Your next mortgage.
Understand the numbers.

A mortgage is a loan secured on property. You repay principal and interest under the contract; failure to meet your obligations can allow the lender to enforce its security.

The term is the period your mortgage contract applies. At maturity, repay or renew any outstanding balance. It differs from the full amortization period.

Amortization is the time to repay the loan. Insured mortgages generally allow 25 years, or 30 for eligible first-time buyers or new-build purchasers. Uninsured limits depend on the lender.

Market conditions, funding costs, term, credit history, property and product conditions influence your rate. The Bank of Canada’s policy rate does not directly set every mortgage rate.

Principal is the outstanding loan balance. Interest is the cost of borrowing it. A standard mortgage payment includes both.

Payments depend on balance, rate, amortization, payment frequency and compounding. Variable-rate products may have adjustable or fixed payments; check your contract.

An open mortgage permits extra payments or full repayment without a prepayment penalty under its terms. Its rate may be higher than a comparable closed product.

A closed mortgage restricts additional repayment. Exceeding its privileges or ending the contract early may trigger a prepayment penalty.

Banks, credit unions, mortgage finance companies and alternative or private lenders offer mortgages. Compare fees, terms and regulatory protections as well as rates.

A licensed mortgage professional connects borrowers with lenders and explains available options. They do not necessarily access every lender. Ask about compensation, fees and the lenders they represent.

Compounding affects borrowing costs. This site assumes a nominal annual rate compounded semiannually. Actual products can differ; verify the disclosed rate and compounding frequency.

Review your budget, debts, down payment and closing costs. Pre-approval helps estimate a purchase budget, but the maximum estimated loan is not necessarily affordable for you.

Apply through a lender or brokerage with income, asset, debt and credit information. Confirm any rate hold, expiry date and conditions in writing; these vary by lender.

No. Final approval depends on the property, valuation, document verification and your financial circumstances. A conditional pre-approval is not a funding guarantee.

Lenders assess income, debts, credit, down payment, property value and applicable qualification tests. Requirements vary by lender, insurer and product.

Typical documents include identification, employment and income records, tax information, proof of funds, assets and debts, and a purchase agreement. Obtain a tailored checklist from your lender.

Yes. Lenders evaluate the type and stability of income. Documentation and history requirements vary; there is no universal two-year rule for every self-employed borrower.

Limited income may reduce borrowing capacity. Reducing debts, revising the purchase budget or adding an eligible co-borrower may help, but creates real repayment obligations and does not guarantee approval.

Eligibility depends on immigration status, legal purchase eligibility, income and funds. Some programs accept alternative credit evidence. Mortgage qualification and legal permission to buy are separate issues.

A stress test assesses affordability at a higher rate. For federally regulated uninsured lending, the prescribed rate is the higher of contract rate plus 2% or 5.25%. Eligible straight switches at renewal have an exception.

Ask the lender about extending or replacing the rate hold. Once it expires, current rates and conditions may apply. Do not assume funding has been finalized.

You can compare lenders, but ask how each checks credit. FCAC suggests gathering mortgage quotes within two weeks to limit inquiry effects. A broker does not guarantee that only one check will occur.

Scores generally range from 300 to 900. Scoring models and approval thresholds vary. No single score guarantees approval or a particular rate; lenders also review debts and the report itself.

Payment history, debt use and existing accounts influence underwriting. A credit score is only one factor alongside income, assets and the property.

A low score may restrict options rather than automatically rule them out. Review credit improvement and total costs before considering expensive alternatives. Private lending requires a professional with the appropriate licence.

Check your report through Equifax and TransUnion and review their score services. Look for free options and their scope. Checking your own report does not reduce your score.

Pay on time, keep credit use low relative to limits, correct errors and avoid unnecessary applications. The pace and extent of improvement depend on your history.

Some programs consider international credit reports, rent or utility payment records as alternatives. Confirm accepted evidence and immigration and purchase eligibility with the lender.

GDS measures housing costs against gross income, including mortgage payments, taxes, heat and applicable condo costs. CMHC’s maximum is 39%; it is not a universal threshold for every product.

TDS adds other debt obligations to housing costs and compares the total with gross income. CMHC’s maximum is 44%; lender, insurer and product rules may differ.

High ratios may reduce borrowing capacity or prevent approval. Review debts, your budget and eligible income. Low ratios do not waive other lending requirements.

A lender may assess the co-signer’s income, debts and credit. A co-signer is not simply a reference: they take on repayment obligations under the agreement.

Ownership and liability depend on the actual documents and law. Do not assume a guarantor has less liability or no ownership interest. Ask a lawyer to explain the specific arrangements.

