A fixed-rate mortgage has an interest rate that remains the same throughout the term, keeping your payments consistent. A variable-rate mortgage fluctuates based on the prime rate, meaning your payments can change.
A fixed-rate mortgage has an interest rate that remains the same throughout the term, keeping your payments consistent. A variable-rate mortgage fluctuates based on the prime rate, meaning your payments can change.
Pre-approval is when a lender evaluates your financial situation and gives you an estimate of how much you can borrow. It helps you understand your budget and strengthens your position when making offers on a home.
In Canada, closing costs generally range between 1.5% and 4% of the home’s purchase price. These include legal fees, land transfer taxes, home inspections, and other expenses.
Missing a mortgage payment can negatively affect your credit score. It’s important to contact your lender immediately—they may offer a solution such as a payment deferral or a new payment plan.
In Canada, the minimum down payment depends on the home’s price. Homes under $500,000 require at least a 5% down payment, while homes between $500,000 and $999,999 require 5% on the first $500,000 and 10% on the rest. For homes over $1 million, a 20% down payment is required.
Yes, through the Home Buyers’ Plan (HBP), you can withdraw up to $35,000 from your RRSP tax-free to put toward the purchase of your first home.
A mortgage approval can take anywhere from a few days to a couple of weeks, depending on your financial situation and how quickly you can provide the necessary documents.
Aside from your down payment, be prepared for additional costs like home inspections, land transfer taxes, moving expenses, and legal fees, which together make up the closing costs.
It’s best to start exploring renewal options about four to six months before your mortgage term ends. This gives you time to compare rates and terms from different lenders.
Yes! Renewal is a great time to negotiate for better rates or change your mortgage terms, such as your payment frequency or amortization period.
Yes, you can switch lenders at the time of renewal without penalties, as long as your mortgage is up for renewal. Be sure to compare rates and terms across lenders.
If you don’t renew your mortgage by the term’s end, your lender may automatically renew it at a higher interest rate. It’s important to review and negotiate your terms ahead of time.
Refinancing means replacing your existing mortgage with a new one, usually to get a lower interest rate, access home equity, or change your mortgage terms.
Yes, refinancing allows you to access up to 80% of your home’s appraised value, minus the remaining balance on your mortgage. This equity can be used for things like renovations, debt consolidation, or investments.
Yes, refinancing can include fees like legal costs, an appraisal fee, and, if applicable, a prepayment penalty for breaking your current mortgage early.
Refinancing can lower your monthly payments, allow you to consolidate debt, help you access your home equity, and even shorten your amortization period to pay off your home faster.
A home equity loan allows you to borrow money based on the equity in your home. You receive the loan as a lump sum and repay it with interest over a fixed term.
In Canada, you can generally borrow up to 80% of your home’s appraised value, minus what you still owe on your mortgage.
Yes, home equity loans can be used for various purposes, such as home renovations, paying for education, debt consolidation, or even buying a second property.
A home equity loan provides a lump sum with a fixed interest rate, while a Home Equity Line of Credit (HELOC) allows you to borrow funds as needed, with a variable interest rate. With a HELOC, you only pay interest on the amount you withdraw.
