Mortgage FAQs

Welcome to the Mortgage FAQs page. Here you will find answers to common questions about mortgages, including the difference between pre-qualified and pre-approved, down payment requirements, fixed vs. variable rates, mortgage affordability, and options for self-employed individuals.

What is the difference between pre-qualified and pre-approved?

Think of pre-qualification as a casual first date - it's a general idea of what you might qualify for based on the basic information you share. No deep dive, no commitment.

Pre-approval on the other hand, is more serious. The lender actually checks your credit, income and documents. It's their way of saying, "We'll lend you this much if everything checks out". It holds more weight when you're ready to make an offer-especially in a competitive market. 

Is a fixed or variable rate mortgage better?

It depends on your vibe and your nerves. A fixed rate is steady and predictable. Great if you like set payments and sleeping soundly. A variable rate can start lower and potentially save you money if rates drop. If however, rates go up, so does your payment.

Not sure which is right for you? I'll run the numbers both ways and show you what makes the most sense based on your goals and tolerance level.

I'm self-employed, can I still get a mortgage?

Yes, self-employed individuals can qualify for a mortgage by providing proof of income through tax returns, financial statements and other documentation.

Do I need a Real Estate lawyer?

Yes, you will need a real estate lawyer to finalize your mortgage. Whether you are buying, refinancing or switching lenders, the lawyer handles the legal side of the transaction. That includes:

  1. Reviewing your mortgage instructions
  2. Registering the mortgage on title
  3. Transferring funds
  4. Coordinating with the lender and title insurance
  5. Handling property taxes, payouts and disbursements.

If you are buying a home in Ontario, your lawyer also manages the land transfer tax and ensures your name gets properly registered on title.

For purchases: Hire a lawyer as soon as you have an accepted offer and mortgage approval.

For refinances: Hire a lawyer once your mortgage is approved and ready to fund.

Pro Tip: Do not wait until the last minute to get a lawyer; good ones get booked fast. 

If you need a recommendation, I have a short list of experienced, fast moving real estate lawyers.

 

Can I use a Home Equity Line of Credit (HELOC) to consolidate my credit card debt?

Yes. Many homeowners use a HELOC to consolidate high-interest debt so they can get back on track financially without having to break their mortgage.

What documents do I need to apply for a mortgage?

Typical documents include:

  1. Photo ID
  2. Proof of income ( pay stub, job letter, Notice of assessment from CRA)
  3. Bank statements for down payment
  4. Current mortgage/loan info if refinancing
  5. Proof of fire insurance if refinancing
  6. Final property tax statement for previous year and current statement to verify property taxes are up to date.
  7. Current loan, credit card and debt statements with payment amounts and balances.
  8. Separation or divorce agreement if you're divorced/separated or paying/receiving support payments.
  9. Gift letter if using gifted funds from a family member

Let's make a checklist for your situation so we are not scrambling last minute.

What is the minimum down payment to buy a home in Ontario

If the purchase price is under $500,000, you need at least 5% down. Between $500K and $999K? It's 5% on the first $500K and 10% on the rest. Over 1 million? You need 20% down.

How much mortgage can I afford?

Your affordability is determined by factors such as income, expenses, credit score and debt levels. My mortgage calculator can help you estimate your maximum mortgage amount or download My Mortgage Toolbox App for calculators, Application or more detailed reports.

Can I get approved for a mortgage with bad credit?

Yes, you can but it depends on how "bad" we're talking.  There are lenders who specialize in bruised credit. We look at your full picture: income, equity, debts and credit history. Even if the banks say "no", I might still find a "yes".

What  is the difference between a Mortgage Agent and a bank mortgage specialist?

A licensed mortgage agent in Ontario can offer products from multiple lenders, not just one bank. That means you get access to to a wider range of mortgage options and competitive rates. A bank mortgage specialist only offers their employer's products.

Mortgage Agents are also Licensed and follow the strict guidelines of the Financial Services Regulatory Authority of Ontario. (FSRA) Before working with any Mortgage Professional, it's a good idea to verify they are properly licensed.

How long does a mortgage approval take in Ontario?

With a complete application, pre-approvals can take 24-48 hours. Full approvals usually take 3-10 business days, depending on the lender and how fast you get your documents in. Quick tip: the faster you respond, the faster we close.

Is CPP Disability Income Accepted for a Mortgage?

 

 

 

Can I Get a Mortgage on CPP Disability Income?

Many people receiving CPP Disability benefits wonder if home ownership is still possible. A common misconception is that disability income cannot be used to qualify for a mortgage. In reality, many lenders recognize CPP Disability income as a reliable source of income when reviewing a mortgage application.

Every mortgage application is unique, and approval depends on several factors, including your overall financial picture, credit history, debts, down payment, and the lender's guidelines.

Is CPP Disability Income Accepted for a Mortgage?

Yes, in many cases CPP Disability benefits can be considered as qualifying income.

Lenders generally look at the stability and reliability of your income. CPP Disability benefits are government-provided and can often be used when determining your ability to afford mortgage payments.

Other sources of income may also be considered, such as:

- Canada Pension Plan (CPP)

- Old Age Security (OAS)

- Workplace pensions

- Long-term disability benefits

- Other eligible retirement or benefit income

What Do Lenders Look At?

When reviewing a mortgage application, lenders typically consider:

Credit History

Your credit score and payment history help lenders understand how you have managed your financial obligations.

Debt Payments

Your existing debts, such as credit cards, loans, vehicle payments, and other obligations, are included when determining affordability.

Down Payment

A larger down payment can reduce the mortgage amount needed and may improve your overall application.

Property Type

The home you are purchasing can also affect financing options. Different properties, including rural homes, condos, and manufactured homes, may have different lender requirements.

Can I Buy a Home If My Only Income Is CPP Disability?

Possibly. Some borrowers qualify using only disability income, while others may need additional income sources or a co-borrower to strengthen their application.

The important thing is not to assume you cannot qualify before exploring your options.

What Documents Will I Need?  FAQs

Depending on your situation, a lender may request documents such as:

- CPP Disability benefit statements

- Notice of Assessment

- Tax documents

- Bank statements

- Proof of other income

- Identification

- Details about current debts and expenses

Why Work With a Mortgage Agent?

Every lender has different policies, and finding the right fit can make a big difference. A mortgage agent can review your situation, compare lender options, and help you understand what may be possible before you start house hunting.

If you receive CPP Disability income and have questions about buying a home, refinancing, or renewing your mortgage, I would be happy to help you explore your options.

 

Visit asklisa.ca to start your mortgage journey, use the mortgage tools available, or contact Lisa for personalized advice.

 

This information is intended for general educational purposes only. Mortgage qualification depends on individual circumstances, lender guidelines, and a complete application review.

"Lisa really went the extra mile to secure the best rate possible.  Our purchase was seamless with Lisa working behind the scenes. I would Highly recommend!! Thank you Lisa!"

Darlene L