Question 1

How much can I afford?

Accepted Answer

That depends on your income, debts, and the current qualifying rate. A pre-approval gives you a real number, not a guess. It takes about 15 minutes to get started.

Question 2

What is a mortgage pre-approval, and do I need one?

Accepted Answer

A pre-approval locks in a rate for up to 120 days and tells you exactly what you qualify for. It also shows sellers you are a serious buyer. There is no cost and no obligation.

Question 3

How much do I need for a down payment?

Accepted Answer

In Canada, the minimum is 5% on homes up to $500,000, then 10% on the portion between $500,000 and $1,499,999. Homes at $1.5 million or above require 20% down. If your down payment is under 20%, you will need mortgage default insurance (CMHC, Sagen, or Canada Guaranty).

Question 4

What is a mortgage stress test?

Accepted Answer

Every borrower in Canada must qualify at the higher of their contract rate plus 2%, or 5.25%. This is a federal rule, not a lender choice. It is designed to make sure you can handle payments if rates rise.

Question 5

Fixed or variable — which is better?

Accepted Answer

Neither is always better. Fixed gives you certainty. Variable gives you flexibility and historically costs less over time. The right answer depends on your comfort with risk, your timeline, and what is happening with rates.

Question 6

What factors affect the rate I get?

Accepted Answer

Credit score, down payment size, amortization period, property type, and whether the mortgage is insured. A broker compares dozens of lenders to find the best fit for your specific situation.

Question 7

What is the difference between a mortgage broker and a bank?

Accepted Answer

A bank offers its own products. A broker works with dozens of lenders, including banks, credit unions, and alternative lenders, to find the best rate and terms for your file. There is no cost to you. The lender pays the broker.

Question 8

My renewal is coming up. What should I do?

Accepted Answer

Do not just sign what your lender sends. That renewal letter is their opening offer, not their best one. A 15-minute call with a broker can often get you a better rate or better terms. Start the conversation at least 120 days before your maturity date.

Question 9

Can I refinance my mortgage?

Accepted Answer

Yes. You can refinance up to 80% of your home's current appraised value. Common reasons include debt consolidation, home renovations, or accessing equity for an investment. There are costs involved (legal fees, appraisal, and possibly a prepayment penalty), so we always run the numbers first to make sure it makes sense.

Question 10

What happens if I break my mortgage early?

Accepted Answer

You will face a prepayment penalty. For variable-rate mortgages, it is typically three months of interest. For fixed-rate, it is the greater of three months of interest or the Interest Rate Differential (IRD), which can be significant.

Question 11

What programs are available for first-time buyers in Ontario?

Accepted Answer

Several. The First Home Savings Account (FHSA) lets you save up to $8,000 per year tax-free for a down payment. The RRSP Home Buyers' Plan lets you withdraw up to $35,000 tax-free. The federal First-Time Home Buyer Incentive and the Ontario land transfer tax rebate (up to $4,000) can also help.

Question 12

Should I make a condition-free offer?

Accepted Answer

Understand the risk first. If the lender's appraisal comes in below the purchase price, you are responsible for the difference in cash. If the home inspection reveals major issues, you have no recourse. We help you understand the real exposure before you decide.

Question 13

I am self-employed. Can I still get a mortgage?

Accepted Answer

Yes. Many lenders work with self-employed borrowers. You may qualify using stated income programs, business financials, or bank statements instead of traditional T4 income. The key is matching you with the right lender for your situation.

Question 14

Is there a cost to use a mortgage broker?

Accepted Answer

For most residential mortgages, no. The lender pays the broker's fee. In some cases involving private or alternative lending, there may be a broker fee, and we always disclose that upfront before you commit to anything.

Question 15

How long does the mortgage process take?

Accepted Answer

From application to closing, typically 30 to 45 days for a purchase. Refinances can take a bit longer depending on the lender. Pre-approvals can be done in a day or two.

Mortgage FAQ

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