resources

The minimum down payment in Ontario depends on the purchase price of the home. For homes less than $500,000, the minimum down payment is 5%. For homes priced between $500,000 and $999,999, it's 5% on the first $500,000 and 10% on the remaining amount. For homes $1 million and above, the minimum down payment is 20%.

Yes, it's possible to qualify for a mortgage with a low credit score, but options may be limited. Some lenders specialize in lending to individuals with lower credit scores, though typically at higher interest rates. Improving your credit score before applying can increase your options and potentially lower your rates.

Yes, first-time homebuyers in Ontario can benefit from programs like the Home Buyers' Plan (HBP), which allows you to withdraw up to $35,000 from your RRSPs tax-free to buy or build a qualifying home. There's also the First-Time Home Buyer Incentive, offering 5% or 10% of the home's purchase price to put towards a down payment, thus lowering mortgage carrying costs.

In Ontario, you can choose from fixed-rate mortgages, where the interest rate remains the same throughout the term; variable-rate mortgages, where the rate may fluctuate with the bank's prime rate; and adjustable-rate mortgages, where both the interest rate and monthly payments can chang

To get pre-approved, contact a mortgage broker or lender. You'll need to provide financial information, including your income, debts, employment details, and credit score. The lender will assess this information and provide a pre-approval, indicating how much you're eligible to borrow.

Closing costs include legal fees, land transfer taxes, and other expenses incurred when finalizing a mortgage and property purchase. In Ontario, budget approximately 1.5% to 4% of the purchase price for closing costs.

Yes, you can use gifted funds for your down payment as long as the gift comes from a family member and you provide a signed gift letter stating that the funds are a gift and not a loan.

Mortgage default insurance, required if your down payment is less than 20% of the purchase price, protects the lender in case you default on your loan. It's added to your mortgage amount and paid over the life of your mortgage.

Refinancing involves replacing your existing mortgage with a new one, typically to take advantage of lower interest rates, consolidate debt, or access home equity. You'll need to apply and qualify for the new mortgage, which may involve appraisal fees, legal fees, and potential penalties for breaking your existing mortgage early.

Missing a mortgage payment can lead to late fees and negatively impact your credit score. If you anticipate difficulty making payments, it's best to contact your lender immediately. Many lenders offer solutions, such as modified payment plans, to help you manage your mortgage obligations.