Mortgage Resources
Guides, answers, and plain-language explanations to help you make confident mortgage decisions.
Frequently Asked Questions
A bank can only offer you their own mortgage products. A mortgage broker like me works with dozens of lenders — banks, credit unions, and alternative lenders — to find you the best rate and terms available. And in most cases, my services cost you nothing.
In Canada, the minimum down payment is 5% for homes under $500,000. For homes between $500,000 and $999,999, it's 5% on the first $500,000 and 10% on the remainder. For homes $1 million and over, the minimum is 20%. A larger down payment can reduce your mortgage insurance costs and monthly payments.
If your down payment is less than 20%, you're required to purchase mortgage default insurance through CMHC, Sagen, or Canada Guaranty. This protects the lender if you default, but it also allows you to purchase a home with a smaller down payment. The premium is added to your mortgage balance.
A fixed rate stays the same for your entire term — your payments are predictable and you're protected from rate increases. A variable rate fluctuates with the prime rate — it can be lower initially, but your payments may change. The right choice depends on your risk tolerance and financial situation.
Amortization is the total length of time it takes to pay off your mortgage in full. In Canada, the maximum amortization for insured mortgages is 25 years (30 years for first-time buyers purchasing new builds as of 2024). A longer amortization means lower monthly payments but more interest paid over time.
Typically you'll need: proof of income (pay stubs, T4s, or NOAs for self-employed), proof of employment, bank statements, identification, and details about the property you're purchasing. I'll give you a personalized checklist based on your specific situation.
Yes — and I specialize in helping self-employed clients. Lenders look at your income differently when you're self-employed, but with the right documentation and the right lender, it's very achievable. I work with lenders who understand self-employment income.
The mortgage stress test requires lenders to qualify you at a rate higher than your actual mortgage rate — currently the greater of 5.25% or your contract rate plus 2%. This ensures you can still afford your mortgage if rates rise. I'll help you understand how the stress test affects your purchasing power.
First-Time Buyer Guide
Check Your Credit
Your credit score affects the rates you qualify for. Check your credit report for errors and take steps to improve your score if needed. A score of 680+ generally qualifies you for the best rates.
Save Your Down Payment
The minimum down payment in Canada is 5% for homes under $500,000. Don't forget to budget for closing costs (1.5–4% of the purchase price) on top of your down payment.
Get Pre-Approved
Before you start house hunting, get a mortgage pre-approval. It tells you exactly how much you can borrow, locks in a rate while you shop, and shows sellers you're serious.
Find Your Home
Work with a real estate agent to find a home within your budget. Your pre-approval gives you a clear ceiling, and your agent can help you navigate the NL market.
Make an Offer
When you find the right home, your agent will help you make an offer. Include a financing condition to protect yourself if your mortgage doesn't come through as expected.
Finalize Your Mortgage
Once your offer is accepted, I'll finalize your mortgage application, confirm your rate, and coordinate with your lawyer to ensure everything is ready for closing day.
Close and Move In
On closing day, your lawyer handles the paperwork and the keys are yours. Welcome home! I'm still here after closing if you have questions about your mortgage going forward.
Mortgage Glossary
Amortization
The total length of time to pay off your mortgage in full, typically 25 years in Canada.
Mortgage Term
The length of your current mortgage contract, typically 1–5 years. At the end of your term, you renew or pay off the balance.
Fixed Rate
An interest rate that stays the same for the entire mortgage term, providing payment stability.
Variable Rate
An interest rate that fluctuates with the lender's prime rate, which can mean lower rates but less payment predictability.
Pre-Approval
A lender's conditional commitment to lend you up to a specified amount at a specified rate, valid for a set period (usually 90–120 days).
Down Payment
The portion of the home's purchase price you pay upfront. The minimum in Canada is 5% for homes under $500,000.
CMHC Insurance
Mortgage default insurance required when your down payment is less than 20%. Protects the lender and allows smaller down payments.
Stress Test
A federal requirement to qualify borrowers at a rate higher than their actual rate, ensuring they can handle potential rate increases.
Equity
The portion of your home's value that you own outright — the difference between your home's market value and your outstanding mortgage balance.
Refinancing
Replacing your existing mortgage with a new one, often to access equity, lower your rate, or change your mortgage structure.
Renewal
When your mortgage term ends, you renew for a new term — either with your current lender or a new one.
Closing Costs
Expenses beyond the purchase price paid at closing, including legal fees, land transfer tax, home inspection, and title insurance. Typically 1.5–4% of the purchase price.
Have a Question Not Answered Here?
I'm always happy to answer mortgage questions — no obligation, no pressure. Just reach out.