focus on delivering a better mortgage experience – built on trust, transparency, and results. We’re known for our low-stress, common-sense approach and aim to deliver fast, flexible, reliable solutions for short-term mortgage needs. Whether it’s navigating the pre-approvals, structuring joint ventures, or addressing unique property scenarios, we’re here to support your personal and financial success.