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Frequently asked questions
Straight answers on Ontario mortgages. If something does not match how your file works, we sort it out on the call.
Buying your first home? See the First-Time Home Buyer FAQs below: down payment, mortgage insurance, FHSA, HBP, rebates and closing costs.
Working with Rozil6 questions
What does it cost to use a mortgage agent?
- Standard residential file: typically no separate broker fee to you.
- Who pays: the lender pays the brokerage when the deal funds.
- Any fee to you: disclosed in writing before you commit.
- Not sure? Ask which bucket your file sits in.
Will you pull my credit on the first call?
- No. Not on the first call.
- First call: a map of your goal, timing and rough numbers.
- Credit bureau: only when we're ready to price a real option with a lender.
- No surprises: I tell you before anything is pulled.
Do I need a realtor before I talk to you?
- No. You don't need one first.
- Budget first: many clients talk to me before they start viewing homes.
- Already have a realtor? I'm happy to work alongside them.
- Kept in the loop: I update them on financing timelines.
Should I send SIN or ID photos through the website form?
- No. Never through a public contact form.
- Keep out of forms: SIN, passport scans and bank login details.
- Use instead: the official apply link, or a secure channel I name after first contact.
Which areas do you serve?
- Based in: Mississauga.
- Serving: the GTA and wider Ontario, when the property and lender fit.
- Remote intake: normal.
- The catch: the property still has to work for the lender's geography rules.
Do you do commercial?
- Some files: case by case.
- Send: the property type, location and use of funds.
- Not a fit? I'll say so early, rather than waste your week.
Buying and pre-approval6 questions
What is the difference between a pre-qualification and a pre-approval?
- Pre-qualification: a quick estimate from what you tell me about income, debts and down payment.
- Nothing verified yet: treat it as a ballpark.
- Pre-approval: with your consent, your credit is reviewed and your documents are checked.
- Rate hold: many lenders hold a rate for a set period.
- Still not final: the lender must approve the specific property and confirm nothing has changed.
What can still change after I am pre-approved?
- Property review: the lender checks the home itself, often with an appraisal.
- Re-checks: income and down payment are confirmed again before closing.
- Deal-breakers: a new car loan, a job change, missed payments or large unexplained deposits.
- Golden rule: keep your finances steady until closing.
- Big change coming? Tell me first.
How much down payment for a GTA / Mississauga purchase?
- 5% on the first $500,000 of the purchase price (typical insured purchase, federal rules).
- 10% on the portion from $500,000 up to $1.5 million.
- 20% generally needed above $1.5 million, because it's not insurable at that level.
- Next step: bring the purchase price and we'll map the cash.
What does insured / CMHC mean, and is the cap still $1.5 million?
- Default insurance: protects the lender when you put less than 20% down.
- CMHC: one insurer; others exist too.
- The cap: the federal insurable purchase price cap is $1.5 million.
- Premiums: often added to the mortgage balance rather than paid upfront.
Can a first-time buyer use a 30-year amortization?
- Often yes: on many insured first-time-buyer and new-construction purchases.
- Expect: an insurance premium surcharge for the longer amortization.
- Not universal: not every product and not every buyer qualifies.
- Check first: we confirm eligibility before you bank on the payment.
FHSA vs HBP vs land-transfer-tax rebate: can I stack them?
- Often yes: with separate rules for each program.
- FHSA and HBP: federal tax tools.
- Land transfer tax rebate: Ontario's first-time buyer rebate is provincial.
- Bring the plan: so we don't double-count the same dollars as down payment.
Renewals, refinancing and penalties7 questions
Do I need to sign the bank renewal letter?
- No. That letter is one offer, often a starting rate.
- Your options: a negotiated renewal, a switch to another lender, or a refinance.
- We compare: after looking at penalties and legal costs.
- Don't auto-sign just because the form looks official.
When should I start looking at my renewal?
- Ideal timing: about four months before your maturity date.
- Rate hold: many lenders allow one on a switch within a set window before maturity.