A fixed rate provides predictable interest costs during the term. It is not always higher than a variable rate, and breaking the contract may involve a substantial penalty. Compare prepayment terms as well as rates.

Interest costs may rise or fall with the lender’s reference rate. Some variable mortgages have changing payments; others keep payments fixed. With fixed payments, rising rates reduce principal repayment and may trigger a requirement for additional payments under the contract.

Compare income stability, your capacity to absorb higher rates, moving plans, penalties, and product terms. Future interest-rate movements cannot establish in advance which option will cost less.

A hybrid mortgage divides the loan into portions with different rates or terms. Different maturity dates and discharge conditions may make switching lenders more difficult, so review how the parts work together.

If you expect to repay soon, compare an open mortgage’s flexibility with its interest cost. Closed mortgages may charge a penalty beyond their prepayment privileges. Annual limits and how they are calculated vary by contract.

A HELOC is revolving credit secured by your home equity. You can borrow and repay within an approved limit, but rates are usually variable and your home secures the debt. Interest-only payments do not reduce principal; qualification and setup costs may apply.

A reverse mortgage generally allows homeowners aged 55 or older to borrow against home equity. Many products do not require regular principal and interest payments, but interest accumulates. Eligibility depends on age, property value and location, co-owners, and lender conditions.

Accumulating interest and fees reduce home equity, and events such as sale, moving, or death may make repayment due. Check early repayment costs and any equity-protection clauses in the contract. Obtain independent legal advice and compare other funding options.

It finances a home purchase together with approved improvements. The lender may assess estimates, the completed property’s value, and completion deadlines. Improvement funds may be held back until work is verified, rather than being fully available at closing.

A shorter term brings more frequent renegotiation and renewal-rate risk. A longer term keeps conditions in place longer, but flexibility and the cost of an early change matter. The term is separate from the amortization period needed to repay the loan.

A convertible mortgage allows a change to another term or product under specified conditions. Timing, the new rate, and the new term depend on the lender. It does not mean you can freely change products at any time without cost.

B lender is an industry term for an alternative lender that may consider borrowers outside standard bank underwriting. It is not a government rating. Income, credit, and equity are still assessed, and approval is not guaranteed.

Compare interest, lender and brokerage fees, term length, prepayment costs, renewal conditions, and the longer-term repayment plan. Costs vary substantially by product. Ask for written disclosure of costs and risks.

Private mortgages may be considered when conventional qualification is unavailable or short-term funding is needed. Costs and repayment risks can be significant, and an exit plan matters. In Ontario, arranging private mortgages requires a Mortgage Agent Level 2 or Broker licence; verify the professional’s authority.

Depending on eligibility, options include the FHSA, the RRSP Home Buyers’ Plan, the home buyers’ tax credit, and Ontario or Toronto land transfer tax refunds. Each program defines eligibility separately. The federal shared-equity FTHBI is closed to new applications.

No. The FTHBI stopped accepting new applications on March 21, 2024. Existing participants should check their repayment obligations and servicing arrangements. It should not be treated as a currently available down-payment program.

Eligible buyers can withdraw up to $60,000 per person from an RRSP under the HBP. Repayment generally occurs over 15 years; a missed required repayment may be included in taxable income. Check CRA eligibility and the repayment start date applicable to your first withdrawal year.

Lenders may request tax returns and Notices of Assessment, business financial statements, and evidence of operations and income. Required business history and income assessment vary by lender and insurer; a single document list or two-year rule does not apply to every borrower.

Some programs allow permitted expense add-backs or income adjustments supported by documentation. These depend on underwriting rules. You must not inflate reported income or submit inaccurate documents.

Prepare immigration status, employment and income evidence, down-payment records, and credit information. Some programs consider international credit or alternative payment history. Mortgage eligibility and the legal right to purchase are separate; check the non-Canadian purchase restrictions.

Non-resident and non-Canadian are different concepts. The federal restriction on non-Canadian residential purchases has been extended until January 1, 2027, with defined property coverage and exemptions. Ontario and Toronto additional taxes may also apply. Have a lawyer confirm legal eligibility and taxes before arranging financing or signing.

Non-owner-occupied rentals generally require a larger down payment, often at least 20%. Conditions depend on unit count, occupancy, treatment of rental income, and lender policy. There is no single qualification rule for every investment property.

Products may be available, but intended use, year-round access, property condition, and rental use affect qualification. Minimum down-payment rules for a primary home cannot be assumed to apply to every second home or vacation property.

Agree in writing on ownership shares, contributions, ongoing costs, and what happens on sale, withdrawal, or death. Obtain independent legal advice. Joint borrowers may be responsible for the entire mortgage obligation, rather than only their ownership share.

