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Butler Mortgage at a glance
Butler Mortgage is a high-volume mortgage brokerage based in Ontario but serving all of Canada. It claims to have relationships with over 350 lenders.
- Operates throughout Canada with offices in the Greater Toronto Area, Vancouver and Calgary.
- Advertises the ability to shop rates from over 350 lenders across Canada.
- Large range of mortgage types, including new construction, second homes, investment properties and mortgages for self-employed people.
- Butler Mortgage co-founder, Dave Butler, was named the top Mortgage Broker in Canada by Canadian Mortgage Professional magazine from 2017 to 2020.
- Open & closed mortgages
- Fixed & variable-rate mortgages
- Construction mortgages
- Purchase Plus Improvement loans
- Investment property and second home/vacation home mortgages
- Home equity lines of credit
- Mortgages for self-employed people
Pros
- Works with a large network of lenders.
- Provides mortgage products for self-employed borrowers and a program to help clients improve their credit.
- Offers an ‘After-Approval Rate Guarantee.’
Cons
- Limited number of offices could be off-putting for borrowers accustomed to in-person service.
- Limited online application capabilities.
Butler Mortgage review
Butler Mortgage is a Toronto-based mortgage brokerage founded in the 1990s by Ron Butler. It has since expanded to several cities in Ontario, as well as B.C. and Alberta, but serves all of Canada.
The company offers a typical selection of mortgages, including open, closed, fixed and variable mortgages, as well as mortgages for second homes and investment properties. Butler also offers new construction loans, HELOCs and renewal/refinance services.
If you’re a self-employed borrower, first-time home buyer or new to Canada, Butler Mortgage advertises loan products and lenders that may be able to meet your needs. It’s unclear how well the company is suited to work with low-credit-score borrowers, although it does advertise services that can help clients repair their credit if needed.
Who is Butler Mortgage best for?
Butler Mortgage may be a good choice for any home buyers or refinancers who prioritize getting the lowest possible mortgage rate.
Butler Mortgage feature overview
Mortgage variety
- Fixed-rate mortgages.
- Variable-rate mortgages.
- Mortgages for primary residences, investment properties and second homes.
- Refinances and renewals.
- Credit repair.
- Home equity loans.
- Mortgages for self-employed home buyers.
- Purchase Plus improvement loans.
- Construction mortgages.
- Mortgages for new arrivals to Canada.
Ease of application
You won’t get far on your own when using the Butler Mortgage website. Most of the application process will need to involve one of Butler’s mortgage brokers.
- Online pre-qualification: No.
- Online pre-approval: No.
- Online mortgage application: Yes, but it’s essentially just an intake form.
- In-person option: Theoretically. There are a handful of Butler Mortgage offices across Canada, but they all have the same phone number and list the same brokers for each branch.
Mortgage rate transparency
Butler Mortgage publishes several fixed and variable mortgage rates on its website, including:
- Posted rates: Brokerages like Butler Mortgage don’t typically advertise lenders’ posted rates since they tend to be the highest rates these lenders offer.
- Special rates: Butler claims their advertised rates are their lowest rates, so most of them may already be discounted.
- APR: Butler Mortgage does not share annual percentage rate information on its site.
Other details:
- Range of terms: six months to 10 years.
- Make lump-sum payments: Pre-pay up to 20% of the original mortgage amount each year.
- Increase your payments: Raise your monthly mortgage payment by 20% annually.
- Rate hold: 120 days.
- After-Approval Rate Guarantee: After you’re approved, if a lender advertises a better mortgage interest rate that your mortgage provider won’t match, Butler lets you change lenders for free. The company also offers a guarantee that agrees to beat any rate or pay clients $500 cash at closing.
Customer satisfaction ratings
Customer review websites can be helpful, but keep in mind that the reviews aren’t verified and may not accurately reflect the average option of Butler customers; for example, happy or unhappy customers may be overrepresented in these reviews. Nevertheless, these sites are one way to learn about possible downsides to consider.
- Butler Mortgage had 4.7 out of a possible 5 stars, according to more than 930 customer reviews on Google, at the time of this writing.
- Butler Mortgage had a 3 out of a possible 5 stars, according to just two customer reviews on the Better Business Bureau website, at the time of this writing. Butler Mortgage has been accredited by the BBB since 2012, and has an A+ rating from the BBB itself.
- Butler Mortgage had 2 out of a possible 5 stars, according to over 40 customer reviews on Yelp, at the time of this writing.
Butler Mortgage’s website includes an official complaints policy. If you have any concerns about your mortgage, you can phone or email a “Chief Complaints Officer” who will respond to your concerns verbally within 48 hours. If you’re not happy with the outcome of the officer’s investigation, complaints can be reported to the Financial Services Commission of Ontario.
Butler Mortgage eligibility requirements
Butler Mortgage deals with hundreds of lenders, so providing eligibility requirements for each one is unrealistic. The eligibility requirements you’ll be expected to meet will generally include:
- Minimum credit score: Typically 680 at chartered banks, but lower-score options exist.
- Credit history: Established accounts in good standing, no recent negative marks.
- Income: Amount of income needed will vary depending on how much you want to borrow.
- Down payment amount: At least 5% for a home under $500,000. For homes between $500,000 and $999,999, you need 5% of the first $500,000 and 10% of the amount above $500,000.
- Debt service ratios: Your gross debt service ratio must not exceed 39%; your total debt service ratio must not exceed 44%.
- Type of employment and employment history: You must be able to demonstrate at least two years of consistent employment.
The Butler Mortgage website notes that a borrower’s “…income and credit do not have to be perfect. With 20% down or at least 20% equity, Butler Mortgage can obtain a mortgage for almost any income or credit situation.”
How to apply for a mortgage with Butler Mortgage
You can start the application process with Butler Mortgage by clicking the “Apply Now” button near the top of the brokerage’s home page.
After you fill out a simplified application form, which won’t take more than a minute or two, you’ll be contacted by someone at Butler Mortgage to discuss your mortgage options.
Alternatives to Butler Mortgage
If you decide Butler Mortgage is not for you, you can compare mortgage rates from other Canadian lenders and brokers to find the best mortgage rate for your needs.
| True North Mortgage | RBC Mortgage | First National Financial | |
|---|---|---|---|
| Lender type | Mortgage brokerage. | Big Bank lender. | Non-bank lender. |
| Service area | National. | National. | National. |
| In-person service? | Yes. | Yes. | Yes. |
| Ease of application | Easy (online, phone, in-person). | Easy (online, phone, in-person). | Difficult (no online or in-person option). |
| Mortgage variety | Above average. | Average. | Average. |
Frequently asked questions about Butler Mortgage in Canada
Butler Mortgage was founded in the 1990s in Toronto by Ron Butler. It is still run by the Butler family, including Dave Butler, an award-winning broker in his own right.
As is the case with many brokerages in Canada, Butler Mortgage brokers make money via commissions paid by loan providers, not borrowers.
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