- Start early: time to compare without pressure.
- Ignore the letter? Your lender may renew you on its own terms, or into a short or open term that may not suit you.
Can I switch lenders at renewal without a penalty?
- At maturity: generally no prepayment penalty to move lenders.
- Smaller costs: a discharge fee, an appraisal or legal fees.
- Switch perks: some lenders cover part or all of these on a straight switch.
- Full picture: we compare the full cost before you move.
Stay vs switch vs refinance: which gets stress-tested?
- Stay (simple renewal): usually not run through the full OSFI minimum qualifying rate.
- Straight switch: many uninsured switches between federally regulated lenders (same balance, same amortization) have been exempt since November 2024.
- But: the new lender still underwrites you.
- Refinance: adds cash or stretches amortization, so it's typically fully stress-tested.
- Confirm on your file.
What does it cost to break my mortgage early?
- Variable: usually three months of interest.
- Fixed: usually the greater of three months of interest or an interest rate differential (IRD).
- Watch the IRD: it can be large, depending on how your lender calculates it.
- Before you decide: get a written payout penalty estimate from your lender.
- Then: I build it into the comparison.
HELOC vs second mortgage vs full refinance?
- Full refinance: replaces your first mortgage, often to pull equity or change terms.
- HELOC: a revolving line, usually only if your setup and lender allow it.
- Second mortgage: sits behind a first you want to keep.
- When a second fits: breaking the first would cost a painful penalty.
What if my condo has a special assessment at renewal?
- Tell me first: before we pick stay, switch or refinance.
- Why: it can change how a lender views the building and your debt service.
- No surprises: mid-file surprises slow everything down.
Qualifying and the stress test2 questions
What is the mortgage stress test in 2026?
- Applies to: most federally regulated originations and refinances.
- You qualify at: the higher of your contract rate plus 2%, or the OSFI floor of 5.25%.
- Your payment: still calculated at the contract rate.
- Bottom line: a qualification screen, not the rate you pay day to day.
What are GDS and TDS ratios?
GDS (gross debt service)
- Measures: your housing costs against your gross income.
- Counts: mortgage payment, property tax and heat.
- Condo? Part of any condo fees counts too.
TDS (total debt service)
- Starts with: everything in GDS.
- Adds: your other debts.
- Like: car loans, credit cards and lines of credit.
- Limits: lenders and insurers set their own.
- Pro tip: paying down other debts before you apply can make a real difference.
Self-employed, credit and alternative lenders6 questions
The bank declined me. Is it finished?
- Not automatically. One bank uses one credit box and one policy.
- Through Clover: we can shop other A lenders, B lenders and private.
- When it works: equity and ability to pay are still there.
- Bring the decline reason: it shortens the hunt.
How do lenders look at self-employed income?
- A lenders: usually average your last two years of personal tax returns, after write-offs.
- The catch: income can look lower than what the business really supports.
- Other lenders and programs: may consider business bank statements or the history of the business.
- Stated income: a reasonable one can work when the rest of the file is strong.
- Expect: more paperwork, sometimes a larger down payment or a higher cost.
I’m self-employed. What paperwork do you actually want?
- Usually: personal T1s for the last two years.
- Plus: Notices of Assessment for those two years.
- Sometimes: business financials or bank statements.
- Tailored: the exact pile for the lender we're aiming at, not a generic dump.
What is a B lender?
- Who: often trust companies and other regulated lenders, also called alternative lenders.
- How: they work outside the big banks' strict guidelines.
- Can help with: self-employed income, bruised credit, a past consumer proposal or a higher debt load.
- Trade-off: rates and fees usually higher, terms often shorter.
- The plan: strengthen the file and move back to an A lender when you can.
When does a private mortgage make sense?
- Funded by: an individual or a mortgage investment corporation (MIC).
- Approval: based mainly on the equity in the property.
- Good for: a short-term need, like a tight closing, a bridge until a sale, or time to repair credit.
- Cost: higher rates and fees than bank or B lender options.
