A Mortgage Pre-Approval Is Not the Strategy.

Pre-qualification is an estimate based on numbers you provide, typically through an online calculator. No documents are reviewed, no credit is pulled, and nothing is verified. Pre-approval means a lender has reviewed your actual income, credit, and financial history and issued a conditional commitment. Pre-qualification tells you roughly what you might afford. Pre-approval tells you what you can actually offer on. If you are serious about buying, start with a real pre-approval.

The minimum down payment in Canada is 5% for homes priced up to $500,000, with a sliding scale above that. However, minimum down payment and optimal down payment are two different conversations. Putting down less than 20% means you pay CMHC mortgage insurance, which adds cost over the life of your mortgage. Whether to put down more or preserve that cash for investing is one of the first things we work through together, because the right answer depends on your full financial picture.

It depends on your goals, not just your payment comfort level. A 30-year amortization gives you a lower monthly payment, freeing up cash. If that cash goes into an RRSP or TFSA where compound growth works in your favour over time, the long-term financial outcome can outweigh the extra interest on the longer amortization. Most people are told to pay off their mortgage as fast as possible. That is one strategy. It is not always the best one. We run the numbers for your specific situation before making a recommendation.

The FHSA is a registered account designed specifically for first-time home buyers in Canada. Contributions are tax-deductible like an RRSP, and qualifying withdrawals for a home purchase are tax-free like a TFSA. It is one of the most powerful financial tools available to first-time home buyers right now. The critical detail is that it needs to be opened before you need it. The contribution room accumulates from the day you open the account, not the day you start contributing. If you are even thinking about buying in the next few years, open one now.

Closing costs typically run between 1.5% and 3% of the purchase price, in addition to your down payment. The largest items are usually land transfer tax (Ontario has both a provincial and a municipal land transfer tax if you are buying in Toronto), legal fees, title insurance, and home inspection. First-time homebuyers may qualify for a land transfer tax rebate and the First-Time Home Buyers Tax Credit, which can offset some of these costs. I build a complete closing cost estimate for every client before they make an offer so there are no surprises after they sign.

Mortgage brokers are compensated directly by the lender when a mortgage closes, not by the borrower. There is no fee to have a conversation, get pre-approved, or compare options across multiple lenders. The exception is certain private or alternative lending situations, which I would always disclose upfront. You get access to over 60 lenders and independent advice at no cost to you.

The core documents are proof of income (T4s, recent pay stubs, or two years of Notice of Assessment if you are self-employed), 90 days of bank statements showing your down payment, a letter of employment, and government-issued ID. The 90-day history on your down payment is the one that catches people off guard most often. If your money has moved between accounts, even if it is all yours, I need statements from every account it touched. Knowing this early means we can plan around it rather than scramble at the last minute.

The stress test requires that you qualify at a rate higher than the one you are actually being offered. As of 2024, you must qualify at either the Bank of Canada benchmark rate or your contract rate plus two percent, whichever is higher. In practice, this reduces the amount you can borrow compared to qualifying at your actual rate. It is not a barrier, it is a calculation we account for from the start. Knowing your real buying power before you start shopping prevents the frustration of falling in love with a home that is outside your qualified range.