Frequently Asked Questions

A good rule of thumb is to keep your total housing costs (mortgage payments, property taxes, and heating) at or below 39% of your gross income. Your total debt payments shouldn't exceed 44% of your gross income. I can help you calculate your exact affordability based on your specific financial situation.

A home inspection is a thorough examination of a property's condition, including structure, roof, plumbing, electrical, and more. While not required, I strongly recommend getting one. It can reveal potential issues that may cost thousands to repair and gives you negotiating power or the option to walk away from a problematic property.

In Canada, the minimum down payment depends on the purchase price: 5% for homes up to $500,000, 10% for the portion between $500,000 and $999,999, and 20% for homes $1 million or more. A larger down payment means lower mortgage insurance costs and potentially better rates.

Mortgage loan insurance (often called CMHC insurance) protects the lender if you default on your mortgage. It's required when your down payment is less than 20%. The premium ranges from 0.50% to 7.0% of the mortgage amount and can be added to your mortgage balance. Providers include CMHC, Sagen, and Canada Guaranty.

A conventional mortgage is one where you put down 20% or more of the purchase price. Because of the larger down payment, you don't need to pay for mortgage default insurance, which can save you thousands of dollars over the life of your mortgage.

A bankruptcy stays on your credit report for 6-7 years. You can typically qualify for a mortgage 2 years after discharge with A lenders (with strong credit rebuilding), or sooner with B lenders or private lenders. The key is demonstrating responsible credit use since the bankruptcy.

Child support payments you make are deducted from your income when calculating how much you can borrow. Conversely, if you receive child support, it can be added to your income (usually requiring proof of consistent payments over 12+ months). Court orders or separation agreements will be required as documentation.

Most people who have stable income, manageable debt, and reasonable credit can qualify for some type of mortgage. Even if you don't qualify with a traditional bank, there are B lenders and private options available. Let's review your situation together to find the best path forward.

Yes! Gift funds from immediate family members (parents, grandparents, siblings) are accepted by most lenders. You'll need a signed gift letter confirming the funds are a true gift and not a loan. Some lenders may also require proof of the giftor's ability to give the funds.

A mortgage pre-approval is a lender's conditional commitment to lend you a specific amount at a set interest rate. It's based on a review of your income, credit, and financial situation. Pre-approvals typically lock in your rate for 60-120 days and show sellers you're a serious, qualified buyer.

Most lenders allow you to renew your mortgage up to 120 days before your term ends without penalty. This is a great time to shop around for better rates. I recommend starting to explore your options 4-6 months before renewal so you have time to compare and negotiate.

A down payment is the portion of the home's purchase price that you pay upfront from your own funds. It reduces the amount you need to borrow. Sources can include savings, RRSP withdrawals (through the Home Buyers' Plan), gifts from family, or proceeds from selling another property.

Yes, for homes priced up to $500,000, you can purchase with just 5% down. You'll need to pay mortgage default insurance, but this allows you to enter the housing market sooner. For homes between $500,000 and $999,999, you need 5% on the first $500,000 and 10% on the remainder.

Several strategies can help: 1) Make biweekly payments instead of monthly, 2) Increase your regular payment amount, 3) Make lump-sum payments when possible, 4) Choose a shorter amortization period, 5) Refinance to a lower rate and maintain your current payment. Even small extra payments can save thousands in interest.