- Fees in writing: lender and brokerage fees disclosed before you sign.
- Exit plan first: such as a sale or a refinance.
Can I get a mortgage after a consumer proposal or bankruptcy?
- Often yes: with the right lender and enough equity or down payment.
- A lenders: usually want it completed and discharged, then a period of re-established credit.
- B and private lenders: can sometimes help sooner, at a higher cost.
- Bring: your discharge papers and an honest summary of what happened.
- Then: we map the path.
Closing costs and closing day3 questions
What closing costs should I budget for?
- Land transfer tax: Ontario's, plus Toronto's municipal tax if you buy in Toronto (first-time buyer refunds for eligible buyers).
- Legal: fees, disbursements and title insurance.
- Insurance sales tax: Ontario tax on any default insurance premium, paid at closing, can't be added to the mortgage.
- Inspection and appraisal: where they apply.
- Adjustments: property tax and utilities with the seller.
- Lenders want to see: closing cost funds on top of your down payment.
What does my lawyer do on a mortgage?
- Reviews title and arranges title insurance.
- Receives the lender's instructions.
- Meets with you to sign the mortgage documents.
- Collects your closing funds and registers the mortgage.
- Refinance or switch: also pays out your existing mortgage.
- Pro tip: choose a lawyer early so the lender's instructions aren't held up.
How fast can an urgent file close?
- Typical: many clean files take about two weeks from complete documents to fund.
- Fast track: when title, equity and paperwork already line up, some fund in a day or two.
- Not a promise: that's not a 24 to 48 hour guarantee.
- Reality: speed depends on the file, not a slogan.
First-Time Home Buyers30 questions
The 30 questions first-time buyers ask most, answered in plain English. Pulled together from what Canada's three mortgage insurers (CMHC, Sagen and Canada Guaranty) and the federal, Ontario and Toronto programs cover, then explained the way I explain it on a call.
Down payment5 questions
What is the minimum down payment in Canada?
- It depends on the price.
- 5% on the first $500,000.
- 10% on any part of the price above $500,000, as long as the home is under $1.5 million.
- $1.5 million or more: default insurance isn't available, so plan on 20% down.
Where can my down payment come from?
- Savings: your own.
- Sale proceeds: money from selling another property.
- Family gift: from close family, never has to be paid back.
- First-home tools: the FHSA or the RRSP Home Buyers' Plan.
- Paper trail: lenders ask where it came from, usually with about 90 days of statements.
Can my parents gift me the down payment?
- Yes: insurers accept a gift from close family.
- Must be: truly a gift, not a loan.
- Gift letter: your lender will ask for a signed one.
- Proof: the money has landed in your account before closing.
Can I borrow my down payment?
- Sometimes: CMHC, Sagen and Canada Guaranty each have a program that can accept borrowed funds.
- Examples: an unsecured loan or a line of credit.
- Fits: 1 to 2 unit homes, borrowers with strong credit.
- The catch: the new loan payment counts in your debt ratios.
- Not everywhere: not every lender offers these programs, so we check fit before you borrow anything.
Do I really need 20% down?
- No. You can still buy with less.
- Under 20%: your mortgage is high-ratio and must be insured against default.
- 20% or more: insurance usually not required.
- Exception: a lender can still ask for it in some cases.
Mortgage default insurance7 questions
What is mortgage default insurance?
- Protects: the lender, not you, if a borrower stops paying.
- Why it matters: it lets lenders offer mortgages with as little as 5% down.
- Cost: you pay a one-time premium.
Who are Canada's mortgage default insurers?
- CMHC: a federal Crown corporation.
- Sagen: private (formerly Genworth Canada).
- Canada Guaranty: private.
- Who picks: your lender chooses and arranges the insurer.
- Bonus: each one has its own specialty programs.
Who pays the insurance premium, and how?
- Policy: the lender buys it and passes the cost on to you.
- Most people: add the premium to the mortgage.
- Or: pay it upfront.
- Size: a percentage of the loan that shrinks as your down payment grows (check each insurer's current charts).
