FAQ

A mortgage is a loan used to purchase a home or other property. The loan is secured by the property, and the borrower makes regular payments to the lender over a set period. The mortgage rate is the interest charged on that loan — in Canada it is fixed for a term, typically one to five years, while the loan itself is repaid over an amortization of up to 25 or 30 years.

The choice depends on your individual circumstances and preferences. A variable rate may offer savings during periods of low or falling interest rates, while a fixed rate provides stability and protection against rate increases. There is one practical difference worth knowing: if you break your mortgage early, a variable-rate penalty is usually three months’ interest, while a fixed-rate penalty can be an interest rate differential running into five figures.

To lock your rate you work with your lender or mortgage agent. Once you have identified a favourable rate, you request to “lock in”, which involves an agreement with the lender guaranteeing that rate for a set period, typically 30 to 60 days — and up to 120 days on many products.

A mortgage rate hold, also known as a rate lock or rate commitment, is a lender’s agreement to hold a specific rate for a predetermined period, typically 30 to 120 days. During this period you are protected from rate increases, allowing you to secure the agreed rate even if the market moves. It gives you peace of mind and lets you plan your finances around a known number. If rates fall during the hold, a good agent goes back and re-secures the lower one.

Rates can change frequently and are influenced by economic conditions, government policy, inflation and market trends. While they can move daily, it is more common for them to shift over the course of a week or a month. Staying informed and working with a mortgage professional helps you time your application or lock a rate sensibly.

A pre-qualification is an estimate based on numbers you tell me — useful for planning, but not binding. A pre-approval involves a credit check and document review, and comes with a held rate. When you are competing for a property, only the second one carries weight.

Five per cent on the first $500,000 of the purchase price, ten per cent on the portion between $500,000 and $1,500,000, and twenty per cent on homes at or above $1,500,000. Below twenty per cent, default insurance is mandatory. See the affordability page for the full table.

On a standard residential mortgage with an A lender, nothing — the lender pays the commission on funding. If a lender fee applies, which happens on some alternative and private deals, it is disclosed to you in writing before you sign anything.

Typically 1.5% to 4% of the purchase price. Land transfer tax is the largest item, followed by legal fees, title insurance, the home inspection, an appraisal where required, and PST on default insurance in Ontario. Use the land transfer tax calculator to pin down the biggest one.

Yes. It requires a different document set — usually two years of T1 Generals and Notices of Assessment, or business financials — and some lenders are far better at it than others. Where declared income does not tell the whole story, stated-income and alternative programs exist. Bring me your situation and I will tell you honestly which route fits.