Alongside borrower qualification, lenders may review condominium fees and building conditions. A lawyer reviews the status certificate for finances, reserves, arrears, and legal issues. Budget for regular fees and possible special assessments.

Some lenders consider pensions, investment income, or other verifiable income. The amount accepted depends on continuity, taxation, evidence, and product rules. Substantial assets alone do not guarantee mortgage approval.

An unarranged missed payment may lead to fees, credit reporting, and eventually enforcement against the property. Ontario remedies may include power of sale. Contact the lender before a payment is missed to discuss any available agreed arrangements.

Extra payments may be allowed without penalty within the contract’s privileges. Lump sums, payment increases, timing, and whether unused privileges carry forward vary. Do not assume a commonly quoted percentage applies to your mortgage.

Closed fixed-rate mortgages often use the greater of three months’ interest and an interest rate differential (IRD); variable mortgages often use three months’ interest. Contracts differ. Ask for a written calculation using the lender’s comparison rate and remaining term.

Possible approaches include using prepayment privileges, waiting until maturity, or checking portability. Each has conditions and costs. Obtain the lender’s penalty quote before acting; these approaches do not guarantee that a penalty disappears.

Begin comparing your budget and alternatives several months before maturity. Federally regulated financial institutions must provide the applicable renewal statement or notice of non-renewal at least 21 days beforehand. Review conditions before automatic renewal.

Compare your offer with other lenders’ rates, penalties, privileges, and fees. You can ask the existing lender for better terms, but a discount or approval elsewhere is not guaranteed. Include switching costs in the comparison.

Appraisal, legal, registration, and discharge costs and new underwriting may apply. For a qualifying straight switch of an uninsured mortgage between federally regulated institutions at renewal, without increasing the balance or amortization, OSFI’s prescribed minimum qualifying rate does not apply. The new lender still assesses repayment capacity.

Refinancing replaces the existing mortgage and may change its balance or terms. A HELOC provides revolving credit against home equity. Both require assessment of equity, repayment ability, and costs; breaking the existing mortgage may trigger a penalty.

Some lenders collect and remit property tax; other owners pay it directly. Check your statement and how tax-account shortfalls and adjustments are handled. Do not assume the quoted principal-and-interest payment includes property tax.

Consider permitted lump sums, higher payments, or a shorter amortization. Accelerated biweekly payments typically add repayment over a year; changing frequency alone is not equivalent. Check prepayment limits and keep sufficient cash for living costs.

Porting or assumption depends on the contract and lender approval. A new property or buyer may require underwriting, and an assumption may leave the original borrower liable. Obtain written confirmation of any release and seek legal advice.

Contact your lender first to explain the situation and ask about available arrangements. Licensed mortgage professionals, credit counsellors, or legal professionals can help explain relevant options. Seek help before missing a payment where possible.

A lender may consider deferral or other changes, but relief depends on your circumstances and its policies. Interest may continue to accrue and total costs may increase. Confirm credit-reporting treatment and post-relief payments in writing.

A credit counsellor may help with budgeting, reviewing debt, and repayment plans for some unsecured debts. Agencies are not universally government-approved; check qualifications and fees. Counselling does not automatically modify a secured mortgage or provide lender approval.

An advisor may help assess how a home purchase fits retirement, saving, and investment plans. Check qualifications, fees, and service scope. Financial planning does not replace mortgage underwriting or legal and tax advice.

Pause suspicious transfers or signatures and immediately contact your financial institution and real-estate lawyer. Preserve documents and communications, and report through police and official fraud-reporting channels. Independently verify licences and payment instructions.

Complain in writing to the brokerage’s complaints officer and retain its response and relevant records. You may submit an unresolved complaint or suspected regulatory breach to FSRA. Regulatory oversight does not replace a court’s determination of personal damages.

Use the bank’s formal complaint process. You can escalate to OBSI if 56 days have passed since the bank received the complaint or you are dissatisfied with its final response. FCAC supervises compliance but does not resolve individual disputes or award compensation. Other institution types may have different processes.

Coverage depends on the jurisdiction, financial eligibility, and type of legal issue. Mortgage disputes are not automatically covered. Ask Legal Aid Ontario or a community legal clinic whether assistance is available for your specific matter.

Do not assume a universal government program will pay your mortgage. Ask the lender about its hardship process and whether insurer-related assistance is available for an insured mortgage. Eligibility, terms, and costs must be confirmed individually.

