Frequently Asked Questions About Mortgages in Ontario

A mortgage broker works on your behalf by comparing mortgage options from multiple lenders, including banks, credit unions, and monoline lenders. Instead of being limited to one lender's products, a broker can help you find a mortgage that fits your financial goals and explain the differences between each option.

The minimum down payment depends on the purchase price:

• Up to $500,000: 5%
• $500,000 to $1,500,000: 5% on the first $500,000, then 10% on the remaining amount
• Over $1,500,000: 20%

Additional down payment requirements may apply depending on the property type or lender guidelines.

Many lenders prefer a credit score of 680 or higher, but mortgage options are available for borrowers with lower scores. Your income, down payment, debt levels, and overall financial profile are also important factors.

Yes. Self-employed borrowers can qualify using several different income verification methods. Depending on your situation, lenders may use tax returns, business financial statements, bank statements, or stated income programs.

Yes. Many first-time home buyers in Ontario purchase their home with as little as 5% down, provided they meet lender qualification requirements.

Your borrowing amount depends on your income, existing debts, down payment, credit history, property taxes, heating costs, and current mortgage rates. A mortgage broker can review your situation and provide an accurate estimate before you begin house hunting.

Yes. Student loans do not automatically prevent you from qualifying for a mortgage. Lenders will include your monthly loan payments when calculating your debt service ratios.

Yes. Many lenders offer mortgage options after a consumer proposal or bankruptcy, although eligibility depends on factors such as credit re-establishment, savings, down payment, and the length of time since your discharge or proposal.

There is no one-size-fits-all answer. Fixed mortgages provide predictable payments and interest rates, while variable mortgages may offer lower rates but fluctuate with market conditions. The best option depends on your financial goals and comfort with changing rates.

Yes. Many lenders allow gifted down payments from immediate family members. A signed gift letter and proof of the transfer are typically required.

Closing costs may include:

• Land Transfer Tax
• Legal fees
• Title insurance
• Home inspection
• Appraisal (if required)
• Adjustments for property taxes or utilities
• Toronto Municipal Land Transfer Tax (on top of Ontario's, for homes in the City of Toronto)
• PST on mortgage default insurance (8% of the CMHC premium, paid in cash at closing)

First-time buyers may qualify for land transfer tax rebates from both Ontario and the City of Toronto.
 
It's generally recommended to budget between 1.5% and 4% of the purchase price for closing costs, depending on your situation.

I'm a Mortgage Agent Level 2 in Ontario with BRX Mortgage Inc., rated 5.0 from more than 111 Google reviews. I work with multiple lenders to find a mortgage that fits your needs, whether you're buying your first home, refinancing, renewing or investing, with honest advice and clear communication at every step.