Mortgage Questions, Answered.

A broker shops multiple lenders for you, while a bank can only offer its own products. We compare dozens of options to find the best fit, and our services are typically free to you because the lender pays us. You also get local, personalized guidance across the Golden Horseshoe instead of a call centre.

The minimum down payment is 5% on the first $500,000 of the purchase price and 10% on the portion above that, up to $1.5 million. On a typical home around $700,000, that works out to $45,000. We can also walk you through programs that reduce what you need upfront.

Most lenders look for a score of 680 or higher for the best rates, but there are solid options for scores in the 600s and even below. We match you with the right lender for your credit profile rather than sending you to a single bank that may turn you down.

The stress test requires you to qualify at either your contract rate plus 2% or a set minimum qualifying rate, whichever is higher. It still applies to most mortgages, and we calculate it for you upfront so you know your true budget before you start shopping.

As a rule of thumb, your housing costs should stay under about 39% of your gross income and total debts under 44%, but the real answer depends on your debts, down payment, and the stress test. Use our First-Time Launchpad to get a precise estimate, or book a call for a full pre-approval.

A pre-approval can often be ready within 24 to 48 hours once we have your documents. It locks in a rate for up to 120 days and tells you exactly what you can offer, which matters in competitive markets across Hamilton, Halton, and Niagara.

Some lenders give their best rate or product only to clients who bank with them. That can show up as a condition on your approval, such as opening a chequing account or adding another product like a credit card. Already having an account with that bank doesn’t always satisfy it, because the condition may call for a specific package. These conditions have to be met before closing, so I flag them as soon as the approval lands and help you book the branch or virtual appointment right away. If the condition doesn’t work for you, tell me, and we can look at whether a different lender makes more sense.

Because it saves you from a steady drip of requests later. When I ask for everything upfront, the lender sees a complete file, approvals come back faster, and you’re not getting an email every few days asking for one more thing. The list depends on your situation. Salaried buyers usually need a job letter, recent pay stubs and down payment history, while business owners need personal tax returns and Notices of Assessment. Fill out the application as best you can and leave blanks if you’re unsure. I’ll follow up on anything missing in one go, not piece by piece.

A second mortgage is a separate loan secured against your home, registered behind your existing first mortgage. It lets you access equity without breaking your current mortgage, and is often used for renovations, debt consolidation, or bridging a short-term gap.

Private mortgages suit borrowers who need flexible, short-term financing that traditional lenders cannot offer, such as self-employed owners, those rebuilding credit, or buyers with an unusual property or timeline. We connect you with vetted private lenders and a clear exit plan.

Yes, private mortgages carry higher rates and fees because they are short-term and based on the property’s equity rather than your income. They are meant as a bridge, and we always build a plan to move you back to a lower-rate mortgage as soon as you qualify.

Most second mortgages let you borrow up to a combined 80% to 85% of your home’s value, including your first mortgage. We calculate your available equity and find the right lender for the amount and term you need.

First-time buyers in Ontario can access the Home Buyers’ Plan to withdraw up to $60,000 from an RRSP tax-free, the First Home Savings Account (FHSA), and a full rebate on land transfer tax up to $4,000. We map out which ones you qualify for so none of the savings get left on the table.

Yes. First-time buyers can claim a provincial land transfer tax rebate of up to $4,000, which covers the tax on a home up to roughly $368,000 and reduces it on anything higher. We factor this into your closing costs from the start.

Plan for roughly 1.5% to 4% of the purchase price in closing costs, covering land transfer tax, legal fees, title insurance, and an appraisal. On a $600,000 home that is often $9,000 to $20,000, and we give you a clear estimate before you make an offer.

There is no true zero-down mortgage in Canada, but you can use borrowed or gifted funds for your down payment. A gift from a family member is fully allowed with a signed gift letter, and we help structure it so it qualifies cleanly.

You should start reviewing your options about 120 days (four months) before your maturity date. This allows you to lock in a rate early, protecting you if rates rise, while leaving you free to drop to a lower rate if the market improves before you sign.

As of late 2024, uninsured borrowers doing a straight switch (renewing with a new lender but keeping the same balance and amortization) are no longer required to pass the stress test. Insured borrowers already had this exemption. This makes it much easier to shop around for a better rate.

Usually, no. If you are simply switching your existing balance and remaining amortization to a new lender, the new lender will typically cover the legal and appraisal costs to win your business. We handle the paperwork for you.