These processes can materially affect credit, home equity, and future borrowing. A secured mortgage is not automatically erased by the process. Whether you can retain the home and what payments are required depend on the circumstances; consult a Licensed Insolvency Trustee and a lawyer.

For an eligible residential purchase, the minimum is 5% up to $500,000. Above $500,000 and below $1,500,000, it is 5% of the first $500,000 plus 10% of the remainder. At $1,500,000 or more, at least 20% is required. A $700,000 purchase therefore has a $45,000 minimum. Occupancy and underwriting may require more.

Use bank statements, asset-sale records, gift documentation, and transfer records to explain the source and movement of funds. Required periods and evidence vary; large deposits may need explanation. Do not describe borrowed or gifted money as personal savings.

A smaller loan reduces payments and interest at the same rate and amortization. On a typical residential mortgage, a down payment of at least 20% generally avoids borrower-paid default insurance. Retain funds for closing costs and emergencies.

Default insurance protects the lender if the borrower does not repay; it is distinct from life or home insurance. It is generally required for eligible mortgages with less than 20% down, and providers include insurers other than CMHC. Insured purchases must be below $1,500,000 and meet further eligibility rules.

Premiums depend on loan-to-value, amortization, and the down-payment source. For example, CMHC’s base premium at 95% loan-to-value with a traditional down payment and up to 25-year amortization is 4% of the loan. Other conditions may add costs. Obtain an actual quote; applicable provincial premium tax may require separate cash.

A non-repayable gift from an accepted family member may be eligible. Confirm permitted relationships, the lender’s gift-letter requirements, and evidence of transfer. Money subject to repayment must not be presented as an unconditional gift.

Use the lender’s form to record the donor and recipient, relationship, amount, date, signatures, and confirmation that no repayment is required. Transfer and source evidence may also be needed. The letter must accurately reflect the arrangement.

It is not universally prohibited. Some eligible insured programs accept non-traditional sources such as a personal loan or line of credit, subject to credit, property, and loan-to-value conditions. The additional payments affect debt qualification. Do not assume a credit-card cash advance is accepted; disclose all debts and sources.

An eligible FHSA has $8,000 of participation room in the first year and a $40,000 lifetime limit, with tax-free qualifying withdrawals. It may be combined with the HBP if each program’s requirements are met. Check local assistance separately; the closed FTHBI is not a current application option.

Prepare a traceable record from the overseas source through foreign exchange and transfer to the Canadian account. Translation or further verification may be required. Allow for exchange-rate changes and transfer time, and confirm evidence requirements with the lender and lawyer in advance.

Budget for legal fees and disbursements, land transfer taxes, registration, any appraisal and inspection, title insurance, adjustments, and home insurance. Check applicable default-insurance premium taxes too. Title insurance and registration fees are separate items.

CMHC’s general planning range is roughly 1.5% to 4% of the purchase price, not a cap. Location, transfer taxes, additional taxes, and transaction terms can push costs higher. Obtain an itemized legal estimate and reserve cash separately from the down payment.

Services may include title review and transfer, mortgage registration, handling funds, and transaction documents. Ask for a quote separating professional fees from taxes, registration, searches, and other disbursements. Costs vary with property and transaction complexity.

It is a tax on a transfer of property ownership. Ontario charges provincial tax, and Toronto also charges municipal tax. Check graduated brackets, property type, qualifying refunds, and any additional taxes affecting foreign purchasers separately.

For a typical one- or two-family Toronto home purchased for $1,000,000, Ontario tax is $16,475 and Toronto tax is $16,475, totalling $32,950. This example excludes first-buyer refunds, additional foreign-purchaser taxes, administration fees, and other closing costs.

Qualifying buyers may receive up to $4,000 in Ontario and $4,475 in Toronto. Prior ownership, spousal history, age, citizenship or permanent residence, and occupancy conditions apply. Eligibility for another first-buyer program does not automatically qualify you for these refunds.

An appraisal assesses the value supporting the loan. If it is below the purchase price, you may need more cash. The valuation method, fee, and who pays depend on the lender and transaction; confirm before applying.

Title insurance can cover certain title defects or fraud risks under its policy. Exclusions apply, and it does not cover every issue or the physical condition of the home. Ask your lawyer about owner and lender coverage, requirements, and costs.

Adjustments allocate agreed prepaid or outstanding costs, such as property tax and condominium fees, between buyer and seller as of closing. The actual items and amounts depend on the agreement and statement of adjustments; review them with your lawyer.

Most closing costs require cash separate from the down payment. Eligible mortgage default-insurance premiums may be added to the loan, while applicable provincial premium taxes generally cannot. Cashback or other borrowing has separate conditions, costs, and qualification requirements; confirm arrangements before closing.