1) Fixed rate means you are locked in for a term and know your monthly Mortgage payments, whereas variable rates depend on the BOC (Bank Of Canada) posted rate.

2) Variable rates have been historically lower than fixed rates

3) Prepayment penalties for changing your fixed Mortgage within your term are usually 6-10 times higher compared to variable rates.

Talk to your Mortgage Professional to learn what best suits you!

The qualifying rate is what’s usually used to qualify a borrower. It could be either the Bank Of Canada benchmark rate (currently at 5.25%) or the actual contract rate with your lender plus 2%, whichever is higher.

The contract rate is the rate you actually get from your lender and determines your actual Mortgage payments

In addition to your mortgage payments, you need to be prepared for:
1) Property taxes.
2) Home (fire) insurance .
3) Utility bills.
4) Condominium fees.
5) Routine repairs and maintenance.

Create a budget to ensure you have the financial means to afford your mortgage payment, property taxes, strata/condo fees, monthly utility bills and any other household expenses.

A pre qualification provides you with a ballpark estimate of how much you may be able to afford based on your own self-reporting of your financial situation, in addition to supporting documents.

This helps set a realistic price range for those eager to start shopping the real estate market .

Lenders look at 5 C’s.

1) Credit. (Your repayment history, age of accounts, credit utilization, credit inquiries, and mix of credit)
2) Capital (your down payment)
3) Capacity (your income to debt ratio)
4) Character (your income and type of employment. yes, they google you!)
5) Collateral (condition of the property, location, history, essentially the characteristics of the real-estate that will secure the Mortgage).

Closing costs are generally 1.5 % to 4% of the purchase price of your home.
It would be towards the lower end if your a first time home buyer, as you can get up to $4,000 rebate in land transfer tax. Or towards the higher end if you’re buying in the Toronto area.

I do not recommend it! A lender can pull their credit prior to (or the day of) closing if the original information on the Mortgage approval changes. Making big financial commitments like a car or financing furniture result in the file going sideways.
If you find yourself in a similar situation, speak to your Mortgage professional before making such a decision.

Yes, your income dictates the size of Mortgage, hence a Mortgage helper adds income to your application and increases your Mortgage qualifying amount as long as it’s a self contained unit with a separate entrance, kitchen and bathroom.

If you’re putting anything less than 20% down when purchasing a home, mortgage default insurance is mandatory in Canada and allows consumers to purchase homes with a minimum of 5%.