FAQs

How do I qualify for a mortgage?

We start we a free discovery call to go over rough numbers. Then you fill out the application and upload necessary documents. Then we have another call to go over the detailed numbers on what you can qualify for and run through all options.

How much can I afford to borrow for a home?

Check out the affordability calculator to figure it out.

What is the minimum down payment required in Canada?

It depends on purchase price.

For a purchase price $500,000 and under, the minimum is 5%

For a purchase price of $500,001 to $1,500,000, the minimum is 5% on the first $500,000 and 10% on the remaining amount

For a purchase price $1,500,000 and above, the minimum is 20% with potential for a sliding scale amount

What is the mortgage stress test and how does it work?

It’s the process of qualifying a borrower off of a higher rate than what their actual rate is. It’s to make sure that if rates go up over the term, you can handle the payments at the renewal.

The equation is taking the higher of:

- the Bank of Canada qualifying rate (5.25%)

- your rate + 2%

Are there any special programs for first-time home buyers in Canada?

Yes, there are a handful of options. Check out the full list on this post, but here is a quick list

  1. Home Buyers Plan (HBP) 2. First Home Savings Account (FHSA) 3. First Time home Buyers Tax Credit (HBTC) - 4. GST/HST Housing Rebate 5. 30 Year Amortization Insured Mortgage 6. Land Transfer Tax Rebate

Can I use my RRSP for a down payment?

Yes, through the Home Buyers Plan as a first time home buyer, you are able to use up to $60,000 of your RRSp’s for down payment.

What is CMHC insurance? When is it required?

What is typically known as “CMHC fees” is in reference to an insurance premium that is added to the mortgage when you have a down payment less than 20%. CMHC is only one of the providers of the insurance. There is also Canada Guaranty and Sagen along with CMHC.

What is the difference between using a mortgage broker and a bank?

In the simplest way, it’s options. The bank can only offer you their particular products and options, where, as a broker has access to many banks and lender that offer a variety of products and options. A mortgage broker is a licensed professional and there is a chance that at the bank, it’s just a bank employee.