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 basics 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:
- Reviewing your mortgage instructions
- Registering the mortgage on title
- Transferring funds
- Coordinating with the lender and title insurance
- 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?
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. The mortgage calculator can help you estimate your maximum mortgage amount.
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 better rates, more options and someone who works for you, not the bank. A bank mortgage specialist only offers their employer's products.
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.
What documents do I need to apply for a mortgage?
Typical documents include:
- Photo ID
- Proof of income ( pay stub, job letter, Notice of assessment from CRA)
- Bank statements for down payment
- Current mortgage/loan info if refinancing
- Proof of fire insurance if refinancing
- Final property tax statement for previous year and current statement to verify property taxes are up to date.
- Current loan, credit card and debt statements with payment amounts and balances.
- Separation or divorce agreement if you're divorced/separated or paying/receiving support payments.
- 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.
Ready to secure your dream home?
Contact me today to learn more about my services and to start the mortgage process.