MORTGAGES — MADE SIMPLE

Obtaining a mortgage can feel intimidating, especially if you’ve never done it before. The good news? It doesn’t have to be complicated.

Here’s a simple overview of how the mortgage process works and what lenders typically look for.

HOW TO GET A MORTGAGE

The first step is understanding what you can comfortably afford. A mortgage professional will review your income, debts, credit history, and savings to determine how much you can borrow. This can usually be done over the phone, online, or in person.

Once your information is reviewed, you’ll receive a pre-approval or approval outlining your budget and mortgage options — giving you clarity before you start house hunting.

WHAT LENDERS LOOK FOR

Mortgage lenders typically consider:

• Your income and employment stability

• Credit history and credit score

• Existing debts and monthly obligations

• Savings for a down payment and closing costs

Having these pieces in place helps ensure your mortgage is sustainable, not stressful.

DOWN PAYMENTS & CMHC INSURANCE

In Canada, down payment requirements depend on the purchase price of the home:

• 5% minimum on homes up to $500,000

• 10% on the portion of the price between $500,000 and $999,999

• 20% minimum on homes $1,000,000 and over

If your down payment is less than 20%, CMHC mortgage insurance is required. This insurance protects the lender (not the buyer) and allows you to purchase with a smaller down payment. The premium is added to your mortgage and paid over time.

CHOOSING THE RIGHT MORTGAGE

There is no one-size-fits-all mortgage. Options include fixed-rate, variable-rate, and combination mortgages. The right choice depends on your financial comfort level, future plans, and tolerance for change.

A trusted mortgage professional can help you choose the option that best suits your situation.

FINAL STEPS

Once your offer is accepted, your mortgage is finalized and sent to your lawyer for closing. Your lawyer will review the documents, confirm the details, and ensure everything is in place for possession day.

If you’re unsure where to start, I’m always happy to connect you with trusted local mortgage professionals and help you understand how financing fits into your overall buying plan.