Yes, and I’ll often ask you for it. Your current lender sends a renewal offer in the months before your term ends, and the big banks can sometimes match or beat what’s available elsewhere for their own customers. If all you want is the best rate with no changes, bring me that offer first. I’ll tell you straight whether I can beat it, before you spend time pulling documents. If you want to take equity out, consolidate debt or change your setup, that’s where shopping around usually pays off. Either way, you’ll know your real options before you sign.

Sometimes, but it changes the type of deal. A straight switch moves your existing balance to a new lender with no new money, and you usually don’t have to requalify under the stress test. Once you add a line of credit or borrow more, most lenders treat it as a refinance. That means full qualifying, an appraisal, and a cap of 80% of your home’s value overall, with the revolving line itself usually limited to 65%. Not every lender offers a line of credit either, so I match you to one that does. Tell me early if you want access to equity so we plan for it from day one.

In Canada, you can refinance up to 80% of your home’s current appraised value. For example, if your home is worth $800,000, your maximum mortgage limit is $640,000. If you currently owe $400,000, you could access up to $240,000 in equity.

It depends on your mortgage type. Variable-rate mortgages typically charge a three-month interest penalty. Fixed-rate mortgages charge the greater of three months’ interest or the Interest Rate Differential (IRD), which can be significant. We calculate this exact cost for you to see if refinancing makes financial sense.

Yes. Consolidating high-interest consumer debt (like credit cards or car loans) into your mortgage is one of the most common reasons to refinance. It can drastically lower your monthly payments and interest costs, freeing up cash flow.

Traditional lenders usually look at Line 15000 (net income) on your T1 General tax returns and average it over the last two years. If your business is incorporated, they may also look at your T2 corporate returns and T4 and T5 slips.

This is common for business owners who write off expenses to lower their tax bill. We work with B lenders and alternative programs that use your bank statements (showing 6 to 12 months of deposits) to prove your real cash flow, rather than relying solely on your tax returns.

Yes. Some A lenders allow a gross-up or add-back of certain non-cash expenses, such as depreciation (Capital Cost Allowance) or business-use-of-home expenses, which increases your qualifying income. We know which lenders allow this.

Probably, yes. Even if your company issues you a T4, most lenders treat you as self-employed once you own a meaningful share of the business, often 25% or more. That isn’t a bad thing. It mostly changes the paperwork. Lenders usually want two years of personal tax returns and Notices of Assessment, and dividends are typically averaged over two years, so a brand new dividend may not count yet. Sometimes the simplest file uses your salary alone if it covers the mortgage. I’ll look at it both ways and go with whichever gets you approved with the least fuss.

You can, but I want to be careful with it. A pre-approval is only useful if it holds up when you find a home. For self-employed buyers I usually ask for bank statements and recent tax documents upfront, even for a pre-approval, so we’re not guessing. Some insured and alternative programs let you use stated income if you’ve been in business long enough and have a solid down payment. If we go that route, I’ll suggest a longer financing condition on your offer so there’s time to confirm everything with the lender before you firm up.

A spousal buyout mortgage lets one partner refinance the home to pay out the other’s share of the equity after a separation. In Ontario, you can borrow up to 95% of the home’s value under this program, higher than the usual 80% refinance limit, as long as the funds are used to settle the matrimonial property under a signed separation agreement.

Yes. Lenders require a signed, finalized separation agreement that clearly states the buyout amount and confirms both parties agree to the property transfer. We usually recommend looping us in before the agreement is finalized, because how the buyout is worded can affect how much you qualify for.

Often, yes. Whether you can keep the home comes down to whether your income supports the new mortgage on its own, and there are options like extending the amortization, adding a co-signer, or counting support payments as income. As a Certified Divorce Specialist serving Niagara, Halton, and Hamilton, this is the exact scenario Kelly works through with clients every week.

Yes, support payments can count as qualifying income if they are court-ordered or written into your separation agreement and you can show they will continue. Most lenders want to see three to twelve months of consistent payments on deposit, so timing your application matters.

A Certified Divorce Specialist (CDS) is a mortgage professional trained in the financial and tax mechanics of separation, not just the lending side. Kelly Foote holds this designation, which means she can coordinate with your lawyer, mediator, and financial planner so the mortgage piece supports your settlement instead of working against it.

Separation itself does not affect your credit, but joint debts and missed payments during the transition can. We help clients separate finances cleanly and structure the new mortgage so the divorce does not follow you into your next home.

