Donna Thornton
Mortgage Powered Financial Group Inc.
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Who is Donna Thornton, anyways?
December 22, 2024
Meet Donna: Your Trusted Mortgage Broker
Hi there! I’m Donna, and I’m thrilled to share a bit about myself, my journey, and my passion for helping clients achieve their homeownership dreams.
From Logistics to Mortgages: A Journey of Purpose
My career in the mortgage industry began back in 2007. At the time, my husband, who was an engineer, decided to follow his dream of becoming a Police Officer. With his shift work schedule and our desire to start a family, I knew a traditional Monday-to-Friday 9-to-5 job wouldn’t work for us.
At that time, I was working as a Logistics Manager importing aluminum from China during the onset of a recession. Then, a twist of fate occurred. My former employer, Andrew Miller, generously laid me off with six months of full pay. (Huge shout-out to Andrew—your support changed my life!) This gift of time enabled me to pivot and start my journey in the mortgage industry.
A Fixer-Upper and a Mission
My husband and I purchased our first home in 2005—a fixer-upper that taught us a lot about the world of mortgages. Unfortunately, the mortgage product we were placed in included a bonafide sales clause, which prevented us from refinancing our higher-interest renovation debt into our mortgage. This costly mistake sparked a mission: to ensure every homeowner fully understands their mortgage and knows it’s working in their best interest.
A Family and a Career Take Shape
Not long after starting my mortgage career, my husband and I welcomed twins, Matthew and Emily. Life became wonderfully hectic, and the fun truly began! The road to becoming an award-winning Mortgage Broker was anything but linear, but it has been the most rewarding journey of my life.
Helping Homeowners, One Mortgage at a Time
I’m passionate about working with:
- First-Time Homebuyers: Guiding clients through one of the most exciting times in their lives never gets old.
- Self-Employed Individuals: I love helping entrepreneurs and business owners—who traditional banks often overlook—achieve their dreams of homeownership or expand their businesses by leveraging home equity.
- Clients 55+: I’ve spent the past several years helping older homeowners access their home equity to design the retirement of their dreams. The modern reverse mortgage is a fantastic tool for retiring in style!
A Personal Glimpse
At home, my life is filled with love and adventure. My twins, Matthew and Emily, are almost sixteen, and my husband continues to thrive in his police career. Our family includes two dogs (Gracie and Jackson) and two cats (Charlie and Zoey). I live for travel and am always planning our next big adventure!
Giving Back to the Industry I Love
The mortgage industry has provided my family and me with countless opportunities, and I’m deeply committed to giving back. As a facilitator with Mortgage Professionals Canada, I help newcomers learn and grow. I also teach the Ontario Mortgage Agent Course, the Private Mortgage Course, and the Broker Course. It’s a privilege to meet and mentor so many amazing people.
In April 2024, I partnered with Meagan Walker to found Mortgage Powered Financial Group. Together, we created a brokerage that prioritizes collaboration over competition. Our agents and brokers thrive with:
- Twice-weekly team Zoom meetings
- Monthly in-person lender days
- Twice-annual Professional Development Days
Our culture is everything to us, and we’re building something truly special.
My Philosophy
As your Mortgage Broker, I promise to:
- Always work to earn your business.
- Operate ethically and in your best interest, even when tough conversations are necessary.
- Stay at the forefront of industry knowledge through continued education and attending events.
I believe that just because we can do something doesn’t mean we should. My commitment to honesty and integrity ensures that I’m always working in your best interest.
Looking Ahead
I’m grateful for the opportunity to help clients on their homeownership journeys. Whether you’re buying your first home, refinancing, starting a business, or planning your retirement, I’m here to guide you every step of the way.
Let’s make your dreams a reality—together!
Understanding the New Mortgage Rules: Insured vs. Insurable Mortgages
December 22, 2024
If you’ve been keeping an eye on the mortgage industry in Canada, you’ve likely noticed some recent changes around insured and insurable mortgages. These adjustments impact how much you can borrow and the income required to qualify. Let's break it all down so you can understand what it means for you as a homebuyer or homeowner.
What Are Insured and Insurable Mortgages?
