Everything you need to know before your first call.
Before You Decide
Questions I get asked most.
What does a mortgage broker do?+
A mortgage broker works for you, not the bank. I compare options from major banks, credit unions, and alternative lenders across Ontario to find the best mortgage solution based on your needs. I also help you determine what you're comfortable paying, not just what you qualify for. Key benchmarks: GDS (Gross Debt Service) max ~39% of income for housing costs; TDS (Total Debt Service) max ~44% including all debts.
What is the minimum down payment in Ontario?+
5% for homes up to $500,000. 5% on the first $500K plus 10% on the portion up to $1M. 20% minimum for homes over $1M.
Do I need mortgage insurance?+
If your down payment is less than 20%, you'll need insurance through CMHC, Sagen, or Canada Guaranty. This insurance protects the lender and is added to your mortgage.
What is a mortgage pre-approval?+
A pre-approval confirms how much you can borrow, holds an interest rate for up to 120 days, and strengthens your offer when buying a home. This should always be your first step.
What's the difference between fixed and variable rates?+
Fixed rate: same payment and rate for the entire term. Variable rate: rate changes with the Bank of Canada interest rate.
Which is better: fixed or variable?+
It depends on your comfort with risk, market conditions, and your long-term plans. There's no one-size-fits-all answer. I help you choose the right strategy.
What is amortization?+
Amortization is the total time to pay off your mortgage. Most common: 25 years. First-time buyers (insured): up to 30 years.
How long is a mortgage term?+
Your term is the length of your contract, not the full payoff period. Most common: 5 years. Options range from 6 months to 10 years.
Do I pay a mortgage broker?+
In most cases, no. The lender pays the broker. If a fee applies (usually for private or alternative lending), it is always disclosed upfront.
What documents do I need?+
Typically: government ID, proof of income (pay stubs, T4s, Notice of Assessment), employment letter, down payment confirmation, and credit information.
Can I use gifted funds for my down payment?+
Yes. Ontario lenders allow gifted down payments from immediate family members, with a signed gift letter.
What are closing costs in Ontario?+
Expect 1.5%-4% of the purchase price, including legal fees, title insurance, and Land Transfer Tax. In Toronto, buyers also pay a municipal land transfer tax (double tax).
What is the First-Time Home Buyer Land Transfer Tax Rebate?+
Eligible buyers in Ontario can receive up to $4,000 rebate provincially and up to $4,475 extra in Toronto.
Can I pay off my mortgage faster?+
Yes! Most mortgages allow lump-sum payments (typically 10-20% annually), increasing regular payments, and switching to accelerated payment schedules.
What happens if I break my mortgage early?+
You may pay a penalty: 3 months' interest for variable, or an Interest Rate Differential for fixed (which can be much higher).
Can I refinance my mortgage?+
Yes. You can refinance to access home equity, consolidate debt, or lower payments and change terms.
How long does approval take?+
Pre-approval: 1-2 days. Full approval: typically 5-10 business days.
Can I get a mortgage if I'm self-employed or have bad credit?+
Yes. There are options in Ontario including alternative ("B") lenders, private lenders, and stated income programs.
Why use a mortgage broker instead of a bank?+
A bank offers one set of products. A broker offers multiple lenders, more flexibility, and better chances of approval in complex situations.
Is the lowest rate most beneficial?+
Most people focus only on interest rates, but what really matters is flexibility, penalties, and long-term strategy. The right mortgage can save you thousands, not just today, but over years.