Home Purchase Mortgages in Ontario
Buying a home in Ontario starts with the right mortgage — not just the lowest rate, but the right structure for your plans. I’m Kia Pakravan, a licensed Ontario mortgage agent (FSRA licence #13380), and I help homebuyers in Richmond Hill, Markham and across the Greater Toronto Area arrange purchase financing from first pre-approval to closing day. I compare banks, alternative lenders and private lenders so you get terms that fit your budget, not just what’s on offer at your branch. Call (416) 716-9696 for a free consultation.
Home purchase mortgages in Ontario are regulated by the Financial Services Regulatory Authority of Ontario. As a licensed broker, I help you compare home purchase mortgages from banks, credit unions, and alternative lenders. The right home purchase mortgages strategy can save you thousands over the life of your loan.
Get Pre-Approved Before You House Hunt
A pre-approval tells you exactly what you can afford before you fall in love with a house. It also locks in a rate — usually for 90 to 120 days depending on the lender — while you shop. To get pre-approved, you’ll typically need proof of income, employment verification, bank statements and ID. With complete documents, pre-approvals can often be issued within a day or two. A pre-approval also makes your offer stronger: sellers take pre-approved buyers more seriously.
How Much Down Payment Do You Need in Ontario?
Under federal rules updated in December 2024, the minimum down payment depends on the purchase price: 5% on the first $500,000; 10% on the portion between $500,000 and $1.5 million; 20% on homes priced above $1.5 million. Homes priced up to $1.5 million can now qualify for an insured mortgage. If your down payment is below 20%, you’ll need mortgage default insurance (through CMHC, Sagen or Canada Guaranty) — the premium is added to your mortgage amount. Common down payment sources include personal savings, a gift from a family member (with a signed gift letter), funds withdrawn from an RRSP under the Home Buyers’ Plan, or savings in a First Home Savings Account (FHSA).
Passing the Mortgage Stress Test
Federally regulated lenders must qualify you at the higher of your contract rate plus 2%, or 5.25% — this is the mortgage stress test. It doesn’t change your actual payments, but it does affect how much you can borrow. Don’t guess at the number: I’ll run your figures through the stress test before you make an offer, so there are no surprises at approval time. You can also estimate payments yourself with my free mortgage calculator.
Fixed vs. Variable: Which Rate Type Fits You?
Fixed rates give you payment certainty for the full term — popular with buyers who value a stable budget. Variable rates move with the lender’s prime rate, so payments can change, but they’ve historically cost less over long periods. Neither choice is right for everyone; it depends on your risk tolerance, how long you plan to stay, and your view on where rates are headed. I’ll walk you through the trade-offs with your actual numbers.
First-Time Buyer Programs Worth Knowing
Ontario first-time buyers have a few programs that can help: the Home Buyers’ Plan lets you withdraw from your RRSP toward a down payment, which you repay over time; the First Home Savings Account (FHSA) combines tax-deductible contributions with tax-free withdrawals for a first home; and Ontario offers a land transfer tax rebate for first-time homebuyers. Program limits and rules change, so check current CRA and Ontario figures — or ask me and I’ll confirm what applies to your purchase.
Closing Costs to Budget For
Beyond the down payment, budget for: Ontario land transfer tax (plus Toronto’s land transfer tax if you’re buying in the city), legal fees, title insurance, a home inspection, appraisal fees if required, and moving costs. First-time buyers should also keep a small reserve for the unexpected in the first months of ownership.
How I Help With Home Purchase Mortgages
As your broker, I do the lender shopping for you — banks, credit unions, alternative lenders and, when needed, private lenders. I handle the paperwork, explain every document before you sign, coordinate timelines with your realtor and lawyer, and stay reachable from pre-approval through funding. If a bank has declined you, ask me about private mortgage options that can bridge you to homeownership. Most standard purchase mortgages cost you nothing in broker fees — the lender pays my compensation. Start with a free consultation: call (416) 716-9696 or send a message through my contact page. You can also browse all my services.
How fast can I get pre-approved?
With complete income and employment documents, pre-approvals can often be issued within a day or two — sometimes the same business day.
Can I buy a home with less than 20% down?
Yes. You’ll need mortgage default insurance, and the minimum down payment follows the federal tiers: 5% to $500,000, 10% on the portion up to $1.5 million.
What if my bank already declined my application?
A bank decline isn’t the end of the road. Alternative lenders and private lenders use different qualification criteria — I work with all three channels and will tell you honestly which fits your situation.
Do you charge a fee for purchase mortgages?
On most standard mortgages, no — the lender compensates me. Any fee on a private or alternative deal is disclosed and agreed upfront, before you commit.
Ready to buy your Ontario home? Call (416) 716-9696 or contact me online for a free, no-pressure consultation.