- Ontario sales tax: on the premium, paid in cash at closing, can't be added to the mortgage.
Is mortgage default insurance the same as mortgage life insurance or home insurance?
- No. Three different things.
- Default insurance: covers the lender.
- Home insurance: covers your house and belongings against fire, theft and damage.
- Mortgage life or disability: optional coverage that can pay the mortgage if something happens to you.
What is the maximum home price for an insured mortgage?
- Since December 15, 2024: the home must be valued under $1.5 million for high-ratio insurance.
- Old cap: $1 million.
- $1.5 million or more: you need at least 20% down.
If I move, can I take my mortgage insurance with me?
- Often yes: all three insurers allow portability.
- Benefit: it can reduce or remove the premium on your next insured mortgage.
- Condition: your lender's mortgage has to be portable.
- Before you sell: check your lender's port rules.
Is there a premium refund for energy-efficient homes?
- Yes: CMHC (Eco Plus), Sagen and Canada Guaranty each refund 25% of the premium.
- For: a newly built home.
- Qualifies if: it meets an approved energy certification, or uses at least 20% less energy than a typical new home on its EnerGuide rating.
- Timing: apply after closing, within 24 months.
Programs, refunds and rebates6 questions
What is the FHSA?
- For: first-time buyers (First Home Savings Account).
- Save: up to $8,000 a year, $40,000 lifetime max.
- Going in: contributions are tax-deductible.
- Coming out: qualifying withdrawals for a first home are tax-free.
- Unused room: carries forward, but only up to $8,000.
What is the RRSP Home Buyers' Plan (HBP)?
- Withdraw: up to $60,000 from your RRSP, tax-free.
- Use it to: buy or build a qualifying home.
- Repay: over 15 years.
- Breathing room: for a first withdrawal from 2022 to 2028, repayments start in the fifth year after, not the second.
Can I use the FHSA and the HBP together?
- Yes: both withdrawals can go toward the same home.
- The rule: meet each program's rules at the time of each withdrawal.
- Why it matters: stacked, they can be a big boost for a couple.
Do first-time buyers get land transfer tax relief in Ontario and Toronto?
- Ontario: refunds up to $4,000 of provincial land transfer tax.
- Toronto: rebates up to $4,475 of its municipal tax.
- Combined: eligible Toronto buyers can save up to $8,475.
- Status: Canadian citizen or PR (or become one within 18 months).
- Also: never owned a home anywhere, and move in within 9 months.
Is there GST/HST relief on a new home for first-time buyers?
- Applies to: new or substantially renovated homes.
- Federal rebate: can cover all the GST (up to $50,000) on homes up to $1 million.
- Up to $1.5 million: a smaller rebate.
- Dates: builder agreements signed from March 20, 2025 and before 2031.
- Ontario: a first-time buyer rebate of up to $80,000 of the provincial part of the HST.
Is the First-Time Home Buyer Incentive still available?
- No. CMHC's shared equity program is closed.
- Applications: stopped March 21, 2024.
- Approvals: none after March 31, 2024.
- Already have it? Repay when you sell or after 25 years, whichever comes first.
Closing costs1 question
How much should I budget for closing costs?
- Budget: about 1.5% to 4% of the purchase price, on top of your down payment.
- Covers: land transfer tax, legal fees and title insurance.
- Also: home inspection, property tax and utility adjustments.
- Plus: Ontario sales tax on any insurance premium.
- Proof: lenders usually want to see these funds before approval.
Qualifying and the buying process11 questions
What credit score do I need for an insured mortgage?
- Floor: insurers generally want at least one borrower at 600 or higher.
- Applies to: high-ratio insured mortgages.
- Not a target: lenders can ask for more.
- Higher score: widens your options.
What are GDS and TDS?
GDS (gross debt service)
- Measures: housing costs against gross income.
- Counts: mortgage payment, property tax and heat.
- Condo? Half of condo fees count.
- Usual insured limit: 39%.
