Mortgage Financing for Canadian Home Buyers

Mortgage rates in Canada change daily based on bond yields and the Bank of Canada's overnight rate. We shop over 50 lenders—including major banks, credit unions, and monoline lenders—to find you the most competitive daily rate based on your specific profile.

For a primary residence, the minimum is 5% for the first $500,000 of the purchase price and 10% for the portion above that, up to $1,000,000. For homes over $1,000,000, a minimum of 20% down is required.

The stress test requires lenders to qualify you at the higher of your contract rate plus 2% or 5.25%. For example, if your rate is 4.5%, you're stress-tested at 6.5%. This ensures you can still afford your mortgage if rates rise. We help you navigate the stress test and maximize your approved amount.

Fixed rates offer payment certainty — your payment won't change for the term. Variable rates are typically lower but fluctuate with prime. We analyze your goals, risk tolerance, and the rate environment to recommend the right choice for your situation.

The First-Time Home Buyer Incentive offers 5-10% of the purchase price as shared equity from the government. The Home Buyers' Plan allows up to $35,000 in RRSP withdrawals tax-free for a home purchase. Many provinces also offer land transfer tax rebates for first-time buyers — Ontario and BC have the most generous programs.

CMHC insurance (or insurance from Sagen or Canada Guaranty) is required when your down payment is less than 20%. It protects the lender if you default and allows you to buy a home with lower up-front capital. The premium (0.60–4.00% of the mortgage amount) is typically added to your mortgage balance.

Yes. Gifted down payments from immediate family members are accepted by most lenders. The donor must sign a gift letter confirming the funds are a gift and not a loan. Some lenders may require the gift to be in your account for 90 days before closing.

Most of our clients receive a pre-approval within 24–48 hours once we have their income, credit, and asset documentation. A full approval on a specific property typically takes 3–7 business days. We recommend getting pre-approved before you start shopping.

Yes. We specialize in self-employed mortgages for home buyers. If your tax returns don't reflect your true income, we have stated income and bank statement programs that look at your business's success rather than just the taxable income on your T1 General.

Yes. Alternative lenders and private lenders will consider applications with lower credit scores. Rates are higher (typically 6–12%), but we can often find solutions when traditional banks say no, and work with you toward A-lender qualification over time.

Canadian lenders use two ratios: GDS (Gross Debt Service) maximum 39% and TDS (Total Debt Service) maximum 44%. You also need to qualify at the stress test rate. We run the numbers upfront so you know your maximum before you start shopping — no surprises at offer time.

Absolutely. Debt consolidation is one of the most common refinance reasons. Rolling credit card debt (at 20%+) into your mortgage at a much lower rate can significantly improve your monthly cash flow and total interest paid over time.

In Canada, you can typically refinance up to 80% of your home's current appraised value. This cash-out can be used for renovations, investing, or any other purpose. We analyze whether the savings or opportunity justify any prepayment penalty from breaking your existing mortgage early.

A blend-and-extend lets you lock in a new rate by blending your current rate with the new market rate, without paying a full prepayment penalty. It makes sense when you want a lower rate mid-term but want to avoid a large penalty. We'll run the numbers to compare it against full refinancing.

5-year terms are the most popular in Canada and typically offer the most competitive rates. Shorter terms (1-3 years) can make sense if you expect rates to drop or plan to move. Longer terms (7-10 years) provide maximum payment stability. We'll help you choose based on your plans.

Rates change daily. A-lender rates for well-qualified borrowers typically range from 4-5%. Alternative lenders range from 5-12% depending on credit, documentation, and property type. Contact us for today's rates on your specific profile.