You need a minimum of 20% down for a rental property that you do not plan to live in. If you are buying a multi-unit property (like a duplex) and plan to live in one of the units, you may qualify to put down as little as 5%.

Lenders typically use a 50% add-back or an offset method. This means they will add 50% of the projected rental income to your personal income to help you qualify. The exact treatment varies heavily by lender, which is why working with a broker matters for investors.

The IPRRE (income-producing residential real estate) guidelines affect borrowers who rely on rental income for more than 50% of their total qualifying income. Lenders may treat these files as higher risk, which can affect your rate or down payment requirements. We help you structure your portfolio to work within this.

It comes down to how the mortgage is classified. Many broker lenders price a rental as an uninsured mortgage, which usually carries a higher rate than your own home. A big bank renewing both your home and your rental can choose to give the rental the same pricing as your principal residence, because it wants to keep your whole relationship. That’s a real advantage for the bank, and I’ll say so. What I can often do is improve the rate or setup on your own home and leave the rental where it is, or lay the numbers out side by side so you can decide.

Bridge financing is a short-term loan that covers the gap if you take possession of your new home before your current home sale closes. It uses the equity in your current home to provide the down payment for the new one, and is paid off the day your old home sells.

Yes, most mortgages are portable, meaning you can transfer your current rate and balance to a new property. If the new home is more expensive, you can blend and extend: keeping your old rate on the original balance and taking current rates on the new money.

Not necessarily, but you must be able to carry both mortgages to qualify without a firm sale agreement. If you can’t carry both, you will need a firm, unconditional offer on your current home before a lender will approve the mortgage for the new one.

Yes, and it’s worth knowing before you firm up. Lenders have their own rules for homes on private or shared water systems, especially when many homes draw from one well. Some want water quality and quantity tests, some want a shared well agreement, and a few won’t lend on certain setups at all. These rules don’t always surface until late in the file, so I ask about water and septic early when you’re buying outside town services. If you’re looking at a rural property or a lifestyle community, send me the listing as soon as you have it, and I’ll check which lenders are comfortable with it.

The Prohibition on the Purchase of Residential Property by Non-Canadians Act restricts foreign buyers from purchasing residential property in most urban areas until January 1, 2027. However, there are exemptions for specific work permit holders, international students who meet strict criteria, and those buying with a Canadian spouse.

Newcomer programs are flexible. Lenders will accept alternative forms of credit, such as 12 months of on-time rent and utility payments, or an international credit report from your home country.

Permanent Residents can buy with as little as 5% down (up to $500,000). Work permit holders typically require a minimum of 10% down. Non-residents (where permitted to buy) generally need at least 35% down.

It depends on the property type. A Type A property (winterized, year-round access, permanent foundation) can be bought with as little as 5% down. A Type B property (seasonal, rustic, or water-access only) typically requires 10% to 35% down.

Second-home mortgage programs require the property to be for your personal or family use. If you plan to rent it out, it becomes an investment property, which requires a minimum 20% down payment and falls under different lending rules.

Yes, this is a very common strategy. You can refinance your primary home to pull out equity, or set up a Home Equity Line of Credit (HELOC), and use those funds to pay for the cottage in cash or cover the down payment.

A reverse mortgage is a loan product that allows Canadian homeowners aged 55 and older to borrow against the equity in their primary residence without having to make regular monthly payments.

No, the money you receive is considered a loan, not taxable income. Because it is not added to your taxable income, it will not trigger clawbacks on income-tested government benefits like Old Age Security (OAS) or the Guaranteed Income Supplement (GIS).

No, your family will never inherit debt from a reverse mortgage. Federally regulated lenders in Canada include a No Negative Equity Guarantee, meaning you or your estate will never owe more than the fair market value of the home at the time of sale, provided the home is maintained and property taxes are paid.

The reverse mortgage, including the principal and all accumulated interest, becomes due and payable when you sell the home, move out permanently (such as into long-term care), or pass away. Typically, the estate or family will sell the home and use the proceeds to pay off the loan, with any remaining equity going to the heirs. The family can also choose to keep the home by paying off the balance using other funds.

You retain ownership of your home and cannot be forced to move out simply because the loan balance grows. However, you must continue to pay property taxes, maintain home insurance, and keep the property in good repair. Failing to meet these conditions could cause you to default, which could lead to foreclosure.

A HELOC requires you to qualify based on your income and creditworthiness, and you must make regular monthly interest payments. A reverse mortgage requires no monthly payments and has no income requirements, but the interest accrues over time and is added to your loan balance.