Answers

The minimum is 5% on the first $500,000 of the price and 10% on the portion from $500,000 to $1.5 million. Homes priced at $1.5 million or more need at least 20% down. With less than 20% down, you also pay for mortgage default insurance.

It is the rate you have to qualify at, which is the greater of your contract rate plus 2% or 5.25%. It applies to insured and uninsured mortgages at federally regulated lenders. Your actual payments are still based on your contract rate.

Most pre-approvals hold a rate for 90 to 120 days, depending on the lender. A pre-approval is not a final approval. The lender still reviews the property and your documents after your offer is accepted.

Plan for land transfer tax, legal fees, title insurance, a home inspection and property tax adjustments. Budget about 1.5% to 4% of the purchase price for closing costs. In Toronto, you pay both the Ontario and the municipal land transfer tax.

You need mortgage default insurance when your down payment is less than 20%. The premium is based on how much you borrow compared with the price, and it is usually added to the mortgage. In Ontario, the provincial sales tax on the premium is paid at closing.

Yes, most lenders accept a gift from an immediate family member. They usually want a signed gift letter confirming it does not need to be repaid, and proof the funds are in your account before closing.

A First Home Savings Account lets first-time buyers save up to $8,000 a year, to a lifetime limit of $40,000. Contributions are tax-deductible, and qualifying withdrawals for a first home are tax-free.

The Home Buyers' Plan lets you withdraw up to $60,000 from your RRSP toward a first home, and a spouse or partner can do the same. You repay it over 15 years. You can use it together with an FHSA.

Yes. First-time buyers who are Canadian citizens or permanent residents, and have never owned a home anywhere in the world, can get a refund of up to $4,000 on the Ontario land transfer tax. Toronto offers a separate rebate on its municipal land transfer tax.

Yes. Since December 2024, first-time buyers can choose a 30-year amortization on an insured mortgage, which applies when you put less than 20% down. With 20% or more down, many lenders already offer 30 years.

It depends on the program. For the Home Buyers' Plan, you generally qualify if you have not lived in a home owned by you or your spouse in the current year or the previous four years. The Ontario land transfer tax refund uses a stricter test, so each program needs its own check.

About four months before your maturity date. Many lenders will hold a rate for a switch around 120 days out, which gives you time to compare.

Yes. At maturity, you can move your mortgage to another lender without a prepayment penalty. There may be small discharge or appraisal costs, and new lenders often cover the legal fees on a straight switch.

Not always. Since November 2024, an uninsured mortgage moving to a federally regulated lender at renewal does not need to requalify, as long as the amount and amortization stay the same.

Compare it with the market first. The first renewal offer is not always the lender's best, and it helps to know what other lenders would offer before you sign.

Many lenders move you into a short open term or renew you automatically, often at a rate higher than you could negotiate. You can usually still switch afterward. Starting early keeps more choices open.

Most lenders refinance up to 80% of your home's appraised value, minus what you already owe. That limit includes any home equity line of credit secured on the property. You also need to qualify at the stress test rate.

It can be when high-interest debt costs more than the penalty and fees to refinance. Moving credit card debt into a mortgage lowers the rate but spreads it over more years, so the total interest matters. We lay out both numbers side by side.

On a variable mortgage, the penalty is usually three months' interest. On a fixed mortgage, it is usually the greater of three months' interest or the interest rate differential. Lenders calculate the differential in different ways, so ask for the exact figure in writing.

A home equity line of credit is a revolving line of credit secured by your home. Combined with your mortgage, it can reach up to 80% of your home's value, and the line itself is usually limited to 65%.

Sometimes. Banks usually need good credit, but some alternative and private lenders focus more on your equity. The rate and fees are higher, so the plan should include getting back to a regular lender.

Yes, but you usually pay a prepayment penalty to break the current mortgage. Some lenders let you blend your current rate with a new one when you add funds, which can reduce or avoid the penalty.

Most lenders ask for two years of T1 Generals and Notices of Assessment, proof that no taxes are owing, and your business registration or articles of incorporation. If you are incorporated, they usually add two years of company financial statements.

Yes. Lenders usually start from the income on your tax return after deductions, so large write-offs lower the income they count. Some lenders add back certain non-cash expenses, such as depreciation, and the rules differ by lender.

