Your mortgage, made simple.
A good mortgage plan is the first step to buying with confidence. Here is how the process works in Canada today, and the free calculators to plan your budget.
Four steps to your mortgage.
Get pre-approved
A lender checks your income, debts and credit and tells you how much you can borrow. It also holds a rate for a period, usually 90 to 120 days.
Choose your mortgage
Pick a fixed or variable rate, a term (often 5 years) and an amortization (25 or 30 years). Compare rates and prepayment options.
Firm up after your offer
Once your offer is accepted, the lender appraises the home and confirms final approval before your financing condition is waived.
Sign with your lawyer
Your lawyer reviews the mortgage, registers it and collects the down payment and closing costs before you get your keys.
Know your options.
Fixed rate
Your rate and payment stay the same for the whole term. Best if you value certainty and a steady budget.
Variable rate
Your rate moves with the lender’s prime rate. Payments can go up or down, but variable rates are often lower at the start.
Down payment
At least 5% on the first $500,000 and 10% on the portion above. Less than 20% down needs mortgage default insurance (CMHC).
CMHC calculator →Stress test
Lenders check that you could still afford payments at a higher qualifying rate, so you are approved for an amount you can carry.
Mortgage calculators
Estimate your payment, see what you can afford, and work out CMHC insurance and land transfer tax.
This guide is general information, not financial advice. Rules and rates change, so confirm details with your lender or mortgage broker.
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