Frequently Asked Questions

It depends on the purchase price:
• $500,000 or less: 5% of the price.
• $500,000 to $1,499,999: 5% on the first $500,000, plus 10% on the remainder.
• $1.5M and up: 20% of the price.
Below 20%, mortgage default insurance (CMHC, Sagen or Canada Guaranty) is mandatory. The premium is added to your mortgage, but here's the catch: in Quebec, the 9% tax on that premium must be paid in cash at the notary. It surprises a lot of buyers, so we plan for it from day one.

What costs should I budget for besides the down payment?
Set aside a cushion for closing costs, often in the range of 1.5% to 3% of the purchase price. These typically include:
• property transfer duties (the famous "welcome tax"), paid to the municipality;
• notary fees and registration costs;
• the pre-purchase inspection and, if required, an appraisal;
• the 9% tax on the mortgage insurance premium, if applicable;
• municipal and school tax adjustments, moving costs and those first trips to the hardware store.
Our advice: we put numbers on all of this before you even make an offer. Nobody enjoys finding $4,000 in surprise fees the day before signing.

Your borrowing capacity depends on your income, your debts, your credit and the property itself. Lenders mainly look at two ratios: the share of your income going to housing costs, and the share going to all your debts combined.
The stress test checks that you could still make your payments if rates went up. You qualify at the higher of two rates: your contract rate plus 2%, or 5.25%. Example: with a 4.50% rate, you're qualified at 6.50%. It doesn't change the rate you pay, only the maximum amount you can borrow.

A pre-approval is a lender's assessment of how much you can borrow, based on your income, credit and documents. It gives you a realistic budget, strengthens your offer and, depending on the lender, can hold a rate for up to 120 days in case rates rise.
Typical documents: ID, recent pay stubs and an employment letter (or notices of assessment if you're self-employed), and statements for your investments and down payment. Keep in mind that a pre-approval isn't final approval: the lender still has to approve the property itself.

Several, and they can be combined:
• FHSA (First Home Savings Account): up to $8,000 a year ($40,000 lifetime). Tax-deductible contributions, tax-free withdrawal, nothing to pay back.
• Home Buyers' Plan (HBP): withdraw up to $60,000 from your RRSP, repayable over 15 years. Buying as a couple doubles it.
• Quebec's refundable tax credit on the welcome tax: up to $5,875 for a home under $1M purchased since January 1, 2026.
• Home buyers' tax credits: $1,400 in Quebec and $1,500 federally.
• GST rebate: up to $50,000 on a newly built home under $1M.
• 30-year amortization on an insured mortgage, which lowers your monthly payments.
A "first-time buyer" is generally someone who hasn't lived in a home they owned during the past four calendar years. You may still qualify, even if you've owned before.

A fixed rate stays the same for the whole term: predictable payments, peace of mind. A variable rate follows the lender's prime rate, so it can go down or up. The difference also shows up on the way out: breaking a fixed mortgage usually costs much more than breaking a variable one (see question 9).
The right answer depends less on rate forecasts than on your situation: job stability, comfort with risk, plans to sell or refinance within five years. A small technical detail that makes a real difference: in Canada, fixed rates are compounded semi-annually, but not every variable mortgage is. Two identical posted rates don't always cost the same. We'll show you the real math.

Yes, and it's often the best time to do it, since there's no penalty at maturity. Since November 21, 2024, you no longer have to pass the stress test again for a straight switch to another lender, as long as the balance and amortization stay the same.
Your lender will send you a renewal offer: don't sign it on autopilot. The first offer is rarely the best one. Reach out four to six months before your maturity date: we'll compare the market and tell you honestly if staying put is the right call.

For a closed variable-rate mortgage, the penalty is usually three months' interest. For a fixed rate, it's the greater of three months' interest or the interest rate differential (IRD), which compares your rate to what the lender offers today for the remaining term. When rates have dropped, the IRD can climb into the thousands, and every lender calculates it its own way.
Before you sell, refinance or buy out an ex-partner's share, get your penalty calculated. We'll also look at ways to reduce it, such as porting the mortgage or using your prepayment privileges.

Yes. Most lenders ask for about two years of history and your notices of assessment, and some programs recognize that business expenses reduce your taxable income. There are also options for newer businesses, seasonal or commission income, newcomers to Canada and credit that needs rebuilding.
This is exactly where a broker makes the difference: each lender assesses this kind of income differently, and the right file, sent to the right lender, changes everything. Best move? Let's talk before you file your next tax return.