Rocket Mortgage review

Our take on Rocket Mortgage

It’s easy to see why Rocket Mortgage is the largest home loan lender in the US and well reviewed in Canada. It’s a good choice for first-time homebuyers across all of Canada, offering helpful brokers and online tools to walk you through the process.

Its online application is quick and streamlined, making Rocket Mortgage a solid choice for homebuyers who like to independently work online. After you apply, you can choose whether you want to work in-person with a mortgage broker or continue the fully-online process.

But if you need a specialty loan or help to work around the standard qualifying requirements, this lender will be of little help.

Rocket Mortgage rates in Canada

Rates last verified April 9, 2024

Rocket Mortgage closing costs

While Rocket Mortgage does not explicitly state its closing costs on its website, it does estimate that closing costs typically fall between 1.5% and 4% of the home’s purchase price. It’s important to keep in mind that closing costs vary greatly depending on each specific selling process.

Closing costs cover costs like land transfer taxes, home inspection and appraisal fees, tax on the CMHC insurance cost and any legal fees. Your fees may also include:

• Origination fee. This fee covers administrative costs.
• Application fee. You may be charged a deposit to cover your credit report, appraisal and loan processing.
• Ongoing fees. Read through the fine print carefully to find out if your specific loan type is subject to any ongoing fees or costs, like early repayment fees or late fees.
• Third-party fees. You may have to pay fees for services from third parties, like an application fee for your private mortgage insurance or taxes on the home’s purchase.

Rocket Mortgage qualifications

To qualify for a loan with Rocket Mortgage in Canada, you’ll need a good minimum personal credit score, typically of 650 or above. However, a score of 740 or above will give you access to the best interest rates.

Rocket Mortgage will also look at your affordability when assessing potential mortgage approval. You’ll have a better chance of approval if the total cost of the mortgage you’re applying for (principal, interest and property taxes) does not exceed 39% of your pre-tax income, with your total debt payments not exceeding 44%.

You’ll need to pay a down payment of at least 5% for a mortgage, but if your down payment is less than 20% you’ll be required to pay for mortgage insurance – commonly known as CMHC insurance – of anywhere from 2.8% to 4%.

Required documentation

To apply for a mortgage, you’ll need to provide information:

• Contact information for each person listed on the loan
• Details about how much money is in each account that will be considered for approval, including chequing accounts, savings accounts, retirement accounts, stocks, and other assets.
• Income and employment details

How to apply for a mortgage with Rocket Mortgage in Canada

Use the steps below to apply for a mortgage:

1. Navigate to the Rocket Mortgage website and select the Estimate My Rate button.
2. Select whether you want to renew your mortgage, purchase a home or refinance your mortgage, then click Next.
3. Step through the options, answering questions about the property you plan to purchase or your current mortgage.
4. Enter your estimated credit score (learn out how to get your credit score here).
5. Enter your personal contact information.
6. View your customized loan options and select your loan to submit an application.

What types of mortgages can I get through Rocket Mortgage in Canada?

Rocket Mortgage offers mortgages for home purchases. If your goal is to lower your monthly payments or free up some equity in your home, for example, you could instead opt to refinance your mortgage. Since mortgage renewal is required every 5 years, Rocket Mortgage can also help you compare rates to ensure you’re locking in a good deal when it comes time to renew your mortgage.

Alternatives to Rocket Mortgage

Rocket Mortgage is a solid choice if you want to apply online and get answers fast. As a broker, it offers multiple loan options beyond the standard loans you’d expect to see from a bank. But if you want to consider direct lenders or want to explore more options, there are alternatives.

First time home buyers can see if you qualify to apply for any incentive programs, like the RRSP Home Buyers’ Plan, the First-Time Home Buyer Incentive and the First-Time Home Buyers’ Tax Credit.

Whether you choose a specific lender or use a mortgage broker, comparing your options is the best way to make sure you’re getting the best home loan for you.

Neo Mortgage

Go to site

---

Interest Rate (APR)

5.24%

---

Loan Term

5-year fixed rate

---

Provincial availability

Not available in Quebec

Homewise Mortgages

Go to site

---

Interest Rate (APR)

---

Loan Term

Varies

---

Provincial availability

Not available in Quebec

BMO Mortgages

Go to site

---

Interest Rate (APR)

5.61%

---

Loan Term

5 Year Fixed Rate

---

Provincial availability

All of Canada

Rocket Mortgage Canada reviews

Most customers speak highly of the responsive customer service of its mortgage specialists. The poor reviews mostly focus on either frustration around not getting approved or a lengthy information-gathering process where customers were required to send multiple rounds of documents over a long while.

Rocket Mortgage US is accredited with the BBB and has closed 1,009 customer complaints over the last three year.

Pros and cons of Rocket Mortgage

What is Rocket Mortgage in Canada?

Rocket Mortgage is the rebrand of the popular mortgage broker in Canada, Edison Financial. It launched in Canada in 2019 as Edison Financial under the parent company, Rocket Companies. In August 2022, it rebranded to Rocket Mortgage to align with its US counterpart.

It offers a fully online experience where you can apply for and receive a mortgage entirely online without having to enter a physical store. The company’s goal is to offer more modern, streamlined technology-based solutions to the mortgage application process.

When did Edison Financial become Rocket Mortgage?

On August 8, 2022, Edison Financial – a Windsor, Ontario-based mortgage broker company – changed its name to Rocket Mortgage with the aim of offering similar services as those available through its sister company in the US. While the company continued to offer mortgage broker services, it also now operates as a direct lender.