Ontario
Serving clients across Toronto and the Greater Toronto Area with personalized mortgage solutions.
Frequently Asked Questions About Mortgages in Ontario
Do I need a mortgage broker, or should I go directly to my bank? 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.
How much down payment do I need to buy a home in Ontario?
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.
What credit score do I need to qualify for a mortgage?
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.
Can I get a mortgage if I'm self-employed?
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.
Can I buy my first home with only 5% down?
Yes. Many first-time home buyers in Ontario purchase their home with as little as 5% down, provided they meet lender qualification requirements.
How much can I afford to borrow?
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.
Can I qualify if I have student loans?
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.
Can I qualify after a consumer proposal or bankruptcy?
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.
Is it better to choose a fixed or variable mortgage?
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.
Can I use gifted funds for my down payment?
Yes. Many lenders allow gifted down payments from immediate family members. A signed gift letter and proof of the transfer are typically required.
What are closing costs in Ontario?
Closing costs may include:
- Land Transfer Tax
- Legal fees
- Title insurance
- Home inspection
- Appraisal (if required)
- Adjustments for property taxes or utilities
It's generally recommended to budget between 1.5% and 4% of the purchase price for closing costs, depending on your situation.
Why should I use Jesse Hazen as my mortgage broker?
As a licensed Mortgage Broker serving Ontario, New Brunswick, and Nova Scotia, I work with multiple lenders to help you find a mortgage that fits your needs. Whether you're purchasing your first home, refinancing, renewing your mortgage, or investing in real estate, I'll guide you through every step of the process with honest advice, clear communication, and personalized solutions.
Toronto, North York, Scarborough, Etobicoke, Mississauga, Brampton, Vaughan, Markham, Richmond Hill, Oakville, Milton, Burlington, Pickering, Ajax, Whitby, Oshawa & More.