TDS (total debt service)
- Starts with: everything in GDS.
- Adds: every other debt payment.
- Usual insured limit: 44%.
What is the mortgage stress test?
- Who: every insured borrower.
- How: you qualify at a rate set higher than the one you'll actually pay.
- Why: it proves you could still handle the payment if things got tighter.
- Your real payment: still based on your actual contract.
Can a first-time buyer get a 30-year amortization?
- Yes: since December 15, 2024.
- Who: insured buyers with less than 20% down.
- Condition: at least one borrower is a first-time buyer, or the home is a new build.
- Must: live in the home.
- Cost: a small premium surcharge for amortizations over 25 years (check current charts).
Who counts as a first-time home buyer?
- It depends on the program.
- Insured mortgages, FHSA, HBP, GST rebate: generally the same test.
- The test: you haven't lived in a home you or your spouse owned this year or the previous 4 calendar years.
- Ontario LTT refund: stricter, you can never have owned a home anywhere in the world.
I'm self-employed. Can I still get an insured mortgage?
- Yes. The usual route uses 2 years of tax returns and Notices of Assessment.
- Low income on paper from write-offs? Sagen (Business for Self) and Canada Guaranty (Low Doc Advantage) can look at a reasonable stated income.
- You'll need: strong credit and at least 2 years in business.
- Down payment: usually at least 10%.
I'm new to Canada. Can I buy with 5% down?
- Often yes: 5% down on 1 to 2 unit homes.
- Programs: Sagen (New to Canada) and Canada Guaranty (Maple Leaf Advantage).
- Who: permanent residents and many valid work permit holders.
- Thin Canadian credit? An international credit report or 12 months of on-time rent and bill payments can help.
- Heads-up: the federal ban on non-Canadians buying homes runs to January 1, 2027, so check current rules if you're not yet a PR.
Can I buy a duplex or a home with a rental unit as a first-time buyer?
- Yes: if you live in one of the units.
- 1 to 2 units: 5% down.
- 3 to 4 units: 10% down.
- Rental income: lenders may count part of it, depending on the lender and the unit.
Can I buy a fixer-upper and finance the renovations?
- Yes: with a purchase plus improvements mortgage.
- How: the cost of agreed upgrades is added to the mortgage.
- Holdback: the lender holds that money and releases it once the work is done and checked.
- Insured by: Sagen and Canada Guaranty (Purchase Advantage Plus).
Buying a new build: what is a progress draw mortgage?
- For: building, or buying a home under construction.
- How: the lender releases the mortgage in stages as work hits set milestones.
- Interest: you pay only on what's been advanced.
- Insurers: both private insurers offer progress advance programs.
What do I need to get pre-approved?
- Bring: your ID.
- Income: proof of your job and income.
- Money: details of your bank accounts, savings and debts.
- Down payment: where it's coming from.
- Closing costs: proof you can cover them.
- Not final: the lender still has to approve the property and confirm nothing has changed.
Ready to see what you qualify for?
Every first file is different: your down payment mix, which programs you can stack, and which lender and insurer fit. Start an application and I will map it out with you.
General information only · on approved credit (OAC). Program amounts and insurer rules change, so confirm current rules before you rely on a figure. Nothing in this section is an offer to lend, a commitment, or a guarantee of approval. Subject to qualification through Clover Mortgage lenders and the mortgage insurer.
Sources (checked October 2026): Finance Canada: Dec 2024 mortgage rules · CMHC: mortgage loan insurance · CMHC: requirements · Sagen: Homebuyer 95 · Canada Guaranty: mortgage insurance · CRA: FHSA · CRA: Home Buyers' Plan · CRA: first-time buyer GST/HST rebate · Ontario: LTT refund · Toronto: MLTT rebate · CMHC: FTHBI (closed)
About this website
Are the rates on this site live from a bank?
- No. They're not live from a bank.
- Source: typed from a brokerage rate sheet, updated when that sheet changes.
- Your rate depends on: credit, income, property and product.
- Use it as: a starting point, not a quote.