RESOURCES
Frequent Questions.
Answers to common questions about buying a home and choosing a mortgage.
How much can I afford to pay for a home?
Review your income, debts, down payment and ongoing expenses with a mortgage professional. Choose a payment that fits your budget as well as lender qualification requirements.
What is a home inspection and should I have one done?
An inspector examines the condition of the property and provides a report. Discuss an inspection with your real estate professional before committing to a purchase.
What is the minimum down payment needed for a home?
Generally, the minimum is 5% for homes priced at $500,000 or less; 5% of the first $500,000 plus 10% of the remainder for homes below $1.5 million; and 20% for homes priced at $1.5 million or more. Lenders may require more.
What is mortgage loan insurance?
Mortgage default insurance protects the lender if you cannot repay. It is typically required with less than 20% down and differs from mortgage life insurance. Premiums depend on the mortgage and insurer.
What is a conventional mortgage?
This generally means a mortgage with at least 20% down. Ask whether your lender requires default insurance.
How does bankruptcy affect qualification for a mortgage?
Eligibility depends on your circumstances and the lender. Contact us to review options.
How will child support affect mortgage qualification?
Tell your mortgage professional about support paid or received and ask what documentation the lender needs.
Can I get a mortgage to purchase and improve a home?
Ask us about purchase-plus-improvements options. Approval and renovation requirements depend on the lender and insurer.
Can I use gift funds as a down payment?
Ask the lender whether your gift is acceptable and which documents are needed.
What is a pre-approved mortgage?
A pre-approval estimates your borrowing amount and may include a rate hold. Final approval remains subject to lender conditions and the property.
Should I wait for my mortgage to mature?
Review options before renewal. Compare rates, switching costs and any penalty for ending your current term early.
What is a down payment?
It is the money you contribute toward the purchase price. Your mortgage finances the remaining amount, with applicable costs and premiums.
How can you acquire a home with as little as 5% down?
Eligible purchases of $500,000 or less can qualify with 5% down. Larger purchases require more, and lender and insurance requirements apply.
How can you pay off your mortgage sooner?
Consider extra payments or accelerated payments within your contract’s prepayment privileges. Check penalties before exceeding those limits.
How can you use your RRSP to help you buy your first home?
The Home Buyers’ Plan lets eligible buyers withdraw up to $60,000 from their RRSP. Eligibility, withdrawal and repayment rules apply; check the CRA guidance before withdrawing.
What are the costs associated with buying a home?
Budget for the down payment, legal work, inspection, appraisal, adjustments, insurance and moving. Ask your professionals for estimates specific to your purchase.
What should the length of my mortgage term be?
Choose based on your plans, flexibility needs and comfort with future rate changes. Compare penalties and renewal timing as well as rates.
What are the monthly costs of owning a home?
Allow for mortgage payments, property taxes, insurance, utilities, maintenance and any condo fees.
Should you go with a short or long-term mortgage?
A shorter term brings renewal sooner; a longer term extends your contract. Consider future plans and the cost of breaking the mortgage.
What is a fixed rate mortgage?
The interest rate stays the same during the agreed term.
What is a variable rate mortgage?
The interest rate can change. Depending on the product, payments may change or the amount applied to principal may change.
Reviewed October 2, 2026. General information; lender and program requirements vary. Learn more from FCAC down-payment guidance, mortgage basics and the CRA Home Buyers’ Plan.