Mortgage FAQ | Ontario Home Financing Questions

A bank can only offer you its own products. A mortgage broker compares options from multiple lenders with a single application, so you see more rates and terms side by side. In most cases the lender pays the broker’s commission, so there’s no direct cost to you for the comparison and advice.

It depends on your income, existing debts, down payment, and current rates — plus you’ll need to pass the mortgage stress test. The fastest way to get a real number is a free pre-approval review, where we look at your full picture and tell you exactly what price range is comfortable.

A score of 680 or higher opens the door to the best rates and most lenders. Below that, your options narrow and rates rise — but a lower score doesn’t always mean no. Private mortgages, for example, weigh your home equity far more heavily than your credit score.

Yes. Many self-employed borrowers get approved using stated-income programs, business bank statements, or multi-year income averages instead of a traditional T4. The key is documenting your income the way lenders want to see it — which is exactly what a broker helps you prepare.

A pre-approval confirms how much a lender is willing to lend you and holds a rate for you, usually for around 90 to 120 days. It makes your offer stronger when house hunting and protects you if rates rise while you shop. It’s free and doesn’t obligate you to anything.

A fixed rate gives you payment certainty for the full term. A variable rate usually starts lower but moves with the market, so your payment or interest portion can change. Neither is universally better — it comes down to your risk tolerance, budget flexibility, and how long you plan to stay in the home.

Federally regulated lenders must check that you could still afford your payments at a qualifying rate higher than your actual contract rate. It reduces how much you can borrow on paper, but it doesn’t change your actual payment — and some alternative and private lenders use different qualification rules.

Budget beyond your down payment for land transfer tax (Ontario charges a provincial tax, and Toronto adds a municipal one), legal fees, title insurance, and adjustments. Closing costs are commonly estimated between 1.5% and 4% of the purchase price. First-time buyers may qualify for land transfer tax rebates.

Start reviewing your options about four months before your renewal date — you don’t have to accept your lender’s first offer. Refinancing mid-term can make sense to consolidate high-interest debt, access equity for renovations, or secure a better rate, though penalties may apply.

Yes. Past bankruptcies, consumer proposals, or missed payments make bank approval difficult, but private lenders focus on your property’s equity and a realistic exit strategy instead. It’s often used as a 1- to 2-year bridge while you rebuild. Learn more about private mortgages in Ontario.

A private mortgage is a home loan funded by a private lender or investor rather than a bank. Qualification is based mainly on your property’s equity rather than income or credit, and closings can happen in days. Rates and fees are higher than bank mortgages, so it’s typically a short-term solution. Read the full guide to private mortgages in Ontario.

A pre-approval can often be issued within 24 to 48 hours. A full purchase approval depends on the property, appraisal, and documents, but most files move in one to two weeks. Private mortgages are the fastest option and can close within days when timing is critical.