Sometimes. Some lenders will look at a shorter history if you stayed in the same line of work, for example moving from an employee role to running your own business in the same field. Expect more documents and possibly a larger down payment.

Both can count as income. Salary shows on a T4 and dividends on a T5, and lenders often average dividend income over two years. Some lenders also consider part of the retained earnings in your company, so plan the mix with your accountant before year end.

Some do. A few lenders will consider part of the retained earnings in your company, usually based on your financial statements and your ownership share. It varies by lender.

It is a mortgage where the lender accepts a reasonable income for your line of work instead of relying only on the figure on your tax return. These programs are mostly offered by alternative lenders, often with a larger down payment and a higher rate.

You borrow against your home's value and make no required monthly payments. Interest is added to the balance, and the loan is repaid when you sell, move out or after the last borrower passes away. You must be 55 or older.

Up to about 55% of your home's value, depending on your age, the type of property and where it is. Older borrowers can usually access a larger share.

You keep ownership as long as you live there and meet the terms. You need to keep paying property taxes and home insurance and keep the home in good repair.

Rates are higher than on a regular mortgage, and the balance grows over time. That reduces the equity left for you or your estate. There can also be a penalty if you repay early.

It depends on your income and whether you want monthly payments. A HELOC usually has a lower rate but requires payments and enough income to qualify. A reverse mortgage has no required payments but a higher rate.

Usually at least 20% for a property you will not live in. If you live in one unit, a two-unit home follows the same 5% and 10% tiers as a single home, and a three or four unit home needs at least 10% down.

Yes, but each lender does it differently. Some add a percentage of the rent to your income, and others subtract it from the property's expenses. The method can change how much you can borrow.

Yes. Many investors refinance or use a HELOC on their home to fund the down payment on a rental. You need to qualify for both mortgages, and interest on money borrowed to earn rental income may be tax-deductible, so check with your accountant.

There is no legal limit, but many lenders cap how many properties or how much total mortgage they will hold for one borrower. As your portfolio grows, you often move to lenders that focus on investors.

Yes. Most lenders need proof of permanent residence or a valid work permit, plus proof of employment in Canada. Some programs accept limited Canadian credit history.

Yes, many lenders work with work permit holders and look at your job in Canada and how long your permit has left. Federal rules on non-Canadians buying residential property also apply, with exceptions such as some work permit holders, so confirm your eligibility with a lawyer first.

Sometimes. Some lenders accept other proof, such as a record of rent payments or a credit report from your home country. Opening a Canadian credit card early and paying it in full each month helps build your file.

Yes, most lenders accept funds from abroad. They want a clear record of where the money came from, and it usually needs to be in a Canadian bank account some time before closing.

It depends on your status, your credit history and the lender. Some newcomer programs allow the standard minimum down payment, while others ask for more when credit history is limited.

It is a loan from a private lender or mortgage investment corporation instead of a bank. Approval depends mostly on the property and your equity. Terms are usually short, often one year.

Rates are higher than bank rates, and there is usually a lender fee plus any brokerage fee. Every fee is disclosed to you in writing before you commit. Legal and appraisal costs are extra.

It can make sense as a short-term bridge, such as after a credit setback or when a regular lender cannot approve you in time. The plan should include how you move to a regular lender when the term ends.

A second mortgage sits behind your first mortgage on title and usually comes from a private lender. It lets you access equity without breaking your first mortgage, at a higher rate.

Commercial lenders focus on the income the property earns and how well it covers the payments. Down payments are usually larger, and files need more reports, such as an appraisal and sometimes an environmental review.

Usually, yes. Residential buildings with five or more units are generally financed as commercial, with different programs and documents.

Yes. We work with clients across Durham Region, including Bowmanville, Port Perry, Blackstock, Oshawa and Whitby, as well as Toronto. We are licensed in Ontario.

No. Most of the process happens by phone and online. You can book a call or start your application online.

Most residential mortgages are paid by the lender, not by you. On private or commercial files, any fee is disclosed to you in writing before you commit.

Yes. We work directly with accountants and financial planners. It helps most on self-employed files and larger financial decisions.

You work with Jesse and our team. Maria, our client care lead, keeps your file moving from application to signing.

We compare options across many lenders. Then we explain the differences so you can choose.