Before diving into the changes, let’s revisit the basics:
- Insured Mortgage: This applies to purchases when a buyer puts less than 20% down on a home. Mortgage insurance is mandatory in this case and is provided by organizations like CMHC, Sagen, or Canada Guaranty.
- Insurable Mortgage: These are for purchases with a down payment of 20% or more that meet specific criteria set by mortgage insurers. Lenders often “bulk insure” these mortgages to reduce their own risk.
The key difference lies in who pays for the insurance. With insured mortgages, the borrower foots the bill. For insurable mortgages, the lender typically pays the insurance premium.
What Has Changed?
Recent changes have expanded the criteria for insurable mortgages and adjusted some rules to help more buyers access homeownership. Here's a summary of the key updates:
- Maximum Purchase Price for Insurable Mortgages
- Insurable mortgages are now available for homes up to $1.5 million, a significant increase from the previous threshold.
- Amortization Period for First-Time Homebuyers
- First-time homebuyers with insurable mortgages can now access a maximum amortization period of 30 years, giving them more flexibility in managing monthly payments.
- Stress Test Adjustments
- All borrowers must qualify under the mortgage stress test, which is set at either the mortgage rate plus 2% or 5.25%, whichever is higher.
- Qualification Rules for Insurable Mortgages
- Lenders are becoming stricter about qualifying borrowers for insurable mortgages, especially in terms of debt-service ratios and property types.
How Much Income Do You Need to Qualify?
The income required to qualify for the highest mortgage amount depends on factors like the purchase price, down payment, and interest rates. Here’s an example based on current rules:
- Purchase Price: $1,499,999.99 (maximum for insurable mortgages)
- Down Payment: For insured mortgages, the down payment is 5% of the first $500,000 and 10% of the portion above $500,000. For this scenario, the down payment would be $124,999.99 ($25,000 on the first $500,000 and $99,999.99 on the remaining $999,999.99).
- Mortgage Amount: $1,375,000
- Interest Rate: 4.45%
- Amortization: 30 years (for first-time homebuyers)
- Insurance Premium: $57,708 (plus GST, payable to the solicitor on closing)
- Estimated Monthly Payment: $7,250 (including principal and interest, excluding property taxes and other costs).
To qualify for this scenario under the stress test (qualifying rate of 6.45%), you would need an annual household income of approximately $220,000 to $240,000, depending on your other debts.
What Does This Mean for Buyers?
The updated rules offer greater flexibility and purchasing power, especially for first-time homebuyers:
- First-Time Homebuyers: The ability to buy a home up to $1.5 million with a lower down payment and an extended amortization period can help first-time buyers enter the housing market sooner.
- Move-Up Buyers: Move-up buyers can purchase a more expensive home with less than 20% down, but they will not qualify for the 30-year amortization period. Instead, they must adhere to the standard 25-year limit for insured mortgages.
Next Steps
Navigating these changes can be complex, but you don’t have to do it alone. As a mortgage professional, I’m here to guide you through the process, help you understand your options, and find the best solution for your needs.
Whether you’re buying your first home or refinancing your current mortgage, let’s work together to create a plan that fits your budget and long-term goals.
What Does Donna Think?
Let’s be real—these changes probably won’t help most homeowners. The reality is that many Canadians simply don’t have the high incomes needed to qualify for the maximum purchase price under these new rules. However, I do see this as a positive step for first-time buyers, especially those looking at homes in the $1,000,000 to $1,250,000 range.
I’m glad that first-time homebuyers now have access to a 30-year amortization period—it makes monthly payments much easier to handle. On the flip side, I’m concerned about the cost of high-ratio mortgage insurance. For example, on a $1,375,000 mortgage, the insurance premium could top $50,000. That’s a hefty price tag for many buyers.
Honestly, this feels more like a political move than a meaningful solution to Canada’s housing challenges. With an election year ahead, it’s clear the government is trying to score points, but I’m not convinced this will benefit most Canadians in a substantial way.
Reach out today to get started or ask any questions you have about the new rules. Together, we’ll ensure you’re ready to achieve your homeownership dreams in 2025 and beyond!
Until next time. May your home be cozy, your mortgage manageable, and your coffee strong!
Donna Thornton
Principal Broker & Co-Founder
Mortgage Powered Financial Group
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