Frequently Asked Questions (FAQ) for Canadian Mortgage

 A mortgage is a loan provided by a financial institution or mortgage lender to help you purchase a property. The property serves as collateral for the loan, which means that if you cannot make the mortgage payments, the lender can take possession of the property and sell it to recover their money.

To qualify for a mortgage in Canada, you will need to meet certain eligibility criteria, such as having a stable income, good credit history, and a sufficient down payment. Lenders will also assess your debt-to-income ratio to ensure that you can afford the monthly mortgage payments.

  In Canada, the minimum down payment required depends on the purchase price of the property. For properties costing up to $500,000, the minimum down payment is 5%. For properties priced between $500,000 and $999,999, it is 5% on the first $500,000 and 10% on the remaining amount. For properties priced at $1 million or more, the minimum down payment is 20%.

 A fixed-rate mortgage has an interest rate that remains constant for the entire term of the mortgage, providing predictable and stable monthly payments. A variable-rate mortgage has an interest rate that can change over the mortgage term, typically based on fluctuations in the lender's prime rate.

A mortgage pre-approval is a preliminary assessment by a lender that estimates the amount of money you can borrow, the interest rate, and the terms of the mortgage. This can help you determine your budget and increase your negotiating power when making an offer on a property.

The FTHBI is a Canadian government program designed to assist first-time homebuyers by providing an interest-free loan of up to 5% of the purchase price for a resale property or up to 10% for a new construction. This incentive helps reduce your mortgage payments, making homeownership more affordable.

The costs of buying a property in Canada include the down payment, mortgage insurance (if applicable), property taxes, legal fees, home inspection fees, title insurance, land transfer taxes, and moving expenses.

 A real estate agent is a licensed professional who can help you navigate the process of buying or selling a property. They can provide expert advice, negotiate on your behalf, and handle the paperwork involved in a real estate transaction.

To find a reputable real estate agent in Canada, we will connect you with top performers who knows and specialize in the area you are looking for.  This will ensure you are properly represented. 

A home inspection is an assessment of a property's overall condition, performed by a licensed home inspector. It can help identify potential problems or defects before you buy a property, giving you peace of mind and allowing you to make an informed decision. It is highly recommended to have a home inspection before finalizing a property purchase.