FAQ
Have questions about mortgages? You're not alone. This page covers the most common questions we hear from clients—from how pre-approvals work to understanding rates, terms, and what you'll need to get started. If you don't see your question here, reach out anytime. We're here to help.
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To estimate what you can afford, lenders look at your income and monthly debts. As a general guideline, your mortgage payment, property taxes, and heating costs should be around 32% of your gross income. When you add in other debts like car loans and credit cards, your total monthly obligations should be around 40% of your gross income.
That said, your personal budget matters most. If a lower payment feels more comfortable, it’s smart to stay within that so you’re not stretched financially.
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In most cases, you’ll need at least 5% down to buy a home. You’ll also need enough saved to cover closing costs like legal fees and appraisal.
Your down payment must come from your own savings or an eligible gift from family (not borrowed). If your down payment is under 20%, mortgage default insurance is required (CMHC or another insurer).
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A mortgage pre-approval gives you a clear idea of how much you can qualify for and often holds an interest rate for a set period (usually 60–90 days). It’s based on your income, credit, and debts, and may require a few final documents before everything is confirmed.
The biggest benefit is confidence. You’ll know your budget before you start shopping, and you may be able to lock in a rate while you look for the right home.
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If you pay child support or spousal support, lenders count it as a monthly expense, which can lower how much you qualify for.
If you receive support, it may be included as income, but you’ll usually need to show a consistent history of payments for a set period of time.
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In many cases, yes. Some lenders may still approve a mortgage after bankruptcy, depending on your credit rebuild, income stability, down payment, and how long it has been since discharge. The best step is to talk with us so we can review your situation and outline your options.
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Fixed rate mortgage
Your interest rate stays the same for the full term, which means predictable payments and easier budgeting.Variable rate mortgage
Your rate can change over time based on the lender’s prime rate. If rates go down, you may pay more toward the principal. If rates go up, more of your payment goes toward interest (and in some cases your payment amount can increase).
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A home inspection is a professional, visual review of the home’s condition, including major items like the roof, structure, plumbing, electrical, heating, and more. You’ll typically receive a written report within 24 hours.
Yes, it’s strongly recommended. It can uncover issues before you buy, help you understand potential repair costs, and give you peace of mind before making a big decision.
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Mortgage loan insurance (often called CMHC insurance) is required when your down payment is less than 20%. It protects the lender if the mortgage defaults, and the premium is added to your mortgage amount.
The cost depends on your down payment and the amount you’re borrowing. This is different from mortgage life insurance, which is optional coverage that can help pay off your mortgage if you pass away.
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A conventional mortgage is when you have a down payment of at least 20%, meaning you’re borrowing 80% or less of the home’s value. In most cases, this type of mortgage does not require mortgage loan insurance.
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A high-ratio mortgage is when you’re borrowing more than 80% of the home’s value, meaning your down payment is less than 20%. In this case, mortgage default insurance is required (CMHC or another insurer), and the premium is added to your mortgage amount.
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To keep your approval process fast and smooth, it helps to have these ready:
photo ID (driver’s licence or passport)
proof of employment and income
details of any other income sources
recent bank statements and financial assets
a list of current debts (loans, credit cards, lines of credit)
down payment amount and source of funds
proof of funds for closing costs (often around 1.5% to 3% of the purchase price)
Mortgage Advice Is Always Free.
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